Pay Per Second

8/8/2019 Pay Per Second

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CHAPTER 1: INTRODUCTION OF THE STUDY

Pay per second is one of the revolutions in the telecom sector. This revolution is

started by joint move, of Japanese telecom major DOCOMO along with TATA,

and has struck the market share like a thunderbolt. For the first time, all the major

players including airtel, reliance, bsnl, idea etc. Were made not only to notice but

to run for cover as DOCOMO within two weeks made astonishing nmber of

subscriber cutting into the market share of some major players. With that started

the price war. Every company brought down its tariffs and started pay per

second plans. And watching this war up high from a comfortable chair sits

laughing The Indian Customer. He now does not need to keep a check on hisclock to stop himself from jumping to the next minute and at the same time keep

trying to make full use of the 60 seconds he was paying for, as now he has to pay

just for seconds and not the minutes. And as they say money saved is money

earned, so he will surely be earning few bucks more, so why shouldnt he be

happy?

Clearly, its a win-win situation for the customer, but what about the companies?

Will they be able to keep making the same profits and boast proudly about their

big revenues? Well what seems as of now is, the revenues are surely going to go

down as the pay per minute model is going to take a serious beating from the

pay per second plan. The average earning per minute will fall and thus there will

be a decline in the revenues. And to add to the misery, because of this serious

cutthroat competition the STD and Roaming rates have also fallen into the trap of

pay per second- another blow to the revenues. In a highly saturated Telecom

Market this situation doesnt seem so good.

So, in short term, it seems that companies will lose their revenues and this new

model of billing will get better of them. But as they say there is a bright side to

everything, with a period of time the sheer volume of subscribers will increase.

They will feel more free and inclined to make calls than before and the revenues

will soar again. As Shakespeare once said The Show Must Go On, well, so itwill. The equal competitors are coming up with their new tariffs, plans, special

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packs and their varying services to prove themselves to be much competitive and

trying to anchor them firmly in this mobile sector. Still many new operators are yet

to launch their services in days to come but existing ones dont seem to leave a

bit of it. They convinced the people by their VAS plans and tariffs too. Currently

the Tata Docomo came up with its services with an all new tariff scheme of pay

per second which has brought out a massive revolution in the market. DOTs

mandatory urged every operator to go with pay per second scheme. on 30th Oct

the leading mobile service provider Bharti Airtel launched their much awaited

Pay Per Second tariff all throughout India. And now days almost all the service

provider introduces pay per second scheme. Service provider like- aircel, airtel,

bsnl, tata docomo, idea, loop mobile, mtnl, mts, relisance, tata indicom, virgin

mobile, Vodafone etc. are providing pay per scheme.

Choose a Operator

CHAPTER 2: DATA ANALYSIS AND INTERPRETATION

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http://www.cellbharat.com/operator/home/vodafone/http://www.cellbharat.com/operator/home/virgin/http://www.cellbharat.com/operator/home/tataindicom/http://www.cellbharat.com/operator/home/reliance/http://www.cellbharat.com/operator/home/mts/http://www.cellbharat.com/operator/home/mtnl/http://www.cellbharat.com/operator/home/loop/http://www.cellbharat.com/operator/home/idea/http://www.cellbharat.com/operator/home/docomo/http://www.cellbharat.com/operator/home/bsnl/http://www.cellbharat.com/operator/home/airtel/http://www.cellbharat.com/operator/home/aircel/


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1) Are you using pay per second scheme?

Yes No

YES NO

59 21

59

21

0

10

20

30

40

50

60

70

Generally, the purpose of using pay per second is cost reducing. So, we can say

that the new trend towards the pay per second is in improving stage. There are

many kind of different schemes are available in the market. The high margin of

people is using pay per second in the present. In our survey, the 75% of the

people (total sample) using pay per second. Now, 25% of the people are using

different type of schemes.

2) Which company pay per second service are you using?

TATA DOCOMO AIRTEL RELIANCE

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VODAFONE IDEA BSNL ___________

TATA DOCOMO AIRTEL RELIANCE VODAFONE IDEA BSNL TOTAL11 12 7 12 11 6 59

11

12

7

12

11

6

0

2

4

6

8

10

12

14

There are many companies providing pay per second scheme. The most favorite

like TATA DOCOMO in the all comparative brands. Generally, the TATA

DOCOMO, AIRTEL, VODAFONE, IDEA are the most selected brand in network.

So, there are all people have different choice towards the brand selection. In the

present the competition is growing very fast. In our sample pay per second using

of TATA DOCOMO, AIRTEL, VODAFONE, IDEA are same. BSNL & RELIANCE

not too much popular among the people.

3) From when are you using this service?

Less than 2 Month

Between 2 months to 4 Months

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Between 4 to 6 Month More than 6 Month

LESS THAN 2

MONTH2 TO 4 MONTH 4 TO 6 MONTH

MORE THAN 6

MONTH

14 21 13 11

14

21

1311

0

5

10

15

20

25

Pay per second is a new scheme came in the last few months. We can say that

the most of the people are using the pay per second scheme in last few months.

TATA DOCOMO, VODAFONE, AIRTEL etc came into existence in providing a

scheme. The category of dividing people into using pay per second in period of

time is helpful to know the awareness of the people. The last 2-4 months, we can

say that the number of the people arise due to advertising or marketing of

different companies.

4) Is there any change in numbers of calls?

Increase Decrease No change

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INCREASE DECREASE NO CHANGE

49 4 6

49

46

0

10

20

30

40

50

60

The question of reducing cost becomes formality itself. The change in number of

calls increase due to using pay per second. Generally the unnecessary second

we can remove it. To save 1 paisa and use it into other calls, it becomes a

common purpose of the every people. We can say that in our sample, more than

80% of the people are in the favor of the increase of number of calls.

5) By using this scheme, is there any cost reduction in your usage?

Yes No

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47

12

0

5

1015

20

25

30

35

40

45

50

The 80% of the people in our sample believes that the cost reduction is possible.

To pay the rate for 1 minute is now become a costly. The 20% of the people are

not agree, because of they using other schemes like 50 paisa per minute, 25

paisa per minute, roaming charge, SMS, CDMA free talk time etc are the reason

for not using a pay per second scheme. There are a many chance of cost

reduction. The most of the people are in the favor of the reduction in cost or

rates.

6) Is there any reduction in the usage of other scheme like massages? Yes No

Yes No47 12

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Yes No39 20

39

20

0

5

10

15

20

25

30

35

40

45

There are different schemes available in the market. The person can get the

advantage of using more than one scheme. The scheme of 75paisa per minute is

become a costly. The pay per second provides 60 paisa per minute. If person use

only 20 second to talk then the rate charged is only 20 paisa. So, it is very less in

compare to previous charge. The SMS scheme is now become a common. 1

paisa per SMS is now in recent period. The 60% of the people believes that in the

reduction of using other scheme.

7) Mark your experience with regard to following parameters.

PERTICULAR Very Good Natural Poor Very TOTAL

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Good Poor

Confirmed Response 21 28 9 -- 1 59

Minimum Balance

Required20 23 14 1 1 59

Time saving Due to

less Talking16 18 15 5 5 59

0

5

10

15

20

25

30

Confirmed Respons e 21 28 9 0 1Minimum Balance Required 20 23 14 1 1

16 18 15 5 5

V ery Good Good Natura l Poor V ery Poor

Confirmed response suggests that by using pay per second scheme consumer

are getting confirmed response from other side. In this we can say those

consumers are satisfied with this scheme in case of confirmed response.

Minimum balance required for using this scheme is 10 paisa while for other

scheme it is more then that. Consumers response for with regard to this is like 20

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very good, 23 good, 14 neutral and only 1 in poor and in very poor. It shows

satisfaction of consumer by this scheme.

Time saving due to less talking, in this case there is mix reply of consumer 16 are

saying that they have saved time by using this scheme. While in good category it

is 18, in neutral it is 15, and in poor and very poor it is 5-5. This shows mix reply

of consumer.

8. If no, why you are not using this scheme. Rank the parameter.

Using Post paid currently using other scheme

Long Talk Costlier than current scheme

Using

Post paid

Currently using other

scheme Long Talk

Costlier than current

scheme5 5 6 5

4 8 4 5

5 3 8 5

7 5 3 6

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5 5

6

5

4

8

4

55

3

8

5

7

5

3

6

0

1

2

3

4

5

6

7

8

9

Usin

Curr

othe

Lon

Cos

curr

Why you are not using pay per second? The answer is very simple. The using of

other scheme is very improving in cost reduction. The post paid schemes provide

various types of rate. The bill discount is one of them. The long talk time in CDMA

is one of the reasons. The night calling, free talk time and many more other

scheme available in the market. It might be costlier than current schemes. So, we

can say that the most of the people are also using the different scheme without

the pay per second.

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CHAPTER 3: FINDING

In our marketing research purpose we can say that the 75% of the people using pay per

second schemes. The number of people increasing for use of pay per second. Generally,

the TATA DOCOMO, AIRTEL, VODAFONE, IDEA are the most selected brand in

network. Pay per second is a new scheme came in the last few months. We can say that

the most of the people are using the pay per second scheme in last few months. The

80% of the people in our sample believes that the cost reduction is possible. So,

we can say that the result of findings is reducing cost. No pay for whole minute. Now it is

in a growing stage. Most of the us are also want to use pay per second.

CHAPTER 4: CONCLUSION

For the first time, all the major players including AIRTEL, RELIANCE, BSNL, IDEA etc.

were made not only to take notice but to run for cover as DOCOMO within two weeks

made astonishing number of subscribers cutting in to the market share of some major

players. Clearly, its a win-win situation for the customer, but what about the companies?

Will they be able to keep making the same profits and boast proudly about their big

revenues? Well what seems as of now is, the revenues are surely going to go down asthe pay per minute model is going to take a serious beating from the pay per second

plan So, in short term, it seems that companies will lose their revenues and this new

model of billing will get better of them. But as they say there is a bright side to

everything, with a period of time the sheer volume of subscribers will increase.

In this, we can say that the consumer is winner. Company reducing their cost and the

benefit goes to customers.

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BIBLIOGRAPHY

marketing research by naresh malhotra, 2nd edition, pearson publication.

www.cellbharat.com

www.trai.com

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http://www.cellbharat.com/http://www.trai.com/http://www.cellbharat.com/http://www.trai.com/


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ANNEXURE

A PROPOSAL ON STUDY OF EFFECTIVENESS OF PAY

PER SECOND SCHEME

INTRODUCTION

The past months has seen some hectic activity in the Indian Telecom Sector. Its

amazing how a little competition always keeps everyone on their feet. Each business

enterprise looking at the market as if through the eyes of a hawk for the next big

business opportunity .Each company trying to seduce the prospective customer with its

products. India, the future to be worlds largest mobile telephony market is now going

through a massive upheaval. Market leaders no longer have it easy and with theintroduction of theper second billing model, the competition has only gotten more cut

throat.

Plan after plan requiring you to remember how much youd have to pay if you spoke for a

minute. How much to a phone using a rivals network, how much for STD, how much for

ISD, etc.

All that has changed with the entry ofTata Docomo in the Indian market. Docomo got

the ball rolling by offering the per second model charging 1 paisa per second.

The competition and I mean everybody; Airtel, Vodafone, Reliance, BSNL, Idea

Cellular, Airtel and the smaller operators too have now begun offering the pay/second

model.

The activity in the TRAI (Telecom Regulatory Authority of India) offices with

regard to this matter has taken place at lightning speed.

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The recommendation has been passed approving the model and immediately the

companies have launched the scheme to attract customers. Tata Docomo has

barely had the time to blink at the success of their initial few weeks in the Indian

markets!

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In the short term this is a model which is going to hurt telecom operators with

their revenue. As much as a 15-20% loss in revenue is expected as a result of

the pay per second model

Are pay-per second plans for everyone?

Not really. Most operators have introduced per-second tariffs for only pre-paid

subscribers. And, you may have to forgo the freebies that come with other plans.

There is an obvious benefit in per-second billing, but the question is how much?

We already had plans, such as the 50-paise-per-minute ones, that cost less than

1 paisa per second. These work out cheaper for those who make longer calls.

per-second billing has worked wonders for new operators like Tata DoCoMo, who

can use the price difference to attract new subscribers.

So, if you are a post-paid subscriber, will it make sense to switch to per-second

plans? The answer lies in your usage pattern. While your monthly bill might come

down by 15 per cent, you will miss the special promotional services offered by

other tariff plans.

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Hypothesis

H0:-pay per second scheme is not effective

H1:-pay per second scheme is effective

Research design

Exploratory research design

Sampling plan

Target population: - All mobile user in vidyanagar

Sampling unit: - User of pay per second scheme

Sample size:- 80

Sample method: - convenience non-probability sampling method

Scope of the study

It will help us in gaining a practical knowledge It will help us in taking decision while purchasing this scheme

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Data collection

Data will be collected through structured non disguised questionnaire

Data preparation and analysis

Data will be analyzed in the form of tables and graphs

Time scheduling, budget and cost

Time scheduling:-

Data collection 5 days

Data entry 2 days

Preparing table and graphs 1 days

Data analysis 1 days

Report preparation 4 days

Total 13 days

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Cost:-

Stationary and photocopying Rs.150

Traveling expense Rs. 100

Miscellaneous expense Rs. 100

Total Rs. 350

QUESTIONNAIRE

Respected Respondent

We are students of MBA at G.H Patel Post Graduate Institute MBA Programme.

As part of our curriculum we are conducting a market survey for our project

titled, To study on EFFECTIVENESS OF PAY PER SECOND SCHEME. All

information from the survey will be used only for academic purpose. We want

your valuable time and response for this study. We request you to kindly fill in the

questionnaire and help us with our objective.

Name:

Occupation: Sex:

Age Group: Below 20 Year 30 to 50 Year

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20 to 30 Year More than 50 Year

1) Are you using pay per second scheme? Yes No

if No, go to question no. 7

2) Which company pay per second service are you using?

TATA DOCOMO Airtel Reliance

Vodafone Idea Any other ___________

3) From when are you using this service?

Less than 2 Month Between 2 month to 4 Month

Between 4 to 6 Month More than 6 Month

4) Is there any change in numbers of calls?

Increase Decrease No change

5) By using this scheme, is there any cost reduction in your usage?

Yes No

If No, Give your suggestion _____________________________________

___________________________________________________________

6) Is there any reduction in the usage of other scheme like massages?

Yes No

7) Mark your experience with regard to following parameters.

Particular

Very Good Good Average Poor Very Poor

Confirmed

Response

Minimum Balance

Required

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Time saving Due

to less Talking

Others,

____________

8) If no, why you are not using this scheme. Rank the parameter.

Using Post paid Currently using other scheme

Long Talk Costlier than current scheme

Any Other Reason: __________________________

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Pay Per Second

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