Documente Academic
Documente Profesional
Documente Cultură
SUBMITTED BY:
DECLARATION
Acknowledgement
I would like to express my sincere gratitude towards Mr. Praveen
Malik, H.O.D. of MBA Dept., GBIT , Meerut
am
extremely
grateful
to
my
esteemed
project
guide,
Mr. Praveen Malik, H.O.D. of MBA Dept., GBIT , Meerut for giving
me an opportunity to work with him and his indispensable help and guidance
throughout this project and for inspiring me to strive to achieve the best in
difficult situations.
While doing the project I visited many companies in Delhi region and
met many senior personnel. I would like to extend my special thanks to all of
them for sparing their time to patiently answer the questions and giving their
views.
Preface
This project had been undertaken for COMPARATIVE STUDY OF
Table of Contents
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57
74
76
79
92
94
96
98
101
Introduction
Introduction
"TELECOMMUNICATIONS IS THE BACKBONE OF OUR FUTURE
ECONOMY. INTERNATIONAL COMPETITIVENESS INCREASINGLY
DEPENDS ON THE DEVELOPMENT OF A TELECOMMUNICATIONS
INFRASTRUCTURE THAT IS COMPATIBLE WITH INTERNATIONAL
STANDARDS. "
The cellular industry all over the world has been witnessing very high growth
rates in subscriber base in recent years. For developing countries in particular,
cellular services are becoming a very significant proportion of the overall
telecom infrastructure. The mechanics of competition within this market
involve complex feedback effects between individual service providers and
with their operating environment, and these forces play an important role in
governing the growth of this industry.
In a country like India which is not yet telephone-saturated and the ongoing
changes in related areas are resulting in a rapidly changing profile of users,
providers and their respective needs, continuous revision of the telecom
policy is imperative. Given the emerging new technologies and the integrating
economies there must be fairness among competitors.
The tele-density in India is about four per hundred people in respect of the
fixed telephones and a little less than one in respect of the mobile telephony.
The low densities are not because there is no need for a telephone but because
of its high cost that many cannot afford that one. The situation here is nothing
but holding true of the law of demand. Isnt it?
The cost for the companies can come down if the revenue share imposed on
them as a condition of license is abolished or drastically reduced. Today every
telephone company is bound to pay a share out of its revenue to the
exchequer. These costs are, however, not to be scheduled to take a step further
in the development of the telecom. In addition when we go through the
telephone bill there is a 5 to 8% service charge. This amount also does not go
for the telecom development. If these external cost are removed there can be
seen a spurt in demand of not less then 40% as expected.
While taking the side of suppliers a lot of new companies are coming into the
battlefield resulting in reduction of prices and hence a little less burdensome
on to the customer. The cost of interconnection with the incumbent is proving
to be contributory to the high cost of services provided by the competitors.
The delay in the interconnection disregards the quality of service and high
cost will detract from affordability. This is an area in which no consumer body
can knowledgeably contribute unless it has the assistant of experts or
economists who alone can discover all the relevant fact of all the contesting
companies. It indicates the pre-eminent domain of TRAI (Telecom Regulatory
Authority of India).
As the driven down of the prices for long distance including international
services reduces the amount available for subsidizing the local service, the
rental for local services are being increased. Considering that about 90% of the
long distance calls are made by less than 20% of customers, 80% of customer
are having to pay higher rental this depresses the demand for telephones and
affordability. The urban business subscribers will be bearing the bond of the
subsidies to be given to the rural private consumers.
History of Cellular Telephony in India:
The technology that gives a person the power to communicate anytime,
anywhere - has spawned an entire industry in mobile telecommunication.
Mobile telephones have become an integral part of the growth, success and
efficiency of any business / economy. The most prevalent wireless standard in
the world today, is GSM. The GSM Association (Global System for Mobile
Communications) was instituted in 1987 to promote and expedite the
adoption, development and deployment and evolution of the GSM standard
for digital wireless communications.
The GSM Association was formed as a result of a European Community
agreement on the need to adopt common standards suitable for cross border
European mobile communications. Starting off primarily as a European
9
standard, the Groupe Speciale Mobile as it was then called, soon came to
represent the Global System for Mobile Communications as it achieved the
status of a world-wide standard. GSM is today, the world's leading digital
standard accounting for 68.5% of the global digital wireless market. The
Indian Government when considering the introduction of cellular services
into the country, made a landmark decision to introduce the GSM standard,
leapfrogging obsolescent technologies / standards. Although cellular licenses
were made technology neutral in September 1999, all the private operators are
presently offering only GSM based mobile services. The new licensees for the
4th cellular licenses that were awarded in July 2001 too, have opted for GSM
technology to offer their mobile services.
Cellular Industry in India
The Government of India recognizes that the provision of a world-class
telecommunications infrastructure and information is the key to rapid
economic and social development of the country. It is critical not only for the
development of the Information Technology industry, but also has
widespread ramifications on the entire economy of the country. It is also
anticipated that going forward, a major part of the GDP of the country would
be contributed by this sector. Accordingly, it is of vital importance to the
country that there be a comprehensive and forward looking
telecommunications policy which creates an enabling framework for
development of this industry.
10
The entry and license fees varied according to the service area, highest for
metros and lowest for Category-C circles. Some of the CMSPs could not fulfill
their licensing obligations and their licenses were revoked leading to a
monopoly situation in certain areas. Apart from these charges, each CMSP has
to share the revenue with the long distance operators for carrying interservice area calls. In profitable metros and circles, the competition is severe
and the market is split between the two operators. In a price-cap regulated
market, the operators use appropriate pricing strategy to win customers and
win market share.
In highly price-elastic markets, such as in India, as the service provider
reduces the price, the subscriber base increases considerably, and so is the
network traffic. The increased network traffic decreases the performance and
the quality of service, inviting customers to switch. Being a new entrant in a
metro area, the government operator reduced the airtime charges to such an
extent that the subscriber base increased suddenly leading to poor network
performance. The operator did not have enough network capacity to handle
calls leading to blocking of calls, with frustrated customers switching over
immediately to competitors.
The operators also have to resort to non-pricing competition strategies to win
customers. In India, CMSPs offer a variety of service plans as a means to
attract new customers. Different service plans include: pre-paid calling card
schemes, discounted airtime rates for evening and night time calls, discounted
roaming charges, no or minimum activation fees, and reduced mobile to
mobile long distance call rates.
The service providers incur additional advertising and infrastructure cost for
implementing these plans. Short Message Service (SMS) and Wireless
Application Protocol (WAP) service are fast catching up. For example, in
India, about 500,000 SMS messages are being carried by a service provider in
one metro area alone. When the sector moves over to an oligopoly market, the
operators have to provide improved quality of service and value added
services in order to survive and gain market share.
11
13
This means that the cellular operators are encouraging their subscribers to not
just receive calls, but also make calls increasing the usage of the service.
With falling tariffs, cellular operators are convinced that increasing usage is
one way to ensure that average revenue per user (ARPU) does not fall very
low. The industry figure for ARPU is believed to be about Rs.1,100 while it
may vary from operator to operator. The operators are also concentrating on
introducing more value added services to the customers. Value-added
services have not really taken off. Only the SMS (short messaging service) has
really caught on, but operators like Bharti are bringing in services like music
messaging and concierge facility for its subscribers.
14
15
Company Profile
AirTel
&
Vodafone
16
Wireless by conduction
1843:
1865:
1879:
1880:
1880 - 1900:
1910:
1924:
1937:
17
2126.7 million
1999:
1999:
2000:
2000 :
About Bharti
Bharti Tele-Ventures is a private sector telecommunications services
provider with an aggregate of over 17.53 million customers as of
December 2005, consisting of more than 16.33 million mobile
customers. The company is the only operator to provide mobile
services in all the 23 circles in India and also provides telephone
services and Internet access over DSL in 15 circles. The company also
has a submarine cable landing station at Chennai, which connects
the submarine cable connecting Chennai and Singapore and is part of
the consortium, which jointly owns and has developed the next
18
20
Business Description
Provides mobile, broadband & telephone (fixed line) and enterprise
services (carriers & services to corporates)
Established
21
Proportionate Revenue
Rs. 117,255 million (year ended March 31, 2006 Un-audited)
Rs. 81,558 million (year ended March 31, 2005-Audited)
The company is a part of Bharti Enterprises, and is India's leading
provider of telecommunications services. The businesses at Bharti
Airtel have been structured into three individual strategic business
units (SBUs)
Mobile services,
Broadband & telephone services (B&T) &
Enterprise services.
The mobile services group provides GSM mobile services across India
in 23 telecom circles, while the B&T business group provides
broadband & telephone services in 90 cities. The Enterprise services
group has two sub-units - carriers (long distance services) and
services to corporate. All these services are provided under the Airtel
brand.
OPERATIONS
22
Bharti
Enterprises
Bharti Teletech
Bharti
Televentures
Bharti Global
Bharti
Infotrac
Bharti
Foundation
Infotel
Mobilit
y
Mobile
Services
Bharti
Healthcare
Broadband
and
Telephone
Services
Long Distance
Services
23
Enterprise
Services
OPERATIONS Contd..
BHARTI TELEVENTURES LIMITED
MOBILE
SERVICES
Delhi
Mumbai
BROADBAND AND
LONG DISTANCE
TELEPHONE SERVICES
Madhya Pradesh
SERVICES
National Long Distance
Tamil Nadu
All India
International
Distance
Long
Landing
Station Chennai
Maharashtra
Gujrat
T.N.
Kerala
Haryana
U.P. (West)
U.P. (East)
M.P.
W.B. & A&N
Bihar
Assam
N.E.
Jammu
Karnataka
Haryana
Delhi
Himachal Pradesh
Kashmir
Orissa
A.P
Karnataka
Punjab
Chennai
Kolkata
H.P.
Rajasthan
24
25
in
the
country,
first
Indian
company
to
provide
26
27
Bharti Teletech
Introduction
Today Bharti Teletech is major PTT supplier in South Asia. It has also
ISO 9002 accreditation and also an OEM for Sprint Corporation and
Siemens. Its range of products marketed under the Brand name
Beetel constitute a 30% market share in India thereby making it the
market leader in the domestic market.
Bharti Teletech has also found a growing market in Russia, Singapore,
Sri Lanka, Romania, Bahrain, Qatar, Jordan, Dubai, Yemen, Oman,
Uganda, Nigeria, Tanzania, Seychelles, Zimbabwe, South Africa and
USA.
28
Global Services
Making an entry into the International market, Bharti is the first
Indian company to get a license to provide comprehensive telecom
services outside India, in the island country of Seychelles and hence
develop the expertise to provide Telecom services overseas.
Bharti Healthcare
Healthy alliances to provide healthy solutions
29
One sector where quality implies the saving of lives and the promotion
of healthy living. Offering quality support to the pharmaceutical
industry. Bharti healthcare has been engaged in the manufacture of
empty hard Gelatine capsules since 1982.
30
AIRTEL
Airtel comes to you from Bharti Cellular Limited - a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range
of telecom services, which include Cellular, Basic, Internet and recently
introduced National Long Distance. Bharti also manufactures and exports
telephone terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first company to
export its products to the USA. Bharti is the leading cellular service provider,
with a footprint in 23 states covering all four metros and more than 8 million
satisfied customers.
Airtel & Visual Identity
For a brand to be successful, it must build enduring relationships with its
different audiences. Integral to this relationship is the visual image of the
brand the consumer carries in his/her mind. The Airtel brand image is
created through the consistent application of a carefully developed visual
identity, which helps Airtel distinguish itself in a cluttered market. Airtel's
visual identity helps create instant brand recall and strengthens the
relationships that its audiences have with it.
The Airtel visual identity has different elements that work together to create a
strong and consistent identity for the brand. The most important of these are:
The Airtel Logo
The Airtel logo is a strong, contemporary and confident symbol for a brand
that is always ahead of the rest. It is a specially drawn world mark.
31
BHARTI TELE-VENTURES
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting
investments in telecommunications services. Its subsidiaries operate telecom
services across India. Bharti Tele-Ventures is India's leading private sector
provider of telecommunications services based on a strong customer base
consisting of approximately 11.84 million total customers which constitute,
approximately 10.98 million mobile and approximately 857,000 fixed line
customers, as of March 31 , 2005
32
Corporate Structure
Mobile Division
Overview
Bharti Tele-Ventures vision for its mobile business is To make mobile
communications a way of life and be the customers first choice.
The mission is to meet the mobile communication needs of the customer
through 1) error free service 2) Innovative products and services and 3) cost
efficiency. The Companys strategic objective is to consolidate its leadership
position amongst the mobile service providers in India.
The Indian mobile market, according to the COAI, has increased from
approximately 1.2 million subscribers as of March 31, 1999 to approximately
41.03 million subscribers as of March 31, 2005.
Despite this rapid growth, the mobile penetration rate in India, at
approximately 3.9% as of March 31, 2005, is significantly lower than the
average mobile penetration rate in other Asian and international markets.
The number of mobile subscribers in India is expected to show rapid growth
over the next four years. By 2006 it is projected at 50 million by COAI and 44
million by Gartner.
33
Bharti Tele-Ventures believes that the demand for mobile services in India will
continue to grow rapidly as a result of the following factors:
Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM
services in all the twenty-three telecom circles in India. It proposes to
consolidate all its subsidiaries providing mobile services under Bharti
Cellular Limited.
As of March 31, 2005, 100% of India's total mobile subscriber market resided
in the Company's twenty three mobile circles, which collectively 100% of
India's land mass.
Accomplishments
34
First off the block to launch fixed-line services in all the four circles of
Delhi, Haryana, Karnataka and Tamil Nadu.
35
Vision
To be globally admired for telecom services that delight customers.
Mission
We will meet global standards for telecom services that delight
customers through:
36
Long Distance
Now experience complete freedom like never before with Airtel! Our National
Long-Distance facility allows you to make long distance calls in India and
Overseas from your cellular phone. This service is applicable to both Postpaid
and Prepaid customers.
37
38
39
Easy Billing
Now enjoy the luxury of viewing details of your last 3 billing cycles and the
convenience of paying your Airtel bill online! Experience complete freedom
with Airtel!
Subscription Services
With Airtel's Subscription Services, you can subscribe for cool alerts at the
click of a button! What's better is that you can receive updates automatically
on your Airtel phone without requesting everyday.
40
41
THE BRAND
The Airtel visual identity has different elements that work together to create a strong
and consistent identity for the brand. The most important of these are:
THE AIRTEL LOGO
The Airtel logo is a strong, contemporary and confident symbol for a brand that is
always ahead of the rest. It is a specially drawn wordmark.
42
The title case lettering with its capital 'A' was deliberately chosen to reinforce the
brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on
innovation. The words 'Express Yourself' are very much part of the brand identity.
The lettering is grey so that the pure black of Airtel is visually unharmed.
BUSINESS TOOLS
Mobile Office
Stay in touch when on the move with Mobile Office
Singtel, Singapore
AIS, Thailand
Smartone, Hongkong
Smart Phillipines
T-mobile , UK
AT&T , USA
T-Mobile , USA
CSL, HongKong
O2, UK
Microcell , Canada
Vodafone, Italy
44
Era, Poland
Now send & receive multi media messaging on Airtel. Just like SMS
Service send and receive MMS on GPRS enabled phone from anyone
anywhere in the world. Customer can also receive Multi Media
Messages even if Customer do not have a GPRS/MMS enabled phone;
Subscriber can simply log on to airtelworld.com and check the mms.
Airtel Live
Customer
can
dial
Fun
Portal
646
and
download
ring-
the near by
retailer where ever in India he/ she is and according the plan which is
prevailing in his/her zone can get the recharge.
46
Before the launch of Airtel Music shops the retailers were using the
ERC-1 Sim or LAPU 1.But as the music shops were launched. All the
LAPU 1 sim has been replaced by LAPU 2 sim with a Special feature of
Easy VAS (Value Added Services) added to it.
As the company was the first one to step into the world of Music. It
has provided the full opportunity to its retailers To Serve More and To
Earn More.
The company projected all its retailer outlets as the music shops that
interact with the customers directly at grass root level. Now the
retailer sells the music to customer as the hello tune and the ring
tone.
Why is Airtel Introducing this Product?
1. Customers demanding more and more new services.
2. Competition eager to provide every possible service to
Customers.
3. AIRTEL always ready to give customers what they
Want. Their aim is to Convert expression to reality.
47
The Airtel visual identity has different elements that work together to
create a strong and consistent identity for the brand. The most
important of these are:
48
49
SENDER
BTS
BSC
HLR
MSC
VLR
AVC
BSC
CDR
BTS
50
RECIVER
BTS - Base transceiver station
51
CALLER (AIRTEL)
BTS
BSC (AIRTEL)
MSC(AIRTEL)
HLR
BSC
52
BTS
RECIVER (AIRTEL)
53
AIRTEL 2 OTHERS
CALLER (AIRTEL)
BTS
BSC (AIRTEL)
MSC(AIRTEL)
54
HLR
MSC (Others)
BTS
RECIVER (Others)
55
56
ROAMING
CALLER (AIRTEL)
BTS
BSC (AIRTEL)
MSC (AIRTEL)
HLR
57
VLR
MSC (REGIONAL)
BSC
BTS
58
RECIVER (Others)
59
Ernst & Young Entrepreneur Of The Year 2004, Ernst & Young
61
62
the first cellular operators in the world, having started its services way back in
1985.
It is part of the Hong Kong based multinational conglomerate Hutchison
Whampoa Limited, a Fortune 500 company, and one of the largest companies
listed on the Hong Kong Stock Exchange. Its operations span 36 countries
across the Asia Pacific region, Europe and the Americas.Hutchison affiliates
jointly account for the largest number of cellular subscribers in India
numbering over 2 million. Hutch is brought to us by Hutchison Telecom, one
of the worlds leading cellular service providers. But in Delhi, it is the follower
with 2.18 lakh subscribers to Air Tels 3.28 lakh subscribers (Businessworld,
May 7, 2001) .Today the total number of mobile subscribers to Hutch are 1.96
million. (Business Today, 5th Jan 2003)
Today, in India, Hutch becomes Vodafone. Now, the pink color logo of
Hutch will be replaced by Vodafone Essars corporate red colored one.
In 2005-06, the Orange brand in Mumbai was phased out to introduce Hutch.
The company also changed the colors of its logo from orange to pink last year.
After acquiring 67 per cent of stake (around Rs. 250 crores) in Hutchison Essar
from Hong Kong-based Hutchison Whampoa, Vodafone Essar is expecting to
63
Asim Ghosh, MD, Vodafone Essar, said Weve had a good innings as Hutch
in India and today marks a new beginning for us, not as a departure from the
fundamentals that created Hutch, but an acceleration into the future with
Vodafones global expertise.
64
The values are stated simply. To be fair and transparent in what they do and
how they do it. To provide the quality services with more customer friendly
practices. To make ones communications experience simple, pleasurable and
fun. Where he doesn't simply get technology - but technology that is relevant.
Where solutions are not just promised in the future - but delivered in the
present.
Vodafone Logo
SERVICES
Staying connected becomes a lot easier with Vodafone. We have a wide range
of services you can access right from your Vodafone phone. From cell banking
to flight updates to call management services, get all that you want, instantly.
65
SMS
Message your family and friends through Vodafone SMS Services. It's
convenient and affordable. Communicate with cell phone users in over 100
countries and anywhere in India - by sending and receiving text messages.
Pay just Rs. 1.50 per message for sending SMS anywhere across the country.
SMS Chat
Now, you can chat on your Vodafone phone with as many people as you want.
Its fun and as simple as sending an SMS. Your identity will remain
anonymous as your phone number is never displayed during the chat. You
can have your own profile and chat name.
You can also create your own chat rooms or chat in the different rooms that
already exist including: Teens, 20s, 30s, Office, Bollywood, Delhi.
66
All you have to do is type in your messages and send them to 2428. You will
be charged Rs. 2 per outgoing message. Incoming messages are free.
Vodafone Online
Get all the useful information you need directly on your Vodafone phone with Vodafone Online. Including cricket, finance, entertainment, weather,
astrology and more.
MTNL Directoy
67
With this facility you can get to know the address and telephone no. of MTNL
users.you will be charged Rs.2 per outgoing message.
For every ringtone downloaded, you will charged Rs. 7.00 (including the cost
of SMS sent). For every logo/picture message downloaded, you will charged
Rs. 3.00 (including the cost of SMS sent).
68
Vodafone now offers you two exciting ways to send messages. You can make
your message flash directly on your recipients screen instead of the inbox.
You can also highlight the important parts of your message through blinks. So
your text messages become not only more visible, but more effective too.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Dial-in Services
Vodafone brings you more conveniences at your fingertips. Use our Dial-inServices to check cricket scores, horoscope, up-to-the minute news and other
relevant information on services that touch your everyday life.
69
Service
NDTV Online
Number
123
Info Line
301
Dial-n-Deliver
306
Cricket Online
123
Tarot Line
314
Cell Rashi
315
Dial-a-Pizza
303
Dial-a-Cab
335
123
There are occasions when you may not want to take a call, or your Vodafone
phone maybe busy or simply unreachable. By paying a nominal monthly
access fee, you can now retrieve your messages at your convenience. Even if
you are roaming, you can retrieve your messages from your voice mailbox
through a fixed line, anywhere on earth.
You can check your caller's telephone name and number on your phone
screen whenever you receive a call. This gives you the flexibility to either
accept or reject an incoming call. This service is also helpful in identifying
your missed calls.
You can access this service by just paying Rs. 49 per month, if you are a
postpaid customer. This service is absolutely free if you are a Vodafone
Prepaid customer.
Itemized Billing
As a Vodafone Postpaid customer, you can choose to receive an itemized bill
at the end of each month. This is a detailed billing statement which helps you
keep track of all your calls. Your itemized bill includes:
Origin of the call
Destination of the call
Duration of the call
Toll charges
Airtime and total charge
This service enables you to constantly keep in touch with your office,
colleagues and information sources. You can send or receive faxes and
transmit data using your Vodafone phone anytime, anywhere. Whether you
are
operating
from
home,
hotels
or
airport
lobbies.
At speeds of up to 9600 bps within the network or while roaming. You can
even access the Internet.
All you need is a handset compatible data card (PC Card) or a GSM Software,
and a data chord cable with a PC to set up a mobile office.
You can also opt for either Vodafone Fax or Vodafone Data services
independently.
Your Vodafone fax number can help you differentiate between incoming voice
calls and fax transmissions. You can also send and receive faxes anywhere on
72
earth
with
your
Vodafone
phone.
By opting for the Vodafone Data Services you can access e-mail, databases and
the
Internet.
All
on
your
single
incoming
data
number.
Charges to activate the Vodafone Fax and Data service, you just need to pay a
one-time activation fee of Rs. 500. To access the Fax service, the fee is Rs. 250.
The usage charges are nominal at Re 1 per minute.
There may be occasions when you need to conference with up to six people at
a time or talk to just two. Or you are speaking to someone and want to
forward an incoming call to another phone. With your Vodafone phone, you
can do this and more.Vodafone helps you manage your calls effortlessly so
that you stay in control of your conversations, always.
Voice Response
makes your life more convenient. You can get the latest updates on news,
stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1
minute pulse).
Voice Messaging
Voice Messaging has become even more affordable. You can now send voice
messages to cellular phones as well as fixed telephone lines in USA or Canada
for just Rs.3.95 per min*
min earlier).
Voice messages within India across select networks will cost you Rs. .95 per
min only. Also, recipients of the cellular Voice Messaging service have the
option of replying back to the messages, which get returned back as return
Voice Mail messages, facilitating two-way (though not simultaneous) voice
communication.
You do not have to wait to get a PC to use the Yahoo! Messenger. With the
exclusive Vodafone-Yahoo! tie-up, you can easily get connected through your
74
authorization requests. All this and more just by using SMS. You will be
charged Rs. 2 per outgoing message. Incoming messages are free.
Cell Banking
Vodafone now puts the bank in your pocket with Cell Banking. Access your
bank account and transact directly on your Vodafone phone by sending text
messages.
The first of its kind in India, this service enables you to conduct your banking
without
You
can
having
do
Cell
to
visit
Banking
the
bank
from
over
or
90
making
countries
call.
worldwide.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Roaming
75
Now you can always stay connected, no matter where you are. With the
Vodafone Roaming facility, you can use your Vodafone phone in over 100
countries worldwide and over 1000 cities, towns and highways across India.
Vodafone
Roaming
makes
life
easy
and
convenient
for
you.
Your Vodafone phone number and PIN number remains the same whether
you are in Delhi, Chandigarh, London, Paris or anywhere else in the world.
Roaming on Vodafone Prepaid gives you the most extensive coverage in over
1000 cities, towns and highways across India, and in over 100 countries
around the world. Enjoy Roaming on your Vodafone Prepaid card and stay
in touch wherever you go.
this service as it is based on SMS. So gain freedom from your PC and access
your Yahoo! mails anytime, anywhere on your Vodafone phone.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
WAP
With WAP, you can have the Internet directly in your pocket. So if you are
looking for quick and easy delivery of information and services, your
Vodafone phone can show it all. Use it to check out news, finance, shopping,
entertainment, travel, entertainment and city service information etc.
To access this service all you need is a WAP enabled handset and WAP
services activated on your Vodafone phone.
This service comes to you at a nominal charge of Re. 1 per minute (1 min
pulse).
Group Messaging
77
can
send
your
message
to
all
your
friends
at
one
go!
With Group Messaging from Vodafone, you can thus save yourself the bother
of painstakingly sending your message to one person at a time whether you
are on Vodafone Prepaid or Postpaid.
Vodafone4help
Vodafone4help now lets you take advantage of a lot more services than before.
You can connect to the nearest fire brigade or mechanic or florist or even order
a pizza. If you are stranded in the middle of the road, or if you you need
immediate medical attention or if you are looking for a police station close by,
Vodafone4help gives you instant access to your nearest source of help,
anywhere in Delhi or the NCR.
All the help services are charged@Rs.6/min. while for police and fire help
only local airtime charge is applicable.
78
79
80
Research Methodology
81
Research Methodology
Scope
The given project is to analyze the overall satisfaction of subscribers
with their mobile service provider. The scope for the research is not
very big. The area or say the premises of the researcher was Delhi
region.
Research Design
A research design is purely and simply the framework or plan for a
study that guides the collection and analysis of data. The survey
research was used in this project, because consumers feedback was
necessary for obtaining the data.
Data Sources
Primary data was collected by the questionnaire based market survey.
In this survey 100 AIRTEL and 100 VODAFONE mobile users were
surveyed.
Secondary data was obtained from journals, magazines, newspapers,
books and of course the Internet.
Research Instrument
For doing the survey research, structured questionnaire with both
open-ended and closed-ended questions was used.
Mode of Survey
The mode of survey was personal interview with the respondents
during the filling up of the questionnaires.
Sample Size
A sample size of 200 respondents is used for the study.100 AIRTEL and
100 VODAFONE customers were contacted and interviewed.
82
Sample Unit
This study was basically an opinion survey of the residents of Delhi
who are cell-phone users regarding their views on the cellular service
providers.
Place of Study
Delhi region.
83
84
Spending per
Month
70%
68%
58%
60%
50%
40%
30%
31%
23%
20%
10%
0%
6%
8%
2% 1%
2% 1%
Airtel
Vodafone
Upto Rs.500
68%
58%
Rs.501-1000
23%
31%
Rs.1001-2000
6%
8%
Rs.2001-3000
2%
2%
1%
1%
Upto Rs.500
Rs.1001-2000
Rs.501-1000
Rs.2001-3000
85
90%
83%
76%
80%
70%
60%
50%
40%
30%
20%
20%
11%
6%
10%
0%
3%
0%
Same Day
Next Day
2-3 Days
Airtel
83%
11%
6%
0%
Vodafone
76%
20%
3%
1%
Airtel
1%
Vodafone
This shows that 83% of Airtel and 76% of Vodafone subscribers got their sim
activated the same day of purchase while others had to wait for next day and
some for 3 days also. This is really a trouble for subscribers waiting for
activation.
86
53%
50%
40%
30%
20%
13%
15%
11%
14%
15%
18%
10%
0%
Very Satisfied
Satisfied
Satisfied to an Extent
Dissatisfied
Airtel
61%
13%
11%
15%
Vodafone
53%
15%
14%
18%
This show that only 61% of Airtel users and 53% of Vodafone users are very
satisfied with tariff charges.15% of Airtel and 18% of Vodafone users are
dissatisfied with tariff which could lead them to shift to other cell operator
providing lower tariff.
87
73%
67%
70%
60%
50%
40%
30%
15%
20%
18%
10%
10%
0%
8%
7%
2%
Very Satisfied
Satisfied
Satisfied to an Extent
Dissatisfied
Airtel
73%
15%
10%
2%
Vodafone
67%
18%
8%
7%
73% of Air Tel and 67% of Vodafone users are very satisfied with network.
Only 2% of Airtel users are dissatisfied which show that their network is best.
7% of Vodafone users reported dissatisfaction because of poor signals or no
signals in basement.
88
89%
90%
81%
80%
70%
60%
50%
40%
30%
20%
8% 10%
10%
0%
3%
Very Satisfied
Satisfied
6%
0%
3%
Airtel
89%
8%
3%
0%
Vodafone
81%
10%
6%
3%
89% of Airtel and 81% of Vodafone users shown great satisfaction from SMS
service.3% of Vodafone users shown dissatisfaction because of late delivery of
messages and high charge.
89
70%
62%
58%
60%
50%
40%
30%
18%
20%
20%
10% 9%
10%
13%
10%
0%
Very Satisfied
Dissatisfied
Airtel
62%
18%
10%
10%
Vodafone
58%
20%
9%
13%
62% of Airtel and 58% of Vodafone users are very satisfied with roaming
facility. 10% of Airtel and 13% Vodafone users are dissatisfied with roaming
because of high charges and poor signal strength while on roaming.
90
60%
50%
53%
48%
40%
30%
24%
21%
20%
14%
11%
15%14%
10%
0%
Airtel
Vodafone
Very Satisfied
53%
48%
Only 53% of Airtel and 48% of Vodafone users are very satisfied from VAS.
15% of Air Tel and 14% Vodafone users are dissatisfied from VAS because
they are not using these due to high charges for these facilities.
91
60%
52%
50%
48%
40%
30%
23%
25%
21%
18%
20%
8%
10%
0%
Very Satisfied
Satisfied
Satisfied to an Extent
5%
Dissatisfied
Airtel
48%
23%
21%
8%
Vodafone
52%
25%
18%
5%
48% of Airtel and 52% of Vodafone users are very satisfied with this service.
8% of Airtel and 5% of Vodafone users are dissatisfied from service because of
high charge.
92
35%
31%
30%
28%
30%
25%
23%
25%
24%
21%
18%
20%
15%
10%
5%
0%
Airtel
Vodafone
Very Satisfied
Satisfied
Satisfied to an Extent
Dissatisfied
23%
24%
25%
28%
30%
31%
21%
18%
only 23% of Airtel and 30% of Vodafone users are very satisfied with billing.
28 % of Airtel and 18% Vodafone users are dissatisfied with billing because of
inflated bills and delay in resolving. In this case Vodafone is better in
comparison to Airtel with less billing problems.
93
80%
70%
68%
60%
50%
42%
40%
30%
21%
20%
21%
19%
10%
0%
Airtel
Vodafone
6%
Very Satisfied
Satisfied
Satisfied to an Extent
18%
5%
Dissatisfied
68%
21%
6%
5%
42%
19%
21%
18%
68% of Airtel and 42% of Vodafone users are very satisfied with customer
care. In case of Vodafone 18% of users are dissatisfied with customer care
while in Airtel it is only 5% which shows that Airtel is winner in terms of
providing Customer Care services. Reason for this is waiting time to talk to
customer care and resolving time taken is very high in Vodafone.
94
77%
80%
70%
60%
50%
40%
30%
23%
16%
20%
10%
0%
Airtel
Vodafone
Yes
16%
23%
No
84%
77%
16% of Airtel users are planning to shift to other cell operator because they
find call charges expensive. While 23% of Vodafone users are planning to shift
because of poor customer care and high call charges. This shows that users
have much more loyalty towards Airtel in comparison to Vodafone.
95
84%
90%
77%
80%
70%
60%
50%
40%
23%
30%
16%
20%
10%
0%
Airtel
Vodafone
Yes
84%
77%
No
16%
23%
84% of Airtel and 77% of Vodafone users are ready to recommend others. This
shows high satisfaction level in Airtel users as compared to Vodafone.
96
Conclusion
With the steep fall in the cost of providing cellular services, and increasing
deregulation and competition, developing countries are witnessing rapid
growth in cellular subscriber base. Indian cellular industry has been
witnessing a Compounded Annual Growth Rate of about 105.2%. It is a $5
billion industry today, and the cellular subscriber base in the country has
increased to 6.4 million from a mere 28,550 in 1996. According to reports,
Indian mobile subscriber base is expected to grow to 19.48 million in the
current year, i.e.; 2004. However, the penetration rate of cellular services is
very poor in developing countries. In India, the cellular density is 0.56 per 100
population compared to 77.84 in Finland.
Economic conditions, market structure, policies regarding tariffs and
interconnect agreements, and customer characteristics are some of the
significant forces affecting the growth of cellular services. Since it takes about
3-4 years for cellular operators to attain financial payback on their projects,
estimates of market size can be useful for network and investment planning.
Qualitative narratives and descriptive
statistics of the cellular sector for many countries are available from a variety
of industry sources. However, rigorous empirically based studies of cellular
market growth are much more limited in number.
Moreover, these studies do not provide much insight into the mechanics of
growth in cellular markets. Such insights can inform policymakers about the
process by which growth occurs and help develop policies that can improve
cellular penetration in developing countries. They are also useful to service
providers in planning their network rollouts and services in the face of market
competition.
With the introduction of new providers, the incumbents face erosion of their
subscriber base. They can take preemptive measures to improve the quality of
their services offerings, reduce prices and increase the breadth of their service
offerings. The new operators have to battle against the advantages of the
incumbents such as existing subscriber base, economies of network
operations, network infrastructure and their financial strength.
97
There are other idiosyncrasies that may also need to be considered. In case of
India for instance, some of the entities that have received licenses to operate as
the fourth operator in metro areas, have prior cellular network provisioning
experience in selected parts of the country. They can reduce the roaming
charges when the subscriber roams in the operator's other areas. Further, the
government owned third operator, was erstwhile monopoly operator in basic
and domestic long distance services. This operator has extensive long distance
network and a sound financial base that will enable them to cross-subsidize
the cellular service and reduce prices.
98
Recommendations
99
Call pulse rate should be reduced to 15 seconds as most call end up less
than this time. This will save money of customers.
100
ANNEXURE
101
Bibliography
Boyd, Westfall, Stasch: Marketing Research.
( Seventh Edition)
Research Methodology: C.R.Kothari.
(Second Edition)
Philip Kotler: Marketing Management.( Eleventh Edition)
Voicendata magazine. ( Edition: December 2004)
Company brochure of Airtel and Vodafone.
www.airtelworld.com
www.Vodafoneworld.com
www.google.com
www.voicendata.com
102
Questionnaire
1.
NAME:
2.
AGE:
_________________________
( ) upto 25 Yrs.
3.
( ) 36-45 Yrs.
SEX:
( ) Male
4.
( ) 26-35 Yrs.
( ) Female
EDUCATION LEVEL:
( ) High School ( ) Undergraduate ( ) Graduate & above ( )
Others___________
5.
OCCUPATION:
( ) Student
( ) Service Man
( ) Other ____________
6.
7.
( ) VODAFONE
8.
( ) Professional
( ) Postpaid
( ) Businessman
( ) Upto 500
9.
( ) Rs.501-1000
( ) Next day
( ) 2-3 days
10.
To what extent you are satisfied with Current Tariff of your cell
operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
()
11.
To what extent you are satisfied with Network Quality of your cell
operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
()
12.
To what extent you are satisfied with SMS Facility of your cell
operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
()
13.
To what extent you are satisfied with Roaming Facility of your cell
operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
()
14.
To what extent you are satisfied with Voice Mail Service of your cell
operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
()
15.
To what extent you are satisfied with Mobile Banking of your cell
operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
104
()
16.
To what extent you are satisfied with Value Added Services like
GPRS, MMS, E-MAIL, Chatting, Fax etc. of your cell operator:
( ) Very Satisfied
Dissatisfied
17.
( ) Satisfied
( ) Satisfied to an extent
()
To what extent you are satisfied with Billing by your cell operator:
( ) Very Satisfied
Dissatisfied
( ) Satisfied
( ) Satisfied to an extent
()
18.
To what extent you are satisfied with Customer Care Service of cell
operator:
( ) Very Satisfied
Dissatisfied
19.
()
( ) No
21.
( ) Satisfied to an extent
20.
( ) Satisfied
( ) No
105
NAME
Dheeraj Miglani
Anuj Sood
Anuj Gupta
Mofij Ahmed
Rakesh
Aman Singh
N Durga Rao
saurabh pandey
Mrs Bharti
Mrs Sheila
Mrs Jyoti Shah
Kiran Kumar
Charanjit Singh
Arpit
Sanjeev Mishra
Kartik Sharma
Prince Ahuja
Manoj Kumar Bhola
Devesh Arora
Vinay Prakash
Prabhat Kumar
Shweta Bakshi
Deepak Vij
Barnali Patgiri
Pradeep Sambyal
Deeraj Kumar Sharma
Gyanendra Dev
KJS Kochar
Sanjiv Khurana
Pooja Thapar
Anita Dhillon
Jyoti Lahiri
Kapil Dev Sharma
Sudeep Bhatt
Naveet Lomish
CUSTOMERS DATABASE
SEX
AGE
M
M
M
M
M
M
M
M
F
F
F
F
M
M
M
M
M
M
M
M
M
F
M
F
M
M
M
M
M
F
F
F
M
M
M
1
2
3
3
2
3
1
3
1
1
1
1
2
4
3
2
1
1
1
2
2
3
1
3
3
4
4
2
2
1
1
1
4
4
2
106
Saya Chopra
Sonaal Pandit
Ranjiv kapur
Vishal Dewan
Raj Malhotra
Vinay Kapoor
Reena Sethi
Sunil K Gambhir
Lukose K Joseph
Nidhi Arora
Harish Taneja
Sheetal
Shweta Paul
B N Jha
Mayank Sharma
Sachin Deshmukh
Rahul sethi
Abhishek Prashad
Shaji Kuruvilla
Rajesh Sadhu
Moitree Sinha
Shameen Rocha
Terry O Conner
Aruna Khan
Neela Bhowmik
Sudha Choudhry
Lynnette Nath
Ashish Kumar
Bhawna Makhnotra
Sunil Sharma
Rajit Mehta
I.S. Sandhu
PS Anantha Narayanan
Rajesh Sud
Vijay Gupta
Pramod Radhakrishnan
Vipin jain
Baishali Ghosh
I B Sahay
M
M
M
M
M
M
F
M
M
F
M
F
F
F
M
M
M
M
M
M
M
F
F
F
F
F
F
M
F
M
M
M
M
M
M
M
M
M
M
2
3
3
4
4
1
1
1
1
1
2
2
2
3
3
4
4
2
2
4
4
3
2
4
2
1
4
1
1
2
3
4
2
3
4
2
3
4
2
107
Praneet Singh
Ritesh
Nitin Saini
Jyoti shahi
Rajesh Sadhu
Moitree Sinha
Shameen Rocha
Terry O Conner
Aruna Khan
Neela Bhowmik
Sudha Choudhry
Lynnette Nath
Bhawna Makhnotra
Sunil Sharma
Rajit Mehta
Mayank Sharma
Sachin Deshmukh
Rahul sethi
Abhishek Prashad
Shaji Kuruvilla
Moitree Sinha
Alok Nath
Eunice Stephen
Sabreena R Grimm
Ashish Kumar
Bhawna Makhnotra
Sunil Sharma
Rajit Mehta
I.S. Sandhu
PS Anantha Narayanan
Rajesh Sud
Vijay Gupta
Pramod Radhakrishnan
Vipin jain
Baishali Ghosh
I B Sahay
Praneet Singh
Ritesh
Nidhi Arora
M
M
M
M
M
M
F
F
F
F
F
F
M
M
M
M
M
M
M
M
M
F
F
F
M
F
M
M
M
M
M
M
M
M
M
M
M
M
F
3
4
1
1
1
2
2
2
3
4
2
3
4
1
2
3
4
2
1
1
1
2
1
2
1
3
3
4
4
2
2
4
4
1
4
1
1
1
1
108
Harish Taneja
Sheetal
B N Jha
RASHMI
RAJSHREE
Arjoo Chowdhary
Pooja
Shamli sharma
Renu gupta
Shilpa
Preetam
Jatin
Gaurav sharma
Aakash sinha
M Male
F- Female
M
F
F
F
F
F
F
F
F
F
M
M
M
M
AGE: 1- Upto 25 Years
3- 36-45 Years
109
4
4
3
3
4
2
3
4
2
4
1
2
1
3
2- 26-35 Years
4- 46 Years & above
110