summer internship report dipak

8/22/2019 Summer Internship Report Dipak

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IMPACT OF MNP ON TELECOM INDUSTRIES IN BAPUNAGAR AREA

1

CHAPTER: - 1

ABOUT THE PROJECT

1.1 EXECUTIVE SUMMARY

The rapid growth in Indian telecom industry has been contributing to Indias GDP at large.

Telecom Regulatory Authority of India was established to regulate and deal with competition

among the service providers. Services like 3G and Portability will help to further increase the

growth rate. The Indian telecommunication industry is one of the fastest growing in the world

and India is become the second largest telecom market in the world by 2010.

India added 113.26 million new customers in 2010-2011, the largest globally. The countrys

cellular base witnessed close to 42% growth in 2010-2011, with an average 9.5 million

customers added every month. It is estimated that telecom industry will generate revenues

worth US$ 43 billion in 2011-12

IN this we have tried to capture the most of areas. Like, History of Telecom Industry, TRAI

role and functions, awareness of Mobile Number Portability, and impact of MNP on telecom

companies,


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1.2 OBJECTIVES OF REPORT

To find out the current scenario of Airtel and other telecom companies

To know the consumer awareness regarding MOBILE NUMBER PORTABILITY

To know the SWOT analysis of Airtel

To know the impact of MNP on telecom companies

Consumer wise comparative analysis of different telecom companies after MNP


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CHAPTER:-2

LITERATURE REVIEW

2.1 HISTORY OF TELECOM SECTOR

History of Indian Telecommunications started in 1851 when the first operational land lines

were laid by the government near Calcutta (seat of British power). In 1883 telephone services

were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in1923.

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: Videsh Sanchar

Nigam Limited (VSNL) for international telecommunications & Mahanagar Telephone

Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy.

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.


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New National Telecom Policy was adopted in 1999 and cellular services were also launched

in the same year. Indian telecom industry has the highest growth rate in the world. A record

5.9 Million new

Mobile phone subscribers were drawn by the Telecom sector in India in the month of August

2006, according to the COAI (Cellular Operators Association of India). India, which is seeing

over 8 million wireless subscribers being added every month (8.62 million in May 2008), is

the fastest growing telephone market in the world. The government has reiterated the target

of 500 million telecom subscribers and 20 million broadband connections by 2010.

1851

* First operational landlines were laid between Kolkata and Diamond Harbour.

1881

* Telephone service introduced in India

1882

* First telephone exchange was opened in Kolkata, Chennai and Mumbai

1883

* Merger telecommunication with postal system

1923

* Formation of Indian Radio Telegraph Company

1947

* Nationalization of all foreign telecommunication companies

to form the Post, Telephone and Telegraph under Governments Ministry of

Communications. Total number of telephone in the country was around 80000


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1960

* First Subscriber Trunk Dialing (STD) was commissioned between Kanpur and Lucknow

1975

* Department of Telecommunication (DOT) was established, separating from the postal

system

1985

* Mobile service was commissioned in Delhi on non commercial basis

1994

* Government announced National Telecom Policy in 1994. Licence issued for providing

mobile phone services in 4 metros. 2 operators were given licence per circle for 10 years

under a fixed licence fee regime.

1995

* Cellular service was commercially launched in India* Mobile licences issued for 19 more circles.

1997

* Telecom Regulatory Authority was created


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1999

* The new telecom policy (NTP 1999) was introduced.

* The Government replaced the fixed annual licence fee with revenue share regime

* Tele density 2%

2000

* The national long distance market (NLD) was opened up to the private sector with noceiling on the number of players.

* BSNL was hived off to form a separate corporate entity

* Wireless Planning and Coordination wing of DoT was created to review and enforce the

spectrum allocation policy.

* The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) were created

* BSNL and MTNL were allowed to offer cellular services

2001

* A fourth cellular operator from the private sector was allowed in each circle to launch

mobile services

2002

* A subscriber linked spectrum allotment procedure was introduced.

* USO fund established to improve the telecom services in the rural sector

* ILD was opened up to private sector without any ceiling on the number of players

* Bharti Airtel got listed in BSE & NSE

* VSNL was privatized


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2003

* Access deficit charges (ADC) was introduced to compensate BSNL for losses incurred in

providing services in rural areas.

* The Calling Party Pays regime was introduced where by subscribers no longer had to pay

for incoming calls.

* The Unified Access License (UASL) Regime was implemented allowing subscribers to

offer fixed / mobile services using any technology.

* RCom rolled out CDMA services which resulted in a tariff war.

* Internet and GPRS were allowed through cellular service providers

2004

* Broadband policy 2004 was unveiled

2005

* The foreign direct investment limit in telecom was raised from 49% to 74%

* Motorola started manufacturing mobile phone in India

* Pure-play tower companies like GTL, Quippo and Essar entered the tower market.

* The trend of recharge coupons with denomination values ranging from Rs 10 to Rs 200 for

low end prepaid users.

* Introduction of lifetime validity schemes on prepaid.

* Aircel was acquired by Maxis

2006

* The Government launched Project Most (Mobile Operators Shared Towers) to promote

passive infrastructure sharing.

* Demerger of tower operations by RCom into Reliance Infratel

* BSNL and MTNL launched te One India Tariff whereby the calls anywhere in the country


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were charged at a flat rate of Re 1.

* India became the 5th country in the world to join the 100 million mobile subscribers club.

* In Aug 2006 India added 5 million subscribers and overtook China to become the fastest

telecom market in the world.

2007

* Roaming rental was reduced to zero

* Dual technology was allowed enabling service providers to offer both GSM and CDMA

under the same licence subject to entry fee of 1651 cr (US $ 366 million)

* Vodafone acquired 67% stake in Hutchison Essar for US $10.9 billion

* Indus Towers was formed by Airtel, Vodafone and Idea.

* 570 applications received for telecom UASL licence and spectrum allocation

* DoT delinked spectrum from the telecom licence and introduced first come first served

basis.

2008

* DoT issued 121 letters of intent for UAS licences.

* Government awarded licence to 6 new playersDatacom,Loop Telecom, Shyam Sistema,

STel, Unitech Wireless and Swan Telecom.

* Active infrastructure sharing permitted, whereby the operators are allowed access to

common antenna, feeder cables, radio access network.

* Tele density reached 26%


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2009

* Bharti Airtel crossed 100 million subscriber mark

* Mobile subscribers in India crossed 500 million mark

2010

* Aircel sold its portfolio of 17500 towers to GTL

* 3G and BWA spectrum auctioned through an open and transparent auction process.Government earned Rs 67719 crore (US $ 15.05 billion) for 3G spectrum and Rs 38543 crore

(US $ 8.6 billion) for BWA spectrum

* Mobile subscriber numbers crossed 650 million

* 3G spectrum allocated to Vodafone, Tata teleservicess, Bharti Airtel, RCom,Idea, Aircel

and STel.


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2.2 DEPARTMENT OF TELECOMMUNICATIONS

The Telecommunication Board consisted of the Secretary Telecommunications, who was the

Chairman with Member (Finance), Member (Operations), Member (Development), Member

(Personnel) and Member (Technology).

1989: The Telecom Commission was constituted.

The Commission has the Dot Secretary as its Chairman with Member (Services), Member

(Technology) and Member (Finance) as its full time members.

The Secretary (Finance), Secretary (Doe), Secretary (Industries) and Secretary (Planning

Commission) are part time members of the Commission.

1986: Department reorganized the Telecommunication Circles with the Secondary Switching

Areas as basic units.

This was implemented in a phased manner.

Bombay and Delhi Telephones were separated to create the new entity called

MahanagarTelephone NigamLtd. (MTNL).


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GSM

August, 1995: GSM entered India.

Historic first cell phone-call was made by Mobile Net-joint venture between Telstra

(Australia) & B.K. Modigroup.

Mobile revolution began in Kolkata.

Handset costs-40,000 & Call tariff-17 rs/min.

CDMA

1996: Tata tele services was the first to launch CDMA mobile services in India with the

Andhra Pradesh circle


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2.3 TELECOM REGULATORY AUTHORITY OF INDIA

January 1997: TRAI was formed.

To provide an effective regulatory framework and adequate safeguards to ensure fair

competition and protection of consumer interests.

1998: First tariff order issued in thus reforms effective from 1998.

Role

Section 13 of the TRAI Act gives adequate powers to TRAI to issue directions to service

providers.

Under Section 14 of the Act, the TRAI has full adjudicatory powers to resolve disputes

between service providers.

TRAI will be assigned the arbitration function for resolution of disputes between

Government (in its role as licensor) and any licensee.
http://teleguru.in/wp-content/uploads/2010/10/trai.jpg


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CHAPTER 3

3.1 DIFFERENT PLAYERS IN TELECOM SECTOR

Founded 1985

Headquarters New Delhi, India

Key people Sunil Mittal

Industry Telecom

Products Mobile and Fixed-Line

Telecommunication operator, Airtel

DTH

Slogan Express Yourself

Website www.airtel.in

Brand Ambassador Shahrukh Khan, Karina Kapoor,Sachin

Tendulkar,A.R.Rahman,

Saifali Khan, Madhvan,Vidhya

Balan,Anandi (Avika guar) Balika

vadhu.


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Founded 1983 as Racal Telecom, independent 1991

Headquarters Newbury, England, UK

Key people Arun Sarin, CEO

Sir John Bond, Chairman

John Buchanan, Deputy Chairman

Andy Halford, CFO

Industry Mobile telecommunications

Products Mobile networks, Telecom services, Etc.

Slogan Happy to help

Website www.vodafone.com

Main Attractions of advertisement Dog, Zoo zoos
http://www.vodafone.com/http://www.vodafone.com/http://www.vodafone.com/


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Type Spice: Public, Listed on BSE

Idea: Subsidiary

Founded Spice: 1997

Idea: 1995

Headquarters Spice: Mohali, India

Idea: Indore, Delhi, Pune, India

Key people Spice: Dilip Modi

Idea: Chairman: Kumar Mangalam Birla ;

MD: Sanjeev Aga

Industry Telecom

Products Mobile operator

Slogan Spice: Spice Hai toh life hai (If there's

Spice then there's Life.)

Idea: An !dea can change your life

Website Spice: Spice Telecom ;

Idea: www.ideacellular.comBrand Ambassador Abhishek Bachan


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Founded 2004

Headquarters Navi Mumbai, Maharashtra, India

Key people Anil Ambani

(Chairman) & (MD)

Vice-Chairman Reliance-ADA Group

Industry Telecommunications

Products Wireless

Telephone

Internet

Television

Website www.reliancecommunication.com

Brand Ambassador Hritik Roshan


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Founded 2000

Headquarters Navi Mumbai, India

Key people Mr. Ratan N. Tata

(Chairman)

Anil Kumar Sardana

(MD)


Products Wireless

Telephone

Internet

Television


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Founded 19th century, incorporated 2000

Headquarters Bharat Sanchar Bhawan, Harish

Chandra Mathur Lane, Janpath,

New Delhi

Key people Kuldeep Goyal

(CMD)


Products Wireless

Telephone

Internet

Television

ownership The Government of India

Website www.bsnl.com


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Founded 2009 (joint Venture)

Headquarters Gurgaon, India

Key people Stein-Erik Vellan

(CEO)

Sanjay Chandra

(Chairman)


Products Wireless

Telephone

Internet

Website Uninor.in

Parent company Telenor (67.25%)

Unitech Group (32.75%)


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3.1 MARKET SHARE OF TELECOM COMPANIES

Telecom service providers: mobil e subscri ber base (mil l ion)Apri l 2011


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Mobile service providers: customer market share (%)Apri l 2011

20%

17%

17%

11%

11%

11%

7% 6%

MARKET SHARE

AIRTEL RELIANCE VODAFONE BSNL+MTNL IDEA TATA AIRCEL OTHERS


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CHAPTER 4:-

ABOUT THE AIRTEL COMPANY

4.1. PROFILE OF THE COMPANY

Founded 1985

Headquarters New Delhi, India

Key people Sunil Mittal

Industry Telecom

Products Mobile and Fixed-Line

Telecommunication operator, Airtel

DTH

Slogan Express Yourself

Website www.airtel.in

Brand Ambassador Shahrukh Khan, Karina Kapoor,Sachin

Tendulkar,A.R.Rahman,

Saif ali Khan, Madhvan, Vidhya Balan,

Anandi (Avika guar) Balika vadhu.


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4.2. HISTORY OF THE COMPANY

Bharti Airtel is the largest wireless service provider in our country and the 5th largest

integrated telecom operator in the world. It has presence in all the 22 telecom circles in India

and operations in SriLanka, Bangladesh and Africa. The company provides its wireless

services under the GSM (Global System for Mobile Communication) technology. It also

offers broadband, IPTV (Internet Protocol Television) & Digital TV services. The company

had an aggregate of 220.9 million subscribers as of March 31, 2011 including 211.9 million

mobile services customers. Bharti Airtel gives an integrated suite of telecom solutions to its

enterprise customers, in addition to providing long distance connectivity both nationally and

internationally. All these services are rendered under a unified brand Airtel. The company

also deploys, owns and manages passive infrastructure pertaining to telecom operations under

its subsidiary Bharti Infratel Ltd that also owns 42% of Indus Towers Ltd.

This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity

elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also

launched the country's first fax machines and its first cordless telephones. In 1992, Sunil

Mittal won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal

incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In

1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises

acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra

Pradesh. In 2000, Bharti acquired control of Sky cell Communications, in Chennai. In 2001,

the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in

2002, and the company was listed on Mumbai Stock Exchange and National Stock Exchange


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of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand.

In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended

its network to Andaman and Nicobar. In 2009, Airtel launched its first international mobile

network in Sri Lanka. In 2010, Airtel began operating in Bangladesh and 16 African

countries. Today, Airtel is the largest cellular service provider in India and fifth largest in the

world.

Bharti Airtel Limited, a group company of Bharti Enterprises, is among Asias leading

integrated telecom services providers with operations in India and SriLanka. The company

has an aggregate of over 113.4 million customers as of end FEBRURARY 2011, including

110.51 million mobile customers. Bharti Airtel has been ranked among the six best

performing technology companies in the world by Business Week. Bharti Airtel is structured

as four strategic business unitsMobile, Telemedia, Enterprise, and Digital TV. The mobile

business offers services in India and SriLanka.

The Telemedia business provides broadband, IPTV, and telephone services in 95 Indian

cities. The Enterprise business provides end-to-end telecom solutions to corporate customers

and national and international long distance services to carriers. The Digital TV businessprovides Direct-to-Home TV services across India. All these services are provided under the

Airtel brand. Airtels national high-speed optic fibre network currently spans over113, 326 R

kms covering all the major cities in India. The company has two international landing stations

in Chennai and Mumbai that connect two submarine cable systems i2i to Singapore

andSEA-ME-WE-4 to Europe .To understand Bharti Airtels success requires an

understanding of Indias unique telecom market and the firms commitment to building

strong customer trust and confidence. Bharti Airtel is already one of the most integrated

Telcos in the world and is on track to achieve its goal to become the Most Admired Brand in

India. Bharti Airtel is the leading mobile telecom provider in a hyper-competitive and cost

conscious market, which necessitates innovation and cost optimization

.From 2008 to early 2009, Bharti AirteL added 32 million new customers, and believes it can

add another 100 million customers in a few years. At its current pace of nearly 100,000 new

customers per day, this goal seems well within reach. In order to deliver the highest quality


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service at the lowest possible cost, the firm has had to embrace the business model that has

helped make India an economic powerhouse: business process outsourcing (BPO).The firm

outsources many of its most fundamental functions and infrastructures, including its

information technology (IT) operations to IBM, Nortel and Wipro; its communications

networks to Ericsson and Nokia Siemens; and its contact centre operations to Nortel and

Wipro. With 25contact centers and 15,000 agents nation wide, Bharti Airtel needed to find

away to reduce the cost of delivering excellent customer service and handle millions of

customer calls each month


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Bharti Airtel received several awards and recognitions during the year. Some of them

were:

Rated as the Strongest Brand in the Economic Times- Brand Finance Brand PowerRating. Airtel was the only corporate brand to be awarded the AAA rating. It

improved its rating from the previous AA+. Airtel was also rated as the 7th Most

Valuable Brand in India with a brand value of USD 2.5 bn and Bharti Airtel was the

only telecom player to feature amongst the top 10 most valuable brands

Featured in Forbes Asias "Fabulous 50" companies of Asia Pacific. The coveted listincludes Asia Pacific's biggest listed companies with revenues or market

capitalization of at least USD 3 bn and picked by Forbess editors on the basis of the

best aggregate scores for long-term profitability, sales and earnings growth as well as

projected earnings and stock-price gains

Recognized as the Best Global Wholesale Carrier for 2009 at the Telecoms WorldAwards Middle East. Telecoms World is one of the flagship annual awards by

Terrapin, one of the leading business media organizations for international telecom

carriers and service providers

Rated as India's Best Enterprise Connectivity Provider for 2009 at the AnnualUsers Choice Awards instituted by PC Quest. This recognition came based on an

IDC survey spread over top eight Indian cities across four zones

Bharti Airtels low cost computing device Airtel Net PC was recognized by HindustanTimes as one of the Top 9 Best Tech Products of 2009


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Awarded the Most Preferred Cellular Service Provider Award at the CNBC AwaazConsumer Awards 2009

Awarded the NDTV Profit Business Leadership Award 2009 in the telecom sector.Instituted to award organizational excellence, these awards promise to acknowledge

the best, the brightest and the most dynamic of Indian organizations that have

emerged leaders in their respective verticals

Bagged top honours in the Voice & Data 100 survey, winning five of the Voice &Data Telecom Awards 2009. Bharti Airtel was named the Top Telecom Services

Provider of the Year 2009. Manoj Kohli, CEO & Joint Managing Director was

named the Voice & Data Telecom Person of the Year 2009. The awards also named

Bharti Airtel as the Top VSAT Player 2009, Top NLD Player 2009 and Top

Cellular Services Provider 2009

Bharti Airtel has recently won multiple recognitions in the field of InformationTechnology including Spamhaus Group Whitehat Network Star; Security Strategist

Award and Intelligent Enterprise Awardat the Technology Senate 2009 and CIO

Hall of Fame

Selected amongst the top 10 winners of the IDC Enterprise Innovation IT Awards2009 across APAC region for the BSSTransformation Project which integrates 15

major applications and automates over 200 processes. These awards are presented to

companies that demonstrate best practices, use IT in innovative ways to deliver

competitive advantages to the organization and enable growth

Bharti Airtel was declared as the Service Provider of the Year and Wireless ServiceProvider of the Year by Frost & Sullivan Asia Pacific ICT Awards for its outstanding

performance in the South Asian region


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4.4. ORGANIZATION CHART


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4.5. VISION, MISSION AND OBJECTIVE OF COMPANY

4.5.1 VISION

To build India's finest business conglomerate by 2020 Supporting education of underprivileged children through Bharti Foundation Strategic Intent:

To create a conglomerate of the future by bringing about BigTransformations through Brave Actions.

4.5.2 MISSION

We at Airtel always think in fresh and innovative ways about the needs of ourcustomers and how we want them to feel. We deliver what we promise and go out of

our way to delight the customer with a little bit more

4.5.3 OBJECTIVE

A...To undertake transformational projects those have a positive impact on the society and

contribute to the nation building process.

B...To diversify into new businesses in agriculture, financial services and retail business withworld-class partners

C...To lay the foundation for building a conglomerate of future


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4.6. PRODUCT MIX OF THE COMPANY

APRODUCT

Airtel Pre-paid Airtel Post-paid Blackberry Wireless Handheld Value Added Services (VAS)

The different value added services provided by Airtel are-

Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Airtel Live Portal SMS based Information Service Hello Tunes & Ring Tones Voice Mail Service Easy Post-paid bill collection Gifting of Ring Tones & Hello Tunes GPRS

Business Solutions Airtel DTH services Fixed line services Insurance


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IPTV Broadband connection

B.PRICE

Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI.

C.PLACE

It has wide and extensive presence even in the remotest areas Airtel Customer Care Touch Points Distributors like

E.g. Paan shops, grocery stores, chemists, outlet etc.

D.PROMOTION

Large scale print and video advertising. Big celebrities like SRK and Sachin are roped in to endorse the product. In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps

the most downloaded tune in India.

Provides innovations such as Bollywood movie premiers, music services such as ring back

tones & many more


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4.7. SWOT ANALYSIS

STRENGTHS

Cost advantage

Current leaders in quality service Largest distribution network Ability to constantly innovate Highly skilled workforce Entrepreneurial zeal Airtels increased equity and market cap.

WEAKNESSES

To prove credibility

Price pressures

Need for Government support Awareness

Sales and Marketing


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OPPORTUNITIES

To sustain passion and commitment

Airtels market share increasing at other service provider Expense. Thusopportunity to wipe it out.

Attain higher value services

Collaborative business needs to be explored Vertical repeatable solutions.

Low penetration level in rural markets.

THREATS

Foreign investment

Global trends moving from GPS to WLL.

Lack of global parity in telecom tariff Other competition


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4.8 BCG MATRIX-


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4.9. DISTRIBUTION CHANNEL


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5.1...WHAT IS MOBILE NUMBER PORTABI L ITY

MNP (Mobile Number Portability) is the service that allows a subscriber to shift from one

service provider to another without changing his/her original mobile at a minimal charge (`

19 in India). However, it requires a period of 4 days for completion of porting of mobile

number except in J&K, Assam and North East where it will be 12 days. In India it has started

in Haryana from 25 November 2010 and would be launched in pan India by 20 January 2011.

It is expected that the MNP effect will be mixture of various aspects in India. Because

considering different perspective of present Indian telecom sector, it shows that there will be

partial impact of MNP in the market.

Indian Telecom market comprises of ~ more than 91% prepaid subscribers and already

this segment is having annual churn rate from 5070%. Hence, there will not be any big move

in this segment. Though, the postpaid segment which is ~ 9% or less of total subscribers

base in India and contributes around 20% of overall subscribers revenue would be expected

to have higher churning rate as compared to present rate of 1224%. With this point of view

small players or new entrants would try to shift these high end customers from large playerstowards their arena by providing special facilities and low tariff plans for them. Hence, this

may lead to further tariff war in terms of voice and data usage. However it is only possible if

such high end customers are unhappy with their present operators regarding quality of

services and network.

Therefore with rise of MNP all operators are trying toimprove the quality of services soas to retain their subscribers especially high end users. However, such high end users will

not be attracted much by low tariffs because their mobile usage expense is much lower as

compared to disposable income and that is why they would like to remain stick with their

present operators.


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The 3G launch will also play an important role in churning, as all those players who have not

received 3G spectrum (i.e. new entrants) will face shifting of their subscribers towards the

operators providing 3G services (i.e. large players). Since, 3G services will provide better

voice quality, lower dropped calls and improved network along with enriched VAS

experience which will be enough to attract high end subscribers. With launch of 3G by

most number of private operators PSU operators like MTNL and BSNL may observe

substantial shift of subscribers mainly because of its poor quality service experience.

In case ofCDMA subscribers MNP is going to hit more due to boundaries of limited number

of mobile handset (i.e. limited featured phone) as compared to those available for GSM mode

and in CDMA there are only 3 operators in India as compared to those are in GSM (i.e. 15

service providers). Hence, wide variety of services available for subscribers in GSM from

tariff to VAS etc.

To grab the opportunity through MNP Telcos have started aggressive promotions &

marketing campaigns along with fresh offerings for new customers, such as:

Idea started the advertisement switch to Idea and is also providing many attractive offers

as well.

Tata Do Como has launched a section on Mobile Number Portability. The offers include

free talk time and Free 3G services usage.

BSNL is also offering free talk time of Rs. 100, and free unlimited GPRS for a month.


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Below tables represents LSAs and zones for MNP service.

MNP ZONES

S. No. ZONE 1Licensed Service Area ZONE 2Licensed Service Area

1 Gujarat Andhra Pradesh

2 Haryana Assam

3 Himachal Pradesh Bihar

4 Jammu & Kashmir Karnataka

5 Maharashtra Kerala

6 Punjab Madhya Pradesh

7 Rajasthan North East8 Uttar Pradesh (E) Orissa

9 Uttar Pradesh (W) Tamil Nadu including Chennai

10 Delhi West Bengal

11 Mumbai Kolkata


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5.2...TELECOM REGULATORY AUTHORITY OF INDIA

The facility of Mobile Number Portability (MNP) Service was introduced on a

pilot basis in the service area of Haryana on 25th November 2010. After successful trial, it

was introduced all over the country from 20th Jan 2011.

The Authority has reviewed the status of Mobile Number Portability recently. As per the

reported data, till 5th February, 2011, about 17.11 lakh subscribers have submitted their

requests to different service providers for porting their mobile number. Out of these requests,

around 2.29 lakh pertains to Haryana Service area wherein MNP was implemented earlier. In

rest of the country, in Zone-I (Northern & Western Region) maximum number of requests

have been received in Gujarat (1.67 lakhs) followed by Rajasthan (1.44 lakhs) whereas in

MNP Zone-II (Southern & Eastern Region) maximum Number of requests have been

received in Karnataka (1.16 lakh) followed by

Tamilnadu service area (1.14 lakh).

TRAI is constantly monitoring the implementation of MNP in the country. Based on the

complaints and feedback received, TRAI has instructed the service providers to strictly

comply with the provisions of MNP Regulations. It has been noted that certain port-in

requests were rejected by the service providers. The major reasons for rejections are -

incorrect Unique Porting Code submitted by subscriber in the porting form, non-completion

of 90 days from the date of activation of mobile number, existing contractual obligation and

non-payment of outstanding bill.

Subscribers are required to be careful on the below mentioned aspects of MNP:


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a) Incorrect Unique Porting Code submitted by subscriber in the porting form:

Unique Porting Code is an 8 digit code generated by the Donor operator when a subscriber

sends an SMS to 1900. First two characters of the Unique Porting Code are Alphabets

(denoting the service provider code and service area code) and remaining 6 digits are

numerical characters except numeric 0 (zero). This Unique Porting Code should be filled in

the Porting form without any error. Before submitting the porting request, subscribers should

match the actual Unique Porting Code received by SMS; with the Unique Porting Code they

have entered in the porting form so that there

Is no chance of any error?

b) Non-completion of 90 days:

The subscriber is eligible for porting only if he has completed 90 days from the activation of

the existing mobile connection or last porting date of mobile number which ever is

applicable. The subscribers may ensure the same before applying for porting.

c) Subsisting contractual obligations:

The Donor operator can reject a porting request if there are subsisting contractual obligations

in respect of which an exit clause has been provided in the subscriber agreement but the

subscriber has not complied with such exit clause.

d) Non-payment of out standing bill

Donor Operator can reject a porting request if there are outstanding payments due from the

subscriber by way of pending bill or bills, as the case may be before the date of application

for porting. Therefore subscribers must ensure that their last bill is fully paid before applying

for porting. They should also attach a copy of the paid bill receipt while Applying for porting.

In order to avoid rejections of their porting requests, subscribers are advised to read the

eligibility conditions carefully before submitting a porting request.


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Customer guide for availing the facility of Mobile Number Portability Request for

porting

I. Contact the new mobile service provider to whom you want to port your mobile number.

II. Obtain Customer Acquisition Form (CAF) & Porting Form.

III. Read the eligibility, probable reasons for porting rejection and other conditions carefully.

IV. If eligible, fill up the CAF and Porting Form. For filling up of porting form you need a

Unique Porting Code (UPC)

V. To obtain UPC send SMS from the mobile number you want to port to the number1900

with text PORT followed by space followed by your 10 digit mobile number you want to

port. [As pre-paid SMS is not permitted, in Jammu & Kashmir the subscriber has to dial

1900 to get an UPC, the operator at 1900 provide the UPC after verifying Subscriber

number with CLI. ]

VI. It may be noted that you will receive an auto generated 8 digits UPC from the Donor

operator. The first two characters of the UPC consist of Alphabets and remaining 6 digits

will be numerical characters except zero. The UPC is valid for 15 days (30 days in case of

J&K, NE & Assam Service Areas).

VII. Submit the duly filled Porting Form and CAF along with requisite documentary proof to

the mobile service provider.


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VIII. If you are a post paid subscriber, submit a paid copy of the last bill issued along with

Porting Form and CAF.

IX. Obtain new SIM card from the new service provider

X. Service provider may charge porting charge maximum up to j 19/- You can withdraw

your porting request within 24 hrs of applying. However, the porting charge is non-

refundable.

Activation of ported number:

XI. Your new mobile service provider will intimate you the date & time of porting on your

mobile phone.

XII. Change over takes place on the 7th working day (15th working day in case of Jammu &

Kashmir, Assam and North East service areas).

XIII. The service disruption time shall be around 2 hrs during night time of the date/time of

porting.

XIV. Replace the old SIM with the new SIM provided by your new mobile service provider

after the specified date and time.


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Eligibility and Other Conditions

_ 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, which ever is applicable.

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

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).

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.


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5.3...IMPACT OF MOBILE NUMBER PORTABILITY

Impact of MNP on Mobile Operators

Positives:

1. Operators who are having existing pool of strong customer base will be able to retain

customer by providing competitive services.

2. New telecom service providers can survive in the market by providing competitive tariffs

and VAS.

3. ARPU is likely to improve as customer reduces number of active connection of several

operators.

Negatives:

1. Competition among telecom service providers is increasing.

2. Profit margins are likely to reduce

3. Complex task to find out subscribers owns by operators as it can Change service providers

when ones found better value for money

4. Cartel in the existing operators to form synergy lead to hard game for rest of the players.


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Impact of MNP on Mobile Subscribers:

Positives:

1. Subscribers would likely to have efficient services at cheapest rate.

2. Can retain one number lifetime while choosing competitive plans from other operators.

3. CDMA users can switch to GSM network providers without changing the handset, and

hence subscribers need not to purchase the different handset for the different network.

Negatives:

1. Fees for transfer is yet not decided as new services introduced it will cost high.

2. A subscriber is eligible to make a porting request only after 90 days

Of the date of activation of his mobile connection.

3. Subscribers transferring the mobile number with some balance amount, no credit transfer

would be allowed to the new account.

4. Consumers allowed to change operators within their registered circle only (So if you are

moving to another city and want to retain your mobile number, MNP is not the answer).


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5.4 ADVERTISING

Airtel basically uses two appeals to connect to the users

Emotional

Humorous

attracting

Airtel signed on music composerA.R.Rehman and changed its tune to "live every

moment": rah mans signature tune for Airtel is the most downloaded ringbone in India.

But that was just part of the ongoing communication.

The following year Airtel adopted the "express yourself" positioning, which is also its

current tagline.

Youth icons like Shahrukh khan and Sachin Tendulakar were brought in as brand

ambassadors to attract youngsters

Add campaign with an eye on the rural market


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Vodafone have a huge market share due to its better service and good network. But the thing

that differentiate it from the competitors that it provide the more and more number of the

value added services.

Latest advertisement of Vodafone: Zoo zoos is very attracting and it increases the sales

of the Vodafone, the marketing manager of Vodafone reveals that statement.

Vodafone is a has a brand image in the mind of public due to their willingness to provide the

best service.

Vodafone focused more and more on the value added service and marketing. Recently

Vodafone gave its whole concentration by a series of advertisements of ZOOZOO series.

This move of Vodafone proved very successful to attract the more and more number of the

customers


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ADVERTISEMENT CAMPAIGN

The whole advertisement and promotion is designed by taking urban youth in focus but there

are large no of youths in rural sector as well and they can be their future consumers. Taking

big stars as brand ambassador is good decision. But organizations can further use recent

bronze medalist Boxer Vijendra Kumar as there endorsement. Vijendra is having good

looking personality and he belongs to rural area so in this way rural people will start

associating themselves with that brand SABKA AIRTEL. Airtel can also use BALIKAVADHU fame ANANDI (Avika gaur) targeting rural women and rural youth

Youth to Drive Growth:--Airtel should more concentrate towards the youth. As the increasing

market share of rivalry brand Virgin, clearly shows that youth can play a major role in this

competition. Attracting the Youth: -- To attract more youth community Airtel can go for

more and more plans for youth under the same brand SABKA AIRTEL. In this plan Airtel

can give SMS pack (its for SMS generation), cheaper call rates schemes only for school and

college going students. In this plan Airtel should go for the heavy youth promo with fast

dance track and cute guys and gals.


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SUGGESTIONS FOR (ADVERTISING AND COMPANY)

Mobile service providers should provide the facility of portability of number.

Mobile service providers should provide the web access at cheaper cost.

Telecom market is quite competitive so mobile service providers should provide the

services at cheaper cost.

Mobile service providers should focus on providing better network coverage

Especially BSNL.

Mobile service providers should provide various schemes for their existing customers.

BSNL have to make more attractive ads.

Add some other promotional offers.

Makes some sense full ads for Tata Doccomo

For making interactive add to connect with customers.


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5.5 ATTRACTIVE OFFERS PROVIDED BY DIFFERENT COMPANIES

(In advantage plan now there is changes there is 400 min free local+STD min free and 149

sms and local & STD call rates is 0.5p/min)


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5.6 Consumer wise comparative Analysis of Different telecom companies


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http://teleguru.in/wp-content/uploads/2011/06/mnp-data.jpg


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TOP GAINERS AND LOSERS

TOP GAINERS

Operator PORT IN PORT OUT NET PO/PI ratio

Idea 1522429 883369 639060 0.58

Vodafone 1807408 1173819 633589 0.65

Airtel 1947589 1345261 602328 0.69

Aircel 476555 395376 81179 0.83

TOP LOSERS

Operator PORT IN PORT OUT NET PO/PI ratio

RCOM 266778 1396006 -1129228 5.23

BSNL+MTNL 305634 872484 -566850 2.85

TATA 692804 912072 -219268 1.32

Videocon 20015 60602 -40587 3.03


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CHAPTER 6

RESEARCH METHODOLOGY

6.1 Sources

The success of any Telecom companies depends on how well they are able to align

With the objectives and needs of individual customers, and is able to provide

proper solutions to them. To know how a company is performing and whether

They have any cutting edge advantage over competitors, an intensive study of the

market is absolutely necessary. In order to understand the performance of different

companies in the market, we did two types of surveys, primary survey and

secondary survey.

6.2 Primary survey

Primary survey included:-

Visiting websites

Prepare a questionnaire for the market survey.

Meeting different people to know their views, perception and Preference of

different insurance companies.

6.3 Secondary survey

Secondary survey included of magazines, journals, and internet


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6.4 Sample design

Sampling Technique:

The sampling technique that is adopted is the CONVINIENCE SAMPLING

Sample Size:

I did a survey among 100 people in Bapunagar area.


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1. GENDER

INTERPRETATION:-

From the above tabulation we can say that most of our respondents are male and very lessnumber of female

75%

25%

GENDER

Male

Female

GENDER %MALE 75%

FEMALE 25%


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2. AGE GROUP

INTERPRETATION:-

From the above we can say that most of our respondents falls between 21-30 age group andvery less respondents are of below 20 age group

9%

45%33%

13%

%

below 20 21-30 31-40 40 & above

Age group %

below 20 9

21-30 45

31-40 33

40 & above 13


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3. OCCUPATION

INTERPRETATION:-

From the above tabulation we can interpret that most of the respondents are students and

service person and very less number of respondents are professionals

StudentProffesion

ServiceBusiness

36

11

33

20

OCCUPATION

%

occupation %

Student 36

Profession 11

Service 33

Business 20


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4. Which mobile connection do you own?

service provider %

Airtel 35

Vodafone 25

reliance 11

idea 10

Tata 2

Aircel 1

others 13

INTERPRETATION:-

From the above data we can say that the most of the respondents are using Airtel mobile

connection while very less number of respondents using Aircel and Tata.

Airtel vodafone reliance idea tata aircel others

Series1 35 25 11 10 2 1 13

0

5

1015

20

25

30

35

40

A

xisTitle

Service provider


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5. Mode of your mobile connection

INTERPRETATION:-

From the above tabulation we can say that the most of the respondents are having prepaidmobile connection.

76%

24%

MODE

Prepaid

Postpaid

MODE %

Prepaid 76

Postpaid 24


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6. What is your monthly spending on your mobile connection?

INTERPRETATION:-

From the above we say that most of respondents having monthly expenses of around 500 or

above on their current mobile connection and very less customers are having less than 100 Rs

of monthly expenses on their mobile connection.

below 100 101-200 201-300 301-400 401-500 500 & above

% 15 19 14 11 13 28

0

5

10

15

20

25

30

AxisTitl

e

Monthly expenses

Monthly exp. %

below 100 15

101-200 19

201-300 14

301-400 11

401-500 13

500 & above 28


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7. How satisfied are you with your current mobile connection?

INTERPRETATION:-

From the above tabulation we can say that most of the respondents are satisfied with their

current mobile operator.

71%

29%

level

satisfied

dissatisfied

level %

satisfied 71

dissatisfied 29


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8. If you are dissatisfied with your current operator then what is the reason behind this?

INTERPRETATION:-

From the dissatisfied users most of the users are dissatisfied because of the call rates and very

less users having the problem of after sales service.

0

5

10

159.00

12.00

5.03.00

reason of dissatisfaction

reason of dissatisfaction

REASON no

Network problem 9

call rates 12

VAS 5

After sales service 3


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9. Which new connection you want to go if you are dissatisfied with your current

operator?

operator NO

Airtel 9

vodafone 8

reliance 3

aircel 0

tata 1

idea 5

others 3

INTERPRETATION:-

From the above tabulation we can say that most of the respondents who are dissatisfied with

their current operator wants to go with the Airtel and no customers want to go with tata or

Aircel

0

10 98

3

0 1

5

3

NO


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10. Do you know MNP (Mobile number portability)?

INTERPRETATION:-

From the above data we can say that out of 100 respondents 90 respondents are aware about

MNP. Hence we can say that most of the users are aware about Mobile number portability

90%

10%

Chart Title

YES

NO

YES 90

NO 10


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11. Are you aware of the procedure to be followed for MNP?

INTERPRETATION:-

From the above tabulation we can say that most of the respondents who aware about MNPare also aware about the procedure to be followed for MNP

92%

8%

Chart Title

YES NO

YES 92.22

NO 7.78


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12. Since MNP has been implemented would you change your mobile connection

INTERPRETATION:-

From the above tabulation we can interpret that the most of the respondents have not tried

MNP

YES

19%

NO

81%

Chart Title

YES 19

NO 81


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13. If yes then, what is the reason for switching?

TRY MNP 4

Not satisfied with current operator 6

other 9

INTERPRETATION:-

From the above data we can say that most of the respondents who tried MNP have changed

their current operator because they are not satisfied with their current operators call rate or

network.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

TRY MNP Not satisfied with

current operaor

other

Series1 4.00 6.00 9

AxisTitle

Chart Title


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14. How important/useful do you think would mobile MNP prove to be Indian market

scenario?

INTERPRETATION:-

From the above tabulation we can say that most the respondents thinks that MNP is very

important to the current Indian market scenario while very less number of respondents thinks

that MNP is not at all important to Indian market scenario

extremely

impotantvery

important somewhat

important not very

important not at all

important

2927

21

15

8

extremely important 29

very important 27

somewhat important 21

not very important 15

not at all important 8


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6.6 Hypothesis test

Ho: - There is relationship between occupation and opinion regarding MNP

H1:-There is relationship between occupation and opinion regarding MNP

FO Fe Fo-Fe (Fo-Fe)2 (Fo-Fe)2/Fe

6 10.44 -4.44 19.7136 1.888

8 9.72 -1.72 2.9584 0.304

10 7.56 2.44 5.9536 0.788

7 5.4 1.6 2.56 0.474

5 2.88 2.12 4.4944 1.561

5 3.19 1.81 3.2761 1.027

2 2.97 -0.97 0.9409 0.317

3 2.31 0.69 0.4761 0.206

1 1.65 -0.65 0.4225 0.256

0 0.88 -0.88 0.7744 0.88

10 9.57 0.43 0.1849 0.0193

12 8.91 3.09 9.5481 1.0716

3 6.93 -3.93 15.4449 2.22875 4.95 0.05 0.0025 0.0005

3 2.64 0.36 0.1296 0.0491

8 5.8 2.2 4.84 0.8345

5 5.4 -0.4 0.16 0.0296

5 4.62 0.38 0.1444 0.0313

2 3 -1 1 0.333

0 1.6 -1.6 2.56 1.6

13.899

OCCUPATION/OPINION

extremely

important

very

important

somewhat

important

not very

important

not at all

important TOTAL

STUDENT 6 8 10 7 5 36

PROFFESSION 5 2 3 1 0 11

SERVICE 10 12 3 5 3 33

BUSINESS 8 5 5 2 0 20

TOTAL 29 27 21 15 8 100


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degree of freedom (r-1)(c-1)

(5-1)(4-1)

4*312

= 0.05

CONCLUSION:-

Looking in the table of Chi-square for the degree of freedom 12 and significance level 0.05,

we get the value 21.0261. As the chi-square value falls in the accepted region, the nullhypothesis will be accepted. Hence, there is relationship between occupation and opinion

regarding MNP.


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6.7 FINDINGS

From the above research we find that most of the customers using Airtel connection

and 2nd number Is of Vodafone

We have found that most of the customers is using prepaid connection and only

businessman is using postpaid connection

We have found that near about most of respondents are satisfied with their current

operator

We have found that out of most of the respondents who are dissatisfied with their

current operator are because of call rates.

We have found that out of 29 dissatisfied customers most of the respondents are want

to go with Airtel and no respondents want to go with Aircel

We have found that most of customers are aware about MNP

We have found that out most of the respondent are aware about the procedure to be

followed for MNP

We have found that less number of respondent have not tried MNP

Out of respondents who tried MNP, most of customers have changed their operator

because of dissatisfaction with the current operator

.

We have found that most number of respondents thinks that MNP is extremely

important for Indian market while very less number of respondents thinks that MNP is

not at all important for Indian market


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6.8 SUGGESTIONS

After the complete analysis of entire STUDY we put forward a set of recommendations

which are a follows:

Telecom companies should establish widespread and conspicuous distribution to

match that of the competitors. The distribution network shall make the product visible

and available at convenient locations.

Large part of Indian rural market is still untapped therefore airtel is required to bring

that area under mobility The tele density in urban and rural india is not that much high

as compare to other countries like china, US.

Lowering the tariff plans of the service providers will increase more competition

Improvement of network infrastructure in both urban and rural areas

Reducing STD and ISD call rates for the users

SO many new players are entering in to the Indian telecom market; so much

concentration should be defending the market share and leadership.


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6.9 CONCLUSION

At the end of the report we conclude that the consumers are aware about MNP. it seems

number portability would induce greater competition among mobile service operators Today

consumers needs proper call rates and network connection. The consumer purchases the

product due to call rates, network etc.

From the analysis we can conclude that Airtel is more popular amongst the customers. After

the introduction of MNP most of the customers want to go with Airtel, Vodafone and idea.

Now days due to very more competition the consumers are very savage to their particular

product. We have found that most of the customers are using prepaid connection and only

businessman is using postpaid connection

According to the customers point of view, MNP proves to be very important to the current

market scenario. It leads to increase in competition and it benefits the consumers.

Hence from the customers point of view MNP proves to be successful in India.


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6.10 LIMITATION

The first limitation of this project is the title its self as it is difficult to find out the

Impact of MNP on telecom sector

Information given by responders may be inflated by them.

Information given by responders is incomplete some times.

Some of the responders may refuse to give personal information.

Anothers limitation is that the sample size is less.

There may be existence of barrier of communication between responder and survey.

Sometime its happened in case of if the responder would be female and the survey

would be male and they may not have good communication enough for survey.


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6.11 BIBLIOGRAPHY

We have collected the information from the below sources:

Websites:www.Wikipedia.com

www.airtel.in

www.trai.in

www.vodafone.com

www.idea.in

www.bsnl.com

www.tata.com

Books: - Marketing Management (13th Edition)

Pearson education

(Philip Kotler)

-Research Methodology & operation research

(Chinnam reddy)
http://www.airtel.in/http://www.airtel.in/http://www.airtel.in/http://www.trai.in/http://www.trai.in/http://www.trai.in/http://www.vodafone.com/http://www.vodafone.com/http://www.idea.in/http://www.idea.in/http://www.bsnl.com/http://www.bsnl.com/http://www.tata.com/http://www.tata.com/http://www.tata.com/http://www.bsnl.com/http://www.idea.in/http://www.vodafone.com/http://www.trai.in/http://www.airtel.in/


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SAL INSTITUTE OF MANAGEMENT

Questionnaire

Survey for knowing the impact of MNP on Telecom companies

By 3rd

semester MBA student SAL Institute of Management, Gujarat Technological University

1) Name :2) Contact No.:3) Gender: Male Female4) Age:

Below 20 20-40

30-40 40 and above

5) Occupation:Student Professional

Service Businessman

6) Do you have mobile connection Yes No7) Which Mobile connection do you own:

Airtel Reliance Idea

Tata Vodafone Aircel

Other specify

8) What is the mode of your mobile connection? Prepaid Postpaid9) What is your monthly spending on your mobile connection?

Below 100 100-200 200-300

300-400 400-500

Above 500, specify

10)How satisfied are you with your current mobile connection?

Absolute Satisfied Satisfied Average Dissatisfied Absolute Dissatisfied


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11)If you are dissatisfied or absolute dissatisfied with your existing operator, then whatis the reason behind this:

Network problem Call rates

VAS After sales service

12)If you are Dissatisfied or Absolute Dissatisfied in Q 10, then which new connectionyou want to go?

Airtel Reliance Idea

Tata Vodafone Aircel

Other, specify

13)Do you know MNP? Yes No14)Are you aware of the procedure to be followed for MNP?

Yes No

15)Since MNP has been implemented would you change your mobile connection?Yes No

16)If yes in the above question, what is the reason for switching?Try MNP Not satisfied with existing operator

Other, specify

17)How important / useful do you think would mobile MNP prove to be Indian marketscenario:

Extremely important Very important

Somewhat important Not very important

Not at all important

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