a study on indian gsm market

7/31/2019 A study on Indian GSM market.

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1

A

PROJECT THESIS

ON

“ STUDY ON GSM MARKET”

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

(NEW DELHI)

IN PARTIAL FULL FILLMENT OF MBA DEGREE 2010-12

SUBMITTED BY-

SATYAVRAT PANDEY

MBA IV SEMESTER (2010-12)

ENROLMENT NO.- 10AM80692

PROJECT THESIS ID- TS12-M-10

SUBMITTED TO-

PUSPH LAMBA



2

ABSTRACT

The study has been done to understand the current status of Indian GSM market and the trend

which are taking place in the market. The Indian telecom sector is growing very fast, it hasworld‟s second largest subscriber base, it has become a lucrative market for foreign players, most

foreign giant has made their entry into Indian telecom sector and many are waiting for their turn.

Since the launch of mobile number portability (MNP) in Indian market competition has gone up

companies trying to lure the subscribers of other company with tantalizing offers.

In this study primary as well secondary data has been used to understand the market trend,

market status and future market trend well .Market trends means what marketing strategy is

being used by the players to beat the competitor and the response of customer towards it.

Study has been done to know the future market trend by analyzing the past data in present. To

collect primary data questionnaire has been used, face to face and telephonic interview has been

conducted, on the basis of which conclusion and recommendation has been given. For the

secondary data books, magazine, news paper, journal and report from various research agency

has been studied. Secondary data helped to know current status of telecom sector and take a

glimpse of trend that may take place in future.



3

PROJECT THESIS TOPIC APPROVAL

Dear SATYAVRAT PANDEY,

This is to inform you that the approved topic for project thesis is - “STUDY ON GSM MARKET”.

This email is an official confirmation that you would be doing your project thesis work genuinely and shall

try to achieve the said objectives mentioned in the synopsis.

You must always use the thesis title as approved and registered with us.

Your project thesis id Number is TS12-M-010.

You are required to correspond with your Internal Guide MR.PUSHP LAMBA ([email protected]) at

regular intervals before sending the thesis final draft to him.

Regards,

Dipti Sharma

The Indian Institute of Planning and [email protected] Phone: 0124 – 42789995

mailto:[email protected]









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ACKNOWLEDGEMENT

A fruitful work is incomplete without paying a word of thanks to all the people who are directly

or indirectly involved in its completion.

I wish to express my heartfelt appreciation to many who have contributed to this

project both explicitly and implicitly. Words can never express the extent of indebt, but I still

wish to express my deep sense of gratitude to all the people for their valuable time and co-

operation, which they had given me.

Firstly, I am thankful and express my gratitude to Mr.Pushp Lamba ( Project Guide)

who inspired me and guided me throughout the period of project work that enabled me to

successful completion the project.

I am thankful to my parents who motivated me throughout this project work. The preparation of

this project would not have been an easy task without the help and support of my parents.

I also thank all my professors who helped me during the project, and last but not the

least to my classmates, who despite their own project have helped in my project as and when

they could.

Satyavrat Pandey



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TABLE OF CONTENT

TOPIC PAGE NO.

INTRODUCTION 6

RESEARCH METHODOLOGY

Objective

Design

Limitation

Data collection

8

9

9

10

11

LITERATURE REVIEW

Introduction

History of GSM A brief introduction of Indian telecom

sector and players

Present status of GSM market

Mobile No. Portability

12

13

14

19

32

36

Finding and Analysis 44

SWOT Analysis 56

Conclusion 57Recommendation 59

Bibliography 60

Annexure 61



6

INTRODUCTION

The telecom services have been recognized the world-over as an important tool for socio

economic development for a nation. It is one of the prime support services needed for rapid

growth and modernization of various sectors of the economy. Indian telecommunication sector

has undergone a major process of transformation through significant policy reforms, particularly

beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried

forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector

witnessed a complete transformation in the last decade. It has achieved a phenomenal growth

during the last few years and is poised to take a big leap in the future also.

The word „GSM‟ stands for GLOBAL SYSTEM FOR MOBILE COMMUNICATION, or

GROUP SPECIAL MOBILE. The concept of GSM has been developed by the European

Telecommunication Standard Institute. It is a standard set that describe technologies for second

generation (2G) digital cellular network. Developed as a replacement for first generation (1G)

analog cellular networks, the GSM standard originally described a digital, circuit switched

network optimized for full duplex voice telephony. The standard was expanded over time to

include first circuit switched data transport, then packet data transport via GPRS (General Packet

Radio Services). Packet data transmission speeds were later increased via EDGE (Enhanced Data

rates for GSM Evolution) referred as EGPRS. The GSM standard is more improved after the

development of third generation (3G) UMTS standard developed by the 3GPP. GSM networks

will evolve further as they begin to incorporate fourth generation (4G) LTE Advanced standards.

"GSM" is a trademark owned by the GSM Association.

This is all technical information about the GSM that what the GSM actually is and how it came

into the picture, let‟s move to the other aspect on which study based on that is business aspect.

As for as the telecom sector is concerned in India it is growing very fast so as the GSM segment,

there are a lot no. of domestic and international player are trying to get into the country and

capture the lucrative market.

http://en.wikipedia.org/wiki/2G


http://en.wikipedia.org/wiki/Duplex_(telecommunications)#Full_duplex

http://en.wikipedia.org/wiki/Telephony

http://en.wikipedia.org/wiki/GPRS

http://en.wikipedia.org/wiki/EDGE


http://en.wikipedia.org/wiki/UMTS

http://en.wikipedia.org/wiki/3GPP


http://en.wikipedia.org/wiki/LTE_Advanced

http://en.wikipedia.org/wiki/Trademark

http://en.wikipedia.org/wiki/GSM_Association

















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The Indian Telecommunications network with 919 million connections (as on March 2012) is the

second largest in the world. It has the world's third-largest Internet users with over 121 million

as of march 2012. India has become the world's most competitive and one of the fastest growing

telecom markets. The sector is growing at a speed of 45% during the recent years. This rapid

growth is possible due to various proactive and positive decisions of the Government and

contribution of both by the public and the private sectors. The rapid strides in the telecom sector

have been facilitated by liberal policies of the Government that provides easy market access for

telecom equipment and a fair regulatory framework for offering telecom services to the Indian

consumers at affordable prices.

This is all about the state of Indian telecom sector but what about the major telecom player, what

they are doing to capture more and more market share .competition are heating up betweenplayers after the introduction of MNP(mobile no. portability). Companies such as Airtel,

Vodafone, Idea , Tata docomo and many more giving lucrative offer to attract the customer of

other player, spending huge amount on advertisement and the sales promotion.

It would be interesting to see that who is gaining the competitive advantage over other in such a

market where the customer is very dynamic in nature and competition are heating up. Now these

days companies has to be very cautious because at one hand they should not lose its existing

customer and on the other hand they have to gain new customer, if they want to make the use of

MNP then they should be capable enough to attract the customer of its competitor. Companies

are sweating heavily to formulate the marketing strategies in such a way that it could full fill all

what they actually need.

If we talk about current market scenario then India's GSM subscriber base grew by 1.04 percentin March with addition of 6.87 million mobile phone users, with Bharti Airtel alone signing upover 2.5 million customers, according to data released by Cellular Operators Association of India.

The total number of GSM subscribers in the country crossed 664 million as against 657.22million in February.

So it would be interesting to know that how far the market can grow.

http://en.wikipedia.org/wiki/List_of_Internet_users_by_country

http://en.wikipedia.org/wiki/List_of_Internet_users_by_country



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RESEARCH METHODOLOGY

Research methodology means the technique, method and various tool which has been used bythe researcher in data collection, in analyzing of data, in interpretation of data.

It is concerned with using right method for collection of data; it is also concerned with collecting

right data from right place and using right source.

When we talk of Research methodology, we don‟t talk of the research method but also consider

the logic behind it, we study and explain that why a particular method is being used in this.

A researcher should adopt that methodology on the basis of which he could evaluate the research

result and others also.

In this research I took 10 telecom companies in Indian market that is big according to their

market share and customer base.



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RESEARCH OBJECTIVE-

The basic purpose of the research is to know about the current state of the Indian GSM market,means what is happening in the market, who is gaining market share, which is losing its

customer base, what kind of marketing strategies are being used by the telecom companies to

stay ahead. Since the introduction of the GSM services in Indian market the market has been

changed first there were only 2 or 3 companies but now these there are 15 telecom companies in

Indian market and each of them are ready to grasp the market share.

Subscriber base also increased within 5 year, in march2007 there was only 165.09 million

subscribers but now till March 2012 it reached 919.17 million.

To know the state of Indian GSM market.

To know the effect of mobile number portability(MNP) on telecom players, since the

introduction of MNP in Indian market competition has been very tough companies has to

think twice, thrice before changing the tariff plan or any other existing plan.

To know the market share of various companies.

To know the growth of Indian GSM market.

To know the competitive advantage of GSM over CDMA services.

To know the consequences of Supreme Court decision on Indian GSM market, when in

FEB 2012 the Supreme Court quashed all 122 licenses which had been issued by former

telecom minister A. Raja some foreign companies started thinking to exit from India.



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RESEARCH DESIGN-

Research: descriptive

Data source: primary and secondary

Research tools: survey, Questioners, interview and studies.

Type of questions : open ended and close ended.

Sample unit : 100

Sampling procedure: simple random procedure.

Contact method: personal ,online and telephone

RESEARCH LIMITATION-

1. Mostly people did not like to take part in the survey

2. People did not answer the questions properly

3. Many people did not fill the questionnaire properly

4. Many people didn‟t reply the mail

5. Reports and survey were not up to date.

6. Some Surveys were not trust worthy.

7. Some Surveys were difficult to understand

8. Surveys were contradicting each other information on GSM market.



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DATA COLLECTION METHOD-

Primary Data-

To collect primary data I used basically 3 method of data collection.

a) Personal interview- In this method of collecting data I used to interact with the people

who were coming in to the store.

b) Telephonic interview- in this method of collecting data I used to call the prospect and

note the feedback.

c) Mail- I sent a questionnaire to a lot of people to know their views.

Secondary Data-

To collect secondary data I took internal secondary data and external secondary data.

a) Internal secondary data- Data from company itself which it already has.

b) External secondary data- Data from the outside of the company, like books, magazines,

newspapers, internet and other reliable sources



12

LITERATURE REVIEW-



13

INTRODUCTION OF GLOBAL SYSTEM FOR MOBILE COMMUNICATION (GSM) –

The word „GSM‟ stands for GLOBAL SYSTEM FOR MOBILE COMMUNICATION, or

GROUP SPECIAL MOBILE. The concept of GSM has been developed by the European

Telecommunication Standard Institute. It is a standard set that describe technologies for second

generation (2G) digital cellular networks. Developed as a replacement for first generation (1G)

analog cellular networks, the GSM standard originally described a digital, circuit switched

network optimized for full duplex voice telephony. The standard was expanded over time to

include first circuit switched data transport, then packet data transport via GPRS (General Packet

Radio Services). Packet data transmission speeds were later increased via EDGE (Enhanced Data

rates for GSM Evolution) referred as EGPRS. The GSM standard is more improved after the

development of third generation (3G) UMTS standard developed by the 3GPP. GSM networks

will evolve further as they begin to incorporate fourth generation (4G) LTE Advanced standards.

"GSM" is a trademark owned by the GSM Association.

HISTORY OF GSM-

During the early 1980s, analog cellular telephone systems were experiencing rapid growth in

Europe, particularly in Scandinavia and the United Kingdom, but also in France and Germany.

Each country developed its own system, which was incompatible with everyone else's in

equipment and operation. This was an undesirable situation, because not only was the mobileequipment limited to operation within national boundaries, which in a unified Europe were

increasingly unimportant, but there was also a very limited market for each type of equipment, so

economies of scale and the subsequent savings could not be realized.

The Europeans realized this early on, and in 1982 the Conference of European Posts and

Telegraphs (CEPT) formed a study group called the Group Special Mobile (GSM) to study and

develop a pan-European public land mobile system. The proposed system had to meet certain

criteria:

Good subjective speech quality.

Low terminal and service cost.

Support for international roaming


http://en.wikipedia.org/wiki/Cellular_network


























http://en.wikipedia.org/wiki/Cellular_network




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Ability to support handled terminal.

ISDN Compatibility.

The genesis of GSM came from the recognition by all engineers that common technical

standards were “a good thing” in telecommunications and a growing willingness by European

Governments in 1984 to at least consider exploring a single market in

telecommunications. These two sentiments were held in quite different worlds within Europe.

There was the technical world that brought together engineers at technical conferences of the

European Conference of Posts and Telecommunications (CEPT). GSM was set up by CEPT in

1982. There was a political world where, in telecommunications, the old order of national state

monopolies were firmly in the driving seat in 1982 and under liberalization pressure from

the the European Commission from around 1984 . This was the start of the breakdown of the old

state run telecommunications monolithic structures and particularly public mobile services

(pioneered by the UK). There was a third world of the big European industrial

companies firmly tied to national markets but always trying to break into the backyard of the

others.

These worlds were not just countries, companies and committees – but comprised the key people

who created GSM. Among those critical to the success of GSM were.

ADVANTAGES OF GSM-

GSM advantages over other cellular technologies are;

Dominant global market share of GSM gives benefits:

Large number of infrastructure and handset vendor‟s giving advantage in terms of price

and other commercial term.

Innovation ahead of CDMA e.g. single chip hand set.

Widest choice of handsets with widespread sales and service distribution network.



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Handset availability in all price segment and ongoing introduction of wide variety to

meet customer requirements.

Easy subscription process (SIM BASED).

Widespread prepaid solution.

Seamless interoperability between networks and handset.

Global footprint for international roaming including SMS, Data and other value added

services.

ADVANTAGE FOR SUBSCRIBERS-

Low cost entry handset.

Wide choice and availability of handset.

International roaming.

Easy subscription.

Affordable services for common man.

ADVANTAGE FOR OPERATOR-

Economies of scale due to dominant market share.

Choice of multiple vendors.

Lower subscriber acquisition cost.

Seamless interoperability.



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A BRIEF INTRODUCTION OF INDIAN TELECOM SECTOR

Introduction

The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid

growth and modernization of various sectors of the economy. Indian telecommunication sector

has undergone a major process of transformation through significant policy reforms, particularly

beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried

forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector

witnessed a complete transformation in the last decade. It has achieved a phenomenal growth

during the last few years and is poised to take a big leap in the future also.

Status of Telecom Sector

The Indian Telecommunications network with 919.17 million connections (as on March 2012) is

the second largest in the world. in it total number of GSM connection is 664.08 million. The

sector is growing at a speed of 45% during the recent years. This rapid growth is possible due to

various proactive and positive decisions of the Government and contribution of both by the

public and the private sectors. The rapid strides in the telecom sector have been facilitated by

liberal policies of the Government that provides easy market access for telecom equipment and a

fair regulatory framework for offering telecom services to the Indian consumers at affordable

prices. Presently, all the telecom services have been opened for private

participation. The Government has taken following main initiatives for the growth of the

Telecom Sector:

Liberalization

The process of liberalization in the country began in the right earnest with the announcement of

the New Economic Policy in July 1991. Telecom equipment manufacturing was delicensed in

1991 and value added services were declared open to the private sector in 1992, following which

radio paging, cellular mobile and other value added services were opened gradually to the private

sector. This has resulted in large number of manufacturing units been set up in the country. As a



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result most of the equipment used in telecom area is being manufactured within the country. A

major breakthrough was the clear enunciation of the government‟s intention of liberalizing the

telecom sector in the National Telecom Policy resolution of 13th May 1994.

National Telecom Policy 1994

In 1994, the Government announced the National Telecom Policy which defined certain

important objectives, including availability of telephone on demand, provision of world class

services at reasonable prices, improving India’ s competitiveness in global market and promoting

exports, attractive FDI and stimulating domestic investment, ensuring India’ s emergence as

major manufacturing / export base of telecom equipment and universal availability of basic

telecom services to all villages. It also announced a series of specific targets to be achieved by

1997.

Telecom Regulatory Authority of India (TRAI)

The entry of private service providers brought with it the inevitable need for independentregulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect

from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of

India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom

services which were earlier vested in the Central Government.

TRAI’ s mission is to create and nurture conditions for growth of telecommunications in the

country in manner and at a pace, which will enable India to play a leading role in emerging

global information society. One of the main objectives of TRAI is to provide a fair andtransparent policy environment, which promotes a level playing field and facilitates fair

competition. In pursuance of above objective TRAI has issued from time to time a large number

of regulations, orders and directives to deal with issues coming before it and provided the

required direction to the evolution of Indian telecom market from a Government owned

monopoly to a multi operator multi service open competitive market. The directions, orders and



18

regulations issued cover a wide range of subjects including tariff, interconnection and quality of

service as well as governance of the Authority.

The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a

Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over theadjudicatory and disputes functions from TRAI. TDSAT was set up to adjudicate any dispute

between a licensor and a licensee, between two or more service providers, between a service

provider and a group of consumers, and to hear and dispose of appeals against any direction,

decision or order of TRAI.

New Telecom Policy 1999

The most important milestone and instrument of telecom reforms in India is the New Telecom

Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March

1999, to become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future

reforms, contemplating the opening up of all the segments of the telecom sector for private sector

participation. It clearly recognized the need for strengthening the regulatory regime as well as

restructuring the departmental telecom services to that of a public sector corporation so as to

separate the licensing and policy functions of the Government from that of being an operator. It

also recognized the need for resolving the prevailing problems faced by the operators so as to

restore their confidence and improve the investment climate.

Key features of the NTP 99 include:

Strengthening of Regulator.

National long distance services opened to private operators.

International Long Distance Services opened to private sectors.

Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee.Resolution of problems of existing operators envisaged.

Direct interconnectivity and sharing of network with other telecom operators within the

service area was permitted.

Department of Telecommunication Services (DTS) corporatized in 2000.

Spectrum Management made transparent and more efficient



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MAJOR PLAYER IN INDIAN TELECOM INDUSTRY-

There are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Communication, Tata Teleservices,)

• Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel, IdeaCellular,

Loop Mobile, Spice Communications,Uninor,Tatadocomo )

BHARAT SANCHAR NAGAR LIMITED-

NAME Bharat Sanchar Nagar Limited

YEAR OF ESTABLISHMENT 2000COMPANY PROFILE Bharat Sanchar Nigam Ltd. 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. Within a span of five years it has

Become one of the largest public sector unit in

India.

GLOBAL PRESENCE/MARKETING

NETWORK

It has a network of over 45 million lines

covering 5000 town. it has 90.09 million

cellular and 5.06 million WLL customer



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BHARTI AIRTEL

NAME OF THE COMPANY Bhati Airtel

YEAR OF ESTABLISHMENT 7 July 1995

COMPANY PROFILE Bharti Airtel Limited commonly known

as Airtel, is an Indian telecommunications

company that operates in 20 countries across

South Asia, Africa and the Channel Islands. It

operates a GSM network in all countries,

providing 2G, 3G and 4G services depending

upon the country of operation. Airtel is

the third largest telecom operator in the world

with over 243.336 million customers across 20

countries as of March 2012. It is the largest

cellular service provider in India, with over

181 million subscribers at the end of March

2012. Airtel is the third largest in-country

mobile operator by subscriber base,

behind China Mobile and China Unicom. GLOBAL PRESENCE / MARKETING

NETWORK

Airtel is the third largest mobile operator in the

world in terms of subscriber base and has a

commercial presence in 20 countries and

the Channel Islands.

Its area of operation includes.

The Indian subcontinent

Airtel, in India

Airtel Bangla, in Bangladesh

http://en.wikipedia.org/wiki/Channel_Islands

http://en.wikipedia.org/wiki/GSM_network




http://en.wikipedia.org/wiki/List_of_mobile_network_operators

http://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_India


http://en.wikipedia.org/wiki/China_Mobile

http://en.wikipedia.org/wiki/China_Unicom




http://en.wikipedia.org/wiki/China_Unicom

http://en.wikipedia.org/wiki/China_Mobile



http://en.wikipedia.org/wiki/List_of_mobile_network_operators




http://en.wikipedia.org/wiki/GSM_network




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Airtel Srilanka, in Srilanka

Airtel Africa which operates in

17 countries,

ACQUISITION/STRATEGIC ALLIANCE In March 2010, Bharti struck a deal to

buy the Kuwait firm's mobile

operations in 15 African countries, in

India's second biggest overseas

acquisition after Tata Steel's $13 billion

buy of Corus in 2007.

On August 11, 2010, Bharti Airtelannounced that it would acquire 100%

stake in Telecom Seychelles for US$62

million taking its global presence to 19

countries.

FUTURE PROSPECT On 10 April 2012, Airtel launched 4G

services using TD-LTE technology in

Kolkata, becoming the first company in

India to offer 4G services. Airtel will

be launching 4G

in Bangalore Pune and Chandigarh this

year.

http://en.wikipedia.org/w/index.php?title=Telecom_Seychelles&action=edit&redlink=1

http://en.wikipedia.org/wiki/Time-Division_Long-Term_Evolution

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Chandigarh

http://en.wikipedia.org/wiki/Chandigarh

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/Time-Division_Long-Term_Evolution

http://en.wikipedia.org/w/index.php?title=Telecom_Seychelles&action=edit&redlink=1



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RELIANCE COMMUNICATION

-

NAME OF THE COMPANY Reliance Communication

YEAR OF ESTABLISHMENT 2004

COMPANY PROFILE Reliance – ADA Group‟s flagship company,

Reliance Communications, is India's largest

private sector information and communications

company, with over 100 million subscribers. It

has established a pan-India, high-capacity,

integrated (wireless and wire line), convergent

(voice, data and video) digital network, to offer

services spanning the entire infocom value

chain.

GLOBAL PRESENCE / MARKETING

NETWORK

Reliance Communications has IP-enabled

connectivity infrastructure comprising over

190,000 kilometers of fiber-optic cable

systems

in India, the US, Europe, Middle East, and the

Asia Pacific region.

In India Reliance Communication covers 24,000

towns and 600000 villages.

ACQUISITION/STRATEGIC ALLIANCE It has acquired various players in same field



23

FLAG Telecom

Yipes Ethernet Service

Digicable

Vanco

FUTURE PROSPECT Reliance communication is planning to launch

4G services in country.

VODAFONE-

NAME OF THE COMPANY Vodafone

YEAR OF ESTABLISHMENT Acquired majority stake in Hutch Essar in

India, by buying out complete stake of Hutch

in 2007, Essar is still minority stakeholder in

company.

COMPANY PROFILE Vodafone India is a member of the Vodafone

Group and commenced operations in 1994

when its predecessor Hutchison Telecom

acquired the cellular license for Mumbai. The

company now has operations across the

country with over 150 million customers.

Vodafone India has firmly established a

strong position within the Vodafone Group too,

making it the largest subscriber base globally.

This journey is a strong testimony of



24

Vodafone‟s success in a highly competitive

and price sensitive market.

Vodafone India has been awarded the Most

Admired Telecom Operator and Best 3G

Operator at the recent Telecom Operator

Awards 2012. The company has also received

the globally recognized prestigious „Product

of the Year 2012‟ consumer award for

Vodafone Apps Store in the Mobile Services

Category. In another survey conducted by

Nielsen, Vodafone India was the only telecom

player in the Top 10 „Most Exciting Youth

Brands‟ in India. Vodafone India also features

in the Top 10 „Most Trusted Brands in India‟

for 2011, in a survey conducted by a leading

financial daily


NETWORK

Vodafone owns and operates networks in over

30 countries and has partner networks in over

40 additional countries. Its Vodafone GlobalEnterprise division provides

telecommunications and IT services to

multinational corporate clients in over 65

countries. Vodafone also owns 45% of Verizon

Wireless, the largest mobile

telecommunications company in the United

States measured by subscribers

ACQUISITION / STRATEGIC ALLIANCE Vodafone acquires a 67% stake in

Hutchison Essar for $10.7 billion. The

company is renamed Vodafone Essar.

http://en.wikipedia.org/wiki/Verizon_Wireless


http://en.wikipedia.org/wiki/United_States








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'Hutch' is rebranded to 'Vodafone'

Vodafone Group buys out its partner

Essar from its Indian mobile phone

business. It paid $5.46 billion to take

Essar out of its 33% stake in the Indian

subsidiary. It left Vodafone owning

74% of the Indian business

Acquired BPL Mobile operations in 3

circles. This left BPL with operations

only in Mumbai, where it still operates

under the brand 'Loop Mobile'

In 2008,, Vodafone acquires the

licenses in remaining 7 circles and has

starts its pending operations in Madhya

Pradesh circle, as well as in Orissa,

Assam, North East and Bihar.

FUTURE PROSPECT Vodafone India provides 2.75G services based

on 900 MHz and 1800 MHz digital GSM

technology. Vodafone India

launched 3G services in the country in the

January-March quarter of 2011 and plans to

spend up to $500 million within two years on

its 3G networks.

http://en.wikipedia.org/wiki/Madhya_Pradesh


http://en.wikipedia.org/wiki/2.75G



http://en.wikipedia.org/wiki/2.75G





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IDEA CELLULAR-

NAME OF THE COMPANY Idea


COMPANY PROFILE Idea Cellular, usually referred to as Idea, is an

Indian mobile network operators based

in Mumbai, India. Idea is the 4th largest

wireless carrier in Indian market with over 100

million customers and also provides broadband

Internet to its customers.

The company has its retail outlets under the

"My Idea" banner. The company has also been

the first to offer flexible tariff plans for prepaid

customers. It also offers GPRS services in

urban areas. Idea Cellular won the GSM

Association Award for "Best Billing and

Customer Care Solution" for 2 consecutive

years. IDEA Cellular has been recognized as

the 'Most Customer Responsive Company' in

the Telecom sector, at the prestigious Avaya

GlobalConnect Customer Responsiveness

Awards 2010


NETWORK

PAN INDIA 3G COVERAGE-

Airtel, Vodafone and Idea have begun

collaborating to provide 3G coverage to

their customers pan India. The

http://en.wikipedia.org/wiki/Mobile_network_operators

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Broadband_Internet










http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Mobile_network_operators



27

agreement aims to provides for these

companies to offer 3G services to their

customers in circles where they have

not won any spectrum. It is expected

that the 3 companies will be able to

provide 3G services in all circles in

India except orissa where the three have

not won any spectrum.

ACQUISITION / STRATEGIC ALLIANCE Merged with Tata Cellular Limited in 2001,

thereby acquiring original license for the

Andhra Pradesh Circle Acquired RPG Cellular

Limited and consequently the license for the

Madhya Pradesh (including Chattisgarh)

Circlein 2001 In 2004 acquired Escotel,

incumbent cellular service provider in

Haryana, UP(W) & Kerala and new licensee in

HP Acquired Escorts Telecommunications

Limited (subsequently renamed as Idea

Telecommunications Limited)

in 2006 Merger of seven subsidiaries with Idea

Cellular Limited in 2007.On 19 May 2010, the

3G spectrum auction in India ended. Idea

paid 5768.59 crores for spectrum in 11

circles.

FUTURE PROSPECT The operator announced that IDEA 3G services

will be available in 4000 towns by the end of

2012.



28

TATA DOCOMO-

NAME OF THE COMPANY Tata Docomo

YEAR OF ESTABLISHMENT NOV 2008

COMPANY PROFILE It came into existence because of the strategic

joint venture between Tata Teleservices and

Japanese telecom giant NTT Docomo in

November 2008.

It is the country‟s six largest operator in terms

of subscriber base.

Tata Docomo launched GSM services on 24

June 2009. It first launched in South India and

there after other part of the country.


NETWORK

It operates in 18 telecom sector.

It became the first private sector telecomcompany (third overall) to launch 3G services

in India, with a 20 city launch.

ACQUASITION / STRATEGIC

ALLIANCE

It has a strategic alliance with Japanese NTT

docomo.

FUTURE PROSPECT It is planning to launch GSM services in

Assam and Jammu & Kashmir.

It is planning to enhance its customer base and

attract younger generation.

http://en.wikipedia.org/wiki/South_India

http://en.wikipedia.org/wiki/South_India



29

AIRCEL-

NAME OF THE COMPANY Aircel


COMPANY PROFILE Aircel is an Indian mobile company founded in

1999.its headquarter is in Chennai. It is India‟s

fifth largest GSM mobile service provider. It

has a market share of 6.72% among the GSM

operators in the country.

Aircel has won many awards for its services.

Aircel was honored at the World Brand

Congress in 2009

Brand leadership in telecom

.Marketing campaign & Marketnig

prfessional

GLOBAL PRESENCE It operates in 13 circle of the country and

planning to expand its operation.

ACQUISITION / STRATEGIC ALLIANCE In December 2003, it acquired RPJ group

which had operation in Chennai circle.

FUTURE PROSPECT Planning to enhance its subscriber base. it is

planning to have operation in all 23 circle.



30

UNINOR-

NAME OF THE COMPANY Uninor


COMPANY PROFILE The company is a joint venture

between Telenor Group, a telecommunications

company of Norway, and Unitech Group, an

Indian real estate company. Telenor owns a

controlling majority stake in the company

(67.25%), which has been branded Uninor in

the Indian market. It has a subscriber base of

42.43 million customer as of march 2012.

GLOBAL PRESENCE/MARKETING

NETWORK

Uninor services are commercially available in

13 circles across India. With a „value for

money‟ proposition in the market, Uninor

targets youth and other communities within the

Indian mass market. The company has more

than 22,000 partners in India. Uninor products

and services are available from a more than

375,000 retail outlets serviced by 1,900

distributors all over the country.

ACQUISITION/ STRATEFIC ALLIANCE It has a joint venture with Telenor a telecom

company from Norway .

FUTURE PROSPECT Planning to enhance its market share. Uninor is

targeting an 8% pan-India market share, and

to reach at break-even at the end of 2012 and

obtain positive operating cash flow till 2014.

http://en.wikipedia.org/wiki/Telenor_Group

http://en.wikipedia.org/wiki/Norway

http://en.wikipedia.org/wiki/Norway

http://en.wikipedia.org/wiki/Telenor_Group



31

LOOP MOBILE-

NAME OF THE COMPANY Loop mobile

YEAR OF ESTABLISHMENT 1994 as a BPL mobile.

COMPANY PROFILE Loop Mobile (Formerly BPL Mobile), usually

referred to as LOOP is a mobile phone service

provider in India. It offers

both prepaid and postpaid GSM cellular phone

coverage in 21 telecom circles.

GLOBAL PRESENCE it operates in 21 telecom circle in India. It

holds 0.37 market share of Indian telecom

industry.

S TEL-

NAME OF THE COMPANY S Tel

YEAR OF ESTABLISHMENT DEC 2009

COMPANY PROFILE S Tel Private Limited is a GSM based cellular

operator in India. It is owned jointly by C

Sivasankaran (51%) and Bahrain

Telecommunications (49%). S Tel has

approximately 3.6 million subscribers as of

February 2012.

GLOBAL PRESENCE It has a unified services access license to

operate in 6 category C circle.

http://en.wikipedia.org/wiki/Mobile_phone

http://en.wikipedia.org/wiki/Service_provider


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Prepaid_mobile_phone

http://en.wikipedia.org/wiki/Postpaid

http://en.wikipedia.org/wiki/GSM


http://en.wikipedia.org/wiki/Mobile_network_operator



http://en.wikipedia.org/wiki/Bahrain_Telecommunications









http://en.wikipedia.org/wiki/Postpaid

http://en.wikipedia.org/wiki/Prepaid_mobile_phone




http://en.wikipedia.org/wiki/Mobile_phone



33

The opening of the sector has not only led to rapid growth but also benefited the consumers

through low tariffs as a result of intense competition. Telecom sector has witnessed a continuous

rising trend in the total number of telephone subscribers. From a mere 22.81 million telephone

subscribers in 1999, the number increased to 846.33 million at the end of March, 2011. The total

number of telephones stands at 951.34 million at the end of March'12 showing addition of

105.01 million during the period from April to March'12. Wireless telephone connections have

contributed to this growth as their number rose from 165.09 million in 2007 to 811.60 million in

March, 2011 and 919.17 million at the end of March'12. The wire line connections have

however, declined from 40.77 million in 2007 to 32.17 million in March, 2012.

WIRE LINE vs. WIRELESS-

The growth of wireless services has been substantial, with wireless subscribers growing at a

Compounded annual growth rate (CAGR) of 42.7% since 2007. Wireless has overtaken wire

lines. The share of wireless phones has increased from 80.19% in 2007 to 96.47% in March'12.

On the other hand, the share of wire line has steadily declined from 19.81% in 2007 to 3.53% in

March'12. Wireless phones have increased as they are preferred because of their convenience and

affordability. As a result, telephones today have come within the reach of the common man.

TOTAL NUMBER OF GSM SUBSCRIBERS-

Total Wireless subscriber base increased from 911.17 Million in February 2012 to 919.17

Million at the end of March 2012, registering a growth of 0.88%. Wireless subscription in Urban

Areas increased from 594.11 million in February 2012 to 595.90 million at the end of March

2012. The subscription in Rural Areas increased from 317.06 million to 323.27 million during

the same period. This shows higher growth in Rural Subscription (1.96%) than Urban

Subscription (0.30%).Private Operators hold 88.65% of the wireless market share where as

BSNL and MTNL, two PSU operators hold only 11.35% market share. Total no. of GSM

subscriber base as of March‟12 was 664.08 million. Among them Airtel was leading the market

with 181.28 million subscribers, UK based Vodafone was following Airtel with 150.47 million

subscriber. Idea has got no.3 position with 112.72 million subscribers.



34

March‟12 has been proved very good month for operator like Airtel(added 2.5 million subscriber

only in this month), Idea (added 2.01 million subscribers) Uninor( added 1.29 million

subscribers), while for some player like Aircel, Videocon it was very difficult month, because

both the player has lost their market share.

In this month the total number of GSM subscribers base reached to 6.87 million with 1.04%

increase from previous ( feb‟12) month.

GSM SUBSCRIBERS FIGURE OF LAST 6 MONTH (IN MILLION)-

OCT‟11 NOV‟11 DEC‟11 JAN‟12 FEB‟12 MAR‟12

625.41 632.08 639.64 648.08 656.85 664.08

In this we see the growth of GSM subscribers on monthly basis; here the data of past six months

that are showing the growth. Starting with oct‟11 when the total subscriber base was 625.41

million it reached to the 664.08 million in march. Between Dec‟11 to Jan 11 it has grown the

most.

GSM SUBSCRIBER’S ADDITION IN LAST SIX MONTH (IN MILLION)

OCT‟11 NOV‟11 DEC‟11 JAN‟12 FEB‟12 MAR‟12

7.12 6.68 7.55 8.44 8.77 6.88

This table is presenting the addition of subscribers on monthly basis, as in oct‟11 it added 7.12

million GSM subscriber, after that in nov‟11 it added more 6.68 million new subscriber and at

end of year 2011 it added 7.55 million subscribers. the year 2012 has been proved good for

telecom players so far because in jan‟12 it added new 8.44 million subscriber, in feb‟12 it broke

the record of jan‟12 by adding 8.77 million new subscribers. In march it added 6.88 million

subscriber that is good number



35

CIRCLE WISE

NUMBER OF GSM SUBSCRIBERS AS OF MARCH’12(in millions)

METRO CIRCLE A CIRCLE B CIRCLE C

77.27 228.69 262.69 95.92

If we see circle wise subscribers then we have maximum no. of subscribers in B Circle

( Haryana,Madhya Pradesh, UP East, UP west, Westbangal, Punjab,Kerla and Rajasthan) that is

262.69 million subscribers. Circle A that includes Andhra Pradesh, Tamilnadu, Gujrat ,

Maharastra and Karnataka comes at second position with 228.69 million subscribers. Circle C is

on third position with 95.92 million subscribers and Metros with 77.27 million are on fourth

position.

NO. OF GSM SUBSCRIBERS ADDITION IN MARCH’2012(in millions)

METRO CIRCLE A CIRCLE B CIRCLE C

-0.1 2.06 3.39 1.53

In the month of MARCH‟12 6.88 million subscriber has been added in all the circle, circle „B‟

has added 3.39 million subscribers, circle „A‟ has added 2.06 million subscribers, circle‟C‟ has

added 1.53 million subscribers but Metros has lost its subscribers by 0.1 million in this month.



36

MOBILE NUMBER PORTIBILITY (MNP)

Mobile number portability is a process that enables the subscribers to change their operators

without changing their mobile number. It provides a convenient way for subscribers to retain

their number. What used to happen earlier when MNP was not there if somebody like opt other

operator he or she had to go to other operator and purchased anew SIM card of different number,

it was quite hectic and problematic, because once you have distributed a number to whom you

are known to and now again send them your new number, in between what used to happened

people often miss their important contact because of the number.

Mobile number portability (MNP) has become a boom for the subscribers those who are not

satisfy with their service provider, now they can change their number without hesitation of losing

the number what they have.

LAUNCH OF MNP IN INDIA

Mobile number portability was launched in India at 20th January 2011 by telecom minister Mr.

Kapil sibbal in the state of Haryana. It has become a boom not for only subscribers but for late

entrant private companies, new companies by keeping their call cost, tariff low tantalizing the

subscribers in the country to enhance their subscriber base and they are getting positive response

so far big player like Tata, Reliance and BSNL losing their customer base . The Government had

announced the guidelines for Mobile Number Portability (MNP) Service License in the country

on 1st August 2008 and had issued a separate License for MNP service in March 2009. The

Department of Telecommunication (DoT) had issued licenses to two global companies (M/s

Syniverse Technologies Pvt. Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt.Ltd.) for implementing the service

MNP in Indian market has the enhanced the level of competition, players is not only striving

hard for acquire new customer but retain existing one. So companies are putting a lot of effort to



37

their customer service, they know very well that if they do not serve their customers well they

will leave the company that will affect at their revenue.

MNP has proven one thing for the telecom operators that customer is really the king of market if

you fail to serve him well, he will leave. Companies are trying to retain their customer but thetantalizing offer which is being made by their competitor is not letting customer to stay with their

existing one, companies like Airtel, Idea, Vodafone who has competitive advantages over other

making the full use of MNP.

PROCESS OF MNP IN INDIA

PORT REQUEST-

1. Send a SMS to 1900 in following format:

PORT (YourMobileNumber)

e.g. PORT 9999999999

2. You will get a SMS reply that contains a unique porting code.

3. SMS to the preferred operator quoting the unique code. This code is valid only for a few

days, and one must apply again if it expires.

4. Your existing operator will check with new operator & if there are no dues then

approval will be given for porting.

5. You will get a SMS on the time & date when porting will take place. Rules mandate that

process be completed within 4 days of applying.

6. After porting is complete, wait for a SMS from your new operator confirming the switch.

Your phone may be dead for about 2 hours when the porting takes place.



38

7. Service provider may charge a porting fee up to Rs.19.

ELEAGIBILITY & OTHER CONDITION-

1. You are allowed to move to another mobile service provider only after 90 days of the

date of activation of your mobile connection or from the date of last porting of your

mobile number, whichever is applicable.

2. You are allowed to change mobile service provider within the same service area only.

3. If you are a postpaid subscriber, please ensure that you have paid all the dues as per your

last bill (You will have to sign an undertaking in the Porting Form also).

4. If you are a Pre-paid subscriber, please note that the balance amount of talk time, if any,

at the time of porting will lapse.

STATUS OF MNP IN INDIA

People in India are more willing to change their current operator if they are having any kind of

problem related with service and all. They never think twice before opting a new operator. If we

talk about the fact and figure the till march 2012, 41876005 port request had been sent. So we

can say that people are making the maximum use of portability. If we see the data of last three

months we find that the port request has increased month to month, taking the data of January

‟12 in this month port request was 32788738 and Feb ‟12 it was 37111247 that was 4322509 was

higher than what it was in Jan‟12. In March it reached to 41876005 that are 4764758 h igher than

what it was in Feb‟12. So we see the increase month to month in port request.



39

MNP STATUS AS PER SERVICE AREA IN JANUARY’12

Service area wise MNP status at the end of January 2012

Zone-1 Zone-2

Service Area No. of

porting

request

Service Area No. of porting

request.

Delhi 1545604 Andhra Pradesh 3043938

Gujarat 3039206 Assam 71273

Himachal Pradesh 117986 Karnataka 3394761

Haryana 1483752 Kerla 1698063

Jammu&Kashmir 5887 Kolkata 683896

Maharastra 2569554 Madhya Pradesh 2020605

Punjab 1278197 North East 20327

Mumbai 1163498 Bihar 698107Rajasthan 2717109 Orissa 732249

UP East 1697080 Tamilnadu 2000504

UP West 1821896 West Bangal 986046

Total 17438969 15349769

In this table see the no. of port request which had been made in Jan‟12 service area wise. In this

month 32788738 request had been made. In jan‟12 most of the port request had been sent from

the zone -1 that is 17438969, and from zone -2 15349769 port request had been sent. If we talk

about the Zone-1 most of the request had been sent from Gujrat that is 3039206 and Maharastra

comes on 2nd position .least port request had been sent in this month from Jammu&Kashmir that

is 5887.

If we talk about the Zone-2 Karnataka has topped the list with 3394761 port request in the month

of jan‟12 Andhra Pradesh comes on second position with 3043938 port request in the same

month.



40

MNP STATUS AS PER SERVICE AREA IN FEBRAURY’12

Service area wise MNP status at the end of Febraury 2012

Zone-1 Zone-2

Service Area No. of

porting

request


request.











Total 19829708 17281539

In this table we see the no. of port request which had been sent in Feb‟12 that is higher than what

it was sent in Jan‟12. In Feb ‟12 it reached to 37111247 from 32788738 in Jan. if we talk about

the Feb‟12 once again most of request has been sent by zone -1, once again Gujrat in zone-1

topped the list. In zone -2 most of the port request had been sent from Karnataka that is 3940238

that is the highest port request sent by a service area between zone-1 and zone-2.

Port request has increased from both of the zone, in Jan‟12 the port request had been sent by

zone -1 was 17438969 and in Feb it reached to 19829708, and in zone- 2 earlier it was 15349769

but in Feb‟12 it reached to 17281539. In Feb‟12 4322509 more request had been sent than a

month earlier.



41

MNP STATUS AS PER SERVICE AREA IN MARCH’12

Service area wise MNP status at the end of MARCH 2012

Zone-1 Zone-2

Service Area No. of

porting

request


request.











Total 22396291 17281539

In this table we see the total no. of port request had been sent in the month of March‟12 it was

41876005 that was higher than what it was sent in the Feb‟12, 4764758 more port request had

been sent in the month of March, so we see the port request in ascending form.

If we talk about the March‟12, from zone -1, the most of the port request had been sent, once

again in this zone Gujrat with 3885145 request leading the rest. Least request had been sent from

Jammu&Kashmir. In zone-2 the no. of port request is 17281539 that is higher than last month, in

this zone the Karnataka is leading the rest with 4529287 port request.



42

TOP GAINER OF MNP SERVICES-

Idea cellular a company from Aditya Birla group has emerged as the highest gainer of MNP

services as on 31st March‟2012 with a net addition of 3.32 million customers. Idea has emerged

as the most favorable telecom operator in the country. If we talk about the Port-in and Port-out

request which had been sent by the customer that is 9,297,896 and 5,974,318 respectively. It

means that 3323578 people want to opt Idea.

If we talk about other gainer that is Vodafone and Airtel, they are also on the verge of gaining

customers. Vodafone has emerged as the second highest gainer of MNP services by adding 2.89

subscribers as on 31st March‟2012.if we talk about the Port-in and Port-out request of Vodafone

that is 11,040,863 and 81,50,730 respectively. It means 2890133 subscribers are willing to opt

Vodafone.

Airtel has emerged as the 3rd largest gainer of MNP services in the country, Airtel has added 1.2

million subscribers as on 31st march 2012, Port-in request for Airtel was 10827376 while port-

out request was 9,613,630. It means that 1213746 customer want to use Airtel services.

TOP LOOSER OF MNP SERVICES

Reliance Communication (GSM) has lost maximum number of subscribers as of March‟2012, it

lost nearly 1.35 million subscribers, and in CDMA segment it is also not able to retain the

existing customer, in CDMA segment it lost nearly 1.48 million subscribers as on March‟2012, if

we talk about Reliance GSM services it received nearly 3.14 million port-out request in

comparison to 1.79 million Port-in request. Whether Reliance CDMA received 1.72 million Port-

out requests as against 0.24 million Port-in request.

If we talk about other looser Tata teleservices comes on the second number, Tata GSM has lost

0.51 million subscribers. Tata teleservices has received 3.40 million Port-out request as



43

compared to 2.89 million Port-in request. State-run BSNL (GSM) had 2.45 million port-out

requests compared to 1.68 million port-in applications. MTNL, which operates in Delhi and

Mumbai circles, had 0.13 million port-out requests compared to 0.03 million applications

wishing to join the network .



44

DATA ANALYSIS AND INTERPRETATION-



45

Observation-- In it we see the 85% people have subscribed GSM services and 15% people have

subscribed CDMA services. People are willing to opt GSM because of it cost less while

switching to other number or operator.

GSM85%

CDMA

15%

TYPE OF SERVICES IS BEING USED BY

SUBSCRIBERS

GSM

CDMA



46

Observation- In this we see the people like Airtel most,airtel has maximum market share 22%,

and Vodafone is the second choice of the people, 18% people are using this network. Reliance

has got the third position in this race with 15% market share in hand. New entrant Videocon has

least market share.

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

1.00%2.00%

22.00%

15.00%

18.00%

OPERATORS ARE BEING OPTED BY

SUBSCRIBERS.

Idea

BSNL

Tata

Aircel

Uninor

sistema

Videocon

MTNL

Airtel

Reliance

Vodafone



47

Observation- It has been observed that mostly people trust on their friends& Relative while

choosing any subscriber. 15% people get inspired by an advertisement in newspaper, 10% people

listen to Retailer, think that they know the operators well, 10% rely on TV commercial, 20%people take the advantage of internet to make a decision, 10% people believe in magazine and

5% people explore other sources to opt an operator.

newspaper

15% magazine

10%

Retailer

10%

Friends30%

TV

10%

Internet

20%

other

5%

Source has been used to purchase mobile

connection

newspaper

magazine

Retailer

Friends

TV

Internet

other



48

Observation- It has been observed that 30% people have been using their current operator for

more than 1 year, 25% people have been using it for more than 2 year,15% that were mainly

professional using their current operator for more than 3 year, and 30% people were new

subscriber using their service operator less than a year.

more than 1 year

30%

more than 2 year

25%

more than 3

yaear

15%

none

30%

DURATION OF USING CURRENT OPERATOR

more than 1 year

more than 2 year

more than 3 yaear

none



49

Observation- Majority people (75%) use prepaid connection while some people who belongs to

upper-middle class or any other professional use postpaid connection. That constitutes 25% of

subscribers.

POSTPAID

25%

PREPAID

75%

TYPE OF SUBSCRIBERS ACCORDING TO MODE

OF PAYMENT

POSTPAID

PREPAID



50

Observation- It has been observed that 65% People were not willing to port, we can say that

they might be satisfy with their current operator and 35% people were willing to change their

current service provider.

35%

65%

SUBSCRIBERS WILLING TO PORT

YES

NO



51

Observation- it has been observed that most of the people are willing to opt airtel if they port in

future , only 5% people are willing to port in BSNLthat is only public sector undertaking, 25%

people willing to port in Vodafone, 20% people willing to port in Reliance and 15% people are

willing to opt different-2 mobile operator.

BSNL

5%

AIRTEL

35%

VODAFONE

25%

RELIANCE

20%

OTHERS15%

SUBSCRIBERS CHOICE

BSNL

AIRTEL

VODAFONE

RELIANCE

OTHERS



52

Observation- it has been seen that mostly people believe in reasonable price and excellent

connectivity, most of the people are ready with compromise with price and other value added

services but not the connectivity.

Price

26%

Connectivty

62%

VAS

11%

Others

1%

PREFERENCES OF SUBSCRIBERS WHILE

PURCHASING A CONNECTION

Price

Connectivty

VAS

Others



53

Observation- In this we see that 30% people believe that the services of Reliance is cheap,

while 25% believe that Vodafone has a best pricing strategy, 20% says Airtel has nice pricing

strategy ,10% people think BSNL is providing its services at reasonable price.15% think thatother private operator is charging reasonable price for services.

BSNL

15%

Airtel

20%

Vodafone

25%

Reliance

30%

Others

10%

SUBSCRIBER'S CHOICE ACCORDING TO PRICE

BSNL

Airtel

Vodafone

Reliance

Others



54

Observation- In this we see that 35% people believe that the quality of Airtel‟s service is

excellent, 30% people believe that Vodafone is the best service provider, 20% think Reliance is

good in services 10% think BSNL is a good service provider and while 5% people think thatother new entrant providing good quality of services.

BSNL

10%

Airtel

35%

Vodafone

30%

Reliance

20%

Others

5%

SUBSCRIBER'S CHOICE ACCORDING TO

QUALITY OF SERVICES

BSNL

Airtel

Vodafone

Reliance

Others



55

Observation- In it we see that 30% people think that the kind of Value added services which is

being provided by Vodafone is best, 20% people think Reliance is better, 15% think Airtel is

better, 10% people think BSNL is good while 25% people think other operators are providing

good value added services.

BSNL

10%

Airtel

15%

Vodafone

30%

Reliance

20%

Others

25%

SUBSCRIBER'S CHOICE ACCORDING TO VAS.

BSNL

Airtel

Vodafone

Reliance

Others



56

SWOT ANALYSIS-

STRENGTH-

Companies are able to provide services at lower rate.

Low entry cost in subscribing the service has become the greatest strength.

Value added services, like internet and other paving the way to grow.

WEAKNESS-

High tariff rate, call rate of mobile companies.

Companies have to face tough competition in market, big player gaining competitive

advantage over small player.

User experience with the internet on mobile not ideal because of screen size, keypad and

slow network speed.

OPPORTUNITY-

Indian telecom market is full of potential; every company is getting full opportunities to

grow.

The income of the people increasing in rural area and they are willing to opt the telecom

services, companies need to tap this untapped market.

THREAT-

Foreign player fear to enter into market because of 2G scam and cancellation of the

license by Supreme Court.

MNP has become major threat most of the companies losing market share because of it.



57

CONCLUSION

Types of service is being used by subscribers-

In the study it has been found that most of the people prefer GSM services because low

handset entry cost, in the study 75% people were using GSM services.

Failure of CDMA services-

People were less willing to take CDMA services because of high handset entry cost.

Postpaid Vs. Prepaid

In the study, it has been found that most of the people use prepaid mobile services

because they think it is a easy mode of payment.

Portability-

In the study it has been found that most of the people were satisfy with their service

provider, some were not happy with their service provider.

It has been seen that portability is increasing day by day.

Status of wire line telephonic services-

Wire line services are on the verge of depletion, the number of wire line connection has

decreased from 40.77 million in March‟07 to 32.17 million in March‟12.

Wire line services are confined to offices; they are being used mostly in the offices.



58

Status of GSM services-

In India, there are more than 664.08 million subscribers.

Private Operators hold 88.65% of the GSM market share where as BSNL and MTNL,

two PSU operators hold only 11.35%.

In Indian GSM market Airtel has emerged as a market leader with more than181.28

million subscribers.

Effect of MNP-

Idea has emerged as a top gainer of MNP services by adding addition of 3.32 million

subscribers as on march‟12.

Reliance Communication (GSM) is most badly affected company because of MNP

services it lost nearly 1.35 million subscribers as on march‟12.

The revenue of the companies is decreasing because of tough competition and low usagemobile services.



59

RECOMMENDATION-

Telecom major should think to launch the services, tariff according to the needs of customer, tosatisfy them and try to make the brand loyal as very soon this blue ocean of Indian telecom

scenario will convert into Red Ocean where the loss of one is gain of other. They should also

think for searching new space or creating a new blue ocean.

Small companies need to take lots of precaution in comparison with their big counterpart, they

need to mull over on their strategy to acquire new customer while retaining existing one.

Mobile number portability (MNP) has become a worst threat for the companies that does not has

competitive advantage over other mostly for small players, so companies should take care of

customer in a such a way so that it should not leave existing operator.

Companies need to work on their customer care department so that they could keep their

customer happy by solving his query in more efficient manner.

Companies should take care of after sale services as well.

Companies need to work on their network as well to provide better customer service.

Companies need to work on tariff plan, SMS plan and data plan to serve the customer well and

gain a competitive advantage.



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BIBILIOGRAPHY

Website-

www.google.com

www.rcom.co.in

www.airtel.in

www.vodafone.in

www.tatadocomo.com

www.trai.gov.in

www.wikipedia.org

News paper-

The Economic Times

The Times of India

The Hindustan Times

Book preferred –

Marketing management- Philip kotler

Marketing management- Rajan Saxena

Research Methodology- C R Kothari

Reports-

TRAI Report (press release no.86/2012) 3rd may 2012

DOT Report (Annual Report 2011-12)

http://www.google.com/


http://www.rcom.co.in/


http://www.airtel.in/


http://www.vodafone.in/


http://www.tatadocomo.com/


http://www.trai.gov.in/


http://www.wikipedia.org/











61

ANNEXURE

QUESTIONNAIRE

For the GSM market survey and customer‟s changing behavior.

Name of the person-________ ___________________________________

Address-_____________________________________________________

Contact no-___________________________________________________

E-mail ID-____________________________________________________

1. What kind of mobile service are you using?

GSM

CDMA

2. Who is your current mobile service provider?

BSNL

Airtel

VodafoneReliance

Others

3. Which of the following information sources have used for the purchase of mobile

services?

Newspaper TV Internet

Magazine Friends Retailer

Others

4. How many years have you been using current mobile operator?1

2

3

None

5. Do you have postpaid or prepaid connection?



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Prepaid

Postpaid

6. If you are asked to port your number to other operator, would you go for that?

Yes

No

7. If so, which operator would you like to opt?

Airtel

BSNL

Vodafone

Reliance

Others

8. What do you see in a brand while purchasing a connection?

Price

Connectivity

Value added services

Others.

9. If you are asked to rate brands according to its Price which operator do you think

provides services at reasonable price?

BSNLAirtel

Vodafone

Reliance

Others

10. If you are asked to rate brands according to its quality of services which operator do you

think provides better quality?

BSNL

Airtel

Vodafone

Reliance

Others.



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11. If you are asked to rate brands according to its value added services which operator do

you think is good?

BSNL

Airtel

Vodafone

Reliance

Others

a study on indian gsm market

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