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A RESEARCH REPORT ON “MOBILE NUMBER PORTABILITY” By KONGARA CHAITANYA Roll No.417 Under The Guidance of Dr. Sarath Garimella In partial fulfillment of POST GRADUATE DIPLOMA IN MANAGEMENT ENGINEERING STAFF COLLEGE OF INDIA

Marketing Strategy of Airtel

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Page 1: Marketing Strategy of Airtel

A RESEARCH REPORT

ON

“MOBILE NUMBER PORTABILITY”

By

KONGARA CHAITANYA

Roll No.417

Under The Guidance of

Dr. Sarath Garimella

In partial fulfillment of

POST GRADUATE DIPLOMA IN

MANAGEMENT

ENGINEERING STAFF COLLEGE OF INDIA

HYDERABAD

(2014 – 2016)

DECLARATION

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I hereby declare that project entitled “MOBILE NUMBER PORTABILITY” is bonafide work duly completed by me. It does not contain any part of the project or thesis submitted by any other candidate to this or any other institute of the university.All such materials that have been obtained from other sources have been duly acknowledged.

KONGARA CHAITANYARoll No.417

CERTIFICATE

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This is to certify that the Project Report titled “MOBILE NUMBER

PORTABILITY” submitted by KONGARA CHAITANYA in partial fulfilment

of Post Graduate Diploma in Management at Engineering Staff College of

India, Hyderabad is a record of bonafide work carried out by him under my

guidance and supervision.

Guide Name

Dr. Sarath Garimella

To whom so ever it may concern:

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This is to certify that KONGARA CHAITANYA a student of Engineering Staff

College of India, has successfully completed project on the topic “MOBILE

NUMBER PORTABILITY “ from 15/06/2015 to 30/07/2015 .

During this period, his/ her work has been found Excellent/Good/ Satisfactory.

We wish him/her the very best in his/her future endeavor

Authorized Signatory

ACKNOWLEDGEMENT

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I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would

be a mammoth task to place on record my gratitude to each and every

one of them but a whole hearted attempt would be made nevertheless,

least I be branded ungrateful.

I am extremely thankful to Sarath Garimella, (Unit Advisor) for giving me

an opportunity to do research on MOBILE NUMBER PORTABILITY and

making a memorable learning experience.

Chapter Scheme1. Introduction

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a. Historyb. Importance of the study or topic

2. Research Methodology a. Objectives of the studyb. Scope or limitation of the studyc. Methodology followed for data collection

i. Sample size(if any)ii. Review of any previous literature(if any)

iii. Primary data collection methodiv. Secondary data collection method

3. Company and Industry profilea. About the company

i. Products and market informationii. Market share

iii. Firm sizeiv. Key employees/ managementv. Brand/ company image

b. Industry profilei. Market Growth

ii. Market sizeiii. Competitive Structure iv. Technology factors(if any)

4. Data collection and analysisa. Tables and description

5. Findings and conclusions

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INTRODUCTION OF MNP• Mobile number portability is now crucial issue for the mobile service providers.The most challenging job for the present day is that retain existing mobilecustomer. The mobile operator’s ability to retain its customer has a direct impacton its profitability and effectiveness. Losing a customer will affect the mobileoperators in terms of cost.• The MNP service also encourages churn, as mentioned above, which serviceProviders generally strive to keep at a minimum. High churn rates are especiallyuseful for new entrants into the mobile market, because they are able to acquiresubscribers to their networks. MNP helps these firms to acquire new subscribers,but operators are faced with the task of having to retain their existing subscribers,which may sometimes be harder to do. Service providers have to take extraefforts to ensure that they do not lose their own subscribers while trying to enticesubscribers from other networks to take up their services, and striking thisbalance can be tricky. There are, therefore, both positive and negativeconsequences to high churn rates.• On the other hand, there are several downsides to using MNP services. With theuse of MNP customers will generally be oblivious to the network they are calling.In the past, operators have had a specific number code before the remainingnumbers that comprise a phone number, in order to make it easy for callers toidentify which network they are calling. With the use of MNP, however, this codeserves very little purpose as it does not mean that a customer with such a codestill belongs to the corresponding network. This, therefore, defeats the purpose ofhaving such a code and has implications on national numbering plans.Additionally, since mobile27• Subscribers Are Most Likely To Be Unaware Of Which Network They AreMaking Calls To And Operators Can Take The Opportunity To IncreaseTermination Charges. In Fact, Mobile Subscribers Will Be Unable To Know ThePrice Of Any Call And Cannot Take Advantage Of On-Net And Off-Net RateDifferences Too; However, The Easiest Way To Overcome This Problem WouldBe To Enforce A Single Rate Tariff Plan For All Operators.MNP solution• TerminologyNumber range holder (NRH) network: the network which the number isassigned.Subscription network: the network through which the customers mobileoperator has a contract to implement services for a specific mobile phonenumber.Donor network: subscription network from which a number is ported in portingprocess.Recipient network: network that receives the number in the porting process.• Database management for MNPSyniverse was selected to receive the license for zone 1 (northern or western)

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which includes the services areas of Delhi, Mumbai, Maharashtra, Gujaratand seven others.28MNP interconnection telecom solutions were granted for MNP service Zone 2:Eastern or southern india.

• Technical Aspects of MNP ImplementationEach Country Can Implement Number Portability With The Methodology AndTechnology That Best Matched Existing Carrier Architectures And CustomerNeeds.There Are Four Different Schemes For The Implementation Of The Routing:1. All Call Query (ACQ)2. Query OnRelease (Qor)3. Call Drop Back (CD)4. Onward Routing (OR)ACQ Is The Most Efficient Scheme With The Most Optimal Use Of TheSwitching And Associated Network Facilities

General informationOVERVIEW OF TELECOM SECTOR IN GLOBLE MARKET2012 was an eventful year for telecommunication industry. In 2013 keychallenges for telecom companies will be how to monetize new business models,leverage customer data by investing in analytics and define their response to over-thetopplayers.• Mobile connection growth which will slow to 7% in 2013.• Mobile broadband connection will grow by a more respectable 27% and LTEconnection increase by 150% and fiber will grow by 28%.• Wholesale carriers will continue to face declining revenue and margins as aresult of domestic regulation and intense competition.• Operator will tack a new approach to M2M with more partnering to deliverservices• All vendors will have to deal with the encroachment of software providers incore telecoms software stacks.• Companies that are integrating devices and services ( such as Microsoft,apple and Samsung) will be in the strongest position to capitalize on growth inthe devices market.• Android OS and Samsung will pull further ahead in the platform and devicemarket respectively in 2013.• The global telecom services market will continue to be the largest ITspending market in 2013

OVERVIEW OF TELECOM SECTOR IN INDIAThe Indian Telecommunication Industry Is One Of The Largest And The FastestGrowing In The World. Government Policies And Regulatory Implemented By (TRAI)

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Telecom Regulatory Authority Of India.Through The Awareness Around The World On The Information And CommunicationTechnology, In The Later Part Of 20th Century To Realize The Importance Of AnEfficient Telecommunication For The Development Of The Economy.At The 21st Century The Developing Countries Started The Full Use Of TechnologyRevolution Tacking Place Around The World.The Indian Telecom Sector Is One Of The Fastest Growing In The World And Projected

That India Will Have Billion Plus Mobile Users By 2015

In Today’s Information Of Telecom Industry Has A Vital Role To Play.

Indian Telecom Sector Is More Than 165 Years Old. Telecommunication Was First

Introduced In India In 1851 Near Kolkata.

After That Telephone Services Were Formally Introduced In India Later In 1881

The Indian Telecom Sector Was Entirely Under Government Until 1984, When The

Private Sector Was Allowed In Telecommunication Equipment Manufacturing Only.

The Actually Evolution Of Telecom Industry Started After The Government Separated

The Department Of Post And Telegraph In 1985.By Setting Up Department Of Post And

Department Of Telecom (DOP &DOT).

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Indian Telecom Sector Is More Than 165 Years Old. Telecommunications Was First

Introduced In India In 1851 When The First Operational Land Lines Were Laid By The

Government Near Kolkata (Then Calcutta), Although Telephone Services Were

Formally Introduced In India Much Later In 1881.

The Entire Evolution Of The Telecom Industry Can Be Classified Into Three Distinct

Phases.

• Phase I- Pre-Liberalization Era (1980-89)

• Phase II- Post Liberalization Era (1990-99)

• Phase III- Post 2000

• Phase I- Pre-Liberalization Era (1980-89):-

• Entry of private sector in telecommunication equipment manufacturing-

1984

• Formation of Mahanagar Telephone Nigam Limited (MTNL) and Videsh

Telephone Nigam Limited (VSNL)-1986

• Telecom commission was set up-1989

• Phase II- Post Liberalization Era (1990-99):-

• Liberalization of Indian economy-1990s

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• Private sector participation in provision of VAS such as cellular and paging

services-1992

• National telecom policy announced-1994

• Telecom regulatory authority of India (TRAI) was established in 1997

• New telecom policy (NTP) announced-1999

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• Phase III- Post 2000:-

• Bharat Sanchar Nigam Limited (BSNL) established-2000

• National Long distance (NLD) and International Long distance (ILD)

service opened to competition-2000

• CDMA technology launched-2000

• Internet telephony initiated-2000

• Reduction of license fees-2000

• VSNL privatised-2002

• Launch of mobile service by BSNL-2002

• Unified access licensing (UASL) ragime was introduced-2003

• Calling party pays (CPP) was implemented-2003

• Broadband policy was formulated-2004

• Intra circle merger guidelines established-2004

• FDI limits increased from 49% to 74%-2005

• Number portability was proposed-2006

RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

Types of research methods

In This Section, We Summerrise The Various Research Methods Used In

The Previous

Studies We Reviewed. A Total Of Eight Types Of Research Methods Were

Found:

Descriptive Research, True Experiment, Experiment (Weak), Quasi-

Experiment, Ex-

Post Facto, Single-Subject, Design-Based Research, And Mixed Method.

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Descriptive Research Typically Naturalistic And Depicts Conditions As

They Exist In A

Particular Setting . According To, Descriptive Research Is Mainly

Concerned With What

Is Type Of Questions That Describe Events Focusing On A Particular Issue

Or

Phenomenon.

Research Design Is The First And Foremost Step In Methodology Adopted

And

Undertaking Research Study. It Is Overall Plan For The Collection And

Analysis Of Data

In The Research Project. Thus It Is An Organized, Systematic Approach To

Be The

Formulation, Implementation And Control Of Research Project.

In this project we used descriptive research with the instrument of

questionnaire.

Descriptive research is used to find out the perception of customer. There

are various

elements used in descriptive research.

39

Types of Descriptive Research Methods

In the present unit, the following descriptive research methods are

described in detail:

1. Correlational Research

2. Causal-Comparative Research

3. Case Study

4. Ethnography

5. Document Analysis

6. Analytical Method.

Type of Research:

In this report we have used to descriptive research method for mobile

number

portability.

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40

4.2 SOURCE OF DATA

For The Study Purpose Both Primary And Secondary Data Are Used. The

Primary

Data Collected From Sales Men Of The Companies, Customers And

Dealers Dealing

In The Products Of The Company. The Secondary Data Collected From

Records Of

The Company, Retailers And Dealers. The Data Of Past Sales Also Have

Been

Collected. The Primary And Secondary Data Have Been Collected To Cover

Every

Aspect Of The Study. The Primary Data Are Related To Behaviour And

Response Of

Employees, Dealers And Customers. The Secondary Data Shows The Sales

Of The

Company Product Wise. These Data Used In Combination As Per Need Of

The

Study. These Data Having Different Merits And Demerits And Have Serves

Our

Purpose Of The Research Study. These Are Explained Below:

(A) Primary Data

Primary Data Are Information Collected By A Researcher Specifically For A

Research

Assignment. In Other Words, Primary Data Are Information That A

Company Must

Gather Because No One Has Compiled And Published The Information In A

Forum

Accessible To The Public. Companies Generally Take The Time And

Allocate The

Resources Required To Gather

Primary Data Only When A Question, Issue Or Problem Presents Itself That

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Sufficiently Important Or Unique That It Warrants The Expenditure

Necessary To

Gather The Primary Data. Primary Data Are Original In Nature And Directly

Related

41

To The Issue Or Problem And Current Data. Primary Data Are The Data

Which The

Researcher Collects Through Various Methods Like Interviews, Surveys,

Questionnaires Etc.

(b) Secondary Data

Secondary data are the data collected by a party not related to the

research study but

collected these data for some other purpose and at different time in the

past.

INFORMATION ABOUT COMPANIES IN TELECOM SECTOR1. AirtelBharti Airtel Limited Is India’s Largest Telecom Company Headquartered In New Delhi.Founded By Sunil Mittal In 1986 The Company Is Fourth Largest Mobile Operator InThe World. Products Offered Y Company Includes Mobile Commerce , 2G, 3G And 4GWireless Services, Fixed Line Services, IPTV, High Speed DSL Broadband, DTH AndEnterprise Service.Airtel ltd is one of the world's leading providers of telecommunication services withpresence in 19 countrys. The company offers an intigarated suite of of telecomesolution to its enterprice customers and additional provide long distance connectivity

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both nationaly and internationalyAirtel company effect from Bharti-televencher to Bharti Airtel ltd with effect from april 24,2006 in order to reflect there brand essence objectives and the nature of therebussiness activitiesAirtel ltd was gives the GPRS / EDGE this types of services will be also given.2. RelianceReliance Communications A Flagship Company Of Reliance Group Was Established In2004. The company will be founded by Mr. Dhirubhai H. Ambani. And Is The SecondLargest Telecom Operator In India. Its Headquartered In Navi Mumbai.At that time the chairman and MD is Mr. Mukesh D. AmbaniThe Company Has More Than 150 Million Subscribers. The Company’s ProductOfferings Include Wireless, Broadband, National And International Long DistanceServices.153. Tata DocomoA Tata Group Company Providing Cellular Service On The GSM, CDMA And Platform .It launched mobile operations in January 2005 under the brand name Tata Indicom andtoday enjoys a pan-India presence through existing operations in all of India’s 22telecom Circles. The company is also the market leader in the fixed wireless telephonymarket. The company’s network has been rated as the ‘Least Congested’ in India for sixconsecutive quarters by the Telecom Regulatory Authority of India through independentsurveys.Tata Teleservices Limited has also become the first Indian private telecom operator tolaunch 3G services in India under the brand name Tata DOCOMO, with its recentlaunch in all the nine telecom Circles where it bagged the 3G license.Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 84million customers in more than 450,000 towns and villages across the country, with abouquet of telephony services encompassing Mobile Services, Wireless DesktopPhones, Public Booth Telephony and Wireline ServicesAVAILABLE OPERATORS IN INDIA:-16

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4. VodafoneVodafone Is A Leading Global Telecommunications Company With Operations In Over30 Countries . Headquartered In London, The Company Ranks Amongst The Top 4Telecom Companies Globally In Terms Of Subscribers And Revenues. Company Owns45% Of Verizon Wireless, The Largest Mobile Telecom Company In The Us MeasuredBy Subscribers.Chairman: Sir John Bond (Sir Ian McLaurin)CEO: Arun Sarin Short description of the companyInternational mobile carrier for consumer and enterprise customers with a significantpresence in Europe, the Middle East, Africa, Asia, Pacific and the United States History:1982: As Racal Telecomm, awarded the first mobile license in the UK1985: First mobile analogue call in the UK1993: Introduction of digital mobile services in the UK and first internationalpartnerships (Germany and South Africa)2000: Acquired Mannesmann AG and established Verizon Wireless (grouping themobile activities of Bell Atlantic and Vodafone AirTouch in the USA)2004: Commercially launched its 3G services in Europe 2005: Launched fixedmobile convergence product in Germany called Zuhaus.2007: Acquired controlling interest Hutchison Essar Limited in India; acquired Tele2fixed line operations in Italy and Spain Market position:Largest international mobile carrier in terms of subscriber base Licenses:Through its subsidiaries, owns GSM (900/1800), analogue and digital mobilelicenses, UMTS and fixed telephony licenses (only for certain subsidiaries)5.IDEAAn Aditya Birla Group Company With Over 121 Million Customers . Idea IsIndia Among Of The Top 5 Telecom Companies Which Is Offering 2g And 3gServices With A Traffic Of About 1.5 Billion Minutes A Day.Idea is a pan-india integarateed global system for mobile communicationoperator and has its own nation long distance and international long distanceoperations.The company operates in two business segments mobility service and longdistance. As of March 31, 2012, it has network of over 70000 cell sites and3000 service centers servicing Idea subscribers across the country. Thecompany operates in 33 countrys.17

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6. MTNLMahanagar Telephone Nigam Limited Is An Indian State-OwnedTelecommunications Company Headquartered In New Delhi. Mtnl Provides ServicesIn New Delhi And Mumbai In India And Mauritius In Africa. It Was Incorporated InThe Year 1986.In the 1986 it brought in digital exchange world technology for the first time inindia. MTNL a state owned telecome service financials total income 37159.71million year (mar 2013) and its net profit is 53211.23 million.7. AircelAircel Group Provides Messaging, Wireless Voice And Data Services In India. ItIs A Joint Venture Between Sindya Securities & Investments Private Limited AndMaxis Communications Berhad Of Malaysia. The company was establised in1999.It offers GSM mobile services in 19 circles in india with a subscriber base of43.3 million subscribers. In 2008 the company won 13 unified access servicelicences to operate in dilhi, gujarat, haryana, karnataka, kerala, madya pradesh,maharastra, goa, rajasthan.The company is also engaged in providing Internation long distancce callservice and national long distance telephonic services. Recently it has alsowon 3G and BWA spectrum.8. MTSMobile Telesystems (Mts) Is A Subsidiary Of Sistema A Russian Conglomerate.MTS was establised in octomber 1993 by moscow city telephone network. In late1996, sistema JSFC acquired a majority stake in MTS and has remain theprimary owner ever since.Mts Provides Wireless Voice, Messaging, Broadband Internet And Data Services InIndia. The Company Has More Than 16 Million Customers.18MTS was the first company to launch GSM service in the moscow region in 1994.MTS has expanded rapidly in russia largely through the acquisition of smallerindipendent players and become the leading nation mobile operator.In april 2008, MTS brand was recognized as one of the BRANDZ top100 most

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powerfull brand, a ranking publised by the financial times and millward brown.9. UninorUninor Is An Indian Mobile Service Provider Based In Gurgaon. It is estabised inthe year of 2009 telecommunication services provider in india. It Is A TelenorGroup Company Offering Mobile Data And Voice Services Based On The GsmPlatform.The Company Has Over Three Crore Subscribers In Goa, Gujarat, Andhra Pradesh,Uttarkhand, Bihar, Uttar Pradesh, Jharkhand And Maharashtra.The company has a distributor network of over 1700 and had over 31.8 millionsubscribers.In octomber 2012 the major sharholders in the company included telenorgroup and lakshdeep investment and finance pvt. ltd.10. BSNLBharat Sanchar Nigam Limited Is A State-Owned Telecommunications ServiceProvider Established On 15 September 2000. It Is The Seventh Largest MobileTelephony Provider And Largest Provider Of Fixed Telephony In India.balance can be tricky. There are, therefore, both positive and negativeconsequences to high churn rates.BSNL company give the facility of wire line, CDMA mobile,GSM mobile,internet,broadband, carriar services,VSAT, in services etc. Within a sapan of five years it hasbecome one of the largest public sector unit in indiaBSNL has more than 2.5 million WLL subscribers and 2.5 million internet customerswho access internet through various models19BSNL has set up a world class multi-gigabit, multi protocol conversion IP infrastructurethat provides convergent services like voice data video through the same backbone andbroadband access network.The comapny has vest experience in planning, installing, network intigration andmentenence of switching & transmission network and also has a world class ISO 9000certified telecome training institute.