To study User & Attitude among Airtel

Users for the 3G Services

Submitted to Submitted by

Prof. Prasanta Parida Rahul Ranjan (11201034)

Shivshankar Biradar (11201014)

Kaushik Shah (11201024)

Alka Soy (11201004)

Sourav Datta (11201044)

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DECLARATION

We student of 1st Year MBA 2nd semester of KIIT school of Rural

management hereby declare that the project report title “To study User &

Attitude among Airtel Users for the 3G Services ” Is a record of critical

and independent work carried out by us as a team work under supervision

and guidance of Prof. Prasanta Parida.

The feasibility suggestion has been duly incorporated in the consultation with

the supervisor.

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ACKNOWLEDGEMENT

I find in a great privilege to extend my thanks to Prof. Prasanta Parida, Faculty

of KSRM, for giving us an opportunity to work on one of the leading sectors

and of course for providing his valuable guidance and support. It has been a real

pleasure working on this project as this has lent us an opportunity to gather a

plethora of knowledge.

Our sincere gratitude goes to my institute for providing me a platform to have

practical knowledge. Special thanks go to all our friends who are most

responsible for helping us complete the writing of the report.

Date:

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Abstract

According to the recent press release of Groupe Speciale Mobile

Association (GSMA), India is about to become 2nd largest mobile broadband

market globally in next four years. This data implies that the mobile broadband

service is expected to drive the next phase of growth in the wireless segment with

enhanced focus on providing data services and Internet. 3G stand for the third

generation of wireless communication technologies, which support broadband

voice, data and multi-media communications over wireless networks. While urban

wireless subscribers have continued to grow by leaps and bounds, the rural

subscribers have also increased which has helped India to be one of the fastest

growing telecom markets in the recent years. This study attempts to understand the

perceptions, behavior and attitude of an Airtel-3G customer. This includes general

attitudes toward the service.

This study has used primary data which were collected using questionnaire through

internet medium.  The questionnaire for customers is prepared in such a way that

they were able to express their opinions freely and frankly. For this purpose 90

customers were selected using simple random sampling method. The collected data

are analyzed through SPSS. The normal progression of any concern in today’s

marketing scenario is highly customer centric.  To bring out credibility and

objectivity and to extend the coverage and leadership, the policy makers hope to

concentrate very keenly in the problems faced by the customers.

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Table of contents

ContentsCHAPTER 1...................................................................................................................................................6

Introduction.................................................................................................................................................6

1.2 Technical issues in the evolution to third-generation networks:.......................................................6

1.3 Standardization issues:......................................................................................................................7

1.4 The migration path from 2G to 3G:...................................................................................................9

1.5 3G Services and Applications:...........................................................................................................9

1.6 Bharti Airtel:....................................................................................................................................11

1.7 Airtel 3G in India:.............................................................................................................................11

1.8 Users Attitude:.................................................................................................................................13

CHAPTER 2.................................................................................................................................................14

Review of Literature..................................................................................................................................14

CHAPTER 3.................................................................................................................................................16

Research Methodology:............................................................................................................................16

3.1 Objectives:.......................................................................................................................................17

3.2 RESEARCH DESIGN:..........................................................................................................................17

3.3 Online survey basic outsets.............................................................................................................17

3.3.1 Instrument................................................................................................................................17

3.3.2 Content.....................................................................................................................................18

3.3.3 Challenges.................................................................................................................................18

3.4 Data preparation.............................................................................................................................18

3.5 Sample size:.....................................................................................................................................18

CHAPTER 4.................................................................................................................................................19

Findings and analysis.................................................................................................................................19

4.1 Kind of 3G services...........................................................................................................................19

4.2 Signal rating of Airtel.......................................................................................................................19

4.3 Signal rate evaluation by age and profession groups.......................................................................20

4.4 Duration of usages...........................................................................................................................21

4.5 Maximum recharge per month........................................................................................................22

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4.6 Usage of value added services.........................................................................................................23

4.7 Services provided by Airtel 3G.........................................................................................................23

4.7.1 Video calling or conferencing...................................................................................................23

4.7.2 Downloading and uploading speed...........................................................................................24

4.7.3 Online gaming speed................................................................................................................24

4.8 After sales services..........................................................................................................................25

4.9 Overall satisfaction level..................................................................................................................26

CHAPTER 5.................................................................................................................................................27

Conclusion.................................................................................................................................................27

Chart 1 Kind of 3G services........................................................................................................................20Chart 2 Signal rating of Airtel....................................................................................................................21Chart 3 Duration of usage..........................................................................................................................23Chart 4 Maximum recharge per month.....................................................................................................24Chart 5 Usage of value added services......................................................................................................24Chart 6 video calling/ conferencing...........................................................................................................25Chart 7 Downloading and uploading speed...............................................................................................26Chart 8 Online gaming speed....................................................................................................................26Chart 9 Customer care services.................................................................................................................27Chart 10 response from customer care employees..................................................................................27Chart 11 overall rate of Airtel service provider.........................................................................................28Chart 12 do you feel Airtel is better than other network..........................................................................28

Table 1 Comparing services/applications provision under 2G, 2.5G and 3G 11

Graphs 1 signal rate evaluation by age groups..........................................................................................22Graph: 4.3.2 Graphs 2 signal rate evaluation by profession groups..........................................................22

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CHAPTER 1

IntroductionThe Indian telecommunications industry is the fastest growing telecommunications

industry in the world, with 723.28 Million telephone (land line and mobile)

Subscribers and 687.71 Million mobile phone connections as of Sep 30 th 2010.  A

large population, low telephony penetration levels, and a rise in consumers’

income and spending owing to strong economic growth have helped make India

the fastest-growing telecom market in the world.

        3G and BWA services are expected to drive the next phase of growth in the

wireless segment with enhanced focus on providing data services and Internet. 

Development of applications useful to people will be the key to success.  The

Indian market is highly price sensitive; therefore, it is imperative that relevant

applications be made available to consumers at affordable cost.  It is hoped that

availability of cheaper handsets together with useful content will drive the next

phase of growth.

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1.2 Technical issues in the evolution to third-generation networks: The impact of technological change on mobile telecommunications is often

described in terms of generations. Thus, first generation mobile technology has

referred to the analogue cellular systems that characterized the 1980s and early

1990s, while second generation refers to today’s digital cellular systems, such as

the widely-used Global System for Mobile Communications (GSM).

So-called Third Generation (3G) systems or IMT-2000 include high-speed data,

mobile Internet access and entertainment such as games, music and video

programs using image, video and sound to mobile users. These 3G systems will

provide support for:

• High data rates at a minimum of 144 Kbit/s for all radio environments and 2

Mbit/s in low-mobility and indoor environments.

• Symmetrical and asymmetrical data transmission.

• Circuit-switched and packet-switched services, such as Internet Protocol (IP)

traffic and real-time video.

• Improved voice quality.

• Greater capacity and improved spectrum efficiency.

• Several simultaneous services to end-users and terminals, for multimedia

services.

• Seamless incorporation of 2G cellular systems; and

• Global roaming between different 3G operational environments; and economies

of scale and an open international standard that promises to meet the needs of the

mass market.

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1.3 Standardization issues:One of the inherent advantages of 3G networks is the provision of seamless global

roaming, enabling users to move across borders while using the same number and

handset. The promise of 3G networks also lies in the seamless delivery of services,

over a number of media (satellite, fixed, etc...).

In the mid-1980s, the International Telecommunication Union (ITU) developed the

concept of IMT-2000 (where IMT stands for International Mobile

Telecommunications) and in 2000 unanimous approval was given to the technical

specifications for 3G systems under this brand name (i.e. IMT-2000). This

approval, which resulted from the collaboration of many entities, both inside and

outside the ITU (ITU-R and ITU-T, and 3GPP, 3GPP2, UWCC, etc.), meant that

for the first time there was a promise of full interoperability and interworking of

mobile systems on the basis of a single standard, without the fragmentation that

had characterized the mobile market. However, there are strong proponents of

different approaches to 3G technology - CDMA2000 (US, Korea), and UMTS

(Europe, Japan) who were not able to agree on a single standard. This resulted in a

variety of approaches to 3G technology, with IMT-2000 consisting of a family of

standards (or flavors), implying the need for multiple mode and multiple band

handsets capable of handling various optional mode and frequency bands. More

specifically, the IMT-2000 standard accommodates five possible radio interfaces

(or flavors) based on three different access technologies (FDMA, TDMA and

CDMA). Two of these technologies fall under the wideband-CDMA category (W-

CDMA and CDMA2000, which is a Telecommunications Industry Association

(TIA) standard for third-generation technology, one of them falls under the TDMA

category (Universal Wireless Communications 136), and the last one falls under

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the TD-CDMA category (Time-Division Duplex), and the last one under FD-

TDMA (DECT+).

Difficulties experienced in reaching a decision on a single standard are due in part

to the variety of stakeholders and players involved in the standardization process,

each with its own set of interests for promoting the adoption of a particular

standard. Some of these organizations are not meant to be exhaustive, but rather

illustrative of the kinds of organizations implicated in the process.

1.4 The migration path from 2G to 3G: Just as there has been a continued migration of voice from fixed line to cellular, it

is expected that data traffic too will migrate from fixed to mobile. Present 2G

networks are the result of the migration from analogue to digital networks. The

conversion from 1G analogue networks like AMPS and TACS to 2G digital

networks like GSM, TDMA and CDMA, has allowed carriers to increase network

capacity, provide value-added services like caller identification, short messaging,

call-waiting, and increased functionality.

The evolution of networks from 2G to 2.5G and then to 3G (or straight from 2G to

3G) will enable users to send and receive data over a wireless platform. 2.5G

solutions, such as GPRS (General Packet Radio Service or EDGE (Enhanced Data

rates for GSM Evolution) offer mobile data services at rates between 56 Kbit/s and

144 Kbit/s, the speed of conventional modems and ISDN lines, respectively. With

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3G will come full broadband applications at transmission rates that will eventually

reach 2Mbit/s.

1.5 3G Services and Applications: The below given box places 3G services within the context and timelines of the

evolution of services/applications available with 2G, then 2.5G and 3G technology.

Table 1 Comparing services/applications provision under 2G, 2.5G and 3G

Comparing services/applications provision under 2G, 2.5G and 3G

Period Major technology introduction New internal/external applications

Up to 2000 2G Telephone

E-mail

SMS

Digital text delivery

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2001 to 2002 2.5G Mobile banking

Voice mail

Web

Mobile audio player

Mobile radio

Karaoke

Location-based services

Mobile coupons

2003 and

beyond

3G Mobile video conferencing

Video phone/mail

Remote education

Mobile TV/ video player

Advanced car navigation

Digital catalog shopping

Digital audio/video delivery

Source-ITU

1.6 Bharti Airtel:Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited

liability under the Companies Act, for promoting telecommunications services.

Bharti Tele-Ventures received certificate for commencement of business on

January 18, 1996. The Company was initially formed as a wholly-owned

subsidiary of Bharti Telecom Limited.

Bharti Airtel Limited is a leading integrated telecommunications company with

operations in 20 countries across Asia and Africa. Head quartered in New Delhi,

India, the company ranks amongst the top 5 mobile service providers globally in

terms of subscribers. In India, the company's product offerings include 2G, 3G and

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4G services, fixed line, high speed broadband through DSL, IPTV, DTH,

enterprise services including national & international long distance services to

carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Bharti

Airtel had over 246 million customers across its operations at the end of February

2012.

1.7 Airtel 3G in India:On May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay

the Indian government    122.95 billion (US$2.45 billion) for spectrum in 13

circles, the most amount spent by an operator in this auction. Airtel won 3G

licenses in 13 telecom circles of India: Delhi, Mumbai, Andhra

Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (east), Rajasthan, West Bengal,

Himachal Pradesh, Bihar, Assam, North East, and Jammu & Kashmir. Airtel also

operates 3G services in Maharashtra, Goa, Kanpur and Kolkata through an

agreement with Vodafone and in Gujarat through an agreement with Idea. This

gives Airtel a 3G presence in 15 out of 22 circles in India.

On September 20, 2010, Bharti Airtel said that it has given contracts to Ericsson

India, Nokia Siemens Networks (NSN) and Huawei Technologies to set up

infrastructure for providing 3G services in the country. These vendors will plan,

design, deploy and maintain 3G–HSPA (third generation, high speed packet

access) networks in 13 telecom circles where the company has won 3G licenses.

While Bharti Airtel has awarded network contracts for seven 3G circles to Ericsson

India, NSN would manage networks in three circles. Chinese telecom equipment

vendor Huawei Technologies has been introduced as the third partner for three

circles.

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On January 24, 2011, Airtel launched 3G services in Bangalore, Karnataka—its

largest circle by revenue. With this launch, Airtel became the third private operator

(fifth overall) to launch its 3G services in the country following Reliance

Communications and Tata Docomo. On January 27, 2011, Airtel launched 3G in

Chennai and Coimbatore.

On July 27, 2011 Airtel launched 3G in three major cities in Kerala (Trivandrum,

Cochin and Calicut).

Airtel plans to cover 1,500 cities across 13 circles by the end of March 2012. The

company, which has 3G licenses for 13 circles, is also in talks with other service

providers to roll out the services in the remaining 10 circles as part of its roaming

offerings.

Airtel had about 3 million 3G subscribers as of May 2011.

1.8 Users Attitude:A user and attitude survey is a comprehensive survey usually carried out to know

the brand usage, purchasing behaviour, awareness and attitude of the customer. It

is conducted and analyzes the market, establish a database on past or present

behaviour and identify changes in usage behaviour.

User and attitude survey can provide information on perceptions behaviour and

attitude of a customer towards a particular product. For example it can reveal

perception on:

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Features of the service

Specific components of the service

Usefulness of the service

Also focus on customer needs, how those needs are met, customer interest in

appreciation for the service etc.

This survey provides valuable information on customer perceptions of their 3G

usage experience. This includes general attitudes toward the service, and their own

perception. The results from this survey can also help you identify elements which

best support customer needs.

CHAPTER 2

Review of Literature

3G - Third Generation mobile telephone networks are the latest stage in the

development of wireless communications technology. Significant features of 3G

systems are that they support much higher data transmission rates and offer

increased capacity, which makes them suitable for high-speed data applications as

well as for the traditional voice calls. In fact, 3G systems are designed to process

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data, and since voice signals are converted to digital data, these results in speech

being dealt with in much the same way as any other form of data. Third Generation

systems use packet-switching technology, which is more efficient and faster than

the traditional circuit-switched systems, but they do require a somewhat different

infrastructure to the 2G systems.

3G stand for the third generation of wireless communication technologies, which

support broadband voice, data and multi-media communications over wireless

networks. Speed: 144kb/sec-2mb/sec. 3G Combines a mobile phone, laptop PC

and TV Features include,

Phone calls/fax

Global roaming

Send/receive large email messages

High-speed Web Navigation/maps

Videoconferencing

TV streaming

Electronic agenda meeting reminder

A user and attitude survey is a comprehensive survey usually carried out to know

the brand usage, purchasing behavior, awareness and attitude of the customer. It is

conducted and analyzes the market, establish a database on past or present

behavior and identify changes in usage behavior.

User and attitude survey can provide information on perceptions behavior and

attitude of a customer towards a particular product. For example it can reveal

perception on:

Features of the service

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Specific components of the service

Usefulness of the service

Also focus on customer needs, how those needs are met, customer interest in

appreciation for the service etc.

This survey provides valuable information on customer perceptions of their 3G

usage experience. This includes general attitudes toward the service, and their own

perception. The results from this survey can also help you identify elements which

best support customer needs.

CHAPTER 3

Research Methodology:Methodology is a way to systematically solve the research problem. It may

be understand as a science of studying how research is done scientifically.

Research Methodology is a step by step study of a problem. Physical activities

involved in the study are:

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Developing the questionnaire regarding the customer satisfaction of the

product

Optimum respondents as a 90 sample size are chosen for the activity to

resemble the entire population.

Get the questionnaire filled by the customers in the place through internet

(online).

Analysis of data on computer with special market research statistical

package called SPSS.

In this research questionnaire is framed in such a way management wants to

know how the customers are taking things that they had done to them and to find

out the expectation of the customers thus it will impact in policy making of the

firm in the current fiscal year.

The questionnaire designed had closed question to find the respondents

actual feeling as well as their opinion rating about the satisfaction regarding the

product.

The methodology followed for conducting the study includes the

specification of research design, sample design, questionnaire design, data

collection and statistical tools used for analyzing the collected data.

3.1 Objectives:Our objectives behind doing this project was to know,

To know whether the services is good in their (respondents) area.

To find out if they are satisfied and aware of the services and offers

provided.

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To recommend measures for improving the product.

3.2 RESEARCH DESIGN:The research design is the conceptual structure within which research is

conducted. It constitutes the blueprint for the collection, measurement and analysis

of data.

3.3 Online survey basic outsets

3.3.1 Instrument

Self – administered questionnaire

No assisting interviewer

Filling in and finishing the questionnaire based on the impression of the

questionnaire

3.3.2 Content

Needs a clear structure

Layout

Questions and additional text

3.3.3 Challenges

Use of multi media elements

Accessibility

Tech (bandwidth, screen resolution, flash)

3.4 Data preparation Results data is readily available in the format desired

Open answers are readily readable

Tables and presentation can be produced directly

3.5 Sample size:The research was conducted with 90 respondents.

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CHAPTER 4

Findings and analysis

4.1 Kind of 3G services91% of the respondents avail 3G services in prepaid Airtel connections. So, it can be inferred that 3G services are more preferred in prepaid connections.

Chart 1 Kind of 3G services

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91%

9%

Kind of 3G serviceprepaid (3G) postpaid (3G)

4.2 Signal rating of AirtelAirtel provides excellent signal strength to customers. It is evident from the fact that 47% of the respondents rated signal strength of Airtel as excellent and also another 47% of the respondent rated the above as good. So on an average Airtel signal strength is excellent in every customer point of view.

Chart 2 Signal rating of Airtel

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47%

47%

4%

2%

Signal rating of Airtelexcellent good average bad

4.3 Signal rate evaluation by age and profession groupsMainly the respondent the age of 18-25 years, comprising students, mostly use Airtel 3G services and

have rated the signal strength as excellent. So it is clear that the Airtel 3G services have raised a wave

among the teen agers.

Graphs 1 signal rate evaluation by age groups

excellent good average bad05

101520253035

1

30 27

1 2

10 921

61

Signal rate evaluation by age groups

age of the respondent below 18 years age of the respondent 18-25 yearsage of the respondent 26-35 years age of the respondent 36-45 years

Rate of airtel signal

No.

of r

espo

nden

ts

Graph: 4.3.2 Graphs 2 signal rate evaluation by profession groups

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student govt employee pvt employee business others0

5

10

15

20

25

30

35 33

3 24

23

46

8

11 1 22

Signal rate evaluation by profession groups

excellent good average bad

Coun

t

4.4 Duration of usagesWith the advent of Airtel 3G services on January 24, 2011, most of the people started to use 3G services

in Airtel. 54% of the respondents are using Airtel 3G services for more than one year.

Chart 3 Duration of usage

12%

12%

22%53%

Duration of usage<6 years >6 years1 year more than 1 year

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4.5 Maximum recharge per monthAs the majority of the respondent groups are students between the age group of 18-25 years, they recharge their prepaid connections with an average of Rs. 200 per month. 29% of the respondents supported to above fact.

Chart 4 Maximum recharge per month

29%

28%

27%

12%

4%

Maximum recharge per month

Rs 10-200Rs 200-400Rs 400-600Rs 600-1000above Rs 1000

4.6 Usage of value added servicesThere is little awareness among the respondents related to value added services provided by Airtel. 63% of the respondents do not use value added services. This may be also due to high cost of VAS provided by Airtel.

Chart 5 Usage of value added services

yes37%

no63%

Usage of value added services

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4.7 Services provided by Airtel 3G

4.7.1 Video calling or conferencingThere is an average satisfaction level among the consumers related to video calling and conferencing facilities provided by Airtel 3G. This fact is supported by 37% of the respondents rating the above facility as average.

Chart 6 video calling/ conferencing

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20%

31%37%

6%

7%

Video calling/conferencing

excellent good average bad never used

4.7.2 Downloading and uploading speedAirtel 3G provides good downloading and uploading speed. 50% of the respondents support the above fact.

Chart 7 Downloading and uploading speed

20%

50%

27%

3%

Downloading and uploading speed

excellent good average bad

4.7.3 Online gaming speedAn average rating is provides by 37% of the respondents related to online gaming speed.

Chart 8 Online gaming speed

18%

29%37%

10%

1%6%

Online gaming speed

excellent good average bad very bad never used

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4.8 After sales services84% of the respondents are satisfied from customer care services provided by Airtel. 78% of the respondent have received good response from the customer care employee, thus Airtel provides excellent after sales services.

Chart 9 Customer care services

84%

7%9%

Customer care services

satisfied not satisfied never used

Chart 10 response from customer care employees

78%

13%

9%

Response from customer care employees

good response bad response never used

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4.9 Overall satisfaction level53% of the respondents are fairly satisfied on using Airtel.

Chart 11 overall rate of Airtel service provider

32%

53%

14%

Airtel service provider

excellent good average

4.10 Compare with other network

Also 88 respondents out of total 90 respondents feel that Airtel is better than any other network.

Chart 12 do you feel Airtel is better than other network

2

…

noyes

do you feel airtel is better than other network

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CHAPTER 5

ConclusionDuring our study we observed following behavior of our users:

• It was found that 91% of the respondents were prepaid users. It is because prepaid

connections help them to check on their spending on recharges.

• Among all the respondents, students constitute the highest percentage of Airtel 3G users.

The services like gaming, downloads at a higher speed are the reasons behind the

popularity of the service among the students.

• Most of the respondents were using the service for more than a year; it depicts the

satisfaction of the customers on the service.

• Recharge amount consumed by most of the customers ranged between Rs. 200-400. It

implies that the 3G service is expensive especially the value added services. The number

of respondents who do not use the value added services establishes the above fact.

• It was found that the respondents were happy about the after sales services.

Overall the level of satisfaction is good among the Airtel 3G users. Services such as: video

calling/conferencing, downloading and uploading speed, online gaming experience etc. are

the most liked features of the Airtel 3G services as perceived by the customers.

The study revealed that there is unawareness among the customers regarding value added

services. Expensiveness of the service is also one of the problems which make it difficult for

the Airtel to penetrate into the market in the value added service category.

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