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Summer training is an important part of Masters Degree in Management program and I would like to express my heartfelt gratitude towards department of management studies for giving me this opportunity. Initially I would like take the privilege to express my deep sense of gratitude to, HOD Prof Mr. P.C Kavidyal for giving me an opportunity to have a practical experience of job. I also thank Mr. Jitesh Bhashin(MTS Barielly) and Mr. Sunil(MTS Haldwani) for his able guidance, constructive criticism, and the right amount of personal touch, which enable the project in its present state. I would also like to thank My parents and all my Colleague for their Co-operation and support throughout the development process of this report.



Introduction A brief of telecom industry MTS Services Of MTS Objectives of the study Research Methodology Scope of the study Nature of the Study Research instrument

Page no
5 5-27 27-30 31-41 42 43-44 45 46 47-49 50 51-52 53 54 55 56 57 58-63

2 3 4

Data Analysis Graphs SWOT Analysis

6 7 8 9 10

Limitation Suggestions Conclusion Biblography Annexure



A Brief of telecom industry:

1. INDUSTRYOVERVIEW 1.1 Background The Indian Telecommunications network is the third largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for Indias resurgent Indias economic growth. 1.1.1 Growth This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. 1.1.2 Wireline Vs Wireless It has also undergone a substantial change in terms of mobile versus fixed phones and public 5|Page

versus private participation. The preference for use of wireless phones has also been predominant in the sector. Participation of the private entities in the telecom sector is rapidly increasing rate there by presenting the enormous growth opportunities. There is a clear distinction between the Global Satellite Mobile Communication (GSM) and Code Division Multiple Access (CDMA) technologies used and the graph below shows the divide between the two. 1.2 Segment wise Status 1.2.1 Wireline Services With increasing penetration of the wireless services, the wireline services in the country is becoming stagnant. On the other hand, Broadband demand has picked up and promises to stabilise fixed line growth. 1.2.2 GSM Sector

In terms of the Global System for Mobile Communication (GSM) subscriber base this now places India third after China and Russia.China had 401.7 million GSM subscribers.


1.2.3 CDMA Services CDMA technology was introduced in India as a limited mobility solution. The introduction of CDMA services has created competition, lowered tariffs and offered many citizens access to communication services for the first time 1.2.4 Internet Services Internet services were launched in India on August 15, 1995. In November 1998 the government opened up the sector to private operators. A liberal licensing regime was put in place to increase internet penetration across the country.

The growth of IP telephony or grey market is also a serious concern. Government loses revenue, while unlicensed operation by certain operators violates the law and depletes licensed operators market share. New services like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in coming years. The scope of services under existing ISP license conditions are unclear.

1.3 Manufacture of Telecom Equipment


Rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunication, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many renowned telecom companies setting up their manufacturing base in India. Ericsson has set up GSM Radio Base Station Manufacturing facility in Jaipur. Elcoteq has set up handset manufacturing facilities in Bangalore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near Pune. The Government has already set up Telecom Equipment and Services Export Promotion Forum and Telecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India is expected to be a manufacturing hub for the telecom equipment.

2 POLICY AND INITIATIVES 2.1 Regulatory Framework The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a regulator for Telecom sector. The TRAIs functions are recommendatory, regulatory and tariff setting in telecom sector.


Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in May, 2000. TDSAT has been empowered to adjudicate any dispute between a licensor and a licensee between two or more service providers between a service provider and a group of consumers hear and dispose of appeal against any direction, decision or order of TRAI Tariffs for telecommunication services have evolved from a regime where tariffs were determined by Telecom Regulatory Authority of India to a regime where tariffs are largely under forbearance. TRAI intervenes by regulating the tariffs for only those services, the markets of which are not competitive. Universal Service Obligation Fund (USOF) exclusively for meeting the Universal Service Obligation was established in April, 2002. The Universal Service Levy is presently 5 per cent of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc. Indian Telegraph Act has been amended in October2006 to provide support for all telegraph services including mobile and broadband to bridge the digital divide. With the introduction of the Unified Access Licensing Regime, operators can offer telecom access services to consumers in a technology neutral manner, subject to fulfilling certain conditions. Introduction of this regime has also broken the legal/regulatory impasse between


the cellular and basic service providers. Issuance of Intra-Circle Merger and Acquisition Guidelines provide investors an opportunity to take stakes in existing telecom operations. 2.2 Government Initiatives The Government has taken the following main initiatives for the growth of the Telecom Sector: All telecom services have been opened up for free competition for unprecedented growth. 217 (Information Technology Agreement) ITA-I items are at zero Customs Duty. Specified capital goods and all inputs required to manufacture ITA-I, items are at zero Customs Duty Availability of low cost mobile handsets The international Long Distance Services (ILDS) opened with effect from April 2002. Calling Party Pays (CPP) regime was implemented with effect from 1st May Guidelines for Unified Access Service License regime were issued in November 2003, 27 licenses out of 31 Basic Service Licenses were converted to Unified Access Service Licenses In April 2004, license fee for Unified Access Service Providers (UAS) was reduced by 2 per cent License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of the Adjusted Gross Revenue and spectrum charges between 2 to 4 per cent in June 2004 Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry fee for ILD reduced to Rs. 2.5 Crore from Rs. 25 Crore Lease line charges have been reduced to make the bandwidth available at competitive

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prices to facilitate growth in IT enabled services One India plan i.e. single tariff of Re. 1/-per minute to anywhere in India was introduced from 1st March 2006 by the Public Sector Undertakings. This tariff was emulated by most of the private service providers also. This scheme has led to death of distance in telecommunication and is going to be instrumental in promoting National Integration further The robust telecom network has also facilitated the expansion of BPO industry that is having 500,000 employees now and adding 400 employees per day. Annual license fee for National Long Distance (NLD), International Long Distance (ILD), Infrastructure Provider-II, VSAT commercial and Internet Service Provider (ISP) with internet telephony (restricted) licenses was reduced to 6 per cent of Adjusted Gross Revenue (AGR) with effort from Jan 2006. The Governments policy is neutral on use of technology by telecom service providers subject to availability of scarce resources such as spectrum etc. Licence Fees 6-10 per cent of Adjusted Gross Revenue (AGR) 2.3 Foreign Direct Investment Policy Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the telecom manufacturing segment in 1991 - when India embarked on economic liberalisation. FDI is defined as investment made by non-residents in the equity capital of a company. For the telecom sector, FDI includes investment made by Non-Resident Indians (NRIs), Overseas Corporate Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs), American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) etc. Present FDI Policy for the Telecom sector:

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In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value Added Services and Global Mobile Personal Communications by Satellite, FDI is limited to 49 per cent (under automatic route) subject to grant of licence from the Department of Telecommunications and adherence by the companies (who are investing and the companies in which investment is being made) to the licence conditions for foreign equity cap and lock-in period for transfer and addition of equity and other license provisions. Foreign Direct Investment up to 74 per cent permitted, subject to licensing and security requirements for the following: - Internet Service (with gateways) - Infrastructure Providers (Category II) - Radio Paging Service FDI up to 100 per cent permitted in respect to the following telecom services: - ISPs not providing gateways (Both for satellite and submarine cables) - Infrastructure Providers providing dark fibre (IP Category I) - Electronic Mail - Voice Mail The above is subject to the following conditions: - FDI up to 100 per cent is allowed subject to the condition that such companies would divest 26 per cent of their equity in favour of Indian public within 5 years, if these companies are listed in other parts of the world. - The above services would be subject to licensing and security requirements, wherever required.

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- Proposals for FDI beyond 49 per cent shall be considered by Foreign Investment Promotion Board (FIPB) on a case-to-case basis. In the manufacturing sector 100 per cent FDI is permitted under the automatic route. In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile Personal Communications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subject to grant of license from Department of Telecommunications Foreign direct investment up to 74 per cent permitted, subject to licensing and security requirements for the Internet Service (with gateways), Infrastructure Providers (category-II), Radio Paging Service FDI up to 100 per cent permitted in respect of - ISPs not providing gateways (both for satellite and submarine cables), - Infrastructure Providers providing dark fibre (IP Category I); - Electronic Mail; and - Voice Mail FDI up to 49 per cent is also permitted in an investment company, set up for making investment in the telecom companies licensed to operate telecom services. Investment by these investment companies in a telecom service company is treated as part of domestic equity and is not set of against the foreign equity cap. Manufacturing - 100 per cent FDI is permitted under automatic route. FDI is subject to the following conditions FDI up to 100 per cent is allowed subject to the conditions that such companies

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would divest 26 per cent of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. The above services would be subject to licensing and security requirements, Wherever required. Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case Basis.


Bharat Sanchar Nigam Limited (BSNL)

Year of Establishment Company Profile 2000 Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India.

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Global Presence/ Marketing 5000 Network

It has a network of over 45 million lines covering

towns with over 35 million telephone connections.

Future Prospect

BSNL plans to expand its customer base from present 47 millions lines to 125 million lines and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three years.

Mahanagar Telephone Nigam Limited (MTNL)

Year of Establishment Company Profile India

1986 MTNL was set up by the Government of

to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of Indias key metros. MTNL with a market share of about 15 | P a g e

13% of the National telecom Network has a customer base of 5.92 million. The Govt. of India currently holds 56.25% stake in the company. Acquisitions / Strategic Alliances MTNL has formed a Joint Venture company in Nepal by the name of United Telecom Ltd. (UTL) in collaboration with Telecom Consultants India Limited (TCIL) in 2001 for providing WLL based basic services in Nepal. MTNL has set up its 100% subsidiary. Mahanagar Telephone Mauritius Limited. (MTML) in Mauritius, for providing basic, mobile and international long distance.

Videsh Sanchar Nigam Limited (VSNL)

Year of Establishment Company Profile

1986 The Videsh Sanchar Nigam Limited (VSNL) a wholly Government owned corporation. Thecompany operates a network of earth stations, switches, submarine cable systems,

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and value added service nodes to provide a range of basic and value added services and has a dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. Global Presence/ Marketing Network The company has 52 subsidiaries in 21

countries as well as operations across four continents. Acquisitions / Strategic Alliances VSNL acquired Nasdaq-listed Teleglobe International Holdings Ltd for $239 million in 2005 Videsh Sanchar Nigam Ltd acquired Tyco Global Network, submarine cable system, for USD 130 million in 2005 Future Prospect The company plans to expand its wholesale voices services across the EU, to effectively enable enterprise customers and retail voice carriers to connect to India. VSNL is adding its capacity to meet the overwhelming demand for connectivity to India in the wholesale voice services domain. The company is also offering flexible agreements and charging methods to meet the growing demands of the wholesale

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voice market

Reliance Communication

Year of Establishment Company Profile

1999 Reliance Telecom's cellular services are available in 340 towns within its eight-circle footprint. Reliance Infocomm also offered for the first time in India, mobile data services though its RWorld mobile portal. This portal leverages the data capability of the CDMA 1X network. Reliance Infocomm offers a complete range of telecom services covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications aimed at enhancing productivity of enterprises and individuals.

Global Presence/ Marketing Network

Reliance Communications has IP-enabled connectivity infrastructure comprising over 150,000 kilometers of fiber-optic cable systems

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in India, the US, Europe, Middle East, and the Asia Pacific region. Acquisitions / Strategic Alliances International wholesale telecommunications Service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm in 2004.

Tata Teleservices

Year of Establishment Company Profile

1996 Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other services

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include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Global Presence/ Marketing Network Tata Teleservices has presence in across 19 circles that includes Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. Acquisitions / Strategic Alliances Tata Teleservices has acquired Hughes (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in 2002 Future Prospect The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime.

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Name Year of Establishment India, by buying out complete stake of Hutch in 2007, Essar is still minority stakeholder in company Company Profile Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 45.78 million customers. Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in Vodafone Acquired majority stake in Hutch Essar in

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the country' and the 'Most Creative and Most Effective Advertiser of the Year'. Global Presence/ Marketing Network It has operations in 25 countries across partner networks with over 200 million customers worldwide. Future Prospect Vodafone Essar is expecting to touch over 35 million customers across 400,000 shops and thousand of hutchs own employees along with employees of its business associates.

Name Year of Establishment Company Profile Group, which is India's first truly multinational corporation. Aditya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd. 44.9 per Idea 1995 Idea Cellular is part of the Aditya Birla

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cent, Grasim 7.5 per cent, and Hindalco 10.1 per cent in Idea. Global Presence/ Marketing Network IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP West, Himachal Pradesh and Kerala. Acquisitions / Strategic Alliances Merged with Tata Cellular Limited in 2001, thereby acquiring original license for the Andhra Pradesh Circle Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circlein 2001 In 2004 acquired Escotel, incumbent cellular service provider in Haryana, UP(W) & Kerala and new licensee in HP Acquired Escorts Telecommunications Limited (subsequently Has a customer base of over 17 million,

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renamed as Idea Telecommunications Limited) in 2006 Merger of seven subsidiaries with Idea Cellular Limited in 2007 Future Prospect Idea also plans to enter rural and neglected circles as a strategy to gain subscribers. Other advancements in the telecom industry will help it cut costs - use of e-mail to send bills to customers; sharing cell sites; smaller base transmission stations that will mean lesser infrastructure requirements and expenses and independent tower operators. Along with its plan to go for a national long distance licence, it will also look at international long distance in the near future.

Bharti airtel
Year of establishment Company Profile incorporated on July 7, 1995 for promoting investments in 24 | P a g e 1985 Bharti Tele-Ventures Limited was

telecommunications services. Its subsidiaries operate telecom services across India. Bhartis operations are broadly handled by two companies: the Mobility group and the Infotel group. Global Presence/ Marketing Network The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. Acquisitions / Strategic Alliances Bharti Telecom and British Telecom formed A 51%:49% joint venture, Bharti BT Internet forproviding Internet services, in 1998 Bharti Tele-Ventures acquired an effective 32.36% equity interest in Bharti Mobile(formerly JT Mobiles), the cellular services provider in Karnataka and Andhra Pradesh circles in 1999. Bharti Telesonic entered into a joint venture, Bharti Aquanet, With SingTel for establishing a submarine cable landing station at Chennai in 2001 A 50:50 joint venture between Bharti and SingTel, to undertake the largest infrastructure project between Singapore and Indian companies in 2001 Future Prospect 25 | P a g e Bharti Airtel company is planning to set up

3000 more towers as part of enhancing their rural coverage and will now focus on rural and semi-urban areas.


Sistema Shyam TeleServices:

Sistema Shyam TeleServices Ltd (SSTL) is the fastest growing telecom company in the competitive Indian market, with over 11 million voice subscribers and over 7 lakh mobile broadband customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema company of Russia, to bring the globally acclaimed telecom brand MTS to India. Millward Brown in its 2011 report on Most Valuable Global Brands has ranked MTS 80th with a brand value of $10.9 billion. Sistema Shyam TeleServices Ltd. (SSTL) is a joint venture between Sistema {LSE: SSA} of Russia, the Russian Federation and the Shyam Group of India. The Russian Federation holds a 17.14% stake in the company. Sistema is the majority shareholder with a 56.68% stake, Shyam Group holding a 23.98% stake and the remaining 2.2% being held by the public.

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MTS was established in October 1993 by Moscow City Telephone Network (MGTS), TMobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a majority stake in MTS and has remained the primary owner ever since. MTS was the first company to launch GSM services in the Moscow region in 1994. In subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of smaller independent players and became the leading national mobile operator. MTS initiated its international expansion in 2002 through the establishment of Mobile TeleSystems LLC, a joint venture with Beltelecom, the national fixed line operator in Belarus. In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in Ukraine, the biggest CIS market outside of Russia. MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash Communications Technologies, Inc., the number one operator in Turkmenistan. 27 | P a g e

In September 2007, MTS continued its international expansion through the acquisition of the leading mobile operator in Armenia, K-Telecom. In December 2008, MTS started to expose its brand outside the CIS borders. MTS and Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India, announces the agreement to allow shayam telelink to use MTS brand in India. The decision to introduce the brand to India is reflective of the brands success in the Companys markets of operation since its launch in May 2006. In April 2008, MTS brand was recognized as one of the BRANDZ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global market research and consulting firm. Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a multinational corporation of a new type, based in a high-growth emerging market and simultaneously entering other developing markets with a unified brand. Having been recognized internationally for corporate governance and transparency, MTS is not only a leading Russian blue-chip company, but a truly global organization.

MTS Brand
MTS is the global telecom brand of Mobile TeleSystems (MTS) OJSC (NYSE: MBT) of Russia. In December 2008, Sistema Shyam TeleServices Ltd, a joint venture between Sistema (LSE-SSA) of Russia and Shyam Group of India, brought the MTS brand into India under a brand license agreement with Mobile TeleSystems (MTS) OJSC. This extended the brand of MTS beyond the CIS countries. 28 | P a g e

As part of the 2011 Millward Brown report on Most Valuable Global Brands MTS is ranked 80th with a brand value of $10.9 billion. In 2008, MTS became the first and only Russian brand to enter BRANDZ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown. Brand MTS was launched in 2006 in Russia and got built based on its reputation as the leading telecommunication group offering world class telecom services in Russia, Eastern Europe and Central Asia. In India, brand MTS offers voice & data services to over 11 million subscribers and operates across all 22 telecom circles of India. MTS launched the high-speed mobile broadband service, MBlaze, in November 2009 and has seen tremendous market acceptance with over 7 lakh satisfied mobile broadband customers. The high speed mobile broadband service has been made available in more than 150 towns (Including all Metros) across the country. In April 2010, MTS is also credited to have launched its LIVE TV and Video on demand service, aptly called MTS TV for all MBlaze customers.

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Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a multinational corporation of a new type, based in a high-growth emerging market and simultaneously entering other developing markets with a unified brand. The decision to introduce the brand to India is reflective of the brands success in the Companys markets of operation since its launch in May 2006. In April 2008, MTS brand was recognized as one of the BRANDZ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global market research and consulting firm. In INIDIA MTS provides both voice and data services including tele and internet services. TELECOM SERVICES. DATA SREVICES. HIGH SPEED INTERNET.

In INDIA MTS has launched its CDMA service only providing customers with CDMA handsets and CDMA sims card. Being a CDMA service provider the voice clarity and connectivity of MTS is more than just good. This can be justified as MTS has over 11 million subscribers all over INDIA. Under telecom services MTS provides handsets, sim cards ,paper recharge and E-top ups .The handsets provided by MTS are bundled with a sim card or MTS connection. 30 | P a g e

Separate sims are also provided by MTS. The handsets bundled with sim cards are only compatible MTS handsets only and they range from Rs599 to Rs5000. The most popular handset of MTS provided to the retailer is the Rs599 one. The handsets sold along with the sim cards are called H.B.O or hand set bundled offer below is the scheme offered to the retailer for H.B.Os. Cost of the handset Billed To the customer F.R.C Reverse to the retailer I.D Claim Rs 654 Rs 599 Rs 85 Rs 180 Rs 10

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The handset is billed to the retailer for Rs 654 and he sells it for Rs 599 to the customer on which the retailer also fills a n FRC or first recharge of Rs 85.This FRC provides the customer 900 free minutes of call time for three months, these 900 minutes are not provided to the customer at a single go but are given according to the given break ups. For three months customer gets per month 300 minutes out of which 200 minutes are allotted for MTS to MTS only (on net) and 100 minutes for MTS to other providers (off net). At first look it seems that the retailer is at loss, buying the handset for Rs 654 and selling it at Rs 599 however after filling the FRC of Rs 85 the retailer gets a reverse etopup fill of Rs 180 on his MTS sim and also he receives Rs 10 as the ID claim bringing down his cost to Rs 549.

The other scheme is for non HBO sims(without handsets). Cost of sim to MTS Cost to the retailer Billed to the customer FRC Cash back as e-top up ID Claim Rs 30 Rs 50 Rs 100 Rs 251 Rs 221 Rs 10

In non HBO schemes only sim cards are sold(CDMA sim cards only) which are billed to the retailer at Rs 50 each. The retailer sells it to the customer at Rs 100, and fills an FRC of Rs 251,through this FRC the customer gets a total of 2700 minutes for three months. The breakup of these 2700 minutes is as follows: For three months the customer will receive 900 minutes (for each month) out of these 900 minutes, 600 minutes will be for MTS to MTS calling (on net) and 300 minutes will be for MTS to other (off net).The retailer gets Rs 221 as reverse e-top up fill for the FRC of Rs 251 and Rs 10 for each ID claim.


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Step 1: The document checklist

Passport-sized Photograph that has been self-attested A copy of Proof of Identification (POI): PAN Card or Drivers License or Voters ID Card or Passport

And also a copy of Proof of Address (POA): Ration Card or Drivers License or Voters ID Card or Passport


1. MTS CONNECTION WITH HANDSET : Being a CDMA company MTS provides its connections with handsets varying in range from Rs.599 to Rs 5000.The Rs.599 variant being the most popular as it is one of the cheapest handset available along with connection in the market.

2. MTS connection without the handsets: MTS also provides open sim cards which can be used on a CDMA mobile phone providing greater flexibility to its customers

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MTS Tariff guide

For paper and other E-Recharge various denominations are offered by MTS below is the complete tariff guide of MTS.

Lifelong Validity * (till 24th Jan 2028) SIM Talk Value# Call Charges (Rs./min) Local MTS Mobiles Other Mobiles & Landlines STD All Mobiles and Landlines Message Charges (Rs./SMS) SMS Local National 34 | P a g e

Rates (Rs.) 49 0

1paisa/ second 1paisa/ second 1paise/ second

Re.1 Rs. 1.5



*Minimum of Rs.200 cumulative recharge over a period of 6 months. #As per first recharge (FRC) MTS OFFERS for New Customers - First Recharge Coupons FRC 203 Call Charges (Rs./min) MRP 203 Talktime ST 50* 18.96

All Local & STD Calls 1p/2sec# Validity 6 months Message Charges (Rs./SMS) SMS Local Rs.1 National International FRC 55 Call Charges (Rs./min) MRP Talktime Rs.1.5 Rs.5

Rs. 55 Rs. 0

Validity 365 Days Offer Every time 25% extra Talk Value of recharged RCV

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FRC 97 Call Charges (Rs./min) MRP Talktime Service Tex Processing Fee Validity MTS - MTS Local MTS Others MTS - All STD Top UP's Service Tax MRP Rs. Rs. 10 20 50 75 100 Top Up 150 Call Charges (Rs./min) MRP Talktime Promo TT Validity Service Tex Processing Fee Top Up 80 Call Charges (Rs./min) MRP Talktime Promo TT Validity 36 | P a g e 0.93 1.87 4.67 7.00 9.34 0 0 0 0 0 9.07 18.13 45.33 68.00 90.66 Core Validity Core Validity Core Validity Core Validity Core Validity Processing Fee Rs. Talktime Rs. Remarks

Rs. 97 Rs. 0 Rs.9.06 Rs. 87.94 6 months 1p/4s 1p/2s 1p/s

Rs. 150 Core TT Rs. 100 + Promo TT Rs.100 30 Days Rs. 14.01 Rs. 35.99

Rs. 80 Promo TalkTime Rs.100 30 Days

Service Tex Processing Fee

Rs.7.47 Rs. 72.53

STV Type SMS offer On net offer

MRP 29 79

Validity 30 Days 30 Days

Benefit 100 local/ national SMS per day Unlimited

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MBlaze combines the convenience of USB Modems with great utility value. MBlaze Premium USB modems also functions as your data storage device. Choose your MBlaze, and just plug it in to start surfing. MBlaze is a highspeed wireless broadband service using CDMA 1x RTT network or EVDO data network it can provide a speed upto 3.1 mbps.

Plug & Play
Just plug your MBlaze USB modem and hit the Welcome Page. On the Welcome Page you can view:

Your account balance Shortcuts to your favorite websites You can also recharge your account or opt for the MBlaze of your choice

Choose your Top-Up

All circle specific voice tops applicable.

Available on e-recharge and web recharge Charges to be deducted from your existing MBlaze account balance Roaming charges: No roaming charges on MTS network.

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The objective of the study aims to cover the following aspects of the project. The main objective of SUMMER INTERNSHIP PROGRAM was to find out the causes for hindrance of MTS and to find out the demand of retailers and also get feedbacks from them regarding the service of MTS. The project aims to study the process used by sales executives of MTS to service the retailers. To check the specific need of retailers regarding services. To find out he customer preference.

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Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. For example, an architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and not others and the like. Similarly, in research the scientist has to expose the research decisions to evaluation before they are implemented. He has to specify very clearly and precisely what decisions he selects and why he selects them so that they can be evaluated by others also. From what has been stated above, we can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The scope of research methodology is wider than that of research methods. Thus, when we talk 40 | P a g e

of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Why a research study has been undertaken, how the research problem has been defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analysing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study

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The scope of the study has been limited to sample size of 150 respondents due to the time and cost constraints. However, the scope of the study with respect to geographical area is restricted to the city of Haldwani, Nainital including or out off city limits like Lalkuan ,Bhowali, Bhimtal.

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It was an exploratory research and the basic aim of exploratory research is to gain familiarity with the phenomena or to achieve new insights into it. So the study has tried to find, who have the maximum influence on the decision making of the retailers and the various methods through which the sales of MTS could be increased.

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The first method is the straightforward experiment, involving the standard practice of manipulating quantitative, independent variables to generate statistically analyzable data. Generally, the system of scientific measurements is interval or ratio based. When we talk about scientific research methods, this is what most people immediately think of, because it passes all of the definitions of true science. The researcher is accepting or refuting the null hypothesis. The results generated are analyzable and are used to test hypotheses, with statistics giving a clear and unambiguous picture.

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This research method is one of the most difficult, requiring rigorous design and a great deal of expense, especially for larger experiments. The other problem, where real life organisms are used, is that taking something out of its natural environment can seriously affect its behavior. It is often argued that, in some fields of research, experimental research is too accurate. It is also the biggest drain on time and resources, and is often impossible to perform for some fields, because of ethical considerations.


Observational research is a group of different research methods where researchers try to observe a phenomenon without interfering too much. Observational research methods, such as the case study, are probably the furthest removed from the established scientific method. This type is looked down upon, by many scientists, as quasi-experimental research, although this is usually an unfair criticism. Observational research tends to use nominal or ordinal scales of measurement. Observational research often has no clearly defined research problem, and questions may arise during the course of the study. For example, a researcher may notice unusual behavior and ask, What is happening? or Why? Observation is heavily used in social sciences, behavioral studies and anthropology, as a way of studying a group without affecting their behavior. Whilst the experiment cannot be replicated or falsified, it still offers unique insights, and will advance human knowledge.

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Case studies are often used as a pre-cursor to more rigorous methods, and avoid the problem of the experiment environment affecting the behavior of an organism. Observational research methods are useful when ethics are a problem.


Opinion based research methods generally involve designing an experiment and collecting quantitative data. For this type of research, the measurements are usually arbitrary, following the ordinal or interval type. Questionnaires are an effective way of quantifying data from a sample group, and testing emotions or preferences. This method is very cheap and easy, where budget is a problem, and gives an element of scale to opinion and emotion. These figures are arbitrary, but at least give a directional method of measuring intensity. Quantifying behavior is another way of performing this research, with researchers often applying a numerical scale to the type, or intensity, of behavior by definition, this experiment method must be used where emotions or behaviors are measured, as there is no other way of defining the variables. Whilst not as robust as experimental research, the methods can be replicated and the results falsified.

Questionnaire Method:
This Method of data collection is quite popular, particularly in case of big enquiries. In this method a questionnaire is provided to a person concerned with the request to answer the 46 | P a g e

question and return the questionnaire. A questionnaire consists of number of printed or typed in definite form or set of forms. In observation method only the effect can be observed while the case remains unknown. More ever observation method requires special observational skill on the part of the Researcher where as through questionnaire asking to the people who are thought to have the desired information collection of data becomes easy. Questionnaire is set of question with some space for answer. The questionnaire for the report consists of open ended, closed ended type of questions.

Exploratory research is also known as qualitative research. This type of research is used to discover new relationship. It looks of hypothesis tentative answers to questions that solves as a guide for most research project. This project is also exploratory in nature. I have conducted research with the help of questionnaire. I have also taken personal interview with different retailers and customers who provide key information about their level of satisfaction and grievances. There were 8 different questions in my questionnaire which focused problem solving seeking objective. This report is prepared on the basis of answer given by various retailers. 1. Type of research: Exploratory research 2. Data Source: Primary Data 3. Data Collection Techniques: Questionnaire Method and personal interview. 4. Contact Method: Personal Interview 5. Sample Size: 150 6. Sampling Procedure: Convenience Sampling and Random sampling.

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Primary Data is the data which is directly taken by the company in this case however the data is collected from various retailers of Nainital, Bheemtal, Bhowli, Haldwani and lalkuan.


Total 70

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Total 28

Total 33 PRC(Paper recharge coupon):-

From these graphs it is clearly defined that the number of paper recharge coupon and sim card is less compare to others E-top up and handsets some reason are:49 | P a g e

1. These are CDMA sims so the customer need to have special kind of mobile which supports CDMA sim as well thats why retailer not prefer to have the sim. 2. The reason for paper recharge coupon to be less is that the retailer get only profit as form of E-top up so they dont prefer PRC.

Following is the SWOT Analysis for MTS

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STRENGTHS Focused on telecom. Good voice clarity. High speed internet connectivity. Pan India presence.

WEAKNESS Lack of advertisements. Lack of retailer education. Slow and irregular distribution channel. Weak market presence.

OPPORTUNITIES Attractive schemes and cheap handsets are attracting customers. MTS can capitalize on the sloppy CDMA market of India with attractive schemes and network.

THREAT Biggest threat is the weak and disruptive distribution channel especially in the hilly areas which makes the retailers skeptic about the company. Threat from already existing CDMA companies. Especially those companies which provide CDMA as well as GSM services. Cheap hand sets maybe attracting customers but they lack in performance, which leads to customer dissatisfaction,there by tarnishing the companies image in the market.

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Every market survey faces certain limitations so is true with this satisfaction survey which faces two major limitations 1. Validity 2. Reliability VALIDITY: This survey does not involve the whole population only a part of the population is taken for survey which comprises the sample size. This satisfaction survey is only true to the sample size that has been covered, the preferences satisfaction dissatisfaction and feedback may vary with different sample sizes and a complete conclusion of the whole population cannot be drawn with this satisfaction survey. RELIABILITY: The satisfaction survey is only true for a particular period of time as with time the taste and preferences of the people tend to change thus limiting the scope of the survey.

1. Increase the market promotion to aware more and more customers about the CDMA networks. 52 | P a g e

2. Using an aggressive marketing approach would prove more beneficial in solidifying the image of MTS. 3. Improvement in the network reception especially in outskirts of the city. 4. Retailers want the monetary benefit on sale of handsets and sim rather than the increase in e-top-up. 5. CDMA market is slowly becoming obsolete. 6. Sales promotion activities should be encourage more and more in the region of haldwani, bhimtal and bhowali. 7. To improve the Brand image of MTS, company should support and sponsor the local tournaments. 8. Company should have the proper distribution channel.

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Market Management By Philip Kotl;er

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