‘’SUMMER TRANNING REPORT’’

CUSTOMER AWARENESS &

SCOPE FOR VALUE ADDED SERVICES

(SUMMER TRANNING REPORT SUBIMETTED TO THE SIKKIM MANIPAL UNIVERSITY, SIKKIM)

FOR

PARTIAL FULFILLEMENT FOR THE AWARD OF THE MBA DEGREE)

BATCH : 2011-2013

SUBMITTED BY :

AKASH SHUKLA , ROLL NO- 521131659

INSOFT 7/193 GEETA COLONY

DELHI

June, 2013

Dated: 7th June 2013

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 DECLARATION

I AKASH SHUKLA Roll No. 521131659 Class MBA 4th Sem. Of INSOFT Institute hereby declare that the
Summer Training Report entitled, “Customer Awareness & Scope for Value Added Services” is an original
work and the same has not been submitted to any other institute for the award of any other degree. A seminar
presentation of the training report was made on 7th June 2013 and the suggestions as approved by the faculty
were duly incorporated.

Signature of the Candidate

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Tata Docomo
letter
Preface

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 Acknowledgements

I take this opportunity to acknowledge and express my gratitude towards some of the most eminent people
whose presence is noteworthy & seminal in giving me a grand opportunity to associate myself with an esteemed
organization like TATA DOCOMO.

I am grateful to Mr. Johnson Yohanun, VAS Manager in TATA DOCOMO for entrusting upon me
confidence and providing me a chance to get an on the-job experience in the various fields of Value Added
Services.

I would like to thank him for giving me the flexibility and freedom to understand the scope of the project. I
thank him for his support and patience with me despite being hard pressed for time. His continuous guidance
and support is deeply appreciated. I greatly value the constant encouragement and direction shown by him
during my internship.

I am also thankful to Mr. VINOD Chopra, for his helpful nature and valuable guidance provided time and
again. His suggestions have been instrumental in building the foundation for the draft report. Finally, I would
like to extend my sincere gratitude to all the involved persons in this project. Without your willingness,
suggestions and insights, this Project would not have been completed

Table of Contents

CHAPTER I : INTRODUCTION

1. Brief About Telecom Industry

2. Profile of Tata DOCOMO

3. Introduction of Value Added Service

3.1 About Value Added Services

3.2 What is VAS?

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 3.3 VAS: A Source of Revenue
3.4 Value-added Service Characteristics
3.5 Relationship of VAS to other Services

4. Review of existing literature

5. Objective of the study

6. Hypothesis

CHAPTER II : RESEARCH METHODOLOGY

1. Survey population

2. Research design

3. Sample size & Techniques

4. Data Collection (Primary & Secondary)

5. Analysis Pattern

6. Limitation of the study

CHAPTER III : OBJECTIVE OF SYSTEMETIC ANALYSIS (Micro Analysis)

CHAPTER IV : MACRO ANALYSIS (Interpretation)

CHAPTER V : SUMMARY OF MAJOR OBSERVATION, FINDING

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CHAPTER I : INTRODUCTION

1. Brief About Telecom Industry

The Indian telecommunication industry is the world's fastest growing industry with 811.59 million mobile phone
subscribers as of March 2011. It is also the second largest telecommunication network in the world in terms of
number of wireless connections after China.

As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion
mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the
total number of subscribers in India will exceed the total subscriber count in the China by 2013. The industry is
expected to reach a size of 344,921 Cr. (US$76.57 billion) by 2012 at a growth rate of over 26 per cent, and
generate employment opportunities for about 10 million people during the same period. According to analysts,
the sector would create direct employment for 2.8 million people and for 7 million indirectly. In 2008-09 the
overall telecom equipments revenue in India stood at 136,833 Cr. (US$30.38 billion) during the fiscal, as against
115,382 Cr. (US$25.61 billion) a year before.

Modern growth

A large population, low telephony penetration levels, and a rise in consumer spending power has helped make
India the fastest-growing telecom market in the world. The market's first operator was the state-owned Bharat
Sanchar Nigam Limited (BSNL), created by corporatization of the Indian Telecommunication Service, a
government unit formerly responsible for provision of telephony services. Subsequently, after the
telecommunication policies were revised to allow private operators, companies such as Bharti Airtel, Reliance
Communications, Tata Indicom, Idea Cellular, Aircel and Loop Mobile have entered the market (Bharti Airtel
currently being the largest telecom company in India). In the fiscal year 2008-09, rural India outpaced urban
India in mobile growth rate.

The total number of telephones in the country stands at 846.32 million, while the overall tele-density has
increased to 70.89% as of Mar 31st, 2011. Mobile telephony experiences growths at rates such as 20.21 million
subscribers a month, which were added in March 2011.

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History

Telecom in the real sense means the transfer of information between two distant points in space. The popular
meaning of telecom always involves electrical signals and as a result, people often exclude postal or any other
raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with
the introduction of telegraph.

Introduction of the telegraph

The Indian postal and telecom sectors saw a slow and uneasy start. In 1850, the first experimental electric
telegraph line was started between Kolkata and Diamond Harbor. In 1851, it was opened for the use of the
British East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works
Department, at that time.

Subsequently, the construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (then Calcutta)
and Peshawar in the north along with Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then
Madras) in the south, as well as Ootacamund and Bangalore was started in November 1853. Dr.William
O'Shaughnessy, who pioneered the telegraph and telephone in India, belonged to the Public Works Department,
and worked towards the development of telecom throughout this period. A separate department was opened in
1854 when telegraph facilities were opened to the Public.

Introduction of the telephone

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. And The Anglo-Indian
Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The
permission was refused on the grounds that the establishment of telephones was a Government monopoly and
that the Government itself would undertake the work. In 1881, the Government later reversed its earlier decision
and a licence was granted to the Oriental Telephone Company Limited of England for opening telephone
exchanges at Calcutta, Bombay, Madras and Ahmedabad and the first formal telephone service was established
in the country. On the 28th January 1882, Major E. Baring, Member of the Governor General of India's Council
declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named the
"Central Exchange", was opened at third floor of the building at 7, Council House Street, with a total of 93
subscribers. Later that year, Bombay also witnessed the opening of a telephone exchange.

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Further milestones and developments

A Mobile Phone Tower.

 Cable telegraph

 1902 - First wireless telegraph station established between Sagar Islands and

Sand heads.

 1907 - First Central Battery of telephones introduced in Kanpur.

 1913-1914 - First Automatic Exchange installed in Shimla.

 1927 - Radio-telegraph system between the UK and India, with Imperial Wireless

Chain beam stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July

by exchanging greetings with King George V.

 1933 - Radiotelephone system inaugurated between the UK and India.

 1953 - 12 channel carrier system introduced.

 1960 - First subscriber trunk dialing route commissioned between Lucknow and

Kanpur.

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  1975 - First PCM system commissioned between Mumbai City and Andheri

telephone exchanges.

 1976 - First digital microwave junction introduced.

 1979 - First optical fibre system for local junction commissioned at Pune.

 1980 - First satellite earth station for domestic communications established at

Secunderabad, A.P..

 1983 - First analog Stored Program Control exchange for trunk lines

commissioned at Mumbai.

 1984 - C-DOT established for indigenous development and production of digital

exchanges.

 1995 - First mobile telephone service started on non-commercial basis on 15

August 1995 in Delhi.

While all the major cities and towns in the country were linked with telephones during the British period, the
total number of telephones in 1948 numbered only around 80,000. Post independence, growth remained slow
because the telephone was seen more as a status symbol rather than being an instrument of utility. The number
of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year
economic reforms were initiated in the country.

While certain measures were taken to boost the telecom industry from time to time, (for example introduction of
the telex service in Mumbai in 1953 and commissioning of the first Subscriber trunk dialling route between
Delhi and Kanpur and between Lucknow and Kanpur in 1960), the first waves of change were set going by Sam
Pitroda in the eighties. The real transformation in scenario came with the announcement of the National
Telecom Policy in 1994.

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Indian telecom sector: recent policies

 All villages shall receive telecom facilities by the end of 2002.

 A Communication Convergence Bill introduced in the Parliament on August 31,

2001 is presently before the Standing Committee of Parliament on Telecom and

IT.

 National Long Distance Service (NLD) is opened for unrestricted entry.

 The International Long Distance Services (ILDS) have been opened to

competition.

 The basic services are open to competition.

 In addition to the existing three, a fourth cellular operator, one each in four metros

and thirteen circles, has been permitted. Cellular operators have been permitted to

provide all types of mobile services including voice and non-voice messages, data

services and PCOs utilizing any type of network equipment, including circuit

and/or package switches that meet certain required standards.

 Policies allowing private participation have been announced as per the New

Telecom Policy (NTP), 1999 in several new services, which include Global

Mobile Personal Communication by Satellite (GMPCS) Service, digital Public

Mobile Radio Trunked Service (PMRTS) and Voice Mail/ Audiotex/ Unified

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 Messaging Services.

 Wireless Local Loop (WLL) has been introduced to provide telephone

connections in urban, semi-urban and rural areas promptly.

 Two telecom PSUs, VSNL and HTL have been disinvested.

 Steps are being taken to fulfill Universal Service Obligation (USO), funding, and

administration.

 A decision to permit Community Phone Service has been announced.

 Multiple Fixed Service Providers (FSPs) licensing guidelines were announced.

 Internet Service Providers (ISPs) have been allowed to set up International

Internet Gateways, both Satellite and Landing stations for submarine optical fiber cables.

 Two categories of infrastructure providers have been allowed to provide end-to-

end bandwidth and dark fiber, right of way, towers, duct space etc.

 Guidelines have been issued by the Government to open up Internet telephony

(IP).

Emergence as a major player

In 1975, the Department of Telecom (DoT) was separated from Indian Post & Telecommunication Accounts
and Finance Service. DoT was responsible for telecom services in entire country until 1985 when Mahanagar
Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. In
1990s the telecom sector was opened up by the Government for private investment as a part of Liberalization-
Privatization-Globalization policy. Therefore, it became necessary to separate the Government's policy wing
from its operations wing. The Government of India corporatized the operations wing of DoT on 1 October 2000
and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance

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Communications, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high
potential Indian telecom market.

Privatization of telecommunication in India

The Indian government was composed of many factions (parties) which had different ideologies. Some of them
were willing to throw open the market to foreign players (the centrists) and others wanted the government to
regulate infrastructure and restrict the involvement of foreign players. Due to this political background it was
very difficult to bring about liberalization in telecommunications. When a bill was in parliament a majority vote
had to be passed, and such a majority was difficult to obtain, given to the number of parties having different
ideologies.

Liberalization started in 1981 when Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France
to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. But soon
the policy was let down because of political opposition. She invited Sam Pitroda a US based Non-resident
Indian NRI to set up a Center for Development of Telematics (C-DOT), however the plan failed due to political
reasons. During this period, after the assassination of Indira Gandhi, under the leadership of Rajiv Gandhi,
many public sector organizations were set up like the Department of Telecommunications (DoT) , VSNL and
MTNL. Many technological developments took place in this regime but still foreign players were not allowed to
participate in the telecommunications business.

The demand for telephones was ever increasing. It was during this period that the Narsimha Rao-led
government introduced the national telecommunications policy [NTP] in 1994 which brought changes in the
following areas: ownership, service and regulation of telecommunications infrastructure. They were also
successful in establishing joint ventures between state owned telecom companies and international players. But
still complete ownership of facilities was restricted only to the government owned organizations. Foreign firms
were eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and not
policy making.

During this period, the World Bank and ITU had advised the Indian Government to liberalize long distance
services in order to release the monopoly of the state owned DoT and VSNL; and to enable competition in the
long distance carrier business which would help reduce tariff's and better the economy of the country. The Rao
run government instead liberalized the local services, taking the opposite political parties into confidence and
assuring foreign involvement in the long distance business after 5 years. The country was divided into 20
telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided
into category A, B and C depending on the value of the revenue in each circle. The government threw open the
bids to one private company per circle along with government owned DoT per circle. For cellular service two
service providers were allowed per circle and a 15 years license was given to each provider. During all these
improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labor unions, but
they managed to keep away from all the hurdles.

After 1995 the government set up TRAI (Telecom Regulatory Authority of India) which reduced the

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interference of Government in deciding tariffs and policy making. The DoT opposed this. The political powers
changed in 1999 and the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms
and introduced better liberalization policies. They split DoT in two- one policy maker and the other service
provider (DTS) which was later renamed as BSNL. The proposal of raising the stake of foreign investors from
49% to 74% was rejected by the opposite political party and leftist thinkers. Domestic business groups wanted
the government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to
26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL.

This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March 2000,
the government became more liberal in making policies and issuing licenses to private operators. The
government further reduced license fees for cellular service providers and increased the allowable stake to 74%
for foreign companies. Because of all these factors, the service fees finally reduced and the call costs were cut
greatly enabling every common middle class family in India to afford a cell phone.

Nearly 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian
mobile market. In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375
million, which represented a nearly 50% growth when compared with previous year. As the unbranded Chinese
cell phones which do not have International Mobile Equipment Identity (IMEI) numbers pose a serious security
risk to the country, Mobile network operators therefore planned to suspend the usage of around 30 million
mobile phones (about 8 % of all mobiles in the country) by 30 April. 5–6 years the average monthly subscribers
additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at
10.5 millions. However, after a number of proactive initiatives were taken by regulators and licensors, the total
number of mobile subscribers has increased greatly to 811.59 million subscribers as of Mar 31st 2011.

India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-
division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of
the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world.
A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone
additions increased to around 2 million per month in the year 2003-04 and 2004-05.

In June 2009, the Government of India banned the import of several mobile phones manufactured in China
citing concerns over quality and the lack of IMEI's which make it difficult for authorities in India to track the
sale and use of such phones. In April 2010, the Government was also reported to be blocking Indian service
providers from purchasing Chinese mobile technology citing concerns that Chinese hackers could compromise
the Indian telecommunications network during times of national emergency. A series of attacks on Indian
government websites and computer networks by suspected Chinese hackers has also made Indian regulators
suspicious with regards to the import of potentially sensitive equipment from China. The companies reported to
be affected by this are Huawei Technologies and ZTE.

Telecommunications Regulatory Environment in India

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LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders’
perception on certain TRE dimensions, provides insight into how conducive the environment is for further
development and progress. The most recent survey was conducted in July 2008 in eight Asian countries,
including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool
measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff
regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed, mobile
and broadband sectors.

The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the
mobile sector followed by fixed and then broadband. Other than for Access to Scarce Resources the fixed sector
lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation.
Market entry also scores well for the mobile sector as competition is well entrenched with most of the circles
with 4-5 mobile service providers. The broadband sector has the lowest score in the aggregate.

The low penetration of broadband of mere 3.87 against the policy objective of 9 million at then end of 2007
clearly indicates that the regulatory environment is not very conducive.

Revenue and growth

The total revenue in the telecom service sector was 86,720 crore (US$19.3 billion) in 2005-06 as against
71,674 crore (US$15.9 billion) in 2004-2005, registering a growth of 21%.estimted revenue of FY'2011 is
Rs.835 Bn (US$ 19 Bn Approx).The total investment in the telecom services sector reached 200,660 crore
(US$44.5 billion) in 2005-06, up from 178,831 crore (US$39.7 billion) in the previous fiscal.

Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber
base has risen to more than a 100 million in 2010. Out of this 11.47 million were broadband connections. More
than a billion people use the Internet globally. Under the Bharat Nirman Programme, the Government of India
will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public
Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor
in the country.

It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the
opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005 up
from 2.3 million in December 2004.

Telephone

On landlines, intra-circle calls are considered local calls while inter-circle are considered long distance calls.

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Currently Government is working to integrate the whole country in one telecom circle. For long distance calls,
the area code prefixed with a zero is dialed first which is then followed by the number (i.e. To call Delhi, 011
would be dialed first followed by the phone number). For international calls, "00" must be dialed first followed
by the country code, area code and local phone number. The country code for India is 91.

Telephone Subscribers (Wireless and Landline): 846.32 million (mar. 2011)

Land Lines: 34.73 million (mar. 2011)

Cell phones: 811.59 million (mar. 2011)

Monthly Cell phone Addition: 20.21 million (mar. 2011)

Teledensity: 70.89 % (mar. 2011)

Projected Teledensity: 1 billion, 84% of population by 2012.

Mobile telephones

With a subscriber base of more than 811 million, the Mobile telecommunications system in India is the second
largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple
zones, called circles (roughly along state boundaries). Government and several private players run local and
long distance telephone services. Competition has caused prices to drop and calls across India are one of the
cheapest in the world. The rates are supposed to go down further with new measures to be taken by the
Information Ministry. In September 2004, the number of mobile phone connections crossed the number of
fixed-line connections and presently dwarfs the wireline segment by a ratio of around 20:1. The mobile
subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over
810 million subscribers as of Mar 2011 (a period of 10 years) . India primarily follows the GSM mobile
system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are
Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with
operations in only a few states.

International roaming agreements exist between most operators and many foreign carriers.

India is divided into 19 telecom circles as on date. They are listed below:

 Andhra Pradesh

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 Bihar

 Delhi & NCR

 Gujarat

 Haryana

 Himachal Pradesh

 Karnataka

 Kerala

 Kolkata

 Madhya Pradesh

 Maharashtra & Goa

 Mumbai

 Orissa

 Punjab

 Rajasthan

 Tamil Nadu

 Uttar Pradesh (East)

 Uttar Pradesh (West)

 West Bengal

2. Profile of Tata DOCOMO

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Type Joint venture

Industry Telecommunications

Founded November 2008

Headquarters New Delhi, India

Area served India

Services Mobile Network

Parent Tata Teleservices (74%)

NTT DoCoMo (26%)
(joint venture)

Website www.tatadocomo.com

Tagline/ Slogans Do the New; Because Life changes in seconds

USP Pioneer to introduce Per second pulse

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STP

Segment Middle and upper middle class

Target Group Students; senior citizens

Positioning Pay only as per use by the Simplicity  of plans

SWOT Analysis

Strength 1.Flexible plans

2.Good advertising
3.High brand visibility
4.Youth appeal, assistance/ JV from NTT Docomo
(Japan), VAS
5.Ability to attract customers with various plans

Weakness 1.Price competition from BSNL and MTNL

2.Service centre issues
3.Untapped Rural Market
4.Price Higher than BSNL and MTNL 
5.Simlar and monotonous plans schemes

Opportunity 1.Fast expanding cellular market

2.Latest and low cost technology
3.Untapped rural market
4.Value added services

Threats 1.Competitors low price offering

2. Saturation point in Basic telephony service
3.Mobile Number Portability

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Tata DOCOMO at a glance
Tata DOCOMO is Tata Teleservices Limited's telecom service on the GSM platform-arising out of the Tata
Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices
has received a license to operate GSM telecom services in 18 of India's 22 telecom Circles-and has also been
allotted spectrum in 18 telecom circles. Of these, it has already rolled out services in all the 18 Circles that it
received spectrum in from the Government of India-Tamil Nadu, Kerala, Orissa, Karnataka, Andhra Pradesh,
Maharashtra, Madhya Pradesh-Chhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand, Bihar,
UP (East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.

Tata DOCOMO has also become the first Indian private operator to launch 3G services in India, with its recent
launch in all the nine telecom Circles where it bagged the 3G license. In association with its partner NTT
DOCOMO, the Company finds itself suitably positioned to leverage this first-mover advantage. With 3G, Tata
DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the
world's leading mobile operators-in Japan, the company is the clear market leader, used by nearly 55 per cent of
the country's mobile phone users.

NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its
development of cutting-edge technologies and services. Over the years, technologists at DOCOMO have
defined industry benchmarks like 3G technology, as also products and services like i-Mode, e-wallet and a
plethora of lifestyle-enhancing applications. Last year itself, while most of the rest of the industry was only
beginning to talk of 4G technology and its possible applications, DOCOMO had already concluded conducting
4G trials in physical geographies, not just inside laboratories!

DOCOMO is a global leader in the VAS space, both in terms of services and handset designs, particularly
integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such
as these being introduced in the Indian market through the Tata DOCOMO brand.

Tata DOCOMO has also set up a ‘Business and Technology Coordination Council', comprising of senior
personnel from both companies. The council is responsible for the identification of key areas where the two
companies will work together. DOCOMO, the world's leading mobile operator, will work closely with the Tata
Teleservices Limited management and provide know-how to help the company develop its GSM business.

On the CDMA platform, despite being the latest entrant, Tata Indicom has already established its presence and
is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA
1x technology platform in India. Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd,
serves over 84 million customers in more than 450,000 towns and villages across the country, with a bouquet of
telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and
Wireline Services.

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Tata Docomo refreshed its campaign starting April 8, 2011.The “Keep It Simple, Silly” ad features their new
brand ambassador and Bollywood star Ranbir Kapoor. The new ad campaign is claimed to be exciting and
innovative and is being featured during the IPL 4 Season. It features Ranbir performing stand-up-comedy as a
series of several 30 second episodes. Following its "Do the New" slogan Tata Docomo became the first to
introduce Roam Free Packs to Postpaid customers offering free incoming roaming service while in docomo
Network. Tata Docomo choosed popular Tamil actor Vijay as its brand ambassador for Tamilnadu.

Competitive companies of Tata DOCOMO

 Aircel
 Airtel
 Cheers Mobile
 BSNL
 Idea 
 Loop Mobile 
 MTNL
 MTS
 Ping Mobile 
 Reliance Communications 
 Uninor 
 Videocon
 Vodafone
 Tata Docomo's parent company also operates Virgin Mobile (GSM).

Vision Tata DOCOMO

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We will leverage our strength in executing complex global- scale projects to make leading edge information and
communication services affordable by all individual consumers and business in india. We will offer
unparalleled value to create customer delight and enhance business productivity. We will also generate value for
our capabilities beyond indian borders while enabling millions of India’s knowledge workers to deliver their
services globally

Tata DOCOMO’s Quality policy

Tata DOCOMO is committed to Total Customer Delight through High Quality services, Efficient
Customer Service at minimum cost. We shall comply with all Technical, Contractual and Statutory
Requirements. Our Products, Processes and Human Resources will always be under continual
improvement to meet the changing market.

Tata DOCOMO’s LOGO:-

Tata DOCOMO’s structure

The structure of the co. is defined by the following chart.

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Products & Services Counter Scales
1. VOICE

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 Prepay Services

Post pay Services

Roaming Services

2. INTERNET

Mobile Internet

Broadband

3. DIVE-IN

Cricket

Music

More Value Added Services

4. 3G

Hello 3G

3G Prepay

3G Postpay

3G Devices

5. DEVICE

Handheld Devices

Handsets

Tablets

BlackBerry

Photon

Walky

6. PHOTON

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 Devices

Services

7. WALKY

Advantage

Prepay

Postpay

Devices

8. SOLUTIONS

SmartBus Tracker

SmartHome Surveillance

SmartCar Security

9. CUSTOMER CARE

Looking for us

Complaints & Compliments

Account Services

3.Introduction of Value Added Service

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1.1 About Value Added Services

Mobile phones today have moved beyond their fundamental role of communications and have graduated to
become an extension of the persona of the user. We are witnessing an era when users buy mobile phones not
just to be in touch, but to express themselves, their attitude, feelings & interests.

Customers continuously want more from their phone. They use their cellular phones to play games, read news
headlines, surf the Internet, keep a tab on astrology, and listen to music, make others listen to their music, or
check their bank balance.

Thus, there exists a vast world beyond voice that needs to be explored and tapped and the entire cellular
industry is heading towards it to provide innovative options to their customers. Spoilt by choice, the mobile
phone subscribers are beginning to choose their operators on the basis of the value added services they offer.
The increased importance of VAS has also made content developers burn the midnight oil to come up with
better and newer concepts and services.

As the telecom industry sees a rapid decline in voice tariffs, it is looking at services beyond standard voice calls,
or Mobile Value Added Services (MVAS) to propel it to the next level of growth. With mobile penetration
expected to go up to nearly 100% by 2015, and the advent of 3G, VAS revenues are expected to grow to
approximately Rs. 48,000 crores . The industry is looking at various means to use VAS as a growth driver and
simultaneously as a key differentiator. While today, non-voice revenues in India only account for about 12% of
an operator’s revenues, the global average for leading MVAS countries is far higher, pegged at approximately
25% of total revenue.

In order to ensure a high growth in MVAS revenue, it is imperative that newer avenues are explored to provide
user-centric content and application services. Such forecasting is not unfounded as there are innovative
offerings available for users. However, the need is for identifying specific niche segments that require certain
specialized delivery. These segments could be among the urban or non-urban users. In addition to such
improved delivery, it could serve the industry well, if a user-centric approach is adopted in providing services
that are technology-agnostic. Long term growth will be ensured if detailed learnings from user experiences are
examined continuously in providing innovative services.

1.2 What is VAS?

Mobile Value Added Services (MVAS) does not constitute as a basic service offered to a subscriber. It is

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provided to subscriber as an add-on service, for which the operator charges a premium. MVAS is offered to add
“value” to subscriber and can also be stated as services beyond voice communication which are offered by
mobile operators to their subscribers at premium. Commonly, it could be defined as:

Services that are not part of the basic voice offer and availed separately by the end user. They are used as
a tool for differentiation and allow mobile operators to develop another stream of revenue.

Indian mobile VAS industry has evolved from P2P SMS to mobile TV over the past decade. It is evident that as
mobile industry in India evolved over the decade, more innovative and complex VAS entered the market. These
services followed the trend Entertainment VAS- Information VAS- mCommerce.

Mobile VAS industry is in India is about to enter its second decade where mobile TV, video on demand and
user generated content (UGC) are expected to be the driving VAS. Indian mobile industry when started was
primarily seen as substitute to conventional landline phones. It was considered as a mode of communication
facilitating “on the move” to stay connected with others. It was high premium services, affordable to only few.

By early 2000, P2P SMS was the only value added service being offered to as well as used by mobile
subscribers. Slowly other VAS such as wallpaper and graphic downloads entered the market and VAS started
getting momentum.

By 2003-04, mobile industry in India slowly started transforming from a premium offering to mass market.
CDMA launches across various circles kicked off early stages of price war.
Around same period, value added services also witnessed large number of new services as well as innovative
plans and pricing. However VAS offerings till mid 2003-04 were primarily basic application and focused on
entertainment VAS.

It was still only by middle of the first decade when high order VAS such as ringtones, voting /contest
participation, arrived. Both, ringtones and contest participation got large subscribers. TV shows such as KBC
(Kaun Banega Crorepati) and Indian Idol, one of the most famous shows at that time on Indian Television saw
large number of viewers participating in SMS contests. It was the same time Indian wireless subscribers crossed
50Mn mark.

By 2007-08, SMS started becoming a commodity among urban users. High end VAS such as Caller Ring Back
Tone (CRBT), mobile internet and mCommerce slowly started getting momentum in urban circles. On other
side, rural subscribers were getting added in large numbers who were new entrants; for them entertainment
VAS (SMS and downloads) continued to be the main services.

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Today, in year 2012, we are witnessing new offerings such as Mobile TV, social mobile entering the Mobile
VAS. Similarly Mobile Apps - potentially the next big thing in VAS is already witnessing large push from
supply side.

1.3 VAS: A Source of Revenue

For Mobile Operator:

Continuously declining ARPU (Average Revenue Per User) is a major concern for mobile operators. Reduction
in call rates has reached a stage where it is difficult to sustain.

Decreasing call rates has also resulted in decreasing ARPU for the mobile operator. And thus it initiates the
need for VAS as revenue tool for mobile operator. To maintain a healthy growth, the operator needs to come up
with innovations that will result in revenue generation. These innovations in plans and offerings can only be
offered through VAS. Also, mobile operators can differentiate themselves only on the basis of VAS and no
more on the basis of price.

For A Mobile Subscriber:

For a subscriber, mobile is not just a device to communicate, it’s a multipurpose tool that enables users to
communicate as well as provides infotainment5 to them. This evolution from mere substitute to telephone to

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“All in one” device leads to higher usage of VAS. Voice calls as well as P2P SMS (conventionally considered a
VAS) is more like a commodity. VAS is something which enables them to do lot more than mere
communication.

1.4 Value-added Service Characteristics

1. Not a form of basic service but rather adds value total service offering

2. Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)

3. Can sometimes stand alone operationally

4. Does not cannibalize basic service unless clearly favorable

5. Can be an add-on to basic service, and as such, may be sold at a premium price

6. May provide operational and/or administrative synergy between or among other services – not merely
for diversification

7. Every VAS will demonstrate one or more of the above characteristics. Furthermore, a value-added
service will never stand in stark contrast to any of the above characteristics.

8. VAS also have a certain time dimension associated with them. Subjectively speaking, a value-added
service today becomes a basic service when it becomes sufficiently common place and widely deployed
to no longer provide substantive differentiation on a relative basis.

1.5 Relationship of VAS to other Services

There are two types of VAS. The first service types are those value-added services that stand alone from an
operational perspective. These types of services need not be coupled with other services, but they can be. Many

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non-voice services fall into this category. They are often provided as an optional service along with voice
services, but they could be offered and used by themselves without the voice service. For example, SMS could
be offered and used as a service without voice calling.

The second, and arguably more numerous and important type of VAS, are those services that do not stand-
alone. Instead, this category adds value to existing services. While it seems implicit in the definition of value-
added, this is an important principle that makes value-added services stand apart from other services.

3. Review of existing literature

A value-added service (VAS) is popular as a telecommunications industry term for non-core services,

or in short, all services beyond standard voice calls and fax transmissions. However, it can be used in any

service industry, for services available at little or no cost, to promote their primary business. In the

telecommunication industry, on a conceptual level, value-added services add value to the standard service

offering, spurring the subscriber to use their phone more and allowing the operator to drive up their ARPU. For

mobile phones, while technologies like SMS, MMS and data access were historically usually considered value-

added services, but in recent years SMS, MMS and data access have more and more become core services, and

VAS therefore has beginning to exclude those services.

A distinction may also be made between standard (peer-to-peer) content and premium-charged content. These

are called mobile value-added services (MVAS) which are often simply referred as VAS.

Value-added services are supplied either in-house by the mobile network operator themselves or by a third-

party value-added service provider (VASP), also known as a content provider (CP) such as All Headline

News or Reuters.

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VASPs typically connect to the operator using protocols like Short message peer-to-peer protocol (SMPP),

connecting either directly to the short message service centre (SMSC) or, increasingly, to a messaging gateway

that gives the operator better control of the content.

4. Objective of the study

The objectives for the research problem in hand are as follows:

 To know about the awareness level of consumers regarding for the scope of VAS.
 To ascertain the attributes that consumer prefers in selecting a particular VAS.
 To study the consumers' satisfaction level towards various services offered by VAS.
 To assess the problems faced by the VAS users regarding their respective VAS providers.
 To understand and offer valuable suggestions to improve the VAS.

Along with the above objectives, the main objective of the project given to me is that “To enhance
the scope of value added service and customer awareness about the value added services of Tata
DOCOMO in corporate clients and common people in Bihar state ,” so as to increase the customer
base of Tata DOCOMO and to generate the revenues. As Tata DOCOMO is new in Bihar region and
currently has a very low market share as compared to other mobile service providers in the state, so this
study would be useful by being an input for the scope of VAS and sales department of the company to
identify the awareness level of the customers.

5. Hypothesis

Meaning of Hypothesis : Ordinarily, when one talks about hypothesis, one simply means a mere assumption or

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some supposition to be proved or disproved. But for a researcher hypothesis is a formal question that he intends
to resolve. Thus a hypothesis may be defined as a proposition or a set of proposition set forth as an explanation
for the observed phenomenon.

Null Hypothesis -

Ho - Customers negative perception towards Value Added Services provided by Tata Teleservices Ltd

Alternative Hypothesis -

HA – Customers positive perception towards Value Added Services provided by Tata Teleservices Ltd

Statistical test = Choose the z test because the data are ratio measurement.

 Assume the underlying population is normal and we have randomly selected the sample from the
population of various retailers.

We have to research on these hypothesis which are as follows.

1. The awareness level of consumer and retailers for VAS is high.

2. Students and young agers are using VAS mostly.

3. Educated peoples are more aware than illiterate peoples.

4. Customer wants to use VAS services at low cost.

5. Tata DOCOMO VAS is not using by customer more.

6. The GPRS pack of Tata DOCOMO most use by customer.

These are some hypothesis in our mind that we have to research on it.

CHAPTER 2 : RESEARCH METHODOLOGY

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 1. Survey Population

 Number of survey population is entire Patna city which we have taken.

 Retailer wise data of number of decays in the next month was taken.

 We select the student population area just like colleges and institutes in Patna.

 Based on age group we have to survey like use of VAS as follows:-

1) 16 - 20

2) 21 - 25

3) 26 - 30

4) 31 - 35

5) Above 35

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 2. Research Design

To enable comparisons of findings to be made between the three study countries, similar research design,
methods, tools and analysis procedures were implemented in each study country. The research design was
structured around three Phases (Error! Reference source not found.):

Phase One - Preliminary data collection and data analysis

Phase Two - Main data collection
Phase Three - Main data analysis and follow-up

This incremental approach enabled Phases Two and Three to be informed by the results of the previous Phases.
These inputs range from modification of data collection tools to the need for further inputs based upon findings
from preliminary analysis. All stages of the research were informed by relevant literature from the fields of
health policy, health services, and research methodology. Data collection and analysis incorporated elements of
appreciative enquiry, where respondents were encouraged to think about and report on the ideal situation for
health policy processes. This approach encourages a positive outlook, rather than overly focusing on the
negatives (problems, obstacles, barriers) in the current situation.

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 3. Sample Size & Techniques

Sample Size:
200 respondents were selected for analysis.
 100 Retailers.
 100 Customers.

Sampling Technique :

Sampling procedure: Probability convenience sampling method.

The method used for sample technique was Probability convenience sampling method. This method is used
because it is known previously as to whether a particular person will be asked to fill the questionnaire.
Convenient sampling is used because only those people will be asked to fill the questionnaires that were easily
accessible and available to the researcher.

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 4. Data Collection (Primary & Secondary)

Primary data collection:

The primary data collected through well designed questionnaire. The questionnaire through
which data was gathered and collected consisted of questions which were mostly objective in
nature.

Secondary data collection:

The secondary data for the study got from visiting Cellular service Providers outlets and
gathering informative materials and published information. Current information regarding the
subject and company will be getting from newspapers, business magazines, customer care
executives, journals, internet, and by referring certain books on Indian Telecom Sector.

5. Analysis Pattern

 The collected data was to be analyzed by using statistical technique like Percentage Analysis.
For doing the analysis Microsoft excel was used.

6. Limitation of the study

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  This research is done for one of the best company of India which has a huge customer base
spread across the boundaries of this nation, but in this survey a sample size of just 100 customers
from Patna Region is taken which is very less as compared to the large customer base of the
company, because of this the findings revealed from the survey cannot be very well trusted and
generalized for the whole universe of customers.

 Response errors is bound to happen because the respondent many a times may not be interested
in talking to the researcher and can give forced opinions.

CHAPTER III : OBJECTIVE OF SYSTEMETIC ANALYSIS (Micro Analysis)

Awareness percentage of value added service.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
A YES 72 72
B NO 28 28

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Interpretation

The above graph shows that 72% people are aware about value added service and 28% people
are not aware about value added service. . Hence we know that maximum users are not aware
about Value Added Service(VAS).
Mostly Telecom Service use by Consumers.

Telecom NUMBER OF PERCENTAGE %

companny USERS
a Airtel 28 28
b Smart 19 19
c RIM (CDMA) 17 17
d Aircel 11 11
e Idea 7 7
f Voda 9 9
g Tata Docomo 7 7
h BSNL 2 2

Interpretation

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The above graph shows that 28% user use Airtel, 19% user use Smart, 17% user use Rim
(CDMA), 11% user use Aircel, 7% user use idea, 9% user use Vodafone, 7% user use Tata
Docomo and 2% user use BSNL telecom services.

Mostly VAS use by Consumers.

VAS Service NUMBER OF PERCENTAGE %

USERS
a SMS 64 64
b GPRS 37 37
c CRBT 13 13
d Cricket 5 5

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Interpretation
The above graph shows that 64% user prefer SMS pack ,37 % user prefer GPRS pack, 13% user
prefer CRBT, 5% user prefer cricket pack. These are the value added services which are used
by the user.

Percentage of CRBT use by Consumers.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
a YES 36 36
b NO 64 64
Hear CRBT

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Interpretation
The above graph shows that 36% user hear any song when they call to someone and 64% user don’t
hear any song when they call to someone.

Mp3 ringtone use by consumers.

Ringtone NO.OF RESPODENTS PERCENTAGE %

a Mp3 43 43
b Polyphonic 57 57

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Interpretation
The above graph shows that 43% user used Mp3 ringtone and 57% user used polyphonic ringtone in his mobile
when someone call them these types of ringtones play in his mobiles.

Usage of GPRS Packs by consumers.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
a YES 31 31
b NO 69 69

Interpretation
The above graph shows that 31% user used GPRS pack and 69% user doesn’t use GPRS
pack.

Mostly recharge by retailers

1. Airtel Rs. 98/-
2. Aircel Rs. 98/- & 14/-

Usage of SMS Packs by consumers.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
a YES 48 48
b NO 52 52

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Interpretation
The above graph shows that 48% user send SMS and 52% user doesn’t send sms.

Maximum user send approx two hundred message in a month.

This is more preferable value added service for user. Many user used this service for send text
message. Mostly Sms send by the young age user.

Future expectation of VAS suggest by consumers.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
A Reduce CRBT charge 8 8
B Fast speed in GPRS 33 33

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C Cheap sms charge 55 55
D Nothing 22 22

Interpretation
The above graph shows that in the future expectation 8% user wants to reduce crbt charge, 33%
user wants to use GPRS with fast speed that want good network, 55% user wants that sms
sending charge should be cheap and 22% users ask nothing about future expectation with Value
Added Service (VAS)?.

Consumers occurs such type problem in using VAS.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
a No problem 35 35
b CRBT activate automatically 42 42
c Extra balance reduction 31 31
d Slow speed for GPRS use 25 Page 43 25
Interpretation
The above graph shows that 35% users have no problem but other users have some problem
42% users faces problem of crbt activate automatically in his account and the balance reduce,
31% user says there are extra balance are reduced from his account and 25% users says that
some time speed of gprs use is very slow and network doesn’t available. These are some
problem with Value Added Service (VAS).

Consumers satisfaction level about VAS.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
A YES 42 42
B NO 58 58

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Interpretation
The above graph shows that 42% users are satisfy with their telecom service in this there
are mostly airtel customers are highly satisfy. There are 58% customers are those who are not
satisfy with their telecom service for ex: Reliance customer are not satisfy with their Value
Added Service(VAS).

Retailers Questionnaire

Retailers awareness level about VAS

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
A YES 78 78
B NO 22 22

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Interpretation

The above graph shows that 78% retailers are aware about value added service and 22% retailer
are not aware about value added service. Hence we know that maximum retailers are aware
about Value Added Service(VAS).

Recharge percentage of Tata DOCOMO by retailers.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
A YES 73 73
B NO 27 27

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Interpretation

The above graph shows that 73% retailer recharge Tata Docomo packs and 27% retailer have
not a recharge of vTata Docomo Hence we know that maximum retailers have a recharge of
Tata Docomo.

Recharge percentage of Tata DOCOMO’s GPRS packs by retailers.

ANSWERS NUMBER OF PERCENTAGE %

RESPODENTS
A YES 49 49
B NO 37 37
C Don’t know about packs 26 26

Interpretation

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 The above graph shows that 49% retailer recharge Tata Docomo gprs packs, 37%
retailer does not recharge of Tata Docomo gprs packs and 26% retailer does not know about
Tata Docomo gprs packs.

Mostly recharge SMS packs by retailers.

Telecom NUMBER OF PERCENTAGE %

companny RECHARGE
A Airtel 17 17
B Smart 26 26
C RIM (cdma) 37 37
D Idea 5 5
E Vodafone 6 6
F Tata Docomo 9 9

Interpretation

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 The above graph shows that retailer recharge 17% Airtel, 26% Smart, 37%
RIM(cdma), 5% Idea, 6% Voda and 9% Tata Docomo.

Mostly recharge by retailers

RIM (CDMA) Rs. 39/-
Mostly recharge GPRS packs by retailers.

Telecom NUMBER OF PERCENTAGE %

companny RECHARGE
A Airtel 43 43
B Aircel 21 21
C Reliance GSM 15 15
D Idea 5 5
E Voda 7 7
E Tata Docomo 9 9

Interpretation

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 The above graph shows that retailer recharge gprs pack of 43% Airtel, 21% Aircel,
15% Reliance GSM, 5% Idea, 7% Voda and 9% Tata Docomo.

Mostly recharge by retailers

3. Airtel Rs. 98/-
4. Aircel Rs. 98/-

CHAPTER IV : MACRO ANALYSIS (Interpretation)

CHAPTER V : SUMMARY OF MAJOR OBSERVATION, FINDING

BIBLIOGRAPHY

www.google.com

www.wikipedia.com

www.slideshare.net

www.tatadocomo.com

Page 50
 APPENDICES

Topic - Customer awareness and Scope for

Value added service(VAS).
Shop name- __________________________________________

Address- ____________________________________________

1. Do you aware about value added services(VAS)? Yes / No

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 2. Do you recharge Tata Docomo pack? Yes / No

3. Which Tata Docomo GPRS pack you recharge most? ___________________

4. Which company Sms pack do you recharge most? ____________________

Which sms pack ? __________________________

5. Which company GPRS pack do you recharge most ? ___________________

which GPRS pack ? ____________________

Customer Awareness &

Scope for Value Added Service (VAS).

Name :__________________________________________________

Age : _______, Sex : _________, Profession : ___________________

Please tick on Yes or No and fill in the blanks.

1. Do you know about the value added service (VAS) ? Yes No

2. Which telecom service do you use ? __________________

3. Which VAS do you prefer ? __________________

4. Do you hear any song when you call to someone? Yes No

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5. When someone call you then which type of
ringtone play in your mobile ? Mp3 Polyphonic

6. Do you use GPRS ? Which Yes No pack : ____________

7. Do you send SMS ? How Yes No much : ______________

8. What is your future expectation with VAS?

___________________________________________________________

9. What Problem occurs in using VAS ? Yes No

______________________________________________________

10. Are you satisfy with value added service (VAS) ? Yes No

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