PROJECT REPORT

AT AIRCEL LIMITED, NEW DELHI

A Project Report Submitted in partial fulfillment of the requirements forThe award of the degree of

MASTER OF BUSINESS ADMINISTRATION(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

BY

VIKASH KUMAR GUPTAReg No. A8754655

Under the guidance of

Mr. Vishwesh Kumar (ASM)Mr. Ambrish Panday (TSM)

NEW DELHI INSTITUTE OF MANAGEMENT STUDIES NEW DELHI

JUNE 2010

CERTIFICATE

This is to certify that the Project Report at

AIRCEL LIMITED, NEW DELHI

Submitted in partial fulfillment of the requirements for the award of

the degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

Is a record of bonafide Training carried out by

VIKASH KUMAR GUPTA

Under my supervision and guidance and that no part of this report has been

submitted for the award of any other degree / diploma/ fellowship or similar

titles or prizes.

FACULTY GUIDE

Shailendra

Signature:-

Qualification:- MCA

STUDENTS DECLEARATION

Hereby declare that the Project Report conducted at

AIRCEL LIMITED, NEW DELHI

Under the guidance of

Mr. Vishwesh Kumar (ASM)Mr. Ambrish Panday (TSM)

Submitted in partial fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION(Industry Integrated)

To

MADURAI KAMRAJ UNIVERSITY, MADURAI

Is my original work and the same has not been submitted for theAward of any other Degree/diploma/fellowship or other similar titles

or prizes.

Place: New Delhi Name: Vikash kr. Gupta

Date: 07th July, 2010 Reg. No: A8754655

ACKNOWLEDGEMT

The successful culmination of any project is due to the multi faced help directly or

indirectly rendered by various people during the execution of the project.

I express my foremost gratitude to AIRCEL Ltd, Delhi branch, and Collage of

management, School of business, for providing opportunity to gather information for

my project.

I wish to express my sincere and grateful thanks to the people who helped and

extended their support in this endeavor. I take the opportunity to express sincere

thanks to Mr. Vishwesh kumar (ASM) Aircel Ltd for his scholarly guidance

through the course of the project.

I would also like to thank Mr. Ambrish Panday (TSM) for their support from time

to time and for providing the necessary resources for the timely completion of the

project.

Finally, I am highly obliged to Mr. R.K.Pushkarna, Director (NDIMS), Delhi, who

gave me opportunity to do on job internship in a pioneer organization like Aircel Ltd,

Delhi.

PREFACE

Master of Business Administration is a course, which combines both theory and its

applications as its contents of study in the field of management. As part and parcel of

this course, every aspirant has to undergo an ‘in – company training’ in an organization.

The purpose of this training is to expose the student of management sciences with real

life situations existing in the organization and to provide an insight into the various

functions who can visualize things what they have been taught in classrooms. Actually,

it is the life force of management. It is in practical training that the effectiveness of

management itself is realized.

I was fortunate enough to do my training in AIRCEL LTD.

As a complementary to training, every trainee has to prepare and submit a report on the

working of the organization. This report is in continuation of that tradition. It is an

attempt to present an account of practical knowledge and observations gathered during

the training.

Vikash Kumar Gupta

DECLARATION

I hereby declare that the project report on “AIRCEL LTD” is written and submitted by

me to NDIMS, New Delhi towards the fulfillment for the study of MBA. This project is

based on my knowledge and database gained from the company. The report written is

original work of me. The contents provided are true to the best of my knowledge and

belief.

I further declare that, this project report is not been copied and submitted to any other

university for any other degree, or requirement course.

TABLE OF CONTENTS

1. INTRODUCTION

About telecom sector in India.

Basic structure of Indian telecom.

2. COMPANY PROFILE

AIRCEL in Delhi & NCR

Value added service ( VAS )

3. ABOUT THE PROJECT

Targets and Tasks Assigned

4. RESEACH METHODOLOGY

PROBLEM DEFINATION

RESEARCH DESIGN

Type of research design

Method of collection data

Scaling technique

Sampling technique

Field work

5. METHODOLOGY DATA ANALYSIS

6. FINDINGS

7. RECOMMENDATIONS & SUGGESTIONS

8. ANNEXURES

9. BIBLIOGRAPHY

INTRODUCTION

TELECOMMUNICATION

The word telecommunication was adapted from the French word telecommunication. It is a compound of the Greek prefix tale- meaning 'far off', and the Latin communicate, meaning 'to share'. Telecommunication is the transmission of signals over a distance for the purpose of communication. In modern times, this process almost always involves the sending of electromagnetic waves by electronic transmitters but in earlier years it may have involved the use of smoke signals, drums or semaphore. Today, telecommunication is widespread and devices that assist the process, such as the television, radio and telephone, are common in many parts of the world. There is also a vast array of networks that connect these devices, including computer networks, public telephone networks, radio networks and television networks. Computer communication across the Internet, such as e-mail and instant messaging, is just one of many examples of telecommunication.

The basic elements of a telecommunication system are:

a transmitter that takes information and converts it to a signal for transmission a transmission medium over which the signal is transmitted a receiver that receives and converts the signal back into usable information

Often telecommunication systems are two-way and devices act as both a transmitter and receiver or transceiver. For example, a mobile phone is a transceiver. Telecommunication over a phone line is called point-to-point communication because it is between one transmitter and one receiver, telecommunication through radio broadcasts is called broadcast communication because it is between one powerful transmitter and numerous receivers.

A collection of transmitters, receivers or transceivers that communicate with each other is known as a network. Digital networks may consist of one or more routers that route data to the correct user. An analogue network may consist of one or more switches that establish a connection between two or more users. For both types of network, a repeater may be necessary to amplify or recreate the signal when it is being transmitted over long distances. This is to combat attenuation that can render the signal indistinguishable from noise.

The shaping of a signal to convey information is known as modulation. Modulation is a key concept in telecommunications and is frequently used to impose the information of one signal on another. Modulation is used to represent a digital message as an analogue waveform. This is known as keying and several keying techniques exist — these include phase-shift keying, frequency-shift keying, amplitude-shift keying and minimum-shift keying. Bluetooth, for example, uses phase-shift keying for exchanges between devices.

HISTORY OF GSM

The Group Special Mobile (GSM ) was created in 1982 by European Conference of postal and Telecommunications Administrations (CEPT) with the objective of developing a standard for a mobile telephone system that could be used across Europe. In 1989, GSM responsibility was transferred to the European Telecommunications Standards Institute (ETSI).The phase I of the GSM specifications were published in 1990. The first GSM network was launched in 1991 by Radiolinja in Finland. By the end of 1993, over a million subscribers were using GSM phone networks The growth of cellular telephone systems started in the early 1980s, particularly in being operated by 70 carriers across 48 countries.

The Global System for Mobile communications (GSM: originally from Group Special Mobile) is the most popular standard for mobile phones in the world. GSM service is used by over 2 billion people across more than 212 countries and territories. The ubiquity of the GSM standard makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world.

From the point of view of the consumers, the key advantage of GSM systems has been higher digital voice quality and low cost alternatives to making calls such as the Short Message Service (SMS).

The advantage for network operators has been the ability to deploy equipment from different vendors because the open standard allows easy inter-operability. Like other cellular standards GSM allows network operators to offer roaming services which mean subscribers can use their phones all over the world.

GSM is a cellular network, which means that mobile phones connect to it by searching for cells in the immediate vicinity. GSM networks operate in four different frequency ranges. Most GSM networks operate in the 900 MHz or 1800 MHz bands. Some countries in the Americas (including the United States and Canada) use the 850 MHz and 1900 MHz bands because the 900 and 1800 MHz frequency bands were already allocated.

The GSM logo is used to identify compatible handsets and equipment.

There are four different cell sizes in a GSM network macro Micro Pico Umbrella cells.

The coverage area of each cell varies according to the implementation environment. Macro cells can be regarded as cells where the base station antenna is installed on a mast or a building above average roof top level. Micro cells are cells whose antenna height is under average roof top level; they are typically used in urban areas. Pico cells are small cells whose diameter is a few dozen meters; they are mainly used indoors. Umbrella cells are used to cover shadowed regions of smaller cells and fill in gaps in coverage between those cells.

The network behind the GSM system seen by the customer is large and complicated in order to provide all of the services which are required. It is divided into a number of sections and these are each covered in separate articles.

The Base Station Subsystem (the base stations and their controllers). The Network and Switching Subsystem (the part of the network most similar to

a fixed network). This is sometimes also just called the core network. The GPRS Core Network (the optional part which allows packet based Internet

connections).

All of the elements in the system combine to produce many GSM services such as

voice calls and SMS ]

Subscriber identity module(SIM)

One of the key features of GSM is the Subscriber Identity Module (SIM), commonly known as a SIM card. The SIM is a detachable smart card containing the user's subscription information and phonebook. This allows the user to retain his or her information after switching handsets. Alternatively, the user can also change operators while retaining the handset simply by changing the SIM. Some operators will block this by allowing the phone to use only a single SIM, or only a SIM issued by them; this practice is known as SIM locking, and is illegal in some countries.

In the United States, Canada, Europe and Australia, many operators lock the mobiles they sell. This is done because the price of the mobile phone is typically subsidised with revenue from subscriptions and operators want to try to avoid subsidising competitor's mobiles. A subscriber can usually contact the provider to remove the lock for a fee, utilize private services to remove the lock, or make use of ample software and websites available on the Internet to unlock the handset themselves

Some providers will unlock the phone for free if the customer has held an account for a certain period. Third party unlocking services exist that are often quicker and lower cost than that of the operator. In most countries removing the lock is legal. In countries like India, Pakistan, Indonesia, Belgium, etc., all phones are sold unlocked. However, in Belgium, it is unlawful for operators there to offer any form of subsidy on the phone's price. This was also the case in Finland until April 1, 2006, when selling subsidized combinations of handsets and accounts became legal though operators have to unlock phone free of charge after a certain period (at most 24 months).

CHANGES WITH THE CHANGING TECHNOLOGY

Technological changes in telecommunications and computers have radically changed the business scenario. In turn, the new demands of business have spurred many telecom-based technological innovations. In order to exploit these innovations for competing in global markets, the business community the world over has been putting pressure on governments to revise the policy, regulation, and structure of the telecom sector. SeveralCountries across the world have responded by restructuring the state-controlled telecom service provider, increasing private participation, and deregulating service provision. The emergent organizations have attempted to be more responsive to the business needs and have evolved mechanisms to remain competitive even under tremendous pressures.

Over the past several years, developing countries have also recognized the important role a responsive, business-oriented, and technologically advanced telecom sector plays in the growth of the economy. Many developing countries now see the constraints of estate monopoly in telecom as standing in the way of a response to the twin challenges of spurring internal growth and competing in an increasingly global economy.

Past experience of reform across many countries suggests that the fundamental issue that must be addressed in telecom reform is effective separation of the basic functions of policy making, operational management, and regulation (ITU Report 1989). The

Second level of consideration is access to capital and human resources. The third level of concern is the introduction of competition for efficiency. Competitions perhaps more important than right ownership, if ever there was anything like it, in bringing about efficiency.

The Indian telecom sector was wholly under government ownership until 1984, and was characterized by underinvestment, outdated equipment, and growth well below the potential of the market. In the mid-1980s, telecom was included by the government as a part of the so-called .Technology Missions a set of dedicated, welfare-oriented, and well focused programmes then implemented at national level.

The DoT and the Precursor to Reform

In one of the earliest steps towards reforms and boosting indigenization efforts, the government set up the Centre for Development of Telematics (C-DOT) in 1984 with the objective of initiating and managing research in the switching and transmission segments. Subsequently, the government separated the Department of Post and Telegraph in 1985 by setting up the Department of Post and the Department of Telecommunications.In 1986 two new public sector corporations. The Mahanagar Telephone Nigam Limited (MTNL) and the Videsh Sanchar NigamLimited (VSNL).were set up under the Department of Telecommunications (DoT).

The MTNL, which was carved out of the Dot, took over the operation, maintenance, and development of telecom services in Bombay and New Delhi. The VSNL was set up to plan, operate, develop, and accelerate international telecom services in India. The government created the corporate organizations in orderto allows decision making autonomy and flexibility and facilitates public borrowings that would not have been possible under a government framework. However, policy formulation, regulation, and several key decision areas remained with the DoT.

A new organization, the Telecom Commission, was created in 1989 with a wide range of executive, administrative, and financial powers to formulate and regulate policy and prepare the budget for the DoT. The Telecom Commission had four full-time members’ managing technology, production, services, and finance and four part-time members representing the Planning Commission, Department of Finance, Department of Industry, and Department of Electronics. The creation of the MTNL, its subsequent operations, and the relationship of the personnel employed in the MTNL to their counterparts in the DoT raised questions about the organizational structure most suited for this sector. Therefore, in 1991, upon government initiative, the high-powered Athreya Committee submitted a report on the appropriate organizational structures for this sector.

The report recommended:

Placing both policy and regulatory mechanisms under the Telecom Commission.

Breaking up of the DoT into zonal corporations under the government.

Setting up of a corporation, initially in the public sector, to handle the long-distance network.

Allowing value-added services (VASs) to be provided by the private sector.

Indicating general liberalization in production of equipment giving autonomy to R&D and training institutions.

Subsequently, other studies for reforms had been commissioned, but in the absence of public debate, and employee and union concerns regarding the consequences of implementation.

The government did not formally adopted any report.. Since 1997, there were several statements in the media by key decision makers and the Communications Minister calling for corporatization of the DoT. However, there was very little public information or debate regarding the sequence of decisions leading to corporatization or the form of corporate structure.

Since 1995, there was increasing pressure from international organizations such as the WTO to review the monopoly status of theVSNL and the Dot’s monopoly in international long-distance communication respectively. The government had undertaken to

Review the monopoly status of the VSNL in 2004 and the possibility of opening of long distance in 1999.

The VSNL continued to have a monopoly over international telecom and broadcast transmission. It had planned to enter the long-distance market but the DoT hampered its plans. In 1999, the government created the Department of Telecom Services (DTS), who’s Secretary was appointed from the Indian Telecom Services (ITS) cadre, and the DoT from the erstwhile the DoT, who’s Secretary was appointed from the Indian Administrative Services (IAS). This was done ostensibly to separate the service provision component (DTS) from that of policy making (DoT). In reality this was to accommodate the conflict caused by the government’s decision to appoint a Secretary to the department from the IAS, as DoT employees wanted the Secretary to be from the ITS. When the DTS Secretary retired, the government appointed an IAS officer in his place, which again led to agitation and further bifurcation of the DTS into the Department of Telecom Operations (DTO) and DTS. The DTS was to be headed by an IAS officer responsible for the MTNL, VSNL, Telecommunications Corporation of India Limited (TCIL), Indian Telephone Industries Ltd. (ITI), and Hindustan Teleprinters Limited (HTL) as well as for formulating the strategy for corporatization. The DTO was responsible for managing the telecom network.

The government’s view has been that a person from outside the ITS cadre would be better able to oversee the corporatization of

the DoT since in the past senior management of the erstwhile DoT, mostly from the ITS, had resisted any kind of change

. Although an outsider Secretary was ostensibly to facilitate corporatization, it is

not clear how, without the requisite mandate from the employees and especially

the senior managers, he/she would be able to lead such a major task. This is not to say that the ITS cadre was better equipped to handle this task. What was missing was an overall strategy and an indication of the direction of change to inform the administrative changes. The government seemed to view corporatization as an administrative decision rather than a process.

The Athreya Committee report as well as subsequent reports on restructuring may be viewed as the initiation of a process of

examining organizational options. The reports, however, did not accord due attention to the need for autonomy in financial and

Operational decision making. Management incentives that would have allowed these organizations to increase profitability and raise capital from markets had been only very sketchily outlined Thus access to capital would have been a problem.

Besides the limitations, the suggested changes were superficial since most .restructured. Organizations showed too much of a

Control and rule orientation and continued to work in much the same manner as before.

Inability of top management and political executives to address the need to make the DoT more competitive could be cited as a failure. Given the large base of employees who had been entrenched in a typical bureaucratic mode of functioning providing

Customer orientation and a commercial approach were, and continue to be, the most difficult tasks. The DoT had no specific training policy in this regard. Though there were several training centers, these were not equipped to provide management training. The restructuring was far more concerned with form than content.

Areas like identifying the mechanisms for acquiring new core Capabilities, developing appropriate incentives, and nurturing a climate in

which change could take place were lacking.

Telecommunications Regulatory Authority of India (TRAI)

The Telecommunications Regulatory Authority of India or TRAI (established in

1997) is the independent regulator established by the Government of India to regulate

the telecommunications business in India. Notwithstanding anything contained in the

Indian Telegraph Act, 1885, the functions of the Authority shall be to-

(a) Make recommendations, on a request from the licensor, on the following matters,

namely:

(i) need and timing for introduction of new service provider;

(ii) terms and conditions of license to a service provider;

(iii) revocation of license for non-compliance of terms and conditions of license:

(iv) Measures to facilitate competition and promote efficiency in the operation of

telecommunication services so as to facilitate growth in such services.

(v) Technological improvements in the services provided by the service providers.

(vi) Type of equipment to be used by the service providers after inspection of

equipment used in the network.

(vii) measures for the development of telecommunication technology and any other

matter relatable to telecommunication industry in general;

(b) Discharge the following functions, namely:-

(i) ensure compliance of terms and conditions of license;

(ii) notwithstanding anything contained in the terms and conditions of the license

granted before the commencement of the Telecom Regulatory Authority

(Amendment) Ordinance,2000, fix the terms and conditions of inter-connectivity

between the service providers;

(iii) Ensure technical compatibility and effective inter-connection between different

service providers.

(iv) regulate arrangement amongst service providers of sharing their revenue

derived from providing telecommunication services;

(v) lay down the standards of quality of service to be provided by the service

providers and ensure the quality of service and conduct the periodical survey of

such service provided by the service providers so as to protect interest of the

consumers of telecommunication services;

(vi) lay down and ensure the time period for providing local and long distance

circuits of telecommunication between different service providers;

(vii) maintain register of interconnect agreements and of all such other matters as

may be provided in the regulations;

(viii) keep register maintained under clause (viii) open for inspection to any

member of public on payment of such fee and compliance of such other

requirement as may be provided in the regulations;

(ix) ensure effective compliance of universal service obligations:

(c) Levy fees and other charges at such rates and in respect of such services as may be

determined by regulations.

(d) Perform such other functions including such administrative and financial functions

as may be entrusted to it by the Central Government or as may be necessary to carry out

the provisions of this act.

Provided that the recommendations of the Authority specified in the clause (a) of this

sub-section shall not be binding upon the Central Government:

Provided further that the Central Government shall seek the recommendations of the

Authority in respect of matters specified in sub-clauses (i) and (ii) of clause (a) of this

sub-section in respect of new license to be issued to a service provider and the

Authority shall forward its recommendations within a period of sixty days from the date

on which that Government sought the recommendations:

Provided also that the Authority may request the Central Government to furnish such

information or documents as may be necessary for the purpose of making

recommendations under sub-clauses (i) and (ii) of clause (a) of this sub-section and that

Government shall supply such information within a period of seven days from receipt

of such request:

Provided also that the Central Government may issue a license to a service provider if

no recommendations are received from the Authority within the period of specified in

the second provision or within such period as may be mutually agreed upon between

the Central Government and the Authority.

Provided also that if the Central Government has considered that recommendation of

the Authority comes to a prima facie conclusion that such recommendation cannot be

accepted or needs modifications, it shall, refer the recommendations back to the

Authority for its reconsideration.

Milestones in Telecom Reforms

1984 Manufacturing of subscriber terminal equipment opened to private sector. 1985 Telecom was constituted into a separate department with a separate board. 1986 MTNL and VSNL created as corporations. 1988 Government introduces in-dialing scheme. PABX services only within a

building, or in adjoining buildings. 1989 Telecom Commission formed. 1991 Telecom equipment manufacturing opened to private sector. Major

international players like Alcatel, AT&T, Ericsson, Fujitsu, and Siemens entered equipment manufacturing market. 1992 VAS sector opened for private competition. 1993 Private networks allowed in industrial areas. 1994 Licenses for radio paging (27 cities) issued. May 1994 New Telecom Policy announced. September 1994 Broad guidelines for private operator entry into basic services

announced. November 1994 Licenses for cellular mobiles for four metros issued. December 1994 Tenders floated for bids in cellular mobile services in 19

circles, excluding the four metros, on a duopoly basis. January 1995 Tenders floated for second operator in basic services on a circle

basis. July 1995 Cellular tender bid opened. August 1995 Basic service tender bid opened; the bids caused lot of

controversy. A majority of bids were considered low. December 1995 LOIs issued to some operators for cellular mobile operations in

circles. January 1996 Rebidding takes place for basic services in thirteen circles. Poor

response. The Telecom Regulatory Authority of India (TRAI) formed by ordinance. October 1996 LOIs being issued for basic services. March 1997 The TRAI Act passed in Parliament. June 1998 Several VASs available through private operators. The first private

basic service becomes operational. March 1999 Announcement of National Telecom Policy. January 2000 Amendment to the TRAI Act. August 2000 Announcement of Domestic Long Distance Competition Policy. October 2000 Planned Corporatization of DoT.

BASIC STRUCTURE OF INDIAN TELECOM

Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory Authority of India

Telecom Dispute Settlement Appellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 & 1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz

Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory Authority of India

Telecom Dispute Settlement Appellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 & 1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz

Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory Authority of India

Telecom Dispute Settlement Appellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 & 1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz

EVOLUTION OF THE INDIAN TELECOM MARKET

1. Penetration and growth

The Indian cell phone market essentially started in 1992 with the sale of licenses,

which enabled the private sector to participate in the industry (COAI, 2006). In 1994,

cellular service licenses were granted for the major metropolitan areas. This then

expanded to 15 circles in the following year. Services were rolled out in 1995 – with

Kolkata becoming the first city to get a cellular network in August 1995. However, in

December 2000 – 5 years after launch of cellular licenses – penetration was still quite

low. In fact, there were only about 3.2 million subscribers, primarily in the major cities

and large towns.

The major driver for change was the Telecom Regulatory Authority of India

(TRAI).TRAI was instituted in 1997, and soon started building policies and regulations

to push prices downward and spur competition. By December 2004, there were about

93mn phones in the country, of which 48mn subscribers were cellular (TRAI, Dec.

2005). The number of cellular phone users increased to about 76mn in December 2005

and about 89mn phones in March 2006 (Financial Express, Apr 2006)

This trend indicates a CAGR of over 30%. Jorma Ollila, Chairman and CEO of Nokia,

recently commented that “India is amongst the top 5 telecom markets in the world”

(Light reading 2006) when he visited the country to reiterate his firm’s commitment to

the market. Indeed, no other country in the world has added 4-5mn mobile phones per

month. Exhibit 1 shows the growth of the postpaid and prepaid market in India,

including prediction for 2010.

Player

The Indian wireless market has both CDMA and GSM network operators. CDMA

operators entered the picture and grew rapidly – Reliance, which owns about 70% of

the CDMA market currently with ~ 20.44 mn subscriptions, grew at over 114% year-on

year in 2002-03 – one of the most explosive phone launches ever ( TRAI Jun 2003,

Financial Express, Apr 2006). The overall CDMA subscriber base, though, is still

about 22.2% of the market – with Tata Teleservices taking up most of the remaining

CDMA share.

The GSM players account for the remaining ~78% - with a market that is less

dominated by one player. Bharti, state-owned BSNL, and Hutch control the largest

parts of this market and have been adding subscribers at an impressive pace. As of

April 2006, Bharti was the largest player by far, with 30.37 mn subscribers. BSNL had

a subscriber base of 20.44mn, followed closely by Hutch with 22% of the GSM market

and an overall share of 15.02%.

The Telecom Regulatory Authority of India overseas the evolution of this market.

Since its establishment in 1997, this agency has made many key judgments – including

statements on tariffs, quality of service, next generation networks, etc. TRAI also

releases quarterly reports on the state of the telecom industry – with special emphasis

on tariffs, interoperability between networks, and usage (TRAI).

Since Indian regulation makes it difficult for network operators to also sell phones (due

to revenue share agreements), there is a completely parallel market for users to buy

phones. In the GSM space, users go to handset providers to buy phones and then to

network operators to get network services. Most global handset manufacturers are

present in India – with Nokia leading the pack by far. In 2005, more than 31mn

handsets were sold. Of this, Nokia captured about 60% share – over 18mn phones in

one year. Motorola, which has a smaller share, is seeing growth with the introduction

of more advanced phones including its Razr platform. Samsung, LG and Sony Ericcson

all have reasonable market share as well – with LG catering almost exclusively to the

CDMA space through a tie-up with Reliance.

THE INDIAN MARKET – BASIC DEMAND TRENDS

Demand for cellular services is interesting for a variety of reasons. Before catering to

this market, service providers must consider unmet needs, price sensitivity, diversity in

consumer profiles, and the skew in urban-rural markets.

1. Unmet needs

Current Indian teledensity is 11.43 (i.e. only 11.43 phones both cellular and

fixed line exist per 100 people) While that points to a staggering ~ 125mn

phones already in the market, it also points to a large unmet demand.

Specifically, peer countries have much higher teledensity. China has a mobile

teledensity of 28.3 while in Malaysia, that number is 77. If India is to attain

China’s teledensity in 5 years – up from its current penetration of ~ 7%, this

implies an almost 4x increase in the number of phones. This would lead to

demand for about 210mn additional phones in that time.

2. Young, growing, consuming market

More than 95% of India’s population is under the age of 65.70% of the

country’s citizens are below the age of 36, and half of those are under 18.

(Bharadwaj etal, 2005; Wikipedia; Census Maps; Answers.com). Further, the

standard of living has been increasing: only 26% of the population is below the

poverty line now, compared to over 50% in the mid-70s. (Sinha, Jayant, 2005)

Thus, the young, mobile segment of the population is quite large and more

connected than any previous generation. In addition, it earns more and is more

willing to spend on convenience products than previous generations. In fact, in

some instances, consumer products like cell phones now have are a symbol of

status. Young consumers are willing to buy new phones and are constantly

looking for good deals and the opportunity to “trade up” to better products.

3. Value sensitivity

The Indian consumer is also very price sensitive. Product managers have found

that consumers in India will not buy products unless there is a clear value

proposition – at the lowest possible price. For instance, Nokia successfully

introduced a customized version of their 1100 phone with features uniquely

tailored to India – dust-resistant body and a built-in flashlight – making it very

popular among truck drivers (Bharadwaj et al, 2006). The phone itself retails

for about $40. Indians also expect a high quality of services at the lowest

possible tariff rate. Thus, tariffs in India for voice services are among the lowest

in the world. While average American carrier charges about 30-40 cents per

minute, the corresponding rate for an Indian carrier is only about 2 cents per

minute. (Cingular, T- Mobile, TRAI Dec 2006).

4) Pre-paid rules

Indian consumers choose plans and tariff structures that minimize monthly

expenditure. Further, they also choose tariff plans that let them switch easily –

especially since they shop on price. Thus pre-paid SIM cards are the dominant

method of revenue generation. With this scheme, consumers buy a SIM card to

use in their phones with a set amount of money on it (say ~$10).

In addition, since receiving calls in India is free, very often consumers will only

receive calls on their phones. And almost every cellular company has also

introduced free incoming plans for 1-2years & lifetime free incoming plans.

Thus, revenues per user are low, with pre-paid users contributing ~$5.6 per

month. While the average post-paid user spends much more – contributing

~$19 per month – this is a small segment of the market in India. In 2006, for

example, over 95% of new phone additions were pre-paid plans. (TRAI Dec

2006) (See Exhibit 1 for potential growth of pre-paid vs. post-paid in India).

5)Rural vs. Urban Market

While growth in India is significant, there is a large difference between urban

and rural markets. Teledensity varies wildly. For example, cities like Mumbai,

Delhi, Chennai, and Kolkata have a teledensity around 49% while Circles B and

C (which include far-less urban states) see a penetration of 2.6% (See Exhibit 7

for market penetration in India varied by geographical areas). Aslo, service

providers pay Access Deficit charges to subsidize the (mainly government run)

players that serve the unprofitable rural markets. However, as network

operators run into an increasingly saturated market in cities, they are slowly

turning to rural areas to grow. To enter these markets, carriers will have to

make large capital investments, create low introductory pricing, and only offer a

basic level of services. Although growth in rural markets will be slower and

require a larger investment per customer, with no guarantee of the same amount

of revenue, the thirst for communication and poor landline infrastructure makes

rural India a unique opportunity for growth.

Consequently, operators are dropping prices to ensure they get their hands on

the expanding customer pie and the large untapped market means that revenues

from the voice market will drive the growth for the next few years.

6. Demographics

The expected growth in the Indian GDP, 6-7 percent annually from 2005 to

2007, is a good indicator of the increased purchasing power of the population

(Asian Development Bank – 2005). A greater percentage of the Indian

population has higher levels of disposable income with which to purchase

products and services. Along with lower connectivity costs and cheaper

handsets, the mobile market in India is seeing a huge influx of subscribers who

can now afford basic coverage.India is also experiencing changing

demographics that have contributed to the explosion in the mobile market.

Approximately 70 percent of India’s 1.1 billion population is between the ages

of 15 and 40 (U.S Census Bureau-International Database, 2003). As a result,

telecom players are looking at a young population with increased pay scales and

more job opportunities. Furthermore, a high percentage of these Indians are still

living at home and saving their salaries. Thus, this generation is able to spend a

large percentage of their income on the purchase of entertainment and consumer

electronics, including cell phones.

7. Role of Government

The Indian government has played a significant role in setting the stage for

growth in mobile telecommunications. Through the oversight of the Telecom

Regulatory Authority of India (TRAI), the government has made many changes

to regulations and policies to remove hurdles and spark growth. First, the Indian

government introduced the Unified Licensing Regime in 2003. This regime

allows operators to offer any service through the technology of their choice, in

any area in which they currently operate. Thus, all telecom services (including

voice, data, cable TV, and radio broadcasting) can now be delivered through a

single medium and are covered by a single license. Unified licensing shifted

operator behavior and caused operators to start focusing on converged services

and networks for cost efficiency – which, in turn, allows them to offer pricing

conducive to rapid growth. In addition, the Indian government has raised the

maximum foreign direct investment (FDI) limit from 49 percent to 74 percent

in Telecom Sector. The government also enacted the Access Deficit Charge

(ADC) policy, which requires that a share of call revenue be paid to the

government to assist in funding network expansion into rural areas.

As of early 2005, several regulations were imminent. First, the launch of an

“All India” license would give operators the right to provide all forms of service

throughout India with one license. This structure would initiate the next phase

of market consolidation, with the result likely being five to six main players.

The players would have greater scale which would lead to higher cost

efficiency and, ultimately, more flexibility, and allow even fixed line users to

switch to mobile services seamlessly – possibly increasing competition in the

market. Finally, the government needed to decide how to increase spectrum

capacity, since 2G networks are nearing full capacity (“2G” stands for second

generation cellular technologies, which are circuit-based, voice technologies

deployed in the 1990s. This standard is being replaced around the world with

“3G” networks that are faster .

GROWTH OF TELECOM NETWORK (2008)

With a strong population of over 1.1 Billion, India has become one of the most dynamic and promising Telecom markets of the world. In recent times, the country has emerged as one of the fastest growing telecom markets in the world. It has third largest telecom network and the second largest wireless network in the world.

NETWORK EXPANSION

● The total number of telephones has reached 653.92 million telephone (landlines and mobile) May 2010 .

● The Indian Mobile subscriber base has increased in size by a factor of more than one-hundred since 2001 when the number of subscribers in the country was approximately 5 million to 617.53 million in May 2010.

● The tele density, as given in the following graph, has shown a sustained increase during last few years.It increased from 26.22% in March 2008 to 36.98% in March 2009.

Tele density graph

Cellular Service Providers

As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125 million are GSM users and 41 million CDMA users.

BSNL, Bharti Airtel, Hutch, Idea, Aircel, Spice and MTL are the main GSM providers in India. Reliance Communications and Tata Indicom are the main CDMA providers in India.

Bharti Airtel

Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West Bengal. Airtel is the No.1 cellular service provider in India using GSM technology. Airtel has 23% market share in India with a total subscriber base of 38 million.

Reliance Communications

Reliance has both CDMA and GSM networks and total subscriber base of 29 million or 17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata, North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in other states and cities.

Bharat Sanchar Nigam Limited (BSNL)

BSNL is a state owned telecom company which has GSM presence in almost every cities and towns. BSNL has 27 million subscribers with a market share of 16%.

Tata Indicom

Tata Indicom is a main CDMA provider in India with 16 million subscribers all over

India. Tata Indicom has presence in almost every states and cities in India

Airtel has more than 100 million subscribers and BSNL has half as much. But, BSNL’s revenues was more than Airtel’s until now. For the first time Airtel has surpassed BSNL to become country’s number one telecom operator in terms of subscribers and revenues.

There is a drop of 0.4% in BSNL’s revenues when compared with the previous fiscal year. Airtel has increased its revenues by 39.8%  - a very impressive growth.

BSNL did not face the heat until now as the revenues weren’t dipping. That doesn’t hold good any more and it has to buck up or revamp before it turns into an Air India. BSNL doesn’t have the same kind of excuses of Air India as it operates in a lucrative telecom market.

The other operator which has seen a drop in revenues is MTNL. This is in spite of all the 3G spectrum and the leg-up both BSNL and MTNL got from the government. Giving subsidies and special treatment doesn’t work after all.

Reliance saw a decent growth of 23.1% and its revenues are 22341 crores. It is 3rd in line. The best growth in revenues was by IDEA Cellular at 50.7%.

Airtel and Reliance are the 2 India based operators to feature in the top 20 telecom operators by subscribers.

Top 10 telecom service providers by revenues :

RankOperator Revenues

2006-07Revenues 2007-08

Revenues 2008-09

Growth %

1 Bharti Airtel 17888 26436 36962 39.8

2 BSNL 40135 35296 35167 -0.4

3 Reliance 14468 18638 22341 23.1

4 Vodafone 10565 15477 22224 43.6

5 IDEA Cellular 4413 6720 10125 50.7

6 Tata Comm 8857 8263 9963 20.6

7 TTSL 5178 5993 6739 12.4

8 MTNL 4923 4729 4487 -5.1

9 Aircel 1507 2528 3425 35.5

10 TTML 1422 1730 1323 7.8

MARKET STRUCTURE OF TELECOM INDIA

COMPANYPROFILE

AIRCELAbout Aircel

The Aircel group is a joint venture between Maxis Communications Berhad of

Malaysia and Sindya Securities & Investments Private Limited, whose current

shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis

Communications holding a majority stake of 74%.

Aircel commenced operations in 1999 and became the leading mobile operator in Tamil

Nadu within 18 months. In December 2003, it launched commercially in Chennai and

quickly established itself as a market leader – a position it has held since.

Aircel began its outward expansion in 2005 and met with unprecedented success in the

Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern

provinces within 18 months of operations. Till today, the company gained a foothold in

18 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu &

Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh,

Karnataka, Delhi, UP(West), UP(East), Maharashtra & Goa and Mumbai.

The Company has currently gained a momentum in the space of telecom in India post

the allocation of additional spectrum by the Department of Telecom, Govt. of India for

13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra

Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa,

Rajasthan, Punjab, UP (West) and UP (East).

Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest

rating for overall customer satisfaction and network quality in 2006. Aircel emerged as

the top mid-size utility company in Businessworld’s ‘List of Best Mid-Size Companies’

in 2007. Additionally, Tele.net recognised Aircel as the best regional operator in 2008.

With over 25 million happy customers in the country, Aircel is a full-fledged national

operator.

MISSION STATEMENT

We are conditionally committed to exceeding our

customer’s expectations. we will provide network and

services that are innovative and reliable, allowing our

customers any time anywhere communications. we will

attract, develop and retain an exceptional team of people.

We are committed to enhancing the quality of real life in

the community in which we operate. We will meet the

financial expectation of our shareholders.

OUR GOALS AND VALUES

CUSTOMERS : Our customers are our most valued assets. We will strive to

exceed their expectations at all time by providing them with superior services

that embody value, innovation, quality and care.

PEOPLE : Our people are our greatest resources. we will attract, train and

retain the best. We will challenge them to develop their full potential in the

context of our company goals.

INTEGRITY : We will maintain and strive for the highest levels of personal

and professional integrity and honesty in all ours dealings. We will keep our

promises.

RESPECT : We will treat with respect & dignity all people we deal with.

EXCELLENCE : We are committed to excellence in all what we do. There will

be no place for mediocrity.

WORK : We will promote a work environment that embraces creativity,

promotes empowerment, and encourages team work, innovation, prudent risk

taking, honest and open communication and respectful iconoclasm

QUALITY : The hallmark of our internal and external outputs and processes

will be quality. This will pervade every aspect of our functioning.

The Organization chart of Delhi & NCR circle is shown below:

The various depts. and their functions in Jammu circle are as

Sales and Marketing Department

Customer Service Department

Technical/networking Department

Commercial Department

Finance Department

Revenue Assurance Department

Human Resources Department

Administration Department

Vigilance Department

Value Added Services

When a network operators offers services using:

• existing customer base• existing infrastructure•

They add more value to the relationship between consumer and operator. Hence, these services are known as Value Added Services.

Broad Classification of VAS offerings :-

• Messaging – short codes, MMS, email • Music – mono tones, true tones, poly tones, mp3 tones, full songs, CRBT etc.

• Imagery – wallpapers, animations, screensavers, videos etc.•• Games – Branded, Unbranded•• Text based – stock quotes, news etc.• Doctor on call• Voice station• Caller ringtones

VALUE ADDED SERVICES PROVIDED BY AIRCEL

VAS Delhi & NCR

Aircel pocket internet

Voice Station

Subscription Services

Missed call alerts

Dialer Tunes

Live Astrology

Doctor On call

3.1 Aircel pocket internet

Non-stop downloads of your favorite stars' Wallpaper, latest Polyphonic Ringtones, MP3 tones, True tones, Music Videos, Movie videos, Themes, Movie Themes and Mobile games only on Aircel pocket internet.

What’s more, activating this service is free and browsing the portal is charged just @10p/10Kb.

Charges: SMS sent to 121 will be Free. Browsing charges 10paisa/10 Kb.

Tariff Plans: Service Rate (Rs.)

Astro 5

Wall Papers 15

Polyphonic Ring tone 15

True Tones 20

Mp3 Tones 20

Animation 15

Videos 30

Themes 50

Movie Themes 30

Games 50 / 99 / 150

3.2 Voice Station

» Voice Station

Aircel 55500 service offers you a host of never before services - from music on your mobile to tit-bits about celebrities. All you need to do is call 55500 from your Aircel mobile and follow the simple instructions to enter a world of information and entertainment. The service recognizes your voice and gives information based on the command given by you.Music Messaging and Ringtones

PrayersPerform pooja from your Aircel mobile. Listen to an exhaustive collection of devotional songs like Supbrapatham, Bhajans, Amman Songs, and Gayathri & Gurbani. Astrology Service You can check your horoscope for the day, by entering your birth date. Astro info is updated every day. NewsGet the latest news updates. Information is available across Regional, State, National and International categories.

Calls to 55500 services will be charged at Rs.6/min. Conditions Apply.

SportsGet the latest news and information about the happening in the sports world, like live commentary, scores, schedules etc.JokesSmile with us by listening to the jokes. We have exhaustive collection which will make you burst in laughter for sure.Call rates Rs. 6/min.

Subscription Services:-

ServiceSubscription

KeywordSend To Charges Alerts Time

News Headline + Breaking News

SUB NEWS 58000 Rs 7/week Twice a day 10:30 & 16:40

Cricket NEWS & SCORES

SUB CRI 58000 Rs 7/week Ball by Ball update 9:00

Jokes Alert SUB JOKES 58000 Rs 7/week Once a Day 13:30

Astro PackSUB ASTRO <SUNSIGN>

58000 Rs 7/week Once a Day 13:00

Stock Alert SUB STOCK 58000 Rs 7/week Thrice a Day10:15 & 13:00 & 17:00

Though of the Day Alerts

SUB THO 58000 Rs 7/week Once a Day 9:30

Mehfil-E-Timepass/Shayari

SUB SHAYARI 58000 Rs 7/week Twice A day 13:00 & 14:55

Love Express SUB LOVE 58000 Rs 7/week Once a Day 11:15 & 14:00

Beauty Tips Alerts SUB BTIP 58000 Rs 7/week Once a Day 13:45

Health Tips Alerts SUB HTIP 58000 Rs 7/week Once a Day 17:30

Receipe Tips Alerts SUB RTIP 58000 Rs 7/week Once a Day 15:20

Fun Unlimited Alerts SUB FUN 58000 Rs 7/week Once a Day 10:00 & 14:45

Regional News Alerts SUB RNEWS 58000 Rs 7/week Once a Day 14:50

Ayurvedic Tips Alerts SUB ATIP 58000 Rs 7/week Once a Day 7:30

Amazing Facts Alerts SUB AF 58000 Rs 7/week Once a Day 12:30

Numerlogy AlertsSUM NUM1 TO NUM9

58000 Rs 7/week Once a Day 13:45

Guru Granth Sahib Alerts

SUB GURU 58000 Rs 7/week Once a Day 7:00

Geeta Shloakas SUB Geeta 58000 Rs 7/week Once a Day 6:40

Holy Bible Alerts SUB BIBLE 58000 Rs 7/week Once a Day 6:40

Quran Alerts SUB QUR 58000 Rs 7/week Once a Day 8:45

Ram Charit Manas Alerts

SUB RAM 58000 Rs 7/week Once a Day 8:45

Friendship Messages Alerts

SUB FRIENDS 58000 Rs 7/week Once a Day 14:00

Career Guru Pack SUB CG 58000 Rs 7/week Twice a day 10:00 & 14:00

Fundoo Pack SUB FNP 58000 Rs.30/month Twice a day 11:00 & 16:00

Super Sports Pack SUB SSP 58000 Rs.30/month Twice a day 10:00 & 15:00

Word-a-Day SUB WORD 58000 Rs 7/week Once a Day 9:35

Bihar News SUB NEWSBH 58000 Rs 7/week Once a Day 11:40

News - Bengal SUB NEWSBN 58000 Rs 7/week Once a Day 11:40

News - Kerela SUB NEWSKER 58000 Rs 7/week Once a Day 11:40

News - Karnataka SUB NEWSKK 58000 Rs 7/week Once a Day 11:40

News - Maharashtra SUB NEWSMAH 58000 Rs 7/week Once a Day 11:40

News - NCR SUB NEWSNCR 58000 Rs 7/week Once a Day 11:40

News - North East SUB NEWSNE 58000 Rs 7/week Once a Day 11:40

News - Punjab SUB NEWSPUN 58000 Rs 7/week Once a Day 11:40

News - Rajasthan SUB NEWSRAJ 58000 Rs 7/week Once a Day 11:40

News - TN SUB NEWSTN 58000 Rs 7/week Once a Day 11:40

News - UP SUB NEWSUP 58000 Rs 7/week Once a Day 11:40

News - Gujarat SUB NEWSGJ 58000 Rs 7/week Once a Day 11:40

News - AP SUB NEWSAP 58000 Rs 7/week Once a Day 11:40

News - J&K SUB NEWSJK 58000 Rs 7/week Once a Day 12:40

Aduilt Jokes SUB AJ 58000 Rs 7/week Once a Day 10:00

To unsubscribe from any of the services please contact Aircel Customer Care. SMS Charges to 58000: Rs.3/SMS

3.3 Missed Call Alerts

Want to know who called you when your mobile was switched off or out of coverage area?

Just subscribe to the Aircel Missed Call Alerts service (MCA). There are two simple ways of doing it.

After subscribing to the monthly service, you will receive alerts on your mobile for all the missed calls at no extra cost.

Pay as you use option You also have the option of not subscribing to the service. In this option you can get the missed call alerts for the every request you send.SMS Charges to 5899903: Rs. 3/SMS

3.4 Dialer Tunes

Aircel introduces Dialer Tunes! Get rid of boring Tring Tring and make your callers listen to latest tunes. Dial 56565, Registration Rs.30/month, call Rs.6/min & Rs.15/song.. Song validity is for a period of 90 days. “Dialer tune” is a special service through which the calling party can hear a song or music instead of the default "Tring Tring" tune. In order to get the Dialer service activated the subscriber has to register with the Dialer Tune service by calling 56565 and follow the instructions played by IVR. Once the user has registered for DIALER TUNE service the calling party will hear the song instead of the default ringing tune ("Tring Tring"). Subscriber will be confirmed with an SMS message of service activation.

To change the selected song or to dedicate a special song to another user the subscriber has to call 56565 and follow the instructions which will play by IVR, While selecting the song it will play, whether to dedicate to all or a particular number. Through this the subscriber can dedicate a specific song for a specific subscriber.. Whenever this subscriber calls, he or she will get to hear the special song dedicated to the calling number. Select a new song and either assigns the song for all the callers or to particular caller so that the previous song will be replaced with the newly selected song. Subscriber will be confirmed with an SMS message of song change. The user can deregister from the DIALER TUNE service by calling the short code 56565 and follow the instructions played by IVR. Select the account details or profile management and can do deregistration of a single number or all. Once the subscriber is unregistered the calling party will not hear the song anymore and only the default "tring tring" will be played. The User can also unsubscribe from this service, by calling Aircel Customer care at 9858012345 or 121 from local Aircel numbeThe user can remove the song dedicated for a particular subscriber by calling 56565 at Rs.6/Min and follow the instructions played by IVR. Select the account details or profile management and can do deregistration of a single

number. After removing the dedicated song the particular subscriber will hear the default song selected for all..

3.5 Live Astrology

Astrology service on short code 55315 is a voice based LIVE SERVICE, where AIRCEL customers can call at Rs. 9/min and talk to formally trained & experienced ASTROLOGERS.Details of charges:

Live Astrology service on 55315 – Rs. 9/min (60 second pulse

3.6 Doctor On call

‘Doctor-on-call' provides access to quality medical advice from the comfort of your home/ office. Gets instant advice on medical/ health and wellness queries from a panel of doctors specializing in various fields.

Details of charges : Doctor on Call service on 54887 – Rs. 9/min (60 second pulse).

INTRODUCTIONRESEARCH METHODOLOGY

The research process methodology consists of six steps and these steps are as follows:

1. Problem definition.2. Development of an approach to the problem.3. Research design formulation.4. Field work or data collection.5. Data preparation and analysis.6. Report preparation and presentation.

PROBLEM DEFINATION

The first step in any marketing research is to define the problem. In defining the problem, the researcher should take into account the purpose of study, the relevant background information and the information needed.

Statement of problem: The purpose of our study is as follows:-

To study the attitude, preference and response of “AIRCEL” customers towards “DIALER TUNE.”

To study how frequently the users of dialer tune change their dialer tune

To identify the factors which are keeping “AIRCEL” customers away from dialer tune service.

To study the satisfaction level of dialer tune services.

RESEARCH DESIGN

A research design is a framework for conducting the marketing research project. It details the procedure necessary for obtaining the required information, and its purpose is to design a study that will test the hypothesis of interest, determine possible answers to research questions and provide the information needed for decision making. Formulating the research design involves the following steps:-

(a) TYPE OF RESEARCH DESIGN: Descriptive Research.

We are using the descriptive research as we know the problem and by using this type of research we are able to get information regarding the attitude of Aircel customers towards dialer tune.

These 6 W’s will help us to know the attitude of Aircel customers towards dialer tune:

Q1. Who are the people that are using or not using dialer tune?

Q2.What is the satisfaction level of Aircel customers towards the dialer tune service?Q3 Why Aircel customers are away from dialer tune?

Q4 When and how frequently customers change dialer tune?Q5 Where the respondents should be contacted to obtain the required information?Q6 In what way are we going to obtain information from the customers?

(b) METHOD OF COLLECTING QUANTITATIVE DATA:-

The research instrument which we are using in our research paper is a questionnaire. Our questionnaire consists of 8 close ended questions and 5 open ended questions. This questionnaire translates the information needed into a set of specific questions that the respondents have to answer.

(c) SCALING TECHNIQUES:- METHOD OF SCALING: The scaling method which we are using in our

questionnaire is NOMINAL SCALE. RANK ORDER SCALE

(d) SAMPLING TECHNIQUES:-

1. TARGET POPULATION: All Aircel customers of J&K .

2. SAMPLING FRAME: All customers of Kathua region.

3. SAMPLING SIZE: Our sample size will consist of 500 respondents.

4. SAMPLING TECHNIQUE: We are using SIMPLE RANDOM sampling technique.

(e) FIELD WORK:- Our field force consists of 1 MEMBER only and our field is Kathua district.

DATA ANALYSIS

PLAN OF DATA ANALYSIS:

The main objective of our study is to analyze the factors. The course of the test is as follows:

For this we calculated the frequency distribution of the various responses that were given by the respondents. The response that got the highest frequency of occurrence associated with it is considered as the main factor.

METHODOLOGY AND ANALYSIS

PERCANTAGE OF FEMALE AND MALE USERS

SPAN OF TIME SLOT OF PEOPLE USING AIRCEL:-

In our survey 3.6% of respondents are using Aircel > 1 month 23% of respondents are using Aircel from 2-6 months 36.8% of respondents are using Aircel from 6-12 months 36.6% of respondents are using Aircel < 1 year

NUMBER OF DIALLER TUNES USERS

78% of Aircel customers are not using dialer tune service. 22%of Aircel customers are using dialer tune service.

REASONS FOR NOT USING DIALLER TUNES

14.5% of customers are not using due to NON AWARENESS. 63.85 of customers are not using due to HIGH PRICE. 7.7% of customers are not using due to POOR QUALITY OF SERVICE. 14.4% of customers are not using due to OTHER REASONS

NUMBER OF PEOPLE CHANGING SONGS FREEQUENTLY:-

NO. Frequency Percent 1.00 85 79.4

2.00 22 20.6

Total 107 100.0

85% customers change the songs frequently.

20.6% customers do not change their song frequently .

FREEQUENCY OF CHANGE OF SONGS BY CUSTOMERS:-

57% of customers changes songs monthly. 42 % of customers changes songs weekly. 1%of customers changes songs quarterly.

DO CUSTOMERS RECOMMEND THIS SERVICE TO OTHERS

96% customer recommend dialer tune service to others 4% customers did not recommend this service to others

RATING GIVEN BY PEOPLE TO THIS SERVICE

Frequency Percent

1.00 21 19.6

2.00 54 50.5

3.00 22 20.6

4.00 8 7.5

5.00 2 1.9 Total 107 100.0

19.6% customer rate this service as EXCELLENT. 50.5 % customer rate this service as VERY GOOD. 20.6 % customer rate this service as FAIRLY GOOD. 7.5 % customer rate this service as AVERAGE. 1.9 % customer rate this service as POOR.

FINDINGS:-

HIGH COST OF DIALER TUNE SERVICE IS THE MAIN

REASON KEEPING AWAY FROM THIS SERVICE.

HINDI SONGS ARE MOST PREFFERD DIALER TUNE.

PEOPLE MOSTLY CHANGE THEIR DIALER TUNE

FREQUNTLY i.e MONTHLY OR WEEKLY.

90% i.e ALL MOST PEOPLE ARE STISFIED WITH THIS

DIALER TUNE SERVICE.

ALL MOST ALL i.e USERS RECOMMEND THIS SERVICE

TO OTHERS

LIMITATIONS:-

No study is free from the limitations, so does ours. There are many

limitations that we encountered during the course of our study and

research process

Our study is restricted to AIRCEL CUSTOMERS only if the

would have included other customers also then the wider

analysis could have been done.

Some questions regarding the attitude of the customers also

depends on the mood of the respondent and at the time during

which they were interviewed

RECOMMENDATIONS & SUGGESTIONS :-

By going through all the study there are some recommendations that can make the

study more effective as well as can create a good results for AIRCEL dialer tune

service. These recommendations are as follows:-

The price of dialer tune should be less so that more customers can use it.

Some promotional strategies should be used in rural areas as very less

awareness of value added services in rural area.

Distribution of promotion material should be regular and noted.

Aircel should improve their visibility. During the survey period I found very

few shops and other, points where advertisement has been done.

ANNEXURE

QUESTIONNAIRE Dear Respondent

I am conducting a survey as a part of my course curriculum for my project.

I would be grateful to you if you could kindly spare some of your precious time and

help in filling up the questionnaire below. Thanking You

NAME: ___________ QUALIFICATION: ___________ AGE: ___________ OCCUPATION: ___________ SEX :_____________ Market search information

1. How long you have been using Airce l?

a) > 1 month b) 2-6 months c) 6-12 months d) < 1year

2. Do you use dialer tune service ?

a) Yes b) No

3. If not , then why you are not using this service ?

a) No awareness b) High price c)poor quality service d) others

If yes , answer the following question : 4. Which category of songs you prefer ?

a) Hindi b) Punjabi c) English d) kashmiri

5. Do you change the song frequently ?

a) Yes b) No

6. If yes ,then how often is the change ?

a ) Weekly b) Monthly c) Quartely

7. Do you recommend the service to others ?

a) Yes b) No

8. Rate the service on the basis of your satisfaction ?

a) Excellent b) Very good c) Fairly good d) Average

e) Poor 9. Please give your opinion to make this service better .

a)_______________________________________________

b)__________________________________________________

c)____________________________________________________

10. Please mention the other service also which you would want on your Aircel mobile ?

a)_______________________________________________________

b________________________________________________________

c)__________________________________________________________

Thanks you for your precious time and valuable information.

CODE SHEET:-

S. NO

Q NO.

QUESTION Coding Instruction

1 Q1 SINCE HOW LONG YOU HAVE BEEN USING AIRCEL?

>1 Month :-12-6 Months :-26-12 Months :-3>1 Month :-4

2 Q2 DO YOU USE DIALER TUNE SERVICE?

Yes :-1; No :-2

3 Q3 IF NOT, THEN WHY YOU ARE NOT USING THIS SERVICE?

No awareness :-1High price :-2Poor quality service:-3Others :-4

4 Q4 WHICH CATEGORY OF SONG YOU PREFER?

Hindi :-1Punjabi :-2English :-3Devotional :-4Kashmiri :-5Dogri :-6

5 Q5 DO YOU CHANGE THE SONG FREQUENTLY?

Yes :-1No :-2

6 Q6 IF YES, THEN HOW OFTEN IS THE CHANGE?

Weekly :-1Monthly :-2Quarterly :-3

7 Q7 DO YOU RECOMMEND THIS SERVICE TO OTHERS?

Yes :-1,No :-2

8 Q8 RATE THE SERVICE ON THE BASIS OF SATISFACTION?

Excellent :-1Very good :-2Fairly good :-3Average :-4Poor :-5

REFERENCES:

Websites:

• http:// www.trai.gov.in• http://en.wikipedia.org

• http://www.aircel.com

• http:// www.ibef.com

• http://www.scribd .com

Book:

• Malhotra, Naresh(2009), MARKETTING RESEARCH- AN APPLIED

ORIENTATION, Prentice Hall Of India Private Limited, New Delhi