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perception of youth towards various mobile service providers
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PREFACE
This project report is on the topic “youth perception towards various G S M
mobile service providers” in Agra . We used the questionnaire as a part of the
survey, play majestically roles in determining the success of a research report. I
have determined that this research report is very accurate in identified potential
problem areas.
Few years back mobile connections were not common among the youth. But with
the mobile revolution now we can find almost every student with mobile phone. It
well help telecom companies to carry on with its strength in advertisement
strategies so that existing customers remain loyal to it.
Through this research report we know that mostly the youth are satisfied with the
services provided by the different cellular companies. This research report is
always help for the knowing the youth preference towards various mobile service
provider.
1
EXECUTIVE SUMMARY
Top of the mind awareness focused on telecom companies in the city of AGRA. To
find out awareness in telecom industry in Agra. To find out which telecom
company has more awareness.
To find out where Indian telecom industry is leading from that leader companies.
It will make the telecom industry aware of its strength and weaknesses (in
advertisements, promotional campaigns etc.)So that it can compete and survive
telecom service market by focusing on that.
It will help Indian telecom industry to improve upon its weakness in deposit so that
more and more customer could be attracted towards it.
It well help telecom companies to carry on with its strength in advertisement
strategies so that existing customers remain loyal to it.
2
TABLE OF CONTENT TOPIC PAGE NO..
Acknowledgement
Preface
Executive summary
Introduction
company Profile
Scope of the study
Objective of the study
Research Methodology
Analysis of the data
Major finding
Swot Analysis
Recommendation and suggestion
Limitation of the Research
Conclusion
Bibliography
Appendix
3
INTRODUCTION
Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. India has
nearly 200 million telephone lines making it the third largest network in the world
after China and USA. With a growth rate of 45%, Indian telecom industry has the
highest growth rate in the world.
-Much of the growth in Asia Pacific Wireless Telecommunication Market is
spurred by the growth in demand in countries like India and China.
- India‘s mobile phone subscriber base is growing at a rate of 82.2%.
- China is the biggest market in Asia Pacific with a subscriber base of 48% of the
total subscribers in Asia Pacific. Compared to that India ’s share in Asia Pacific
Mobile Phone market is 6.4%. Considering the fact that India and China have
almost comparable populations, India’s low mobile penetration offers huge scope
for growth.
4
HISTORY OF INDIAN TELECOMMUNICATIONS
Started in 1851 when the first operational land lines were laid by the government
near Calcutta (seat of British power). Telephone services were introduced in India
in 1881. In 1883 telephone services were merged with the postal system. Indian
Radio Telegraph Company (IRT) was formed in 1923. After independence in
1947, all the foreign telecommunication companies were nationalized to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government's
Ministry of Communications. Telecom sector was considered as a strategic service
and the government considered it best to bring under state's control.
The first wind of reforms in telecommunications sector began to flow in 1980s
when the private sector was allowed in telecommunications equipment
manufacturing. In 1985, Department of Telecommunications (DOT) was
established. It was an exclusive provider of domestic and long-distance service that
would be its own regulator (separate from the postal system). In 1986, two wholly
government-owned companies were created: the Videsh Sanchar Nigam Limited
(VSNL) for international telecommunications and Mahanagar Telephone Nigam
Limited (MTNL) for service in metropolitan areas.
In 1990s, telecommunications sector benefited from the general opening up of the
economy. Also, examples of telecom revolution in many other countries, which
5
resulted in better quality of service and lower tariffs, led Indian policy makers to
initiate a change process finally resulting in opening up of telecom services sector
for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to
give a comprehensive roadmap for the Indian telecommunications sector. In 1997,
Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to
act as a regulator to facilitate the growth of the telecom sector. New National
Telecom Policy was adopted in 1999 and cellular services were also launched in
the same year.
Telecommunication sector in India can be divided into two segments: Fixed
Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic
services, national or domestic long distance and international long distance
services. The state operators (BSNL and MTNL), account for almost 90 per cent of
revenues from basic services. Private sector services are presently available in
selective urban areas, and collectively account for less than 5 per cent of
subscriptions. However, private services focus on the business/corporate sector,
and offer reliable, high- end services, such as leased lines, ISDN, closed user group
and videoconferencing.
Cellular services can be further divided into two categories: Global System for
Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while
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the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are the major growth
drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which along with
rental was the main source of revenue. The reduction in tariffs for airtime, national
long distance, international long distance, and handset prices has driven demand.
Classification of Telecommunication services
1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)
7
CELLULAR SERVICE
Overview
1. There are five private service operators in each area, and an incumbent state
operator. Almost 80% of the cellular subscriber base belongs to the pre-paid
segment.
2. The DoT has allowed cellular companies to buy rivals within the same
operating circle provided their combined market share did not exceed 67 per
cent. Previously, they were only allowed to buy companies outside their
circle.
Growth Drivers
Opening up of international and domestic long distance telephony services are
growth drivers in the industry. Cellular operators now get substantial revenue from
these services, and compensate them for reduction in tariffs on air time, which
along with rental was the main source of revenue. The reduction in tariffs for
airtime, national long distance, international long distance, and handset prices has
driven demand.
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The Key Players In The Telecom Market In India
Cellular Service provider:
1. BSNL
2. Airtel
3. Vodafone
4. Reliance
5. Tata indicom
6. Spice
7. Idea
Subscribers
Wireless subscribers crosses 200 million mark
Tele density reaches 21.20%
The total number of telephone subscribers has reached 250.02 million at the end of
August 2008 as compared to 241.87 million in July 2008. The overall Tele density
has increased to 21.20% in August 2008 as compared to 20.52% in July 2008.
9
In the wireless segment, 8.31 million subscribers have been added in August 2007
while 8.06 million subscribers were added in July 2007. The total wireless
subscribers (GSM, CDMA & WLL(F)) base reaches 201.29 million at the end of
August 2007.
The wireline segment subscriber base stood at 39.73 million with a decrease of
0.16 million at the end of August 2007. Circle wise wire line subscriber base of
service providers is given at following chart ..
10
Market Share of the telecom Company in India
11
BSNLNationwide fixed line & cellular operator (Excluding Delhi and Mumbai)
MTNL Local fixed line & cellular operator in Delhi and Mumbai.
Private OperatorsFixed line & cellular operator.
VSNLInternational Telecom Services Provider
Ministry of communication
Telecom Commission (Policy and executive functions)
Department of Telecommunication (DOT) Licensor
Fixed line licenseeOffering local fixed line services within circles.
Cellular LicenseeOffering local cellular mobile services.
Telecom Regulatory Authority of India (TRAI)Sets tariff rates , interconnect charges and quality standards
Telecom Dispute Settlement and Appellate Tribunal (TDSAT) Adjudicates disputes between operators, licensees, consumers.
Policy Makers
Regulators
Operators
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Overview of Telecom Industry(gsm)
What is GSM:
GSM stands for Global System for Mobile Communications. Developed in the
1980s, GSM was first deployed in 7 European countries in 1992. Operating in the
900MHz & 1.8GHz bands in Europe and the 1.9GHz PCS band in the U.S.A.,
GSM defines the entire cellular system, not just the air interface (TDMA, CDMA,
etc.). By the year 2000, there were over 250 million GSM users, which is more
than half of the world's mobile phone population.
GSM technology provides a short messaging service (SMS), which enables text
messages up to 160 characters in length to be sent to and from a GSM phone. GSM
phones also supports data transfer at 9.6 Kbps to packet networks, ISDN & POTS
users. GSM is a circuit-switched system that divides each 200 kHz channel into
eight 25 kHz time slots.
Today's second-generation GSM networks deliver high quality and secure
mobile voice and data services (such as SMS/Text Messaging) with full roaming
capabilities across the world.
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Today's GSM platform is a hugely successful wireless technology and an
unprecedented story of global achievement. In less than ten years since the first
GSM network was commercially launched, it became the world's leading and
fastest growing mobile standard, spanning over 200 countries.
Today, GSM technology is in use by more than one in six of the world's
population and it is estimated that at the end of Jan 2004 there were over 1 billion
GSM subscribers across more than 200 countries of the world.
The growth of GSM continues unabated with more than 160 million new
customers in the last 12 months. Since 1997, the number of GSM subscribers has
increased by a staggering 10 fold.
The progress hasn't stopped there. Today's GSM platform is living, growing
and evolving and already offers an expanded and feature-rich 'family' of voice and
data enabling services.
Nevertheless, it was clear there would be an escalating demand for a
technology that facilitated flexible and reliable mobile communications.
As far as GSM is concerned, it's always been a risky business getting into
the prediction game. Growth has invariably outstripped even the most incautious
speculation. However, it's safe to assume that by the end of the century GSM will
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have over 150 million customers and be a major influence across every continent
on the planet.
The future of GSM technology is happening all around us. As the
technology advances, it is essential that user demand for applications plays as
significant role in determining development as does technological potential. Just
because it can be done does not necessary mean that it should be done.
Equally important is that, in the near future, one of the keys to ensuring
GSM maintains its market position lies in the provision of advanced customer care.
It's not simply a case of attracting new customers, but holding on to them. Already
significant steps have been taken to establish consistent standards across the
networks. The aim should now be to engender a culture of customer care rather
than simply the means of responding to customer complaints. For example, it's
easy to envisage a future in which if a GSM phone is not performing, as it should,
the network's care center contacts the user and offers to replace the faulty device.
Global roaming has always been the cornerstone of GSM's success.
Users are coming to demand ubiquitous coverage and seamless mobility. For
this reason, work is already well advanced on the development of multi-band
terminals. These products will enable the user to roam freely between two,
and ultimately all three, of the 900/1800/ 1900MHz GSM-related frequencies.
Genuinely global coverage is next. A number of satellite network operators
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already have rapport their membership of the MoU, and development is
under way of terminals that integrate both GSM and satellite networks. Such
phones will operate as ordinary GSM mobiles at their usual tariffs when the
user is within a GSM coverage area. When they move out of coverage, their
calls will travel by satellite. "The advent of GSM is not seen as so significant a
factor that the traditional cellular market growth trends will alter
dramatically."
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GSM MARKET IN INDIA: ~
GSM India was the first regional interest group to be formed for a single country.
Umang Das, Spice Communications, and India currently chair it.
With a population of around 1 billion growing at roughly 1.7 per cent a year, India
is potentially one of the most exciting GSM markets in the world. After two rather
difficult years, the past 12 months have seen the region's promise beginning to
come to fruition. Much of this success can be attributed to the stabilization of the
licensing and regulatory environment.
India's telecommunications have undergone a steady liberalization since
1994 when the Indian government first sought private investment in the sector.
More significant liberalization followed in 1996 with the licensing of that has had
the most radical impact on the development of GSM services. 'The policy's mission
statement is 'affordable communications for all', There is a genuine commitment to
creating a modern and efficient communications infrastructure that takes account
of the convergence of telecom, IT and media. In addition, the policy places
significant emphasis on greater competition for both fixed and mobile services.
Competition in the mobile sector has already had a visible impact on prices
with calls currently costing less than 9 cents per minute. This means that service
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costs have fallen by 60 per cent since the first GSM networks became live in 1995.
It also helps explain why a recent Telecom Asia survey revealed that more than 70
per cent of Indian mobile subscribers felt that prices were now at a reasonable
level.
One of the challenges facing GSM operators in India is the diversity of
the coverage regions -from remote rural regions to some of the most densely
populated metropolitan areas in the world. India has more than 40 networks,
which cover the seven largest cities, over 600 towns and several thousand
villages. Such depth of coverage has required enormous investment from
India's operators. It is estimated that more than Rs150 billion had been
invested in India's GSM industry by mid-2000, a figure that is set to be
supplemented by a further Rs200 billion over the next five years.
The good news is that subscriber growth is beginning to look healthy. With
India's low PC penetration and high average Internet usage -at 14-20 hours a month
per user it is comparable to the US -the market for mobile data and m-commerce
looks extremely promising. WAP services have already been launched in the
subcontinent and the first GPRS networks are in the process of being rolled out. In
the year ahead, GSM India will work with its members to realize the potential of
early packet services in anticipation of the award of 3GSM licenses in 2003/04.
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COMPARISON BETWEEN GSM AND CDMA:~
Cellular is one of the fastest growing and most demanding
telecommunications applications. And the continuous
advancement in this technology has provided many options
to a consumer. Today, the two alternatives that face the
mobile world are - GSM and CDMA technology. First of all,
let’s comprehend the meaning and functionality aspects of
these technologies.
Global Service for Mobile Communications (GSM):~
During the 80s, when the cellular system was introduced, each nation had its
own system. As a result, a couple of problems arose. Firstly, the equipment
was limited to operate only within the boundaries of a country and secondly,
the market for mobile equipment was also limited. In order to overcome these
problems, the conference of European Posts and Telecommunications (CEPT)
formed the Group Special Mobile (GSM) to create a common European
mobile telephone standard.
19
The GSM later came to be known as Global Service for Mobile
communications (GSM). At the end of 1997, GSM was made available in more
than 100 countries. Today it has Become the global standard in Europe and Asia.
GSM operates in 900-MHz – 1800MHz. If one has to connect to the specific
service provider in different countries, GSM-users simply need to switch
Subscriber Identification Module (SIM) cards. As per GSM technology, a mobile
unit logs on to the network after being switched on. The mobile unit tries to contact
a nearby BTS, which then transmits all the frequencies of the neighboring BTS’ to
the mobile unit, which identifies the frequency on which the reception is the best
and passes on the information to the BTS.
The BTS then transmits the information to the BSC which has the deciding
power as to which BTS should the mobile unit be assigned.
Code Division Multiple Access (CDMA):~
Developed by Qualcomm for the US Military, Code Division Multiple Access is a
system that enables many users to share the same frequency band at the same time.
CDMA is a spread spectrum technology whereby multiple users share the same
time and frequency allocation in a given band. Each speech signal is modulated
(spread) across an entire band. The respective receiver demodulates and interprets
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the signal using relevant code that is embedded in the signal. The final signal
contains only the relevant conversation.
The CDMA based mobile technology was introduced in India to provide
WLL services, as the GSM was the choice for full mobility. CDMA based WLL
operators were given license of operation as fixed line operators. As CDMA can
very well connect large geographical area, WLL operators were given the rights to
provide "limited mobility" whereby a WLL operator could allow network coverage
to the boundary of a Short Distance Charging Area (SDCA).
21
22
Differences:~
While TDMA and FDMA are the types of multiplexing in GSM, CDMA works
on spread spectrum. However the bandwidth available is same for both the
technologies, which is 800, 1800 and 1900 MHz.
While GSM cannot add more than a fixed number of subscribers in a cell, the
capacity of the system is not rigid in CDMA.
The biggest advantage with GSM is its widespread network in Europe and Asia,
whereas CDMA is predominant in US and South Korea.
The user of GSM is enabled an easy international roaming. As far as SMS,
gaming and Internet are concerned, both GSM and CDMA score an equal point.
GSM has already set a standard in India. Being a patented technology, all
CDMA equipment’s and handsets require a royalty to be paid.
The Choice: is determined by the service used by those whom you call most
frequently. When mobile telephony was introduced in India, CDMA was an
emerging technology. Hence GSM was the only choice. But today’s scenario
calls for an evaluation of the alternatives.
23
COMPANY PROFILE
Bharti Airtel is one of India's leading private sector providers of April 30, 2008,
consisting of 64,370,434 GSM mobile and 2,319,509 Bharti Telemedia
subscribers.
telecommunications services based on an aggregate of 66,689,943 customers as on
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBU’s) - mobile services, telemedia services (ATS) & enterprise
services. The mobile services group provides GSM mobile services across India in
23 telecom circles, while the ATS business group provides broadband & telephone
services in 94 cities. The enterprise services group has two sub-units - carriers
(long distance services) and services to corporates. All these services are provided
under the Airtel brand.
Company shares are listed on The Stock Exchange, Mumbai (BSE) and The
National Stock Exchange of India Limited (NSE).
24
The company has a strategic alliance with SingTel. The investment made by
SingTel is one of the largest investments made in the world outside Singapore, in
the company.
The company’s mobile network equipment partners include Ericsson and Nokia. In
the case of the broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others. The
Company also has an information technology alliance with IBM for its group-wide
information technology requirements and with Nortel for call center technology
requirements. The call center operations for the mobile services have been
outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis
25
MILESTONE OF COMPANY
1 Mobile phone operator, Bharti Airtel, became the first Indian telecom
company to serve 50 million customers last month, and is now the world’s
tenth largest wireless carrier.
2 Bharti has doubled its user base in the past 14 months alone, and hopes to
reach 100 million subscribers by 2010, according to company executives.
3 “Our next 50 million will largely come from rural India as our plan is to reach
5,200 census towns and over five lakh villages, covering 96 per cent of the
Indian population,” said Bharti Airtel president and CEO, Manoj Kohli, at a
news conference this week.
4 Bharti Airtel, India’s leading telecommunication services provider, today
announced that it had crossed the 50 million customer mark. With this, Bharti
Airtel has achieved the distinction of becoming the fastest private telecom
company in world to achieve this landmark in a single country - within 143
months of start of operations. The 50 million customer base covers mobile as
well as broadband & telephone customers.
5 Commenting on this major global landmark, Mr. Akhil Gupta, Joint Managing
Director, Bharti Airtel said, “We are delighted to have achieved this major
26
landmark, which puts Bharti Airtel amongst the top telecom companies in the
world. It underlines the strength of our unique business model and our vision
to provide affordable services like lifetime prepaid to customers across the
length and breadth of the country. I would like to thank our partners for
having shared our vision. This milestone highlights the emergence of India as
one of the top telecom markets in the world and we are proud to have been at
the forefront of this growth. Going forward, we believe this growth momentum
will remain intact and we are gearing towards the 100 million customers
mark.”
6 Bharti Airtel crossed the 10 million customer mark in November 2004. In July
last year, it crossed the 25 million customer mark.
7 The company added the next 25 million customers in just 14 months. This is
amongst the fastest rate of customer additions by any telecom company in the
world.
8 Mr. Manoj Kohli, President & CEO, Bharti Airtel added, “This is a very proud
moment for us and I would like to thank our 50 million customers for
believing in Airtel. It is a tribute to our commitment to provide best-in-class
services to our customers and lead the market with exciting innovations. We
are committed to create a world-class organization and benchmark it with the
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best in the world. As the market gets ready for the next wave of growth, we are
committed to expanding our telecom networks wider and deeper across the
country and partner India’s growth story.”
9 In the mobile business, Bharti Airtel plans to make considerable investments
in Network expansion to establish presence in all census towns and over
500,000 villages across India by 2010, thereby covering 95% of the country’s
total population. The company’s strategic focus will be on further
strengthening the Airtel brand through best-in-class customer service, which is
backed by wide national distribution.
10 In the Enterprise business, Bharti Airtel will invest substantially in the long
distance business to achieve the scale of a global carrier within next 2-3 years.
It is also strengthening the corporate business towards becoming a preferred
managed services partner for the top 2000 corporations. In Broadband &
Telephone SBU, Bharti Airtel will initiate large-scale deployments of
broadband network infrastructure in 94 towns, with a sharp focus on the home
and SME segments. It is readying to offer triple play to its customers with the
launch of its IPTV service.
28
BHARTI TELE-VENTURES
Bharti Tele-Ventures is one of India's leading private sector providers of
telecommunications services based on an aggregate of 28,692627 customers as on
September 30, 2011, consisting of 27,061,349 GSM mobile and 1,631,278
broadband & telephone customers
The businesses at Bharti Tele-Ventures have been structured into three individual
strategic units (SBU’s) –
1. mobile services
2. broadband and telephone services (B&T)
3. enterprise services
The Mobile services group provides GSM mobile services across India in 23
telecom circles, while B&T business group provides broadband & telephone
services in 94 cities. The Enterprise Services group has two sub-units – carriers
(long distance services) and services top corporates. All these services are provided
under the Airtel brand.
29
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services. Established in
1976, Bharti has been a pioneering force in the telecom sector with many firsts and
innovations to its credit.
Bharti provides a range of telecom services, which include Cellular, Basic,
Internet and recently introduced National Long Distance. Bharti also manufactures
and exports telephone terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first company to
export its products to the USA.
Bharti is the leading cellular service provider, with a footprint in 16 states covering
all four metros. It has over 12 million satisfied customers
Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest
brands, to becoming the largest manufacturer and exporter of world class telecom
terminals under its 'Beetel' brand, Bharti has created a significant position for itself
in the global telecommunications sector. Bharti Tele-Ventures is today
acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has
over 12 million customers across the length and breadth of India.
30
While a joint venture with TeleTech Inc., USA marked Bharti’s successful foray
into the Customer Management Services business, Bharti Enterprises’ dynamic
diversification has continued with the company venturing into telecom software
development. Recently, Bharti has successfully launched an international venture
with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri
products exclusively to markets in Europe and USA
"What other operators have achieved in one to two years, Bharti has done in
just over a month. In July 2002, one out of every two people buying a mobile
across India chose AirTel. We are truly proud to be spearheading the mobile
revolution in the country."
- Sunil Bharti Mittal, Chairman, Bharti Tele-Ventures in 2002
Vision
BY 2010 AIRTEL WILL BE THE MOST ADMIRED BRAND IN INDIA:
LOVED BY MORE CUSTOMERS.
TARGETED BY TOP TALENT.
31
BENCHMARKED BY MORE BUSINESS.
Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest
private integrated telecom conglomerate, Bharti Enterprises. A consortium of
giants in the telecommunication business. In it's six years of pursuit of greater
customer satisfaction, AirTel has redefined the business through marketing
innovations, continuous technological up gradation of the network, introduction of
new generation value added services and the highest standard of customer care.
Bharti is the leading cellular service provider, with an all India footprint covering
all 23 telecom circles of the country. It has over 12 million satisfied customers.
Cellular telephony was introduced in India during the early 1990s. At that time,
there were only two major private players, Bharti (Airtel) and Essar (Essar) and
both these companies offered only post-paid services. Initially, the cellular
services market registered limited growth.
Moreover, these services were mostly restricted to the metros. Other factors such
as lack of awareness among people, lack of infrastructural facilities, low standard
32
of living, and government regulations were also responsible for the slow growth of
cellular phone services in India.
Although the cellular services market in India grew during the late 1990s (as the
number of players increased and tariffs and handset prices came down
significantly) the growth was rather marginal. This was because the cellular service
providers offered only post-paid cellular services, which were still perceived to be
very costly as compared to landline communications.
Following this realization, the major cellular service providers in India, launched
pre-paid cellular services in the late 1990s. The main purpose of these services was
to target customers from all sections of society (unlike post-paid services, which
were targeted only at the premium segment).
33
INTRODUCTION
A DREAM COME TRUE
The Late Dhirubhai Ambani dreamt of a digital India — an India where the
common man would have access to affordable means of information and
communication. Dhirubhai, who single-handedly built India’s largest private sector
company virtually from scratch, had stated as early as 1999: “Make the tools of
information and communication available to people at an affordable cost. They
will overcome the handicaps of illiteracy and lack of mobility.”
It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic
backbone. This backbone was commissioned on 28 December 2002, the auspicious
occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise
on 6 July 2002.
34
Reliance Communications has a reliable, high-capacity, integrated (both wireless
and wireline) and convergent (voice, data and video) digital network. It is capable
of delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for
enterprises as well as individuals, applications, and consulting.
Today, Reliance Communications is revolutionising the way India communicates
and networks, truly bringing about a new way of life.
Reliance Communications (formerly Reliance Infocomm), along with Reliance
Telecom and Flag Telecom, is part of Reliance Communications Ventures
(RCoVL). According to National Stock Exchange data, Anil Ambani controls
66.75 per cent of the company, which accounts for more than 1.36 billion shares of
the company.[1]Reliance Infocomm is an Indian telecommunications company. It
is the flagship company of the Reliance-Anil Dhirubhai Ambani Group,
comprising of power (Reliance Energy), financial services (Reliance Capital) and
telecom initiatives of the Reliance ADA Group. Reliance Infocomm is currently
managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x technology
35
About Sh. Dhirubhai Ambani
Few men in history have made as dramatic a contribution to their country’s
economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer
still have left behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud
patriot, the leader of men, the architect of India’s capital markets, the champion of
shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, India’s
largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of
barely US$ 300 (around Rs 14,000).
36
Over the next three and a half decades, he converted this fledgling enterprise into a
Rs 60,000 crore colossus—an achievement which earned Reliance a place on the
global Fortune 500 list, the first ever Indian private company to do so.
Dhirubhai is widely regarded as the father of India’s capital markets. In 1977,
when Reliance Textile Industries Limited first went public, the Indian stock market
was a place patronised by a small club of elite investors which dabbled in a handful
of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail
investors to participate in the unfolding Reliance story and put their hard-earned
money in the Reliance Textile IPO, promising them, in exchange for their trust,
substantial return on their investments. It was to be the start of one of great stories
of mutual respect and reciprocal gain in the Indian markets.
Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of
the greatest growth stories in corporate history anywhere in the world, and went on
to become India’s largest private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the interests of the
ordinary shareholder uppermost in mind, in the process making millionaires out of
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many of the initial investors in the Reliance stock, and creating one of the world’s
largest shareholder families.
Chairman's Profile
Anil Dhirubhai Ambani
Regarded as one of the foremost corporate leaders of contemporary India, Anil
Dhirubhai Ambani is the Chairman of all listed Group companies, namely:
Reliance Communications, Reliance Capital, Reliance Energy and Reliance
Natural Resources Limited.
Till recently, he also held the post of Vice Chairman and Managing Director in
Reliance Industries Limited (RIL), India's largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was
centrally involved in every aspect of the company's management over the next 22
years.
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He is credited with having pioneered a number of path-breaking financial
innovations in the Indian capital markets. He spearheaded the country's first forays
into the overseas capital markets with international public offerings of global
depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance
Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year
Yankee bond issue for the company in January 1997.
He is a member of :
Wharton Board of Overseers, The Wharton School, USA
Central Advisory Committee, Central Electricity Regulatory Commission
Board of Governors, Indian Institute of Management, Ahmedabad
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the
Rajya Sabha, Upper House of India's Parliament a position he chose to resign
voluntarily on March 25, 2006.
Awards and Achievements :
Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards
39
Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the
Business Barons - TNS Mode opinion poll, 2004
Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management
Association, October 2002
Awarded the First Wharton Indian Alumni Award by the Wharton India Economic
Forum (WIEF) in recognition of his contribution to the establishment of Reliance
as a global leader in many of its business areas, December 2001
Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in
Business and Finance' and was introduced as the only 'new hero' in Business and
Finance from India, June 1999
HISTORY
Reliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002
Reliance Infocomm built 60,000 km of fibre optic backbone in India. This network
was commissioned on December 28, 2002.
FOOTPRINT
At present, Reliance Telecom's GSM cellular services are available in 340 towns
within its eight-circle footprint. Reliance's CDMA services are available in 19
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states and cover about 65% of the country, state wise. Reliance Infocomm also
offered for the first time in India, mobile data services through its R-World mobile
portal. This portal leverages the data capability of the CDMA 1X network.
BUSINESS REVIEW
During the twelve months ended March 31, 2007, revenues of the Wireless
business increased by 46% to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364
crore (US$ 1,709 million).
Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250
crore (US$ 522 million). Margins expanded to 37% from 31%.
EBITDA of the Global business increased by 98% during the twelve months ended
March 31, 2007 to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased
to 24% from 12% last year.
In the same period, the Broadband business achieved revenue growth of 123% to
Rs. 1,144 crore (US$ 265 million), and EBITDA increased by more than 6 times,
to Rs. 519 crore (US$ 120 million). The EBITDA margin crossed 45% in the
twelve months ended March 31, 2007, from 15% in the corresponding period in the
previous year.
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Network
Telecommunication networks are the infrastructure for provisioning
Communications services. All businesses today are dependent on telecom to
continue their day-to-day operations. The range and quality of services that can be
provisioned is determined by the quality of the network deployed.
The Reliance Communications network consists of 60,000 kilometers of optical
fibre cables spanning the length and breadth of India.
42
These cables can carry thousands of billions of bits per second and can instantly
connect one part of the country with another.
This physical network and its associated infrastructure will cover over 600 cities
and towns in 18 of the country's 21 circles, 229 of the nation’s 323 Long Distance
Charging Areas (LDCAs) and broadband connectivity to over 190 cities. This
infrastructure will be backed by state-of-the-art information management systems
and a customer-focused organisation.
An interesting aspect of the network is the manner in which these fibres are
interconnected and deployed. Reliance's architecture is so fault-tolerant that the
chances of failure are virtually nil. Reliance's ring and mesh architecture topology
is the most expensive component to implement, but assures the highest quality of
uninterrupted service, even in the event of failure or breakage in any segment of
the network. Reliance has 77 such rings across the country with at least three
alternative paths available in metros. Connected on this topology, the service has
virtually no chance of disruption in quality performance.
Reliance's objective is to create value for our customers. Reliance will innovate
ceaselessly so that state-of-the-art technology can be leveraged to create products
and services that are affordable.
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Access networks determine the services that can finally be delivered to customer.
Our network has wireline access technologies based on fiber as well as copper.
Fibre in the access network makes broadband services easy to deploy. The wireless
access network deployed for CDMA 1X is spectrum efficient and provides better
quality of voice than other networks and higher data rates. CDMA 1X also
provides an upgradation path to future enhancements.
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TATA TELESERVICES
TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on the
GSM platform arising out of the Tata Group's strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. Tata Teleservices has received
a pan-India license to operate GSM telecom services, under the brand TATA
DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and
has already rolled out its services in various circles.
The launch of the TATA DOCOMO brand marks a significant milestone Indian
telecom landscape, as it stands to redefine the very face of telecoms in India.
Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the
Japanese market, the company is clearly the preferred mobile phone service
provider with a50 percent market share.
NTT DOCOMO has played a major role in the evolution of mobile
telecommunications through its development of cutting-edge technologies and
services. Over the years, technologists at DOCOMO have defined industry
benchmarks like 3G technologies, as also products and services like the i-mode
TM, mobile payment and a plethora of lifestyle-enhancing applications. Today,
while most of the rest of the industry is only beginning to talk of LTE technology
45
and its possible applications, DOCOMO has already started conducting LTE trials
in physical geographies, not just inside laboratories!
DOCOMO is also a global leader in the VAS (Value-Added Services) space, both
in terms of services and handset designs, particularly integrating services at the
platform stage. The Tata Group-NTT DOCOMO partnership will see offerings
such as these being introduced in the Indian market under the TATA DOCOMO
brand.
TATA DOCOMO has also set up a 'Business and Technology Cooperation
Committee, comprising of senior personnel from both companies. The committee
is responsible for identification of the key areas where the two companies will
work together. DOCOMO, the world’s leading mobile operator will work closely
with Tata Teleservices Limited management and provide know- how on helping
the company develop its GSM business.
Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already
established its presence and is the fastest-growing pan-India operator. Incorporated
in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology
platform in India. Today Tata Teleservices Limited, along with Tata Teleservices
(Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns
and villages across the country offering a wide range of telephony services
46
including Mobile Services, Wireless Desktop Phones, Public Booth Telephony and
Wire-line Services.
HISTORY
Tata Teleservices Limited now also has a presence in the GSM space, through its
joint venture with NTT DOCOMO of Japan, and offers differentiated products and
services under the TATA DOCOMO brand name. TATA DOCOMO arises out of
the Tata Group’s strategic alliance with Japanese telecom major NTT DOCOMO
in November 2008. TATA DOCOMO has received a pan-India license to operate
GSM telecom services—and has also been allotted spectrum in 18 telecom Circles.
The company has rolled out GSM services in 14 of India’s 22 telecom Circles in a
quick span of under six months. The company plans to launch pan-India operations
by the end of FY 2009-10.TATA DOCOMO marks a significant milestone in the
Indian telecom landscape, and has already redefined the very face of telecoms in
India, being the first to pioneer the per- second tariff option-part of its ‘Pay for
What You Use’ pricing paradigm. Tokyo-based NTT DOCOMO is one of the
world’s leading mobile operators-in the Japanese market, the company is the clear
market leader, used by over 50 per cent of the country’s mobile phone users.
47
VISION
We will leverage our strength in executing complex global- scale projects to make
leading edge information and communication servies affordable by all individual
consumers and business in india. We will offer unparalleled value to create
customer delight and enhance business productivity. We will also generate value
for our capabilities beyond indian borders while enabling millions of India’s
knowledge workers to deliver their services globally.
Currently, Tata Docomo mobile services available in these following circles:
Bihar & Jharkhand
Tamil Nadu
Orissa
Andhra Pradesh
Karnataka
Kerala
Kolkata
Maharashtra & Goa
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Madhya Pradesh
Chhattisgarh
Haryana
Chennai
Eastern Uttar Pradesh
Western Uttar Pradesh
Punjab
Rajasthan ,Recently Launched
Rest of West Bengal, Recently Launched.
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BSNL
INTRODUCTION
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services
in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier
service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five
years it has become one of the largest public sector unit in India.
BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer's confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM
Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602
Districts, 7330 cities/towns and 5.5 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned initiatives
to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom
50
operator in the country to beat its reach with its wide network giving services in
every nook & corner of country and operates across India except Delhi & Mumbai.
Whether it is inaccessible areas of Siachen glacier and North-eastern region of the
country. BSNL serves its customers with its wide bouquet of telecom services.
BSNL is numero uno operator of India in all services in its license area. The
company offers vide ranging & most transparent tariff schemes designed to suite
every custo
BSNL cellular service, Cell One, has more than 17.8 million cellular customers,
garnering 24 percent of all mobile users as its subscribers. That means that almost
every fourth mobile user in the country has a BSNL connection. In basic services,
BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85
per cent share of the subscriber base and 92 percent share in revenue terms.
BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet
Customers who access Internet through various modes viz. Dial-up, Leased Line,
DIAS, and Account Less Internet (CLI). BSNL has been adjudged as the
NUMBER ONE ISP in the country.
BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through
the same Backbone and Broadband Access Network. At present there are 0.6
million DataOne broadband customers.
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The company has vast experience in Planning, Installation, network integration and
Maintenance of Switching & Transmission Networks and also has a world class
ISO 9000 certified Telecom Training Institute.
Scaling new heights of success, the present turnover of BSNL is more than
Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million
(US $ 2.26 billion) for last financial year. The infrastructure asset on telephone
alone is worth about Rs.630,000 million (US $ 14.37 billion).
The turnover, nationwide coverage, reach, comprehensive range of telecom
services and the desire to excel has made BSNL the No. 1 Telecom Company of
India.
52
Bharat Sanchar Nigam Limited (BSNL ) is India’s largest communication service
Provider (CSP ) . Previously known as DOT (Department Of
Telecommunication) when it was under Federal Government Control, it became a
corporation in 2000. Bharat Sanchar Nigam Ltd. formed in October, 2000, is
World's 7th largest Telecommunications Company providing comprehensive range
of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet,
Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc.
Presently it is one of the largest & leading public sector units in India. BSNL has
footprints in entire India except for the Metropolitan cities of Mumbai and New
Delhi which are managed by MTNL, and commands over 40 million Landlines and
123 million Mobile subscribers.
BSNL, is a public sector communications company. It is the India's largest
telecommunication company with 25.14% market share as on December 31, 2007.
Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane,
Janpath, New Delhi. It has the status of Mini- ratna - a status assigned to reputed
Public Sector companies in India. BSNL is planning an IPO with in 6 months to
offload 10 % to public.
53
BSNL is numero uno operator of India in all services in its license area. The
company offers vide ranging & most transparent tariff schemes designed to suite
every customer.
BSNL cellular service, Cell One, has 55,140,282 2G cellular customers and
88,493 3G customers as on 30.11.2009. In basic services, BSNL is miles ahead of
its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the
subscriber base and 92 percent share in revenue terms.
BSNL has more than 2.5 million WLL subscribers and 2.5 million
Internet Customers who access Internet through various modes viz. Dial-up,
Leased Line, DIAS, and Account Less Internet (CLI). BSNL has been adjudged as
the NUMBER ONE ISP in the country.
BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer's confidence. Today, it has about 46
million line basic telephone capacity, 8 million WLL capacity, 52 Million GSM
Capacity, more than 38302 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS),
287 Satellite Stations, 614755 Rkm of OFC Cable, 50430 Rkm of Microwave
Network connecting 602 Districts, 7330 cities/towns and 5.6 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned initiatives
to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom
54
operator in the country to beat its reach with its wide network giving services in
every nook & corner of country and operates across India except Delhi & Mumbai.
Whether it is inaccessible areas of Siachen glacier and North-eastern region of the
country. BSNL serves its customers with its wide bouquet of telecom services
BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through
the same Backbone and Broadband Access Network. At present there are 0.6
million Data One broadband customers.
The company has vast experience in Planning, Installation, network integration and
Maintenance of Switching & Transmission Networks and also has a world class
ISO 9000 certified Telecom Training Institute.
Scaling new heights of success, the present turnover of BSNL is more than
Rs.351, 820 million (US $ 8 billion) with net profit to the tune of Rs.99, 390
million (US $ 2.26 billion) for last financial year. The infrastructure asset on
telephone alone is worth about Rs.630, 000 million (US $ 14.37 billion).
The turnover, nationwide coverage, reach, comprehensive range of
telecom services and the desire to excel has made BSNL the No. 1 Telecom
Company of India.
55
HISTORY OF BSNL
Like the ocean that is made of tiny drops, the P&T had slow and uneasy
start. The Post and Telegraph Department for instance, occupied a small corner
of Public Works Department. A regular separate Department was opened
around 1854 when Telegraph Facilities were thrown open to the public.
The Telegraph Department during 1854-57 comprised a Superintendent of
Telegraph with three Dy. Superintendent at Bombay, Madras and Pegu in
Barma and Inspectors at Indor , Agra, Kanpur and Banaras. Dr. O’
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Shaughenessy was the 1st. Superintendent of electric Telegraph in India & later
became the 1st. Director General of Indian Telegraph Department
Till 31st. December.1984 the Postal, Telegraph and Telephone services were
managed by Posts & Telegraph Department. In Jan. 1985 two separate
Departments for Post and Telecommunication was created. I.e. Department Of
Post & Department Of Telecommunication. Initially Account of Both the
Departments were maintained by Accountant General Of P&T, later
Telecommunication Account were separated from Post.
Operation, Member Development, member Personnel The and Member
Technology as a members of commission. Department Of Telecommunication
( DOT ) was constituted under the Secretary Telecommunication as Chairman and
Member Finance, Member
In the year 1986 , the Department of Telecommunication is re-organized into,
Telecommunication circles with the Secondary Switching Areas as basic units .
This was implemented in Phased manner. Bombay and Delhi Telephones were
separated to create the new entity called Mahanagar Telephone Nigam Limited
(MTNL)
On 1st.October 2000, The Government of India corporatised the Operating wing
of DOT, with new name as. Bharat Sanchar Nigam Limited (BSNL) with
operating services in overall country, as a Public Sector Unit. Under
57
Liberalization- Privatization-Globalization Policy. The BSNL is the India’s
largest public sector telecom company, & 7th world’s largest telecommunication
company, providing comprehensive range of telecom services in India. Wire line,
CDMA Mobile, GSM Mobile, internet, Broadband, carrier service, MPLS_VPN,
VSAT, etc. Within a span of seven years it becomes one of the largest public
sector companies in India. BSNL Provides the state of art telecom services from
common subscribers to corporate companies all over the India. In Rural & Urban
area, the BSNL is facing cutthroat competition from private telecom operators in
all wire-line, wireless and data services.
BSNL PRESENT AND FUTURE.
Since its corportisation in October 2000, BSNL has been actively providing
connections in both Urban & Rural areas and the efficiency of company has
drastically improved from the days when one had to wait for years to get a phone
connection to now when one can get a connection in even hours. Pre-activated
Mobile connections are available at many places across India. BSNL has also
unveiled very cost effective Broadband Internet Access plan (Data one) targeted
at homes and small industries/ business. BSNL plans to add newly 20 million
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subscribers annually for the next three years, and long term target of 123 million
lines by 2010. With the frantic activity in the communication sector in India the
number will be easily achievable. Today BSNL is the Largest Public Sector
undertaking of India, with latest Digital Switching Technology like OCB,
EWSD, AXE-10, FETEX, NEC etc and widespread Transmission Network
including SDH system up to 2.5 Gbit/s, DWDM system up to 80 Gbit/s , Web
Telephony, DIAS, VPN, Broadband , MPLS etc. and more than 4 Lakhs Data
customers.
The BSNL has quality Telecom Network in the Country and now focusing on
improving it, expanding the Network by introducing new services under the Data
Communication. BSNL is the only one service Provider, making focused efforts
and planned initiatives to bridge the Rural-Urban Sector of the Country.
BSNL is numero uno operator of India in all services in its license area. The
company offers vide ranging & most transparent tariffs schemes designed to suit
every customer. The company has long term experience in Planning, Installation
and maintenance of Switching & Transmission Network, also Company has
World Class ISO 9000 certified Telecom Training Institute. The BSNL has Gross
Fixed Assets of over Rs. 1, 11,692 crores as on 31-03-2007 and total Staff 3,
10,506 including Gr.D to TOP Level Management
The BSNL, have 4, million capacity of WLL, 20.1 million GSM capacity, more
59
than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of
OFC Cable, 63730 Rkm 0f Microwave Network connecting 602 Districts, 7330
cities/towns and 5.5 Lakhs villages in India
BSNL company has a modern infrastructure due to terrific competition. Now
BSNL has to compete with Airtel, Reliance Infocom, TATA, Bharti and other
Private Operators. BSNL has introduced various new technologies like Value
Added Services, Broadband, MLLN, Internet, Centrex, ISDN etc. For achieving
goal BSNL has to maintain and develop its landlines services, mobile services and
value added services regularly.
SPICE COMMUNICATIONS LIMITED
Spice Communications is a joint venture between Spice corp. (India)- the flagship
company of MCorp Global” that first introduced India to mobile phone services
and has interests in the field of telecommunications, office automation and
60
information technology and DISTACOM (Hong Kong)-a company with over 20
years of experience in mobile communication which was responsible for bringing
mobile telephony to Hong Kong along with Hutchison Telecom.
Spice Corp was the first private sector organization to make a strategic shift
into the telecommunications arena in 1995 as it launched India's first Cellular
Service network in the metro of Calcutta.
Spice Communications is one of the largest high value networks in India. Starting
operations in June 1997, Spice today is also the singular cellular operator in Punjab
with an extensive highway coverage that links nearly 76 key towns and cities,
accounting for 95% of the urban population and over 1000 villages across the state.
Spice Punjab has already achieved coverage of 95% District head quarters as per
DoT tender conditions, having already covered 14 out of 15 Districts HQs,
including Chandigarh.
Launched over nine years ago under the brand name of "Spice Telecom", the
Company's cellular services have already built up a strong customer base of over
1.5 million in two of India's most challenging and lucrative markets – Punjab and
Karnataka.
FOREIGN PARTNERS
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The Foreign partners for Spice Communications Karnataka are Distacom, AIG and
Prudential.
INFRASTRUCTURE VENDORS
The infrastructure vendors are Siemens and Motorola.
LAUNCH OF SERVICE
Launched over six years ago under the memorable brand name of "Spice", the
Company offers cellular services in Punjab and Karnataka. Spice Karnataka
launched its services in April 1997.
Pre-paid /post-paid Service
Spice Communications Limited is presently operating Cellular Phone Services in
the states of Punjab and Karnataka. The pre-paid service in Karnataka operates
under the brand name "Simple" and In Punjab under the brand name “spice”.
VODAFONE ESSAR
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Vodafone Essar, previously Hutchison Essar is a cellular operator in India that
covers 16 telecom circles in India Despite the official name being Vodafone Essar,
its products are simply branded Vodafone. It offers both prepaid and postpaid
GSM cellular phone coverage throughout India and is especially strong in the
major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 16 of the country's 23 licence
areas.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that
covers 16 telecom circles in India . Despite the official name being Vodafone
Essar, its products are simply branded Vodafone. It offers both prepaid and
postpaid GSM cellular phone coverage throughout India and is especially strong in
the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 16 of the country's 23 licence
areas.
63
OWNERSHIP:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67%
held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping
Reliance Communications, Hinduja Group, and Essar Group, which is the owner
of the remaining 33%. The whole company was valued at USD 18.8 billion . The
transaction closed on May 8, 2007.
PREVIOUS BRANDS:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide,
consolidating its services under a single identity. The Company entered into
agreement with NTT DoCoMo to launch i-mode mobile Internet service in India
during 2007.
The company used to be named Hutchison Essar, reflecting the name of its
previous owner, Hutchison. However, the brand was marketed as Hutch. After
getting the necessary government approvals with regards to the acquisition of a
64
majority by the Vodafone Group, the company was rebranded as Vodafone Essar.
The marketing brand was officially changed to Vodafone on 20 September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand
transition exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-
profile transition being unveiled today. Along with the transition, cheap cell
phones have been launched in the Indian market under the Vodafone brand. There
are plans to launch co-branded handsets sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to
leverage Vodafone Group's global scale in bringing millions of low-cost handsets
from across-the-world into India."While there is no revealing the prices of the low-
cost Vodafone handsets, the industry is abuzz that prices might start at Rs 666,
undercutting Reliance Communications' much-hyped 'Rang Barse' with cheap
handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or
subsidized handset offers -- rather handset-bundled schemes for customers.
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Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the
country, is expected to provide several Vodafone handsets in India. Earlier this
year, Vodafone penned a global low-cost handset procurement deal with ZTE.
GROWTH OF HUTCHISON ESSAR (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a
company that in 1994 was awarded a licence to provide mobile
telecommunications services in Mumbai (formerly Bombay) and launched
commercial service as Hutchison Max in November 1995. Analjit Singh of Max
still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison
Whampoa had acquired interests in six mobile telecommunications operators
providing service in 13 of India's 23 licence areas and following the completion of
the acquisition of BPL that number increased to 16. In 2006, it announced the
acquisition of a company that held licence applications for the seven remaining
licence areas.
In a country growing as fast as India, a strategic and well managed business plan is
critical to success. Initially, the company grew its business in the largest wireless
markets in India - in cities like Mumbai, Delhi and Kolkata. In these densely
66
populated urban areas it was able to establish a robust network, well known brand
and large distribution network -all vital to long-term success in India. Then it also
targeted business users and high-end post-paid customers which helped Hutchison
Essar to consistently generate a higher Average Revenue Per User ("ARPU") than
its competitors. By adopting this focused growth plan, it was able to establish
leading positions in India's largest markets providing the resources to expand its
footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding
agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and
indirect equity and loan interests in Hutchison Essar Limited for a total cash
consideration (before costs, expenses and interests) of approximately US$11.1
billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets
through ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra
Pradesh and Chennai
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2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in
Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under
Hutch brand
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar
Pradesh West' and 'West Bengal'
2005: Acquired BPL, another mobile service provider in India
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has
successfully launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G
network.
Hutch was often praised for its award winning advertisements which all follow a
clean, minimalist look. A recurrent theme is that its message Hello stands out
visibly though it uses only white letters on red background. Another recent
successful ad campaign in 2003 featured a pug named Cheeka following a boy
around in unlikely places, with the tagline, Wherever you go, our network follows.
The simple yet powerful advertisement campaigns won it many admirers.
IDEA CELLULAR
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ADITYA BIRLA GROUP
The Aditya Birla Group is India's first truly multinational corporation. Global in
vision, rooted in Indian values, the Group is driven by a performance ethic pegged
on value creation for its multiple stakeholders. Its 66 state-of-the-art manufacturing
units and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines,
Egypt, Canada, Australia and China.
A US$ 6.7 billion conglomerate, with a market capitalization of US$ 7 billion, it is
anchored by an extraordinary force of 72,000 employees belonging to over 20
different nationalities.
Over 30 percent of its revenues flow from its operations across the world.
A premium conglomerate, the Aditya Birla Group is a dominant player in all of the
sectors in which it operates. Such as viscose staple fiber, non-ferrous metals,
cement, viscose filament yarn, branded apparel, carbon black, chemicals,
fertilizers, sponge iron, insulators and financial services.
The Group has also made successful forays into the IT and BPO sectors. Currently
around 57 percent of our Equity Shares are held by our Promoters who are
companies belonging to the Aditya Birla Group.
Our Promoters are –
69
1. Aditya Birla Nuvo Limited
2. Grasim Industries Limited
3. Hindalco Industries Limited and
4. Birla TMT Holdings Private Limited.
The Aditya Birla Group is a dominant player in all of the sectors in which it
operates? Among these is viscose staple fibre, non-ferrous metals, cement, viscose
filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron,
insulators, financial services, telecom, BPO and IT services.
Company
- Grasim
- UltraTech Cement Limited
- Shree Digvijay Cement
- Hindalco
- Indian Aluminums Company Limited
- Bihar Caustic and Chemicals Limited
- ABNL
- Idea Cellular Limited
- Birla NGK Insulators*
70
- Birla Sun Life Insurance Company Limited*
- Birla Sun Life Asset Management Company Limited*
- Birla Sun Life Distribution Company Limited*
- PSI Data Systems
- TransWorks
- Birla Global Finance Limited
- Tanfac Industries Limited* fluorine chemicals
IDEA CELLULAR
Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group
and AT&T (through Birla AT&T- Maharashtra, Gujarat) and the Tata Group
(through Tata Cellular-Andhra Pradesh) came together to set up cellular networks.
In 2000, the historic path-breaking merger and the subsequent acquisition of RPG
Cellular - (Madhya Pradesh circle) helped take their aims even further and led to
the formation of Birla Tata AT&T Limited.
Since then, there has been no looking back for Birla Tata AT&T (Idea Cellular). In
its very first financial year, Idea Cellular recorded the fastest growth among all
cellular operators at a 135% increase in subscriber base. The company BTAL (now
Idea Cellular) also ranked No. 1 in customer satisfaction among all operators (as
71
per the NFO MBL survey), a testimony to the quality of the company's services
and subscribers.
As India's leading GSM Mobile Services operator, IDEA
Cellular has licenses to operate in 11 circles.
With a customer base of over 10 million, IDEA Cellular has operations in Delhi,
Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,
Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala.
IDEA Cellular's footprint currently covers approximately 45% of India's
population and over 50% of the potential telecom-market.
As a leader in Value Added Services, Innovation is central to IDEA's VAS
Factory. It is the first cellular company to launch music messaging with 'Cellular
Jockey' , 'Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and
A complete suite of Mobile Email Services.
A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the
distinction of offering the most customer friendly and competitive Pre Paid
offerings, for the first time in India, with 'Super Power', 2 Minutes Outgoing Free,
Lifelong offer and other segmented offerings like Women's Card. 'Lifetime Idea' is
the first and only loyalty program, for pre paid customers, introduced by a Cellular
brand.
72
Customer Service and Innovation are the drivers of this Cellular Brand. A brand
known for their many firsts, Idea is only operator to launch GPRS and EDGE in
the country.
The latest feather in the IDEA cap is the GSM Association Award for Bill Flash,
it has recently won making it the first cellular operator in India to win an award on
this platform.
Idea Cellular is part of the Aditya Birla Group, which is India's first truly
multinational corporation. Global in vision, rooted in Indian values, the group is
driven by a performance ethic pegged on value creation for its multiple
stakeholders.
The combined holding of the Aditya Birla Group companies in Idea stands at
98.3 per cent.
73
SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact
that learning is all pervasive in our lives, psychologists do not agree on how
learning takes place. How individuals learn is a matter of interest to marketers.
They want to teach consumers in their roles as their roles as consumers. They want
consumers to learn about their products, product attributes, potential consumers
benefit, how to use, maintain or even dispose of the product and new ways of
behaving that will satisfy not only the consumer’s needs, but the marketer’s
objectives.
The scope of my study restricts itself to the analysis of youth preferences,
perception of different mobile service providers. The scope of my study is also
restricts itself to Agra only.
74
OBJECTIVES OF THE STUDY
The subject matter for this research Project is to study the youth preference
towards the various mobile service providers in Agra. This project consists of
different objectives. They are as follows:
To know about the student preference level associated with different
mobile service providers.
To find out the youth satisfaction towards the various service providers.
To know which advertisement media puts more impact on the buying
decision of youth.
75
RESEARCHMETHODOLOGY
76
RESEARCH METHOLOGY:
Research design:
The study used an Descriptive Research design for the purpose of getting an
insight over the issue. For the purpose of present study a related sample of
population was selected on the basis of survey.
Sample Size:
A sample of 300 youth of Agra.
Research Area:
The Kamla nagar , sadar bazaar . Agra.
Sampling:
77
Random sampling
Research Instrument:
This work is carried out through questionnaires.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: Through survey using mixed questionnaire. The primary
data comprises information survey of “Student preference towards various
mobile service providers”. The data has been collected directly from youth
with the help of questionnaires.
Secondary Source: The secondary data was collected from internet and
references from Library.
Data Analysis:
As needed.Pie charts, Averages etc
78
DATA
ANALYSIS 79
DATA ANALYSIS AND INTERPRETATION
DEMOGARPHIC FEATURES OF REPONDENTS
1. Sex ratio of the respondents
PARTICULARS NUMBER %AGE
MALE 120 40%
FEMALE 180 60%
80
0
20
40
60
80
100
120
140
160
180
200
NUMBER %AGE
MALE
FEMALE
INTERPRETATION: The graphical representation of the table shows that out of
300 respondents 120 were male and 180 were female.
1. Do you have any mobile Connection?
PARTICULARS NUMBER %AGE
Yes 300 100%
No 0 0%
81
0
50
100
150
200
250
300
350
NUMBER %AGE
Yes
No
INTERPRETATION:
All the respondents had mobile connections.
2. How many mobile connections do you have?
Particulars No. of respondents
1 243
2 57
3 0
>3 0
82
No. of respondents
243
57
0 00
50
100
150
200
250
300
1 2 3 >3
No. of respondents
INTERPRETATION:
out of 300 respondents 243 says that they had 1 connection while 57 were having 2
connections.
3. Which service are you using?
Particulars No. of respondents
Prepaid 187
Postpaid 113
83
No. of respondents
187
113
0
20
40
60
80
100
120
140
160
180
200
Prepaid postpaid
No. of respondents
INTERPRETATION:
Out of 300 respondents 187 were using prepaid connections while 113 respondents
were using postpaid connections.
4. Which Mobile connection are you currently using?
PARTICULARS NO.OF RESPONDENTS
RELIANCE 154
AIRTEL 98
BSNL 19
84
VODAFONE 19
TATA INDICOM 6
SPICE 4
INTERPRETATION:
Out of 300 respondents 154 were using RELIANCE, 98 were using AIRTEL, 19
were using BSNL and VODAFONE, 4 were using SPICE while 6 were using tata
indicom.
5. If you are using Reliance then please select your currently Reliance mobile
service ?
NO. OF RESPONDENTS
52%
33%
6%6% 2%1% RELIANCE
AIRTEL
BSNL
VODAFONE
TATA INDICOM
SPICE
85
Type of Reliance mobile service No. of user
CDMA 118
GSM 25
BOTH 11
Reliance mobile service user
77%
16%7%
CDMA
GSM
BOTH
Out of 154 Reliance respondent 118 respondents were use CDMA and 25 use
GSM and 11 use both.
6. Are you satisfied with the services?
PARTICULARS NUMBER
Yes 237
No 63
86
NUMBER
237
63
0
50
100
150
200
250
Yes No
NUMBER
INTERPRETATION:
Out of 300 respondents 237 respondents were satisfied with the services of there
particular service providers while only 63 were not satisfied.
7. Which facility attracts you most?
PARTICULARS No. of respondents
COVERAGE 182
CALL CHARGES 63
ROAMING CHARGES 5
87
G.P.R.S. 44
OTHERS 6
No. of respondents
182
63
5
44
6
0
20
4060
80
100
120
140160
180
200
COVERAGE CALLCHARGES
ROAMINGCHARGES
G.P.R.S. OTHERS
No. of respondents
INTERPRETATION:
Out 300 respondents 182 respondents were attracted by the coverage facility, 63 by
call charges, 5 by roaming charges, 44 by G.P.R.S while 6 were attracted by
others.
8. Which advertisement media puts more impact on your buying decision?
PARTICULARS NO. OF RESPONDENTS
T.V. 92
MAGAZINES 7
88
NEWSPAPERS 65
INTERNET 88
OTHERS 48
INTERPRETATION:
INTERPRETATION:
Out of 300 respondents 92 gets aware of cellular services by T.V, 88 by internet,65
by news papers, 48 by others while 7 by magazines.
9. How much is your monthly expenses on mobile phones?
PARTICULARS NO. OF RESPONDENTS
Less than 150 88
89
150-350 157
350-500 34
Above 500 21
INTERPRETATION:
Out of 300 respondents most of the respondents monthly expenses were 150-350,
88 had monthly expenses of less than 150, 34 had 350-500 while only 21 were
having monthly expenses of above 500.
10. From how long you are availing the services of this particular service
provider?
PARTICULARS NO. OF RESPONDENTS
1 year 92
2 years 143
90
NO. OF RESPONDENTS
0
20
40
60
80
100
120
140
160
180
Less than 150 150-350 350-500 Above 500
NO. OF RESPONDENTS
3 years 50
More than 3 years 15
INTERPRETATION: Out of 300 respondents 165 were availing the services of
there particular service providers since 2 years, 80 since 1 year, 40 since 3 years
while only 15 were availing the services from more than 3 years.
11. Would you like to change your current service provider in future?
PARTICULARS No. OF RESPONDENTS
Yes 67
No 233
91
No. OF RESPONDENTS
67
233
0
50
100
150
200
250
Yes No
No. OF RESPONDENTS
INTERPRETATION:
Out of 300 respondents 233 did not want to change there current service providers
while only 67 respondents want to change there current service providers.
12. In your opinion what is more important Quality of service or the tariff
rates ?
SERVICE PROVIDER QUALITY OF SERVICE TARIFF RATES
RELIANCE 90 64
92
AIRTEL 60 38
BSNL 12 7
VODAFONE 11 8
TATA INDICOM 4 2
SPICE 3 1
INTERPRETATION-
Respondent of the survey said that the quality of the service is the main component
which they look for but the attractive tariff rates remains their prime concern.
13. Please specify the type of plan you are using whether prepaid or postpaid ?
SERVICE PROVIDER PREPAID POSTPAID
93
RELIANCE 130 24
AIRTEL 70 28
BSNL 10 9
VODAFONE 12 7
TATA INDICOM 4 2
SPICE 4 0
INTERPRETATION-
From the above table most of the respondent who were using the prepaid .
FINDINGS
94
Few years back mobile connections were not common among the youth. But
with the mobile revolution now we can find almost every student with
mobile phone.
Most of the youth prefer prepaid connections than postpaid connections.
Most preferred cellular company amongst the youth is airtel and the least
preferred company is reliance.
Mostly the youth are satisfied with the services provided by the different
cellular companies.
Maximum number of respondents were attracted towards the coverage
facility and the least like the roaming services.
T.V. and internet are the best media advertisements that put more impact on
the youth buying decisions
The monthly expense of maximum youth was ranging from 150-300.
Maximum number of youth are loyal to there particular service providers
and they were using there connections since 2 years.
S.W.O.T Analysis
95
STRENGTH
Mobile services has a wide network coverage area all over India. It is
focusing its service in area where no service provider are present.
Reliance has a excellent customer care customer care center, which can be
accessed sny time round the clock from anywhere in India.
WEAKNESS
From interaction with the youth we found that reaching of bill was the
problem of very few customer.
Information of the new plans or changes in plan not properly communicated
to youth.
OPPORTUNITY
96
Reliance communication has taken initiative mobile services and has
built a network . This mobile services business offers great opportunity
for reliance since the penetration in the country .
THREATS
Mobile service industry has other major player like BSNL,Airtel,
Vodafone, spice , which are also coming up with big plans to compete
with each other.
SUGGESTIONS AND RECOMMENDATION
97
By carrying out this survey and the project report many interesting facts and the
figure were found out. The youth satisfaction is the sole vehicle for the growth of
any broadband service providers.
HIGHLIGHTS OF THE SURVEY:
A. Youth want high quality of service.
B. The tariff rates should be developed by keeping in mind the status of the
middleman.
C. The youth prefers those mobile services which has high connectivity
D. Youth needs proper information regarding the various plans.
E. The accessibility to the mobile service should be more and wide.
Every company has to keep in mind the requirements of the customers and
their satisfaction level because it is the sole vehicle for the growth of the
company .
LIMITATIONS OF THE PROJECT STUDY
98
This project study has certain weakness and limitation.
In the ensuring study, time was a constraint in addition to the researcher’s
limit to physically endeavor in touching in depth a targeted group.
The time was short so we could not take a large sample so only with sample
of 300 we have to analyze so it may deferred from earlier study.
Although there were limitation still I made my best so that this project can
give clear and real picture.
CONCLUSION
99
By carrying out this survey and the project report many interesting facts and the
figure were found out. The youth satisfaction is the sole vehicle for the growth of
any mobile service providers.
Youth want high quality of service which is given by reliance .The tariff rates
should be developed by keeping in mind the status of the middleman.
The youth prefers Reliance mobile services which has high connectivity
Every company has to keep in mind the requirements of the customers and
their satisfaction level because it is the sole vehicle for the growth of the
company .
“Reliance CDMA is the only achiever of the Youth preference towards
various mobile service providers ”
BIBLIOGRAPHY
100
BOOKS:
Marketing Research – G. C. Beri
Research Methodology – C.R Kothari
Principles of Marketing – Philip Kotler
Web Resources:
http://www.tataindicom.com
http://www.rcom.co.in
http://www.ideacellular.com
http://www.bsnl.co.in
APPENDIX
101
QUESTIONNAIRE
For
“STUDY OF YOUTH PREFERENCE TOWARDS VARIOUS MOBILE
SERVICE PROVIDERS”
Name –
Contact no.-
Sex- male female
1.Do you have any mobile Connection?
Yes No
2.How many mobile connections do you have?
1 2
3 >3
3. Which service are you using?
Prepaid Postpaid
4. Which Mobile connection are you currently using?
Airtel Vodafone
BSNL Spice
Reliance Tata indicom
102
5.If you are using Reliance then please select your currently Reliance mobile
service?
CDMA GSM
BOTH
6. Are you satisfied with the services which you are using currently?
Yes No
7. Which facility attracts you most?
Coverage Call charges
Roaming facility G.P.R.S
Others Specify……………………………………………
8. Which advertisement media puts more impact on your buying decision?
T.V Magazines
Newspapers Internet
Others
9. How much is your monthly expenses on mobile phones?
Less than 150 150-350
350-500 Above 500
10. From how long you are availing the services of this particular service provider?
1 year 2 years
103
3 years More than 3 years
11. Would you like to change your current service provider in future?
Yes No
12. In your opinion what is more important Quality of service or the tariff rates ?
Yes No
13. Please specify the type of plan you are using whether prepaid or postpaid ?
Yes No
104
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