MTNL 3G Final Report Part-2

8/2/2019 MTNL 3G Final Report Part-2

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INTRODUCTION:

The Indian Mobile Telephony Market

The Indian telecommunications industry is one of the fastest growing in the world. The industry has

witnessed consistent growth during the last year on the back of rollout of newer circles by

operators, successful auction of third-generation (3G) and broadband wireless access (BWA)

spectrum, network rollout in semi-rural areas and increased focus on the value added services

(VAS) market.

The number of telephone subscribers in India increased to 861.48 million at the end of April 2011

from 846.32 million at the end of March 2011, thereby registering a growth rate of 1.79 per cent,

according to the data released by Telecom Regulatory Authority of India (TRAI). With this, the

overall teledensity (telephones per 100 people) in India reached 72.08 at the end of April 2011 from

70.43 in the previous month.

Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added 9.53

million subscribers in May 2011, taking the all-India GSM cellular subscriber base to 590.19

million, according to Cellular Operators' Association of India (COAI). The GSM subscriber base

stood at 580.66 million at the end of April 2011.

Value-Added Services (VAS) Market

Mobile value added services (VAS) include text or SMS, menu-based services, downloading of

music or ring tones, mobile TV, videos and sophisticated m-commerce applications. As per a

report, India Telecom 2010 released by KPMG in December 2010, currently, the VAS market is

worth US$ 2.45 billion-US$ 2.67 billion, which is around 10 per cent of the total revenue of the

wireless industry. The share of VAS in wireless revenue is likely to increase to 12-13 per cent by

2011, on the back of increased operator focus on VAS due to continuous fall in voice tariffs,increasing penetration of feature rich handsets, availability of vernacular content and increased user

adoption of VAS applications.

Major Investments

The booming domestic telecom market has been attracting huge amounts of investment which is

likely to accelerate with the entry of new players and launch of new services. According to the

Department of Industrial Policy and Promotion (DIPP), the telecommunications sector which

includes radio paging, mobile services and basic telephone services attracted foreign direct


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investment (FDI) worth US$ 1,062 million during April -October 2010-11. The cumulative flow of

FDI in the sector during April 2000 and October 2010 is US$ 9,993 million.

As per an industry report the telecom industry witnessed merger and acquisition (M&A) deals

worth US$ 16.60 billion during April-December 2010, which represented 28.26 per cent of the total

valuation of the deals across all the sectors during the period analyzed. There were 10 inbound,

outbound and domestic M&A deals in the telecom sector during the first nine months of the current

fiscal. The biggest M&A deal in the sector was made by telecommunications service provider

Bharti Airtel through the acquisition of Zains African mobile services operations in 15 countries.

The deal involved a transaction of US$ 10.7 billion. In another deal, Bharti Airtel acquired 100 per

cent stake of Telecom Seychelles Ltd for US$ 62 million.

Other major M&A deals included the acquisition of 95 per cent stake in Infotel Broadband for US$1,032.26 million by Reliance Industries and 26 per cent stake of US-based mobile chipmaker

Qualcomms Indian arm for US$ 57.72 million by Indias Tulip Telecom and Global Holding.

Further, India-based GTL Infrastructure Ltd has bought 17,500 telecom towers of Aircel Ltd. for

US$ 1,702.95 million.

Going Global

In March 2010, Bharti Airtel bought the African operations of Kuwait-based Zain Telecom for US$

10.7 billion, driving the Indian player into the league of top ten telecom players globally.

The Reserve Bank of India (RBI) has liberalized the investment norms for Indian telecom

companies by allowing them to invest in international submarine cable consortia through the

automatic route. In April 2010, RBI issued a notification stating As a measure of further

liberalization, it has now been decided to allow Indian companies to participate in a consortium

with other international operators to construct and maintain submarine cable systems on co-

ownership basis under the automatic route. The notification further added, Accordingly, banks

may allow remittances by Indian companies for overseas direct investment.

Telemedicine

With increase in cell phone users to around 700 million and introduction of 3G services soon in the

country, remote treatment and diagnosis of patients through mobile phones would become a reality

in the near future. In fact, a few telecom operators and value-added service developers are planning

to use mobile phones for diagnostic and treatment support, remote disease monitoring, health

awareness and communication.


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The Gujarat health department plans to connect all villages through its telemedicine network. The

state government has so far expanded the reach of telemedicine services from 53 villages in 2008 to

453, and hopes to cross 500 villages soon.Jay Narayan Vyas, state health minister, said First thing

we plan to do is to start the 104 service over the phone. People can call up and talk to paramedics in

call centers who can suggest the primary action to be taken in case of any health emergency. Also,they would be able to suggest generic and over the counter drugs.

3G Services

The Department of Telecom has taken the pioneering decision of launching of 3G services by

BSNL and MTNL and initiation of process for auction of spectrum for 3G services to private

operators. Allocation of spectrum for 3G and BWA services was done through a controlled

simultaneous, ascending e-auction process.

All the 71 blocks that were put up for auction across the 22 service areas in the country were sold,

leaving no unsold lots. Auction for 3G spectrum ended on May 19, 2010 after 183 rounds of intense

bidding over a span of 34 days. The Government is expected to morph revenue worth US$ 14.6

billion. All the available slots across 22 circles have been sold to seven different operators.

A pan-India bid for third generation spectrum stood at US$ 3.6 billion. The Anil Ambani-

led Reliance Communication bagged the highest number of 13 circles at a cost of US$ 1.9 billion,

followed by Bharti Airtel in 12, Idea in 11 and Vodafone and the Tatas in nine circles each,

according to the Department of Telecommunications. MTNL and BSNL will have to pay US$ 1.42

billion and US$ 2.2 billion respectively.

3G spectra have already been allotted to successful bidders for commercial use on September 1,

2010 as per the timelines indicated in the Notice Inviting Application (NIA) and in the Letter of

Intent issued after the bid amounts were deposited. The 3G spectrum has been allotted to AirTel,

Aircel, Vodafone, S Tel, Reliance, Idea Cellular and Tata Cellular Services who won the bids

through the electronic auction spread over a period of 34 days in respect of 3G and 16 days in

respect of BWA. The BWA spectra have also been assigned to the successful bidders which are

Aircel, Augere, Tikona, Qualcomm, Infotel and Bharti. 3G & BWA spectrum would enable users to

have value added services like video streaming, mobile internet access, higher & faster data

downloads.


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Manufacturing

The Indian telecom industry manufactures a vast range of telecom equipment using state-of-the-art

technology.

As per a press release by the Ministry of Communications & Information Technology, the

production of telecom equipments in value terms is expected to increase from US$ 10.87 billion

during 2008-09 to US$ 11.87 billion in 2010-2011. Favourable factors such as policy moves taken

by the Government, incentives offered, large talent pool in R&D and low labor cost can provide an

impetus to the industry. Exports increased from US$ 89.24 million in 2002-03 to US$ 3 billion in

2009-10 accounting for 26 per cent of the total equipment produced in the country and it is expected

to increase to US$ 3.33 billion in 2010-11.

Meanwhile, telecom regulator TRAI has released a consultation paper on Encouraging TelecomEquipment Manufacturing in India seeking views of stakeholders for promoting research and

development (R&D) and manufacturing of telecom equipment in the country. The consultation

paper issued on December 28, 2010 aims at discussing, debating and finalising measures for

promotion of R&D and creation of intellectual property as well as manufacture of telecom

equipment and electronic components in India.

Further, the Indian mobile handsets market continued to grow in the third quarter 2010 as well to

record a quarter-on-quarter growth of 3.6 per cent to touch 40.08 million units in the quarter,

according to market intelligence firm IDCs India Quarterly Mobile Handsets Tracker. The year

2010 is expected to end with total mobile handset sales of 155.9 million units.

The study further showed that the Finnish handset maker Nokia had the largest share of 31.5 per

cent in terms of units shipped during the third quarter of 2010. Nokia was followed by the Chinese

brand GFive in terms of unit shipments market share and Korean handset manufacturer Samsung

occupied the third slot.

According to a report by technology researcher Gartner Inc, India ranks fourth in manufacturing

telecom equipment in the Asia-Pacific (Apac) region. The country has a 5.7 per cent share of the

regions total telecom equipment production revenue of US$ 180 billion in 2009.

We expect India to move up to the third spot (after China and South Korea) with a share of 8.5 per

cent of the total (estimated) Apac telecom equipment production revenue of US$ 277 billion by

2014, Gartner said. The firm estimates Indias telecom equipment production revenue to grow at a


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CAGR of 17.1 per cent to reach US$ 22.6 billion in fiscal 2014. India will be the fastest growing

telecom equipment production market in the Apac region over the next five years, it predicts.

Rural Telephony

The rural Telephone connections have gone up from 3.6 million in 1999 to 12.3 million in March

2004 and further to 200.77 million in March 2010. Their share in the total telephones has constantly

increased from around 14 per cent in 2005 to 32.75 per cent at the end of October 2010. The rural

subscribers have grown to 243.04 million at the end of October 2010. The wireless connections

have contributed substantially to total rural telephone connections; it stands at 233.95 million in

October 2010. During 2010-11, the growth rate of rural telephones was 21.05 per cent as against

18.69 per cent of urban telephones.

The private sector has contributed to the growth of rural telephones as it provided about 84.27 percent of rural telephones during October 2010.

The government plans to connect all revenue villages in India either through landline, mobile or

WLL by February 2011. We have already connected about 96 per cent of the revenue villages. The

remaining 25,000 villages will have connectivity by February 2011, stated Mr Sachin Pilot,

Minister of State for Communications and IT.

Further, the Government, under Bharat Nirman II Programme, has envisaged providing broadband

coverage to all 250,000 Gram Panchayats by 2012.

Policy Initiatives

The government plans to formulate a comprehensive National Telecom Policy 2011 including the

recognition of Telecom as infrastructure and as an essential service, encouraging Green Telecom,

steps to accelerate migration from IPv4 to IPv6 at the earliest, release of IPv6 standards by Telecom

Engineering Centre for implementation in the country, etc., as per a press release by the Ministry of

Communications & Information Technology.

Further, the government plans to take concrete steps towards finalisation of National Broadband

Plan including strategy for implementation and initiation of steps for roll out of optical fibre.

The government has taken many proactive initiatives to facilitate the rapid growth of the Indian

telecom industry.

In the area of telecom equipment manufacturing and provision of IT-enabled services, 100per cent FDI is permitted


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No cap on the number of access providers in any service area. In 2008, 122 new UnifiedAccess Service (UAS) licences were granted to 17 companies in 22 services areas of the

country

Revised subscriber based criteria for allocation of Global System of Mobile Communication(GSM) and Code Division Multiple Access (CDMA) spectra were issued in January 2008

To provide infrastructure support for mobile services a scheme has been launched to providesupport for setting up and managing 7,436 infrastructure sites spread over 500 districts in 27

states. As on December 31, 2009, about 6,956 towers had been set up under the scheme

According to the Consolidated Foreign Direct Investment (FDI) Policy document, the FDIlimit in telecom services is 74 per cent subject to the following conditions:

This is applicable in case of Basic, Cellular, Unified Access Services, National/International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS),

Global Mobile Personal Communications Services (GMPCS) and other value added

Services

Both direct and indirect foreign investment in the licensee company shall be counted for thepurpose of FDI ceiling. Foreign Investment shall include investment by Foreign Institutional

Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency Convertible Bonds

(FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and

convertible preference shares held by foreign entity. In any case, the Indian shareholding

will not be less than 26 per cent

FDI up to 49 per cent is on the automatic route and beyond that on the government route.FDI in the licensee company/Indian promoters/investment companies including their

holding companies shall require approval of the Foreign Investment Promotion Board

(FIPB) if it has a bearing on the overall ceiling of 74 per cent. While approving the

investment proposals, FIPB shall take note that investment is not coming from countries of

concern and/or unfriendly entities

The investment approval by FIPB shall envisage the conditionality that the Company wouldadhere to licence Agreement

FDI shall be subject to laws of India and not the laws of the foreign country/countries


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Future prospect Telecom

Indian mobile (wireless telecom) subscriber base to cross 1 billion by March 2012.

Indian wireless telecom market is witnessing unprecedented growth mainly driven by cheaper

call rates, availability of low cost affordable mobile handsets and increasing purchasingpower of Indian consumer led by robust economic growth.

Since, December 2009, Indias mobile market is adding on an average 19 million new customers

every month. The trend is likely to continue in coming years as well mainly due to expansion of

mobile telephony in rural market and rising trend of having more than one mobile connection

among urban subscribers.

Moreover, presence of 14 players in highly competitive telecom market is fuelling volume growth

as each player is desperately trying to expand its market presence in order to achieve sustainable

scale.

Expansion of recently launched 3G services would also help the market to grow. However,

majority of 3G additions are expected to come as upgrade of 2G connection with concentration in

urban areas.

Continuing recent trend, rural markets would continue to outperform urban areas in coming

years. Under penetration of rural markets, improving quality of life in rural areas and rising

awareness of rural customer coupled with initiatives from the Indian government to increase

penetration of communication services in rural areas are key drivers for the market.

As a result, Indias wireless subscriber base would cross 1 billion by March 2012 from 771

million in January 2011. This would translate into83% of overall wireless tele-density.

Out of 1 billion mobile subscribers, urban market would constitute approximately630 million

customers with 175% wireless tele-density while rural market would expand to about 370

million subscribers with 45% wireless tele-density


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MTNL

History

of

Mahanagar Telephone Nigam Limited(MTNL)

From 1st April 1943, the control of the Telephone system in Calcutta, Madras(Chennai )and

Bombay which is now known as (Mumbai) was taken over directly by the Indian Posts and

Telegraphs Deptt. In 1985, Indian P & T was bifurcated and the control of Telephone has been

transferred to DOT (Department Of Telecom.)

MTNL was set up on 28th February, 1986 by the Government of India to upgrade the quality of

telecom services, expand the telecom network, introduce new services and to raise revenue for

telecom development needs of India's key metros . Delhi, the political capital and Mumbai, the

business capital of India. and also the telecommunications board of the Department of

Telecommunication. The DOT (Department of Telecom) services transferred all its assets in these

two circles to MTNL.

MTNL incorporated as a Public Limited Company under the Companies Act, 1956.

MTNL has been set up to take over the management, control and operation of Delhi Telephone

District (Excluding public telegraph service) and Mumbai Telephone District of the Department of

Telecommunications and to plan, establish, develop, provide, operate and maintain all types of

telecommunication services including Telephone, telex, wireless, data communication, telemetric

and other like forms of communication. MTNL has been licensed to operate cellular services in

National Capital Region (NCR) of Delhi (including its four satellite towns of Ghaziabad, NOIDA,

Faridabad & Gurgaon) and Mumbai (including Navi Mumbai & Thane).

MTNL Mumbai currently provides an almost complete spectrum of telecom services like Basic

telephones, Mobile Cellular services ISDN lines, leased lines etc. There are 124 telephone

exchanges in Mumbai serving 957 sq Km of the city, with an installed capacity of over 2 million

lines. There are also 41,491 public call offices in Mumbai.


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MTNL being a service organization is reaching out to its customers with a customer-focused

strategy for better information about customer profiles. MTNL has recognized that IT is the key to

future business success.

In the past 23 years, the company has taken rapid strides to emerge as India's leading and one of

Asia's largest telecom operating companies. Besides having a strong financial base, MTNL has

achieved a base subscriber of8.06 million as on 31st

March 2009.The company has also been in the

forefront of technology induction by converting 100% of its telephone exchange network into the

state-of-the-art digital mode. MTNL has became 100% electronic.

The Govt. of India currently holds56.25% stake in the company.

MTNL shares are traded in all of the stock exchanges in the country.

MTNL got listed at New York Stock Exchange on 06/11/2001, One more connection that brings

more transparency in its operation.

In 2002-2003 TRAI adjudged MTNL as "Best Telecom Service Provider" and 2003-2004 MTNL

becomes No 1 Internet service provider in Delhi and Mumbai.

June 2009 MTNL is the first telecom company in Mumbai and Delhi to introduce the3G MobileInternet Service in the market which will offer speeds up to 3.6Mbps and 7.2 MBPS, the data

upload speeds will be up to 384 Kbps. The deployment of the 3G Mobile Internet Service by

MTNL supports the operators leadership in the competitive market of Mumbai.


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MTNL VISION

Vision for Tomorrow

Become a total solution provider company and to provide world class telecom service ataffordable price.

Become a global telecom company and to find a place in the Fortune 500 companies. Enter into and expand new services viz. Long distances, Cellular mobile, Internet and IN

services and development of telecom software.

Become the largest provider of private networks and leased lines.Venture into other areas in India and abroad on the strength of our core competency.

Mission Statement

To remain market leader in providing world class Telecom and IT related services and to become a

global player.

The Main objectives and aims of MTNL.

(1) To upgrade the quality of telecom services

(2) To expand telecom

(3) To raise necessary financial resources

(4) To provide new telecommunication services, particularly needed by the business community

and public administration such as Cellular Mobile Radio Telephone, Radio Paging, Facsimile

Videotex, Teletex, Electronic Mail etc.

(5) To invest in Human Resource Development

(6) To organize and dovetail the training programs.

(7)To fund R&D projects which will help MTNL in introducing technology, understanding

customer needs, trying out and indigenizing new technologies.

(8) To diversify in other areas for providing telecom services at national and international levels.

(9) To provide latest technology and services to the customers.


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MTNL Various Services

1. Internet Services

Internet for all Global Roaming Virtual Private network Premium Internet Service E-commerce enabling services, by setting up of Payment Gateway & Certification Gateway

Unified Messaging

2. Broadband Internet Access services

ADSL Cable TV, through strategic alliance

3. Mobile Internet services

Internet Services via Mobile phone with up to 9.6 Kbps bandwidth E-commerce Global Roaming High speed Mobile Internet services

4. IP based Voice services.

5. IP Services in PSTN

Call waiting Internet Busy Call Competition Internet Busy

6. International Gateway Leasing Services

7. Internet Exchange Connectivity Services

8. Expansion of Managed leased line data Services


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9. ATM Services

LAN Emulation ATM Bearer Service High speed video conferencing Distance Learning & Telemedicine Bandwidth on demand Video on Demand

As the environment changes towards the increasing and unrestricted competitiveness, MTNL is

geared up with the new challenges ahead and entered as the third mobile service provider in the

name MTNL Launched its GSM Service under the Brand Name in Mumbai using GSM

900 / 1800 MHz band technology on 27th February, 2001 and Prepaid Service under the Brand

Name of has been launched simultaneously in Mumbai & Delhi on 14/01/2002.

MTNL's & services are very popular among Mumbaikars and there has been an

ever growing demand for these services. MTNL growth in GSM has been significant during recent

past and they poised for big jump in this segment. MTNL have started unique loyalty scheme for

MTNL customers where they are offering free Trump Mobile connection to all existing MTNL

customers. They are currently focusing on providing more and more value added service to our

mobile customers. MTNL has re- branded GPRS/EDGE services as MTNL Mobile Internet

service where users can send/receive emails and browse the internet along with a host of other

features.

However DoT is all set to play pro-government and wants to give a headway to BSNL,

MTNL to offer high-value 3G services like video calls, music downloads and games.

MTNL introduce the 3G Mobile Internet Service in the market and launched 3G HSDPA (High

Speed Down link Packet Access) card will support data download speeds which will offer a speeds

up to 3.6MBPS and 7.2 MBPS, the data upload speeds will be up to 384 Kbps. MTNL has the Data

services for residential and enterprise customers of its and GSM Mobile service

in Mumbai and Delhi.


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Mahanagar Telephone Nigam Ltd wants to use its upgraded network to offer data services first to

its subscribers. It is a up gradation of the MTNL existing network from 2G to 2.5G to 2.75G and

now finally with 3G. MTNL is assisted by Motorola in the network upgrade.

MTNL would use 3G spectrum to offer enriched voice calls and voice based services since value

added services (VAS) provision would make them incur huge expenses. Currently, VAS

contributes 9% on an average to telecom operators revenues.The VAS industry has recorded

revenue of Rs 6,000 crore, an increase of 31.12% in FY 2008-09 from Rs 4,576 crore in FY

2007-08.

MTNL wants its customers to get a feel of 3G's capabilities. There is a commercial tariff plan

announced, and the registration has started after the commercial launch in June 09

MTNL 3G HSDPA service comes at Rs.149 per month with Free Data Usage of 60 MB.The new

Prepaid or Postpaid customers have to buy a new HSDPA Trump/Dolphin SIM starter kit. The

MRP of this SIM kit is Rs.300. The normal SIM kit life cycle as applicable to Trump customers

will be applicable to HSDPA Prepaid SIM kit also. Presently MTNL 3G HSDPA network of

Mumbai is available in Cuffeparade, Fountain, Cooperage, City , Mazagaon, Mandvi, Worli and

Dadar areas. 3G Network is also available from Prabhadevi to Mulund on Eastern Express Highway

andPrabhadevi to Airport on Western Express Highway of Mumbai. The network is being upgraded

every day by addition of new towers and will cover entire Mumbai in a phased manner. The details

of upgrading of network will be conveyed regularly by SMS to customers


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Area of operations of MTNL Mumba


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SWOT ANALYSIS

Strength :

1. High on cash and established infrastructure2. Enjoys large consumer base in New Delhi, Mumbai3. Being a Govt. company, it enjoys a strong reliability among

users

4. First to introduce 3G services at low prices5. Cheapest tarrif rate; Lowest international calling rates.6. Gets opportunity to be innovative first mover advantage

Weakness :

1. Poor marketing and weak implementation2. Bureaucratic organizational structure3. Lack of quality advertising4. Low brand loyalty and poor customer service

Opportunity :

1. Fast expanding cellular market2. Latest and low cost technology3. Untapped urban market4. Value added services5. Better connect with customers through ads and service centres

Threats :

1. Competitors low price offering2. Saturation point in Basic telephony service3. Mobile Number Portability


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MTNL's Subscriber Base In Wire line and Wireless Services

Jan. 11 Landline Garuda GSM TOTAL

NetAddition

in Jan. 10

Addition -

segment wiseGSM LL Garuda

Mumbai 19,17,636 1,47,929 26,73,259 47,38,824 8,766 14,188 -2,667 -2,755

Delhi 15,45,252 1,37,559 24,79,572 41,62,383 21,626 23,398 -1,506 -266

Total 34,62,888 2,85,488 51,52,831 89,01,207 30,392 37,586 -4,173 -3,021

Feb. 11 Landline Garuda GSM TOTAL

Net

Addition

in Feb. 11 Addition -segment wise

GSM LL

Garud

a

Mumbai 19,13,868 1,44,854 26,83,348 47,42,070 3,246 10,089 -3,768 -3,075

Delhi 15,44,531 1,37,398 24,95,268 41,77,197 14,814 15,696 -721 -161

Total 34,58,399 2,82,252 51,78,616 89,19,267 18,060 25,785 -4,489 -3,236

Mar. 11 Landline Garuda GSM TOTAL

Net

Addition

in Mar. 11 Addition -segment wise

GSM LL Garuda

Mumbai 19,17,537 1,42,400 26,93,496 47,53,433 11,363 10,148 3,669 -2,454

Delhi 15,46,432 1,31,344 25,05,841 41,83,617 6,420 10,573 1,901 -6,054

Total 34,63,969 2,73,744 51,99,337 89,37,050 17,783 20,721 5,570 -8,508

Apr. 11 Landline Garuda GSM TOTAL

Net

Addition

in Apr. 11 Addition -segment wise

GSM LL Garuda

Mumbai 19,13,549 1,38,692 27,03,861 47,56,102 2,669 10,365 -3,988 -3,708

Delhi 15,10,109 1,37,276 25,10,109 41,57,494 -26,123 4,268

-

36,323 5,932

Total 34,23,658 2,75,968 52,13,970 89,13,596 -23,454 14,633

-

40,311 2,224

May. 11 Landline Garuda GSM TOTAL

NetAddition

in May. 11 Addition -segment wise

GSM LL Garuda

Mumbai 19,08,747 1,36,065 27,14,373 47,59,185 3,083 10,512 -4,802 -2,627

Delhi 15,37,268 1,37,068 25,20,201 41,94,537 37,043 10,092 27,159 -208

Total 34,46,015 2,73,133 52,34,574 89,53,722 40,126 20,604 22,357 -2,835

Source: www.coai.com, Telecomtrakindia & MTNL Intranet


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A bird eye view on 3G services

3G Wireless (Definition)

3G stands for the third generation of wireless communication technology. It refers to pending

improvements in wireless data and voice communications through any of a variety of proposed

standards. The immediate goal is to raise transmission speeds from 9.5K to 2M bit/sec.

What is 3G?

A radio communications technology that will create a "bit pipe" for providing mobile access to

internet-based services. It will enhance and extend mobility in many areas of our lives.

In the near future, mobility won't be an add-on: it will become a fundamental aspect of many

services. We'll expect high-speed access to the internet, entertainment, information and electronic

commerce (e-commerce) services wherever we are - not just at our desktop computers, home PCs

or television sets.

3G services will add an invaluable mobile dimension to services that are already becoming an

integral part of modern business life: Internet and Intranet access, video-conferencing, and

interactive application sharing

Introduction into 3G

Mobile telephony allowed us to talk on the move. The internet turned raw data into helpful services

that people found easy to use. Now, these two technologies are converging to create third

generation mobile services.

In simple terms, third generation (3G) services combine high speed mobile access with Internet

Protocol (IP)-based services. But this doesnt just mean fast mobile connection to the world wide

web. Rather, whole new ways to communicate, access information, conduct business, learn and be

entertained - liberated from slow, cumbersome equipment and immovable points of access.


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Distinguish between 2G, 2.5G and 3G

Features 2 G 2.5 G 3 G

Phone calls/fax Global roaming

Send/receive large

email messages

Speed 10 kb/sec 64-144 kb/sec 144KB-2MB/sec

- High-speed Web Navigation/maps Videoconferencing TV streaming

Electronic agenda meeting reminder Voice mail Time to download 3 mins

mp3 song

31-40 mins 6-9 mins 11sec-1.5 min

What will 3G mean to users?

With access to any service anywhere, anytime, from one terminal, the old boundaries between

communication, information, media and entertainment will disappear. Services will truly converge.

"Mobility" will be offered with many services that we currently regard as "fixed" indeed, Mobile

operators believes that mobility will become the norm for many communication services. Well be

able to make video calls to the office and surf the internet, or play interactive games with friends at

home - wherever we may be.

But 3G is not just about applications that require high speed data rates. Its about convienience and

speed of access.


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3G: what's new? 3G is designed to deliver:

A wide range of market-focused applications

Long-term market-driven creativity, an innovative value chain

and real user benefits, driving genuine market demand

Advanced, lightweight, easy-to-use terminals with intuitive

interfaces Instant, real-time multimedia communications

Global mobility and roaming

A wide range of vendors and operators, offering choice,

competition and affordability

High-speed e-mail and Internet access

Advantage of 3G

3G mobile service supports high data rate hence it makes feasible following services since:

Video calling- Customers can watch and talk simultaneously using the 3G mobile services of

MTNL as if they are making face to face conversation.

Internet connectivity - For smartphones and laptop. The customer can have the HSDPA data card

with MTNL 3G USIM and can enjoy the broadband like speed in 3G coverage area.

.

Remote Video Monitoring - The customer can monitor their office place or production site while

sitting at other place using this services simply using your mobile set. Elders in the family or

Children at home can also be taken care by using this service.

Multimedia services- such as sharing of digital photos and movies via wireless means

Videos and music downloads


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Real-time multiplayer gaming

Enhanced emergency and location-based services

Low-latency push-to-talk and push-to-video message services

Mobile email

"Very few people are now using personalized radio services on 3G as they are not aware of it.

With personalization of radio, the mobile phone can become 'poor man's I-pod',"

The user can use the mobile device for a wide variety of value added services such as credit cards,

access control, medical services, data terminal, voice terminal, work tool, photo cameras,

membership cards, financial management, travel tickets, funds transfer and location-based services

such as tracking family, children and vehicles.

3G Jadoo TARIFFS IN Mumbai

Prepaid Tariffs

3G Video Call Plans followed by Data plan

SIM KIT

SIM 10 with FRC 91

SIM 10 with FRC

145

SIM 10 with FRC

301

SIM 10 with FRC

53

SIM 10 with FRC

62SIM 75

MTNL (Mumbai & Delhi) 1p/ 2 sec 20p/min 90p/min

Other Local 1p/sec 50p/min 90p/min

STD 1p/sec 75 p/min Rs 1.30/min

ISD Rs 30/ min


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3G Prepaid Combo Pack

MRP Rs 298

Talktime Rs 250

Free SMS 250 (Local & National)

Free Data 125 MB

Validity for Free SMS & Data 30 days

3G Data Packs 3G 99 3G 2503G

450

3G

7503G 1650 3G 2500 3G 4500

MRP Rs 99 Rs 250 Rs

450

Rs

750Rs 1650 Rs 2500 Rs 4500

Free Data130

MB

500

MB1 GB 2 GB Unlimited Unlimited Unlimite

Free Talk Value Rs 12 Rs 14 Rs 16 Rs 18 96p Rs 20 98p

Free Video calls to Local

MTNL Nil 25 min

50

min

75

min Nil 150 min Nil

Validity30

days

30

days

30

days

30

days30 days 60 days 180 days


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Postpaid Tariffs

3G Video Call Plans

Local/STD/ISD voice calls and SMS As per the existingDolphin tariff plan

Video Call Rates

Local Video calls

To MTNL Network Rs 0.60/min

To other local Rs 0.90/min

STD Video calls Rs 0.90/min

ISD Video Calls Rs 30/min

Data Charges (local and roaming) 1p/10 KB

3G Data Plans

3G Data Plans3G 3G 993G

2503G 450 3G 7503G 1650 3G 2500 3G 4500

Fixed monthly charges(Rs.) 99 250 450 750 1650 2500 4500

Free Data Usage130

MB

500

MB1 GB 2 GB Unlimited Unlimited Unlimited

Free Local Video Calls (Own

N/W)Nil 50 min.

100

min.

150

min.Nil 300 min. Nil

Validity30

days30 days 30 days 30 days 30 days 60 days 180 days
http://mtnlmumbai.in/index.php/mobile/gsm-services/gsm-postpaidhttp://mtnlmumbai.in/index.php/mobile/gsm-services/gsm-postpaidhttp://mtnlmumbai.in/index.php/mobile/gsm-services/gsm-postpaidhttp://mtnlmumbai.in/index.php/mobile/gsm-services/gsm-postpaid


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Overview on Competition

Airtel 3G

Bharti Airtel Limited is a leading global telecommunications company with operations in 19

countries across Asia and Africa. The company offers mobile voice & data services, fixed line,

high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national &

international long distance services to carriers. Bharti airtel has been ranked among the six best

performing technology companies in the world by BusinessWeek. Bharti airtel had over 211

million customers across its operations at the end of January 2011

On May 18, 2010, 3G

spectrum auction was completed and Airtel will have to pay the Indian government12,295 crore (US$2.74 billion) for spectrum in 13 circles,

the most amount spent by an operator in this auction. On 20

September 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.

On January 24, 2011, Airtel launched 3G services inBangalore, Karnataka - its largest circle byrevenue. 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.

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.
http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Huaweihttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Huaweihttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crore


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Airtel 3G Tariffs

Pack Type Maximum Service

Charge

Prepaid Postpaid

Free

Data

Validity Data Browsing charg

Sachet

Rs.8 - 10 MB 1 day Post expiry of free data

usage, browsing charges

of 30p/20KB will applyRs 61 - 65 MB 3 days

Rs.41 - 30 min 1 day

Post expiry of free data


of Rs3/min will apply

Standard

Rs.101 Rs.100 100 MB 30 days

Post expiry of free data


of 30p/20KB will apply

Rs.201 Rs.200 250 MB 30 days

Rs.450 Rs.450 600 MB 30 days

Rs.750 Rs.750 2 GB 30 days

FlexiShield Rs.675 Rs.675 1.25 GB

After 1.25GB, VBC of 2p/100KB upto a max shield

(amount) of Rs 2000. Post hitting the shield value, enjoy

free unlimited browsing at 20Kbps speed, validity 30 day

Volume Based Charging Packs

3G Value Pack

Rs.18 - 0 20 days 15p/20KB

- Rs.20 0 30 days 15p/20KB

Pay as you go 0 0 0 - 30p/20KB

Video Call 5p/sec , valid on Local, STD & Roaming


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Vodafone 3G

Vodafone Essar, formerly Hutchison Essar, is a cellular operator in India that covers 23 telecom

circles in India. It is based in Mumbai. Joined the 3G Club along with Airtel, Aircel, Tata Docomo

and BSNL, India's second largest telecom provider - Vodafone -

had announced the launch of its 3G services in India .

Vodafone announced various 3G plans according to the needs of

the users. Vodafone 3G services would be available for both pre-

paid and post-paid customers. The existing Vodafone users can

avail the 3G services by activating it through a 3G compatible

phone.

Vodafone 3G services will offer Mobile TV, video calls, web

browsing through computers or laptops, high-speed downloading

etc. Vodafone claimed that video calls on Vodafone 3G network

does not use data channels rather accesses voice channels. Thus, it would be more beneficial for

customers as their bills will be according to the number of minutes spoken multiplied by the rate per

minute.

List Of Vodafone 3G enabled States

Mumbai

Delhi & NCR

Kolkata

Gujarat

Chennai

Maharashtra and Goa (except Mumbai)

Tamil Nadu (except Chennai

UP(E)

West Bengal (except Kolkata)

Haryana

Andhra Pradesh

West Bengal (except Kolkata)

Haryana

Kerala

Andhra Pradesh
http://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mobile_network_operator


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Vodafone 3G Tariffs

Mobile Internet Plans

Recharge Amount Free Usage(MB) Validity (Days)

102 100 30

376 500 30

850 3 GB 30

1250 5 GB 30

500 500 MB + 500 (Local + STD) Mins + 500 SMS 30

997 1000 MB + 1000 (Local + STD) Mins + 1000 SMS 30

Mobile Broadband Plans

Recharge Amount Free Usage (MB) Validity (Days)

650 1 GB 30

855 3 GB 30

1255 5 GB 30

3255 6 GB 180

4250 18 GB 180

6250 30 GB 180


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RELIANCE 3G

Reliance Communications Limited (commonly called RCOM) is a major Indian

telecommunication company headquartered inNavi Mumbai, India. It is the 16th largest operator in

the world with more than 128 million subscribers. RCOM, founded byDhirubhai H Ambani (1932

2002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil

Dhirubhai Ambani Group currently has anet worth in excess of 64,000 crore (US$13.6 billion),

cash flows of 13,000 crore ($2.8 billion), and anet profit of 8,400 crore ($1.8 billion).

The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National StockExchange Limited. The Global Depository Receipts and Foreign Currency Convertible Bonds are

listed

onLuxembourg Stock Exchange and Singapore Stock Exchange respectively.

On 19 May 2010, the 3G spectrum auction in India ended. Reliance Communications paid

5864.29 crores for spectrum in 13 circles. On 5 November 2010, RCom became the

second private sector telecom company (fourth overall) to launch 3G services in India, with a 4 city

launch. On 11 June 2010, the broadband wireless access (BWA) spectrum auction in India ended.

However, RCom said that it exited the broadband wireless access (BWA) auction a week before,

after auction prices significantly exceeded its business case estimates. They are planning to focus onbroadband wireless through 3G-ready pan India CDMA. RCOM has 3G spectrum for 13 circles.

RCOM also said that they prefer LTE standard offering a single evolution path for

both, CDMA & GSM networks, and that the WiMAX ecosystem has weakened after WiMAX

operators like Clearwire and Yotamoved to LTE.
http://en.wikipedia.org/wiki/Navi_Mumbaihttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Dhirubhai_Ambanihttp://en.wikipedia.org/wiki/Net_worthhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Net_profithttp://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Global_Depository_Receipthttp://en.wikipedia.org/wiki/Luxembourg_Stock_Exchangehttp://en.wikipedia.org/wiki/Singapore_Stock_Exchangehttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/3GPP_Long_Term_Evolutionhttp://en.wikipedia.org/wiki/3GPP_Long_Term_Evolutionhttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/WiMAXhttp://en.wikipedia.org/wiki/WiMAXhttp://en.wikipedia.org/wiki/Clearwirehttp://en.wikipedia.org/wiki/Yotahttp://en.wikipedia.org/wiki/Yotahttp://en.wikipedia.org/wiki/Clearwirehttp://en.wikipedia.org/wiki/WiMAXhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/3GPP_Long_Term_Evolutionhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Singapore_Stock_Exchangehttp://en.wikipedia.org/wiki/Luxembourg_Stock_Exchangehttp://en.wikipedia.org/wiki/Global_Depository_Receipthttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Net_profithttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Net_worthhttp://en.wikipedia.org/wiki/Dhirubhai_Ambanihttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Navi_Mumbai


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Reliance 3G tariffs

Reliance 3G Basic Monthly Data Plans (Post paidPrepaid)

MRP Free Data Usage (Home & Roam)

Rs. 100 100 MB

Rs. 399 500 MB

Rs. 649 1 GB

Rs. 899 3 GB

Rs. 1499 10 GB

Rs. 2100 21 GB

Default Data Charges or Pay As you Go 10p/10 KB up to first 50 Mb and after that 1p/10 KB


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Price War


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Project Proposal

1. NameVikas Shere (Div A Roll No 52)2. Contact no -98675713833. Company NameMTNL4. Date of Joining -- 02/ 05 / 20115. Name of our Project Guide in the companyMr. K.P. Ravindra6. Title of the ProjectResearch on existing 3G market and Penetration of MTNL 3G

JADOO

7. Objectivea. To understand The 3G offerings of MTNL.b. Find out the Market Penetration of MTNL 3G Services.c. Measurement of Awareness Level of MTNL 3G Offerings.d. Competitive Analysis of entire 3G Market.e. To examine the perception level of people towards different brand in Wireless Internet

Services.

f. Brand tracking and Brand Awareness for MTNL in regard to the competition in the Market.


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Structure

Step 1

Worked on the objective and the approach for the project. Also researched about the other brands of

the 3G market, their pricing and promotions strategy.

Step 2

After taking a birds eye view about the 3G market our next step was to decide on the structure of

the survey to be taken. The main mission of our survey was to understand the market penetration of

3G services and the reason for their low usage. We as a team went through some books to

understand in brief the steps to be taken to conduct the market research which helped us to

understand the topic more appropriately.

(Bibliography)

Business Research Methods by William G. Zikmund (Indian Edition) Research Methodology (Methods and technique) by C.R.Kothari (Second Edition) Research Methodology By Micheal Vaz (Mcom Part 2)

Step 3

Prepared a Questionnaire for the survey and conducted a dry run or pilot survey with various

questionnaires that were prepared by our team members. The first step of Pilot study was done with

the help of friends and relatives which helped us to understand which aspects of the research should

be concentrated more which ultimately gave us a fair view about our final questionnaire.

Step 4

We sent the results of the pilot study and the format of our final questionnaire to our

Managers (Ravindra Sir ) for approval. They suggested some changes which were taken into

consideration and the final questionnaire was made.

We all got divided into different teams to conduct Survey of the customers who are MTNL

users and of Random Customers who uses other service Providers service.


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After field work of conducting survey all members of our team had brain storming and figured out

all the strategies to be used for data analysis and presentation.

METHODOLOGY

Introduction

Customer satisfaction measurement is a systematic process for collecting customer data (e.g.

surveys, audits, etc.), analyzing these data to make it into actionable information, driving the results

throughout an organization, and implementing satisfaction improvement plan. Thus, customer

satisfaction measurement (CSM) is a management information system that continuously captures

the voice of the customer through the assessment of performance from the customers point of view

Such measurement could be made by using any of the following methods:

Surveys Formal and informal feedback from customers Use of customer account data Complaints

Customer satisfaction measurement will enable you to

Understand how customers perceive your organization and whether your performancemeets their expectation.

Identify PFIs (priorities for improvement) areas where improvement in performance willproduce the greatest gain in customer satisfaction

Set goals for service improvement and monitor progress against a customer satisfactionindex

Benchmark your performance against other organization Increase profits through improved customer loyalty and goodwill

The organizations process for requesting, measuring and monitoring feedback of customer

satisfaction and dissatisfaction should provide information on continual basis. It should address


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conformance to requirements, meeting needs and expectations of customers, as well as price and

delivery of product.

The methodology used in this project is been refine and to generate a detailed database on thecustomer satisfaction level for the brandMTNL 3G Jadoo.

Determine Survey Objectives

Exploratory Research

Plan Sampling and Data collection

Design of Questionnaire

Actual Survey

Data Refining and Analysis

Recommendation and Implementation Plan


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Determine Survey Objectives

In our first meeting with our respected supervisor MR. Ravindra, the problem areas of MTNL 3G

Jadoo were discussed. This was followed by a detailed study of the 3G market and preparing the

questionnaire for existing customers of MTNL and non existing customers

We as a team did a full-fledged study on the problem which are as follows:

The usage of data per customer was constantly low or even falling in many cases. India being a price sensitive market the number of new users in our portfolio was not

increasing at a good rate.

So taking the above points into consideration we came up with the following objectives:

Understand the current scenario of 3G service in India. To examine the behavior of MTNLs current customers , regarding the usage pattern of

MTNL 3G Jadoo in their routine life.

Primary reason for using 3G. How MTNL can prepare marketing plans to serve the customers more appropriately. Bottleneck for MTNL 3G services

Exploratory Research

It included following steps

Survey design:The study is a cross sectional study because the data were collected at a single point of time. For

the purpose of present study a related sample of population was selected on the basis of

convenience and judgmental sampling

Sample Size and DesignA sample of 75 people was taken from the customer data base who had subscribed to the MTNL

services and sample of 225 people who uses any mobile services. Total sample size was 300

Research Instrument:


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The research is carried out through self-administered questionnaires. The questions included

were open ended, dichotomous and offered multiple choices.

Design of Questionnaire

The questionnaire was prepared for two Purposes.

1. For interviewing 75 MTNL users.2. For interviewing 225 Random Users from the market.

Firstly we contacted our sample size via phone for an appointment to conduct a personal interview

for the survey.If that wasnt possible because of any limitations we conduc ted a telephonicinterview to understand the satisfaction level as well as usage pattern of customers.

Secondly we collected samples by visiting to malls, shopping areas, caf coffee day etc. to get 225

random sample in areas of south Mumbai, Suburbs and Central Mumbaito find out the awareness

of MTNL 3G jadoos most affordable 3G rates as compared to other operators in Mumbai.

Data Refining and Analysis

Data refining and data analysis being the key area of any survey so it becomes a priority of any

manager to have a sound technique both mathematical and graphical to come up with a concrete

findings.

The data was analyzed by using suitable & mathematical techniques. The technique that we have

used is bar graphs & pie charts are as follow.

Our Target Group which were of 300 users (75 MTNL user and 225 Random) can bebroadly divided into 2 category that is,

The focused group of 75 MTNL users Random Group of 225 people who can be a user of any service provider

including MTNL


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Results from the Survey:

Demography of Customers Interviewed

1. Sample Size = 75 MTNL Users


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The above graph represents the demographic data of 75 focused MTNL users. Out of 75 respondents

there were 47 males and 28 females.

There were 27 people whose age was above 40 where as 24 were from age group of 31-40, 16 from

25-30 group and only 8 belongs to 20-24 group.

Considering Monthly household income majority of people i.e. 22 people had income between 30k

to 40k where as 17 had 40k-50k, 13 belongs to 20k-30k group, 13 from above 50K, 6 from 10k-

20k and only 4 people had income below 10k.


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2. Sample Size = 225 Random Users


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The above graph represents the demographic data of 225 Random users. Out of 225 respondents

there were 132 males and 93 females.

There were 26 people whose age was above 40 where as 36 were from age group of 31-40, 72 from

25-30 group and only 91 belongs to 20-24 group.

Considering Monthly household income majority of people i.e. 75 people had income between 30k

to 40k where as 41 had 40k-50k, 46 belongs to 20k-30k group, 21 from above 50K, 34 from 10k-

20k and only 8 people had income below 10k.

Most preferred parameter in mobile internet - Speed

Majority of the users want a high speed internet access on their phone. There were 2 questions that

led us to this conclusion.

What according to you is a satisfactory speed for mobile internet?


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What do you look for in a mobile internet connection?

majority of users voted for speed as the first preference among Speed, Affordability and Reliability.

The answers to these questions indicated that users were inclined for a faster internet service.

A faster speed comes with an extra price however, users were apprehensive paying for the

expensive 3G service.


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Limited 3G users

Out of 200 respondents there were only 42 respondents that

use 3G on their phone.

This was due to many factors and presumably one being thefact that 3G was officially launched by leading operators only 6

months ago.

New users are not willing to try out 3G because of its cost. Many users are satisfied with the

current GPRS/Edge plans.

Among MTNL users we found that only 9 users out of 90who use MTNL 3G.

A few concerns arises after looking at the stats:

MTNL was the first player to enter the 3G segment in

Mumbai.

MTNL has the most economical 3G services as compare to

its competitors.

Though the above 2 facts fall in favour of MTNL it still fails

to meet the mark set by new mobile operato


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Demographics

3G & SEC A relationship

Out of the very few 3G users (MTNL and non MTNL) it was interesting to observe that a vast

majority chunk of 3G users were people who belonged to SEC A. Out of the 42 respondents 35

respondents had monthly household income of more than 40 thousand.

Demographics of MTNL users

There were a total of 90 MTNL users. Mostly belonging to SEC B and SEC C. Another important

thing to note is that most of the MTNL users belonged to the age group of 35+.


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Hindrance for 3G Jadoo

3G jadoo has not been very successful and here are a few possibilities for the same.

Possibility 1: Scarcity of SEC A MTNL usersssssssss

The stats above suggest that a user belonging to SEC A is more likely to subscribe to 3G services

than a person belonging to the preceding class. However, MTNL does not have many users

belonging to SEC A which is why most of them either cannotafford it or they dont have a high end

mobile device to support 3G.

Possibility 2: Poor network.

4 out of 9 users expressed dissatisfaction for MTNL 3G jadoo. All 4 blamed it on Network issues

Possibility 3: Lack of marketing.

There were many respondents who did not even know that MTNL provides 3G services. MTNL

should strengthen their marketing strategies to build a place among the minds of people

Slow speed Network issues Expensive Other NA

0 4 0 0 170


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Findings

Out of 225 respondents there are 33% Vodafone users, 22% Airtel users where as there are6% MTNL users.

Majorly people who has monthly household income above 20000 uses internet on theirmobile phones

109 people out of 225 believes that greater than 512 kbps speed is satisfactory for mobileinternet

Around 53% people give rank 1 to speed whereas around 35% people give Rank 1 toaffordability and around 73% people gave Rank 3 to Brand value.

There are 76% people who are yet to try 3G because it is expensive, so they become thepotential customers for MTNL.

51% of respondents replied that they would like to try out MTNL 3G jadoo since it is mosteconomical.

32% of 3G jadoo users are satisfied with service where as 47% are dissatisfied withcustomer service and 31% are dissatisfied with network.

Around 90% are aware about 3G offering because of heavy marketing from Vodafone andAirtel, MTNL can capitalize on this to attract customers on the basis of speed and

affordability of MTNL 3G Jadoo.

There are 43% of respondents who are not aware about MTNL 3G Jadoos economicaltariffs


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45

Recommendations

Definition: That which recommends, or commends to favor; anything procuring, or tending to

procure, a favorable reception, or to secure acceptance and adoption; as, he brought excellent

recommendations.

After all our finding we recommended certain views as follow.

As many people do not know that MTNL provide cheapest 3G services and theywant to try out 3G, We propose MTNL to increase the awareness among people.

Most of the people feel that speed is most important then 2nd is affordability then 3rdis brand value. We suggest that MTNL should do more marketing about its speed

and affordability. Most of the people complained about network and customer services, MTNL should

provide more support to the customer complaints

MTNL should consider setting up an outlets across city to respond to customerquerys and to increase the sales.

Aggressive Marketing. Proper segmentation of customers.


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46

Suggestions for MTNL 3G jadoo

Let us take the suggestions in the order of possibilities causing hinderance.

Suggestion 1: Bring in SEC A users

MTNL has a huge customer base using MTNL triband and landline connections. Many of them

belong to SEC A. Since MTNL has a good reputation, it can draw in SEC A customers using other

MTNL services.

Suggestion 2: Improve network

MTNL should consider setting up more number of cell towers to improve its network efficiency.

Suggestion 3: Marketing

Findings suggest that speed and affordability are the most important elements that one looks for in

a mobile internet connection. Considering this, MTNL should spruce up its marketing strategies to

bring in more awareness.

Suggestion 4: Customer service

Many existing MTNL users have expressed their dissatisfaction with the customer service.

Customer complaints should be handled more effectively. Relationship centers across the city to

respond to customer concerns can be worthwhile.

Suggestion 5: Give away free SIM

MTNL is more popular and well known for fixed line phones and broadband services. The existing

users of these can be targeted by providing them a free 3G enabled SIM card.


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47

Conclusions

MTNL along with BSNL were the first players to enter the 3G segment in India. As a

government owned company they were in possession of the 3G spectrum much before the

spectrum was sold by auctioning to the private owned companies like Airtel, Vodafone, Idea etc.

Until Feb 2011 the only way a user could benefit from 3G high speed internet access was by

enrolling with MTNL. Reports however suggest that some private companies have more number

of active 3G users than MTNL. This comes as a surprise because private companies that

launched 3G services almost 2 years after MTNL have already exceeded the MTNL mark within

a matter of months.

MTNL has been considered as a poor mans choice which is why many SEC A people refrainthemselves from opting for MTNL. The 3G services are definitely economical but the existing

users find that expensive too.

Since MTNL is fortunate enough to be capable of providing 3G service in a metropolitan city it

should work towards warding away stigmas attached to it.

3G evolution (pre-4G)

The standardization of 3G evolution is progressing in both 3GPP and 3GPP2. The corresponding

specifications of 3GPP and 3GPP2 evolutions are named as LTE and UMB, respectively. 3Gevolution uses partly beyond 3G technologies to enhance the performance and to make a smooth

migration path.

A 4g network is in the pipe line, capable of speeds of 100Mbit/s while moving and 1Gbit/s

stationary. This however will not see the light of day until at least four, or even eight years time

when they have the right equipment to use it. By that stage, bandwidth will be all around us to

take advantage of. WiMAX is a telecommunications technology that provides wireless

transmission of data using a variety of transmission modes, from point-to-multipoint links to

portable and fully mobile internet access. The technology provides up to 72 Mbit/s symmetric

broadband speed without the need for cables. This makes WiMAX a technology of choice as a

backhaul for 3G, especially in a country like India where villages are far flung and isolated.


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48

ANNXURE 1

Questionnaire

1. Which mobile operator are you currently using?

2. Do you use internet on your phone?

3. Do you use internet on your laptop?

4. What do you look for in a mobile internet connection? (Give preference from 1 to 3, 1 being

the highest)

Speed Affordability Brand value

5. What according to you is a satisfactory speed for mobile internet?

128 kbps ( 30 seconds to load email inbox )



>512 kbps ( less than 5 seconds to load email inbox )

Not Sure

6. Which according to you is the best mobile internet service provider?


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49

7. Are you aware of the 3G services?

8. Have you tried or do you use 3G high speed internet on your mobile or laptop?

9. Are you Satisfied with current mobile internet services?

10. If not, then why?

11. . Are you aware that 3G jadoo from MTNL provides the most affordable 3G services?

ss12. Having come to know economical high speed 3G tariffs from MTNL would you ever want

to try out MTNL 3G Jadoo?


14. If you are using MTNL 3G Jadoo then are you satisfied with the 3G services from MTNL?



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50

Bibliography

Business Research Methods by William G. Zikmund (Indian Edition) Research Methodology (Methods and technique) by C.R.Kothari (Second Edition) Research Methodology By Michal Vaz (Mcom Part 2) www.coai.com, Telecomtrakindia & MTNL Intranet www.mtnlmumbai.in http://www.ibef.org/industry/telecommunications.aspx

******* Thank You ******
http://www.mtnlmumbai.in/http://www.mtnlmumbai.in/http://www.ibef.org/industry/telecommunications.aspxhttp://www.ibef.org/industry/telecommunications.aspxhttp://www.ibef.org/industry/telecommunications.aspxhttp://www.mtnlmumbai.in/


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MTNL 3G Final Report Part-2