Indian telecom service providers

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REPORT ON

“Operational Comparative Study of Indian Telecom Service providers”

SUBMITTED BY

Praveen Sidola

1021026

Master in Business Administration

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT

Hosur Road, Bangalore 560 029

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Index

s/n Title From To

1 Executive Summary 3 3

2 Introduction 4 20

3 Literature Review 21 25

4 Problem Definition and Objectives of the Project 26 27

5 Research Methodology 28 30

6 Findings & Interpretations 31 41

7 Conclusion 42 43

8 Bibliography 44 45

9 Appendix 46 54

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EXECUTIVE SUMMARY

Ranked amongst some of the fastest growing economies of the world, India has registered

steady growth over the last few years, The Indian telecom sector particularly, witnessed

aggressive growth during the last two years, emerging as a global benchmark for other

developed countries as well. All major international operators are exploring opportunities to

make inroads into the Indian telecommunication sector, both for the vast customer base as

well as to leverage on the low cost outsourcing model which India has been successful in

pioneering.

As of February 28, 2011, the country’s subscriber base (wireline + wireless) stood at 826.25

million but active wireless subscribers in VLR (Visitor Location Register) in Feb- 2011 is

562.98 Million, with the overall teledensity reaching 69.29 percent. With increasing maturity

of urban markets, the next round of growth is expected to be generated from the rural areas in

the form of increased uptake of voice and data based value added services, as well as

broadband services.

The penetration of broadband in India has not been as aggressive as the wireless

communication services. As of February 2011, the broadband subscriber base in India is

approximately 11.47 million. The government, recognizing the potential of broadband as a

key enabler in furthering its growth agenda, has taken a strong stance to address the issue of

low penetration and enhance broadband coverage across the country. The recently concluded

3G and BWA auctions are likely to be the catalyst that furthers the government’s agenda of

providing broadband connectivity to the remotest parts of India.

The government as well as other telecom stakeholders believe that these wireless

technologies will help overcome the barriers of expensive wireline infrastructure, especially

in the low revenue generating zones.

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Chapter - 1

Introduction

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1.1 The Global Telecommunication Industry Telecom services will continue to be one of the key growth sectors having generated

revenues of roughly INR 67 trillion in 2009. Global wireless subscribers reached 4.6 billion1

in 2009 with a CAGR of 22 percent over 2004-20091. This occurred despite some carriers

experiencing marginal declines or fl at trends

In revenues with enterprises and consumers exercising cut backs on telecom spending during

the global economic slowdown. The continuing rise in affl uence levels in emerging markets

and the resultant increase in the standard of living is expected to have an increasing impact on

the revenue per subscriber.

Telecom market revenue by sector

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Falling voice ARPUs in most countries

Wireless ARPU ranges from USD 54 per month in Japan to under USD 5 per month in the

Philippines, Indonesia and India, evidently demonstrating the lower ARPU realization in

emerging countries2. The blended wireless ARPU is roughly USD 18 globally, declining at

10 percent per year (on a local currency basis).

Global wireless ARPU comparison (2009)

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Asia to continue to lead growth in wireless services

The Asia Pacific region driven by growth in India and China will continue to be the key

growth market for global telecom over the next few years. Developed markets such as Japan

and Korea, are witnessing the benefits of significant technology investments and innovation.

Meanwhile, India and China, which constitute 28 percent10 of the global wireless subscriber

base today, are witnessing the benefits of significant growth in income levels due to sustained

economic growth. Penetration figures in both countries continue to remain significantly lower

than developed economy levels, auguring Ill for continued growth and development of the

telecom market in the region.

Mobile subscribers (share of the world)

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1.2 The Indian Telecommunication Industry

The Indian telecommunications market has continued to show consistent growth during the

last one year, with exciting developments such as rollout of newer circles by operators,

successful auction of 3G and BWA spectrum, growing push by telecom operators to rollout

network in semi-rural areas and increased focus on the value added services market. Telecom

continues to be one of the fastest growing sectors of the Indian economy, becoming a strong

contributor to India’s overall GDP and is expected to grow further.

Overall teledensity in India has risen to the levels of ~59.6 percent (as of August’10)

to 69.29 percent (as of February 2011) comprises 551.27 million urban subscribers

(teledensity of ~154.01 percent) and 274.98 million rural subscribers (teledensity of ~32.95

percent) With a large part of the population yet to obtain access to the telecommunication

market, there is immense potential for the sector to grow, especially in non-urban areas,

where wireline and internet services are yet to make significant in-roads. Wireline services

have shown relatively negative growth -.5.66 percent (Feb 2010 to Feb 2011). Even the

mobile services space which has seen exponential growth in urban areas, has not yet reached

the vast majority in rural areas with rural teledensity of approximately 40.31 percent (Feb

2010 to Feb 2011), indicating huge untapped potential for the sector. Broadband is yet to

reach a critical mass despite rapid growth; the numbers have risen from 6.98 million in

August 2009 to 10.08 million by August 2010, registering a growth of 55 percent on an

annual basis. With subscriber penetration under 2 percent, the sector has potential for

aggressive growth in the future.

Indian Telecom Industry classified in

• Total Circle - 22

• Operator - 20 (16+4)

• Service Area - 338

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Mobile services

The Indian mobility market can be characterized as one with a very large subscriber base4

(~671 million as of August 2010), high growth5 (addition of 16-18 million subscribers every

month in last six months), low ARPUs (~INR 122 per month in June, 2010) and significant

churn rates. In the prepaid segment, ARPU declined by 6.2 percent from INR 113 in March,

2010 to INR 106 in June, 2010. The Government of India opened up mobile services to

private participation in 1994-95 by inviting bids for providing services in the four

metropolitan cities and 18 non-metro circles. Services Ire introduced in 1995 with the high

tariffs resulting in poor demand. The National Telecom Policy 1999 moved the industry to a

revenue share model from the fixed license fee and the lower tariffs resulted in the addition of

~ 12 million subscribers during the 1999-03 period as compared

To less than a million subscribers added during the 1995-99 period. During this period the

government also set-up the Telecom Regulatory Authority of India (TRAI) in 1997 and

‘Telecom Dispute Settlement and Appellate Tribunal (TDSAT)’ in 2000.

Growth of wireless subscriber base (year end numbers)

Source: TRAI Annual Report and Quarterly Reports on Telecom Services Performance Indicators

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The Calling Party Pays regime was introduced in 2003- 04 which allowed free incoming calls

for the subscribers. This revolutionary change can be designated as one of the watershed

milestones in the growth of the Indian telecom sector. The 22 telecom circles in India have

been classified into 4 categories viz. Metros, Category A, B and C. With penetration rates in

metros touching more then 100 percent, the market in Metros is nearly saturated. However,

there is still immense potential in other circle categories, particularly B and C

Mobile subscriber base and mobile teledensity across telecom circles

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Source: ‘Monthly Telecom Scenario – August 2010’, DoT, October 2010

The current subscriber base of 707 million (August 2010) comprises 476 million urban

subscribers (teledensity of ~134 percent) and 230 million rural subscribers (teledensity of ~28

percent) & 791 million (February 2011) comprises 525.17 million urban subscribers

(teledensity of ~146.72 percent) and 266.21 million rural subscribers (teledensity of ~31.90

percent) million overall teledensity is 66.36percent. The market is highly competitive with

some of the telecom circles having more than 14 operators. Competitive intensity in the

market has contributed to reduction in tariffs and launch of innovative schemes like lifetime

prepaid and low cost handset bundling which further reduced the entry.

Wireline services

While wireless has seen consistent growth over the years, wireline over the last few years has

actually seen a decline in the subscriber base. The total number6 of fixed line connections in

India increased from 5.81 million in 1991-92 to 40.8 million in 2006-07. During 1999-2000

to 2001-02, approximately 5-6 million customers Ire added to fixed-line services each year.

However, with the drop in mobile tariffs and increase in coverage of mobile services, net

additions in fixed-line subscribers started slowing down from 2.5 million in 2002-03 going

down to 0.5 million in 2004-05. Due to mobile substitution and lower tariffs, the fixed line

subscriber base actually decreased by 3.5 million between 2006-07 and 2008-09. This decline

was aggravated by slow rollout of fixed line services by Telco’s due to the significantly

higher total cost of service provision for fixed line services compared to mobile wireless

services, in February 2011 only 34 Million wireline subscribers are reported.

It also comes in observation that rural subscriber are more interested in wireless in

compression of wireline... However, the potential for wireline services remains large due to

very low penetration in the wireline industry and the ability of wireline to deliver broadband

at lower operating costs than wireless broadband. New players in the telecom space had

hitherto concentrated on wireless space leading to low competition and promotion of wireline

services. Greater pan-India expansion by private players can significantly lead to growth of

wireline services. In addition, with combined offering of internet/ broadband and allied

services like IPTV, the sector can bounce back in the future. But, the aggressiveness of

mobile operators in rural areas due to easier and cheaper rollout and newer offerings on BWA

spectrum can further slow down the wireline penetration.

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Wireline subscriber base

Source: TRAI Annual Report and Quarterly Reports on Telecom Services Performance Indicator

Broadband and internet services

Internet subscriber base in India, though currently at a low level, has been experiencing

significant growth over the last 2-3 years. This growth is being driven by the growing

popularity of broadband, increasing user comfort with usage of internet applications,

continuous fall in PC prices and decreasing costs of internet/broadband access plans. This

growth has been accompanied by an associated increase in the number of internet users which

have attributed to the growth of public internet cafes and multiple members of a household

accessing internet. Access technologies play a crucial role in broadband penetration. Right of

Way (Row) issues and costs of the existing broadband technologies has been a constraint for

the growth of internet. While there a number of technologies being used by service providers

to provide broadband services, DSL continues to be the most preferred technology and

constitutes nearly 86.6 percent of total broadband subscribers7. Cable modem technology

follows with 6.9 percent connection. On an overall basis for accessing internet, DSL leads

with 51 percent while dialup stands second at 33.3 percent7. Wireless technologies have

carved a unique niche in terms of connectivity to internet with a share of nearly 7.6 percent

which is a significant shift in the last two years. Newer access technologies like BWA and 3G

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can completely transform the character of Internet/ broadband scenario in India. BWA will

overcome the key hindrance of Row in India, while 3G has the potential to make the mobile

phone, a ubiquitous device for accessing the internet.

Internet subscriber base

Source: TRAI Annual Report and Quarterly Reports on Telecom Services Performance Indicators

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New frontiers for growth

3G and BWA

The last 5 years have been transformational for Indian telecom industry and the next few

years are expected to bring about more stimulating and aggressive changes. One of the key

frontiers which would make the journey in coming years even more exciting is the launch of

3G and BWA technologies. The auction of 3G spectrum was concluded on May 19, 2010.

While commercial usage is started from September 2010 onwards, the auction laid the

groundwork for faster internet connectivity and data transfer on mobile phones, boosting

usage of data services in the cellular market. This was closely followed by auctioning of

BWA spectrum which also exceeded revenue expectations of the government. The highly

successful auctioning of 3G and BWA spectrums and entry of new telecom players in BWA

auction has ensured that telecom market will see more exciting times going forward. Total

revenues which the government earned from these two auctions stood at approximately, INR

1,063 billion the market is likely to witness a wide variety of value added services being

offered, which Ire not possible over the current 2G/2.5G network. The ARPU is expected to

get a boost given the increased revenue contribution from data and value added services.

Potential challenges that 3G players could face would span across the value chain covering

innovative Product development, Network deployment and management, Sales and

Marketing etc. In the first wave, operators would be able to provide rich data services to

HNI’s, working professionals, enterprise customers and youth. They would be specifically

targeting current users of 2.5G and/or owners of 3G enabled handsets. At the same time

operators would be actively looking at providing 3G services to other income groups, as this

will help spread the investment in technology/license over a wider subscriber base. The

Ministry of Communications had specified that BWA spectrum allocation would be

technology neutral. High speed broadband on BWA spectrum also has the potential to

provide connectivity for the growing small and medium enterprises (‘SME’) segment; and be

utilized for the return path bundled with the DTH platform.

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NEXT GENERATION NETWORKS

In the Next Generation Networks, multiple access networks can connect customers to a core

network based on IP technology. These access networks include fibber optics or coaxial cable

networks connected to fixed locations or customers connected through Wi-Fi as Ill as to 3G

networks connected to mobile users. As a result, in the future, it would be impossible to

identify whether the next generation network is a fixed or mobile network and the wireless

access broadband would be used both for fixed and mobile services. It would then be futile to

differentiate between fixed and mobile networks – both fixed and mobile users will access

services through a single core network.

Indian telecom networks are not as intensive as developed country’s telecom networks and

India's teledensity is low only in rural areas. 670,000 route kilometres (419,000 miles) of

optical fibbers has been laid in India by the major operators, even in remote areas and the

process continues. BSNL alone has laid optical fibber to 30,000 Telephone Exchanges out of

their 36 Exchanges. Keeping in mind the viability of providing services in rural areas, an

attractive solution appears to be one which offers multiple service facility at low costs. A

rural network based on the extensive optical fibber network, using Internet Protocol and

offering a variety of services and the availability of open platforms for service development,

viz. the Next Generation Network, appears to be an attractive proposition. Fiber network can

be easily converted to Next Generation network and then used for delivering multiple

services at cheap cost...

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1.3 Regulatory and Policy environment In India Regulatory and policy environment

Over the years, the Indian Telecommunication Policy and Regulatory framework has evolved

into an Ill developed framework that facilitates effective policy formation and execution. The

government has been making constant efforts to ensure that the regulatory framework is

beneficial for the consumers as Ill as the licensed operators. The policy and regulatory

framework for telecommunications in India consists of, among others, the following key

bodies

• The Department of Telecommunication (DoT)

• The Telecom Regulatory Authority of India (TRAI)

• The Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

• Wireless Planning Commission (WPC)

• Group on Telecom and IT (GoT – IT)

TRAI

Telecom Regulatory Authority of India was established as an independent body under the

TRAI Act of 1997. The act was later amended in 2000. The entry of private players into the

industry prompted the establishment of the act to effectively regulate the telecom players.

TRAI safeguards the interests of the consumers through transparency, ensuring conformity

with service quality benchmarks, enforcing measures to safeguard national security, fixing

tariffs for players, counselling the government on matters relating to telecommunication

development and tracking performance a d efforts of all players within the industry.

DoT

DoT is accountable for policy formulation, monitoring performance reviews, ensuring

international co-operation, overlooking research and development and granting licenses to

operators, allowing them to provide basic and value added services in various cities and

telecom circles as per the approved government policies. The Department also allocates

spectrum and manages radio communications in close coordination with the International

bodies. It is also responsible for enforcing wireless regulatory measures and monitoring the

wireless transmission of all users in the country

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As per TRAI total active

Business Line

0

20

40

60

80

100

120

140

160143.2

46.5

127.9

27.4

Regulatory evolution

Source: Press Search, KPMG Analysis

otal active Mobile Subscriber in November 2010

Business Line – Dated – 3 December 2010.

115.5

72.567.3

96.4

79

27.4

86.6

42.9

59.165

35.6

Subscriber Base

70% of Mobile Subscriber base is active

Reported Subscriber

Active Subscriber

November 2010

35.6

Reported

Active

Subscriber Base

70% of Mobile Subscriber base is active

Reported Subscriber – 687.7 Million

Active Subscriber – 482 Million

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Mobile Number Portability (MNP)

Number portability: TRAI announced the rules and regulations to be followed for the Mobile

Number Portability in their draft release on 23 September 2009. Mobile Number Portability

(MNP) allows users to retain their numbers, while shifting to a different service provider

provided they follow the guidelines set by TRAI. Users are expected to holding the mobile

number with a given provider for at least 90 days, before they decide to move to the other

provider. As per news reports, Government of India decided to implement MNP from

December 31, 2009 in Metros & category ‘A’ service areas and by March 20, 2010 in rest of

the country.

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Number Operator Total Sub Figures % Market Share

1 Airtel 15,89,98,869 20.09%

2 Reliance Comm. Ltd. (CDMA+ GSM) 13,21,76,914 16.70%

3 Vodafone 13,09,20,732 16.54%

4 BSNL (GSM + CDMA) 9,03,09,414 11.41%

5

Tata Teleservices Ltd. (CDMA

+GSM) 8,76,54,472

11.08%

6 Idea 8,68,00,809 10.97%

7 Aircel 5,35,00,469 6.76%

8 Uninor 2,15,77,497 2.73%

9 MTS 96,12,738 1.21%

10 Videocon 65,64,083 0.83%

11 MTNL 54,54,846 0.69%

12 Loop Telecom Private Ltd. 30,79,281 0.39%

13 S-Tel LTD (GSM) 26,92,462 0.34%

14 HFCL (CDMA) 13,86,618 0.18%

15 Etisalat 6,52,370 0.08%

Total 79,13,81,574

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BSNL (GSM +

CDMA)

11%

Tata Teleservices

Ltd. (CDMA +GSM)

11%

Idea

11%

Aircel

7%

Uninor

3%

Videocon

1%

Airtel

20%

Reliance Comm.

Ltd. (CDMA+ GSM)

Vodafone

17%

BSNL (GSM +

CDMA)

11%

Aircel

7%

MTS

1%

MTNL

1%Loop

Telecom

Private Ltd.

0%

S-Tel LTD

(GSM)

0%

HFCL (CDMA)

Etisalat

0%

Reliance Comm.

Ltd. (CDMA+ GSM)

17%

HFCL (CDMA)

0%

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Chapter – 2

Literature Review

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Date - 22 /09/2010

Source - Business Line

Survey Method - Interview

Sample - Mr Debases Chatterji, CEO of Netxcell Ltd.

Business Line’s editor Mr D.murli interviewed Mr Debases chatterji on the key challenges

faced by telecom operators.

He was of the opinion that severe competition amongst voice service providers was leading to

a few operators incurring huge losses. This might force consolidation in the industry in the

future. As teledensity was already approaching 100% in urban centres, service providers were

quickly moving to semi-urban and rural areas. In this segment, most customers prefer pre-

paid services with very low average revenue per unit (less that Rs 200 per month). The

average prepaid topup in rural areas is around 20 rupees per recharge.

Over the past one and a half years, India has been adding 10 to 14 million customers in a

month. Research has shown that 95% of them prefer pre-paid plans and are located in semi-

urban areas.

He was of the opinion that one area of growth could be subscribers pushing locally relevant

content to cell phones of subscribers. This could range from local weather updates to

discounts at a shopping mall at a particular date and time.

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Date - 20 /08/2010

Source - CNBC


Sample - Mr Sanjay Kapoor, CEO of Bharti Airtel

Business Line’s editor Mr Sanjay Pugliya interviewed Mr Sanjay Kapoor, the CEO of Bharti

Airtel on the topic. Finding from this interview is 480 minute/customer

Rural India is a big market

Subscription is approximately same

Dependency of mobile phone because no significant alternative

Profitability is a main concern

Special focus on revenue

http://www.youtube.com/watch?v=2ZCQOT2Lylc&feature=related

Date - 9-10 December 2010

Source - KPMG

Survey Method - Survey

Sample - Telecom Industry of India

Rural movement - Rural movement not seems as a solution for the revenue generation

because as per following statics, generated revenue cannot cope up with operation cost it is

difficult to achieve breakeven point itself. There is wide variation in population density.

Population density across villages India

Village Density No. of Villages

Between 1,000 - 2,000 129,000

Between 500 - 1,000 144,000

Between 0 - 500 219,000

Source: IMA India Report, 2006

http://www.trai.gov.in/Default.asp

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Date - 18 /09/2010 Source - CNBC


Sample - Mr Sanjay Kapoor, CEO of Bharti Airtel

CNBC interviewed Mr. Sanjay Kapoor, the CEO of Bharti Airtel on the topic “Dialing

Growth”. In that interview Mr. Kapoor told that subscriber growth is not only a parameter,

but the revenue from the activities is an important parameter for Bharti. He not agrees with

actual growth shown in numbers as per him actual growth is half of provided numbers”.

http://www.youtube.com/watch?v=WRvcjfoiM7g

Date - 07 /03/2011

Source - Economic Times

Survey Method - Results of subscriber complaints published by TRAI

Sample - Population of subscribers who used wireless services

India's largest mobile operator, Bharti Airtel is on top, also when it comes to subscriber

complaints related to billing, metering and tariff-related issues and activation of value-added

services without customer consent. In the last three years, TRAI received as many as 3,571

complaints from Bharti Airtel subscribers, 2,151 from Reliance customers and 1,896 from

Vodafone Essar's clientele. Tata Docomo and Idea Cellular customers seemed to be the least

dissatisfied, with 1,239 and 925 complaints, respectively, lodged against them

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Date - 06 /04/2011

Source - TRAI press release

Survey Method - Results of subscriber population survey provided by service provider

Sample - Population of subscribers who used wireless services

As per “Highlights of Telecom Subscription” Data as on 28th February 2011 by TELECOM

REGULATOR AUTHORITY OF INDIA New Delhi, 6th April 2011, TATA Teleservices is

the 5th largest mobile operator in India having 8,76,54,472 subscriber contributing 11.08%.


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Chapter – 3

Problem Definition and

Objectives of the Project

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Problem Definition and Objectives of Project

In this project “Operational Comparatives Study of Indian Telecom Service”

The Indian cellular subscriber base currently stands at 826.25 million. Due to this large

market, the Indian cellular service providers are amongst the most competitive in the world.

India can boast of the cheapest call rates to be found anywhere in the world.

At present there is very high competition in the telecom sector which has intensified with the

entry of new cellular players in the circles. Private operators hold 87.90% of the wireless

market share where as BSNL and MTNL, two major PSU operators hold only 12.10% market

share. Around 14 operators are functioning in every circle & implementation of Mobile

Number Portability has once again started the game of the “Survivable the fittest”.

Even though The Telecom Regulatory Authority of India & other Independent Consultants

provide guidelines and comparative analysis of the sector,

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Chapter – 4

Research Methodology

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Research Design

I intend to follow an exploratory approach towards meeting our goals. Since the telecom

sector is too vast to be covered within the scope of our project, I decided to opt away from

descriptive research and orient ourselves more towards exploratory research.

The information that I will primarily be dealing with are official TRAI figures, customer and

retailer responses to questionnaires. I will then analyze the available information with MS-

Excel.

The questionnaire is intended to cater to recipients and subscribers. There will be separate

for both the parties because questions intended for retailers will be more oriented towards

why they sell or refer certain products and hold others back. I intend to investigate cellular

companies provide to retailers and how retailers in turn market products of these cellular

companies.

To customers our questions will be directed at customer satisfaction with the service,

preferences and satisfaction. About what brands they identify with and the reasons for their

choices. The questionnaire will also attempt to gauge the level of attachments customers have

with their service provider.

Ingredients of Questionnaires

Questionnaires will be conducted in person with random people from locations across India

there will be no discrimination based on religion, caste, sex, and age or income level.

The questionnaire will be limited to 20 minutes per person. It will consist of 20 questions that

a respondent will have to answer. The questions asked will range from general to specific.

Example –

Question to customers –

1) Which brand do you prefer the most?

2) What brand are you using right now?

3) Are you satisfied with the service provided?

4) What are the reasons you might be dissatisfied? Service, network, rates.

Note - (Detail Question are given in appendix Page 64-67)

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Sampling size – I intend to interview 100 customers of from various parts of India focusing

primarily on Karnataka. This is so that I can cater to differing values and perceptions of

people from different regions.

Sampling plan – Multi-stage & connivance sampling – In this form of sampling is similar

to cluster sampling but involves selecting a sample within each chosen cluster. Clusters in

this case will be created on the basis of the States of Rajasthan, UP East, UP East, Karnataka,

Delhi and Kolkata Circle.

Note - (Responses can envisage in appendix Page 72)

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Chapter – 5

Findings & Interpretations

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5.1 Comparatives Study of Telecom Service Provider

109 respondents are interviewed for survey, to identify that what factor play a critical role in

the selection of Service Provider, factor are divided into 7 major category • Services

• Cost-effectiveness

• Network coverage

• Low Cost is a major factor that attracts me to a service provider

• Network Coverage of my service provider was a decisive factor that influenced my

purchase

• Advertisements played a major role in my decision to choose my service provider

• Value added services are a major factor that attracts me to a service provider

Interpretation

Network Coverage, Service & Cost Effectiveness play a critical role, when the subscriber

goes to choose the service provider.

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Bharti Airtel

Interpretation-

Service - Liner

Cost effectiveness - Poor

Network Coverage - Full fill the customer acceptance

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TATA Teleservices

Interpretation

Service - Liner

Cost effectiveness - High

Network Coverage - Below then customer acceptance

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Reliance Communication

Interpretation-

Service - Poor


Network Coverage - Poor as Ill as below then customer acceptance

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Vodafone

Interpretation-

Service - Liner

Cost effectiveness - Liner

Network Coverage - Liner & more than customer acceptance

Note- Vodafone has a perfect combination of all 3 critical parameter which is an ideal

situation

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Idea

Interpretation-

Service - Below then average


Network Coverage - Liner & more than customer acceptance

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BSNL & Others

Interpretation-

Service - Liner

Cost effectiveness - Liner

Network Coverage - Liner but matched with customer acceptance

Note - (Detail Results can envisage in appendix Page 68-71)

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What attracts you towards a service provider? [Network Coverage of my service

provider was a decisive factor that influenced my purchase]

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How would you rate your mobile service provider in terms of [Network

coverage]

ANOVA

How would you rate your mobile service provider in terms of [Network coverage]

Sum of Squares df Mean Square F Sig.

Between Groups 21.299 5 4.260 4.320 .001

Within Groups 100.580 102 .986

Total 121.880 107

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Chapter- 6

Conclusion

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As per survey it comes in observation that Network is a critical parameter which influences

the customer, analysis done for the Pre purchase & Post purchase experience of customer

with service provider.

A population of over a 1.5 billion individuals, India is a fast emerging economy on the world

scenario. One of the most significant growths in this decade has been observed in the cell

phone industry. An industry which initially had many players. Now is the time I could

experience the consolidation in the industry, but still left with quite a number of players.

Consumers have been the ultimate king all the way through, and to know the consumers’

insight is what no organization could miss.

Consumers can be the kings but it is the Network team who committed for the quality

service. So it is essential for any service provider to keep up to the pace of their team and

provide them what they require. In this growing mobile era it is very essential to keep your

team technically upgraded and make the most of what is available.

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Chapter- 7

Bibliography

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Bibliography

• Richard A. Gershon (2009). Telecommunication & Business Strategy. Published by

Routledge New York 10016. Richard A. Gershon is a Professor & co-founder of the

Telecommunication & Information Management Program at Western Michigan

University.

• Rafael Aguayo (1990).Dr. Deming "The American who taught the Japanese about

Quality."Published by "Fireside Rockefeller Center New York 10020. R.afale studied

with W.Edwards Deming for seven year, has worked in the financial sector for fifteen

year is a consultant in Quality & Management.

• Akanksha Singh,Archana & Ritu Singh. "3G: Still Hazy." Voice & Data, May 2011:

42-47.

• KPMG."Indian Telecom 2010.9-10 December 2010 New Delhi


• Objective Assessment of Quality of Services for (QoS) for Basic (Wire line), Cellular

(Wireless) and Broadband Service Providers Karnataka Circle. October-November-

December - 2009. Telecom Regulatory Authority of India, By: eTech Group@IMRB

A specialist unit of IMRB International.2010 <http://www.trai.gov.in/searchdoc.asp>

• Highlights of Telecom Subscription” Data as on 28th February 2011 by Telecom

Regulatory Authority of India, New Delhi, 6th April 2011.

http://www.trai.gov.in/searchdoc.asp

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Chapter- 8

Appendix

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Questionnaire

Objective: To gauge public opinion on services provided by various telecom operators

Name

City: State:

1) - Which mobile service provider are you using at the moment? Please tick the appropriate

box

Service Provider Tick

Airtel

BSNL

Vodafone

Idea

Tata

Reliance

Others

2) - How long have you been using your service provider? Please tick the appropriate

column.

Duration Tick

< 6 months

6 to 12 months

12 to 24 months

24 to 48 months

>48 months

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3)- How would you rate your service provider in terms of :

Parameter Excellent Good Average Bad Poor

Availability

Offers

Services

Cost-effectiveness

Network Coverage

4) - What services do you primarily avail of from your service provider? Please tick the

appropriate box based on the degrees of usage.

Services High Moderate Low Nil

Voice services

Internet services

Mobile TV/Value added services

Messaging services

5) - What attracts you towards a service provider?

Parameter

Strongl

y agree

Agre

e

Neutra

l

Disagre

e

Strongly

disagree

Low Cost is a major factor that

attracts me to a service provider.

Value added services are a major

factor that attracts me to a service

provider

Advertisements played a major role

in my decision to choose my service

provider

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Network Coverage of my service

provider was a decisive factor that

influenced my purchase

My service provider has numerous

retail outlets that ensure availability

and serviceability

Good feedback from friends

influenced my decision to choose my

provider

6)-How would you rate the service provider in terms of its

advertisement campaign compared to its competitors?

Service Provider Excellent Good Equal Bad Poor

Airtel

BSNL

Vodafone

Idea

Tata

Reliance

7) - If Mobile number portability is implemented, I would choose another service

provider?

Yes No

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7.1) - If yes, then which among these would be your first preference? Please tick the

appropriate box

Service Provider Tick

Airtel

BSNL

Vodafone

Idea

Tata

Reliance

Others

8) - How would you rate your reasons for not being satisfied with the service provider?

Parameter Strongly agree Agree Neutral Disagree Strongly disagree

The costs associated with my

service provider are higher

than those of other similar

providers

I am dissatisfied with the

services provided to me by my

service provider

The network coverage of my

service provider in my area is

substandard compared to

competitors

My service provider does not

have enough retail outlets in

my neighborhood

I have received negative

feedback about my service

provider from my

acquaintances

Note – This Questionnaire is initially used to identify the “Declining Market Significance of

Bharti Airtel Ltd.” in 7/12/2010

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Post hoc tests are not performed for What attracts you towards a service provider?

[Advertisements played a major role in my decision to choose my service provider]

because at least one group has fewer than two cases.

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Post hoc tests are not performed for What attracts you towards a service provider?

[Network Coverage of my service provider was a decisive factor that influenced my

purchase] because at least one group has fewer than two cases.

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Post hoc tests are not performed for How would you rate your mobile service provider in

terms of [Network coverage] because at least one group has fewer than two cases.

CUIM

Post hoc tests are not performed for What attracts you towards a service provider? [Value

added services are a major factor that attracts me to a service provider] because at least

one group has fewer than two cases.

Indian telecom service providers

Business

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