Sie sind auf Seite 1von 54

1.

0 INTRODUCTION World telecom industry is an uprising industry, proceeding towards a goal of achieving Two third of the world's telecom connections. Over the past few years information and Communications technology has changed in a dramatic manner and as a result of that World telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry. The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone, Verizon, SBC

Communications, Bell South, and Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc.

Economical aspect of telecommunication industry: World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet. Present market scenario of world telecom industry: Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest.

INDUSTRY PROFILE
The Indian telecommunications industry is one of the fastest growing in the world and India is projected to achieve the customer base of 1 billion, i.e., 84% of population by 2012. India added 113.26 million new customers in 2008, the largest globally. In fact, in April 2008, India had already overtaken the US as the second largest wireless market. To put this growth into perspective, the countrys cellular base witnessed more than 50 per cent growth in 2009-

1|Page

10, with an average 20.31 million added every month. According to the Telecom Regulatory Authority of India (TRAI), the total number of telephone connections (mobile as well as fixed) had touched 617.53 million by May 2010, taking the telecom penetration to over 50 per cent. This means that one out of every two Indians has a telephone connection, and telecom companies expect this pace of growth to continue in 2011 as well. "We are extremely bullish that the growth will continue in 2011. This year, the number of additions will be in excess of 180 million," according to T.V. Ramachandran , Director General, Cellular Operators Association of India (COAI), an industry body that represents all Global System for Mobile communications (GSM) players in India. According to CRISIL Research estimates, eight infrastructure sectors, which include the telecom sector, are expected to draw more than US$ $10 billion by 2009 while the mobile services and basic telephone services attracted foreign direct investment (FDI) worth US$ 2,554 million during 2009-10. The cumulative flow of FDI in the sector during April 2000 and March 2010 is US$ 8,930.61 million.

1.1 GLOBAL SCENARIO Until the 1980s the world telecommunications systems had a simply administrative structure. The United States telephone service was supplied by a regulated monopoly, American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by the Western Union Corporation. In almost all other countries both services were the monopolies of government agencies known as PTTs (for Post, Telephone, and Telegraph). In the United States beginning in 1983, AT&T agreed in a court settlement to divest itself of the local operating companies that provided basic telephonic service. They remained regulated local monopolies, grouped together into eight regional companies.

AT&T now offers long distance service in competition with half a dozen major and many minor competitors while retaining ownership of a subsidiary that produces telephonic equipment, computers and other electronic devices. During the same period Great Britains national telephone company was sold to private investors as was Japans NTT telephone monopoly. For telegraphy and data transmission, Western Union was joined by other major companies, while many multinational firms formed their own telecommunications services 2|Page

that link offices scattered throughout the world. New technology also brought continuing changes in the providers of telecommunication. Private companies such as Comsat in the United States were organized to provide satellite communication links within the country. Around the world we are witnessing remarkable changes to the telecoms environment. After years of debate, structural separation is now taking place in many parts of the world including Hong Kong, New Zealand, Singapore and some European markets. Structural separation or at least full-blown operational separation is required to advance the entire industry and to create new business opportunities and innovations which will benefit our society, our economy and ultimately our industry. The focus is also shifting away from broadband to what it can actually achieve. Next Generation Telecommunications better describes this new environment and is essential for the emerging digital economy. Important services that depend on NGT include telehealth, e-education, e-business, digital media, e-government and environmental applications such as smart utility meters. In order to meet this burgeoning consumer demand for NGT applications, we are seeing increasing investment in All-IP Next Generation Networks and fiber networks. A proper inventory of national infrastructure assets is required if we want to establish an efficient and economically viable national broadband structure for these services. In the developing markets, next generations telecoms will take the form of wireless NGNs (ie, LTE/WiMAX). These are some of the elements of the broader ICT revolution that is unfolding before our very eyes. We are right in the midst of the transition from old communications structures (mainly one-way streets) to new structures that are fully-interactive and video-based. One of the drivers behind the industry changes are the declining revenues experienced by the Telcos in their traditional markets. Over the past 10 years or so, fixed-line operators have been affected by deregulation, a severe industry downturn, declining prices and major inroads by mobile services. In addition, people are drifting to other forms of communication, such as email, online chat, and mobile text messaging instead of the traditional phone.

This has also led to an increased need for bandwidth, which in turn has revived the submarine cable sector. In recent times there have been many cable build-out announcements around the world, and some major systems are again being constructed. Over 25 systems are expected to be built over the next two to three years and network upgrades are also on the agenda for some existing systems. 3|Page

It is clear that the mobile industry is also undergoing profound changes. The saturated developed markets are forcing the industry to find new revenue streams and we are now seeing other organizations such as media companies, content providers, Internet media companies and private equity companies becoming involved in this market. For the time being however, voice will remain the killer application for mobile with some data services included as support services and niche market services. 4G (ie, WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the majority of mobile revenues will come from data. With the Internet economy, digital media and other telecommunications activities becoming further established, the need for modern and efficient infrastructure is becoming more critical.

1.2 INDIAN OVERVIEW


Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world with an addition of 9- 10 million monthly subscribers. The Teledensity of the Country has increased from 18% in 2006 to 52% in 2009, showing a stupendous annual growth of about 50%, one of the highest in any sector of the Indian Economy. The Department of Telecommunications has been able to provide state of the art world -class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. India has emerged as a major base for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. As a result common man today has access to this most needed facility. The reform measures coupled with the proactive policies of the Department of Telecommunications have resulted in an unprecedented growth of the telecom sector. The thrust areas presently are: 1. Building a modern and efficient infrastructure ensuring greater competitive environment. 2. With equal opportunities and level playing field for all stakeholders. 3. Strengthening research and development for manufacturing, value added services. 4|Page

4. Efficient and transparent spectrum management 5. To accelerate broadband penetration 6. Universal service to all uncovered areas including rural areas. 7. Enabling Indian telecom companies to become global players.

Recent things to watch in Indian telecom sector are:

1. 3G and BWA auctions 2. MVNO 3. Mobile Number Portability 4. New Policy for Value Added Services 5. Market dynamics once the recently licensed new telecom operators start rolling out 6. Services. 7. Increased thrust on telecom equipment manufacturing and exports. 8. Reduction in Mobile Termination Charges as the cost per line has substantially reduced. 9. Due to technological advancement and increase in traffic.

India's telecom sector has shown massive upsurge in the recent years in all respects of industrial growth. From the status of state monopoly with very limited growth, it has grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the people of India. This changing phase was possible with the economic development that followed the process of structuring the economy in the capitalistic pattern. Removal of restrictions on foreign capital investment and industrial de-licensing resulted in fast growth of this sector. At present the country's telecom industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone companies were present, fixed landlines were popular in most parts of the country, with government of India setting up the Telecom Regulatory Authority of India, and measures to allow new players country, the featured products in the segment came in to prominence. Today the industry offers services such as fixed landlines, WLL, GSM mobiles, CDMA and IP services to customers. Increasing competition among players allowed the prices drastically down by making the mobile facility accessible to the urban middle class population, and to a great extend in the rural areas. Even for small shopkeepers and factory workers a phone connection is not an unreachable luxury. Major players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchison Essar, BPL,

5|Page

Tata, Idea, etc. With the growth of telecom services, telecom equipment and accessories manufacturing has also grown in a big way.

Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers.

GROWTH IN SEGMENTS
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. Fixed line capex is projected to be US$ 3.2 billion, and mobile capex is likely to touch US$ 9.4 billion. Further, according to a report by Gartner Inc., India is likely to remain the world's second largest wireless market after China in terms of mobile connections. According to recent data released by the COAI, Indian telecom operators added a total of 178.25 million (Jan-Dec 2009). Further, the total wireless subscriber base stood at 617.53 million (May 2010) from 346.89 million at the end of December 20 08. The overall cellular services revenue in India is projected to grow at a CAGR of 18 percent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to 84 per cent by 2012 from 19.8 per cent in 2007.In WiMax, India is slated to become the largest WiMAX market in the AsiaPacific by 2013. A recent study sees India's WiMAX subscriber base hitting 14 million by 2013 and growing annually at nearly 130 per cent. And investments in WiMAX ventures are slated to top US$ 500 million in India, according to a report by US-based research and consulting firm, Strategy Analytics.

6|Page

MAJOR PLAYERS IN THE TELECOM INDUSTRY

BHARTI AIRTEL Bharti Airtel is one of the top most companies in the telecom sector in India and is under the Bharti Enterprises Group. Airtel Bharti has been ranked as the best performance company in the whole world by the Business Week magazine in 2007.The Company Bharti Airtel is in India the biggest integrated and also the 1st telephone service provider in the private sector, which has footprint in around 23 telecom circles. Bharti Airtel Limited has been since its very beginning using the latest technology and thus the company has paved the way for the telecom sector in India with its world-class services and products. This has helped Bharti Airtel Company to grow for the number of its customers has increased very rapidly over the years Airtel comes to you from Bharti Airtel Limited, one of Asias leading integrated telecom services providers with operations in India, Sri Lanka and Bangladesh. Bharti Airtel since its inception, has been at the forefront of technology and has pioneered several innovations in the telecom sector.

The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 95 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos.

BHARAT SANCHAR NIGAM LIMITED (BSNL) Bharat Sanchar Nigam Limited popularly also known as BSNL is an India-based telecommunication service providing company. BSNL operates under the guardianship of the Ministry of Communication, Government of India and Department of Telecommunication, Government of India. Bharat Sanchar Nigam Limited operates according to the telecommunication policy laid as per the Indian Telecommunication Acts and Rules. Bharat Sanchar Nigam Limited was established on 1.10.2000, as a result of the revamping of the 7|Page

erstwhile Department of Telecommunication, Government of India. Bharat Sanchar Nigam Limited is world's seventh largest telecommunications company, with a huge bouquet of telecommunications services. The services offered by BSNL includes wire line, CDMA mobile, GSM Mobile, Internet, broadband, carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. It is one of the fast growing and most profitable organization of Government of India

MAHANAGAR TELEPHONE NIGAM LIMITED (MTNL) Mahanagar Telephone Nigam Limited popularly known as MTNL is an India-based telecommunication service providing company. MTNL operates under the guardianship of the Ministry of Communication, Government of India and Department of

Telecommunication, Government of India. Mahanagar Telephone Nigam Limited operates according to the telecommunication policy laid as per the Indian Telecommunication Acts and Rules. MTNL enjoyed virtual market monopoly till the end of the year 2000.

VODAFONE ESSAR Vodafone Essar started its operations in India in 1994 and is under the Vodafone Group. The company Vodafone Essar Limited has become one of the leading companies in the telecom sector in India due to its high standard of services that it provides to its customers. The company Vodafone Essar has its operations in all the 23 telecom circles of the country. The company offers both postpaid and prepaid GSM cellular mobile coverage all across India and its hold is especially strong in the metropolitan cities. The company Vodafone Essar Limited provides services like 2G, which are based on 1800Mhz and 900Mhz GSM digital technology. The company Vodafone Essar also offers voice and data services.

TATA TELESERVICES Tata Teleservices was set up in 1996 and is under the Tata Group, which is a group worth around US$ 22 billion and has more than 96 companies. The company Tata Teleservices Limited has been formed with an investment of around US$ 7.5 billion. The company Tata Teleservices has helped the Tata Group to have a strong presence in the 8|Page

telecom sector in India and the chairman of the company is Mr. Ratan N. Tata. The company was the 1st company in the country to launch the CDMA mobile services within the state of Andhra Pradesh. Tata Teleservices Limited offers various kinds of telephone services to its customers such as wireless desktop phones, wire line services, mobile services, and public booth telephony. Further the company also offers other services like value added services such as roaming, group calling, voice portal, data cards, Internet post paid services, 3- way conferencing, enterprise services, USB modem, Wi- Fi Internet, and calling card services.

IDEA CELLULAR

Idea Cellular started its operations in 1995 and is under the Aditya Birla Group, which holds 98.3% stake in the company. The Company Idea Cellular Limited is one of the telephony wireless companies that functions in many states in India. The Company Idea Cellular is the leading mobile services GSM operator in the country. The Company Idea Cellular Limited is the only cellular operator in India to launch EDGE and GPRS. The chairman of the company is Mr. Kumar Mangalam Birla and the managing director is Mr. Sanjeev Aga. Idea Cellular Limited has the license to provide services in 11 telecom circles in the country. The telecom circles where the Company Idea Cellular has operations are Goa, Maharashtra, Andhra- Pradesh, Chattisgarh, Kerala, Tamilnadu, Haryana, Uttaranchal, Gujarat, Delhi, UP- West, and Madhya Pradesh. The company's footprint at present covers around 45% of the population of India and more than 50% of the telecom market.

AIRCEL It offers both prepaid and post-paid GSM cellular phone coverage throughout India. Aircel is a joint venture between Maxis Communications of Malaysia and Apollo

Hospital Enterprise Ltd of India. UTSB has a 74% stake in Aircel and the remaining 26% is with Apollo Hospitals. It is Indias fifth largest GSM mobile service provider with a subscriber base of over 27.7 million. It has a market share of 12.8% among the GSM operators in the country. As on date, Aircel is present in 18 of the total 23 telecom circlesAircel has won many awards for its services. Aircel was honored at the World Brand Congress 2009 with three awards, Brand Leadership in Telecom, Marketing Campaign &

9|Page

Marketing Professional of the Year. Aircel got the highest rating for overall customer satisfaction and network quality in 2006 by Voice and Data.

RELIANCE COMMUNICATIONS Reliance Communications started its operations in 1999 and is under the Anil Dhirubhai Ambani Group (ADAG) of companies. The company Reliance Communications Limited has been set up with the aim of providing communication and information to people at affordable price. The company Reliance Communications business includes the whole range of services related to the telecom sector such as fixed line telephones and mobiles. The business of the company also includes services like broadband, data services, international and national long distance services. Reliance Communications also provides to its customers a wide range of value added applications and services. The company is able to provide such a vast range of services to its customers for it has a high- capacity, reliable, convergent, and integrated digital network.

MARKET SHARE OF TELECOM OPERATORS Indian market is not only the most attractive but also the most competitive with over seven operators in each circle and another five new operators likely to start operations in the near future. Nowhere in the world does any country have so many carriers. The dominant players are Airtel, Reliance, Vodafone, BSNL (state owned), Idea, Aircel and Tata. Reliance and Tata offer CDMA technology while all the other players are in the GSM space. GSM has a 75% share of subscribers and now even Reliance and Tata have either launched or in the process of launching nation-wide GSM services. GSM operators Vodafone Essar, Idea Cellular and Aircel have increased their revenue market share by about 1% over the past 12 months despite the entry of several new players and a brutal tariff war. An analysis of the FY10 revenue figures of all service providers in the country reveals that the only incumbents who lost out during the period are Bharti Airtel, the countrys largest telco by sales and customers, and state-owned BSNL & MTNL. Bhartis revenue share slid by 1.2%, while that of MTNL and BSNL taken together dipped 2.5%.

10 | P a g e

VALUE-ADDED SERVICES MARKET Mobile value added services include text or SMS, menu-based services, downloading of music or ring tones, mobile TV, videos and sophisticated m-commerce applications. According to the Economic Survey 2009-10, prior to 2008 a majority of VAS revenue was attributed to SMS. But with greater penetration of new services, availability of relatively inexpensive, feature-rich handsets and consumer education, value-added services other than SMS are gaining importance. It is expected that over the next few years non-SMS services will become a dominant contributor to VAS revenue. Currently, mobile value-added services (MVAS) in India accounts for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010. In a bid to increase revenue from add-on services, India's top two mobile firms, Bharti Airtel Limited and Reliance Communications both plan to launch online mobile applications stores. Bharti Airtel will provide more than 1,250 applications across 25 categories including games, books and social networking on its applications store. Reliance Communications first version of its applications store would go live for GSM customers by the end of February 2010, and by the end of March 2010 an expanded version would be available to its code division multiple access (CDMA) customers as well. The graph indicates the SMS volume growth. The graph depicts that the SMS Volume is increasing at a very fast rate. It is estimated that the SMS volumes will reach 180 billion in 2010. It is estimated that the SMS volume is going to increase by 40 billion for the current year.

DEPARTMENT OF TELECOMMUNICATION (DOT)


The Department of Telecommunications is part of the Ministry of Communications and Information Technology in the executive branch of the India. Telecom services have been recognized the world-over as an important tool for socio-economic development for a nation and hence telecom infrastructure is treated as a crucial factor to realize the socio economic objectives in India. Accordingly, the Department of Telecom has been formulating 11 | P a g e

developmental policies for the accelerated growth of the telecommunication services. The Department is also responsible for grant of licenses for various telecom services like Unified Access Service Internet and VSAT service.

The Department is also responsible for frequency management in the field of radio communication in close coordination with the international bodies. It also enforces wireless regulatory measures by monitoring wireless transmission of all users in the coun try. The major objectives of DOT are Policy, Licensing and Coordination matters relating to telegraphs, telephones, wireless, data, facsimile and telematic services and other like forms of communications, International cooperation in matters connected with telecommunications including matters relating to all international bodies dealing with telecommunications such as International Telecommunication Union (ITU), its Radio Regulation Board (RRB), Radio Communication Sector (ITU-R), Telecommunication Standardization Sector (ITU-T), Development Sector (ITU-D), International Telecommunication Satellite Organization (INTELSAT), International Mobile Satellite Organization (INMARSAT), Asia Pacific Telecommunication (APT).

Its objectives also include Promotion of standardization, research and development in telecommunications, Promotion of private investment in Telecommunications and also financial assistance for the furtherance of research and study in telecommunications technology and for building up adequately trained.

1.4 COMPANY PROFILE


The Late Dhirubhai Ambani dreamt of a digital India an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built Indias largest private sector company virtually from scratch, had stated as early as 1999: Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility. It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started 12 | P a g e

laying 60,000 route kilometers of a pan-India fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life.

About Sh. Dhirubhai Ambani

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which 13 | P a g e

dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hardearned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise. Throughout this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families.

VISION
We will leverage our strengths to execute complex global-scale projects to facilitate leadingedge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.

INDIAS LEADING INTEGRATED TELECOM COMPANY

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is Indias leading integrated telecommunication company with over 77 million customers. Our business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Our constant endeavour is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve. Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambanis 70th birthday, was among the initial initiatives of Reliance 14 | P a g e

Communications. It marked the auspicious beginning of Dhirubhais dream of ushering in a digital revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. We endeavor to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society. Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance ADA Groups flagship company, Reliance Communications, is India's largest private sector information and Communications Company, with over 77 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wire line), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies Reliance Capital and Reliance Infrastructure are widely acknowledged as the market leaders in their respective areas of operation .

15 | P a g e

16 | P a g e

CHAIRMAN'S PROFILE

Anil D. Ambani

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D. Ambani,48, is the chairman of all the listed companies of the Reliance ADA Group, namely Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), Indias largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the companys management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of:
y y y y

Wharton Board of Overseers, The Wharton School, USA Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmedabad Board of Governors Indian Institute of Technology, Kanpur

17 | P a g e

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of Indias Parliament a position he chose to resign voluntarily on March 25, 2006.

Awards and Achievements:

Conferred the CEO of the Year 2004 in the Platts Global Energy Awards

Rated as one of Indias Most Admired CEOs for the sixth consecutive year in the Business Barons TNS Mode opinion poll, 2004

Conferred The Entrepreneur of the Decade Award by the Bombay Management Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001

Selected by Asia week magazine for its list of Leaders of the Millennium in Business and Finance and was introduced as the only new hero in Business and Finance from India, June 1999.

1.6 SCOPE OF THE STUDY

The scope of the study is limited to the post paid services offered. Study objective is to examine the Customer Satisfaction along with the various factors which play their part in customer buying behaviour and the major dissatisfaction areas for the customers. The study considered the urban area of Coimbatore city. The sample under consideration consisted of the existing post paid customers.

18 | P a g e

1.7 SIGNIFICANCE OF THE STUDY


The project I chose was a study on customer preference on post-paid connection in telecom industry in Coimbatore products. The title is very much significant considering the present global scenario. The customer preference level is the basic requirement for a company to sell its products in the market because if the customers are not aware of the products, there would be no sale. Along with the customer preference, the companies have to keep a regular check on the satisfaction level of its customers to retain them. The survey helps to find out the loop holes is the area of service being offered by the company. Identifying those areas would help the company to minimize them and then they can go for increasing its customers base.

1.8 OBJECTIVES:
y

Overall customer preference of the Post-paid connection in the Indian Telecom Industry in Coimbatore

To understand the various attributes that lead to customer satisfaction in the Indian Telecom Industry

The result is used to provide suggestions to improve the service of the Post-paid mobile operators.

19 | P a g e

2.0 LITERATURE REVIEW

Cygnus Business Consulting & Research Pvt. Ltd. Performance Analysis of Companies has analyzed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. With almost 5-6 million subscribers are being added every month. The country is witnessing wild momentum in the telecom industry; the Indian telecom industry is expected to maintain the same growth.

Growth of GSM Vs CDMA GSM segment consist of major players like Airtel, Vodafone, Idea and Bsnl. Where as in CDMA segments major players are Reliance and Tata. YEAR GSM subscribers (million) 3.1 5.05 10.5 22.0 37.4 58.5 105.4 180.0 GSM Annual CDMA growth subscribers (million ) 94% -76% -91% 0.8 110% 6.4 70% 10.9 57% 19.1 80% 44.2 71% 85.0 CDMA Annual growth ---700% 70% 75% 131% 92%

2000 2001 2002 2003 2004 2005 2006 2007

Internet service providers in India, Rao (2000), provide a broad view of the role of an Internet service provider (ISP) in a nascent market of India. Building local content, foreknowledge of new Internet technologies, connecting issues,

competitiveness, etc. would help in their sustainability.

The role of technology in the emergence of the information society in India, Singh (2005), describes the role that information and communication technologies

20 | P a g e

are playing for Indian society to educate them formally or informally which is ultimately helping India to emerge as an information society.
y

T.H. Chowdary (1999) discusses how Telecom reform, or demonopolization, in India has been bungled. Shaped by legislation dating back to the colonial era and post Second World War socialist policies, by the mid-1980s India realized that its poor telecommunications infrastructure and service needed reform. At the heart of the problem lay the monopoly by the governments Department of Telecommunications (DOT) in equipment, networks and services. The National Telecom Policy 1994 spelt out decent objectives for reform but tragically its implementation was entrusted to the DOT. This created an untenable situation in which the DOT became policymaker, licenser, regulator, operator and also arbitrator in disputes between itself and licensed competitors. He discusses the question: Why did India get it so wrong? and What India should do now?

Thomas (2007), in his article describes the contribution made by telecommunications in India by the state and civil society to public service, this article aims to identify the states initial reluctance to recognize telecommunications provision as a basic need as against the robust tradition of public service aligned to the postal services and finds hope in the renewal of public service telecommunications via the Right to Information movement. The article follows the methodology of studying the history of telecommunications approach that is conversant with the political economy tradition. It uses archival sources, personal correspondence, and published information as its research material. The findings of the paper suggests that public service in telecommunication is a relatively new concept in the annals of Indian telecommunications and that a deregulated environment along with the Right to Information movement holds significant hope for making public service

telecommunications a real alternative. The article provides a reflexive, critical account of public service telecommunications in India and suggests that it can be strengthened by learning gained from the continual renewal of public service ideals and action by the postal services and a people-based demand model linked to the Right to Information Movement. All studies done by the researcher suggests that the right to information movement has contributed to the revitalization of participatory democracy in India and to a strengthening of public service telecommunications. 21 | P a g e

3.0 RESEARCH METHODOLOGY

Methodology is an essential aspect of any project or research. It enables the researches look at the problem in a systematic, meaningful and orderly way. Methodology comprises the sources of data, selection of data, various designs and techniques used for analyzing the data.

3.1 Collection of data The primary data are collected through survey method. Survey method is undertaken to find the customer satisfaction and opinion. A survey was conducted among the people of Coimbatore City by the aid of well structured questionnaire. The population for the study consists of people who are using prepaid cell phones in the city. The sampling unit for the study is 200 and it includes male and female users from different occupation, age and areas in Coimbatore. The sampling size was restricted to 200 because of the time constrains. Here, convenient sampling technique has been adopted for collecting the primary data.

3.2 Statistical tools For analyzing the data, statistical tables and percentages were used.

3.3 Limitations
y

The study was restricted to only those clients who were related to postpaid mobile users.

y y

The study was confined within specific regions of Coimbatore city only. The sample size was limited so the results obtained from the study may not be generalized for the whole population.

The time period of the study was not sufficient to measure the consumers response effectively and reach to a more valid conclusion.

There are possibilities of personal bias also.

22 | P a g e

4.0 ANAL

AND INTE

ETATION

4.1) LOCATION:Location No of Respondents Percentage

URB N SEM URB N RUR L TOTAL INFERENCE:


y y y

64 24 12 100

64% 24% 12% 100%

64% of the respondents are Urban. 24% of the respondents are Semi urban. 12% of the respondents are Rural.

RURAL, 12%

SEMI-URBAN, 24%

URBAN, 64%

Figure 1: Location of the Respondents

23 | P a g e

4.2) GENDE :-

Gender MALE FEMALE TOTAL

No of Respondents 69 31 100

Percentage 69% 31% 100%

INFERENCE:
y y 69% of the respondents are Male. 31% of the respondents are Female.

FEMA E, 31%

MA E, 9%

Figure 2 : Gender of the Respondents

24 | P a g e

4.3)

OCCUPATION :-

Occupation ENTREPRENEUR PROFESSIONAL OTHERS TOTAL

No of Respondents 56 23 21 100

Percentage 56% 23% 21% 100%

INFERENCE:y y y

56% of the respondents are Entrepreneur. 23% of the respondents are Professional. 21% of the respondents are Others.

Figure 3:- Occupation of the Respondents

25 | P a g e

PROFESS ONAL, 23

OTHERS, 21

ENTREPRENEUR, 56

4.4)

WHICH SE

ICE PROVIDER YOU HAVE?

This is to know about the various service providers in post-paid connection and also which service provider respondents use. Service provider BSNL AIRTEL VODAFONE RELIANCE AIRCEL TOTAL INFERENCE:y y y y y 21% of the respondents are BSNL subscribers. 24% of the respondents are AIRTEL subscribers. 22% of the respondents are VODAFONE subscribers. 10% of the respondents are RELIANCE subscribers. 23% of the respondents are AIRCEL subscribers.

No of Respondents 21 24 22 10 23 100

Percentage 21% 24% 22% 10% 23% 100%

AIRCEL, 23%

BSNL, 21%

RELIANCE, 10%
AIRTEL, 24%

VODAFONE, 22%

Figure 4:- No of Respondents using service provider

26 | P a g e

4.5)

WHAT MADE YOU TO SELECT THIS SERVICE PROVIDER?

This is to know about various factors which made respondents to select the service provider. Selection SERVICE TARIFF PLANS OFFERS NETWOR AVAILABILITY TOTAL No of Respondents 23 40 30 7 100 Percentage 23% 40% 30% 7% 100%

INFERENCE:y y y y 23% of the respondents select service provider by means of Services. 40% of the respondents select service provider by means of Tariff plans. 30% of the respondents select service provider by means of Offers. 7% of the respondents select service provider by means of Network availability.

Network availability, 7% Service, 23% Offers, 30%

Tariff plans, 40%

Figure 5:- Selection of service provider.

27 | P a g e

4.6)

HOW DID YOU COME TO KNOW ABOUT THE SERVICE PROVIDER?

Awareness ADVERTISEMENT FRIENDS WORD OF MOUTH OTHERS TOTAL

No of Respondents 34 39 24 3 100

Percentage 34% 39% 24% 3% 100%

INFERENCE:y y y y 34% of the respondents come to know about service provider by Advertisement. 39% of the respondents come to know about service provider by Friends . 24% of the respondents come to know about service provider by Word of mouth . 3% of the respondents come to know about service providerby others.
OTHERS, 3% WORD OF MOUTH, 24%

ADVERTISEMENT, 3 4%

FRIENDS, 3 %

Figure 6:- Awareness of service provider

4.7)

HOW LONG YOU HAVE BEEN USING THIS SERVICE PROVIDER?

28 | P a g e

Period of Usage BELOW 6 MONTHS 0 TO 1 YEAR 1 TO 2 YEAR ABOVE 2 YEAR TOTAL

No of Respondents 55 29 12 4 100

Percentage 55% 29% 12% 4% 100%

INFERENCE:y y y y 55% of the respondents used BELOW 6 MONTHS. 29% of the respondents used 0 1 YEAR. 12 % of the respondents used 1 2 YEAR. 4% of the respondents used ABOVE 2 YEAR.

ABOVE 2 YEAR, 4%

1 - 2 YEAR, 12%

0 - 1 YEAR, 2 %

BELOW 6 MONTHS, 55%

Figure 7:- Period of usage of service provider.

4.8)

HOW MUCH WILL BE YOUR BILL AMOUNT PER MONTH?

29 | P a g e

Billing Amount (Rs) BELOW 1000 1001 2000 2001 3000 3001 4000 ABOVE 4000 TOTAL

No of Respondents 60 33 6 1 0 100

Percentage 60% 33% 6% 1% 0% 100%

INFERENCE:y y y y 60% of the respondents bill below 1000. 33% of the respondents bill amount per month is between 1001 2000. 6% of the respondents bill amount per month is between 2001 3000. 1% of the respondents bill amount per month is between 3001 4000.

2001 - 3000, 6%

3001 - 4000, 1%

1001 - 2000, 33% BELOW 1000, 60%

Figure 8:- Bill Amount per Month of Respondents.

4.9)

WHAT PERCENTAGE OF YOUR BILL GOES FOR SMS SERVICE?

30 | P a g e

SMS Bill Rate 0 10% 10 20 % 20 30 % 30 40 % TOTAL INFERENCE:y y y y

No of Respondents 77 18 3 2 100

Percentage 77% 18% 3% 2% 100%

77% of the respondents sms bill rate is between 0 10%. 18% of the respondents sms bill rate is between 10 20 %. 3% of the respondents sms bill rate is between 20 30%. 2% of the respondents sms bill rate is between 30 40 %.

SMS BILL RATE


2% 3% 18% 0- 0% 0 - 20 %

20 - 30 %
77% 30 - 0 %

Figure 9:- SMS Bill rate Percentage.

4.10) ARE YOU RECEIVING PROPER INFORMATION ABOUT THE

PROMOTIONAL OFFERS AT THE RIGHT TIME?

31 | P a g e

Receiving Offers YES NO TOTAL

Promotional No of Respondents 80 20 100

Percentage 80% 20% 100%

INFERENCE:y y 80% of the respondents are receiving proper information about the promotional offers at right time. 20% of the respondents are not receiving proper information about promotional offers at the right time.

NO, 20%

YES, 80%

Figure 10:- Receiving Proper Information about the promotional offers at right time.

4.11) PLEASE RATE YOUR SATISFACTION OF THE SERVICE ON THE FOLLOWING?

32 | P a g e

A) CUSTOMER SATISFACTION ON NETWORK AVAILABILITY:Network Availability

VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL INFERENCE:y y y y

No of Respondents 5 54 36 5 0 100

Percentage 5% 54% 36% 5% 0% 100%

5% of the respondents are very satisfied with network availability. 54% of the respondents are satisfied with network availability. 36% of the respondents are in neutral stage with network availability. 5% of the respondents are dissatisfied with network availability.

NETWORK AVAILABILITY
2%
25% VERY SATISFIED 56%

SATISFIED 7% NEUTRAL
DISSATISFIED

Figure 11 (A):- Customer Satisfaction on Network availability.

B) CUSTOMER SATISFACTION ON BILLING

Billing VERY SATISFIED SATISFIED 33 | P a g e

No of Respondents 8 28

Percentage 8% 28%

NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL

57 6 1 100

57% 6% 1% 100%

INFERENCE:y y y y y 8% of the respondents are very satisfied with the billing of service provider. 28% of the respondents are satisfied with the billing of service provider. 57% of the respondents are in neutral stage with the billing of service provider. 6% of the respondents are dissatisfied with the billing of service provider. 1% of the respondents are very dissatisfied with the billing of service provider.

BILLING
4%

4%
VERY SATISFIED

50% 2 %


DISSATISFIED 3%
VERY DISSATISFIED

Figure 11 (B):- Customer Satisfaction on Billing.

C) CUSTOMER SATISFACTION ON VALUE ADDED SERVICE

Val e added service VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL INFERENCE:34 | P a g e

No of Respondents 7 45 44 4 0 100

Percentage 7% 45% 44% 4% 0% 100%

SATISFIED

NE TRA

y y y y

7% of the respondents are very satisfied with value added service. 45% of the respondents are satisfied with value added service. 44% of the respondents are in neutral stage with value added service. 4% of the respondents are dissatisfied with value added service.

VALUE ADDED SERVICE


4% 7%

44%

VERY SATISFIED 45% SATISFIED


NEUTRAL DISSATISFIED

Figure 11 (C):- Customers Satisfied on Value Added Service.

D) CUSTOMER SATISFACTION ON CUSTOMER CARE SERVICE

Customer care service VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL INFERENCE:y y y

No of Respondents 7 35 53 5 0 100

Percentage 7% 35% 53% 5% 0% 100%

7% of the respondents are very satisfied with customer care service. 35% of the respondents are satisfied with customer care service. 53% of the respondents are in neutral stage with customer care service.

35 | P a g e

5% of the respondents are dissatisfied with customer care service.

CUSTOMER CARE SERVICE


5% 7%

35% 53%

VERY SATISFIED SATISFIED




NE TRA


DISSATISFIED

Figure 11(D):- Customer Satisfaction on Customer Care Service.

E) CUSTOMER SATISFACTION ON CALL RATES

Call Rates VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL

No of Respondents 5 45 46 4 0 100

Percentage 5% 45% 46% 4% 0% 100%

INFERENCE:y y y y 36 | P a g e 5% of the respondents are very satisfied with call rates. 45% of the respondents are satisfied with call rates. 46% of the respondents are in neutral stage with call rates. 4% of the respondents are very dissatisfied with call rates.

CALL RATES
4% 5%

ERY ATI IED


  

46%

NEUTRAL

DI ATI IED
 

Figure 11(E):- Customer Satisfaction on Call Rates.

4.12) WHEN YOU CALL TO CUSTOMER CARE HOW SATISFIED ARE YOU ON THE FOLLOWING? A) CUSTOMER SATISFACTION ON AVERAGE WAITING TIME
Average waiting Time VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL No of Respondents 4 52 37 7 0 100 Percentage 4% 52% 37% 7% 0% 100%

INFERENCE:y y y y 4% of the respondents are very satisfied with average waiting time. 52% of the respondents are satisfied with average waiting time. 37% of the respondents are in neutral stage with average waiting time. 7% of the respondents are dissatisfied with average waiting time.

37 | P a g e

45%

ATI IED

AVERAGE WAITING TIME


7% 4%

52%

ATI IED
"!

NEUTRAL

DI ATI IED
$# ##

Figure 12(A):- Customer Satisfaction on Average waiting time. B) CUSTOMER SATISFACTION ON ATTITUDE OF THE EXECUTIVES

Attitude of Executive VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL

No of Respondents 5 28 60 6 1 100

Percentage 5% 28% 60% 6% 1% 100%

INFERENCE:y y y y y 5% of the respondents are very satisfied with attitude of the executives. 28% of the respondents are satisfied with attitude of the executives. 60% of the respondents are in neutral stage with attitude of the executives. 6% of the respondents are dissatisfied with attitude of the executives. 1% of the respondents are very dissatisfied with attitude of the executives.

38 | P a g e

"!

37%

VERY ATI IED


!

ATTITUDE OF EXECUTIVES
1%

5% 28%
VERY ATI IED ATI IED
'& '& & &

VERY DI ATI IED


)( ((

Figure 12(B):- Customer Satisfaction on Attitude of the executives.

C) CUSTOMER SATISFACTION ON ABILITY TO PROVIDE SOLUTION

Ability to provide solution VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL

No of Respondents 5 38 50 5 2 100

Percentage 5% 38% 50% 5% 2% 100%

INFERENCE:y y y y y 5% of the respondents are very satisfied with ability to provide solution. 38% of the respondents are satisfied with ability to provide solution. 50% of the respondents are in neutral stage with ability to provide solution. 5% of the respondents are dissatisfied with ability to provide solution. 2% of the respondents are very dissatisfied with ability to provide solution.

39 | P a g e

)(

((

0%

% %

NEUTRAL

DI ATI IED

ABILITY TO PROVIDE SOLUTION


2%

5%

5%
VERY SATISFIED SATISFIED

38%
50%

NEUTRAL

DISSATISFIED VERY DISSATISFIED

Figure 12(C):- Customer Satisfaction on Ability to provide solution.

D) CUSTOMER SATISFACTION ON OVERALL CUSTOMER CARE SERVICE Overall Customer satisfaction VERY SATISFIED SATISFIED NEUTRAL DISSATISFATION VERY DISSATISFIED TOTAL No of Respondents 5 34 51 6 4 100 Percentage 5% 34% 51% 6% 4% 100%

INFERENCE:y y y y y 5% of the respondents are very satisfied with overall customer care service. 34% of the respondents are satisfied with overall customer care service. 51% of the respondents are in neutral stage with overall customer care service. 6% of the respondents are dissatisfied with overall customer care service. 4% of the respondents are very dissatisfied with overall customer care service.

40 | P a g e

OVERALL CUSTOMER CARE SERVICE


4% 5% 34% VERY SATISFIED

6%

SATISFIED NEUTRAL
51%

DISSATISFIED
VERY DISSATISFIED

Figure12 (D):- Customer Satisfaction on Overall customer care service.

4.13) OVERALL HOW SATISFIED ARE YOU WITH THE USE OF THIS SERVICE? Satisfaction Level
VERY SATISFIED SATISFIED NEUTRAL DISSATISFIED VERY DISSATISFIED TOTAL No of Respondents 3 44 45 7 1 100 Percentage 3% 44% 45% 7% 1% 100%

INFERENCE:y y y y y 3% of the respondents are very satisfied with service provider. 44% of the respondents are satisfied with service provider. 45% of the respondents are neutral stage with service provider. 7% of the respondents are dissatisfied with service provider. 1% of the respondents are very dissatisfied with service provider.

41 | P a g e

SATISFATION LEVEL
1%
7% 3% VERY SATISFIED

44% 45%

SATISFIED NEUTRAL DISSATISFIED


VERY DISSATISFIED

Figure 13:- Overall Satisfaction Level of the Respondents.

4.14) RANK THE FOLLOWING POSTPAID CONNECTIONS ON THE BASIS OF THEIR QUALITY AND SERVICE?

GARRET RANKING CALCULATION

1 83 0 0 38 3154 17

0 4 0 260 0 1 0 65 26 17 1872 1105 30 26

0 0 4 240 8 480 13

42 | P a g e

747

RANK:X :RELIANCE(F):XF:BSNL(F):XF :TATA INDICOM(F):XF:MTS(F):XF:AIRTEL(F):XF:AIRCEL(F):-

1 83 21 1743

2 72 14 1008 18 12 6

3 4 5 65 60 55 10 24 26 650 1140 1430 7 32 33 455 1 20 1815

6 50 3 150 0 0

7 45 1 45 0 0

8 41 0 0 0 0 11 451 22 902 0 0 1

9 35 0 0 0 0 17 596 10 350 1 35 1

10 28 0 0 1 28

11 TOTAL 17 1 17 6183 0 0 6261

0 26 15 0 1300 675 1 7 29 55 350 1305 9 1 0 495 50 0 9 3 0

12 14 336 238 14 12 392 204 0 0 0 0 0 0

3939 3863 7191

XF:V AFONE(F):XF:EA(F):XF:NINOR(F):XF:VIRGIN(F):XF:A A OCOMO(F):XF:21 5 5 23 4 2

1411 13 1079 0 0 0 0 0 0 1 83

2160 1690 12 34 864 2210 0 1 0 65 0 0 0 0 0 0 0 0 0 0 0 0

780 495 150 0 41 14 20 1 5 0 840 1100 50 225 0 5 0 48 9 12 300 0 2400 405 492 0 1 4 29 21 0 55 200 1305 861 0 0 4 5 28 0 0 200 225 1148 0 0 1 55 3 150 7 315 5 205

35 0 0 9 315 26 910 19 665 17 595

0 0 1 0 28 0 8 8 224 136 11 8 308 136 27 17 756 136 26 40 728 680

6762 6396 4337 3775 3127

2811

BY USING GARRET RANKING CALCULATION PROVIDERS ARE GIVEN EACH RANK.

SERVICE

RANK
1 2 3 4 5 6 7 8 9 10 11

COMPANY
AIRTEL AIRCEL VODAFONE BSNL RELIANCE IDEA TATA INDICOM MTS UNINOR VIRGIN TATA DOCOMO

INFERENCE:y

airtel is preffered by most of the customers so its ranked first followed by aircel as second and third as vodafone.

43 | P a g e

4.15) WHAT ARE THE VALUE ADDED SERVICE OFFERED BY THE SERVICE PROVIDER?

Value added service


MOBILE ALERTS MOBILE BANKING MOBILE TICKETING SPORTS AND ENTERTAINMENT

No of Respondents
48 43 38 50

INFERENCE:y y y y 48 respondents are using mobile alerts. 43 respondents are using mobile banking. 38 respondents are using mobile ticketing. 50 respondents are using sports and entertainment .

RESPONDENTS
SPORTS AND ENTERTAINMENT MOBILE TICKETING MOBILE BANKING MOBILE ALERTS 0 10 20 30 40 50 60

MOBILE ALERTS RESPONDENTS 48

MOBILE BANKING MOBILE TICKETING 43 38

SPORTS AND ENTERTAINMENT 50

CROSS TABULATION:4.16) SERVICE PROVIDER VS LOCATION


SERVICE PROVIDER

LOCATION URBAN SEMI URBAN RURAL TOTAL

44 | P a g e

BSNL AIRTEL VODAFONE RELIANCE AIRCEL TOTAL

10 17 14 9 14 64

8 5 5 1 5 24

3 2 3 0 4 12

21 24 22 10 23 100

INFERENCE:y

out of 21 bsnl respondents 10 are from urban region, 8 are from semi urban region, 3 are from rural region. out of 24 airtel respondents 17 are from urban region, 5 are from semi urban region, 2 are from rural region.

out of 22 vodafone respondents 14 are from urban region, region, 3 are from rural region. out of 10 reliance respondents 9 are from urban region, region.

5 are from semi urban

1 from semi urban

out of 23 aircel respondents 14 are from urban region, region, 4 are from rural region.

5 are from semi urban

SERVICE PROVIDER VS GENDER

SERVICE PROVIDER

GENDER MALE BSNL AIRTEL VODAFONE RELIANCE 12 18 15 6 FEMALE 9 6 7 4 TOTAL 21 24 22 10

45 | P a g e

AIRCEL TOTAL

18 69

5 31

23 100

y y

out of 21 bsnl respondents 12 are male, 9 are female. out of 24 airtel respondents 18 are male, 6 are female.

y y

out of 22 vodafone respondents 15 are male, 7 are female. out of 10 reliance respondents 6 are male, 4 are female.

out of 23 aircel respondents 18 are male, 5 are female.

SERVICE PROVIDERS VS OCCUPATION

SERVICE PROVIDER OCCUPATION Entrepreneur BSNL AIRTEL VODAFONE RELIANCE AIRCEL TOTAL 12 13 14 3 14 56 Professional 4 7 7 4 1 23 Others 5 4 1 3 8 21 Total 21 24 22 10 23 100

y y

out of 21 bsnl respondents 12 are entrepreneur, 4 are professional, 5 from others. out of 24 airtel respondents 13 are entrepreneur, 7 are professional, 4 are others.

46 | P a g e

y y

out of 22 vodafone respondents 14 are entrepreneur, 7 are professional, 1 are others. out of 10 reliance respondents 3 are entrepreneur, 4 are professional, 3 are others.

COMPARISION OF SERVICE PROVIDER WITH FEATHERS WHICH EFFECT TO SELECT SERVICE PROVIDE

Feathers which effect to select service provider Service provider Service Bsnl Airtel Vodafone Reliance Aircel Total 9 7 3 2 2 23 Tariff plans 6 13 6 3 12 40 Network availability 4 1 13 3 9 30 2 3 0 2 0 7

Offers

Total 21 24 22 10 23 100

out of 21 bsnl respondents 9 selected service, 6 selected tariff plan, 4 selected offers, 2 selected network availability. out of 24 airtel respondents 7 selected service, 13 selected tariff plans, 1 selected offers, 3 selected network ability. out of 22 vodafone respondents 3 selected service, 6 selected tariff plans, 13 selected offers.

47 | P a g e

out of 10 reliance respondents 2 selected service, 3 selected tariff plans, 3 selected offers, 2 selected network availability. out of 23 aircel respondents 2 selected service, 12 selected tariff plans, 9 selected offers.

5.0 FINDINGS AND RECOMMENTATION:AS PER THE SURVEY

y
y y y y

64% of the post-paid customers are from the urban region. 69% of the respondents are Male. More number of entrepreneurs is using post-paid connection in Coimbatore. In Coimbatore more subscribers are Airtel, Reliance has got less subscribers. More number of customers selects their service provider using tariff plans only less selected using network availability.

y y y y

More Customers come to know about the service providers through friends. 55% of the customers are using their service providers below 6 months. Bill amount per month is below Rs.1000 considering 60% of the respondents. 80% of the customers are receiving proper information about the promotional offers at the right time.

While considering the overall satisfaction level of the customers 45% of the respondents are neither satisfied nor dissatisfied.

While ranking the entire service providers in Coimbatore its like

RANK
1 2 3 48 | P a g e

COMPANY
AIRTEL AIRCEL VODAFONE

4 5 6 7 8 9 10 11

BSNL RELIANCE IDEA TATA INDICOM MTS UNINOR VIRGIN TATA DOCOMO

Considering the value added service more number of customers are using sports and entertainment than any other services.

CONCLUSION

As there is a healthy competition given by the existing players in the industry, lack or degradation in any of the services may affect the company badly. With the excellent rural awareness and rural market share in telecom services, the company should also try to boost up their urban market share. This could only be done with the help of a team of properly trained and dedicated employees. Moreover there is a huge market for the internet sector which can be captured by giving the customer, the services according to their needs.

49 | P a g e

BIBLIOGRAPHY
y y y y

http://www.indiaonestop.c om/fdi-telecom.htm http://www.trai.gov.in/Default.asp http://www.rcom.co.in/webapp/Communications/rcom/index.jsp http://trak.in/Tags/Business/category/telecommunication/

50 | P a g e

ANNE URE:-

Study on Customer preference on post paid connection in telecom industry

1) Name of the Company/Business : 2) Location : Urban [ ] Semi-Urban [ ] Rural [ ]

3) Gender

Male [ ] Female [ ]

4) Occupation

Entrepreneur [ ] Professional [ ] Others [ ]

. 5) Which service provider you have? BSNL [ ] Airtel [ ] Vodafone [ ] Reliance [ ] Aircel [ ]

6) What made you to select this service provider? Service [ ] Tariff plans [ ] Offers [ ] Network availability [ ]

51 | P a g e

7) How did you come to know about the service provider? Advertisement [ ] Friends [ ] Word of mouth [ ] Others [ ]

8) How long you have been using this service provider? Bellow 6 months [ ] 0 to 1 year [ ] 1 to 2 year [ ] above 2 years [ ]

9) How much will be your bill amount per month? Below 1000 [ ] 1001 - 2000 [ ] 2001-3000 [ ] 3001 - 4000 [ ] Above 4000 [ ]

10) What percentage of your bill goes for SMS service? 0-10%[ ] 10-20%[ ] 20-30%[ ] 30-40%[ ] More than 40 %[ ]

11) Are you receiving proper information about the promotional offers at the right time Yes [ ] No [ ]

12) Please rate your satisfaction of the service on the following:

Very satisfied = 1 Satisfied = 2 Neutral = 3Dissatisfied = 4 Very dissatisfied = 5

Very Satisfied dissatisfied Network availability Billing Value Added Services Customer Service Call Rates [ ] [ ] [ ] [ ] [ ]

Satisfied

Neutral Dissatisfied

Very

[ ] [ ] [ ] [ ] [ ]

[ ] [ ] [ ] [ ] [ ]

[ ] [ ] [ ] [ ] [ ]

[ ] [ ] [ ] [ ] [ ]

13) When you call to customer care, how satisfied are you on the following:

52 | P a g e

Very satisfied = 1 Satisfied = 2 Neutral = 3Dissatisfied = 4 Very dissatisfied = 5

Very Satisfied Average Waiting Time Attitude of the Executive Ability to provide Solution Overall Customer Care service [ ] [ ] [ ] [ ]

Satisfied

Neutral Dissatisfied Very dissatisfied

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

[ ]

14) Overall, how satisfied are you with the use of this service Very satisfied [ ] ] 15) Rank the following postpaid connections on the basis of their quality & service? Satisfied [ ] Neutral [ ] Dissatisfied [ ] Very dissatisfied [

Higher Lower

10

11

POSTPAID CONNECTIONS RELIANCE BSNL TATA INDICOM MTS AIRTEL AIRCEL 53 | P a g e

RANK

VODAFONE IDEA UNINOR VIRGIN TATA DOCOMO

16) What are the values added services offered by the service provider? Mobile Alerts Mobile banking Mobile Ticketing Sports and Entertainment [ ] [ ] [ ] [ ]

Others specify___________________________ 17) Your suggestions for improvement,

54 | P a g e