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Project Report



Under the Guidance of Mr. Kaushal Porwal (Area Sales Manager)

Submitted By Sanoo Mishra Session (2010-11)

Submitted To

Government Polytechnic Barabanki


This is certify that the Project Report on Product Planning and Development has been submitted by Ms. Sanoo Mishra D/o Shri Vijay Prakash Mishra, Final year Post Graduate diploma in Marketing & Sales Management, to the Department of Marketing & Sales Management . This is according to the prescribed specification by Board of Technical Education,U.P for this Project of this year 2010-11. We wish a bright future for her.

Sri . A.K .Shinha Principal Govt. Polytechnic , Barabanki

Sri G.K.Nigam Lecturer Marketing & Sales Management Govt. Polytechnic , Barabanki

Examined by.


Introduction Brand information Indian Telecom Industry Idea operations Acquisition of product in telecom market Research Methodology Analysis Recommendation Bibliography

4 16 26 38 51 55 66 78 79


Whenever we talk of growth and development of a nation, hardly can there be anyone who can ignore the vital contribution of Telecommunication sector. Today it has become a lifeline for us, in the absence of which we feel we are separated from the world at large. The importance of telecommunication product and service has gone deep in the life of people that after three essentials of human being i.e. food, shelter and clothing the fourth one that can be added comfortably is the communication. A gadget and a service which can be found in everyones palm ranging from rickshaw-puller to big businessmen. Now talking of India, which is still a developing country, the importance of telecommunication as a sector can be very well understood. Indian telecom sector has been doing exceptionally well in the past decade. Its structural and institutional reforms have provided tremendous growth opportunity to his sector. India has nearly 250 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. And in this context whenever we talk of mobile telephony, Vodafone as a brand must be taken in to account. Nowadays there is lot of competition between different telecom operators who in order to add more subscriber base to the existing figures comes out with attractive customer schemes and virtually there is a tug of war between operators to get more market share. But in this fierce competitive war to get more subscriber base, many a times the Retailers who play a vital role in the whole chain of sales and who influence customers for a service provider are sometimes ignored. So from this study an attempt has been made to understand the psychology, behaviour, preference and satisfaction at the Retailer level. In this competitive market for a service provider to get an edge over other operator, in addition to other prevailing factors a operator must clearly understand the behaviour, preference and satisfaction level of Retailers, which will help them to design effective strategies to get more sales and increase subscriber base and shift push sales to pull sales. The study delves into how the Retailer behaves and their expectation level from a particular service provider and how it can be effectively manag


Idea Cellular Ltd.


Public BSE: 532822 NSE: 532822






Santacruz East, Mumbai, India [1]

Key people

Kumar Mangalam Birla (Chairman) Sanjeev Aga (MD) Rajat Mukharjee (VP Corporate Affairs)




Rs 12,447.08 crore (US$ 2.65 billion)(2010) [1]

Operating income

Rs. 1,475.87 crore (US$ 314.36 million)(2010)

Net income

Rs. 953.94 crore (US$ 203.19 million)(2010)


Aditya Birla Group (49.05%) Axiata Group Berhad (15%) Providence Equity (10.6%)




The chronology of key events of the Company from incorporation is set out below: Calendar year Events 2009 Subscriber base as on December 31, 2009: 57,611,872 Idea becomes a pan-India operator Emerging Company of the Year - fastest growing mobile operator in the worlds fastest growing telecom market 2008 Subscriber base as on December 31, 2008: 40,016,153 Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir Acquired Spice Communications with the operating circles of Punjab and Karnataka Launched services in Mumbai metro in the largest single metro city launch, ever Launched services in Bihar

Becomes pan-India operator in 2009

Acquired Escotel, incumbent cellular service provider in Haryana, UP(W) & Kerala and new licensee in HP

Brand IDEA launched Delhi operations commence (Nov)

2007 Subscriber base as on December 31, 2007: 21,054,027 Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the GSM Association Awards in Barcelona, Spain Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares on the Bombay Stock Exchange and the National Stock Exchange Merger of seven subsidiaries with Idea Cellular Limited Reached the twenty million subscriber mark 2006 Subscriber base as on December 31, 2006: 12,442,450 Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) Restructuring of debt Launch of the New Circles Reached the 10 million subscriber mark MoU for merger between Birla AT&T and Tata Cellular Limited Andhra Pradesh signed (Jan) Acquired RPG Cellcom, service provider in Madhya Pradesh (Feb) Awarded

Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle. Received Letter of Intent from the DoT for a new UAS License for the Bihar Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million. 2005 Subscriber base as on December 31, 2005: 6,473,962 Reached the five million subscriber mark Turned Profit Positive Won an Award for the "Bill Flash" service at GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards 2004 Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited) 10

Birla AT&T commence Cellular operations Maharashtra & Gujarat

Reached the four million subscriber mark First operator in India to commercially launch EDGE services 2005 2003 Reached the two million subscriber mark 2002 Changed name to Idea Cellular Limited and launched "Idea" brand name Commenced commercial operations in Delhi Circle Reached the one million subscriber mark 2001 Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited Obtained license for providing GSMbased services in the Delhi Circle following the fourth operator GSM license bidding process 2000 Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle 1999 Migrated to revenues share license fee


regime under New Telecommunications Policy ("NTP") 1997 Commenced operations in the Gujarat and Maharashtra Circles 1996 Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industries and AT&T Corporation 1995 Incorporated as Birla Communications Limited Obtained licenses for providing GSMbased services in the Gujarat and Maharashtra Circles following the original GSM license bidding process.


Company information

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. IDEA Cellular is a leading GSM mobile services operator in India with 67 million subscribers, under brand IDEA. It is a pan India integrated GSM operator covering the entire telephony landscape of the country, and has NLD and ILD operations. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and

competitive Pre Paid offerings, for the first time in India, in an increasingly segmented market. From basic voice & Short Message Service (SMS) services to high-end value added & GPRS services such as Blackberry, Datacard, Mobile TV, Games etc - IDEA is seen as an innovative, customer focused brand. IDEA offers affordable and world-class mobile services to varied segments of mobile users. Be it high end users, or low-end, price sensitive consumers - IDEA's tariff plans are designed to suit every pocket.


With a vision of delighting its customers while meeting their individual communication needs anytime, anywhere, IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to international traveling customers across over 200 countries. IDEA Cellular has partnership with over 400 operators to ensure that customers are always connected while on the move, within the country or other parts of the world. IDEA is the winner of 'The Emerging Company of the Year Award' at The Economic Times Corporate Excellence Awards 2008-09. The company has received several other national and international recognitions for its path-breaking innovations in mobile telephony products & services. It won the GSM Association Award for "Best Billing and Customer Care Solution for 2 consecutive years. It was awarded "Mobile Operator of the Year Award - India for 2007 and 2008 at the Annual Asian Mobile News Awards IDEA Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 1,30,000 employees belonging to 30 nationalities. The Group has been adjudged the '6th Top Company for Leaders in Asia Pacific Region' in 2009, in a survey conducted by Hewitt Associates, in partnership with The RBL Group, and Fortune. The Group has also been rated 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.

Our Service Areas

The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India. These classifications are based principally on a Service Area's revenue generating potential. IDEA is a pan-India operator with services being made available in all parts of the country. The telecom service areas have been divided into Established and New Service Areas.

Established Service Areas

The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West). Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited. In June 2001, the mobile operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002. In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these Service Areas were re-branded and integrated with IDEA in June 2004.


Brand information

The brand Idea It is almost impossible to disintegrate brand Idea from the corporate Idea. Brand values are the company values and vise versa. Brand Vision: It goes without saying that the brand vision of idea mirrors the companys vision. The brand mission statement is...... To be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time & space. IDEA - Brand Values Innovate . Stimulate . Liberate .... It is these brand values, which have made us a formidable player in the telecom industry. Innovations that stimulate the customer and liberate him from the shackles of time and space are the core of our brand. This is what we strive for. Nothing more, nothing less, nothing else.


DEA - Brand Mission The India footprint Idea Anywhere connectivity - bringing India closer.

The Technology Advantage Idea Tomorrow's technology to enrich today.

The Customer Focus Idea Make a single interaction a lasting relationship.

Brand Initiatives -

Our aim, through media buying and planning, is to create year round impact. ith the objective of Strengthening our brand, we work with strategic communication partners on campaigns like sponsorship of the Idea International Indian Film Academy awards and the television programs Idea Rocks India, Idea Star Singer and Idea Andhra Idol. We seek engagement with subscribers on a variety of levels, from major celebrity fashion shows to small local events timed to coincide with new product offerings. Since August 2003, we have commissioned a Brand Track Index Study to evaluate the health of our brand. The Brand Track Index Study is a monthly study conducted by TNS, a marketing consultant engaged by us to evaluate our brand using face-to-face interviews on a random sample of mobile users a well as those Intending to purchase mobiles within the next three months. According to the study our brand is perceived as reliable/trustworthy

and one that offers cheaper and good promotional offers. We have improved our rating in the Brand Track Index calculated by the study in the past year reflecting, we believe, the growing strength of our brand. The main communication medium for the Idea brand is television, where we seek strategic Idea brand coverage in various formats. Billboards and hoardings are used as a secondary medium, customized for specific regional preferences to communicate effectively at the local level. We also use other mass communication media such as the press and radio to communicate price plans and other tactical and customer information. All our key initiatives are subjected to a rigorous testing and launch process to ensure accountability for all advertising spend and improve the chances of success of a new product. This process is followed up with extensive briefing of call center agents and sales personnel and real-time tracking of the impact of the communication and feedback from subscribers.


Key People

Board of Directors

Mr. Kumar Mangalam Birla (Chairman) Smt. Rajashree Birla Mr. Sanjeev Aga (Managing Director) Mr. Arun Thiagarajan Ms. Tarjani Vakil Mr. Mohan Gyani Mr. Gian Prakash Gupta Mr. R.C. Bhargava Mr. P. Murari Mr. Biswajit A. Subramanian Dr. Rakesh Jain Mr. Juan Villalonga Navarro Dr. Hansa Wijayasuriya (Alternate to Mr. Juan Villalonga Navarro)

Management Team -

Corporate Leadership Team

Mr. Sanjeev Aga, Managing Director Mr. Akshaya Moondra, Chief Financial Officer

Mr. Anil K. Tandan, Chief Technology Officer Mr. Prakash K. Paranjape, Chief Information Officer Mr. Navanit Narayan, Chief Service Delivery Officer Mr. Vinay K. Razdan, Chief Human Resource Officer Mr. Rajat K. Mukarji, Chief Corporate Affairs Officer Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer Mr. Ambrish Jain, Director - Operations Mr. Himanshu Kapania, Director Operations

Circle Heads Mr. Iyer Subbaraman S., Chief Operating Officer, Andhra Pradesh Mr. Rajendra Chourasia, Chief Operating Officer, Madhya Pradesh & Chattisgarh Mr. Virad Kaul, Chief Operating Officer, Uttar Pradesh (West), Delhi & Haryana Mr. T. G. B. Ramakrishna, Chief Operating Officer, Kerala Mr. Sashi Shankar, Chief Operating Officer, Mumbai Mr. P.Lakshminarayana, Chief Operating Officer, Maharashtra & Goa Mr. Naozer Firoze Aibara, Chief Operating Officer, Uttar Pradesh (East) Mr. Sunil Kataria, Senior Vice President - Operations, Rajasthan Mr. Arul Bright, Senior Vice President - Operations, Gujarat Mr. M. D. Prasad, Senior Vice President - Operations, Bihar Mr. M. Srinivas, Senior Vice President - Operations, Tamil Nadu & Chennai Mr. Siva Ganapathi, Chief Operating Officer, Karnataka Mr. Anish Roy, Chief Operating Officer, Punjab, J&K and Himachal Pradesh Mr. Aloke Malik, Chief Operating Officer, East (Kolkata, Rest of Bengal, Orissa & NESA)


our Partners

IDEA welcomes all businesses and individuals interested in partnering with us to enhance and strengthen the IDEA products & services portfolio.

To explore such potential partnerships, kindly get in touch with us by submitting the Partners Form.

Some of our Technology and Content Partners: VAS Onmobile Asia Pacific Ltd

Cellebrum India Ltd

Siddhivinayak Astro Services Ltd.

Kodiak Ltd


Net4nuts India Ltd



Rediff Indiatimes Mobile2win Sify NDTV

ROAMING Starhome

Bharti Telesoft





Our Values

Values We Value : Integrity - Honesty in every action

At Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner that is fair, honest, following the highest standards of professionalism and also perceived to be so. Integrity for us means not only financial and intellectual integrity, but in all other forms as are commonly understood. Key words that connote Integrity are:

Ethical Truthful Principled Transarent Upright Respectful Commitment - deliver on the promise
At Aditya Birla Group Commitment is defined as: On the foundation of integrity, doing whatever it takes to deliver value to all stakeholders. In the process, taking ownership of our actions and decisions, those of our team and that part of the organization that we are responsible for.


Key words that connote commitment are:

Accountability Discipline Responsibility Result -orientation Self-confidence Reliability Accelerated Timelines Nimble Prompt Proactive



Indian Telecom Industry


Indian Telecom Industry

At 306.45 million connections Indian Telecom Industry till May 09, is the 3rd largest and fastest growing in the world. The subscriber base has grown by 40% annually and is expected to reach 250 million in 2007. Over the last 3 years, two out of every three new telephone connections were wireless. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to grow at 2.5 million new subscribers every month in 2007. The wireless subscriber base skyrocketed from 33.69 million in 2004 to 62.57 million in FY 2004 -2005. The wireless technologies currently in use Indian Telecom Industry are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country. And the numbers are still growing for Indian Telecom Industry is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence.

Three types of players exist in ' Indian Telecom Industry community. State owned companies like - BSNL and MTNL. Private Indian owned companies like - Reliance Infocomm and Tata Teleservices. Foreign invested companies like Vodafone-Essar, Bharti Tele-Ventures, Idea Cellular, BPL Mobile, Spice Communications etc.

The Indian Telecom Industry services are not confined to basic telephone but it also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc. The bottlenecks for Indian Telecom Industry are: Slow reform Process. Low-penetration. Service providers bears huge initial cost to make inroads and achieving break-even is difficult. Huge initial investments Limited spectrum availability and interconnection charges between the private and state operators


Key Players In Indian Telecom Industry

The telecom industry of India has registered manifold growth in the recent years. Personalized telecom access is essential necessity of life for increasing number of the people. The sector offers unlimited prospects when we consider future growth. Both Public Players and Private Players are enhancing their technologies and taking the telecom industry to a much higher growth state. Not only service providers but also handset manufacturers are contributing significantly to the industry and economy of India.

The top players in the industry are:

1) Reliance Communications Limited

2) Bharti Airtel Limited



5) Vodafone Essar

6) Ericsson

7) Nokia

8) Siemens Communications

9) Idea Cellular Limited


10) Tata Teleservices

Telecom Regulatory Authority of India


The Telecommunications Regulatory Authority of India or TRAI (established 1997) is the independent regulator established by the Government of India to regulate the telecommunications business in India.

Telecom Regulatory Authority Of India, a statutory and quasi-judicial body was formed by an Act in Indian Parliament to regulate the vast telecom sector. The necessity to form such a regulatory body in line with SEBI, IRDA etc. was felt when the telecom sector was open to private sector. Plainly speaking its job could be comparable to an umpires of a game field. It has been given the liberty to act without the intervention of bureaucracy or some selfserving politicians,


The skirmishes encompassing TRAI came to limelight due to conflict among various telecom operators. Thats exactly the duty of this regulatory body, as has been entrusted with the statutory power, umpiring on behalf of the public for smooth telecom service. If one reviews the sequence of its orders/regulations, chronologically, to various telecom operators and the crucial policy changes with regards to service changes the monopolistic and arbitrary attitude is clearly visible. Unfortunately, Its a matter of concern that INTER CONNECT USAGE REGIME ordered by the same agency is being reviewed again by itself within two months of its enforcement. It could have been reviewed before it has been implemented or could have been kept for public perception or operators opinion. If an telecom regulator of a country having almost 7 crores telephone connections could act in such a haste manner without taking into consideration of aspects of technical feasibility, accounting, public psyche etc. into oblivion.

Though operators have the requisite expertise technically and financially to provide cheaper telecom service, TRAI is there only to make it costlier. e.g. BSNL and RELIANCE . If they could offer cheaper telecom services them, TRAI should not prevent them in the name of PREDATORY PRICING . Its appropriate time to review the role of TRAI and other Statutory Regulatory bodies by the public forum and parliament as well, rather than giving it a free reign to act on this way to the tune of certain players. On April 25, 1997, the recently constituted Telecom Regulatory Authority of India (TRAI) gave its first judgment -- a landmark one, delivered with speed and style. This judgment and its no-nonsense approach could well set the stage for things to come. TRAI quashed DoTs (Department of Technology) order of January 29, which had sought to hike rather steeply, the price of calls made by users of ordinary fixed line phones to cellular subscribers in the non-metro areas. Even the cellular operators, whose stand was accepted by the TRAI, would accept privately that the respondent DoT was poorly served by many of its officers and lawyers who were entrusted with the task of representing DoTs case. They seemed to have cut a very sorry figure before TRAI, ignoring or not being prepared by reading pertinent

papers, such as tender documents, the clarifications offered to would-be bidders, or the correspondence that DoT was having with the operators later. Since the tender documents mentioned that tariffs would be the same for circles and metros, it would have made sense for DoT to seek legal advice on how to correct a mistake, if that is what it was. An appeal to TRAI could perhaps have been recourse, as the body is in charge of tariffs.

Fixed line users pay local call rates when they dial a cellular number in the four metros (Calcutta, Chennai, Delhi, and Mumbai). But users in the circles (which are typically the same as states) would be charged Rs10 per call for the same facility, if the DoT order in question had not been quashed.

DoT had raised current rates on grounds that such charges were low and allowed users in the circles which are much larger than metros, to make long distance calls without paying STD charges. On the face of it, DoT is entitled to want to change this state of affairs. But in trying to correct one injustice to itself, it managed to inflict several on the users and other service providers.

The cellular operators lost no time in going to the courts, since TRAI did not then exist. The courts in turn took an enlightened decision to pass the matter on to TRAI on March 3rd , as the body had been formally constituted by then. TRAI took a few weeks to give its judgment and ruled against the Department of Telecom. The body was not persuaded about the justness of DoTs order. Nor was TRAI particularly impressed by the operators contention that DoT was not authorized to raise these tariffs. The judgment clearly says that the order of DoT to raise the tariff was passed before the TRAI was formally constituted and during the said period in question, the DoT was the sole body with the power to amend tariffs.


To ensure that the interests of consumers are protected and at the same time to nurture conditions for growth of telecommunications, broadcasting and cable services in a manner and at a pace which will enable India to play a leading role in the emerging global information society. Function of Telecom Regulatory Authority of India

Functions of TRAI

1. Recommendatory Functions Terms and conditions of licence to a service provider Revocation of license for non-compliance of terms and conditions of license Measures to facilitate competition and promote efficiency in the operation to facilitate growth in industry Technological improvement in services by service providers Inspection of type of equipment used by service provider Efficient Management of available spectrum

2. Mandatory Functions Fix the terms and conditions of their inter connectivity between service providers Ensure Technical compatibility and effective inter-connection between different

service providers. Regulate arrangements for sharing of revenues amongst service providers Lay-down the standards of QoS to be provided by service provider,ensure this by periodical survey Lay-down and ensure time period for providing local and long-distance circuits of telecommunication between different service providers

3. Other functions

Levy fees and other charges as determined by regulations Perform administrative functions as entrusted to it by Central government or as per TRAI act Notify in Official Gazette the service rates and message rates within and outside

Responsibilities Notwithstanding anything contained in the Indian Telegraph Act, 1885, the functions of the Authority shall be to:

1. make recommendations, either suo motu or on a request from the licensor, on the following matters, namely:

i. ii. iii. iv. v. vi. vii. viii. ix.

need and timing for introduction of new service provider; terms and conditions of license to a service provider; revocation of license for non-compliance for terms and conditions of license: Measures to facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services. Technological improvements in the services provided by the service providers.

x. xi. xii. xiii. xiv. viii.

type of equipment to be used by the service providers after inspection of equipment used in the network. measures for the development of telecommunication technology and any other matter relatable to telecommunication industry in general; efficient management of available spectrum;

2. discharge the following functions, namely:

i. ii.

ensure compliance of terms and conditions of license; notwithstanding anything contained in the terms and conditions of the license granted before the commencement of the Telecom Regulatory Authority (Amendment) Ordinance,2000, fix the terms and conditions of inter-connectivity between the service providers;


ensure technical compatibility and effective inter-connection between different service providers.


regulate arrangement amongst service providers of sharing their revenue derived from providing telecommunication services;


lay down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication services;


lay down and ensure the time period for providing local and long distance circuits of telecommunication between different service providers;


maintain register of interconnect agreements and of all such othermatters as may be provided in the regulations;


keep register maintained under clause (viii) open for inspection to any member of public on payment of such fee and compliance of such other requirement as may be provided in the regulations;


ensure effective compliance of universal service obligations:


3. levy fees and other charges at such rates and in respect of such services as may be determined by regulations.

4. perform such other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act:

Provided that the recommendations of the Authority specified in the clause (a) of this sub-section shall not be binding upon the Central Government: Provided further that the Central Government shall seek the recommendations of the Authority in respect of matters specified in sub-clauses (i) and (ii) of clause (a) of this sub-section in respect of new license to be issued to a service provider and the Authority shall forward its recommendations within a period of sixty days from the date on which that Government sought the recommendations:

Provided also that the Authority may request the Central Government to furnish such information or documents as may be necessary for the purpose of making recommendations under subclauses (i) and (ii) of clause (a) of this sub-section and that

Government shall supply such information within a period of seven days from receipt of such request: Provided also that the Central Government may issue a license to a service provider if no recommendations are received from the Authority within the period of specified in the second provision or within such period as may be mutually agreed upon between the Central Government and the Authority.



Availability of affordable and effective communications for the citizens.

To achieve a teledensity of 7 by the year 2005 and 15 by the year 2010; to improve rural teledensity from the level of 0.4 to 4 by the year 2010. Create a modern, efficient and world class Telecommunications infrastructure taking into account the convergence of IT, Media, Telecom and Consumer Electronics. Convert Public Call Offices (PCOs) into Public Tele-info Centers having multimedia capability like ISDN Services, Remote Database Access, Government and Community Information Systems etc.

Transform in a time-bound manner, the Telecommunications Sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players.

Strengthen Research and Development efforts in the country and provide an Impetus to build world class manufacturing capabilities. Protect Defence and Security interest of the country. Enable Indian Telecom Companies to become truly Global Players. This Policy frame work focuses on creating an environment, which enables continued attraction of investment in the sector and allows creation of Telecommunications infrastructure by leveraging on Technological developments.

The New Telecom Policy frame work looks at the Telecom Service Sector as follows:

Cellular Mobile Service Providers, Fixed Service Providers and Cable Service Providers, collectively referred to as Access Providers. Radio Paging Service Providers. Public Mobile Radio Trunking Service Providers. National Long Distance Operators. International Long Distance Operators.

Global Mobile Personal Communication by Satellite (GMPCS) Service Providers. DISPUTE RESOLUTION IN TELECOM SECTOR

With a view to provide a level playing field in a competitive environment, the Government of India in 1997 established a statutory and autonomous regulator viz., The Telecom Regulatory Authority of India (TRAI) under the TRAI Act 1997.

With a view to further strengthen the regulator the TRAI Act, 1997 was amended in the year 2000 and a separate body viz., The Telecom Dispute Settlement and Appellate Tribunal (TDSAT) was constituted for resolution of disputes in Telecom Sector.


The TDSAT is Empowered to adjudicate any dispute between: Licensor and a Licensee. two or more Service Providers. a Service Provider and a Group of Consumers.

The Appellate Tribunal shall be guided by the Principles of natural justice and have powers to regulate its own procedure.

The Appellate Tribunal has the same powers as are vested in a Civil Court, while trying a Suit, in respect of following matters, viz., Summoning and enforcing the attendance of any person and examining him on oath. Requiring the discovery and production of documents. Receiving evidence on Affidavits Requisitioning any public record or document or a copy of such record or document from any office.

Idea operations


- Operations
This section explains how Vodafone operates, from the key assets it holds to the activities it carries out to enable the delivery of products and services to the Groups customers.








Mobile network technology


Vodafone operates 2G networks in all its mobile operating subsidiaries, through Global System for Mobile (GSM) networks, offering customers services such as voice, text messaging and basic data services. In addition, all of the Groups controlled networks operate General Packet Radio Services (GPRS), often referred to as 2.5G. GPRS allows mobile devices to be used for sending and receiving data over an IP based network, enabling wireless access to data networks like the internet. The GPRS data service offering includes internet and email access, allowing the customer to always be connected at download speeds slightly below a dial-up modem. In some markets, Vodafone continues to further evolve data speeds with 2G evolutions beyond GPRS capability.

Vodafones has 3G networks in some countries but in India it is still awaiting licence from the DOT to launce its services. Operating on the Wideband Code Division Multiple Access (W-CDMA) standard, provide customers with faster data access. Vodafone has expanded its service offering on 3G networks with high speed internet and email access, video telephony, full track music downloads, mobile TV and other data services in addition to existing voice and data services.


Brand and Distribution

Vodafones products and services are available directly, via Vodafone stores and country specific Vodafone websites, and indirectly via third party service providers, independent dealers, distributors and Retailers, to both consumer and business customers in the majority of markets under the Vodafone brand.


Primary sales

Secondry sales

Tertiary sales



Idea distribution channel in India normally contributes roughly 85-90 % of total business volumes. The distribution Model comprises basically comprises of three entities1. A distributor who is given a territory to service. 2. A Distributor FOS (Feet on Street on payroll of the distributor) who is appointed by the distributor to service a particular area of his overall territory. 3. A Retailer who is an entity who purchases stock from the distributors. Through the FOS of his area) and sells it to the end consumer.
Other channels like Company owned Retail such as idea ministore & idea stores are also used as Distribution channel and are generally seen to be contributing to around 10-15 % of a telecom company's subscriber base as well as revenues.

IDEA- Products & Services

The product and services of Vodafone in India may be primarily divided into following ategories:

Now these services can again be categorised into two segments o the basis of realisation of the price from the customer.


In U.P east idea circle has however not launched its all the service as it has just started its operation here. However the following services are available for consumers in Assam.



Overview of handset

A Global Wireless Enterprise Solution Provides an 'always on', secure solution for wirelessly extending corporate data and applications to mobile users including mail, personal information management, sales force automation, field service, document management and more

What the solution is all about

Extending the Enterprise Securely into Mobility Keeping People Connected to High Value Information Increasing Both Personal and Corporate Efficiency Making the Wireless Experience Transparent to the User BlackBerry 8520 BlackBerry 8820

BlackBerry Storm

BlackBerry Curve 8900

BlackBerry Bold 9000

BlackBerry Bold 9700

BlackBerry Handsets

BlackBerry Handsets

BlackBerry 8520

BlackBerry 8820

BlackBerry Storm




Channel satisfaction survey (CSS) are conducted to determine the level of satisfaction on a variety of attributes measured on a scale of 10. The Reliance Communications Ltd. mission is to have a score of more than 8 on the 10-point scale. Channel claims are addressed in an organized, systematic and time-bound manner.The target is to have zero channel dispute (regarding material delivery) pending for more than10 days. channel education and understanding is imparted in case the perception is not in line with R.Com goals and strategies. Both and the channel, in fact,try to improve merchandise and information flow in the distribution channel system. Perfect delivery is the focus area of utmost importance in the entire gamut of channel satisfaction. Delayed/short/ excess/damaged delivery will mar the entire to achieve a delivery around turn time of 90 per cent material in three days time after shipment from distribution center. Monthly monitoring is carried out. corrective and preventive action are based o the pareto analysis. Channel are available both to the customer as well as to the supplier to escalate dissatisfiers to the highest levels in management. Whenever the supply chain is stuck at some point, escalation is commonplace. However, each time the endeavour is to relook at the system and the processes to work on preventive measures rather than on correcative ones. Access provided to customer and supplier through e-mail, the customer feedback system, status reports like pre alerts, etc.


What is SWOT Analysis?

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity),

SWOT analysis is a general technique which can be applied across diverse functions and activities, but it is particularly appropriate to the early stages of planning for a TIPD visit. Performing SWOT analysis involves generating and recording the strengths, weaknesses, opportunities, and threats relating to a given task. It is customary for the analysis to take account of internal resources and capabilities (strengths and weaknesses) and factors external to the organization (opportunities and threats).

SWOT analysis can provide:

A framework for identifying and analyzing strengths, weaknesses, opportunities and threats.

This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple, popular technique which can be used in preparing or amending plans, in problem solving and decision making. Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique

that incorporates an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research.

Strengths: attributes of the organization those are helpful to achieving the objective.

Weaknesses: attributes of the organization those are harmful to achieving the objective.

Opportunities: external conditions those are helpful to achieving the objective.

Threats: external conditions that is harmful to achieving the objective.

SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings - use them as you find most helpful, and make up your own to suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc. Here are some examples of what a SWOT analysis can be used to assess:

a company (its position in the market, commercial viability, etc) a method of sales distribution a product or brand a business idea a strategic option, such as entering a new market or launching a new product

a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource an investment opportunity

SWOT Analysis

RELIANCE COMMUNICATION LIMITED Strength Low Entry Cost Commission Structure Fast Activation Process Network Connectivity Data GPRS Weakness Branding Image Distribution problem Limited product portfolio- Only Mobile Lack of Competitive Strength Limited Budget

Opportunity Preference of GSM over CDMA New Specialist Application Rural Telephony New Market, Vertical, Horizontal Competitors` Vulnerabilities

Threat Political destabilization. New Entrants IT Development Market Demand Seasonality, Weather Effects



Customer Satisfaction Retailer Satisfaction Increase in Sale Sales Promotion Proper Distribution Channel





The approach and methodology that was followed in the compilation of this project report on Product Planning and Development" is described as follows:

Types of Research to be undertaken:

Among the different types of researches I have chosen Descriptive research for this project. I have gone to conduct this project base on Descriptive research technique because I want to test the significant level of the particular factors. Among two types of Descriptive research techniques I have gone for Cross-Sectional design because I have wanted to collect data from the sample of population element only for one time. From Cross-Sectional designs I have taken Single cross-sectional design to carry out my research.

Selection Of The Topic And Framing Of The Questionnaire:

The topic was selected so as to decide upon the path of our research related works associated with the project. First of all our task was to frame questionnaire for people to know their views about the perception of consumers in various investment avenues.


Collection of Data:

Observations and interactions are made to prepare the questionnaire and get them filled. The research was conducted and compiled by visiting various student of different institution of lucknow to recognize need of student segment and research is also conducted in rural area of lucknow and raibarrely .

a) Primary Data Collection Method:


(b) Secondary Data Collection method:

Specific mobile connection has been purchased and met the satisfaction

Information gathered from Different Sites of the companies.

The nature of the research is basically of two types.

Basic Research : Basic Research is that intended to expand the body of knowledge in a field or to provide knowledge for the others. Basic Research is generally for common purpose and Applied research is for specific

Applied Research : Applied Research is carried out for solving of a particular problem or for guiding a specific decision, and usually its results are private.

Here the nature of the research is basic. The sources for data collection are both primary and secondary data sources.

Techniques And Instruments Used

Questionnaires are prepared for accurate information. The questionnaires are filled by people of working or having their own business or self employed or others viz. students, house wives etc. Thus we got views of people belonging to diverse fields. Thus by the help of the questionnaire the study become more easy and reliable.

Interviews: Interviews were undergone through structured questionnaire and conversation

with people. The response of the people was quiet satisfying.

M.S.EXCEL: Microsoft Excel software was used for the analysis part of the survey done among the investors. Major findings, recommendations and conclusion were taken out with its help. Internet: Various informations were collected through internet and necessary information regarding the company through website of the organization.

Sample :
research process has been done in two different section of costumer



Sample size : 100 student 100 rural Population: Local population of student from different colleges and university Luck now university Intigiral university B.B.D college Ram Manoher Lohia university Ambalika Institute of Mgt & Technology Rural population from Bakshi-ka talab raiberelly


Survey method:
Among four types of survey methods I have chosen the appropriate one that suited my research objectives. I have chosen the personal survey techniques. From the personal techniques I have selected mall intercept technique. According to this technique I have needed to go directly to my sample unit and got the questionnaires filled. I have chosen Mall intercept survey technique because it has higher Flexibility for data collection, Diversity of questions, Response rate, and Social desirability. And also it is higher in Control of data collection environment and moderate Use of physical stimuli. 44

Scaling Method:
Since I have conducted descriptive research, I have chosen non-comparative scaling technique because I have wanted to measure the influence of each and every factor on the purchasing behaviors of the target market separately. Only by Non-comparative scaling technique it can be done. And among two types non-comparative technique I have used itemize technique and from three itemize techniques I have taken Likert scaling which range from 1 to 5 point scale. Because I have wanted to do my research based on five dimensions which have been strongly disagree, disagree, neutral, agree and strongly agree.

Questionnaire development:
First of all I have given the introduction. I have just introduced myself and the reasons why I am collecting data. Then I have given assurance that your information will be kept confidential. I have gone for screening and then I have prepared the body of the questionnaire. Lastly I make respondents profiles. Questionnaires have been structured questionnaires based on non comparative scales techniques.

Sampling Technique:
In case of my research my target population has been the students and the general people of the Lucknow and Raibarrely. The students and general people who are using the mobile connection or intended to purchase the mobile connection have been sample unit. I have conducted my research through non-probability sampling techniques and among nonprobability sampling techniques I have gone for convenience sampling technique. Most importantly as it is an academic research it lacks money and time. Thats why for administering this research, the sample size has been 100. Then I have carried out the research by myself very efficiently and accurately to come to an end with a solution of the marketing research problem statement.

Field work:
Field work is a general descriptive term for the collection of raw data. In the professional research, research firm use its own people or external people to collect data for the sample. Since it is an academic and individual research I myself have to go and collect the data from the respondents. I have gone to the people in the Ahmedabad city and get the questionnaires filled.

Limitations Of The Study:



1) The area selected is assumed to represent whole universe of Indian rural telecom market. 2) Data collected are assumed to be bias free from side of respondents, interviewer or any other mediaries. 3) Whole research and analysis part based on data collected is carried out underunbiased environment and without any influence of any factor which can lead to deviation in result.

Data Analysis (Methodology)

Sample Size : 200

Sample Frame : Sampling Method : Constraints : Sampling Error : Non-response Survey :

U.P E Circle Simple Random Sampling Time, No. of respondent, Biased opinion Response - 172 28 Questionnaire


The Above Research Report was Formulated as under:

Research : Descriptive Data Source : Primary & Secondary Research Instrument :Questionnaires Sample Size : 100 Sample Procedure : Simple Random Sampling


Sample Unit : Local Population of Lucknow Method of data collection : Structure




Secondary data provided the knowledge about company in term of facts and figures. It is a data which are already been collected by someone else. Websites




Primary data helped in the knowledge gathered from secondry sources . Primarydata are those which are collected a fresh and for first time It is original in nature

. The method adopted for it :

Questionnaiers 61


After the data are collected the term is the task of analyzing them . The analysis of data requires the no of closely related operations . Analysis work after tabulation is generally based the computation of various percentage cofficient etc by applying various well defined statistical formulae.

Finally the preparation of report as to be done according to the work done writing of report must be done within great care keeping in view the following.

The report should be written in concise and objective style in simple language. Charts and illustration in the main report should be used Calculated confidence limits must be mentioned and the various constraints experienced in conducting research operation may as be staled




Q 01. Currently which network are you using ?

Chart Title
17% 4% 8% 19% 10% idea rgsm vodafone airtel 20% 22% bsnl uninor docomo

Q.02 Are using more than one network?

Chart Title

43% 57% Yes No


Q 03.Which Is Your primary sim & how much do you spend on it mthly?

Chart Title
idea airtel vodafone bsnl rgsm docomo uninor





19% 21%


30 25 20 15 10 5 0 0-50 50-100 100-150 150-200 above 200 Series1


Q 04 what is the purpose of more than one sim?

Chart Title
7% 19% 32% GPRS SMS calling on same ntwk 38% 4% calling on other ntwk free talk time

Q5. What is your total monthly mobile usage of all networks put together?

Chart Title
26% 8% 15% 0-50 50-100 21% 30% 100-150 150-200 above 200



Q.6 If all the facilities you require are given to you by a single network, will you continue with more than one SIM or not? (a) Yes (b) No

Chart Title

no yes 80%

Q .7 What is your daily voice usage (minutes)?


Chart Title
2% 6% 48% 20% 0-1 min 1-5 min 5-10 min 24% 10-15 min above 15 min

Q.8 How many minutes do you call on same network (minutes)?

Chart Title
4% 40% 20% 9% 0-1 min 1-5 min 5-10 min 10-15 min 27% above 15 min

Q.09 What is your STD usage? (outgoing)


Chart Title
12% 16% 8% 28% 0-1 min 1-5 min 5-10 min 10-15 min 36% above 15 min

Q .10 Do you get STD incoming? (a) Yes (b) No

Chart Title

36% yes 64% no

Q .11 if yes then how many minutes daily or monthly ?


40 35 30 25 20 15 10 5 0 0-1 min 1-5 min 5-10 min 1`0-15 min above 15 min Series1

Q. 12 Are you a GPRS user? (a) Yes (b) No

Chart Title

37% Yes 63% No

Q .13 If yes what is your monthly usage?


Chart Title
12% 12% 18% 32% 0-100 mb 100-500 mb 500mb - 1gb 26% 1gb-2gb above 2gb

Q. 14 For what purpose you use GPRS?

Chart Title
social ntwk sites 14% 8% 22% 32% 24% mail on mobile internet on mobile internet on computer dwn-lodg ringtone/wallpaper etc

Q . 15 Do you use night calling on net (same network)? (a) Yes (b) No


Chart Title

44% 56% Yes No

Q. 16 If yes how many mins daily/monthly ___________ (mins)

30 25 20 15 10 5 0 1-15 min 15-30 min 30-1hr 1hr-2hr above 2 hr


Q.17 In which call you spent maximum amount?


Chart Title
2% 24% 26% local STD 12% 36% On-Net Off-Net ISD

Q.18 What is your daily SMS usage?

Chart Title
5% 32% 16% 0-1 sms 1-5 sms 22% 25% 5-10 sms 10-15 sms above 15




Finding and Recommendation

Idea cellulars is gradually- gradually big telecom player following stiff competition from airtel, Vodafone, and others .actually idea is exactly lies in between airtel, voda, bsnl, and aircell, docomo, uninor so idea has to adopt those marketing strategys which help idea to grow as well as. As per the study following the recommendation are : 1- Increase the customer base of the idea Cellular. 2- Provide better G.P.R.S. Services to the customer of idea.

3- Providing attractive night calling for the student segment. 4- Providing extra Talk Time in every Recharge. 5- Better S.T.D. Plans for Night Calling .