A PROJECT REPORT

ON

“CHANGE IN CUSTOMER PERCEPTION TOWARDS 2G TO 3G

WITH SPECIAL REFERENCE TO BSNL”.

SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF
POST GRADUATE DIPLOMA IN MARKETING MANAGEMENT

(APPROVED BY AICTE, GOVT. OF INDIA)

ACADEMIC SESSION

2009-2011

SUBMITTED TO: SUBMITTED BY:

Nitin Agarwal (BM-09274)

Dr. Urvashi Makkar. Jishan Sami (BM-09268)
Chairperson PGDM-MM Azimur Rehman(BM-09262)
IMS Sahar Alam (BM-09281)
LAL QUAN, GHAZIABAD Sagar Gupta(BM-09302)
Amit Datta(BM-09286)
Rajat Tyagi(BM-09279)
 INDEX

SL NO TOPIC PAGE NO
1 Introduction 3
2 Objective 6
3 Research Methodology 7
• Research Design 7
• Sample Design 7
• Data Collection 7
• Data Analysis 8
4 Findings 14
5 Recommendations 15
6 Questionnaire as annexure. 16

LIST OF TABLES

Table 1: KMO and Bartlett's Test…8

Table 2 : Total Variance Explained…9
Table 4: Scree Plot…….10
Table 4 : Component Matrix…..11
Table 5 : Rotated Component Matrix….12
 INTRODUCTION

Third Generation (3G) mobile devices and services will transform wireless communications into
on-line, real-time connectivity. 3G wireless technology will allow an individual to have immediate
access to location-specific services that offer information on demand. The first generation of
mobile phones consisted of the analog models that emerged in the early 1980s. The second
generation of digital mobile phones appeared about ten years later along with the first digital
mobile networks. During the second generation, the mobile telecommunications industry
experienced exponential growth both in terms of subscribers as well as new types of value-added
services. Mobile phones are rapidly becoming the preferred means of personal communication,
creating the world's largest consumer electronics industry.
The rapid and efficient deployment of new wireless data and Internet services has emerged as a
critical priority for communications equipment manufacturers. Network components that enable
wireless data services are fundamental to the next-generation network infrastructure. Wireless
data services are expected to see the same explosive growth in demand that Internet services
and wireless voice services have seen in recent years.
This white paper presents an overview of current technology trends in the wireless technology
market, a historical overview of the evolving wireless technologies and an examination of how the
communications industry plans to implement 3G wireless technology standards to address the
growing demand for wireless multimedia services. Finally, this paper presents Trillium’s solutions
which enable wireless communications and Internet infrastructure equipment manufacturers to
develop 3G network elements for quick and efficient deployment.
2G spectrum is nearing saturation, and with the defence yet to vacate the spectrum for
both 2G and 3G that it holds, the problem persists.

What Does 3G offers and Who benefits From It?

3G wireless services enable consumers and professionals to experience excellent voice quality as
well as a wide array of compelling data services, including:
• Mobile Internet connectivity
• Mobile email
• Multimedia services, such as digital photos and movies taken by and shared via wireless
handsets
• Wireless application downloading
• Audio-on-demand
• Video-on-demand and short-format Clip cast™ content
• Real-time multiplayer gaming
• Enhanced emergency and location-based services
• Low-latency push-to-talk and push-to-video message services
• Video Conferencing on mobiles
• Secure mobile commerce transactions
For consumers, 3G quite simply means a more rewarding wireless experience—high-quality,
low-cost voice, and fun and useful data services whenever they want them, whenever they need
them and wherever they have mobile phone service.
Now, Let us throw some light on various applications of 3G technology:

1) Mobile Internet Connectivity- Internet is the next big thing that provides us with all the
information and in today’s fast paced world, everyone wants to have access to information as it
happens. Now days, we can access internet from our mobiles as well but there is no reliability in
connection. With the advent of 3G technology, we can have a reliable connection in our hands and
can access internet at a very high speed of upto 2 Mbps. This helps in business to grow not only for
mobile manufacturers but also for those who use these services as these are readily available. In
India, it will take some time for these services to be launched but it is not far when we using this
service as India has emerged as fast growing mobile phone user base.

2) Mobile E Mail- E mail is another application of internet. It is an important application as there

are many users who want only to check the mails they have received. Using 3G will help those
users not only accessing their mails but also
download the attachments with the mails they receive or want to send.

3) Multimedia Services- Today, almost every phone has camera or voice recording software. Thus,
people are very much interested in making these photos, videos or sound files shared among
themselves.2G limits this sharing as it can be send and received only via MMS. But in 3G,with
good connection speed, we can share these files over internet to wide people across the globe.
Hence, it helps in making contacts and provide information in an easy way.

4) Downloading and Uploading -With 2G, the technologies used does not provide for
\downloading at very good speed. Even if we want to download a text document it will take lot of
time. But with 3G introduction, we can easily download any amount of data over internet as we like
because of the connection speed. Thus, it helps in business as people can download and upload files
easily so that their work may not be pending and it can be done within seconds without going to
cyber cafés or having PC access.

5) Video and Audio on Demand-Video and audio streaming is very common these days. Streaming
videos or music can be very tedious as it requires a very good speed to be able to have access to
these videos or music.3G provides a good connection so that you can have access to these videos.
Businesses are growing these days by having training programmes running online in a virtual
environment and to be able to understand the practical part, they provide with videos which
required to be streamed over the net in order to view them.So,3G makes it possible for people to
have actual feeling of working environment.

6) Enhanced emergency and location-based services-These services help you to locate yourself
in the area you are present right now so that you can know about the places nearby in case of any
emergency like accident or being run out of fuel or the amount of traffic ahead, etc. such that you
can able to reach your destination on time. GPS systems have been recently launched in India but
not all phones are equipped with it. You have to buy separate equipment for it. But in 3G such
services are provided within the 3G enabled phones as these are the main

7) Real Time Multiplayer Gaming-For gamers 3G brings the fun on their hands. As they have
access to high speed internet, they can play multiplayer games online with their friends as per their
wish.

8) Video conferencing-Video Conferencing is an important part of business these days. Without

being physically present somewhere you will be able to interact with the people there. Thus, it helps
the business to grow, build favourable relationships and it is in your hands on your mobile handset.
It really helps you to stand out first in your business.

9) Secure mobile commerce transactions-Today, shopping on internet is a new fashion in the

country. But as it sometimes comes out unsafe to do shopping on net, security is the main concern.
With 3G, it has been guaranteed that it provides some secure layers which helps in a safe
transaction over your mobile so that you can exchange your private information like credit card
numbers while purchasing anything. Thus, it helps various businesses to grow rapidly.

DIFFERENCE BETWEEN 2G AND 3G.

Technology 2G 3G
Design Began 1980 1990
Implementation 1991 2002
Services Digital Voice, Short message Higher capacity, Broadband
data up to 2Mbps
Standards TDMA,CDMA,GSM,PDC WCDMA,CDMA2000
Multiplexing TDMA,CDMA CDMA
Core Network PSTN Packet network

3G LAUNCH IN INDIA

BSNL is the first telecom operator who Launch 3G Services in India. BSNL is provided 3G
Services in almost 100 selected cities. In 3G Service include broadband (3.6Mbps), Mobile TV and
Video call. For the first time in India, BSNL gives high quality video on Demand, full music
download, Movie TV and Multi-player gaming services in one service i.e 3G Service. The
commercial launch of much awaited 3G services in India will allow consumers to experience
enriched communications including rich voice, video and data services. The successful launch of
3G services in India’s across multiple cities (12 cities) in Northern and Eastern parts of India (delhi,
mumbai etc) brings 3G access to more than 15 million people and will help in driving quicker
uptake of 3G services to a wide customer base.
As part of its roll-out strategy, BSNL plans to launch 3G services using WCDMA/HSPA technology
across more than 700 cities in the first phase. Ericsson is BSNL’s strategic partner for 3G roll-out in
over 400 of these cities.“The commercial launch of 3G services represents a major milestone in our
journey of realizing 3G services for the country and our customers. The widespread roll-out of 3G
network will help in propelling telecom and broadband growth in India and will help us meet
India’s target of 20 million broadband subscribers by 2010,” said Kuldeep Goyal, Chairman and
Managing Director of BSNL.“Ericsson is proud to partner with BSNL in the roll-out of 3G services
in India. This not only helps us in bridging the urban-rural digital divide, but is also a step forward
in actualizing our vision of driving communications for all. Innovative services such as mobile
health, m-learning and m-governance that are eventually offered to masses, using HSPA technology,
shall ultimately drive socio-economic development in the country,” said Gowton Achaibar,
President, Ericsson India and Sri Lanka.

The launch will bring high quality voice services along with high speed data and video services
with speeds of up to 2 Mbps. While certain applications such as video telephony, mobile broadband,
mobile TV and video on demand are being offered with immediate effect, others such as music
download, video tones, instant messaging, on line gaming, bill payment, and so on will be offered
by BSNL in the future.

The mammoth roll-out will also strengthen BSNL’s position as a leading player with a broad
offering including Wireline,GSM Mobile, CDMA mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP services, IN Services to Indian consumers.
 OBJECTIVES

 change in customer perception towards 2G to 3G with special reference to bsnl.

 To know the consumer preference towards 3G.
 RESEARCH METHODOLOGY

Research Design
The research design would be Descriptive Research. Here I describe market characteristics or
functions. It describes the characteristics of relevant groups, such as salespeople, consumers, and
organizations.
Sample Design

• Sample Size
The sample would be selected on random customers basis on insurance. A sample of 38 respondents
would be used in research.
• Sampling Area
This survey was conducted in the context of Changing Customer attitude towards 2G to 3G with
special reference to BSNL. For this I have conducted interview in the locations of Ghaziabad.
• Sampling Technique
Non-Probabilistic Sampling through Convenience sampling, Because here I have done a survey in
convenient locations that is Ghaziabad.

3.3 Data Collection

Both primary and secondary sources would use.
Major type of information used in primary data.
• Primary Data collection
The data would be collected from primary sources through questionnaires, observations etc.
The data would be surveyed on the basis of questionnaire and data would be quantified for
further analysis.
• Secondary Data collection
Through Newspaper & Website.
DATA ANALYSIS:

Table 1: KMO and Bartlett's Test

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
.535
Adequacy.
Bartlett's Test of Approx. Chi-Square
167.705
Sphericity
df 105
Sig. .000

Interpretation: From the above KMO and Bartlett's Test table we can see the value of Kaiser-
Meyer-Olkin Measure of Sampling Adequacy which is .535. it shows that data is adequate.
Table 2 : Total Variance Explained

Total Variance Explained

Co
mp
one Extraction Sums of Rotation Sums of
nt Initial Eigenvalues Squared Loadings Squared Loadings
% of % of % of
Varianc Cumul Varianc Cumul Varianc Cumulat
Total e ative % Total e ative % Total e ive %
1 3.63
24.229 24.229 3.634 24.229 24.229 2.257 15.046 15.046
4
2 1.76
11.742 35.971 1.761 11.742 35.971 1.952 13.012 28.058
1
3 1.59
10.655 46.626 1.598 10.655 46.626 1.845 12.300 40.358
8
4 1.36
9.076 55.702 1.361 9.076 55.702 1.686 11.237 51.595
1
5 1.26
8.463 64.165 1.269 8.463 64.165 1.569 10.461 62.057
9
6 1.08
7.226 71.391 1.084 7.226 71.391 1.400 9.334 71.391
4
7 .928 6.183 77.574
8 .832 5.548 83.122
9 .796 5.305 88.427
10 .513 3.419 91.846
11 .359 2.396 94.242
12 .314 2.094 96.336
13 .263 1.755 98.091
14 .196 1.304 99.396
15 100.00
.091 .604
0
Extraction Method:
Principal Component
Analysis.

Interpretation: From the above Total Variance Explained table, we can see that 71.39% of data
covered by 6 factors from 15 factors.

Table 4: Scree Plot

Table 4 : Component Matrix

Component Matrixa
Component
1 2 3 4 5 6
Prefer_BSNL_for_tel
.487
ecom
Prefer_use_3G -.543 .500
Beneficial_students .486
Broadband_connecti
.440 .412 .512
vity
prefer_datacard_futur
.536 .551
e
 Component Matrixa
prefer_video_confere
-.706 .417
ncing
Fast_connectivity .691 .417
TV_Channels_overce
.586 .418
ll
Latest_Tech.Craze .534 -.412
Acess_GPS .854
Responce_cust_care .485
prefer_social_networ
-.420 .581 -.455
k
Want_suggest_friend
.711
s_relatives
Proud_tobe_custome
.506 .425 .458
r
Loyal_patron .467 -.726
Extraction Method: Principal Component
Analysis.
a. 6 components extracted.

Table 5 : Rotated Component Matrix

Rotated Component Matrixa
Component
1 2 3 4 5 6
Prefer_BSNL_for_t
.801
elecom
Prefer_use_3G .797
Beneficial_students .535
Broadband_connect
.877
ivity
prefer_datacard_fut
.774
ure
 Rotated Component Matrixa
prefer_video_confer
-.710
encing
Fast_connectivity .794
TV_Channels_over
.560 .568
cell
Latest_Tech.Craze .447 .571
Acess_GPS .415 .649
Responce_cust_care -.711
prefer_social_netwo
.856
rk
Want_suggest_frien
.584 .428
ds_relatives
Proud_tobe_custom
.702
er
Loyal_patron .882
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 9 iterations.

Interpretation:

From the rotated component Matrix table we see that the variables; Broadband_connectivity,
prefer_video_conferencing and Want_suggest_friends_relatives have loadings with 0.877, -.710,
and 0.584 on component 1. Therefore this component can be interpreted as ‘word of mouth’.
Now for component 2, we can see that Prefer_use_3G, Beneficial_students and
prefer_social_network with a loadings of 0.797, 0.535 and 0.856 respectively, indicating that
component 2 is a combination of three variables. These variables can be clubbed together into a
single factor that is ‘convienence’.
Now for component 3, we can see that TV_Channels_overcell, Acess_GPS, Loyal_patron with a
loadings of .568, 0.649, 0.882 respectively, indicating that component 3 is a combination of three
variables. These variables can be clubbed together into a single factor that is ‘Facility’.
Now for component 4, we can see that prefer_datacard_future, Fast_connectivity with a loadings of
0.774, 0.794 respectively, indicating that component 4 is a combination of two variables. These
variables can be clubbed together into a single factor that is ‘Service’.
Now for component 5, we can see that Latest_Tech.Craze, Responce_cust_care of 0.571, -0.711
respectively, indicating that component 5 is a combination of two variables. These variables can be
clubbed together into a single factor that is ‘Attraction’.
Now for component 6, we can see that Prefer_BSNL_for_telecom, Proud_tobe_customer of 0.801,
0.702 respectively, indicating that component 6 is a combination of two variables. These variables
can be clubbed together into a single factor that is ‘Loyalty’.
FINDINGS

• Customers are more inclined towards 3G than 2G because of its fast connectivity and
for its USP that is Video Conferencing

• Customers are not satisfied with the customer care services of BSNL.
Recommendations
• They should reduce their Tariff rates .
• They should provide 24 Hr. Efficient & effective customer care service
• They should expand their network to other parts of the country because people are
eager to use the 3G service.
• BSNL should make such strategy in the market by which it can do monopoly in the
market.
 QUESTIONNAIRE

We are conducting research on the Costumer attitude towards change in customer perception
towards 2G to 3G. For this purpose we need your assistance. Different aspects were
identified on which we want to ask your opinion. Please answer the questions as honestly as
possible and answer them as you see them in your context.

Name:

Address:

Q.1) Specify your age group.

a)15-25
b)25-35
c)35-45
d)45-55
e)Above 55

Q.2) Specify your gender.

a) Male
b) Female

Q.3) In which category you lie

a) Businessman
b) Government employee
c) Proffesional
d) Student
e) Any other
Please specify…………………

Q.6) How often you will prefer to use 3G service ?

a) 1 - 2 weeks
b) once a month
c) Occasionally
d) daily or every week
e) not specified

Q5.) In this 3G service how much you would spend .

a) Less than 100
b) 100 to 200
c) 200 to 300
d) 300 to 400
e) Greater than 400

Please give the ratings to the below factors

1 = Strongly Agree 2 = Agree

3 = Neutral 4= Disagree
5 = Strongly Disagree

Statement 1 2 3 4 5
a. I prefer BSNL for telecommunication
b. I Prefer to use 3G services.
c. This service is beneficial for students.
d. 3G is better option comparing to broadband
connectivity.
e. I prefer 3G data card in future
f. Prefer while video conference facility
g. Prefer 3G for fast connectivity
h. Browsing TV Channels over handset
i. Latest Technology craze
j. Access to GPS
k. Response over customer care is satisfactory
l. I prefer social networking via 3G Network
m. Want suggest to my friends
n. Proud to be BSNL 3G user
o. Loyal patron of BSNL

Thank you for your co-operation