Airtel and idea

A

PROJECT REPORT

ON

“A COMPARATIVE STUDY ON COSTOMER SATISFECTION LEVEL OF AIRTEL AND IDEA”

AT

BHARTI AIRTEL LTD.

IN PARTIAL FULFILMENT OF THE REQUIRMENT FOR THE AWARD OF THE DEGREE OF

“MASTER OF BUSINESS ADMINISTRATION”

INVERTIS INSTITUTE OF MANAGEMENT STUDIES,

BAREILLY

(Affiliated to U. P TECHNICAL UNIVERSITY, LUCKNOW)

SUBMITTED TO: SUBMITTED BY:

MS. NEHA JOSHI SATYARTHA SINGH PATEL

(Project Guide) ROLL NO.0701570093

PREFACE

The preparation of this report provides you great pleasure in releasing

our work and market experience in few pages which shows over all result and

experienced knowledge and the practical approach about the style of a

professional and think which we found various effecting to our marketing and

product image.

The research termed as “A COMPARATIVE STUDY ON COSTOMER

SATISFECTION LEVEL OF AIRTEL AND IDEA “ Has made an effort to find

out the issues concerning with the BSNL AND other telecommunication services.

2

ACKNOWLEDGEMENT

I am neither a research expert nor a trend spotter. I am a management student

with foundations of management principles and theories, who is curious about

various sectors and its latest happenings.

I am highly obliged to Miss Neha Joshi, Management Department for his

invaluable support; guidance and knowledge that he shared with me thereby

aiding me in making this project a successful research.

Definitely, I can’t ignore the technology, with Internet as the backbone and those

search engines which helped me in building up this research project.

Lastly, I would like to thank the ALMIGHTY and my parents for their moral and

financial support and my colleagues with whom I shared my day-to-day

experience and received lots off suggestions that improved my work quality.

Satyartha Singh Patel

3

DECLARATION

I hereby declare that I have completed my research project “ Comparative study

on customer satisfaction level of Airtel and Idea in Bareilly City. I here also

declare that all information in this report is not shared by other person.

Satyartha Singh Patel

M.B.A. 3rd Sem

Roll NO. 0701570093

4

TABLE OF CONTENT

1. INTRODUCTION

1.1 TELECOM INDIA (7-9)

2. INTRODUCTION & SERVICES OF MOBILE OPERATOR (10-25)

2.1 AIRTEL (26-51)

2.2 IDEA (52-64)

3. RESEARCH METHODOLOGY (65-83)

4. FINDINGS (84-94)

5 .ANALYSIS OF DATA (95)

6. SUGGESTION (96)

7. CONCLUSIONS (97)

8. LIMITATIONS (98)

9. BIBLIOGRAPHY (99)

10. ANNEXURE (100-102)

5

INTRODUCTION

India is the most competitive market in the world and boom in telecom has

Completely changed the Tele industry scene scenario in India. Both technologies

have been quite successful in increasing the mobile usage in the country and will

likely to continue so in the near future. The mobile industry of India believes the

market still offers lot of Opportunity for both GSM and CDMA techniques while

the service Providers have been launching various plans to customers. Cellular

operators are also providing many exciting features to Increase there customers

base like hello tunes, ring tones, mms, GPRS, call Forwarding, call waiting, voice

mail missed call in formations, call Conferencing contents free offers recharge

voucher discounts, life time Validity double voucher validity, favorite’s numbers,

right talk. It is still a big question as to which of to the technologies will lead

eventually.

6

OBJECTIVE OF STUDY

The study has been conducted to fulfill following

objectives:

To determine the market share of various Mobile operators in Bareilly.

To determine the services of Airtel and Idea

To determine the comparison of customer services of Airtel and Idea.

To know and compare consumer preference of various value added

Services produced by GSM and CDMA players in Bareilly.

7

INTRODUCTION

1.1 Telecom India

This was less than five years after the invention of the commissioning of a

50-line manual telephone exchange in 1882 in Kolkata. This was less than

five years after the invention of the telephone by Alexander Graham Bell.

India had approx. 82,000 telephone connections at the time of

independence (1947) and by 1984 the number of connections had slowly

risen to 3.05 million. India's telecom network was notoriously unreliable

and only available to a small section of households along with the

corporate sector. The telecom sector was a government monopoly until

1994 when liberalization gradually took place. Cellular service was

launched in November 1995 in Kolkata.

8

History of Cellular Telephony in India

1992 Telecommunication sector in India liberalized to

bridge the gap through government spending & to

provide additional resources for the nation’s telecom

target. Private sector allowed participating

1993 The telecom industry gets an annual foreign

investment Rs 20.6 million

1994 License for providing cellular mobile services

granted by the government of India for the

Metropolitan cites of Delhi, Mumbai, Kolkata &

Chennai. Cellular mobile service to be duopoly (i.e.

not more than two cellular mobile operators could be

licensed in each telecom circle), under a fixed

license fee regime for 10 years.

1995 19 more telecom circles get mobile licenses

1995(August

)

Kolkata became the first metro to have a cellular

network

1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs

9

17,756.4 million.

1999 FDI inflow into telecom sector falls by almost 90% to

Rs. 2126.7 million

1999 Tariff rebalancing exercise gets initiated

1999(March) National Telecom Policy is announced.

2000(June) FDI inflow drops further down to Rs 918 million

coming

2000

(January)

Amendment of TRAI Act.

10

2. GSM & CDMA compression

GSM and CDMA are two different modulation standards. GSM is used primerily

in Europe and CDMA in the US. GSM uses a system called TDMA to

differentiate between different mobile calls, TDMA means Time Division Multiple

Access. CDMA is a much more complex system which uses digital codes to

differentiate between the different mobile calls. CDMA stands for Code Divison

Multiple Access. Mobiles designed for CDMA and mobiles designed for GSM

look very similar, even the construction looks the same, infact most modern

mobiles can operate using either system so that they can be used around the

world.

The world of wireless communication has opened up new vistas of technology

and a number of dedicated attempts to enhance the existent systems. Each

system is unique in its approach and the competition simply lies in the

accessibility and facilities enabled. The sphere of mobile communication is

synonymous with the GSM and CDMA communication systems, worldwide. The

services are not contained or restricted and are accessible any where.

11

To understand the main difference between GSM and CDMA communication

systems, it is essential to understand that while the former is a universal concept,

the latter has emerged out of a proprietary effort. GSM or the Global System for

Mobile communication is an international organization established in 1987, to

develop and enhance wireless communication, worldwide. CDMA or Code

Division Multiple Access is relatively new in the industry and a design of

Qualcomm, a company based in the United States of America.

The CDMA or Code Division Multiple Access was initiated as an alternative to

GSM or the Global System for Mobile communication. The difference lies in the

speed made available for data transfer, which is traditionally considered faster

with CDMA. Nevertheless, just as diverse as the scope of wireless mobile

communication is, so is the scope for both these industry giants to outdo one

another in.the global market.

12

India's Largest Cellular Operators as at Jan 31 2008

OperatorSubscriber Base

(millions)

Bharti Airtel 57.4

Reliance

Infocomm Ltd.42.6

Vodafone Essar 41.1

Bharat Sanchar

Nigam Ltd.33.7

Tata Teleservices

Ltd.22.5

Idea Cellular Ltd. 22.0

Mobile Network Statistics

13

http://www.ideacellular.com/

http://www.tataindicom.com/

http://www.tataindicom.com/

http://www.bsnl.co.in/

http://www.bsnl.co.in/

http://www.hutch.co.in/

http://www.relianceinfo.com/

http://www.relianceinfo.com/

http://www.bhartiteleventures.com/

Introduction to the Indian Mobile services sector :

Indian Telecommunications Industry has entered the age of deregulated market

competition from one of regulated monopoly enjoyed by the Department of

Telecommunications (DoT). The attractiveness of the Indian market due to its low

tele-density, high latent demand and burgeoning middle class, brought in some

of the largest global telecom players, foreign institutional investors and major

Indian industrial houses to invest in telecom, especially in the Indian cellular

industry.

Growth of the Mobile Industry in India

telecom infrastructure facilities ridden with ineffective government regulations,

Until about a few years ago, India had one of the most backward and stagnant

inadequate financial resources and unaffordability for the common man. But this

sector has seen trailblazing growth from the year 2001. In fact, the increase in

wireless subscribers between 1998 and 2003 was approximately 100%. In the

beginning of 2005, there were 50.7 million mobile users in India - including both

GSM and CDMA users - and this number is expected to grow by 20 million in the

year 2005-06

14

Developments in Mobile Technology in India

At present there are two mobile technologies in use in India; Global System for

Mobile Communication (GSM) technology, a type of Time Division Multiple

Access (TDMA) cellular network, and Code Division Multiple Access (CDMA)

2000 1X technology. However, GSM technology has limitations in offering a

range of broadband services, which CDMA 2000 1X technology that powers WLL

can provide. The head start, which cellular companies had got in wireless, got

dissipated once WLL limited mobility from the service providers like Reliance and

Tata Indicom became fully operational.

There has been an evolutionary change in mobile communication systems every decade. The

first-generation (1G) in the 1980s and second-generation (2G) cellular systems in the 1990s have

been used mainly for voice transmission and to support circuit-switched services. 1G systems

were based on analog technologies; however, 2G systems are digital systems such as the GSM,

CDMAOne and PDC. These systems operate nationwide or internationally, and are today’s

mainstream systems. Initiatives such as SMS, WAP, Wi-Fi, Bluetooth, i-Mode, etc., based on 2G

have exploited the data capability of wireless networks to deliver value-added services to

customers. Now third generation (3G) systems have emerged on the scene and the central

theme of these technologies is the convergence of communication and computing. Other than

voice, 3G supports video telephony, video games, multimedia, net-browsing, network games,

email and downloading, all at a very high data-transfer rate. The migration from 3G to fourth

generation (4G) technology will be a revolution both from technological and user perspectives.

4G today is only an evolving concept and there is no real definition of what it will be. The

concept of convergence has already begun with 3G, and 4G will bring about convergence of

communication, computing, broadcasting etc., (Pallab Dutta, “Zen of Mobile Communication”,

Government Rules and Regulations

15

With the advent of GSM in the 90’s two mobile licenses were issued per circle.

The licenses were however dogged by ineffective government regulations,

resulting in high consumer pricing (RaboCom, 2004(1)). In 2001 the deregulation

of mobile, fixed-line and long distance sectors spurred growth and allowed many

new players to enter the market. The regulatory norms introduced by TRAI had a

significant impact on the prices of long distance call charges, reducing them by

as much as 80% in just one year. It reduced the disparity between tariffs of wire

line and wireless services from a factor of 15 to 3. However, the single most

important catalyst that transformed the Indian telecom industry was the WLL

controversy which began in November, 2000 when TRAI proposed that Basic

Service Operators (BSOs) should be allowed to use cellular technology. Mobile

calling on the WLL licenses was restricted to relevant short distance calling areas

(SDCAs). However, the BSOs exploited a loophole in the license and offered full

mobility services by using call forwarding and multiple number registrations. As a

result, the GSM based operators who had paid a significant license fee (2.5

billion dollars) contested this decision. This legal battle continued for 3 years and

was finally resolved when the government introduced Unified Licensing making

cellular services technology neutral and allowing WLL players to provide full

mobility after payment of an entry fee equal to what the GSM operators had paid

(RaboCom. 2004(2)). Unified Licensing reduced the regulatory uncertainty

prevailing in the Indian Telecom industry and provided a level playing field for all

the major mobile service providers

Emergence of Strategic Alliances

The telecom industry in India started out with many small and big players.

However, with falling tariffs and greater demands by consumers, it became

16

difficult for smaller players to survive. This led to a consolidation in the industry

and as of now, there are only a few major players left in the field. A series of

strategic alliances, both formal and informal, have already been entered into in

the Indian Telecom Sector by companies who are either constrained by a

shortage of resources, do not have an adequate presence in all geographical

markets or driven by such needs as acquiring know-how, minimizing risks,

gaining critical mass or having access to brand names. For example, Reliance

Infocomm has entered into a technology agreement with Samsung of South

Korea to manufacture CDMA handsets in-house. entered into an equity

arrangement and have further plans to join hands with Bharti. Under this

arrangement, the three-company combine will operate in contiguous and

complementary circles with full internal co-ordination, thus creating in the

process, a third front in wire line business, capable of taking on the incumbent

public sector BSNL and MTNL (the first front) and Reliance Infocomm (the

second front). In the cellular segment, a three-company alliance called "Idea

Cellular" has come up. It has a large footprint (especially in the South) and

consists of the cellular businesses of the Tatas, Birlas and AT&T

Key Players in the Indian Telecom Industry

17

Bharati Group

It is the largest integrated private sector telecommunications service provider in

India today and has a presence over the entire country. It was the first private

sector company to offer basic services, national and international long distance

telephony in India. It started offering its services in the mid 90’s.

Hutchison Group

It is India’s third largest GSM operator and is part of the $55 billion Hong Kong

based Hutchison Whampoa Group. It initially began operations in one circle,

Mumbai, and has gradually expanded across the country to cover telecom circles

throughout India.

Reliance Infocomm Ltd

It is promoted by Reliance Industries Limited and offers mobile telephony

services on the CDMA platform on a nation wide optical fibre cable network

capable of supporting broadband services. Its strategy has been to acquire a

large subscriber base on the back of low tariffs and then promote calls within its

network to enable yet lower tariffs for its subscribers.

Tata Teleservices Ltd .

Owned by the Tata Group, it provides basic and wireless services on the CDMA

platform. As compared to its peers, the company has not been aggressive in

expanding in the wireless space.

Bharat Sanchar Nigam Ltd.

BSNL is a public sector organisation, wholly owned by Department of

Telecommunication (DoT). It is India’s principal provider of local and domestic

long distance telephony. It offers basic services nation wide, except for Mumbai

18

and Delhi, where MTNL is the state-run telephony service provider. On the back

of its established and well spread infrastructure of telephone exchanges, it has

been able to roll out its network at a rapid pace. factors were decided on the

basis of in-depth interviews. The constituent attributes of the three factors are as

follows:

Factor Attributes Comprising the Factor

Call Charges

SMS Rates

Talk Time

Economy

Roaming Charges

Network Coverage

Voice (Transmission) Clarity

Timely SMS Delivery

Performance

Customer Care

Free Number / SMS Offers

Ring-tones & Downloads

News / Sports Updates

Value Added Services

Horoscope and Other Services

As an outcome of this initial study, three main factors were obtained that are

used by students for forming an opinion about a mobile service provider.

19

These are:

1._ Economy

2._ Performance

3._ Value Added Services

In all, a total of four focus group discussions, with six students each, and thirty in-

depth interviews were conducted in this phase. Subsequent to this phase, a

survey of students was carried out during the Conclusive Study Phase, wherein

the importance of the different parameters and their constituents was

ascertained.

Conclusive Study Phase

In this phase, a questionnaire was designed using the preliminary data collected

from the Exploratory Phase (APPENDIX A). The questionnaire was administered

to respondents, who were graduate and post-graduate students from different

Major Players

There are three types of players in telecom services:

• -State owned companies (BSNL and MTNL)

• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures.

2.3 Value added services

Value-added services (VAS) are unlike core services. They have unique

characteristics and they relate to other services in a completely different way.

They also provide benefits that core services can not.

20

Value-added Service Characteristics

All VAS share the same 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

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.

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.

21

Relationship to other Services

There are two types of VAS. The first service type 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 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.

22

Value-added Services Examples

There are many services that could be considered "value-added". For discussion

purposes, we will a few of these services below.

Push-to-Talk

Push-to-Talk (PTT) is a VAS because it:

Drives additional revenue to the wireless carrier, but doe not cannibalize existing

revenues

Provides differentiated service offerings

May be packaged with various other VAS such as MIM to provide even greater

value

23

http://www.mobilein.com/push_to_talk.htm

Call Management Services

This type of service can not stand alone as a service. Instead, it adds value to a

core service by allowing the subscriber to manage incoming and/or outgoing

calls. For example, value-added service interactions occur when the subscriber

receives a call. Many call management services allow the subscriber to establish

when, where, and under what circumstances they may be reached by calling

parties. This provides value to the core service - voice communications - by way

of increased control and flexibility.

Depending on the specific commercial situation, this value-added service could

be offered as either a premium service (at a premium price) or be bundled with

other the core service offering. The benefit of bundling would be to provide a

differentiated core service and/or to increase the use of the core service.

24

Location Sensitive Billing

This is another example of a service that can not stand-alone. Instead, location

sensitive billing (LSB) adds value to the core service by location enabling the

core service. Location sensitive billing can be used in conjunction with post-paid,

prepaid, and/or VPN based mobile communications services to establish zones

for which differentiated billing treatment may be applied. For example, a "home

zone", "work zone", and "premium price zone" could be established to allow an

operator to offer differentiated service to its customers.

This is viewed as a value-added service to both the customer and the mobile

operator. The customer benefits from LSB through his ability to use the mobile

phone at preferred rates based on location. The wireless carrier benefits from

incremental revenues derived from additional usage and from premium charge

zones where there is already high demand and perhaps overly taxed system

capacity. While the issue of potential cannibalization of existing service arises,

customer behavior and studies indicate a net benefit derived from overall

increased usage and revenues.

Taken together, call management services and LSB also depict characteristic

number six, operational synergy. Call management services add value in terms

of providing the user options depending on location. For example, the user may

want to receive certain calls at the home zone, but not at work, and perhaps

receive only urgent calls when traveling or on vacation. LSB provides the

additional synergistic benefit of location based billing when the user is in those

various locations.

25

Mobile Data Services

This is an example of a value-added service that does stand-alone. Mobile data

services are considered value-added because they depict many of the

characteristics discussed earlier.

Does not cannibalize existing services

Can be offered at a premium price

Provides differentiation

Can provide synergy with basic service

Largely due to the current state of mobile communications evolution, many non-

voice services can be considered to be value-added. However, the extent to

which additional value-added services can be layered on top of mobile data

services will determine the limit of their value. For example, many non-voice

services will have even greater value through personalization. Two of the most

significant ways to personalize wireless services are through location enabling

them and making them personal profile driven.

Mobile data services are utilized to obtain information, content, and to perform

transactions. All of these activities are more meaningful if they are tailored to the

individual. Location based services add value by way of putting the data into a

location context for the user. Personal profiles further enhance the value through

Personalization.

26

http://www.mobilein.com/personalization.htm

http://www.mobilein.com/location_based_services.htm

2.1 Company profile

BHARTI AIRTEL LIMITED

Bharti Airtel Limited, a part of Bharti Enterprises is India's leading provider of

telecommunications services. Bharti Telecom Limited is the promoter company

of Bharti Airtel Limited.

Sunil Bharti Mittal is the Chairman and Managing Director of Bharti Airtel

Limited (“Bharti”), India’s largest private integrated telecom player since October

2001. He is the board director since July 1995. Bharti Airtel Limited was

established on July, 07, 1995 as a Private Company Limited. Sunil Mittal was

one of the first entrepreneurs to identify the mobile telecom business as a major

growth area and launched services in the city of Delhi and the National Capital

Region in the year 1995. Some of the Feathers in the cap of Mr. Sunil Bharti

Mittal are

“Best Asian Telecom CEO”, Telecom Asia Awards 2005

“Best CEO, India”, Institutional Investor, 2005

“Business Leader Of The Year”, Economic Times, 2005

“Ernst & Young Entrepreneur Of The Year 2004”, Ernst & Young He is also the

Board Member of the Global GSM Association. Sunil is an alumnus of Punjab

University and has completed the “Owner/President Management Program” from

Harvard Business School.

27

Awards and Recognitions

For the Year 2006 – 2007

Sunil Bharti Mittal is ‘CEO of the Year’ at the Frost & Sullivan Asia Pacific ICT

Awards 2006 & Bharti Airtel bags ‘Wireless Service Provider of the Year' and

'Competitive Service Provider of the Year'

Bharti Tele-Ventures is the “BEST INDIAN CARRIER” at Telecom Asia Awards

2006 Bharti Airtel Limited was the first private operator to have an all India

presence. It has 23,072,579 GSM mobile and 1,504,840 broadband & telephone

(fixed line) customers (as at month ended June 30, 2006).

The businesses at Bharti Airtel have been structured into three individual

strategic business units (SBU’s) - 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.

The mobile services are provided under Mobility leader’s business group. The

broadband & telephone services and enterprise services comes under the Infotel

leaders business group. Company shares are listed on The Stock Exchange,

Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).

28

Partners

The company has a strategic alliance with Singapore telecommunications

Limited, Singapore (SINGTEL), which owns it by 30.8%. Pastel Limited is the

investment company of SINGTEL. The company also has a strategic alliance

with Vodafone, UK; which Has 10% ownership in it. The company’s mobile

network equipment partners include Bird, Ericsson, Motorola and Nokia. In the

case of the broadband and telephone services and enterprise services (carriers),

equipment suppliers include Siemens, Nortel, Corning, among others. The

Company also has an information technology alliance with IBM for its group-wide

information technology requirements and with Nortel for call center technology

requirements. The call center operations for the mobile services have been

outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis. Besides these

companies some other share holders of Bharti Airtel Limited are CITI GROUP

GLOBAL MARKETS MAURITIUS, MORGAN STANLEY & COMPANY

INTERNATIONAL LIMITED, LIC

29

Corporate Governance

Bharti Airtel Limited firmly believes in the principles of Corporate Governance

and is committed to conduct its business in a manner, which will ensure

sustainable, capital-efficient and long-term growth thereby maximising value for

its shareholders, customers, employees and society at large. Company’s policies

are in line with Corporate Governance guidelines prescribed under Listing

Agreement/s with Stock Exchanges and the Company ensures that various

disclosures requirements are complied in ‘letter and spirit’ for effective Corporate

Governance.

During the financial year 2003-04, your Company was assigned highest

Governance and Value Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL,

which indicates that the company’s capability with respect to creating wealth for

all its stakeholders is the highest, while adopting sound Corporate Governance

practices.This rating was re-affirmed by CRISIL on April 20,2006.

30

Vision

By 2010 Airtel will be the most admired brand in India:

Loved by more customers

Targeted by top talent

Benchmarked by more business

31

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

33

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.

The Airtel Image style

34

It incorporates two solid, red rectangular forms whose counterform creates an

open doorway.

The Airtel Typographical style

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 Airtel Colour Palette

The lettering is grey so that the pure black of Airtel is visually unharmed.

Airtel Outlets

35

Airtel Postpaid Connection

As it is clear with its name “Postpaid”, it allows user to pay charges after his

usage. Airtel Postpaid connection is a service recommended for regular users.

This connection allows the users to pay for their usage on monthly basis.

Documents Required for Airtel Connection .

36

According to a directive from Department of Telecom on the additional

documentation requirement for the customers of mobile services, the

following documents are mandatory and have to be collected from all

customers:

1. Photograph

2. Proof of Address- Arms license, Ration Card, Telephone / Electricity Bill.

3. Proof of Identity – Any photo identity card, Income Tax PAN Card.

37

Airtel One 249 Plan

ONE TIME CHARGES

Activation Charges 150

Security Deposit 500

MONTHLY CHARGES (FIXED)

Bill Plan Charge 150

Monthly Rental 299 INCLUSIVE OF BILL PLAN CHARGE & CLIP

CLIP 50

Airtel Other GSM Landline/CDMA

LOCAL RATES 0.50 1.00

STD RATES

50-200 KM 2.00 2.00 2.00

200-500 KM 2.00 2.00 2.00

500+ KM 2.00 2.00 2.00

ISD

USA, Canada, Europe (Fixed Line),

Australia, Singapore, Hong Kong,

Thailand, Malaysia, Indonesia, New

14.24

38

Zealand.

Gulf, Europe (Mobile), SAARC

countries, Africa & Rest of the world

17.24

Cuba, Sao Tome & Principe, Guinea

Bissau, Diego Garcia, Nauru,

Solomon Islands, Vanuatu, Cook

Islands, Tuvalu, Tokelau, Norfolk

Island, Sakhalin

40.00

SMS

Local 1.00

National 2.00

International 5.00

VAS 3.00

One World 699

ONE TIME CHARGES

Activation Charges Rs. 250

Security Deposit NA

39

MONTHLY CHARGES (FIXED) 699

Bill Plan Charge Rs. 600

Monthly Rental Rs. 99

CLIP NA

Any Other Charges NA

MONTHLY CHARGES (OPTIONAL)

CLIP NA


LOCAL RATES Re. 1 per 2 min Re. 1 per min Re. 1 per min

STD RATES

50-200 KM Re. 1 per 2 min Re. 1 per min Re. 1 per min

200-500 KM Re. 1 per 2 min Re. 1 per min Re. 1 per min

500+ KM Re. 1 per 2 min Re. 1 per min Re. 1 per min

ISD




Zealand.

Rs.2.99 per min*

Gulf, Europe (Mobile), SAARC Rs.9.99 per min

40






Island, Sakhalin

Rs. 40.00 per min

SMS

Local Re.1

Local CDMA Re.1

National Re.1

International Re.5

VAS Rs.3

41

Group Save 249

ONE TIME CHARGES

Activation Charges Rs. 250

Membership Fee Rs. 250

Security Deposit NA


CLIP NA


CLIP NA


LOCAL RATES Rs. 0.50/min Re. 1 Re.1

STD RATES

50-200 KM Rs.2.40/min Rs.2.40/min Rs.2.40/min


500+ KM Rs.2.40/min Rs.2.40/min Rs.2.40/min

ISD

USA, Canada, Europe (Fixed Line), Rs.7.20/min

42



Zealand.



Rs.9.99/min





Island, Sakhalin

Rs.40.00/min

SMS

Local 50p

Local CDMA 50p

National Rs.2.00

International Rs.5.00

VAS Rs.3.00

Special CUG Offer:

All local calls within the group - 30p/min.

2.All STD calls within the group - 30p/min

3.All roaming outgoing calls within the group - 30p/min

Minimum member in a group required - 5

43

India Roam 399


Bill Plan Charge Rs.300

Monthly Rental Rs.99

CLIP NA


CLIP NA


LOCAL RATES Re.1 per 2 min Re.1 per min Re.1 per min

STD RATES

50-200 KM Re.1 per 2 min Re.1 per min Re.1 per min

200-500 KM Re.1 per 2 min Re.1 per min Re.1 per min

500+ KM Re.1 per 2 min Re.1 per min Re.1 per min

ISD

44




Zealand.

Rs.7.20 per min



Rs.9.99 per min





Island, Sakhalin

Rs.40.00 per min

SMS

Local Re.1

Local CDMA Re.1

National Re.1

International Re.1

VAS Re.3

CLIP waived off in this plan

National Roaming rent is waived.

No additional Security Deposit required for National Roaming

45

India Home 299


CLIP NA


CLIP NA


LOCAL RATES Re.1 for 2 min Re.1/min Re.1/min

STD RATES

50-200 KM Re.1/min Re.1/min Re.1/min

200-500 KM Re.1/min Re.1/min Re.1/min

500+ KM Re.1/min Re.1/min Re.1/min

ISD




Zealand.

Rs. 7.20



Rs. 9.99





Rs. 40.00

46

Island, Sakhalin

SMS

Local Re.1

Local CDMA Re.1

National Re.1

International Re.5

Roaming charges in Airtel network :-

Incoming calls at Re.1/min

Outgoing Local calls at Re.1/min

Outgoing STD calls at Re.1/min

Outgoing Local & National SMS at Re.1/msg

47

Advance Rental Plan 499


Bill Plan Charge Rs.499

CLIP Rs.50/-


LOCAL RATES Rs.1.75/min Rs.1.75/min Rs.1.75/min

STD RATES




ISD




Zealand.

Rs.7.20/min



Rs.9.99/min





Island, Sakhalin

Rs.40/min

48

SMS

Local 30 paise

National Rs.2

International Rs.5

Rental waived off for 12 months

All customers activated in this plan will be migrated to Airtel One 249 Plan once

the advance rental tenure gets over.

Local Toping 1 : Available at Rs.25

Calls: Airtel to Airtel Mobile @ Re.1/-


Calls: Airtel to any local Mobile or Landline @ Re.1/-



Bill Plan Charge Rs. 799

49

CLIP Rs. 50/-



STD RATES




ISD




Zealand.

Rs.7.20/min



Rs.9.99/min





Island, Sakhalin

Rs.40/min

SMS

Local 30 paise

50

National Rs.2

International Rs.5








Top



Bill Plan Charge Rs. 999/-

CLIP 50



STD RATES

51

http://www.airtelworld.com/9/postpaid_tariff.htm#top




ISD




Zealand.

Rs.7.20/min



Rs.9.99/min





Island, Sakhalin

Rs.40/min

SMS

Local 30 paise

National Rs.2

International Rs.5


52







2.2 COMPANY PROFILE

IDEA CELLULAR

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock

Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to

operate in all 22 Service Areas. Presently, operations exist in 11 Service Areas

covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,

Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East,

Rajasthan and Kerala. With a customer base of over 26 million, IDEA Cellular's

footprint currently covers approximately 60% of India's telecom population.

53

Idea Cellular is a wireless telephony company operating in various states in

India. It initially started in 1995 as a join venture between the Tatas, Aditya Birla

Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh,UP

West,Rajasthan and Tata Cellular as well as Birla AT&T Communications.

Initially having a very limited footprint in the GSM arena, the acquisition of

Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra

(excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,

Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and

Delhi (inclusive of NCR).

The company has its retail outlets under the "Idea n' U" banner. The company

has also been the first to offer flexible tarrif plans for prepaid customers. It also

offers GPRS services in urban areas.

A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the

distinction of offering the most customer friendly and competitive Pre Paid

offerings, for the first time in India in an increasingly segmented market.

Customer Service and Innovation are the drivers of this Cellular Brand. A brand

known for their many firsts, Idea is only operator to launch GPRS and EDGE in

the country. Idea has received international recognition for its path-breaking

innovations when it won the GSM Association Award for "Best Billing and

Customer Care Solution" for 2 consecutive years

IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a

market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by an

extraordinary force of over 100,000 employees belonging to 25 different

54

http://en.wikipedia.org/wiki/GPRS

http://en.wikipedia.org/wiki/Delhi

http://en.wikipedia.org/wiki/Rajasthan

http://en.wikipedia.org/wiki/Kerala

http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Uttar_Pradesh

http://en.wikipedia.org/wiki/Chattisgarh

http://en.wikipedia.org/wiki/Madhya_Pradesh

http://en.wikipedia.org/wiki/Andhra_Pradesh

http://en.wikipedia.org/wiki/Gujarat

http://en.wikipedia.org/wiki/Goa

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Maharashtra

http://en.wikipedia.org/wiki/2004

http://en.wikipedia.org/w/index.php?title=Escotel&action=edit&redlink=1

http://en.wikipedia.org/wiki/GSM

http://en.wikipedia.org/wiki/AT%26T

http://en.wikipedia.org/wiki/Aditya_Birla_Group

http://en.wikipedia.org/wiki/Aditya_Birla_Group

http://en.wikipedia.org/wiki/Tata_Group


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Telephony

nationalities, over 50% of its revenues flow from its overseas operations. The

Group has been adjudged ‘The Best Employer in India and among the Top 20 in

Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.

The combined holding of the Aditya Birla Group companies in IDEA stands at

around per cent. 57 With ambitious future plans, the company is poised for rapid

growth across the whole country.The Indian telecommunications market for

mobile services is divided into 22 "Service Areas" classified into "Metropolitan",

Category "A", Category "B and Category "C "service areas by the Government of

India. These classifications are based principally on a Service Area’s revenue

generating potential.The established service areas are Delhi, Andhra Pradesh,

Gujarat and Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh

(West).

Licenses for the Maharashtra and Gujarat Service Areas were awarded in

December 1995, with network rollout and commercial launch achieved in 1997.

In January 2001 the mobile operations in Andhra Pradesh Service Area were

integrated with IDEA through a merger with Tata Cellular Limited. In June 2001,

the mobile operations in Madhya Pradesh Service Area were fully integrated with

IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the

license for Delhi Service Area was acquired during the fourth mobile license

auction, with network rollout and commercial launch in November 2002. In

January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was

acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh

(West) and Kerala. All these Service Areas were re-branded and integrated with

IDEA in June 2004.

55

The New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal

Pradesh.

Licenses for these New Service Areas were acquired through the acquisition of

Escotel (Escorts Telecommunications Limited).

Following significant investment in the roll-out of network in the New Service

Areas, amounting to approximately Rs. 4,678 million upto September 30, 2006, a

full commercial launch of mobile services was achieved in the New Service

Areas between September and November 2006 in a manner which also met the

network roll-out requirements of the licenses in 2007.One of India's leading GSM

mobile service operators, IDEA Cellular is headquartered in Mumbai and has

over 21 million subscribers. IDEA has licenses to operate in 13 circles comprising

states of Mumbai, Delhi, UP, Uttaranchal, Haryana, Rajasthan, Madhya Pradesh,

Chattisgarh, Gujarat, Maharashtra (excluding Mumbai), Goa, Andhra Pradesh,

Bihar and Kerala. IDEA's footprint covers approximately 70 per cent of the

national market for mobile telephony. Idea is targeting roll out in Mumbai and

Bihar circles shortly for which spectrum is already allotted. IDEA has also

received Letter of Intent for remaining 9 circles.IDEA offers GPRS on all its

operating networks for both postpaid and pre-paid services, and was the first

company to demonstrate and commercially launch the next generation EDGE

technology for its Delhi Circle. IDEA has also been a pioneer in technology usage

by employing satellite connectivity to reach inaccessible rural areas in Madhya

Pradesh.

56

A leader in value-added services, innovation is central to IDEA's VAS products.

IDEA was the first to offer 'Global SMS' in over 540 networks across all

technology platforms, and the first to offer a voice portal with 'SAY IDEA'. IDEA

has also recently launched services like ‘Press * to copy a Dialer tone’,

IDEA TV – first GSM Multi channel mobile television experience, IDEATIMES –

The first MMS magazine, Voice chat, Instant Messenger and more. IDEA has

also launched its PCO service to reach a customer base. IDEA’s tariff plans have

been customer friendly, catering to unique needs of different consumer

segments. 'WOMEN’S CARD' is meant to fulfill special needs of women on the

move, and ‘YOUTH CARD’ specifically caters to the emerging youth segment.

IDEA is also the only Indian GSM operator to win the GSM Association Award in

the Best Mobile Technology category for the 'Best Billing and Customer Care

Solution', both in 2006 and 2007.

Truly, an IDEA can change your life

57

Holding

Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in

the company. But following AT&T Wireless' merger with Cingular Wireless in

2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by

both the Tatas and Birlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a

CDMA-based mobile provider, cropped differences between the Tatas and the

Birlas. This dual holding by the Tatas also became a major reason for the delay

in Idea being granted a license to operate in Mumbai. This was because as per

Department of Telecom (DOT) license norms, one promoter could not have

more than 10% stake in two companies operating in the same circle and Tata

Indicom was already operating in Mumbai when Idea filed for its license.

58

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/CDMA

http://en.wikipedia.org/wiki/Tata_Indicom


http://en.wikipedia.org/wiki/Cingular_Wireless

http://en.wikipedia.org/wiki/AT%26T_Wireless

The Birlas thus approached the DOT and sought its intervention, and the Tatas

replied by saying that they would exit Idea but only for a good price. On April 10,

2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held

by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of

the 48.14% stake was acquired by Aditya Birla Nuvo, a company in-charge of

the Birlas' new business initiatives, the remaining stake was acquired by Birla

TMT holdings Private Ltd., an AV Birla family owned company.Currently, Birla

Group holds 98.3% of the total shares of the company.

Idea has successfully launched 5 more new circles (states) in India viz. Bihar,

Jharkhand,Orrisa,Mumbai and UP (East) to make itself a pan-India player.

Recently, Idea got licenses to operate in Mumbai & Bihar. They are awaiting the

spectrum from DoT

Subscriber Base

Idea's subscriber base as of December 2007 according to the Cellular Operators

Association of India is as follows

Maharashtra and Goa - 4,881,444

Madhya Pradesh and Chhattisgarh - 3,226,230

Andhra Pradesh - 3,252,035

Kerala - 2,704,888

Gujarat - 2,623,072

Uttar Pradesh (West) - 2,568,279

59


http://en.wikipedia.org/wiki/Gujarat

http://en.wikipedia.org/wiki/Kerala

http://en.wikipedia.org/wiki/Andhra_Pradesh

http://en.wikipedia.org/wiki/Chhattisgarh

http://en.wikipedia.org/wiki/Madhya_Pradesh

http://en.wikipedia.org/wiki/Goa

http://en.wikipedia.org/wiki/Maharashtra

http://www.coai.in/archives_statistics_2008_q1.htm

http://www.coai.in/archives_statistics_2008_q1.htm



Delhi - 1,897,693

Haryana - 980,760

Uttar Pradesh (East) - 967,862

Rajasthan - 824,805

Himachal Pradesh - 74,505

Totalling to 21,054,027 or 12.46%(Approx.) of the total 192,696,402[1] mobile

connections in India

BOARD OF DIRECTORS

Mr. Kumar Mangalam Birla (Chairman)

Smt. Rajashree Birla

Mr. M.R. Prasanna

Mr. Saurabh Misra

Mr. Sanjeev Aga (Managing Director)

Mr. Arun Thiagarajan

Ms. Tarjani Vakil

Mr. Mohan Gyani

Mr. Biswajit Anna Subramanian

Mr. Gian Prakash Gupta

60

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Idea_cellular#cite_note-0%23cite_note-0

http://en.wikipedia.org/wiki/Himachal_Pradesh

http://en.wikipedia.org/wiki/Rajasthan


http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Delhi

Prepaid Recharge - UPW

MRP Service tax Processin

g Fee

Talk Time Validit

y

MOU Description

Fro

m

To From To From To Fro

m

To

100 108 11.0011.8

810 79.00 86.12 0 56 62

109 109 11.99 97.01 0 0 30 0 0Free 265 I2I

mins

110 117 12.1012.8

710.00 87.90 94.13 0 63 67

118 118 12.98 12.9

8

105.02 0 0 0 0 0 All local calls

@ 50 paise

61

and all std

calls @ Re.1

119 149 13.0916.3

910 95.91

122.6

10 69 88

150 198 16.521.7

8128.64 4.86 47.58 30 3 34

199 199 21.8921.8

9156 21.11 21.11 60 15 15

200 200 22 22 0 178 178 0 12712

7

201 209 22.1122.9

9128.64 50.25 57.37 30 36 41

211 250 23.21 27.5 128.6 59.19 93.9 30 42 67

251 296 27.6132.5

6120

103.3

9

143.4

430 74

10

2

297 297 32.6732.6

7254.33 10 10

Super

lifelong7 7

298 298 32.7832.7

8120

145.2

2

145.2

230 104

10

4

299 299 32.8932.8

9116.11 150 150 15 107

10

7

300 300 33 33 0 267 267 0 19119

1

301 302 33.11 33.2 110 157.8 158.7 30 113 11

62

2 9 8 3

303 303 33.3333.3

3156

113.6

7

113.6

760 81 81

304 344 33.4437.8

4110

160.5

6

196.1

630 115

14

0

345 345 37.9537.9

5257.04 50.01 50.01 180 36 36

451 494 49.6154.3

4110

291.3

9

329.6

630 208

23

5

495 495 54.4554.4

5430.55 10 10 Lifetime 7 7

496 600 54.56 66 110331.4

4424 30 237

30

3

601 665 66.1173.1

5117

417.8

9

474.8

545 298

33

9

666 666 73.2673.2

6243.37

349.3

7

349.3

790 250

25

0

667 750 73.37 82.5 117476.6

3550.5 45 340

39

3

996100

0

109.5

6110 150

736.4

4740 90 526

52

9

Assumptions

Traffic rates and pattern

63

I2I 1 45%

I2M 1.5 40%

I2L 1.5 5%

STD 2.75 10%

Airtime rate per min 1.4

VALUE ADDED SERVICES OF IDEA

64

Just when you thought you had the cake, we made it possible for you to eat it

too.Introducing THE IDEA Value Added Services, a vibrant bouquet of "little

conveniences" "small pleasures" "bits of happiness" "dollops of infotainment" and

all those "itsy bitsy" wants of yours that together make up THE BIG SMILING

PICTURE.

SMS based services to Voice based ones, the Idea range cuts across all modes

of communication to ensure the BEST VALUE for your money.

So be it downloading the latest ring tones or sharing the freshest of blonde jokes,

be it checking the status of your cousin's train arrival time or arranging a pick up

for your boss's delayed flight, Idea hands you the power to do it all.

65

RESEARCH

METHODOLOGY

67

The Research methodology for the present study is outlined below:-

Developing a Research Design:

Problem Definition

Type of research adopted

Method used in the research

Sampling Design:

Type of approach followed

Sample size

Data Collection:

Basic method adopted

Questionnaire-Design & Construction

Analysis & Interpretation:

Developing a research design

68

Significance of Research

“All progress is born of inquiry. Doubt is often better than overconfidence. For it

leads to inquiry leads to invention” is a famous Hudson Maxim in context of with

the significance of research can be understood. Increased amounts of research

make progress possible. Research includes scientific and inductive thinking and

prompted the development of logical habits of thinking and organization. The role

of research in several fields of applied economics, whether related to business or

to the economy as a whole, ahs greatly. Increased in modern times. The

increasingly complex nature of business and government has focused attention

on the use of research and solving operational problems. Research, as and aid

to economic policy, has gained assed importance, both for government and

business. Research provides the basis for nearly all government policies in our

economic system. Research has its special significance in solving various

operational and planning problems of the business and industry. Research is

equally important for social scientists in studying social relationship and in

seeking answers to various social problems.

To philosophers and thinkers, research methodology, research may mean a

source of livelihood. To philosophers and thinkers, research may be development

of new ideas and insights. To literate men and women, research may mean the

development of new styles and creative work. To analysis and intellectuals,

search may mean the generalization of new theories.

69

“Research methodology is a way to systematically solve the research

problem. It may be understood as a studying how research is dined

scientifically.”

In it way study the various steps that are generally adopted by a researcher

problem along with the logic behind them. It is necessary for the researcher to

know not only the research methods/techniques but also the methodology.

Researchers not only need to know and develop certain indices or tests, how to

calculate the mean, the median or the standard devotion or chi-square, how to

apply particular research techniques. The scope of research methodology is

wider than that of research methods but also consider the logic behind the

methods following order concerning various steps provides a useful procedural

guideline regarding the research process.

Formulating the research problem.

Extensive literature survey.

Developing the hypothesis.

Preparing the research design.

Collecting the data.

Execution of the project.

Analysis of data.

70

Hypothesis Testing:

Generalization and Interpretation

Preparation of the report of presentation of the results, i.e. formal write-up of

conclusion reached.

Research methodology:

Research in common parlance refers to search for knowledge. One can also

define research as scientific and systematic search for pertinent information on

specific topics. In fact, research is an art of scientific investigation.

According to Clifford Woody, “Research comprises defining and refining a

problem. Formatting hypothesis or suggested solution: and at last carefully

testing the conclusion: to determine whether they fit the formulating hypothesis.

71

Objectives of Research

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out the

truth which is hidden and which has not been discovered as yet. Though each

research study has its own specific purpose, we may think of research objectives

as falling into a number of following broad grouping:

1. To gain familiarity with a phenomenon or to achieve new insights into

(studies with this object in view are know as descriptive research studies).

2. To portray accurately the characteristics of a particular individual, situation

or a group (studies with this object in view are know as descriptive

research studies).

To determine, with which something occurs or with which it associated with

something else (studies with this object in view are know as diagnostic research

studies).

72

To test a hypothesis of a casual relationship between variables (such studies are

know as hypothesis sting research studies).

Types of Research:

The basic types of research are as follows:

Descriptive v/s Analytical:

Descriptive research includes surveys and fact-finding enquires of different kinds.

The major purpose of descriptive research is description of the state of affairs, as

it exists at present. In social science and business research we quite often use

the term Ex post facto research for descriptive research has no control over the

variables; he can only report what has happened or what is happening.

Applied v/s Fundamental:

Research can either be applied (or action) research or fundamental (or basic or

pure) research. Applied Research aims at finding solution for an immediate

problem facing a society or an industrial / business organization, whereas

fundamental research is mainly concerned with generalization and with the

formulation of a theory. “Gathering Knowledge’s sake is termed ‘pure’ or ‘basic

research’.

73

Quantitative v/s Qualitative:

Quantitative research is based on the measurement of quantity or amount. It is

applicable to phenomenon that can be expressed in terms of quantity

phenomenon, i.e. phenomenon relating to or involving quality or kind. For

instance, when we are interested in investigating the reasons for human behavior

(i.e. why people think or do certain things), we quite often talk of ‘Motivation

Research’, an important type of qualitative research. The type of research aims

at discovering the underlying motives and desires, using in depth interviews for

the purpose.

Conceptual v/s Empirical:

Conceptual research is that related to some abstract idea (s) or theory.

Philosophers and thinkers to develop new concepts or to reinterpret existing

ones generally use it. On the other hand, empirical research relies on experience

or observation alone, often without due regard for system and theory. It is data

based research, coming up with conclusion, which is capable of being verified, by

observation or experiment. We can also call it as experimental type of research.

74

Some other types of research:

All other types of research are variation is one or more of the above stated

approaches, based on either the purpose of research, or the time required to

accomplish research, or the environment in which research is done, or on the

basis of some other similar factor, from the point of view of item, we can think or

research either as one time research of longitudinal research. In the former case

the research is confined to single time-period, whereas in the latter is carried on

over several time-period. Research can be field-setting research of laboratory

research or simulation research, depending upon the environment in which is to

be carried out. Research can as well be understood as clinical or diagnostics

research. Such researchers follow case-study methods or in depth usually go

deep into the causes of things or events that interest us, using very small

samples and very deep probing data gathering devices. The objectives of

exploratory or it may be formalized. The objectives of exploratory research is the

development of hypothesis rather than their testing; whereas formalized research

studies are those with substantial structure and with specific hypothesis to be

tested. Historical research is that utilized historical sources like documents

remain, etc. to study events or ideas of the past, including the philosophy of

persons and groups at any remote point of time. Research can also; be classified

as conclusion-oriented and decision-oriented. While doing conclusion-oriented

research, a researcher is free to pick up a problem, redesign the enquiry as he

proceeds and is prepared to conceptualize as he wished. Decision maker and

the researcher in the case are not free to embark on research according to his

own inclination. Operations research is an example of decision-oriented research

since it is scientific methods of providing executive departments with a

quantitative basis for decisions regarding operations under their control.

75

What is a Research Problem?

A research problem, in general, refers to some difficulty, which a researchers

experiences in the context of either a theoretical or practical situation and wants

to obtain a solution for the same.

Selecting the Problem:

The research problem undertaken for study must be carefully selected. The task

is a difficult one, although is may not appear to be so. Nevertheless, every taken

from a researcher must find out his own salvation for research problems cannot

be borrowed. A problem must spring from the researcher’s mind like a plant

springing from its own see. We have to see ourselves and enable him to

prescribe for us the right number by cooperating with him. Thus, a research

guide can at the most only help a researcher choose a subject. However, the

following points may observe by a researcher in selecting a research problem or

a subject for research.

(a) Subject that is overdone should not be normally chosen, for it will be a difficult

task to throw any new light in such case.

(b) Controversial subject should not become the choice of an average

researcher.

(c) To narrow or too vague problems should be avoided. The subject selected

for research should be familiar and feasible so that the related research material

or sources of research are within one’s reach. Even that it is quite difficult to

supply definitive ideas concerning how a researcher should obtain for his

research.

76

(d) The importance of the subject, the qualification and the training of a

researcher, the cost involved, at a time factor are few other criteria that must also

be considered in selecting a problem.

(e)The selection of problem must be preceded by a preliminary study. This may

not be necessary.

(f) When the problem requires the conduct of a research closely similar to one

that has already been done. But when the field of inquiry is relatively new and

does not have available a set of well-developed techniques, a brief feasibility

study must always be undertaken.

Research Design:

The formulated problem that follows the task of defining the research problem

that follows the task of defining is the preparation of the design of the research

project, popularly known as the ‘research design’. “A research design is the

arrangement of conditions for collection and analysis of data is a manner that

aims to combine relevance to the research purpose with economy in procedure”.

Features of a good design:

A good design is often characterized by adjectives like flexible, appropriate,

efficient and economical and so on. Generally, the design which minimizes bias

and maximizes the reliability of the data collected and analyzed is considered a

good design. The design that gives the smallest experimental error is supposed

to be the best design in many investigations.

77

A research design appropriate for a particular research problem, usually involves

the consideration of the following factors:

The means of obtaining information.

The availability and skills of the researchers and his staff, if any

The objectives of the problem to be studied.

The availability of time and money for the research work.

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Developing a Research Plan:

Research plan must contain the following items:

(1) Research objectives should be clearly stated in a line or two, which tells

exactly what it is that the researcher expects to do.

(2) The problem to be studied while researcher must be explicitly stated so that

one may know what information is to be obtained for solving the problem.

(3)Each major concept which researcher wants to measure should be defined in

operational terms in context of the research project.

(4)The plan should contain the method to be used in solving the problem. An

overall description of the approach to be adopted is usually given and

assumption, if any, of the concerning method to be used are clearly mentioned in

the research plan.

(4)The plan must also state the details of the techniques to be adopted. For

instance, if interview method if too used, an account of the nature of the

contemplated interviews procedure should be given. Similarly, if test are to be

given, the condition under which they are to be used. If public records are to be

consulted as sources of data, the fact should be recorded in the research plan.

Procedure for quantifying data should also be written about in all details.

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(5)A clear mention of the population to be studied should be made. If the study

happens based, the research plan should state sampling plan i.e. how the

samples is to be identified. The method of identifying the sample should be such

that generalization form the sample to be original population is feasible.

(6)The plan must also contain the method to be used in processing the data

statistical and other to be used must be indicated in the plan. Such methods

should not be left until the data have been collected. This part of the plan may be

reviewed by experts in the field for they can often suggest changes that result in

substantial saving of time and feasible.

(7)Result of pilot test, if any should be reported. Time and cost budgets for the

researcher project should also be prepared and laid down it.

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Sampling Design

Census and Sample Survey:

All items in any field of inquiry constitute a Universe or Population. A population

complete enumeration of all in the population is known as a census inquiry.

Steps in Sampling Design:

(1) Type of Universe:

The first step in developing any sample design is to clearly define the set of

objects, called technically called the Universe, to be studied. The Universe can

be finite or infinite. In finite universe the numbers of items is certain, but in case

of an infinite universe the number of the number of items if infinite.

(2) Sampling List:

A decision has to be taken concerning a sampling unit before selecting sampling.

Sampling unit may be geographical one such as state, district, village etc. it may

be a social unit as family, club, school etc. or it may be an individual.

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(3) Source List:

It is known as ‘sampling frame’ which sample is to be drawn. It contains the

name of all items of a universe. It is extremely for the source list to be as

representative of the population as possible.

(4) Size of Sample:

This refers to the number of items to be selected from the universe to constitute a

sample. This is a major problem before a researcher. The size of sample should

neither be excessively large, nor too small. It should be optimum. Cost too

dictates the size of sample that we can draw. As such, budgetary constraint must

invariably be taken consideration when we decide the samples size.

(5) Parameters of Interest:

For instance, we may be interested in estimating the proportion of person with

some characteristics in the population of in knowing some average or the

measure concerning the population. There may also be important sub-groups in

the population about whom we should like to make estimates. All this impact

upon the sample design we would accept.

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(6)Budgetary Constraint:

Cost consideration from practical point of view, have a major impact upon

decision relating to not only the size of a non-probability sample.

(7) Sampling Procedure:

Finally, the researcher must decide the type of sample he will use. There are

several sample designs (explained in the pages that follows) out of which the

researcher must select that design which for a given sample size and for a given

cost, has smaller sampling error.

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SAMPLING PLAN

The Sampling plan was designed as follows:

Sampling Unit: Sampling Units are those people who are above the age of 18

years, they are belonging to different in Income levels that is below the

Rs.50,000 Rs.50,000-1,00,000 Rs.1,00,000-2,00,000 and more then Rs.2,00,000

these income is yearly.

Sample Size: The sample size of my data is 100. People are belonging to the

different areas of urban Bareilly.

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COLLECTION OF DATA

The task of data collection begins after a research problem has been defined and

research design is chalked out. While deciding about the method of data

collection to be used for the study; the researchers should keep in mind two

types of data i.e. Primary and Secondary data.

The primary data are those which are collected afresh and for the first time, and

thus happen to be original in character. The secondary data on other hand are

those which have already been collected by someone else and which have

already been passed through the statistical process. The data used for the

present research is primary data. The different methods that are used for

collecting primary data are as follows:

A) Contact Method:

The 'contact method ' considering the short coming was selected to personal interview.

B) Observation Method:

The present investigation was done on the basis of making note of behavior and

gestures of the target customers.

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C) Questionnaire Method:

The method of data collection is quite popular and is being adopted by

researchers, private individuals and organization.

D) Schedule Method:

The method of data collection is very much like the collection of data through

questionnaire, with little difference which lies in the fact that schedules are being

filled in by the enumerates who are specially appointed for the purpose, these

enumerators go to the respondents along with the schedule and put up the

question. Inferences are drawn on the answers given by them.

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FINDINGS

87

According to the survey done of 300 retailers, about 97% of the retailers were

aware of the value vouchers offered by the mobile service providers. Only 3%

of the retailers were not aware of these value vouchers.

Maximum numbers of retailers are aware of Value Voucher because

customers demand for it & communication from the company is proper.

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Awareness of Value Voucher

among Retailers

97%

3%

Aware

Not Aware

Awareness of Value Added Services

among Retaliers

72%

28%

Aware

Not Aware

After the survey it was found that 28% of the retailers were not aware of the

Value Added Services offered by service providers. Only 72% of the retailers

were aware of these services and vouchers.

The main reason behind it is that the communication channel about VAS is

not satisfactory.

Companies can serve its customers well only if its distribution channel is

properly informed.

The need is to communicate more our distribution channel to communicate

right information to them; effectively and timely

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Satisfaction Level of the Retailers with the Airtel Services

18%

82%

Satisfied

Not Satisfied

According to the survey, 18% of the retailers were not satisfied with

the services of AIRTEL, while 82% were satisfied with the services of

AIRTEL.

As 18% of the retailers were not satisfied with the Airtel services; the main

reason is improper communication. To satisfy them more communication of

various schemes is required among the distribution channel members.

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0

5

10

15

20

25

30

Market Demand (%)

Airtel Hutch TataIndicom

Idea Excel Reliance

Market Share of Different Service Providers according to Customers

After survey done on 400 mobile users it was observed that about 26% were

using hutch while Airtel was just behind with 23%. Reliance was at third place

with 19%. 17% customers were using Idea.

Hutch is really doing well and we need to offer good value vouchers at

competitive prices.

While Excel & Tata Indicom was having 9% & 6% market share respectively.

After the survey it was found that Airtel is behind hutch by 3%. Reliance has

left Idea behind in market share and has 19% of market share in compare to

17% of Idea.

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Satisfaction Level of Mobile Users with their Service Providers

91%

9%

Satisfied

Not Satisfied

After interacting with 400 mobile users, it was found that 93% of the total

customers were satisfied with the services offered by their service providers.

Only 7% of the mobile users were not satisfied with their mobile service

providers.

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Awareness Status of Value Added Services among

customers

21%

79%

Aware

Not Aware

customers were aware of value added services While 21% of the mobile After

interacting with 400 mobile users, it was found that 79% of the users were

not aware of it.

A customer avail any product/service only if, he/she is aware of its

advantages or utilities. So we have to convey it very efficiently & effectively.

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Awreness Status of Value Voucher among the Customers

11%

89%

Aware

Not Aware

After the survey, it was found that about 89% of the mobile users were aware

of the value vouchers available in the market. Only 11% of the mobile users

were not aware of these value vouchers.

The main reason of high awareness is better communication about Value

Voucher.

Every service provider pay more attention on Value Voucher as it is most

demanded service by the mobile user in the market.

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After the survey it was realized that 39% of the mobile users use mobile

mainly for incoming purpose. 36% of the mobile users use mobile for making

outgoing calls. 18% of users use mobile mainly for short messaging service

(SMS). 7% of mobile users uses mobile mainly for outgoing at night.

Customer perception about mobile phone has shifted from an incoming

device to an outgoing one.

39% of users use mobiles mainly for incoming. The main reason is Life Time

Incoming. A person who can not afford mobile, Life Time Incoming scheme

has made it affordable as there is no need to recharge again and again.

When Life Time Incoming scheme was launched, the customer has to make

initial investment of app. 1000Rs. But now Airtel has made it more easy with

its new scheme,”Pay 99Rs. per month and get one month validity, after 12

month no need to recharge, Plan will be converted to Life Time Incoming

Scheme automatically.

Only 7% of users make outgoing at night. This is minimum amount as

awareness is low as it is recently launched.

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Basic Requirement of the Customers for Mobile Phone

7%36%

39%18%

Mainly for Incoming

Mainly for outgoingin Night

Mainly for Outgoing

More SMS

Status of Mobile Users Travel in Roaming

12311

9

28

37

Frequently

Weekly

Monthly

Quarterly

Annualy

Uncertain

51% of the mobile users make more local calls and less STD calls.

22% of the mobile users make only local calls.

16% of the mobile users make local and STD calls in the equal ratio.

Users, which make more or only STD calls account for 6% & 5% respectively

of total customers’ sample.

The survey has showed that 51% of the mobile phone users use it, mainly for

making more local calls and less STD/ISD calls. 22% of the customers make

only local calls.

It means that local call tariffs are the major area of improvement.

We should more emphasize on local call rate reduction Value Voucher.

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SUGGESTIONS

Suggestions are valuable which play a vital role in any area of Business. They

not only help to develop the product but also enable it to stay in Tune with the

changing tastes and preferences of customers.

There should be proper management of telecommunication devices which will be more compliable for customer loading case of Airtel

There must be local Service Point.

The Complaints must be attained with the period of 24 hours in Airtel

specifically

Airtel services should to give more emphasis on internet and voice quality

and other facility also.

The employee should make better relation with customer.

The company should conduct seminar and awareness program of

telecommunication services.

Emphasis on better advertising by services.

Take feedback with customer time to time for improving their services.

Improving there services and makes better relation with customer.

Communicate with customer for knowing the problem of customer in

respect with services.

Improve services by the customer care.

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CONCLUSION

The conclusion of my research report is that none is best one in

telecommunication services.

Idea is growing vastly time to time

It is found in the research the tata indicom’s is not as good due to voice

unclearty.

Generally BSNL customer faces more discomfort with network, it is due to

overloading of customerbase and relatively lack of machines and

management.

At this time airtel is good and it may be said that its leader of this time .

Some new services is now coming as virgin.

Reliance is also good in the area and launching new schemes also.

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LIMITAIONS

Since the feedback of the customers was done through Questionnaire

major limitation was unavailability of customers thus leading to highly low

success rate.

Most of the customers were so furious that they refused to part with any

information.

Employees of company were so furious that they don’t interested in giving

any information about broadband.

Time factor

Most of the customers visiting had no time to fill questionnaire.

Most of the time when I asked customers to fill the form, they started

talking about their problems and asked me to solve the problems they

were facing instead of filling the form.

As Airtel has very wide customer base from higher educated class to

small uneducated businessman, so they were not able to answer

properly.

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BIBLIOGRAPHY

www.ideacellular .com

www.airtel.com

www.relianceinfo.com

Research Metholodgy “C.R.Kothari”

Economic Times

Business Standard

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ANEXTURE

QUESTIONARE

Name of Retail Outlet ……………………………………………

Contact Person …………………………………………………….

Contact No…………………………………………………………..

Address ………………………………………………………………

Q.1. Which operator’s connection do you USE?

1. Airtel 2. Idea

3. Hutch 4. BSNL

5. Tata Indicom 6. Reliance

Q.2. What is the activation status of each operator (according to last 3 months Sales)?

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1. Airtel 2. Idea

3. Hutch 4. BSNL

5. Tata Indicom 6. Reliance

Q.3. Do you know about the value vouchers?

1. Yes 2. No

Q.4. Which of the following are the common selling vouchers in the market?

1. Night Chat 2. SMS Pack3. Local Call rate reduction 4. STD/ISD Call rate reduction

Q.5. Do you know about the Value Added Services of Airtel & IDEA?

IDEA AIRTEL

1. Yes 1.YES 2. NO2. No

Q.6. Which of the following common Value Added Services is in demand (please rank)?

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1. Hello Tunes 2. Call Conference

3. Ring tones 4. Missed call alert

5. GPRS 6. Call divert

Q.8. What new features you expect to be in the Value Added Services?

1.

2.

3.

Q.9. What new features you expect to be in the Value Voucher?

1.

2.

3.

Q.10. Are you happy with Airtel services?

1. Yes2. No

Q.11. Any Suggestions?

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Airtel and idea

Business

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