A

Term Paper

On

“A Study on Factors Influencing Consumer Preference Towards Mobile

Internet Service Providers with Reference to Surat City”

Prepared by

Rajan Makwana (17)

Gaurav Mor (24)
Dixita Solanki (58)
Krishna Tailor (59)
Vibha Vankar (62)

MBA (Semester-4)
(Section: B)

Subject
Management of Control System

Submitted to
Dr.Namrata Khatri
 DECLERATION

We hereby declared that we are the sole author of this project report and that
neither any part of this report nor the whole of the project report has been
submitted for a degree to any other university or Institution.

We declare that, to the best of my knowledge, my project report does not infringe
upon anyone’s copyright nor violate any proprietary rights and that any ideas,
techniques, quotations, or any other material from the work of other people
included in my project report, published or otherwise, are fully acknowledged in
accordance with the standard referencing practices.

We declare that this is a true copy of my project report, including any final
revisions, as approved by my thesis review committee.

DATE:
PLACE:

RAJAN MAKWANA
GAURAV MOR
KRISHNA TAILOR
VIBHA VANKAR
DIXITA SOLANKI

DBIM, VNSGU, SURAT

 INDEX

CHAPTER PAGE NO.

CHAPTER : 1 : INTRODUCTION

CHAPTER:2:RESEARCH METHEDOLOGY

CHAPTER : 3 : DATA ANALYSIS AND INTREPRETATION

CONCLUSION

QUESTIONNAIRE
 CHAPTER : 1 : INTRODUCTION
What is Internet Service?
Internet service provides a way for data to be transferred from Internet servers to your computer.
An Internet service provider is a company that provides access to the Internet. Most ISPs require
you to subscribe in order to use their services, but there are ways to connect to the Internet for
free. Some of the most common ways to connect to the Internet are dial-up, DSL, cable and
wireless services.

Internet Services allows us to access huge amount of information such as text, graphics, sound
and software over the internet. Following diagram shows the four different categories of
Internet Services.

Communication Services
There are various Communication Services available that offer exchange of information with
individuals or groups. The following table gives a brief introduction to these services:

S.N. Service Description

1 Electronic Mail
Used to send electronic message over the internet.

2 Telnet
Used to log on to a remote computer that is attached to internet.

3 Newsgroup
Offers a forum for people to discuss topics of common interests.
4 Internet Relay Chat (IRC)
Allows the people from all over the world to communicate in real time.

5 Mailing Lists
Used to organize group of internet users to share common information through e-
mail.

6 Internet Telephony (VoIP)

Allows the internet users to talk across internet to any PC equipped to receive the
call.

7 Instant Messaging
Offers real time chat between individuals and group of people. Eg. Yahoo
messenger, MSN messenger.

Information Retrieval Services

There exist several Information retrieval services offering easy access to information present on
the internet. The following table gives a brief introduction to these services:

S.N. Service Description

1 File Transfer Protocol (FTP)

Enable the users to transfer files.

2 Archie
It’s updated database of public FTP sites and their content. It helps
to search a file by its name.

3 Gopher
Used to search, retrieve, and display documents on remote sites.

4 Very Easy Rodent Oriented Netwide Index to Computer

Achieved (VERONICA)
VERONICA is gopher based resource. It allows access to the
information resource stored on gopher’s servers.
Web Services
Web services allow exchange of information between applications on the web. Using web
services, applications can easily interact with each other.
The web services are offered using concept of Utility Computing.

World Wide Web (WWW)

WWW is also known as W3. It offers a way to access documents spread over the several servers
over the internet. These documents may contain texts, graphics, audio, video, hyperlinks. The
hyperlinks allow the users to navigate between the documents.

Video Conferencing
Video conferencing or Video teleconferencing is a method of communicating by two-way video
and audio transmission with help of telecommunication technologies.

Modes of Video Conferencing

POINT-TO-POINT
This mode of conferencing connects two locations only.

MULTI-POINT
This mode of conferencing connects more than two locations through Multi-point Control
Unit (MCU).
History

The first generation of mobile communications started with the Advanced Mobile Phone
Systems (AMPS), which was an analogue system. AMPS can be thought of as 1G. From there,
we progressed to GSM and CDMA-one (pretty much regarded as 2G) and then to UMTS and
EV-DO, which are 3G technologies. The latest technologies that are regarded as candidates for
4G are LTE (from the 3GPP group) and 802.16m (from the IEEE).

Technology 1G 2G 2.5G 3G 4G
Design Began 1970 1980 1985 1990 2000
Implementati
on 1984 1991 1999 2002 2010
Service Analog Digital Higher Higher Higher
Voice, voice,Short Capacity, Capacity,broadba Capacity,completely
synchron Messages Packetize nd data up to 2 IP-
-ous d data Mbps Oriented,multimedia,d
data to ata to hundreds Of
9.6 kbps megabits
Standard AMPS, TDMA CDMA GSMr PDC EDGE
TAGS, GPRS
INMT,
etc.
 Data Data Data Data Data Bandwidth Data Bandwidth 1.9
Bandwidth Bandwidt Bandwidth Bandwidt 1.9 kbps 14.4 kbps 14.4 kbps 384
1.9 kbps 14.4 h 1.9 1.9 kbps h 1.9 kbps 384 kbps 2 kbps 2 Mbps 200
kbps 384 kbps 14.4 14.4 kbps kbps 14.4 Mbps 200 Mbps Mbps
kbps 2 Mbps kbps 384 384 kbps 2 kbps 384
200 Mbps kbps 2 Mbps 200 kbps 2
Mbps Mbps Mbps
200 200
Mbps Mbps
Multiplexing CDMA Multiplexi CDMA Multiplexing CDMA TDMAr
FDMA TDMAr ng FDMA TDMAr FDMA TDMA CDMA CDMA
TDMA CDMA TDMA CDMA CDMA
CDMA CDMA
CDMA CDMA
core Network packet core packet core Network packet network Packet
PSTN PSTN network Network network PSTN PSTN network internet
P3TK Packet PSTN Packet P3TK
network PSTN network
internet P3TK internet

4G service in India

Kolkata, April 10, 2012: Bharti Airtel ("Airtel"), a leading global telecom services provider with
operations in 20 countries across Asia and Africa, today launched India's first 4G service in
Kolkata. Airtel has launched the service on a state-of-the-art network based on TD-LTE, making
India one of the first countries in the world to commercially deploy this cutting-edge technology.
With this launch, India joins the most advanced telecom markets in the world and marks the
beginning of a new chapter in the country's telecom success story.

Technologies challenges
→ Regulatory and Standardization issues.
→ Business models.
→ Flexible spectrum allocation and sharing between operators.
→ User preference profiles.
→ Inter-system handover mechanisms and criteria.
→ Software downloads mechanisms.
Advantage

→ 4G are very easy to install and maintain.

→ Due to higher security, service provider or operators gets more profit and popularity and
advancement of the new technology also improved.
→ Global or national wide expansion of 4G services.
→ The ability to obtain a larger customer base due to ubiquitous services.
→ The ability to take advantage of the growing popularity of Smart Phone banking Enhances
reputation of the operators by providing fast and secured services to its customer.
→ High quality of services.

Disadvantage
→ New frequency requires added components in the service provider’s tower.
→ 4G does not offer voice services through mobile phone rather than it uses voice over internet
protocol (VoIP).
→ Voice over LTE (VoLTE) new services of VoIP in 4G technology, is not widespread or it’s in
infant stage.
→ Portability and file clearing in 4G technology is a lengthy process, which is very costly, not
affordable by ordinary customer.
→ Requirement of high memory and processors at service provider’s servers.
→ Lack of technology support.
→ Initial investment in technology will be expensive.

Introduction of India Telecommunication Industry

India is currently the world’s second-largest telecommunications market with a subscriber

base of 1.05 billion and has registered strong growth in the past decade and half. The Indian
mobile economy is growing rapidly and will contribute substantially to India’s Gross Domestic
Product (GDP), according to report prepared by GSM Association (GSMA) in collaboration with
the Boston Consulting Group (BCG). The country is the fourth largest app economy in the
world. The liberal and reformist policies of the Government of India have been instrumental
along with strong consumer demand in the rapid growth in the Indian telecom sector.
PESTEL ANALYSIS

Political Factor

India is politically very unstable, whenever the government changes, its policies are also changed
and that hampers the functioning of every business sector, so is the telecom sector affected.

If any business enterprise wants to expand its business say for example outside the country it has
to check out the political relations with that country depending upon the political relations with
that country that will affect the operations of the business in that country also.

→National Telecom Policy 1994

→New Telecom Policy 1999

→Telecom Regulatory Authority of India (TRAI)

The entry of private service providers brought with it the inevitable need for independent
regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect
from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of
India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom
services which were earlier vested in the Central Government.

Economic Factor

→Economy situation GDP -$2.439 trillion (2017) GDP growth 6.7% Inflation 4.88% (Nov

2017)

The Indian economy is growing at faster rate , and most important the population of India the
mostly youth , so entering in the Indian market will be a good sign of investment , the
government of India is putting good effort in encouraging the FDI in the country by providing
tax benefits.

→Economy Trends

The continuing dominance of youth - Youngsters are different from oldies in a hundred ways,
and anyone can make a long list of the differences. How this will affect Indian society cannot
really be predicted, except to say that it will be more mobile (think more migrants), and more
 volatile (stronger responses to frustrations-- one manifestation being the spread of extremist Left
ideology in some 60 districts).

Social Factor

Age distribution: The telecom industry in India like Vodafone, Airtel, Idea etc are selling their
products according to various age distribution basis. They make the schemes available to
youngsters with low call rates and messages scheme

→Change in tastes and preferences: As we know price war is going on so the customer can shift
over to next brand which cost less to him so the company has to go according to the needs and
preferences of the customer.

→Social welfare: Many companies are doing social welfare and taking initiatives for that we can
examine the latest e.g. of idea cellular co. that it collected money for the victims of 26/11 attack
by the subscribers of idea when any call was made.

→Consumer buying patterns - The buying behaviour of the customers in India is changing, the
customers are shifting to buy the new products and service according the offers and schemes
available to them.

Technological Factor

→ Replacement Technology

Technology in India is replacing very fast with change in time, as the economy is growing the
technology is also, so the company bringing new technology will be very successful.

→ Research funding

Govt is providing various tax benefits and subsidies to the players which are in research and
development fields of telecom sector , the govt has also open various research institutes where
the research is done with the collaboration of various private research companies .
Telecommunications companies with 3G services will no longer be allowed to avail of tax breaks
found under Section 80 IA of the Income Tax Act. The tax breaks under Section 80 IA are given
to companies building infrastructure. In the telecommunications sector, companies can choose a
10 year period out of the first 15 years of operations to qualify for the tax benefits. Companies
can choose to avail of a 100 percent exemption on taxable profit in its first five years and a 30
percent exemption for the next five years.

Legal Factor

A separate Department of Telecommunications (DoT) was established in 1985, under

the Ministry of Communications and two supposedly public sector undertakings (PSUs)(VSNL
and MTNL) were created to expand, develop, and manage crucial segments of the Indian
telecommunications system.

The National Telecom Policy (NTP) of 1994 provided the basis for liberalizing the
telecommunication market. It recognized the importance of liberalization and private sector
participation as key elements of economic development. With the entry of private sector in the
provision of telecommunication services a need was felt to have an independent regulatory body.
The above requirement was indicated in the guidelines issued for entry of private sector in basic
telecom service. Accordingly, Telecom Regulatory Authority of India (TRAI) was established in
the year 1997 in pursuance of TRAI (Ordinance) 1997, which was later replaced by an Act of
Parliament, to regulate the telecommunication services. Legal framework of telecom in India is
supported by TRAI (Telecom Regulatory Authority of India), having purpose of Independent
regulator to control telecom industry.

India continues to be one of the fastest growing telecom markets in the world.
Reforms introduced by successive Indian governments over the last decade have dramatically
changed the nature of telecommunications in the country.

Ecological Factor

In present scenario, telecommunication services are widely used all over

the world. People extensively use telephone services, internet services and many
more. Initially, there were wired phones which are not hazardous to our health and
also to the environment. Now, more than 80 million people use pocket-sized cellular
phones as a principal form of communication and many researches proved that these
smaller phones, with their smaller antenna, increase exposure to microwaves and pose
a potential health threat to the frequent user.
 Wireless Technology Research (WTR), formed by the Cellular
Telecommunications Industry Association (CTIA) to research the effects of cellular
phones, and has indicated several health problems traceable to radiation exposure due
to phone use like many cases of people suffering from brain tumour, memory loss,
and genetic damage in human blood. A recent study indicated that the number of
immune cancer cells doubled in mice exposed to microwaves.

Major Companies
1. Airtel

Customer Base (in millions): 269.7

Total Revenue (Million): Rs 984933

Net Income (Million): Rs 47455

Airtel is an Indian Telecommunications company with its headquarters in

New Delhi, India. Bharti Airtel was established on 7th July, 1995 as a public limited
company. The current Chairman of the Company is Mr. Sunil Bharti Mittal.

Bharti Airtel has operations in approximately 20 countries across South Asia

and Africa, and has a strong presence in the industry. The services provided include –
GSM, 3G, 4G LTE, fixed line broadband and voice services, enterprise services.

2. Idea Cellular

Customer Base (in millions): 185.2

Total Revenue (Million): Rs 369313

Net Income (Million): Rs 4875

Idea Cellular is an Indian mobile network operator with its headquarters in Mumbai,
Maharashtra, India.The company was founded in 1995 and it offers the following
services – 2G, 3G and 4G mobile services. Amid its commencement in 1995, Aditya
Birla Group, Tata Group and AT&T Wireless each held 33% value in the
organization.
On 20 March 2017, Idea and Vodafone India reported that their particular sheets had
endorsed a merger of the two organizations. The merger excluded Vodafone's 42%
stake in Indus Towers Ltd. The merger created the biggest telecom organization in
India by supporters and by income.

3. Vodafone

Customer Base (in millions): 183.8

Total Revenue (Million): Rs 356742.1

Net Income (Million): Rs 37917.82

Vodafone India has its headquarters in Mumbai, Maharashtra, India, and The
company commenced operations in India in 2007.

The most renowned services offered by the company are – 3G services,4G

services and the M-Pesa service. Curently, Mr. Vivek Badrinath is the CEO AMAP.
Vodafone India is a 100% subsidiary of Vodafone Group.

4. Reliance Communications

Customer Base (in millions): 89.8

Total Revenue (Million): Rs213439

Net Income (Million): Rs-2612

Reliance Communications is the lead organization of the Reliance Group and India's
preeminent and genuinely incorporated media communications specialist
organization. The organization was established in 2002 and is headquartered at
Mumbai, Maharashtra, India.

The Company has a client base of over 118 million. Reliance

Communications corporate customer base incorporates more than 39,000 Indian and
multinational companies including little and medium ventures and more than 290
worldwide, provincial and local bearers.