A PROJECT REPORT ON

Changing consumer prospective services On various mobile

Submitted to: -

(Punjab Technical University)

Jalandhar In Partial Fulfillment of Requirements For The Degree of Masters in Business Administration Session (2007-2009)

SUBMITTED TO: RIMT-IMCT MANDI GOBINDGARH

SUBMITTED BY: Sunil kumar. ROLL.NO. 7116223127

Acknowledgement

This project has been a great learning experience for me and I would like to express my gratitude towards all the people who guided me throughout, and without whose guidance and support, this project would not have been completed successfully. I would like to thanks to Mr. Harpreet singh gabba who allow to me to get training in imrb. I also thankful to Mr. jagdeep Singh from IMRB who help me a lot in completing my project report. My sincere gratitude to my faculty guide, Mr. vishal , and Mr. Pushpinder who has been a source of knowledge and inspiration. I would like to thank all the respondents who gave there precious time to fill my questionnaires.

Sunil Kumar

Preface

This project report is the result of my efforts for customer perception towards leading brands of various mobile services. It is an integral part of MBA course and it aims to provide practical experiences to the students besides theoretical knowledge. The practical implementation of theoretical concepts helps the students to analyze the real world and which in turn widely influence their conception and perception. A project work program helps us to get an overall view and exposure of the industry and various trends and opportunities in that industry. It enhances the confidence and boosts the morale of the students and broadens their area of knowledge. These programs are included in the curriculum of studies for the development of the personality of the students and help them come out of just the limited scope of books. I am happy that we have an opportunity to work on the project where I got to learn a lot about the mobile service sector, the consumer perception towards these. I have tried my best to present each and every aspect of the study as clear as possible and hope my efforts will not go in vain.

Chapter 1st Introduction

INTRODUCTION
India, the world's fastest growing major mobile market, added 1.51 million new wireless users in November, industry associations said on Tuesday. At 2 U.S. cents a minute, Indian call rates are about the cheapest anywhere in the world. These tariffs, and dropping handset rates, have helped the 46.47 million user wireless industry grow between 3 and 4 percent each month. Mobile telephony began in 1995 in India, and carriers such as Bharti Tele-Ventures Ltd., 28 percent owned by Singapore Telecommunications Ltd., are now furiously expanding across the country. Only last month, the number of mobile users exceeded fixed-line customers, but still less than five in a 100 people own a handset. The Cellular Operators Association, which represents nine carriers, said in a statement 1.143 million users opted for their services based on the Global System for Mobile (GSM) standard, taking their total subscriber base to 35.937 million customers. More than 367,000 users opted for mobile services that work on the Code Division Multiple Access technology, the rival association of CDMA carriers said, adding their user base stood at 9.484 million. This does not include the CDMA mobile customers of state-run Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. Both companies do not release new user additions, but analysts say their combined base exceeds a million customers. Overall monthly additions in November were higher than October, when 1.45 million users signed up. The customer base of Reliance Infocomm Ltd., India's largest provider of CDMA-based services, stood at 8.728 million, and the user base of India's largest GSM firm, Bharti, touched 9.416 million customers. New Delhi-based BSNL's GSM user base rose to 8.152

million, and the number of customers at the Indian mobile unit of Vodafone Telecommunications International Ltd. conglomerate rose to 6.858 million.

INDIA'S MOBILE SERVICE REVENUE TO HIT US$24BN BY 2009

Revenues of the Indian cellular services market will reach US$24bn by the end of 2009, recording a compounded annual growth rate (CAGR) of 35.6%, according to Gartner. The global technology research firm also stated that the Indian cellular services market recorded the highest growth across Asia Pacific and Japan in 2004 with a CAGR of 67%. Gartner predicts that the Asia Pacific and Japan cellular services market will reach US$225bn in 2009, representing a CAGR of 6.2% from 2004. The Indian cellular market will account for 11% of the overall Asia Pacific and Japan market by 2009, it adds. "The cellular industry is a mass market phenomenon that relies on economies of scale. Time to market advantage is critical and favours those who follow aggressive network expansion. In the forthcoming years, the capability and capacity to invest in penetrating semi-urban and rural markets will be important determinants for increasing market share and creating sustainable businesses in the Indian cellular marketplace," said Kobita Desai, Principal Telecom Analyst for Asia Pacific at Gartner. "Regulatory constraints have been eased in response to unrelenting market pressures and this has created ideal conditions for growth opportunity, investment and consolidation in the telecom sector."

A large proportion of the market opportunity in India will comprise low income users, resulting in low average revenue per unit (ARPU), feels Gartner. Overall penetration and market opportunity will increase, but with thinner margins, it adds. Non-voice value added services such as ring tones, call-back tones, games and music downloads will play a significant role as a service differentiator and as an important revenue stream that will help cushion the pressure on overall service revenues.

Mobile data accounted for 7% of service revenue in 2004 and it is expected to rise to 20% by 2009, according to Gartner. However, operators will have limited success in generating incremental revenue from mobile data services on account of limited wallet

share for spending beyond basic voice services and the high cost of data services, believes Gartner. These act as a barrier to entry for mass market adoption, it adds.

VARIOUS MOBILE SERVICES PROVIDORS AND THEIR FUNCTIONS

AIRTEL
AirTel is a brand of cell phone services in India operated by Bharti Televentures. The AirTel brand has been one of the highly successful Telecom brands in India. Bharti Televentures owns the AirTel brand and provides the following services under the brand name AirTel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line and Internet Connectivity), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 11 million total customers which constitute, 10 million mobile and 1 million fixed line customers, as of February 2007. AirTel has ambitious plans to provide 25 million connections by mid-2008. There is fierce competition among local telecommunications companies to provide better service and AirTel is regarded as one of the top communications service provider in the Asian region too.

As of June 2007, Airtel has 12 million subscribers. World leaders in the telecom industry such as Vodafone and SingTel hold partial stakes in Airtel. Tapping an Unexplored Market : The cellular and fixed-line penetration levels in India are lower than those in most developed countries in the world. Compounded annual growth of cellular subscribers in the FY97 - FY01 period was 80%. Despite that, the market is still under-penetrated and offers significant potential for growth. According to Gartner estimates, the cellular subscribers will grow to approximately 31 million in 2007 from the present 4.8 million. Another estimate by COAI sees the numbers at 50 million. This shows the potential of the telecom industry over the next four years.

Right Positioning of Bharti : Bharti Tele-Ventures, one of the main holding companies of unlisted Bharti Enterprises has emerged as one of the strongest players in the fast-changing and rapidly growing Indian telecommunications market. As of September 30, 2001, approximately 92% of India's total number of cellular subscribers resided in Bharti's existing and proposed cellular circles. The company is thus well placed to capitalize on the fast growing mobile phone market.

Money comes back faster : The telecom businesses are highly capital intensive and have long gestation periods. However, we believe Bharti to see faster pay backs than any other players in the industry.

Stock market Titan in the making : With 185 million shares on offer, Bharti is all set to make it to the top 10 Indian companies based on market cap straight on listing along with Infosys, Reliance, Wipro, HLL etc.

Attractive Pricing : The floor pricing of the bid is likely to done at a level which will be profitable for both short and long term investors

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VODAFONE
Vodafone is a national cellular operator in India. It covers most of India. Now orange has been renamed as Vodafone with a red background instead of the previous orange colour. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. It is often praised for its award winning advertisements which follow a non-cluttered approach. A recurrent theme is that its message "Hutch is now Vodafone" stands out visibly though it uses only black letters on white background. Vodafone recently bought BPL mobile. Vodafone subscriber base in India according to COAI - Cellular Operator Association of India as on December 2007.

Delhi - 693991 (Vodafone) Mumbai - 1778144 (Vodafone) Chennai - 350275 (Vodafone) Kolkata - 817351 (Vodafoneison Telecom) Karnataka - 914551 (Vodafone) Punjab - 526791 (Vodafone) Uttar Pradesh - west - 451347 (Vodafone) West Bengal & Andaman and Nicobar - 359153 (VodafoneTelecom)

Key Investment Highlights

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Unique spread of telecom operations in dynamic markets Consistent track record of creating value Management strength and depth Leading market positions Strong growth momentum

Strategy

Invest in emerging markets with; Low mobile penetration Sizeable population base Stable political and regulatory environment and Economic development

Build superior mobile operations Product innovation Branding Customer service

Leverage the group resources Maximize return

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SPICE
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 providers of mobile telephony in India, Spice is a 51:49 joint venture between Spicecorp (India)- the flagship company of MCorp Global group that first introduced India to mobile phone services and has interests in the field of telecommunications, office automation and information technology and DISTACOM (Hong Kong)-a company with over 20 years of experience in mobile communication which was responsible for bringing mobile telephony to Hong Kong along with Vodafoneison Telecom. OPERATIONS Launched over six years ago under the brand name of "Spice", the Company's cellular services have already built up a strong customer base of over 7,00,000 in two of India's most challenging and lucrative markets Punjab and Karnataka. During the course of time Spice has assumed the position of a market leader in both the circles of its operation. In both the circles Spice retains its leadership position and continues to grow at a fast pace. Recently, Spice Punjab added another feather in its cap by being declared the Number one operator for having the highest number of international roaming partnerships in over 169 countries. With its central hub in Mohali (near Chandigarh), Spice Network covers more than 154 towns and cities of Punjab with seamless coverage over 2250 km of roads and highways. Today, Spice has a distribution strength of over 5000 retail points in every corner of Punjab. Spice has further introduced innovative tariff packages tailor-made to extend its reach to more than 5,00,000 subscribers in Punjab, covering 93% of urban population, with support from a strong operational and billing network.

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In Karnataka Spice has undertaken a large cellular infrastructure project that involves a 1100 km Optic Fiber Cable backbone catering to the needs of customers all over the state. The companys roll out plan is on target as it has covered 90% of district headquarters within a span of four years of operation. At present the service is operational in 46 key towns / cities with a coverage of more than 900 villages. WORK FORCE AND INVESTMENT The company has a consolidated workforce of around 240 employees from diverse Educational and Cultural backgrounds. Out of these 60 % are professionally qualified. Spice has invested a sum of Rs. 1,616 crores on its operations in Punjab. SPICE VENTURE In Spice Telecom Punjab, we have set ourselves the goal of being market leaders in whatever we do. However achieving this is far difficult than saying it. To succeed, we need to focus on two main thrust areas Total Quality Management & Professionalism. By accepting and committing to these, we will achieve our mission.

Mission of Spice Telecom is

To have satisfied customers, employees & shareholders. Focus Areas The above said mission will be achieved through/ by Setting and implementing the budget and Business Plan. Benchmarking best practices to constantly monitor quality of service delivered to internal and external customers. Motivating employees to optimize productivity. Facilitating employees work through well-defined processes.

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Core Values. Team Work Trust Strive for Excellence Integrity Commitment and Ownership Recognition of Performance. Discipline Culture and Behaviour The Spice culture is an expression of our corporate ideology, guided by the Mission and Values of Spice Communications Ltd. i.e. to have satisfied customer, employees and shareholders. Every Spicean reflects the core values of teamwork, trust, strive for excellence, integrity, commitment and ownership, discipline, on which we have grounded ourselves. The openness, the positive approach and assertiveness of Spiceans, is reflected in the service extended to our external customers and the work culture in the Organization. We welcome new ideas and objective criticism to improve upon current methodologies and practices to benchmark them and bring them at par with the world standards. We remain very focused on the business goals and all this is achieved through open lines of communication and commitment by our people. Our strong beliefs have helped us to serve our Customers better than the best in the cellular Industry and that is what makes us the differentiators.

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BSNL BSNL is the corporate entity of two former Government departments: DTO (Department of telecom operations) DTS (Department of telecom services)

On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was christened Bharat Sanchar Nigam Limited(BSNL). Today, BSNL is the No. 1 Telecommunications Company and the largest Public Sector Undertaking of India with authorized share capital of $ 3977 million and networth of $ 14.32 billion. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. With latest digital switching technology like OCB,EWSD,AXE-10,FETEX,NEC etc. and widespread transmission network including SDH system upto 2.5 gbps, DWDM system upto 80 gbps,Web telephony,DIAS,VPN, Broadband and more than 400,000 data customers , BSNL continues to serve this great nation . Its responsibilities include improvement of the already impeccable quality of telecom services, expansion of telecom network, introduction of new telecom services in all villages and instilling confidence among its customers. BSNL has managed to shoulder these responsibilities remarkably and deftly. Today with over 45 million line capacity, 99.9% of its exchanges digital, nation wide Network management & surveillance system (NMSS) to control telecom traffic and over 4,00,000 route kms of OFC network, Bharat Sanchar Nigam Ltd is a name to reckon with in the world of connectivity. Along with its vast customer base, BSNL's financial and asset bases too are vast and strong. Consider the figures, as they speak volumes on BSNL's standing:

The telephone infrastructure alone is worth about Rs. 1,00,000 crore (US $ 22.74 16

billion) Turnover of Rs. 31,400 crore ( US $ 7.14 billion) Add to which, BSNL's nationwide coverage and reach, comprehensive range of telecom services and a penchant for excellence; and you have the ingredients for restructuring India for a bright future. Today, BSNL is most trusted Telecom Brand of India.

VISION AND MISSION

VISION To become the largest telecom Service Provider in South east Asia. MISSION i. To provide world class State-of-art technology telecom services on demand at affordable price. ii. To Provide world class telecom infrastructure to

develop country's economy.

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TELECOM SECTOR UPDATE (INDIA)

Telecom statistics October05 116.12mn 10.66 48.17mn 0.34mn 67.95mn 2.90mn 2.11mn 0.79mn November05 119.9mn 11.00 48.47mn 0.28mn 71.46mn 3.51mn 2.32mn 1.18mn December 05 123.85mn 11.43 48.93mn 0.46mn 75.92mn 4.46mn 3.19mn 1.17mn

Total subscribers Tele-density Fixed line Additions during the month Mobile Total additions during the month GSM additions CDMA additions Source: TRAI

Indias tele-density in December 2007 reached 11.43% with the subscriber base touching the 124mn mark. During December 2005, record 4.92mn subscribers were added as against 3.8mn subscribers in November 2005. This strong growth could be attributed to lifetime validity cards launched by almost all operators. More than 30mn subscribers have been added in the year 2007. In the fixed segment, a total of 0.46mn subscribers were added during December 2007, taking the subscriber base of fixed line services to 48.93mn. In the mobile segment, total additions during the month summed up to 4.46mn with highest ever GSM additions of 3.19mn and CDMA additions of 1.17mn. During the year 2007, 27.91mn subscribers have been added.

Maxis buys Aircel for $1.08bn

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Maxis Communications Berhad has agreed to pay around $800mn for a 74% stake in the C Sivasankaran-controlled Aircel Ltd. The promoters of the Apollo Hospital Group would hold the remaining stake. Aircel owns the Tamil Nadu and Chennai GSM circles and has a combined mobile telephone subscriber base of over 2.16mn. At an enterprise value of $1.07bn, the Malaysian company will be paying about $496 per subscriber for the deal. This was the fourth time Sivasankaran struck a deal to sell Aircel. His earlier moves were stalled because the department of telecommunications (DoT) refused to issue the necessary clearances. Apart from Maxis, Sivasankaran was also in talks with Telecom Malaysia for selling a stake in his company. In June last year, Sivasankaran had struck a deal with Vodafoneison Essar to sell the entire equity of the company for $362mn. With a subscriber base of 850,000 at that time, Vodafone was willing to pay around Rs 18,000 per subscriber. But the deal fell through because the DoT did not clear the acquisition. In February this year, Sivasankaran signed an agreement with AFK Sistema of Russia to sell a 49 per cent stake for $450mn. This deal expired in March. However, the company was offering $546 per subscriber, higher than the Maxis offer. In June 2005, a group of US investors lead by Pequot Ventures had offered to buy 30% in Aircel for $350mn. The talks fell though. Maxis Communications Berhad, which started commercial operations in 1995, is the leading telecommunications service provider in Malaysia. The fifth largest public company in Malaysia, it provides a wide range of mobile, fixed and international network services. It has also begun 3-G services in the country.

DoT proposes revenue sharing for ADC

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In a written communication to the PMO, the DoT has asked to delink the jurisdiction on access deficit charge (ADC) from Trai and hand it over to DoT. The PMO is expected to give a decision regarding the shifting of ADC to a revenue-sharing base, this month. DoT has finalized a 5-6% of AGR (adjusted gross revenue) of a telecom company as the proposed ADC, a levy paid by private players to compensate for BSNL's rural operations. Currently, the government charges 30 paise per inter-circle call as ADC. The proposed cut will effectively reduce ADC to just 4-5 paise per call, which will lower call costs, further. Last month, Trai had opposed DoTs draft on ADC saying that a higher revenue share will encourage grey market and may result in calls getting costlier. DoT in turn barred Trai from issuing any statement on ADC under Section 25 of the Trai Act. Trai and DoT have also pitched into a battle of supremacy on the spectrum issue. While Trai recommended a GoM on the issue, DoT opposed it saying that the regulator had gone beyond its brief. DoT is awaiting the PMO's decision before issuing any directive and has asked Trai not to issue any order on ADC unless asked by DoT to do so. The current jurisdiction of ADC lies with Trai, which had earlier ordered for the winding up of ADC mechanism by 2008 and before that wanted a gradual reduction in ADC to BSNL from the current Rs 5,000 crore. In case PMO asks DoT not to issue directive, then it will be Trai's prerogative to issue an order on ADC. DoT has also pleaded with the PMO to quickly decide on the issue as it is already gearing up for a OneIndia regime of two-slab tariff structure (one for local and one for inter-circle) and if ADC is not moved from per call basis at present to revenue-share then the lower tariffs would not be possible. The department is hopeful that it would receive positive response from the PMO before the end of this month so that this can be announced as a New Year package to customers along with the already announced fee cut in the STD/ISD licenses.

TRAI to investigate lifetime offers

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TRAI seems determined to stem the rising tide of euphoria over lifetime validity offers made by various cellular service providers. The regulator has announced that it will investigate the viability of the different lifetime validity options, which have been introduced of late. A TRAI official said that they would look into all aspects of these schemes, and might take action if required and that TRAI would submit its report on the matter soon. Recently there's been a spate of lifetime offers, with cellular operators seemingly in a mad rush to provide lifetime validity pre-paid cards, with a one-time entry fee. The trend-setter happened to be Sunil Mittal-owned Bharti Televentures which introduced a lifetime offer with one-time payment of Rs 999. Soon Vodafone, Reliance Infocom, Idea Cellular, Spice and even state-run behemoths - MTNL and BSNL, followed suit. Apparently, none wanted to be left out in the cold. Idea cellular even went a step further, by offering lifetime services in both the pre-paid and post-paid segments. The extended validity plan is the brainchild of Tata Teleservices, which had earlier offered a two-year validity on its pre-paid card. However, at the time the move was strongly opposed by the Cellular Operators' Association of India (COAI) saying it might amount to predatory pricing.

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MTNL plans GSM, CDMA upgrade in Mumbai by 2006 end MTNL plans to upgrade both its CDMA and the GSM networks in Mumbai. The upgrade, which is expected to be completed by the year-end, will help the public sector entity to offer an additional 1.5 lakh GSM connections and 2.5 lakh CDMA lines in the metro. The CDMA network would be upgraded to 1x standards, resulting in adding up 2.5 lakh connections to the existing 1.5 lakh lines supported by the network. The upgrade is in the final stages of completion with network testing operations being carried. On the GSM front, the network would be upgraded to support 3G services. This will add another 1.5 lakh connections, taking the total number of CDMA lines to 10 lakh in the metro by the year-end. The company is also planning to float a tender for 4-million GSM lines, of which 25 per cent will be reserved for 3G services. Of the 4 million, one million each was to be launched in both the Delhi and Mumbai by 2006, while it was planning to add 40 more base transceiver stations (BTS) in Delhi by March 2006. MTNL already has around 430 BTS in Delhi. The company was also planning to launch a Triband service, that can offer all the three broadband services (voice, data and video) by March 2006. Mobile telephony update Mobile telephony services are rapidly expanding and have contributed approximately 91% to new subscriber additions in December 2007. The segments subscriber base grew a record 6.24% mom to 75.92mn. Of the total subscribers added, almost 71% subscribers belonged to the GSM segment and the rest were CDMA segment. This strong growth is largely attributed to the lifetime validity cards launched by all major operators.

GSM mobile segment

India's GSM mobile operators added record 3.19mn subscribers in the month of December. The highest ever addition since inception of service was largely due to life time cards and falling handset prices.

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The total GSM subscriber base increased by 4.39% to 55.3mn The month of December saw the GSM subscriber base increase by 5.76% mom to 58.5mn. The growth was largely due to the life time validity cards launched by major players. The month saw the addition of 3.2mn subscribers as compared to 2.32mn in November 2005 and 1.42mn in December 2004. The growth was led by BSNL, which added over 1mn subscribers. Growth came from Kolkata, Kerala, West Bengal and Bihar circles. Bharti added over 0.9mn subscribers led by NE, Gujarat, MP and UP (E) regions. MTNL, the state run PSU added over 80,000 subscribers. For MTNL, Mumbai witnessed a growth of 6.3% and Delhi 5.2%. GSM subscribers Group Company Bharti BSNL Vodafone IDEA BPL Spice Aircel Reliance MTNL Total Source: COAI The Metro subscribers grew by 3.7% over the previous month. Although Delhi and Mumbai continue to dominate in absolute terms, the rate of growth recorded was highest for Chennai (4.3%) followed by Kolkata (3.7%) and Mumbai (3.3%) Category A circles witnessed a growth of 5.8%. Amongst the Category A circles, Gujarat recorded highest growth of 9.5% over the previous month, followed by Andhra Pradesh (5.9%) and 23 Subscribers November'05 15,416,002 13,289,085 10,682,514 6,210,172 2,868,143 1,553,571 2,228,576 1,623,851 1,443,346 55,315,260 as of Additions In Subscribers Dec 911,148 1,009,805 730,763 263,790 21,555 73,510 53,468 40,849 83,076 3,187,964 December'05 16,327,150 14,298,890 11,413,277 6,473,962 2,889,698 1,627,081 2,282,044 1,664,700 1,526,422 58,503,224 as of

(%)Growth 5.91 7.60 6.84 4.25 0.75 4.73 2.40 2.52 5.76 5.76

Karnataka (5.8%). Among all circles, Category C circles continued to witness the highest rate of growth at 10.1%, which is much higher as compared to Metros and A & B circles. Within Category C circles, the highest additions were recorded by the NE (13%) followed by Assam (11%) and Orissa (10.8%). Category C was followed by Category B circles, which recorded a healthy growth of over 6% over the previous month. Highest additions were recorded in West Bengal, Andaman & Nicobar (12%) followed by Kerala (10.1%) and Rajasthan (9.3%).

Circle wise subscriber addition Circle Metro A B C Total November Subscribers 13,470,736 19,340,247 18,134,560 4,369,717 55,315,260 December Subscribers 13,963,036 20,474,324 19,253,132 4,812,732 58,503,224 (%)Growth 3.65 5.86 6.17 10.14 5.76 % Share 23.9 35.0 32.9 8.2

Source: COAI

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CDMA mobile segment

CDMA subscribers base grew 8.1% mom to 16.78mn (figures excluding MTNL numbers which were not available) with Tata contributing a chunk of additions in subscriber base. Tata witnessed a whopping 14.7% mom growth in subscriber base, touching the 3.7mn mark. This phenomenal growth witnessed over the last two months is largely due to the 2-year non-stop incoming mobility from Tata. Reliance witnessed a 6.4% growth in the month of December. Reliance is gradually losing its market share to Tata but still remained a market leader with a total subscriber base of 13mn.

CDMA subscriber data

Group Company Reliance Tata Vodafone Shyam Total Subscribers November'05 12,229,420 3,207,682 61,782 27,965 15,526,849 as of Additions In Subscribers Dec 785,547 472,927 2,027 (475) 1,260,026 December'05 13,014,967 3,680,609 63,809 27,490 16,786,875 as of

(%)Growth 6.4 14.7 3.3 (1.7) 8.1

Source: AUTSPI, excluding MTNL numbers

Market share of CDMA operators

CDMA share of net additions

Source: AUTSPI

Fixed line

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During December 2005, 0.46mn subscribers were added in the fixed line segment and the total subscriber base stood at 48.93mn. During the year 2005, about 4mn subscribers were added, as compared to 2.67mn added during 2004. Growth in fixed line segment continues to be driven by the fixed wireless terminals.

Fixed Wireless Terminals (FWT)

FWT continues to be one of the fastest growing segments with a record 6.2% mom growth. Tata maintained it leadership position in FWT segment with 59.7% market share amongst private players. In net additions, Reliance led with 66% share. However, Dots latest ruling removing FWT service from the ambit of basic service and instead terming it a limited mobile service liable to ADC levy may be a serious blow to the growth of this segment.

Subscriber data of private players in FWT

Group Company Tata Reliance Bharti Vodafone Shyam Total Subscribers November'05 3,517,714 2,131,379 22,896 37,705 27,265 5,736,959 as of Additions In Subscribers Dec 118,337 232,288 (38) 3,889 147 354,623 December'05 3,636,051 2,363,667 22,858 41,594 27,412 6,091,582 as of

(%)Growth 3.4 10.9 (0.2) 10.3 0.5 6.2

Source: AUTSPI

Market share of private players in FWT

Share of net additions of private players

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Source: AUTSPI

Fixed wire line segment

The subscriber base of private operators in fixed wire line segment crossed the 2.1mn mark with the segment witnessing 3.7% mom growth. Bharti continued with its top position among private players with a 55.4% market share. Last month witnessed Bharti starting its operations in Mumbai. It has a subscriber base of 10,674 subscribers in Mumbai.

Subscriber data for private fixed wire line players

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Group Company Bharti Tata Vodafone Shyam Reliance Total

Subscribers November'05 1,122,801 402,930 195,413 139,416 188,486 2,049,046

as

of Additions In Subscribers Dec 53,854 3,986 2,360 593 15,554 76,347 December'05 1,176,655 406,916 197,773 140,009 204,040 2,125,393

as

of

(%)Growth 4.8 1.0 1.2 0.4 8.3 3.7

Source: AUTSPI Market share of private players in FWT Share of net additions of private players

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Chapter 2nd Company Profile

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PRESENTATION REGARDING THE LEARNING IN IMRB

DIFFERENT DEPRTMENTS IN IMRB

RESEARCH OFFICE FIELD OFFICE ANALYSIS FIELD

DIFFERENT RESEARCH OFFICES

CSMM( Customer satisfaction Measurement and Management) BIRD ( Business and Industrial Research Division) PQR ( Pro Qualitative Research) SRI ( Social in Rural Research)

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DIFFERENT TYPES OF PROJECT

HOUSEHOLD SHOPS STUDY CLT ( Central location test) CORPORATE STUDIES GDS ( Group discussion0 DIs ( Depth interviews) Panel

RULES & REGULATIONS OF IMRB

ADMINISTRATION RELATED COMMERCIAL RELATED FIELD RELATED PROJECT RELATED

ADMINISTRATION RELATED
ATTENDENCE REGISTER LATE EVENING AND HOLIDAY REGISTER MOVEMENT REGISTER

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Established in 1971 and with over three decades of market research experience, IMRB International is a pioneer in India in various research areas. Associated with a group of international market companies such as the British Market Research Bureau (BMRB) and Millward Brown International, IMRB International operates out of thirteen cities in India and has associate offices in Sri Lanka, Bangladesh and Nepal. The 500 member strong IMRB International promises high quality conceptualisation, strategic thinking, execution and interpretation skills on all its clients' research needs. In 1996, IMRB International managed 2,500 projects and 4,000,000 interviews. IMRB International is the only research company in India today that offers the entire range of research based services to its clients. IMRB International's specialised areas are consumer markets, industrial marketing, business to business marketing, social marketing and rural marketing.

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OUR LINEAGE
IMRB International is a division of Hindustan Thompson Associates (HTA) in India. IMRB is part of the Kantar Group, the information, insight and consultancy wing of the WPP Group. WPP is one of the world's largest communications services groups, employing 110,000 people in own and associate companies, working in over 2,000 offices in 106 countries. WPP comprises leading companies in:

Advertising Media Investment Management Information, Insight & Consultancy Public Relations and Public Affairs Branding & Identity Healthcare Communications Direct, Promotion & Relationship Marketing Specialist Communications

Within WPP, clients have access to companies of all the necessary marketing and communications skills. This offers clients a comprehensive and, when appropriate, integrated range of communications services.

Kantar Group
The Kantar group was established in 1993, a London based holding company responsible for WPP's worldwide information and consultancy interests. Kantar, is the world's largest survey organization and is ranked 3rd overall. It comprises three global research businesses - Research International, Millward Brown and Kantar Media Research and four regional ones - BMRB International, IMRB International, Goldfarb and Winona. Each is a leader in it's own area of expertise or specialization. The research studies in over 130 countries. The Kantar group specialises in :

Qualitative and quantitative research Tracking studies International research Predictive modelling Media measurement Data capture and handling Strategic research Customer

handling

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J.Walter Thompson Company

The world's first global brand communication company that provides its clients with both short term sales success and long term brand value. J.Walter Thompson was founded in 1864, with 246 offices globally and more than 9200 employees. JWT's proprietary planning process, thomson total branding in now installed in all offices world wide guaranting a uniform level of excellence in the development of Brand Vision, a Branding Idea and Total Communication Plan.

Walker Information Global Network (WIGN)

Customer Satisfaction Management & Measurement (CSMM), one of the specialist units of IMRB International, is an exclusive-member of Walker Information Global Network (WIGN) in the Indian subcontinent. Walker Information Global Network is the only international partnership dedicated exclusively to stakeholder measurement and management. CSMM uses proprietary tools developed by Walker Information, the recognised pioneer in customer satisfaction. own International.

Research International (RI)

Research International is a world's largest custom market research agency. It has more offices in more than 50 countries and has an experience of working in over 130 countries. Research International specialises in :

Branding and Communication Innovation and Product Development Category Management Consumer strategy Customer Relationship Service measurement

Associates and Affiliate companies

IMRB International has acted as a catalyst in the development of market research infrastructure in neighboring countries. We work with associate companies in Sri Lanka (Lanka Market Research Bureau) and in the Middle East (Arab Market Research Bureau), and through affiliates in Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Egypt, Tunisia, Nepal, Pakistan, Bangladesh and Myanmar. IMRB International has been offering over 30 years of specialist research services to clients in India and overseas on products and services covering the entire gamut of business and industry. IMRB International today, operates out of its five full service offices in Mumbai, Delhi, Calcutta, Chennai and Bangalore and is supported by 15 other 34

regional centres for collection of survey information that literally span the entire country. We are able to provide the highest quality of professional services to the utmost satisfaction of our clients which include the small medium and large scale industries, the government and public sector units, multinational corporations and international companies that are eyeing the highly promising Indian market. To serve the diverse needs of our clients, we also have five specialist units :

Probe Qualitative Research (PQR) Social and Rural Research Institute (SRI) Media & Panel Research Group Customer Satisfaction Management & Measurement (CSMM) Business & Industrial Research Division (BIRD) and the eTechnology Group@IMRB International

Probe Qualitative Research is one of India's leading qualitative research groups and has executives specially trained in India and overseas in qualitative research methods. Drawing on learning from ethnography, psychology and anthropology, PQR has created a validated tool-kit for product, communication and brand development.

The Social and Rural Research Institute specialises in social research and in conducting research on emerging rural markets. It has staff with special expertise in conducting Knowledge, Attitudes & Practice (KAP), Studies on health and sanitation, water, environment and other fields, in India as well as internationally. The Media and Panel Group of IMRB International is a pioneer in the field of media research in India. It has been conducting the National Readership Surveys in India since 1978. It has been running India's only Television Rating Programme (TRP) since 1986, the year in which television went commercial in a major way. It has also developed its own people meters. Customer Satisfaction Management & Measurement is part of the Walker Information Global Network and is the first such specialist organisation in India with an

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exclusive focus on customer and employee satisfaction, reputation and stakeholder assessment Business & Industrial Research Division (BIRD) and the eTechnology Group@IMRB International: As industrial markets transformed from monopolies to competitive markets, the need for research based consultancy services was demanded of IMRB International. IMRB International spun off the Business & Industrial Research Division to meet the growing and changing needs of the industrial marketer. Over a decade of research experience in telecommunication, office automation, information technology and the convergence of these technologies has given the eTechnology Group of IMRB International, knowledge and experience in a wide spectrum of hardware, software and services.

IMRB International's Divisions: Consumer Research

Set up in 1971, the Quantitative Division at IMRB International is the oldest research unit in the country. In our three decades of research experience in India, we have worked on almost all product categories, and have the expertise in the entire gamut of research methodologies and techniques. At IMRB International, we use Millward Brown techniques for research related to Advertising Pre-testing, Brand Equity Measurement and Brand Tracking, for which we are the sole licensees for the Indian subcontinent. You can find out more about the Millward Brown International Process in India by downloading it in

IMRBInternational's Divisions: Media Panel Group

IMRB International has been a pioneer in conducting large scale Media and continuous panel research in India. It has historically been associated with the National Readership Surveys (NRS) conducted in India since 1978. The Television Rating Points System (TRP) from IMRB International is India's only continuous Television Audience Measurement service since 1986, the year in which television in India went commercial

36

in a major way. The TRP ratings are the official "currency" for air time transactions in the country. Currently, the TRP Diary System is in the process of changing over to PeopleMeter based audience measurement service. The industry contract to set up the National PeopleMeter based Television Audience Measurement System has been awarded to the joint venture company being set up by IMRB International in collaboration A.C.Nielsen

In addition, the Media & Panel Research Group also operates Consumer Purchase Panels in both urban and rural India which monitors the purchase of FMCGs, toiletries, personal products and OTC medicinal products.

IMRBInternational'sDivisions: PQR
Probe Qualitative Research (PQR) was established in 1979, in the belief that qualitative research demands expertise and training inputs of an exceptional kind. From its inception PQR has been associated with leading international qualitative research organisations. It is the largest and fastest growing qualitative research organisation in the country. PQR provides research which is analytical and actionable, seeking to resolve particular client problems and questions and providing future direction. It also provides high quality insight and multi-disciplinary exploration of consumer motivation and behaviour through a strong base of multilingual research executives and moderators.

IMRBInternational'sDivisions: SRI
The Social and Rural Research Institute (SRI) was set up in 1990 with the objective of establishing a specialist unit to give focus and identity to two aspects of research that IMRB International had, in fact, been actively involved in for several years, namely, social research and research of and for rural markets . SRI uses a combination of desk research, qualitative research techniques such as focus group discussions and participatory research as well as quantitative research techniques. In addition SRI approaches each research subject with an open mind and adapts market research techniques to suit the special requirements of illiteracy, poor articulation, several languages and dialects. 37

SRI has two distinct missions that guide its operations: To study social issues with commitment, expertise, objectivity and an orientation towards actionability, and to set up databases and research expertise with regard to marketing in rural India , where hitherto there has been a paucity of data. SRI guided by its mission specialises in conducting Social research and Rural research. Social research deals with research on causes and issues that can contribute to action which would bring about social change. Rural research pertains to research in, of and for rural areas, both for social issues as well as for rural marketing.

Coverage
SRI takes pride in having the resources to conduct data collection in almost any part of the country. It can undertake nation wide surveys almost simultaneously and much faster than others. In last three years, we have undertaken four nation wide surveys and have our presence in almost all parts of the country. IMRB International's Divisions: Media & Panel Group IMRB International has been a pioneer in conducting large scale Media and continuous panel research in India. It has historically been associated with the National Readership Surveys (NRS) conducted in India since 1978. The Television Rating Points System (TRP) from IMRB International is India's only continuous Television Audience Measurement service since 1986, the year in which television in India went commercial in a major way. The TRP ratings are the official "currency" for air time transactions in the country. Currently, the TRP Diary System is in the process of changing over to PeopleMeter based audience measurement service. The industry contract to set up the National PeopleMeter based Television Audience Measurement System has been awarded to the joint venture company being set up by IMRB International in collaboration with A. C. Nielsen.

38

In addition, the Media & Panel Research Group also operates Consumer Purchase Panels in both urban and rural India which monitors the purchase of FMCGs, toiletries, personal products and OTC medicinal products.

IMRB International's Divisions: eTechnology Group@IMRB International

"It took 50 years for the world to have 50 million telephones and only 5 years for Internet to reach 50 million users." "There is a tremendous excitement in India surrounding the Internet. We have been wanting to come to India for sometime now. In fact, India today is like the US was some three years ago." As the technology evolves and creates communications infrastructure, barriers to progress continue to arise. Some problems are technical, economic or policy-related, while the hardest combine all three aspects in any country.

"What you know is wrong!"

Today, that may be the easiest advice anyone can give about technology market. Even the experts are constantly caught by surprise, How far things are estimated right? It is the continuous link with the industry and constant monitoring that has given a few the capabilities of understanding the movement of technology market and estimating things right. The Technology Group@IMRB International can dare claimimg that it is probably one of the very few groups that has constantly monitored the technology market and actually estimated this difficult market quite well during the last few years.

The Henley Centre

The Henley Centre is a demand led strategy-consulting group with a mission to help clients achieve and sustain profitable growth.

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Our Strategic Construct: Demand led Approach

Managing Profitable Growth will be the biggest challenge in the emerging border-less business world Geographical boundaries no longer limit business. The challenge to staying ahead in this seamless economy is to be competitive in both domestic & global markets. The easy availability of technology & capital, combined with reliance on cost leveraged supply side strategies tend to weaken competitive insulation over time and eventually lead to commoditization of brands and the parity of players. Therefore, to maximise growth and profit and win over competition, businesses would need to focus on understanding demand and use this understanding to drive their creation and delivery of supply.

Businesses will become competent on Supply but their Unique understanding of Demand will provide winning strategies to sustain competitive advantage & the challenge would be. 1. To successfully identify and understand holistic attractiveness of productmarkets. 2. To be relevant & differentiated through a well defined strategy to be aligned with the most profitable product markets & consumer segments. 3. To ensure that the supply-side processes & organization deliver consistently to the Demand-side mandate. 4. Innovate and Develop brands to reflect the totality of the Demand Strategy. The THC-SMCG Intellectual Capital cuts across all major industry sectors, including new media, fmcg, retail, travel, financial services, leisure, utilities, and telecom. Access to other WPP group companies add to the strength of our resources. profitable growth. As consumers and markets continuously evolve in their needs & sophistication,

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Chapter 3rd Objectives & research Methodology

OBJECTIVE
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To study the various mobile services To study the market strategy and promotion sales of mobile services To study the various aspects about the mobile services To find out the consumer prospective regarding the various mobile services To study the features and benefits of the mobile services

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RESEARCH METHODOLOGY
Research refers to the organized method consisting of enunciating the problem collecting facts, critically analyze of facts arriving at conclusion based on them. Formulation of the problem is the first & vita) step in research John says that It is a familiar & significant saying that problem well put in is half solved. RESERCH DESIGN After research objectives the second stage of research calls for developing the most efficient plan for gathering the needed information. Designing a research plan includes decisions on data sources, research approaches, research instrument & sampling plan. DATA COLLECTION Collection of data regarding the problem under research is called data collection. Two types of data can be used in research i.e. primary data & secondary data. I have used primary data as well as well as secondary data for my project report. PRIMARY DATA The primary data is the data gathered for a specific purpose or specific research report. I have collected primary data with help of questionnaires. SECONDARY DATA The secondary data is the data, which already exists & was collected for some other purpose. The secondary data 1 have used in my research report is basically collected from the business magazines, journals & websites of trade organizations.

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RESEARCH APPROACH Primary data can be collected in four ways: Observation. Focus groups, Surveys & Experiments. My approach to the research is survey based, as it is best suited to know customer preferences & practices... RESERARCH INSTRUMENT The instrument used for carrying out the research is questionnaire as it is the most economical, flexible & easy to understand device used for collection of data. Keeping in view the research objectives, a questionnaire is prepared which is very easy to understand. This questionnaire was tested to locate any discrepancy, in the pilot survey & changes were made. SAMPLING DEDIGN The first step in developing any sample design is to clearly define the set of objects, as my study is exploratory, the sampling design includes three decisions i.e. Sampling unit, Sample size & Sampling procedure. SAMPLING UNIT In this research report the sampling unit includes the data collection of veterinarians and medicinal records. SAMPLING SIZE The sample size of my research is 100 mobile subscribers, Large samples give more reliable results that is why I tried my best to cover more veterinarians of different cities in Punjab. Sample Size 100 Sample Unit Mobile Subscribers (Airtel, Vodafone, Spice & BSNL) Area of Survey Bhatinda.

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Chapter 4th Data Analysis & Interpretation

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1: Which mobile service you are using? (a) (b) Airtel Vodafone (c) ( D) Bsnl Spice

Consumer Prospective
BSNL 13%

Spice 20%

Airtel 42%

Airtel vodafo ne Spice BSNL

vodafo ne 25%

Interpretation: Airtel has the maximum subscribers due to their better service and best network connectivity

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2: Which connection do you have? (a) post paid (b) pre paid

Consumer Prospective

Post Paid 38% Prepaid 62%

Interpretation: Maximum subscriber have prepaid connections rather than the post paid ones as they want to use its fulltime usage of money.

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3: Which thing has made you to purchase that product? (a) cost (b) service (c) regular connectivity
Consumer Prospective

Regular Connectivity 34%

Cost 28%

Service 38%

Interpretation: Cost not much matters but the regular connectivity and better services are the Key points for any mobile service provider to be the best in the market.

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4: How long have you been using the service of this company? (a) 1-3 months (b) 3-6 months (c) 6-12 months (d) More than a year

Consumer Prospective
1-3 months 15%

more than a year 41%

3-6 months 18%

1-3 months 3-6 months 6-12 months more than a year

6-12 months 26%

Interpretation: Gone are the days when fewer people have mobile connection,
competition in the market and its full technical use make everyone taking usage and now maximum subscribers have connections for many days.

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5: Why did you use this service? (a) business purpose (b) casual use (c) status symbol

Consumer Prospective

Status Symbol 28%

Business Purpose 40%

Casual Use 32%

Interpretation: Maximum usage of mobile is in the business area and then come the casual use

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6: Which facility you use more? (a) incoming (b) out going (c) both equally

Consumer Prospective

both equally 26%

Incoming 36%

Outgoing 38%

Interpretation: Mix response have been watched by the subscribers as they want to take
full use of it whether incoming or outgoing.

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7: Are you satisfied by the call rates and monthly rental? (a) Yes (b) No

Consumer Prospective

No 41% Yes 59%

Interpretation: When you get the good service and connectivity you remain happy with the call rates and monthly rentals but if get poor service then definitely it pinches.

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8: Are you satisfied with the service you are getting ? (a) Yes (b) No

Consumer Prospective

No 38% Yes 62%

Interpretation: When you get the good service and connectivity you remain happy and satisfied.

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9: If the other mobile service gives more benefit regarding call rates and free roaming facilities, do you switch from your current mobile service. (a) Yes (b) No
Consumer Prospective

No 28%

Yes 72%

Interpretation: Yes, the other mobile service gives more benefit regarding call rates and free roaming facilities, do you switch from your current mobile service

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10: From your prospective, what extra facilities you expect from the mobile services. (a) Better Network Connectivity (b) Free National Roaming (c) Low Price International calls (d) Free MMS and SMS Services

Consumer Prospective

Free MMS and SMS Services 30%

Better Netw ork Connectivity 28%

Better Network Connectivity Free National Roaming

Low Price International Calls 20% Free National Roaming 22%

Low Price International Calls Free MMS and SMS Services

Interpretation: Mobile subscribers wants good connectivity, free MMS and SMS services with free national roaming and low priced international calls.

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Chapter5 Conclusion & recommendations

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FINDINGS

Airtel has the maximum subscribers due to their better service and best network connectivity. Maximum subscriber have prepaid connections rather than the post paid ones as they want to use its fulltime usage of money. Cost not much matters but the regular connectivity and better services are the provider to be the best in the market. Gone are the days when fewer people have mobile connection, competition in the market and its full technical use make everyone taking usage and now maximum subscribers have connections for many days. Maximum usage of mobile is in the business area and then come the casual use Mix response have been watched by the subscribers as they want to take full use of it whether incoming or outgoing. When you get the good service and connectivity you remain happy with the call rates and monthly rentals but if get poor service then definitely it pinches. When you get the good service and connectivity you remain happy and satisfied. Yes, the other mobile service gives more benefit regarding call rates and free roaming facilities, do you switch from your current mobile service. Mobile subscribers wants good connectivity, free MMS and SMS services with free national roaming and low priced international calls. key points for any mobile service

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SUGGESTIONS
Telecom companies whether GSM or CDMA, they have to be fully updated with the technology to get fit in the telecom sector. One notable break with the past is that with opening up of the developing economies and widespread sectoral reforms, catching up process has become faster. Developing countries with liberal policies have much better opportunity to leapfrog than before. Mobile experience of the low-income countries bears testimony to this process. India is a participant in this global process. There is tremendous appetite to absorb new technology. At the higher end of the market, India will mimic the most sophisticated telecom technology of the world and face all types of uncertainties that are associated with any new technology anywhere in the world. It will take time for the market for new technologies to consolidate. Market maturing will be a continuous process at some of the segments of telecom sector. This holds good even today. Todays market does not guarantee reliable revenue stream to investors in new technology like VoIP, broadband and 3G since they lack an existing client base1. Side by side, a process of diffusion will continue unhindered in respect of established technology in the mass market.

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Conclusion

In case of mobile services, the users are having maximum GSM service rather than the CDMA service. The area of the internet is still watchful, it get improved but still needs attention as many of the user still dont have internet facility. The telecom sector has to grow its technology as to provide more and more broadband services to the users in connection to remit out dial up connections which are slow ones . Gone are the days when people are starving for just one telecom line connection, now the scenario has changed and people now having 2 or also more than 2 telecom connections with them. Gone are the days when you have made queue for telecom connection, now are the days when you just have dial toll free numbers and you will get the connection within few days. Growing competition has make the telecom market flexible, now there is no fix limit or bar, you can bargain at the time of arranging telecom connection for the personal and professional use . To provide better telecom services, companies are now providing discounts, schemes and other lucrative gifts to attract the customer and in this context, their quality, efficiency specially the demand is increasing. . Mobile services have seen a remarkable growth in the telecom sector, as this is the booming business for the mobile service providers and giving an edge to telecom services in the country. Airtel and Vodafone are toping the chart in case of mobile communication in the country with respect to other mobile service providers like Reliance, Tata Indicom and BSNL. With the invasion of private service providers in the field of telecom services, competition has gone up but still BSNL toping the chart.

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QUESTIONNAIRE
NAME: . LOCATION: PHONE NO. SEX: ..

1: Which mobile service you are using? (c) Airtel (d) Vodafone (e) Spice (f) BSNL 2: Which connection do you have? (c) post paid (d) pre paid 3: Which thing has made you to purchase that product? (d) cost (e) service (f) regular connectivity 4: How long have you been using the service of this company? (a) 1-3 months (b) 3-6 months (c) 6-12 months (d) more than a year 5: Why did you use this service? (d) business purpose (e) casual use (f) status symbol

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6: Which facility you use more? (d) incoming

(e) out going

(f) both equally 7: Are you satisfied by the call rates and monthly rental? (c) Yes (d) No 8: Are you satisfied with the service you are getting ?

(c) Yes (d) No

9: If the other mobile service gives more benefit regarding call rates and free roaming facilities, do you switch from your current mobile service. (a) Yes (b) No 10: From your prospective, what extra facilities you expect from the mobile services. (e) Better Network Connectivity (f) Free National Roaming (g) Low Price International calls (h) Extra Value Added Services (i) Free MMS and SMS Services
Thank for your co-operation

Date:

sunil kumar

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Library Resources

Bibliography

T H Chowdary, Journal of the Center for Telecom management and Studies, Vol IX, No. 10, Hyderabad, October 2000 Bella Mody, State Consolidation through liberalization of Telecom; Journal of communication 45(4) 1995 Rekha Jain, Review of the Policy Changes in the Indian Telecom Sector: Implications for decision makers, Journal of Global Information Management 1(3), 1993 Internet Resources www.indiamobiles.com/mobile_service_providers_india.htm www.indianchild.com/cellular_ mobile_service_providers_india.htm www.india-cellular.com/ www.airtelworld.com www.spiceindia.com www.bsnl.co.in www.vodafoneindia.com

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