Study of The Behaviour of Telecom Retailers

Summer Training Report
On
“STUDY OF THE BEHAVIOUR OF THE TELECOM RETAILERS”
At
VODAFONE ESSAR SPACETEL Ltd, GUWAHATI
Prepared By
ROSHAN KANOO
Roll No. 08DM076
Batch 2008-2010
Under the guidance of
Prof. (Dr) SAMARENDRA MAHAPATRA
As a Partial Fulfilment of PGDM Programme of IMIS
Institute of Management & Information Science
Bhubaneswar
TABLE OF CONTENTS
Certificate
Declaration I
Acknowledgement II
Preface III
Synopsis IV
Executive Summary V
Chapter I 1-9
Introduction 1
Company profile 2
History of Vodafone 3
1.1 Vodafone- India 6
1.2 Vodafone – Assam 9
Chapter II 10-16
Indian Telecom Industry 10
2.1 Key Players in Indian Telecom industry 10
2.2 The Deal – Vodafone and Hutch 11
Telecom Regulatory Authority of India
2.3 TRAI and its role 12
2.4 New Telecom Policy in Telecom Sector 14
2.5 Dispute Resolution in Telecom Sector 14
2.6 Competition and Vodafone 15
Chapter III 17-20

Vodafone Operations 17
3.1 Brand and Distribution 18
3.2 Distribution and Channel of Sales at Vodafone 18
3.3 Vodafone – Products & Services 19
Chapter IV 21-46
4.1 Research Methodology 21
4.2 Observation and Findings 22-43
4.3 Conclusion and Recommendation 44-46
Abbreviation 47
Bibliography 48
Annexure 49
II
DECLARATION
I hereby declare that this project on “STUDY OF THE BEHAVIOUR OF THE

TELECOM RETAILERS” has been prepared by me during the year 2009-2010
as a partial fulfilment of PGDM course of Institute of Management & Information
Science, Bhubaneswar. This project report has not been submitted to any other
university or institution for award of any degree or diploma so far.
Signature of the student
[ROSHAN KANOO]
Roll No. 08DM076
III
ACKNOWLEDGEMENT
It is my pleasure to extend my deep gratitude to Prof. (Dr) Samarendra

Mahapatra, Faculty Guide, Institute of Management & Information Science,
Bhubaneswar, for the help, cooperation and guidance received from him
throughout the tenure of this Summer Internship Project .
I would like to take this opportunity to thank all other faculty members at Institute
of Management & information Science, Bhubaneswar, Orissa, for their
cooperation.
I will also like to thank Mr. P.K.Das, Head of Sales for giving me an opportunity to
do the “Summer Internship” in his esteemed organisation, Vodafone Essar
Spacetel Ltd.
I am deeply indebted to Mr. Amitabh Ranjan, Zonal Business Manager of

Vodafone Essar, Guwahati, and also my company project guide, for providing a
mentally stimulating environment throughout the project period.
I am grateful to Mr. Sanjay Singha, Area Sales Manager, Mr. Vishal Kumar,
Senior Executive and Mr. Rubul Das, Zonal Coordinator , for there guidance and
help during the internship. Their valuable and constructive suggestions at many
difficult situations are immensely acknowledged.
Finally I would like to thank all the staff of Vodafone Essar, Guwahati Branch,
who helped me complete my project successfully.
ROSHAN KANOO
IMIS
Bhubaneswar
IV
PREFACE
The customers are very important and play a very crucial role in any process of
marketing. Today the customers are kings of the market because the customer’s
loyalty and customer’s preference are built by the products and services offered
to the customers and they seek for more benefits and money’s worth for the
amount they spend. But these services and products are delivered to the end
customers only by the Retailers who work as the end medium in the whole chain
of sales. That is where the concept of Retailers preference and Retailers
behaviour comes because the Retailers make the marketers rethink about
designing their services; because of the important role they play in the whole
chain. They have to think about the market strategies, Retailer behaviour,
Retailers taste etc also. Many marketers are smart enough to understand
Retailers needs, wants and demands and perform beyond their expectation i.e.
they delight them. it provides them growth , profitability and creativity with lot of
inventions.
V
SYNOPSIS
AIM
The aim of this survey is to analyse critically the Retailers preference, behaviour,
and their satisfaction in telecom sector at Guwahati, Assam.
RESEARCH OBJECTIVES
• To understand the Retailers preference in telecom sector.
• To study the service provider’s service quality in the telecom sector.
• To study the Retailers satisfaction and understand the current market
scenario in telecom sector.
COMMERCIAL VIABILITY OF THE STUDY

In today’s scenario communication has become much faster day by day. One of
them is the growth of telecom sector. Today many organisations provide services
for telecom purpose. This study will help to understand Retailer preference and
their satisfaction by the services provided by different organisations in this sector
.it will also help these organisations to form various strategies and getting the
results from marketing efforts.
RESEARCH METHODOLOGY
In the research study selected Retailers of telecom sector, dealing in the
products and services of various telecom operators were taken into account. The
study exploited both primary and secondary sources of data. The primary
sources comprised of structured questionnaire consisting of 64 questions divided
over 15 categories. The questionnaire consisted of both closed ended and open
ended questions. The scale used for the close ended question is Likert scale.
The open ended questions were basically in the form of interaction with Retailers
by filling up of questionnaire. The sample size for the the study consisted of 150
Retailers dealing in both prepaid and post-paid product and services. The data
was collected from the respondents who were Retailers for products and services
of all telecom operators operating in Assam. The actual sample surveyed in this
study is 115 Retailers, where the population itself is of 750 Retailers. The sample
size is 15% of the total population which is a very good sample size to make this
report as error free as possible. The data gathered were analysed and
interpreted using simple arithmetic calculations, Means, Medians and Bar-Chart
were calculated and prepared for each questions using Excel. The questionnaire
has been attached in the annexure.
The secondary source basically consisted of books, internet, articles, magazines,

project report and newspaper.
VI
LIMITATIONS
The limitation of the study is that only Retailers from Guwahati i.e. the capital city
of Assam have been taken into account. In this survey only the view of retailers
has been taken into account but neither the view of the company nor the
satisfaction level of the customers is taken into account, and as we know retailers
behaviour is at times monetarily motivated one so some of the response may be
biased. However the study has provided encouraging results and there is scope
for deriving more information if a more rigorous study is conducted at district
levels to cover the entire state.
VII
EXECUTIVE SUMMARY
The development of the telecom sector has experienced a major process of

transformation in terms of its growth, technological content and market structure
in the last decade. The study aims to analyse that with the increase in
competition in the telecom service, higher levels of Retailer satisfaction with
affordable price for end users and improved quality of services are achieving or
not .
The study also shows whether the Retailer who deals with various
service providers product and service are satisfied with the service quality and
allied parameter attached to it or not. As competition in telecom sector is
increasing day by day and all operators are in a run to increase their subscriber
base, at times tend to ignore the satisfaction level of the Retailers, who play a
vital role in delivering the end service to the customer. The operators in order to
lure customer, comes out with attractive customer schemes but in spite of
increase in their subscriber base and revenue, sometimes neglects the Retailers
satisfaction and profitability.
So this study is a one of a kind study where an attempt has been

made to know the Retailers preference and behaviour they show towards a
particular operator’s product and services and their level of satisfaction while
dealing with those.
VIII
INTRODUCTION
Whenever we talk of growth and development of a nation, hardly can there be
anyone who can ignore the vital contribution of Telecommunication sector. Today
it has become a lifeline for us, in the absence of which we feel we are separated
from the world at large. The importance of telecommunication product and
service has gone deep in the life of people that after three essentials of human
being i.e. food, shelter and clothing the fourth one that can be added comfortably
is the communication. A gadget and a service which can be found in everyone’s
palm ranging from rickshaw-puller to big businessmen. Now talking of India,
which is still a developing country, the importance of telecommunication as a
sector can be very well understood. Indian telecom sector has been doing
exceptionally well in the past decade. Its structural and institutional reforms have
provided tremendous growth opportunity to his sector. India has nearly 250
million telephone lines making it the third largest network in the world after China
and USA. With a growth rate of 45%, Indian telecom industry has the highest
growth rate in the world. And in this context whenever we talk of mobile
telephony, Vodafone as a brand must be taken in to account. Nowadays there is
lot of competition between different telecom operators who in order to add more
subscriber base to the existing figures comes out with attractive customer
schemes and virtually there is a tug of war between operators to get more market
share. But in this fierce competitive war to get more subscriber base, many a
times the Retailers who play a vital role in the whole chain of sales and who
influence customers for a service provider are sometimes ignored. So from this
study an attempt has been made to understand the psychology, behaviour,
preference and satisfaction at the Retailer level. In this competitive market for a
service provider to get an edge over other operator, in addition to other prevailing
factors a operator must clearly understand the behaviour, preference and
satisfaction level of Retailers, which will help them to design effective strategies
to get more sales and increase subscriber base and shift push sales to pull sales.
The study delves into how the Retailer behaves and their expectation level from
a particular service provider and how it can be effectively managed.
1|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

COMPANY PROFILE
Vodafone Group Plc
Public (LSE: VOD,

Type
NYSE: VOD)
Founded 1983 as Racal Telecom, independent 1991
Headquarters Newbury, England, UK
Vittorio Colao, CEO

Key people Sir John Bond, Chairman
John Buchanan, Deputy Chairman
Industry Mobile telecommunications
Products Mobile networks, Telecom services, Etc.
Revenue £35,478 million (2008)
Operating income £10,047 million (2008)
Net income £6,756 million (2008)
Employees 72,375 (2008)
www.vodafone.com.
Website

HISTORY OF VODAFONE
Company Beginnings
Original Corporate Logo of Vodafone.

Vodafone itself was formed in 1982 as a joint venture between Racal Electronics
plc's subsidiary Racal Strategic Radio Ltd (who won one of two UK cellular
telephone network licences) along with Millicom and the Hambros Technology
Trust. In this arrangement Racal owned 80%, Millicom 15% and Hambros 5%.
The network was known as Racal Vodafone, with the Vodafone name being
derived from the firm's goal of establishing a voice and data services over cellular
telecommunication networks. Hence VO represented voice and DA symbolized
data — yielding the name Vodafone.
Vodafone was launched on 1 January 1985 and later that year Racal Strategic
Radio was renamed Racal Telecommunications Group Limited in 1985. A year
later, on 29 December 1986 Racal Electronics bought out the minority
shareholders of Vodafone for GB£110 million. In September 1988 the company
was again renamed Racal Telecom and on 26 October 1988 Racal Electronics
floated 20% of the company — a flotation that valued Racal Telecom at GB£1.7
billion. On 16 September 1991 Racal Telecom was demerged from Racal
Electronics as Vodafone Group and the mobile telephony giant was born.
During the mix 1990s Vodafone began to consolidate itself on the British high-
street. In July 1996 Vodafone acquired the two thirds of Talkland it did not
already own for £30.6 million. On 19 November 1996, in a defensive move,
Vodafone purchased Peoples Phone for £77 million, a 181 store chain whose
customers were overwhelmingly using Vodafone's network. In a similar move the
company acquired the 80% of Astec Communications that it did not own, a
service provider with 21 stores. This made Vodafone a very visible presence on
the British high street and significantly increased the company's share of UK
mobile customers.
New Corporate Logo of Vodafone as of 1997.
In 1997 Vodafone introduced its new corporate Speechmark
logo. This represents a quotation mark within a circle. With
the 'O's in the Vodafone logotype being opening and closing
quotation marks, suggesting conversation.

Vodafone Group the world specialist in mobile phones, Vodafone Group (British)
is one of the rare groups that have significant world coverage in the
telecommunications field. It principally specializes in the mobile telephony and
telephonic transmission network sectors. It has subsidiaries in numerous
countries: In North and South America, Asia, Oceania and Africa. Better known
by its former name, Vodafone Air Touch, it has become the leading mobile phone
operator in Germany, Britain and the USA (Verizon Wireless). And there are a
whole series of holdings: SFR, Swiss Mobile, Vodafone K.K. (Japan), 100% of
Vodafone Ireland, 100% of Vodafone Spain and 99 of Vodafone Netherlands etc.
The group offers services from mobile phones to customized communication
services (call management, message services) and supplies data management
equipment: Internet, Modems, fax, directories and telemetric servers. Vodafone
Group Plc (Vodafone) is engaged in providing service, such as voice, messaging,
data and fixed line and others. Voice services include provision of mobile voice
communications. Messaging include text, picture and video messaging using
mobile devices. Date services provide e-mail, mobile connectivity and Internet on
Your mobile. Fixed lines provide customers with fixed broadband and fixed voice
and date solutions. Other services include mobile advertising and business
managed services, as well as incoming roaming and wholesale mobile virtual
network operators. On December 30, 2008, Vodacom Group (Pty) Limited
(Vodacom) acquired the carrier services and business network solutions
subsidiaries of Gateway Telecommunications SA (Pty) Ltd. In January 2009,
Verizon Wireless completed its purchase of Alltel Corporation from Atlantis
Holdings LLC. On April 20, 2009, the Company acquired an additional 15% stake
in Vodacom. On May 18, 2009, Vodacom became a subsidiary of the
Company.The Vodafone Group is the mobile telecommunications company with
the most significant presence around the world. It has over 303 million customers
calculated on a proportionate basis in 31 countries and the brand is present in a
further 40 countries through partnership networks. In an increasingly connected
world, we intend to be a global communications operator capable of responding
to all our customers’ needs, whether it’s using a mobile, a fixed line or
broadband, building on the know-how and experience that we have acquired in
the mobile sector. Through our services, customers are able to lead fuller lives at
home or at work, benefiting from irresistible, innovative mobile communications,
mobile-PC convergence and fixed communications services. We are committed
to making it possible for our customers to use the services they are used to, no
matter how they access them and with a simple and transparent usage
experience. We are in the forefront of the definition of mobile voice and data
services throughout the world and are constantly exploiting new technologies.
We also differentiate ourselves in terms of our prices by offering customers the
most transparent and competitive price plans in the market. With roaming calls,

for example, we pass on to the customer the advantages of being part of a global
operator. The Group's principal activity is providing voice and data
communications services. Through its mobile businesses, the Group provides a
range of mobile communications services including voice, text messages, picture
messages and other datas. The Group is also focusing on developing total
communications solutions for customers broadband connectivity. The Group
operates in Europe, the Middle East, Africa, Asia, Pacific & the United States.
Vodafone Group is a mobile tele-communications company. The company has a
significant presence in Europe, the Middle East, Africa, Asia Pacific and the
United States. In the United States the Group’s associated undertaking operates
as Verizon Wireless.
The name Vodafone comes from Voice data fone, chosen by the company to
"reflect the provision of voice and data services over mobile phones."[2]As of
2009 Vodafone had an estimated 303 million customers in 25 markets across 5
continents.[3] On this measure, it is the second largest mobile telecom group in
the world behind China Mobile.In the United States, Vodafone owns 45% of
Verizon Wireless, the largest wireless telecommunications network in the United
States, based on number of subscribers.
Global Enterprise is a business set up by Vodafone with the sole purpose of

handling Vodafone's multinational clients. It is the high end business to business
section of Vodafone group, and acts like an operating country (such as for
example Vodafone UK). Devices and services available in any operating country,
are available to Global Enterprise customers in the same country, and so
Vodafone Global Enterprise are able to offer a wide range of products. Vodafone
Global Enterprise have a presence in over 65 countries and this number is
expected to grow in future, as with the recent aqcuisition of Ghana Telecom.
Since its foundation in 2007, Global Enterprise has aimed to be a world leader in
managed mobility services. Vodafone Global Enterprise are headquartered in
Newbury, but do have operatives around the world; while many of Vodafone's
marketing employees are relocated to London, Global Enterprise' team will
remain in Newbury.Nick Jeffery leads Vodafone Global Enterprise. He led the
creation of Vodafone Global Enterprise in 2007 and continues to define the
strategy and operational execution for Vodafone's relationship with multi-national
corporate customers. Global Enterprise have a dedicated group of account
managers, at both global and national levels, who look after customers needs,
and are supported by pre-sales and technical consultancy teams.Products and
Services include Enterprise Central, Telecomms Management, Global Device
Portfolio and Managed Mobility Services. In 2009 Vodafone Global Enterprise
was the winner of Best Mobile Enterprise Service at the GSMA Global Mobile
Awards 2009.
VODAFONE – INDIA
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
16 telecom circles of the country, which covers around 86% of the customer
mobile base in India. 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.
Vodafone Essar Limited has received many awards over the years such as the
Best Mobile Service in India, Most Effective and Most Creative Advertiser of the
Year, and Most Respected Telecom Company. The Vodafone Essar subscriber
bases in the cities of India are:
Kolkata - 1,632,875
Mumbai - 2,989,970
Delhi - 3,002,442
Chennai - 981,996
The company Vodafone Essar Limited plans to spend more than Rs.250 crore in
launching low price cell phones in India. The company's objective in doing this is
to bring in millions of cheap mobile handsets from around the world into the
country and then sell them under the Vodafone brand name in order to maximize
sales. It is expected that the company Vodafone Essar Limited will price the
handsets in the range of Rs.666, Rs.999, and Rs.888. In this way the company
expects to attract new customers and thus expand its customer base that stands
at 35 million in 2007. Vodafone Essar plans to sell the low price handsets from its
4 lakhs distribution outlets. The company will buy the low cost cell phones from
the firm ZTE that is located in China. The Company ZTE will ship more than 10
million low cost cell phones to India that will then be sold by the company
Vodafone Essar. Vodafone Essar Company also has plans to expand in the near
future and for this it is planning to take a loan overseas of around US$ 500
million. The company Vodafone Essar Limited will use the money to expand the
company's network, better its technology, and open more distribution centers. All
these measures will help to increase the customer base of the company
Vodafone Essar. Vodafone Essar is one of the topmost companies in the telecom
sector in India and is well known for the best quality of products and services
offered to its customers. And this is the reason that the customer base of the
company Vodafone Essar Limited has been increasing at a very rapid pace. The
company is planning to launch low price cell phones in the country and also
expand its operations. This is sure to help the company Vodafone Essar to grow
and prosper even more in the future.Vodafone Essar, previously Hutchison Essar
is a cellular operator in India that covers 23 telecom circles in India[1] . Despite
the official name being Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage
throughout India with good presence in the metros. Vodafone Essar provides
2.75G services based on 900 MHz and 1800 MHz digital GSM technology,
offering voice and data services in 23 of the country's 23 licence areas. It is
among the top three GSM mobile operators of India.
Ownership
Vodafone Essar is owned by Vodafone 52%, Essar Group,33% and other Indian
nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of

67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping
Reliance Communications, Hinduja Group, and Essar Group, which is the owner
of the remaining 33%. The whole company was valued at USD 18.8 billion.[2] .
The transaction closed on May 8, 2007.In December 2006, Hutch Essar re-
launched the "Hutch" brand nationwide, consolidating its services under a single
identity. The Company entered into agreement with NTT DoCoMo to launch i-
mode mobile Internet service in India during 2007.The company used to be
named Hutchison Essar, reflecting the name of its previous owner, Hutchison.
However, the brand was marketed as Hutch. After getting the necessary
government approvals with regards to the acquisition of a majority by the
Vodafone Group, the company was rebranded as Vodafone Essar. The
marketing brand was officially changed to Vodafone on 20 September 2007.On
September 20, 2007 Hutch becomes Vodafone in one of the biggest brand
transition exercises in recent times.Vodafone Essar is spending somewhere in
the region of Rs 250 crores on this high-profile transition being unveiled
today.Along with the transition, cheap cell phones have been launched in the
Indian market under the Vodafone brand. The company also plans to launch co-
branded handsets sourced from global vendors as well. A popular daily quoted a
Vodafone Essar director as saying that "the objective is to leverage Vodafone
Group's global scale in bringing millions of low-cost handsets from across-the-
world into India."

Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the
country, is expected to provide several Vodafone handsets in India. Earlier this
year, Vodafone penned a global low-cost handset procurement deal with ZTE.
In 2008, Vodafone acquired the Licence in remaining 7 circles and has started its
pending operations in Madhya Pradesh/ Chhattisgarh with its headquarters at,
Bhopal as well as in Orissa, Assam, North East and Bihar.
India operations continue to contribute significantly to the Vodafone Group

financial performance. The JV with Essar in India witnessed revenues of 2.6
billion pounds for last fiscal at 41.6% growth. Voice revenues grew by 42.2 % to
2.2 billion pounds while revenues from messaging totalled 85 million pounds at
25 % growth. Data revenues surged by 42.3 % to 148 million pounds.
Vodafone Essar , Fiscal Highlights

Fiscal 2008-09 Fiscal 2007-08
Revenue 2689 Mn Pound 1822 Mn Pound
Voice Revenues 2241 Mn Pound 1515 Mn Pound
Messaging Revenues 85 Mn Pound 65 Mn Pound
Data revenues 148 Mn Pound 97 Mn Pound
Others 130 Mn Pound 76 Mn Pound
Voic Usage 65276 Mn Min 46734 Mn Min
ARPU In INR In INR
Total Rs.274 Rs.350
Postpaid Rs.815 Rs.910
Prepaid Rs.229 Rs.287
The company has more than 68 million in the country at the end of March 31,
2009. Churn rate for the company in total reached 25.2 % with prepaid
witnessing 21.2 % churn and postpaid more than 28 %. The average monthly
revenue per user dipped to Rs 274 from Rs 350, a year ago. For postpaid the
ARPU dipped to Rs 815 from Rs 910 while for prepaid it reached to Rs 229 from
Rs 287.The company is now gearing up to speed up its cost cutting measures.
The company expects to register operating profit of 11 billion pounds to 11.8
billion pounds in the current fiscal.

VODAFONE – ASSAM
Vodafone launched it services in Assam on 10th September, 2008 along with its
operation in whole north east circle. Vodafone initially started with 10 towns in
assam and 4 towns in NE, Currently in Assam vodafone has entered 22 towns.
By the year end Vodafone is planning to have its presence in all the major towns
of Assam & NE.
The circle office is located at, Agni Shanti Business Park, Ambari,Guwahati,
headed by Mr. Anand Sahai .
MARKET SCENARIO
Operators April’09 May’09 % Growth

Reliance 1425863 1425863 NIL
BSNL 891616 898328 0.75
Airtel 1622477 1684159 3.8
Aircel 1808533 1880377 3.97
Vodafone 190474 231625 21.6
Total 5938963 6120352 3.05
From the above figures it can be found out that in terms of growth Vodafone has
21.60% which is the highest which means in new acquisitions Vodafone is doing
good in this market. The total market share of Vodafone in Assam is nearly 4%.
Facts and figures

Total Revenue - Rs. 2.27 crores
ARPU - Rs. 204.65.

** (figures from COAI final report Oct-Dec ‘08)

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

• Private Indian owned companies like - Reliance Infocomm and Tata
Teleservices.
• Foreign invested companies like – Vodafone-Essar, Bharti Tele-Ventures,
Idea Cellular, BPL Mobile, Spice Communications etc.
The Indian Telecom Industry services are not confined to basic telephone but it
also extends to internet, broadband (both wireless and fixed), cable TV, SMS,
IPTV, soft switches etc. The bottlenecks for Indian Telecom Industry are: Slow
reform Process. Low-penetration. Service provider’s bears huge initial cost to
make inroads and achieving break-even is difficult. Huge initial investments
Limited spectrum availability and interconnection charges between the private
and state operators.
Key Players In Indian Telecom Industry
The telecom industry of India has registered manifold growth in the recent years.
Personalized telecom access is essential necessity of life for increasing number
of the people. The sector offers unlimited prospects when we consider future
growth. Both Public Players and Private Players are enhancing their technologies
10 | P a g e “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”
and taking the telecom industry to a much higher growth state. Not only service
providers but also handset manufacturers are contributing significantly to the
industry and economy of India.
The top players in the industry are:
1) Reliance Communications Limited

2) Bharti Airtel Limited
3) BSNL
4) MTNL
5) Vodafone Essar
6) Ericsson
7) Nokia
8) Siemens Communications
9) Idea Cellular Limited
10) Tata Teleservices
THE DEAL – VODAFONE AND HUTCH
The deal, at last, is done. After weeks of uncertainty, Britain's Vodafone

announced on February 11,2007 that it had decided to pay $11.1 billion in cash
and assume $2 billion in debt to buy a 67% stake in Hutchison Essar, one of
India's largest mobile operators with more than 22 million subscribers.
Vodafone's purchase of the controlling interest in Hutchison Essar -- or Hutch, as
it is commonly called -- from Hong Kong-based shipping and real estate baron Li
Ka-Shing values the company at nearly $19 billion, which is twice as much as the
first round of bidders in January thought it was worth. Four days later, the Aditya
Birla group's Idea Cellular -- another large mobile phone services provider with
12.4 million subscribers -- found more than $27 billion in investor money bidding
for its stock during the company's initial public offering, which had intended to
raise some $480 million. The IPO was oversubscribed by 57 times, according to
media reports. As both transactions show, India's mobile phone market is red hot
-- which begs the question whether it is too hot. Are these enormous valuations
justified by the market's growth potential? India Knowledge @Wharton spoke to
faculty members from Wharton, the Indian School of Business, and other experts
to find out. Their view is that while it might appear that these transactions are
overvalued, the market has lots of growth potential. As such, a shakeout -- if it
occurs -- is unlikely in the near future.

Telecom Regulatory Authority of India
TRAI AND ITS ROLE.
The Telecommunications Regulatory Authority of India or TRAI (established

1997) is the independent regulator established by the Government of India to
regulate the telecommunications business in India.
Responsibilities
Notwithstanding anything contained in the Indian Telegraph Act, 1885, the

functions of the Authority shall be to:
1. make recommendations, either suo motu or on a request from the

licensor, on the following matters, namely:
i. need and timing for introduction of new service provider;
ii. terms and conditions of license to a service provider;
iii. revocation of license for non-compliance for terms and conditions of
license:
iv. Measures to facilitate competition and promote efficiency in the
operation of telecommunication services so as to facilitate growth in
such services.
v. Technological improvements in the services provided by the service
providers.
vi. type of equipment to be used by the service providers after
inspection of equipment used in the network.
vii. measures for the development of telecommunication technology
and any other matter relatable to telecommunication industry in
general;
viii. efficient management of available spectrum;
2. discharge the following functions, namely:
i. ensure compliance of terms and conditions of license;
ii. notwithstanding anything contained in the terms and conditions of
the license granted before the commencement of the Telecom
Regulatory Authority (Amendment) Ordinance,2000, fix the terms
and conditions of inter-connectivity between the service providers;
iii. ensure technical compatibility and effective inter-connection
between different service providers.
iv. regulate arrangement amongst service providers of sharing their
revenue derived from providing telecommunication services;
v. lay down the standards of quality of service to be provided by the
service providers and ensure the quality of service and conduct the
periodical survey of such service provided by the service providers
so as to protect interest of the consumers of telecommunication
services;

vi. lay down and ensure the time period for providing local and long
distance circuits of telecommunication between different service
providers;
vii. maintain register of interconnect agreements and of all such other
matters as may be provided in the regulations;
viii. keep register maintained under clause (viii) open for inspection to
any member of public on payment of such fee and compliance of
such other requirement as may be provided in the regulations;
ix. ensure effective compliance of universal service obligations:
3. levy fees and other charges at such rates and in respect of such services
as may be determined by regulations.
4. perform such other functions including such administrative and financial
functions as may be entrusted to it by the Central Government or as may
be necessary to carry out the provisions of this Act:
o Provided that the recommendations of the Authority specified in the
clause (a) of this sub-section shall not be binding upon the Central
Government:
o Provided further that the Central Government shall seek the
recommendations of the Authority in respect of matters specified in
sub-clauses (i) and (ii) of clause (a) of this sub-section in respect of
new license to be issued to a service provider and the Authority
shall forward its recommendations within a period of sixty days from
the date on which that Government sought the recommendations:
o Provided also that the Authority may request the Central
Government to furnish such information or documents as may be
necessary for the purpose of making recommendations under sub-
clauses (i) and (ii) of clause (a) of this sub-section and that
Government shall supply such information within a period of seven
days from receipt of such request:
o Provided also that the Central Government may issue a license to a
service provider if no recommendations are received from the
Authority within the period of specified in the second provision or
within such period as may be mutually agreed upon between the
Central Government and the Authority.
o Provided also that if the Central Government having considered that
recommendation of the Authority comes to a prima facie conclusion that such
recommendation cannot be accepted or needs modifications, it shall, refer the
recommendations back to the Authority for its reconsideration, and the
Authority may within fifteen days from the date of receipt of such reference,
forward to the Central Government its recommendation after considering the
reference made by the Government. After receipt of further recommendation, if
any, the Central Government shall take a final decision.

NEW TELECOM POLICY-1999
Availability of affordable and effective communications for the citizens.
• To achieve a teledensity of 7 by the year 2005 and 15 by the year 2010; to

improve rural teledensity from the level of 0.4 to 4 by the year 2010.
• Create a modern, efficient and world class Telecommunications
infrastructure taking into account the convergence of IT, Media, Telecom
and Consumer Electronics.
• Convert Public Call Offices (PCO’s) into Public Tele-info Centers having
multi-media capability like ISDN Services, Remote Database Access,
Government and Community Information Systems etc.
• Transform in a time-bound manner, the Telecommunications Sector to a
greater competitive environment in both urban and rural areas providing equal
opportunities and level playing field for all players.
• Strengthen Research and Development efforts in the country and provide an
Impetus to build world class manufacturing capabilities.
• Protect Defence and Security interest of the country.
• Enable Indian Telecom Companies to become truly Global Players.
• This Policy frame work focuses on creating an environment, which enables
continued attraction of investment in the sector and allows creation of
Telecommunications infrastructure by leveraging on Technological
developments.
• The New Telecom Policy frame work looks at the Telecom Service Sector as
follows:
• Cellular Mobile Service Providers, Fixed Service Providers and Cable
Service Providers, collectively referred to as ‘Access Providers’.
• Radio Paging Service Providers.
• Public Mobile Radio Trunking Service Providers.
• National Long Distance Operators.
• International Long Distance Operators.
• Global Mobile Personal Communication by Satellite (GMPCS) Service
Providers.
• VSAT Based Service Providers.
• Other Service Providers.
DISPUTE RESOLUTION IN TELECOM SECTOR
With a view to provide a level playing field in a competitive environment, the

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

FUNCTIONS OF TDSAT
The TDSAT is Empowered to adjudicate any dispute between:
• Licensor and a Licensee.

• two or more Service Providers.
• a Service Provider and a Group of Consumers.
The Appellate Tribunal shall be guided by the Principles of natural justice and
have powers to regulate its own procedure.
The Appellate Tribunal has the same powers as are vested in a Civil Court,
while trying a Suit, in respect of following matters, viz.,
• Summoning and enforcing the attendance of any person and

examining him on oath.
• Requiring the discovery and production of documents.
• Receiving evidence on Affidavits
• Requisitioning any public record or document or a copy of such
record or document from any office.
• Issuing commissions for the examination of the witnesses or
documents.
• Reviewing its decisions.
• Dismissing an application for default or deciding it, ex-parte.
• Setting aside any order of dismissal of any application for
default or any order passed by it, ex-parte, and
• Any other matter which may be prescribed.
Not withstanding anything contained in the Code of Civil Procedure, or any other
Law, an Appeal shall lie against any Order, not being an Interlocutory Order, of
the Appellate Tribunal to the Supreme Court of India on one or more of the
grounds specified in Section 100 of that Code. The Appellate Tribunal consists of
a Chair-Person and two Members appointed by the Central Government.The
Selection of Chair-Person and Members of the Appellate Tribunal is made by the
Central Government in consultation with the Chief Justice of India.
COMPETITION AND VODAFONE
The operator ended the year with revenues of £2,689 million. However, business
environment is becoming increasingly tough with competitive pressure growing.
Vodafone’s average revenue per user declined by as much as 28% during the
year. Driven by a strong growth in India, mobile operator Vodafone Group
Plc today reported 16.7 per cent increase in operating profit at 11.8 billion pound
in its worldwide operations for the year ended March 31, 2009. Vodafone Essar,
the British group's Indian venture, reported a 33% growth in revenue on a pro
forma basis, with growth in the fourth quarter of 27.7% at constant exchange
rates. Net customer additions in India averaged 2.1 million per month, and the

launch of services in seven new circles, bringing the closing customer base to
68.8 million. According to the data released by the group on Friday, the
company’s Indian operators ended the year with revenues of £2,689 million
against £1,822 million during the previous year. EBITDA grew by 5% on a
pro forma basis. While the India continues to add millions of subscribers every
month, competitive pressure too is growing and Vodafone felt it throughout
the year. Lower effective rates per minute and fall in usage per
customer, increase in licensing costs (as discounts received from the regulator
in some service areas were terminated) were among the factors that
put pressure on growth, the company said in a statement. Vodafone’s
average revenue per user (ARPU) declined by as much as 28% during the year.
In the first quarter of the year, ARPU was Rs. 350 while in the last quarter it was
Rs. 274.On the positive side, customer costs as a percentage of
revenue decreased, benefiting from economies of scale. Visitor revenue grew at
a slower pace due to the impact of economic pressures as people travel less.
Lower effective rates per minute, reflecting price reductions earlier in the year,
coupled with the continued market shift to lifetime validity prepaid offerings, led to
a reduction in customer churn. Also, infrastructure sharing has played a
significant role in helping Vodafone sustain growth, especially in the fourth
quarter. The operator benefited significantly from its network sharing venture
Indus Towers, which launched during the first half of the year. “Growth in the
fourth quarter in India remained stable in comparison to the third quarter as the
eight percentage point benefit of the new revenue stream from the network
sharing joint venture offset the slowing underlying growth rate,” the company
said. The company invested £1.4 billion in capital expenditure in India to drive
growth or around 17% of the total group spending of £5.9 billion. Network
expansion continued, with an average of 2,600 base stations constructed per
month, primarily in the new circles. Site sharing increased and Indus Towers
steadily increased its operations throughout the rest of the year, with 95,000 sites
under its management at the end of March 2009. "We have continued to drive
penetration in India, generating strong revenue growth from our brand and
commercial offers and a substantial investment in network coverage. Indus
Towers, our infrastructure joint venture with Bharti and Idea, began
operating during the financial year. We expect Indus Towers will enable
Vodafone to increase its capital efficiency in India and also to benefit
from revenue generated from selling capacity to other operators,” the
company said in the statement released on Friday. Vodafone is expecting India
to continue to drive growth this year as well. As such, it will continue to invest
significantly in India. Capital expenditure is expected to be similar to last year
after adjusting for foreign currency.

CHAPTER- III
Vodafone - Operations
This section explains how Vodafone operates, from the key assets it holds to the
activities it carries out to enable the delivery of products and services to the
Group’s customers.
TECHNOLOGY & RESOURCES PEOPLE BRAND & DISTRIBUTION PRODUCT and

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

3G
Vodafone’s has 3G networks in some countries but in India it is still awaiting

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

Vodafone’s products and services are available directly, via Vodafone stores and
country specific Vodafone websites, and indirectly via third party service
providers, independent dealers, distributors and Retailers, to both consumer and
business customers in the majority of markets under the Vodafone brand.
Vodafone
Primary Sales
Disributor
Secondary Sales
Retailer
Tertiary Sales
Consumer
DISTRIBUTION AND CHANNEL OF SALES AT VODAFONE
Vodafone distribution channel in India normally contributes roughly 85-90 % of

total business volumes.
The distribution Model comprises basically comprises of three entities-
1. A distributor who is given a territory to service.

2. A Distributor FOS (“Feet on Street” on payroll of the distributor) who is
appointed by the distributor to service a particular area of his overall territory.
3. A Retailer who is an entity who purchases stock from the distributors.
Through the FOS of his area) and sells it to the end consumer.

Other channels like Company owned Retail such as Vodafone ministores &Vodafone stores are
also used as Distribution channel and are generally seen to be contributing to around 10-15 % of
a telecom company's subscriber base as well as revenues.
Vodafone- Products & Services
The product and services of Vodafone in India may be primarily divided into
following categories:
• VOICE
• MESSAGING
• DATA
• FIXED LINE
• HANDSET
• VODAFONE MOBILE CONNECTS.
Now these services can again be categorised into two segments o the basis of
realisation of the price from the customer.
• PREPAID
• POSTPAID
In Assam Vodafone has however not launched its all the service as it has just
started its operation here. However the following services are available for
consumers in Assam.
• VOICE
• MESSAGING
• DATA
• HANDSET
• VODAFONE MOBILE CONNECTS.
HANDSETS
Now regarding handsets, Vodafone has various models in offering for its
customers at affordable prices. Some models are:-
Model Price (Rs)

Vodafone Colour Magic box with speaker 1299.00
Vodafone Magic box with torch 1199.00
Radio Magic box 226 FM 1599.00
Radio Magic box 225 FM 1599.00
Colour Magic box 1299.00
Black and White Magic box 1199.00
Flip Magic box 227 1899.00
Slider Magic box 228 FM 2399.00

The products offered in Assam are as follows:-

CHAPTER-IV
RESEARCH METHODOLOGY
Research Objectives:-
• To understand the Retailers preference in telecom sector
telecom Sector.
• To study the service providers and their service quality in the
telecom Sector.
• To study the Retailer satisfaction and understand the current
Market scenario in Telecom Sector.
Samples:-
Sample size : 150
Sample frame : Guwahati city
Sampling Method : Stratified random sampling
Constraints : Time, number of respondents
Sampling error : Non-response- 35
Response- 115
Survey : Questionnaire

OBSERVATION AND FINDINGS
1. SALES FREQUENCY
A) Which company’s sales person visits you the the most?
Operator Airtel Aircel BSNL RTL Vodafone

As per need 3 8 21 8 3
Daily 77 64 11 50 73
Once 2 3 35 4 1
Thrice 17 23 20 31 23
Twice 2 3 13 7 1
Total 100 100 100 100 100
Percentage of sales person’s visit to the Retailers.
From the above date we can analysis we can easily find out that the daily visit of
Airtel’s sales person is the highest. From a Retailers point of view, it is always
expected that the sales person of a company i.e (FOS & DSE) gives him a daily
visit. So from this analysis it can be clearly found out that Retailer’s are most
satisfied with Airtel and Vodafone in terms of sales frequency. So here Airtel is
ahead with a daily visit of 77% to the retailers followed closely by Vodafone with
73%. However Aircel is also very close with 64%. But both BSNL and Reliance
are very far behind ,having 11% and 50% respectively are far from Airtel and
Vodafone in terms of sales frequency, and as such Retailers are not very
satisfied working for the said companies.

B. SALES PERSON (FOS/DSE)
Which company’s sales person is better as compared to other?
As per the data gathered, it can be analysed that Airtel’s sales person is the best
sales person which can be inferred from bar chart where Airtel has got 34% and
is followed by Vodafone with 29%. Whereas Aircel with 22%, Reliance with 12%
and BSNL with 3% are lagging behind in terms of Retailer satisfaction with these
company’s sales person. The major reasons behind the fact that Airtel is the
clear winner in case of sales person can be summarised as; Airtel’s sales person
are a good listener, they inform in advance about the schemes to the Retailer,
provide quick service and are efficient, are co-operative and helpful, have quick
problem solving ability, receives Retailers call and reverts back in time, behaves
like a friend, educates and update Retailers about various schemes and product,
resolves complaints quickly, whenever needed visits the Retailer twice in a day,
has got serious attitude towards his job, behaves decently, and if at times need
provides credit to the Retailer for a single day in case of Easy-Recharge. So here
we can clearly see that higher the visit of sales person, the more satisfied the
retailer is. So sales frequency has a direct co-relation with the satisfaction level of
the retailers. This can be ascertained by looking into the first chart where sales
frequency has been depicted.

2.PRICING
Which company has got the best pricing?
From this analysis it can be gathered that in terms of pricing the clear verdict of
Retailers goes to Vodafone with 56%. The other service provider are a no match
to Vodafone strong pricing strategies with Airtel having 20% , Aircel with 14%,
Reliance with 9% and BSNL having just a meagre 1% of Retailers verdict. The
major reasons behind the fact as to why Retailers have voted for Vodafone as
having the best pricing is that presently Vodafone is having an edge over other
operators because of its good offerings and customer schemes with new
connection like,
• Rs.10 inbuilt talk time,

• Chalta rahe valdity
• 200 minutes free Vodafone to Vodafone calls
• Rs. 39 bonus cad free.
And all this are free with every Rs.99 new prepaid connection.Whereas no other
operator is offering so much with Rs.99 new prepaid connection. This is the
reason why most Retailers said that Vodafone’s product is worth the value and is
appropriately priced.

3.PRODUCTS WORTH THE VALUE AND APPROPRIATELY PRICED
Which company’s product and services are worth the value and are appropriately
priced?
WORTH THE VALUE AND APPROPRIATELY PRICED

70
VODAFONE, 59
60
50
40
30
BSNL, 20
20
RTL, 10 AIRCEL, 10
10
AIRTEL, 1
0
Now from the responses given by the Retailers it is clear that Vodafone’s product
and services are worth the value and are appropriately priced with 59%. Here it
can be very clearly seen from the bar chart that according to the Retailers
surveyed no other company’s product are either worth the value or are
appropriately priced when compared to Vodafone. BSNL with 20%, Reliance and
Aircel with 10% each and Airtel just surviving with 1%. The reason for such fact
can be accredited to the fact that Vodafone has got the best pricing strategies
among all other operators which has already been discussed earlier.

4.PRODUCTS EASY TO SELL.
For Retailers which company’s product is easy to sell.
PRODUCTS EASY TO SELL

50
45 AIRTEL, 43
40
35
30 VODAFONE , 28
25
20 AIRCEL, 17
15 RTL, 11
10
5 BSNL, 1
0
As per the data it can be analysed that for 43% Retailers Airtel’s product is very
easy to sell with , followed by Vodafone at 28%, Whereas Aircel is at 17%,
Reliance at 11% and BSNL at only 1%.
Now surprisingly in the earlier question only 1% of retailer agreed that the Airtel
has product worth its value, but even then most retailer are saying that Airtel
products are easy to sell.
After going through the open-ended questions the major reasons underlying such
response can be found out to be are:-
• Good demand from customers

• Price supported by good network availability in the state
• Fast processing of documents i.e fast verification and activation
• Easy for Retailers to convince customers
• Satisfied customers bring new customers
• Activation of sim card within the same day
• No network congestion providing more customer satisfaction.
• Good relationship from the FOS.

5.OVERPRICING OF PRODUCTS.
Which company’s product is considered overpriced?
Regarding overpricing of products and services Retailers feel that Reliance

products and services are overpriced with 37% closely followed by Airtel at 29%
whereas BSNL at 20%, Aircel at 13% and Vodafone only at 1%. This clearly
corroborates the earlier response where Retailers found that Vodafone products
are appropriately priced. The major reason why Reliance is voted as having the
most overpriced product and services are that Reliance provides less customer
benefits in other words prices of products are more than benefits provided.
Moreover at Rs.50 connection there is no talk time and validity, RCV talk time
less than others, poor network availability, less availability of cards, network
congestion and customer harassment, Lifetime connection at Rs.199(far more
than others),service not according to price charged and regarding connection
sale Retailers margin is very less as compared to what competitors are offering.

6.PROFIT MARGIN
Which company is offering the best profit margin to the Retailers?
From the analysis it can be inferred that regarding profit margin Aircel is the clear
winner with 47%. Vodafone coming in the second with 25%, Airtel at 14%,
Reliance at 12% and BSNL at just 1%. The main reason for Aircel becoming the
winner is that it gives Rs.49 per connection to the Retailer who sells it to the end
customer for Rs.99, whereas at this margin even increases upto Rs.65 – 70
when Retailers schemes goes on. On the other hand Airtel offers just Rs.35 and
Vodafone offers Rs.40 to the Retailers for each new connection being sold by the
Retailer.

7.BETTER REAL PROFIT.
With which companies product Retailers are able to get better real profit and are
able to charge premium.
From the chart it is clear that with Aircel at 47% the Retailers are able to get
better real profit and charge premium. Vodafone is at 27% while Airtel at 17%,
Reliance at 10% and BSNL at just 1%. Here the reason for such figures can be
corroborated with those gathered for profit margin. It clearly suggest that
Retailers are able to get better real profit and are able to charge premium from
customers only for connections of those companies where the profit is the
highest.
8.EASY TO SELL AND LIKE TO SELL THE MOST.
Which company’s connection are easy to sell for the Retailer even when
there is low real profit and like to sell the most?

As per the research it was found out that Retailers feel that it is easy to sell Airtel
connection even if there is low real profit with Airtel getting 41% which is followed
by Vodafone at 25%, Aircel at 21%, Reliance at 12% and BSNL at 1%. Similarly
if we analyse the next bar chart we can see that majority of Retailers like to sell
Airtel connection where Airtel got 35% closely followed by Vodafone at 28%,
Aircel at 14%, Reliance at 13% and BSNL at 1%. The major reason as to why
Airtel is voted as the company whose connections are easier to sell even when is
low real profit and is liked by Retailers to sell the most are:-
• Easy to convince and sell

• Good network strength and availability
• More demand from customer
• No harassment for both Retailer an customer
• More Retailers turnover
The turnover with Airtel connection is more because the ratio of sale
between Airtel and Aircel i 3:2 that means for every 3 connection of
airtel only 2 connection of Aircel is sold.
So 3* Rs.35 = Rs.105 (for Airetl) whereas,
Its 2* Rs.49 = Rs.98 (for Aircel). In addition to these other reasons
are,
• Good schemes floated by Airtel
• Schemes easier to achieve and more help from co. In achieving targets
• Better service quality
• Fast processing in terms of verification,sim delivery and activation of sim
cards
• Timely availability of RCV and Esay-Recharge
• Less network congestion and
• Overall customer satisfaction.

9.PRODUCTS TOUGH TO SELL EVEN WHEN HIGH PROFIT.
Which company’s product is tough to sell for the Retailers even high profit
margin is there?
TOUGH THE SELL EVEN WHEN HIGH PROFIT

45
RTL, 40
40 BSNL, 36
35
30
25
20
15
VODAFONE, 9 AIRCEL, 10
10
AIRTEL, 5
5
0
As per the findings from the above chart it can be found out that Reliance with
40% has got the product and service which Retailers find the most difficult in
selling, followed by BSNL at 36%, Aircel at 10%, Vodafone at 9% and Airtel at
5%. So overall it can be said that Reliance and BSNL has got the products and
services which the Retailer find the most difficult in terms of sales. The major
issues underlying such verdict from the Retailers can be summarised as follows:-
• Less demand from customers

• Less benefits for customers
• Slow processing i.e verification and activation
• Late sim-card delivery
• Harassment to both Retailer and customer
• Poor and congested network
• Poor response from company people
• Lack of problem solving attitude of the co.people
• Network availability in limited places
• Poor margin doesnot motivate Retailers
• Less attractive schemes
• Poor claim settlement resulting in Retailers capital being blocked
• Price of rate cutters more
• Lack of frequent visit of sales person and their poor attitude
• Lack of card availability
• Poor service quality of the company
All these factors make both Reliance and BSNL the less preferred choice
of Retailers in terms of selling these companies product and services.

10. SCHEMES
Which companies Retailers schemes are better as compared to other,

easier to achieve and the Retailer equivalently helped by the company
people in achieving this schemes?
BEST RETAILERS SCHEMES

50
VODAFONE, 44
45
40
35
30
25 AIRCEL, 22AIRTEL, 23
20
15 RTL, 11
10
5
BSNL, 0
0
SCHEMES EASIER TO ACHIEVE

50
VODAFONE, 45
45
40
35
30
AIRTEL, 25
25
20 AIRCEL, 18
15 RTL, 12
10
5
33 | P a g e “Stud y
BSNL, 0
o f th e B eh av i o r o f T el eco m R eta i l ers ”
0
COMPANY HELPS THE MOST IN ACHIEVING SCHEMES
50
VODAFONE, 44
45
40
35
30 AIRTEL, 26
25
AIRCEL, 19
20
15
RTL, 10
10
5
BSNL, 0
0
Now if we analyse all the three charts in the row we can find out that in terms of
schemes Vodafone tops in all these three charts with,
• Best schemes - Vodafone - 44%

• Easy to achieve- Vodafone - 45%
• Co. Helps the most- Vodafone - 44%
Which is then followed by Airtel , Aircel, Reliance and BSNL.
On clearly analysing the open-ended questions the reason for such findings that
the schemes floated by Vodafone are better as compared to others, which are
easier to achieve and the company people from Vodafone also helps the
Retailers a lot in achieving Retailers target a lot, can be attributed to the fact that
Vodafone people co-operate with the Retailers and motivate them a lot.
Regarding schemes other company usually give away Easy-Recharge in place of
gift, but Vodafone give away gifts and cash most of the time which is liked by the
Retailers. Vodafone sales person informs the Retailers about the scheme in
advance ,which gives Retailers enough time to plan as to how to go for such
schemes and achieve it.
11. CLAIM SETTLEMENT.
With which companies claim settlement Retailer is most satisfied and with
whom most dissatisfied?
SATISFIED WITH CLAIM SETTLEMENT

50
VODAFONE, 44
45
40
35 AIRTEL, 32
30
25
20
AIRCEL, 15
15
RTL, 9
10
5
BSNL, 0
0
DISSATISFIED WITH CLAIM SETTLEMENT

40 RTL, 38
35
30
25
VODAFONE, 20
20 AIRCEL, 17
15 AIRTEL, 14
BSNL, 11
10
5
0
Claim settlement of schemes is also one another criterion of finding out the
satisfaction level of Retailers because of which they show particular kind of
behaviour while dealing with the products and services a concerned company.
Now if we analyse the first bar-chart relating to satisfaction in terms of claim
settlement we see that Vodafone is the clear winner with 44%, followed by Airtel
with 32% ,Aircel with 15% , Reliance with 9% and BSNL with none. The reason
for this is that Vodafone settles it claim with Retailers in the least possible time.
Out of 106 Retailers , 45 Retailers voted in favour of Vodafone. The average time
taken by Vodafone to settle the claim came at around 20 days which is good
when compared to others.
Now coming back to dissatisfaction in terms of claim

settlement regarding schemes Reliance tops the chart with 38%, followed by
Vodafone at 20%, Aircel with 17%, Airtel at 14% and BSNL with 11%. The
reason behind Reliance topping the chart in terms of dissatisfaction of Retailers
regarding claim settlement is that most of the distributors of Reliance are least
bothered for the Retailers once the scheme is over and the lack of proper attitude
from co. people to resolve Retailers issues relating to claim settlement. In
majority of the cases either the claim amount is pending for over six month period
of time or at times it has been alleged that sales person have cheated Retailers
of the amount the Retailers were about to receive.

12. SERVICE QUALITY.
Which company’s service quality is better as compared to other and with

company Retailer are satisfied being associated with and feel motivated to
influence customer for?
SERVICE QUALITY
AIRTEL,
45 41
40
VODAFONE, 34
35
30
25 AIRCEL ,
19
20
15
10 RTL, 6
5 BSNL, 0
0
RETAILER SATISFIED BEING ASSOCIATED WITH

45
AIRTEL, 39
40
VODAFONE, 34
35
30
25
20 AIRCEL, 18
15
10 RTL, 9
5
BSNL, 0
370| P a g e “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”
RETAILERS FEEL MOTIVATED TO INFLUENCE CUSTOMER FOR
45
40 AIRTEL, 39
35 VODAFONE, 34
30
25 AIRCEL, 21
20
15
10 RTL, 7
5
BSNL, 0
0
Satisfaction and dissatisfaction of Retailer regarding a particular service provider

largely depend upon the service quality of a particular telecom operator. Here
when we talk of service quality of a particular service provider it basically
comprises of five vital components or factors viz:-
• Companies fast responsiveness to a problem

• Company having helping attitude
• Company abiding by the time frame promised
• Company having empathetic look
• Company whose dealings are reliable
i.e basically to say the RELIABILITY,TIMELINESS,ATTITUDE,EMPETHY, and

,RESPONSIVENESS of a particular service provider.
Now if take all the three charts into account it is clearly visible that Airtel is the
best in terms of service quality and it scored on all these factors and parameters
well. Because of the reason that its service quality is best as compared to others
Retailers are satisfied being associated wih the company and they also feel
motivated to influence customers for Airtel. The percentage it scored in all these
three charts are :-

• Service quality - 41%
• Retailers satisfied being associated with - 39%
• Retailers motivated to influence customer for- 39%
Which is closely followed by Vodafone , Aircel, Reliance and BSNL.

The major reasons behind as to why Retailers voted Airtel in this parameter are :-
• Less harassment to both Retailer and customer

• Overall satisfaction to both Retailer and customer
• Problem solving attitude of company people
• Fast service and processing
• More turnoverfor Retailers
• Co-operative FOS and sales people
• Excellent distributor service
• Good network availability
• Less network congestion
• Fast response from FOS and DSE.

13. MOST IMPORTANT FOR RETAILER.
Which is the most important aspect for a Retailer from business point of view?
IMPORTANT FOR RETAILER FROM BUSINESS POINT OF

VIEW
60
NTWRK/SRV, 51
50
40
30
MRG&SCHM, 19 DSE & FOS, 19
20
DSTR SRVS, 11
10
From the survey an attempt was also made to find as to what is the most
important for a Retailer whether its the network or services of a service provider
or the Retailers own margin and scheme that he gets from a operator or whether
its the efficient service of a distributor which gives him an extra mile or its the
efficiency in service of the DSE or FOS. But analysing the chart we can find out
that majority of the Retailers vetoed for NETWORK and SERVICE of a service
provider which got 51% , followed by RETAILERS MARGIN AND SCHEME and
SERVICES OF DSE AND FOS at 19% and lastly comes the DISTRIBUTOR
SERVICE at 11%. The reason behind such response is that majority of the
Retailers feel that if the network and service of a operator are perfect other things
will follow themeselve.
The main aim behind framing such a question was to know as to what is the
hidden impulse of Retailers in general is, either it is only to earn profit or whether
they have any concern for the other allied services provided by a service
provider. Getting responses of such questions largely help marketers to get the
pulse of the Retailers and help them in designing appropriate strategies to
provide utmost satisfaction to both Retailers and end consumers.

14. AVERAGE AMOUNT SPENT IN A NEW CONNECTION.
What is the average amount that is spent by a customer in getting a new

connection and the usual amount of first recharge?
From the analysis of the data and response sheet it was found that presently in
Assam circle the average amount spent by a customer in getting a new prepaid
connection varies from Rs.49 to Rs.99. This is mainly because of the reason that
presently all the operators are floating nearly similar customer scheme whereby a
new prepaid connection is available at Rs.49 without any talk time and validity
and Rs.99 new prepaid rolling connection with inbuilt Rs.10 talk time. Some
service providers are giving additional benefits within the same retail price in
order to lure customers with attractive offerings.
Now regarding the average amount of first recharge out of the 115 Retailers’
surveyed response could only be gathered from 79 Retailers and after the
analysis it was found out that the average amount of first recharge is Rs.60. This
figure is only a indicative one as amount of first recharge varies from operator to
operator and any new scheme prevailing at the time when the new connection is
taken.
15. FACTS AND FIGURES RELATING TO HANDSETS
Which handset is mostly demanded by customer, the average amount a

customer wants to spend for it, the features normally a customer wants and
which handset the Retailer push or prefer selling the most?
From the survey conducted and from the analysis of the response of Retailers in
the Excel sheet following information has been gathered:-
Type of handset mostly demanded by the customer-
• VODAFONE HANDSETS
Average amount customer wants to spend –
• Rs. 1739 (Rupees one thousand seven hundred and thirty nine)
Features normally customers asks for –
• FM and COLOUR DISPLAY
Handset Retailers push or prefer selling the most –
• VODAFONE HANDSETS

The reason as to why Vodafone handsets are mostly demanded by the customer
is that , Vodafone are handsets are very well priced and with the Magic Box 225
customers are able to get handset along with sim card only at Rs.1299 and
moreover because of the reason that Vodafone handsets are compatible with sim
cards of other operator too .The average amount that a customer wants to spend
for a handset came at around Rs. 1740(approx) and within this price range the
features generally asked by the customer is that the handset should have colour
display and FM radio reception. The reason as to why most Retailers prefer
selling Vodafone handset is that it comes with two years replacement warranty
which gives both Retailers and the customers’ peace of mind. From the survey it
has also been found out that mostly the old and the aged customers gives a price
range to the Retailers while purchasing a handset and are not too much bothered
about the brand as to whether its Vodafone, Nokia or Haier. Whereas young
customers(i.e youth) generally prefer buying branded handsets, and are not too
much concerned about the price range.
16. MODUS OPERANDI OF THE RETAILER.
How you acquire more customers and what additional help do you need from a
service provider to increase your business further?
From the survey it was found out that, Retailers in order to acquire more new
customers generally do the following :-
• At times even sell RCV at credit
• Provide free connection
• Float schemes by reducing own margin
• Use canopy in nearby offices, colleges and organisations.
• Appointing sales person and generating lead
• Provide free service like photocopying of documents etc for

customer
• Provide SMS alert to selected customer

• Give free gits like Parker pen and T-shirts with postpaid connection
and small gifts with prepaid connection.
And regarding help from a particular service provider to increase their business
further they generally want the operator to do the following:-
• Should come up with more attractive Retailers schemes
• Should give credit on RCV and Easy-Recharge
• Should appoint new Retailers at a fixed distance i.e there should be

some amount of minimum distance between two Retailers
• Provide glowsign at the Retailers point and decorate the shop with
attractive advertisements
• Increase RCV margin
• More good schemes for customers, which will increase sales
• Fast processing(i.e verification, simdelivery & activation )
• Should upgrade profitable Retailers point as bill payment centre
• Efficient distributor service
• Should keep handset stock with Retailers
• Timely availability of cards
• Efficient FOS/DSE service.

CONCLUSION AND RECOMMENDATION
CONCLUSION
Now taking into account the observation and findings and considering the
parameters set in the questionnaire it can be concluded that out of the seven
essential parameters i.e,
• Sales Frequency
• Sales Person
• Pricing
• Profit Margin
• Schemes
• Claim Settlement and
• Service Quality;
in three parameters i.e Sales frequency, Sales person and service quality Airtel is
ahead, though it is closely followed by Vodafone.
In the other three parameters i.e pricing, schemes and claim settlement
Vodafone is ahead but closely followed by Airtel.
Whereas Aircel is ahead only in case of profit margin. So here we can clearly see
that both Vodafone and Airtel are focussing on better service quality as a sales
and distribution strategy, however for Aircel the primary strategy is to lure the
retailers with high profit margin.
From the observation and the findings of the survey it comes out clearly that the
retailers play a very vital role in acquiring customers by influencing their decision
making in favour of the service provider which the retailers likes the most.
It also comes out clearly that profit margin is not the only reason for which a
retailer sells a particular brand but other aspects such as service quality, pricing
of products and services, timely settlement of claims are equally important.
The survey also brings out clearly that even though Vodafone is very new entrant
to this market has pretty well occupied the mind share of the retailers with its

attractive pricing, quality service in terms of quick retailer claim settlement, good
service frequency and attractive retailer schemes.
However from the survey it has also clearly come out that no doubt being a new
entrant it has quite well garnered the faith and belief of retailers but there are
certain problem areas for Vodafone too. A segment of retailers feel that there is
more DSE/FOS churn in case of Vodafone as a result of which the retailers are
not able to build up a good bonding with them which is there in case of Airtel and
this can clearly be corroborated from the bar chart of sales frequency and sales
person.
Similarly another segment of the retailers feel that there is a scope of

improvement in the case of Vodafone’s distributor service. As it is a known fact
that for retailers the first point of contact is DSE/FOS who represent distributor,
so any of service in their part directly and proportionately effects the quality of
service of distributor which ultimately effects the service quality of the service
provider.
An another problem area identified with Vodafone is the network availability,

which is not there like other operators who have started their operations much
before Vodafone entered in this market. As a result of which retailer does not feel
comfortable in influencing a customer who needs extensive network within the
state. Along with this an another reason why retailers have ranked Vodafone as
next to Airtel is because of the fact of slow service and processing of documents,
whereby both retailers and customers face harassment in terms of verification,
sim delivery and activation.
So if these problem areas are being worked upon by the Vodafone there is every
possibility in the near future that Vodafone will definitely surpass all other
competitors and will be the preferred service provider of the retailers.

RECOMENDATIONS TO VODAFONE
After the completion of the whole survey and going through the observations and
findings, I would like to put forward certain opinions from my end, which will
definitely help Vodafone as a service provider to increase the satisfaction level of
retailers. My recommendations are:-
• Regarding sales frequency, Vodafone should try to increase the sales

frequency of its DSE/FOS. As they are the one who represents the
company in front of the retailers, so their regular visit highly impacts the
behaviour of the retailer and creates a better bonding between the retailer
and company.
• Vodafone should try to increase the efficiency of its sales person. Proper
training should be given to them where they should be told as how to
improve relation with the retailers, become a good listener, perform their
duties efficiently so that overall satisfaction level of retailers can be
increased.
• Now regarding the Service Quality, Vodafone should try to improve its
overall service quality by responding to the problems of retailers in time,
by incorporating a more helping attitude, by providing fast service and
having an empathetic look towards the retailers problem.
• There should be constant monitoring of the distributors activities as any

lapse in duties from their end highly effects the retailers and bring bad
name for the company. As from the survey it came to light that a lot of
retailers are there who just because of lack of proper distributor service
give away business to other rival service provider.
• Vodafone should try to stop frequent DSE/FOS churn done by the

distributors, which is not appreciated by the retailers. Because of high
DSE churn retailers feel that they are not able to have a proper bonding
with them which is most required to serve the customers well.
• From the survey it also came to light that Vodafone is slow in processing
(i.e verification, simcard delivery and activation) as a result of which
retailers face harassment and do not feel motivated to influence
customers for Vodafone. As a result of which lot of business for Vodafone
actually gets churned away to other operators who provide fast
processing. So Vodafone should also try to improve upon this factor.
• Vodafone as a new entrant should try to match the network availability

with other operators operating within the state,in the absence of which
retailers find it difficult to convince customers on the ground of network
coverage.

ABBREVIATIONS
VAS- Value Added Service
WAP- Wireless Application Protocol
DoT- Department of Telecom
TRAI- Telecom Regulatory Authority of India
BSNL- Bharat Sanchar Nigam Limited
GSM- Global System for Mobile communications
COAI- Cellular Operators Association of India
GPRS- General Packet Radio Service
DSE- Distributor sales Executive
FOS- Feet on Street
RTL- Reliance Telecom Limited
TDSAT- Telecom Dispute Settlement Appellate Tribunal
CDMA- Code Division Multiple Access
RCV- Re-Charge Voucher
SMS- Short Messaging Service
SIM- Subscriber Identification Module
MTNL- Mahanagar Telephone Nigam Limited

BIBLIOGRAPHY
Books:
Management Research Methodology, by

K.N.Krishnaswamy, Appa Iyer Sivakumar, M.Mathirajan
Reports:
COAI Report of May’ 09

COAI Report of Quarter Oct-Dec’08
Articles:
Thesis on “Critically analyze the customer preference and satisfaction

measurement in Indian Telecom Industry”by
Naman Shah, submitted at IIPM, Ahmedabad.
Websites:
1. www.vodafone.in
2. www.dot.gov.in
3. www.google.com
4. www.trai.gov.in
5. www.coai.com
6. www.wikipedia .org
7. www.scribd.com
8. www.thehindubusinessline.com

ANNEXURES
1. Questionnaire for Retailers.
2. Response collected and analysed in Excel Sheet.
3. Tariff chart for Prepaid.
4. Tariff chart for Post-paid.
5. List of Retailers visited.

Study of The Behaviour of Telecom Retailers

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Summer Training Report

“STUDY OF THE BEHAVIOUR OF THE TELECOM RETAILERS”

VODAFONE ESSAR SPACETEL Ltd, GUWAHATI

Roll No. 08DM076

Under the guidance of

Prof. (Dr) SAMARENDRA MAHAPATRA

As a Partial Fulfilment of PGDM Programme of IMIS

Institute of Management & Information Science

Chapter III 17-20

I hereby declare that this project on “STUDY OF THE BEHAVIOUR OF THE

Signature of the student

Roll No. 08DM076

It is my pleasure to extend my deep gratitude to Prof. (Dr) Samarendra

I am deeply indebted to Mr. Amitabh Ranjan, Zonal Business Manager of

COMMERCIAL VIABILITY OF THE STUDY

The secondary source basically consisted of books, internet, articles, magazines,

The development of the telecom sector has experienced a major process of

So this study is a one of a kind study where an attempt has been

1|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

Vodafone Group Plc

Public (LSE: VOD,

Founded 1983 as Racal Telecom, independent 1991

Headquarters Newbury, England, UK

Vittorio Colao, CEO

Industry Mobile telecommunications

Products Mobile networks, Telecom services, Etc.

Revenue £35,478 million (2008)

Operating income £10,047 million (2008)

Net income £6,756 million (2008)

Employees 72,375 (2008)

2|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

Original Corporate Logo of Vodafone.

3|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

4|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

Global Enterprise is a business set up by Vodafone with the sole purpose of

On February 11, 2007, Vodafone agreed to acquire the controlling interest of

7|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

India operations continue to contribute significantly to the Vodafone Group

Vodafone Essar , Fiscal Highlights

8|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

Operators April’09 May’09 % Growth

Total 5938963 6120352 3.05

Facts and figures

ARPU - Rs. 204.65.

9|Page “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

• State owned companies like - BSNL and MTNL.

Key Players In Indian Telecom Industry

The top players in the industry are:

1) Reliance Communications Limited

THE DEAL – VODAFONE AND HUTCH

The deal, at last, is done. After weeks of uncertainty, Britain's Vodafone

11 | P a g e “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

The Telecommunications Regulatory Authority of India or TRAI (established

Notwithstanding anything contained in the Indian Telegraph Act, 1885, the

1. make recommendations, either suo motu or on a request from the

12 | P a g e “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

13 | P a g e “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

Availability of affordable and effective communications for the citizens.

• To achieve a teledensity of 7 by the year 2005 and 15 by the year 2010; to

DISPUTE RESOLUTION IN TELECOM SECTOR

With a view to provide a level playing field in a competitive environment, the

14 | P a g e “Stud y o f th e B eh av i o r o f T el eco m R eta i l ers ”

The TDSAT is Empowered to adjudicate any dispute between: