idea finel project

8/11/2019 Idea Finel Project

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CHAPTER-1

INTRODUCTION

1.1 GENERAL INTRODUCTION

Technological changes in telecommunications and computers have radically changed

the business scenario In turn, the new demands of business have spurred many telecom-

based technological innovations. In order to exploit these innovations for competing in global

markets the business community the world over has been putting pressure on governments

to revise the policy regulation, and structure of the telecom sector. Several countries across

[KRUPANIDHI BUSINESS SCHOOL] [Page 1]


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the world have responded by restructuring the state-controlled telecom service provider,

increasing private participation, and deregulating service provision. The emergent

organizations have attempted to be more responsive to the business needs and have

evolved mechanisms to remain competitive even under tremendous pressures !ehara "##$%

&lynn "##'% (im,(im, and )oon "##'% *aidlaw "##+

ver the past several years, developing countries have also recognized the important

role a responsive, business-oriented, and technologically advanced telecom sector plays in

the growth of the economy. any developing countries now see the constraints of a state

monopoly in telecom as standing in the way of a response to the twin challenges of spurring

internal growth and competing in an increasingly global economy onaldson "##+%

/ussawala "##'% elody "#01% /ain "##2% 3isciotta "##+% Tyler and 4ednarizyk "##5%

Scherer "##+% 6ellenius "##$% 6ellenius "##+7. The process of introduction of new

organizational forms and structures 8esearch assistance provided by s Trupti 3atel is

gratefully acknowledged.

In today9s market customer service and satisfaction has become very important without

which the companies are finding it difficult to complete in the market place.

In early days since people were not keen on service aspects, it was easy for the company to

:ust sell and ;uite. 4ut in today9s market more than sales servicing has been given prime

importance as the life of the product depends on it. This infects helps in rising the attitude

and interest of the customers to buy more and more companies product.


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OBJECTIVES OF THE STUDY:

To analyze the customer response towards Idea =ellular *td. in 4angalore city. To evaluate the 4rand Image opinion of the customer.

To know about the customer acceptance of the product.

To identify customer problem of Idea =ellular *td.

To know how far customer satisfied with company9s product and services.

To know customer preferences and disking regarding of bills.

To know customer perception towards on Idea =ellular *td.

The research was undertaken to gather information from the customers overall

feedback towards Idea =ellular *td. in 4angalore city. The study was restricted only within

4angalore city.

1.2 INDUSTRY PROFILE:

The Indian telecommunications >etwork with ??m telephone connections is the fifth

largest in the world and is the second largest among the emerging economies of


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Y'ar H$+tr, ) In!$an T'&'#"n$#at$n+

"02" Dirst operational land lines were laid by the government near =alcutta seat of4ritish power7

"00" Telephone service introduced in India

"005 erger with the postal system

"#'5 Dormation of Indian 8adio Telegraph =ompany I8T7

"#5' erger of ET= and I8T into the Indian 8adio and =able =ommunication

=ompany I8==7"#+? >ationalization of all foreign telecommunication companies to form the 3osts,

Telephone and Telegraph 3TT7, a monopoly run by the governmentFs inistry

of =ommunications"#02 epartment of Telecommunications T7 established, an exclusive provider

of domestic and long-distance service that would be its own regulator

separate from the postal system7"#01 =onversion of T into two wholly government-owned companiesG the

Bidesh Sanchar >igam *imited BS>*7 for international telecommunicationsand ahanagar Telephone >igam *imited T>*7 for service in metropolitan

areas."##? Telecom 8egulatory


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BSNL:

n ctober ", '$$$ the epartment of Telecom perations, &overnment of India

became a corporation and was renamed 4harat Sanchar >igam *imited 4S>*7. 4S>* is

now India9s leading telecommunications company and the largest public sector undertaking.

It has a network of over +2 million lines covering 2$$$ towns with over 52 million telephone

connections. The state-controlled 4S>* operates basic, cellular &S and =* will

be expanding the network in line with the Tenth Dive-)ear 3lan "##'-#?7. The aim is to

provide a telephone density of #.# per hundred by arch '$$?. 4S>*, which became the

third operator of &S mobile services in most circles, is now planning to overtake 4harti to

become the largest &S operator in the country. 4S>* is also the largest operator in the

Internet market, with a share of '" per cent of the entire subscriber base.

BHARTI:

Established in "#02, 4harti has been a pioneering force in the telecom sector with

many firsts and innovations to its credit, ranging from being the first mobile service

in elhi, first private basic telephone service provider in the country, first Indian company to

provide comprehensive telecom services outside India in Seychelles and first private sector

service provider to launch >ational *ong istance Services in India. 4harti Tele-Bentures

*imited was incorporated on /uly ?, "##2 for promoting investments in telecommunications

services. Its subsidiaries operate telecom services across India. 4harti9s operations are

broadly handled by two companiesG the obility group, which handles the mobile services in

"1 circles out of a total '5 circles across the country% and the Infotel group, which handles the

>*, I*, fixed line, broadband, data, and satellite-based services. Together they have so far

deployed around '5,$$$ km of optical fiber cables across the country, coupled with

approximately ",2$$ nodes, and presence in around '$$ locations. The group has a total

customer base of 1.+2 million, of which 2.01 million are mobile and 200,$$$ fixed line

customers, as of /anuary 5", '$$+. In mobile, 4harti9s footprint extends across "2 circles.

4harti Tele-BenturesF strategic ob:ective is Jto capitalize on the growth opportunities the

company believes are available in the Indian telecommunications market and consolidate its

position to be the leading integrated telecommunications services provider in key markets inIndia, with a focus on providing mobile servicesK.



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MTNL:

T>* was set up on "st


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organizations. !ntil recently, 8eliance was permitted to provide only Jlimited mobilityK

services through its basic services license. owever, it has now ac;uired a unified access

license for "0 circles that permits it to provide the full range of mobile services. It has rolled

out its =< mobile network and enrolled more than 1 million subscribers in one year to

become the country9s largest mobile operator. It now wants to increase its market share and

has recently launched pre-paid services. aving captured the voice market, it intends to

attack the broadband market.

TATA TELESERVICES:

Tata Teleservices is a part of the N"' billion Tata &roup, which has #5 companies, over

'$$,$$$ employees and more than '.5 million shareholders. Tata Teleservices provides basic

fixed line services7, using =< technology in six circlesG aharashtra including umbai7,

>ew elhi, adu, &u:arat, and (arnataka. It has over 0$$,$$$

subscribers. It has now migrated to unified access licenses, by paying a 8s. 2.+2 billion

N"'$ million7 fee, which enables it to provide fully mobile services as well. The company is

also expanding its footprint, and has paid 8s. +."? billion N#$ million7 to oT for "" new

licenses under the I!= interconnect usage charges7 regime. The new licenses, coupled with

the six circles in which it already operates, virtually gives the =< mobile operator a

national footprint that is almost on parwith 4S>* and 8eliance Info comm. The company

hopes to start off services in these "" new circles by *Fs main gateway centers are located at umbai, >ew elhi, (olkata and

=hennai. The international telecommunication circuits are derived via Intelsat and Inmarsat

satellites and wide band submarine cable systems e.g. D*


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cent e;uity, As 3antone Dinevest *imited as investing vehicle of Tata &roup owns +2 per

cent e;uity and the overseas holding inclusive of DIIs, ovember "##2. 4etween '$$$ and arch '$$+,

utch ac;uired further operator e;uity interests or operating licences. 6ith the completion of

the ac;uisition of 43* obile =ellular *imited in /anuary '$$1, it now provides mobile

services in "1 of the '5 defined license areas across the country. utch India has benefited

from rapid and profitable growth in recent years. it had over "?.2 million customers by the

end of /une '$$1.

IDEA:

Indian regional operator IE< =ellular *td. has a new ownership structure and grand

designs to become a national player, but in doing so is likely to become a thorn in the side of

8eliance =ommunications *td. IE< operates in eight telecom Jcircles,K or regions, in

6estern India, and has received additional &S licenses to expand its network into threecircles in Eastern India -- the first phase of a ma:or expansion plan that it intends to fund

through an I3, according to parent company


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COMPANY MAR0ET SHARES

Can, M$&&$n S"%+N( 234

5 +*ar'

4S>* +$.5 20.0

8eliance 1." 0.#

4harti 2.? 0.5

T>* +.# ?.'

utchison '.# +.'

Idea =ellular '." 5.$

43* ".+ '."

Tata Teleservices ".5 ".#

Spice ".$ ".+

Escotel $.0 "."

Dascel $.0 "."


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Indian telecommunications today benefits from among the most enlightened regulation

in the region, and arguably in the world. The sector, sometimes considered the Jposter-boy

for economic reforms,K has been among the chief beneficiaries of the post-"##" liberalization.

!nlike electricity, for example, where reforms have been stalled, telecommunications has

generally been seen as removed from Jmass concerns,K and thus less sub:ect to electoral

calculations. arket oriented reforms have also been facilitated by lobbying from India9s

booming technology sector, whose continued success of course depends on the ;uality ofcommunications infrastructure.

espite several hiccups along the way, the Telecom 8egulatory


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3osts and Telegraph. Dor a time he also even considered corporatizing the T, before

succumbing to union pressure. In a compromise, &andhi created two T-owned

corporationsG ahanagar Telephone >igam *imited T>*7, to serve elhi and 4ombay, and

Bidesh Sanchar >igam *imited BS>*7, to operate international telecom services. e also

introduced private capital into the manufacturing of telecommunications e;uipment, which

had previously been a T monopoly.

These and other reforms were limited by the unstable coalition politics of the late

"#0$s. It was not until the early "##$s, when the political situation stabilized, and with the

general momentum for economic reforms, that telecommunications liberalization really took

off. In "##+, the government released its >ational Telecommunications 3olicy >T3-#+7,

which allowed private fixed operators to take part in the Indian market for the first time

cellular operators had been allowed into the four largest metropolitan centers in "##'7.

!nder the government9s new policy, India was divided into '$ circles roughly corresponding

to state boundaries, each of which would contain two fixed operators including the

incumbent7, and two mobile operators.

ver the years, T8


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The gradual easing of the original duopoly licensing policy, allowing a greater number of

operators in each circle%

The legalization, in '$$', of I3 telephony a move that many believe was held up due to

lobbying by BS>*, which feared the conse;uences on its international monopoly7%

The introduction in '$$5 of a =alling 3arty 3ays =337 system for cell phones, despite

considerable opposition including litigation7 by fixed operators%

* sought permission from T8


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une;ual regulatory treatment for two kinds of operators who were in fact offering the same

service. The real victim, of course, was the Indian telecommunications market, which suffered

from investor perceptions of regulatory confusion and operator in-fighting. In late '$$', for

example, thousands of mobile users in >ew elhi were for a time cut off from the fixed-line

network when T>* shut down interconnection for cellular companies. T>* later attributed

the incident to a Jtechnical snag.K7

%. GRO7TH AND PRESENT STATUS OF THE TELECOM INDUSTRY

In '$$2-'$$1, the telecom industry witnessed a growth of '"@ with a total revenue of

8s. 01,?'$ crores, and the total investment rising to 8s. ',$$,11$ crores. It is pro:ected that

the telecom industry will be en:oying over "2$@ growth in the next +-1 years. The growth

also re;uires a huge investment by the players in the sector. 4harti


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#. FUTURE OF THE INDUSTRY

6ednesday, >ovember $?, '$$?G Traditional telecom carriers can no longer rely onconventional competitive tactics such as price cuts, promotions and basic product bundling to

maintain their edge in the consumer segment, warned &artner. The research firm also said

that non-traditional telecom players like okia, which have a strong

understanding of consumers, are adopting new business models that are forcing carriers to

reassess their approach and service delivery. Daced with this competition, traditional telecom

carriers will attempt to transform themselves by primarily exploiting content, but &artner

predicts that more than 0$ per cent will fail.OThe players that will be amongst the successful '$ per cent will be the ones that

provide a consumer-centric experience, for example, through interactive TB, where users will

be able to chat online while watching their favourite TB programmes,O said artin &utberlet,

vice president, &artner.

wning infrastructure initially gives telecom carriers some competitive edge but this is

mitigated by non-traditional competitors that don9t own a network but bundle their services

attractively. O


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CHAPTER-2

PROFILE OF THE ORGANI@ATION



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2.1 ORIGIN OF THE IDEA CELLULAR LTD.

I!'a C'&&"&aris a wireless telephonycompany operating in various states in India. It

initially started on arch "+,"##2 and is one of the leading &S mobile services operators.ead;uartered in umbai, it has licenses to operate in all '' service areas across the

country, though commercial operations are currently in "1 services areas. 6ith a customer

base of over +5.$' million subscribers, the operations cover the states of aharashtra, &oa,

&u:arat, 8a:asthan, elhi, aryana, imachal 3radesh, !ttaranchal, !ttar 3radesh, adhya

3radesh, =hhattisgarh, adu will

become operational during '$$0-$#, and Idea will then cover approximately #$ per cent of

the country9s telephony potential.

IE< en:oys a market leadership position in many of its operational areas. It offers

&38S on all its operating networks for all categories of subscribers, and was the first

company in India to commercially launch the next generation E&E technology in elhi in

'$$5.


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the P4est 4illing and =ustomer =are Solution9 both in '$$1 and in '$$? in the face of

international competition.

In '$$? IE< was listed on the >ational Stock Exchange >SE7 and the 4ombay

Stock Exchange 4SE7.

2.2GRO7TH AND DEVELOPMENT OF THE IDEA CELLULAR LTD.

6e were incorporated as 4irla =ommunications *imited on arch "+, "##2 andgranted a certificate of commencement of business on


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n ctober '1, '$$1, 32


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MAJOR EVENTS:

T*' #*rn&6, ) ', '('nt+ ) t*' Can, )r $n#rrat$n $+ +'t "t %'&8:1;;9:Incorporated as 4irla =ommunications *imited btained licenses for providing &S-

based services in the &u:arat and aharashtra =ircles following the original &S license

bidding process

1;;=:=hanged name to 4irla T3K7

2: erged with Tata =ellular *imited, thereby ac;uiring original license for the


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Birla AT&T commence Cellular operations Maharashtra & Gujarat

1;;;:

igrated to revenues share license fee regime under >ew Telecommunications 3olicy

O>T3O7

2:

erged with Tata =ellular *imited, thereby ac;uiring original license for the


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MoU for merger between Birla AT&T and Tata Cellular imited Andhra !radesh signed "#an4

21:


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btained license for providing &S-based services in the elhi =ircle following the

fourth operator &S license bidding process

Ac$uired %!G Cellcom service provider in Madhya !radesh "'eb( Awarded

22:

=hanged name to Idea =ellular *imited and launched OIdeaO brand name

=ommenced commercial operations in elhi =ircle 8eached the one million subscriber mark



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Brand )*+A launched *elhi operations commence ",ov(

23:

8eached the two million subscriber mark

2


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Turned 3rofit 3ositive 6on an


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6on an award for the O=adu C =hennai, 6est 4engal,

rissa, (olkata, orth East and /ammu C (ashmir adu Idea expanded services into rissa

2.3 PRESENT STATUS OF THE IDEA CELLULAR LTD.



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The entire Indian region is divided into '' in some places it is mentioned '57 circles that

are divided into three categories based on their economic potentialG


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8a:asthan - 1?229?=

imachal 3radesh - 11;

umbai - 91?9

4iharC/harkhand - >=3?

Totaling to 01112345or 26207(Approx.) of the total 391,760,569[1]mobile onnetion! in

)ndia.

F"rt* "art'r 'n!'! Mar#* 31? 2;:

!nless stated otherwise, the financial data in this report is derived from our unaudited A

audited consolidated financial statements prepared in accordance with Indian &


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and financial services among others. ver 2$@ of the &roup9s revenues are derived from

overseas operations. The group operates in '2 countries, and is anchored by an

extraordinary force of over "'2,$$$ employees belonging to '2 nationalities. The current

&roup holding of +#."5@ in Idea is made up of%

Ta%&'-2.An! F$6-2.1

uvo *td. '?.$'@

4irla TT oldings 3vt. *td. #."2@

indalco Industries *td. ?.5?@

&rasim Industries *td. 2.2'@

I& oldings 3vt. *td. $.$0@

Tta&


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=4 Ha(' ," 6t arr$at' $n)rat$n a%"t tar$))+ !"r$n6 ,"r+"%+#r$t$n

a7 )es X Y b7 >o X Y

4 Ar' ," +at$+)$'! 8$t* t*' %$&& +,+t'


>4 Ar' ," +at$+)$'! 8$t* t*' %$&& !'&$('r,


;4 Ar' ," +at$+)$'! 8$t* t*' '&,'' %'*a($r $n t*' T'&'+*


14 Ar' ," +at$+)$'! 8$t* t*' ra$n6 )a#$&$t, an! #*ar6'+


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134 7*at $+ ,"r ('ra&& )''&$n6 a%"t t*' I!'a C'&&"&ar

a7


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"7 ----------------------------------------------------------------------------------

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Dat': S$6nat"r'

BIBLIOGRAPHY



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B+ R')'rr'!

& T : 3hilip (otler

! 8ES!8=E T : Tewspapers : The Times f India

agazines : utlook

6ebsites : 888.$!'a#'&&"&ar.#?

888.66&'.#

In!$a#'&&"&'r.#

888.a!$t,a%$r&a6r".#
http://www.idea/http://www.google.com/http://www.idea/http://www.google.com/

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