Project Report

PROJECT REPORT
ON
YOUTH PERCEPTION OF GSM MOBILE
SERVICE PROVIDERS
(A CASE STUDY OF U.P)

Submitted in partial fulfillment for the degree of
MASTERS OF BUSINESS ADMINISTRATION
MBA (Marketing)
(2009 – 2011)
Under the Supervision of
m/s shivani kapoor

(dean)
Submitted By:
ADITYA PRATAP RAGHUVANSHI
MBA-4
DAYANAND ACADEMY OF
MANAGEMENT STUDIES KANPUR
CERTIFICATE
This is to certify that the project entitled “Youth Perception of GSM Mobile Service
Providers: A Case Study of UTTAR PRADESH” Submitted By Aditya pratap

raghuvanshi, in partial fulfillment of the requirement for the award of degree of
Master of Business Administration, in , Dayanand academy of management studies
kanpur; is a bonafide piece of research work conducted under my supervision and
guidance and no part of this project has beensubmitted for any other degree.
Date:
DEAN:M/S SHIVANI KAPOOR
DAYANAND ACADEMY OF MANAGEMENT STUDIES
KANPUR
ACKNOWLEDGEMENT
I would like to take this opportunity to thank m/s shivani kapoor dean, dayanand academy
of management studies kanpur, who has been guiding force for my
Project Report on “Youth Perception of GSM Mobile Service Providers: A case study of
U.P.”
I am also very thankful to all of my teachers and friends for their support and
encouragement in finding out the appropriate material for this Project Report, without
their thankless support and efforts, making this report would have been impossible for
me.
I am also thankful to Mr.Swet Saxena, Head of the Department, dayanand academy of

management studies Kanpur, for providing me the required
facilities in the department.
Aditya pratap raghuvanshi
MBA-4
TABLE OF CONTENTS
CHAPTER NO. PARTICULARS PAGE NO.
Chapter – 1
INTRODUCTION TO THE STUDY
· Telecommunication
· TRAI
· Telecom Sector in India
· Classification of Telecom Services
· Introduction to the Companies
6-39
Chapter-2
LITERATURE REVIEW
40-44
Chapter – 3
RESEARCH METHODOLOGY
· Need & Scope
· Objectives of the Study
· Limitations of the Study
45-51
Chapter –4
DATA INTERPRETATION AND ANALYSIS
· Findings
52-66
67
Chapter – 5
CONCLUSION
SUGGESTIONS
68
69
BIBLIOGRAPHY
70
ANNEXURE
· Questionnaire
71-73
LIST OF TABLES
Sr.No. Title
Table 1.
Table 1 showing percentage of respondents subscribed with different Mobile
Service Providers.
Table 2.
Table 2 showing the sources from where the customers got acquainted with these
companies.
Table 3.
Table 3 showing the No. of years the respondents have been using the current
mobile phone services.
Table 4.
This table 4 shows the no. of respondents with their past experience with their
mobile service providers.
Table 5.
Table 5 showing percentage of prepaid and postpaid customers.
Table 6.
This table 6 showing whether respondents are satisfying or not when they were
asked if they are permitted to retain the current mobile phone number that they
have, then they would change their current mobile service provider
Table 7.
This table 7 shows the brand of different mobile service providers which are to be
preferred when the respondents are satisfied to change their current mobile service
provider when they are permitted to retain the current mobile phone no.
Table 8.
This table 8 showing the usage of mobile services for anything beyond making
calls and text messaging.
Table 9. This table 9 showing Importance of various factors in a mobile service provider.
Table 10. This table 10 shows the importance of price on a 5 point scale in different
brands.
Table 11.
This figure 11 shows the importance of quality of service on a 5 point scale in
different brands.
Table 12.
This table 12 shows the Availability in different states on a 5 point scale in
different brands.
Table 13.
Table 13 showing perception of various factors of different companies by all the
respondents.
LIST OF FIGURES/
Sr.No. Title
Figure 1.
Figure 1 showing percentage of respondents subscribed with different Mobile
Service Providers.
Figure 2.
Figure 2 showing the sources from where the customers got acquainted with these
companies.
Figure 3.
Figure 3 showing the No. of years the respondents have been using the current
mobile phone services.
Figure 4.
This Figure 4 shows the no. of respondents with their past experience with their
mobile service providers.
Figure 5.
Figure 5 showing percentage of prepaid and postpaid customers.
Figure 6.
This Figure 6 showing whether respondents are satisfying or not when they were
asked if they are permitted to retain the current mobile phone number that they
Figure 7.
This Figure 7 shows the brand of different mobile service providers which are to
be preferred when the respondents are satisfied to change their current mobile
service provider when they are permitted to retain the current mobile phone no.
Figure 8.
This Figure 8 showing the usage of mobile services for anything beyond making
calls and text messaging.
Figure 9. This Figure 9 showing Importance of various factors in a mobile service

provider.
Figure 10. This Figure 10 shows the importance of price on a 5 point scale in different
brands.
Figure 11.
This figure 11 shows the importance of quality of service on a 5 point scale in
different brands.
Figure 12.
This Figure 12 shows the Availability in different states on a 5 point scale in
different brands.
INTRODUCTION
Comparative research, simply put, is the act of comparing two or more things with a view
to discovering something about one or all of the things being compared.
This technique is often utilizes multiple disciplines in one study.
When it comes to method, the majority agreement is that there is no methodology peculiar
to comparative research. The multidisciplinary approach is good for the flexibility it offers,
yet comparative programs do have a case to answer against the call that their research
lacks
a “seamless whole”.
There are certainly methods far more common than others in comparative studies,
however.
Quantitative analysis is much more frequently perused than qualitative, and this is seen in
the majority of comparative studies can be use quantitative data.
The general method of comparing things is the same for comparative research as it is in
our
everyday practice of comparisons. Like cases are treated alike, and cases are treated
differently; the extent of difference determines how differently cases are treated. The point
here is that if one is able to sufficiently distinguish two cases, comparative research
conclusions will not be very helpful.
Secondary analysis of quantitative data is relatively widespread in comparative research,
undoubtedly in part because of the cost of obtaining primary data for such large things as a
country’s policy environment. A typical method of comparing welfare state is to take
balance their levels of spending on social welfare.
Comparative research is a methodology in the social sciences that aims to make
comparisons across different countries and cultures. A major problem in comparative
research is that the data sets in different countries may not use the same categories, or
define categories differently/
· TELECOMMUNICATION
Telecommunication is one of the fastest growing service industries in the world. While
the accent of growth is one the value added service, such as e-mail, cellular phones etc in
the developed countries. This sector a crucial role in spurring growth, especially
industrial and service, in any economy.

Multinational companies are investing in developing countries because of huge latest
demand. Telephone penetration has reached saturation levels in the developed world.
Telecommunication historically has been a state initiated and controlled sector in all
countries. The last two decades has witnessed a restricting of the entire sector across the
globe, in terms of privatization and competition. Opening up of economics and
privatization in the developing countries has triggered influx of foreign capital and
technology.
Telecom density is only 2 per 100, which is less than that of China (4.5 per 100) and the
world average (10 per 100). Cellular penetration is also low at 0.1% compared to China
(1.1%) and Malyasia (2%). To improve penetration will imply an investment of over Rs.
600 billion in next 5 years.
The industry had received the Telecom Policy of 1994 with enthusiasm. It was hoped that
this would usher in a new era in the telecom Sector. Unfortunately, delays in
implementation and resulting confusion have derailed the same. The initial enthusiastic
responses to building have given way to litigation and subsequent delays. Out of the 22
circles made available to the private sector for basic telecom service, only 2 are
operational after 5 years.
Despite all the delays, India has managed to take steps towards privatization and
introduction of competition in basic telecom services. The government has announced a
new telecom policy, which clarifies the future role of Department of Telecommunication.
The new ISP policy will promote the use of internet. All this aims to promote investment
in the telecom sector. The sector will undergo a dramatic transformation in the next 3-5
years.
The building process was also adversely affected by Himachal futuristic which submitted
bids of Rs. 850 Bn for 9 licenses leading in an impasse. The solution formulated by the
policy makers to copies number of licenses per company ostensibly, to avoid competition
also led to confusion. The bids were made on optimistic demand estimates, which have
not yet materialized. This has resulted in most of the companies facing cash losses. Most
of the Indian partners do not have the strength to withstand long genestations and selling
out to their foreign collaborators. The new telecom policy has addressed this issue also.
A number of MNCs set up joint ventures for manufacture of telecom equipment in the
last 3 years. The capacity builds up outstripped demand from the service providers. Due
to resource crunch, DOT (the dominant single buyer) delayed placing orders. This
resulted in an adverse impact on the bottom-line. A shake out local players (including
some PSUs) who are technologically not competitive is bound to happen.
· TRAI (TELECOM REGULATORY AUTHORITY OF INDIA)
The Telecom Regulatory Authority of India or TRAI (established 1997) is the
independent regulator established by the Government of India to regulate the
telecommunications business in India. The TRAI, which draws regulatory power from
the TRAI Act of 1997 (Amended 2000), is responsible for:
Notwithstanding anything contained in the Indian Telegraph Act,1885,the functions of
the Authority shall be to-
(a) Make recommendations, on a request from the licensor, on the following matters,
namely:
(i) need and timing for introduction of new service provider;
(ii) terms and conditions of license to a service provider;
(iii) revocation of license for non-compliance of terms and conditions of license:
(iv)measures to facilitate competition and promote efficiency in the operation of

telecommunication services so as to facilitate growth in such services.
(v) technological improvements in the services provided by the service providers.
(vi) type of equipment to be used by the service providers after inspection of equipment
used in the network.
(vii)measures for the development of telecommunication technology and any other
matter relatable to telecommunication industry in general;
(viii) efficient management of available spectrum;
(b) Discharge the following functions, namely:-
(i) ensure compliance of terms and conditions of license;
(ii) notwithstanding anything contained in the terms and conditions of the license granted
before the commencement of the Telecom Regulatory Authority (Amendment)
Ordinance,2000, fix the terms and conditions of inter-connectivity between the
service providers;
(iii) ensure technical compatibility and effective inter-connection between different
service providers.
(iv) regulate arrangement amongst service providers of sharing their revenue derived
from providing telecommunication services;
(v) lay down the standards of quality of service to be provided by the service providers
and ensure he quality of service and conduct the periodical survey of such service
provided by the service providers so as to protect interest of the consumers of
telecommunication services;
(vi) lay down and ensure the time period for providing local and long distance circuits of
telecommunication between different service providers;
(vii) maintain register of interconnect agreements and of all such other matters as may be
provided in the regulations;
(viii) keep register maintained under clause (viii) open for inspection to any member of
public on payment of such fee and compliance of such other requirement as may be
provided in the regulations;
(ix) ensure effective compliance of universal service obligations;
· TELECOM SECTOR IN INDIA
More than 125 million telephone network is one of the largest communication networks
in world, which continues to grow at a blistering pace.

The rapid growth in the telecom sector can be attributed to the various pro-active and
positive policy measures taken by the government as well as the dynamic and
entrepreneurial spirit of the various telecom service providers both in private and public
sector. The telecom sector has shown impressive growth during the past decade./
Two striking features of this growth viz. increasing preference for mobile phones and
higher contribution of private sector in the incremental growth have predominated the
telecom sector. The share of mobile phones (including WLL mobile) has overtaken the
share of landlines with 62% in the total number of phones. The private sector's
contribution is also increasing rapidly. Currently more than 30 lakh phones are being
added each month and it is targeted that by the end of 2008 the total number of phones
may reach a level of 350 million taking the tele-density to more than 30% which is
currently at 24.63%.
Network Expansion: The total number of telephone subscribers has reached 281.62
million at the end of January 2008 as compared to 232.87 million in July 2007. The
overall teledensity has increased to 23.63% in January 2008 as compared to 21.20% in
August 2007.
Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last
month compared to 8.17 million in December2007. This pushed the total wireless
subscriber’s base to 242.40 million by Jan 31 2008.
Wireline Subscribers: The wireline segment subscriber base stood at 39.73 million with
a decrease of 0.16 million at the end of January 2008.
Teledensity: The gross subscriber base reached 206.83 million at the end of March 2007.
The teledensity is 24.63%at the end of January 2008 as compared to 18.31% at the end of
March 2007, registering an increase of 6%.
Increasing Role of Private Sector: The private sector has played a significant role in the
growth of telecom sector. The share of private sector has risen to 85 per cent in
December 2007 from 64.14 per cent in November 2006.
Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to
increased competition. The minimum effective charges for local calls have fallen
considerably in recent months especially for cellular service. The long distance domestic
as well as international charges have also fallen considerably.
Telecom Regulatory Authority of India (TRAI): TRAI was established under the
Telecom Regulatory Authority of India Act, 1997 enacted on March 28, 1997. The goals
and objectives of TRAI are focused towards providing a regulatory framework that
facilitates achievement of the objectives of New Technology Policy (NTP) 1999. TRAI
has endeavored to encourage greater corporation in the telecom sector together with
better quality and affordable prices.
Telecommunication sector in India can be divided into two segments: Fixed Service
Provider (FSPs), and Cellular Services. Fixed line services consist of basic services,
national or domestic long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic
services. Private sector services are presently available in selective urban areas, and
collectively account for less than 5 per cent of subscriptions. However, private services
focus on the business/corporate sector, and offer reliable, high- end services, such as
leased lines, ISDN, closed user group and videoconferencing.
Cellular services can be further divided into two categories: Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector
is dominated by Airtel, Vodfone-Hutch, BSNL and idea Cellular, while the CDMA
sector is dominated by Reliance and Tata Indicom. Opening up of international and
domestic long distance telephony services are the major growth drivers for cellular
industry. Cellular operators get substantial revenue from these services, and compensate
them for reduction in tariffs on airtime, which along with rental was the main source of
revenue. The reduction in tariffs for airtime, national long distance, international long
distance, and handset prices has driven demand.
· CLASSIFICATION OF TELECOMMUNICATION SERVICES
1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)
 CELLULAR SERVICE
 There are five private service operators in each area, and an incumbent state
operator. Almost 80% of the cellular subscriber base belongs to the pre-paid
segment.
 The DOT has allowed cellular companies to buy rivals within the same
operating circle provided their combined market share did not exceed 67 per
cent. Previously, they were only allowed to buy companies outside their
circle.
Growth Drivers
Opening up of international and domestic long distance telephony services are
growth drivers in the industry. Cellular operators now get substantial revenue
from these services, and compensate them for reduction in tariffs on air time,
which along with rental was the main source of revenue. The reduction in
tariffs for airtime, national long distance, international long distance, and
handset prices has driven demand.
· THE KEY PLAYERS IN THE TELECOM MARKET IN INDIA
 Cellular Service provider:/
 Airtel
 Vodafone
 BSNL
 Idea
 Reliance
 Tata indicom
 Aircel
 MTNL
 Subscribers
· Wireless subscribers crosses 200 million mark
· Tele density reaches 21.20%
· India has become the second largest wireless network given the exceptional
growth in Mobile subscribers in India
According to latest release by TRAI (Telecom Regulatory authority of India), the total
wireless subscribers base stood at 261.09 million at the end of March 2008, compared to
255 million subscribers in U.S. A total of 10.16 million wireless subscribers have been
added in the month of March 2008 as against 8.53 million wireless subscribers added in
the month of February 2008.
Another landmark that March saw was reaching a total telephone connections to 300
million (wireline+wireless). The overall tele-density is pegged at 26.22% at the end of
March 2008 as against 25.31% in February 2008.

The total number of telephone subscribers has reached 241.02 million at the end of
August 2007 as compared to 232.87 million in July 2007. The overall teledensity has
increased to 21.20% in August 2007 as compared to 20.52% in July 2007.
In the wireless segment, 8.31 million subscribers have been added in August 2007 while
8.06 million subscribers were added in July 2007. The total wireless subscribers (GSM,
CDMA & WLL (F)) base reaches 201.29 million at the end of August 2007.
INTRODUCTION TO THE COMPANIES
AIRTEL
Type Public, Listed on BSE
Founded 1985
Headquarters New Delhi, India
Key people Sunil Mittal
Industry Telecom
Products Mobile and Fixed-Line Telecommunication operator
Revenue $6 Billion
Slogan Express Yourself

Website www.airtel.in
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest
cellular service provider with more than 75 million subscribers as of August 2008.It also
offers fixed line services and broadband services. It offers its TELECOM services under
the Airtel brand and is headed by Sunil Mittal. The company also provides telephone
services and Internet access over DSL in 14 circles. The company complements its
mobile, broadband & telephone services with national and international long distance
services. The company also has a submarine cable landing station at Chennai, which
connects the submarine cable connecting Chennai and Singapore. The company provides
end-to-end data and enterprise services to the corporate customers through its nationwide
fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP
and international bandwidth access through the gateways and landing station.
Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals under
its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Airtel Limited is today acknowledged as one of India's
finest companies, and its flagship brand 'Airtel', has over 24 million customers across the
length and breadth of India.
While a joint venture with TeleTech Inc., USA marked Bharti’s successful foray into the
Customer Management Services business, Bharti Enterprises’ dynamic diversification
has continued with the company venturing into telecom software development. Recently,
Bharti has successfully launched an international venture with EL Rothschild Group
owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets
in Europe and USA.
Companies of Airtel
A brief introduction to each of its companies is given below:
1. Bharti Airtel Ltd
Bharti Airtel Ltd is India's leading provider of telecommunications services. The
company has 4 distinct Business divisions - Mobile & telephone services, broadband
services, long distance services and enterprise services.
2. Bharti TeleTech Ltd

Bharti TeleTech Ltd manufactures and exports world-class telecom equipment under the
brand 'Beetel'
3. Telecom Seychelles Ltd
Telecom Seychelles Ltd provides telecom services in Seychelles, under the brand 'Airtel'
4. Bharti Telesoft Ltd
Bharti Telesoft Ltd delivers best-in-class, revenue-critical VAS products and services to
telecom carriers.
5. TeleTech Services (India) Ltd
TeleTech Services (India) Ltd is joint venture with TeleTech Inc., USA. It offers a range
of Customer Management Services.
6. FieldFresh Foods Pvt Ltd
FieldFresh Foods Pvt Ltd is Bharti's venture with EL Rothschild Group owned ELRO
Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and
USA.
Airtel is a brand of telecommunication services in India operated by Bharti Airtel.
Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand
name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone
Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance
Services and Enterprise Services (Telecommunications Consulting for corporates). It has
presence in all 23 circles of the country and covers 71% of the current population.
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.
In March 2008, Bharti Airtel will roll out third generation services in Sri Lanka in
association with HYPERLINK "http://en.wikipedia.org/wiki/Singtel" \o "Singtel"
Singtel. This is because Singapore-based Asian telecom major Singtel, which owns a
little over 30% in Bharti Airtel, is a major player in the 3G space as it has already third
generation networks in several markets across Asia
The Company Bharti Airtel is in India the biggest integrated and also the 1st telephone
service provider in the private sector, which has footprint in around 23 telecom circles.
Bharti Airtel Limited has been since its very beginning using the latest technology and
thus the company has paved the way for the telecom sector in India with its world-class
services and products.
This has helped Bharti Airtel Company to grow for the number of its customers has
increased very rapidly over the years. The company has around 5o million customers in
2007 and its market share of mobile subscribers in India is at 23.4%.
The company Bharti Airtel Limited's total revenue amounted to Rs.12, 242 crore in 2006-
2007 and the net profit stood at Rs.3, 126 crore. The Company Bharti Airtel is divided
into 3 business units that are:
· Broadband & Telephone (B&T) services
· Enterprise services
· Mobile services
Among the various services that the Bharti Airtel Limited Company provides to its
customers, the services of broadband and telephone (B&T) are 1 of them. The company
provides broadband Internet services of high speed for it has the best network in India.
The company Bharti Airtel also provides telephone services in around 94 cities of the
country and this helps the people to stay connected with one another. The company plans
to expand its broadband and telephone services by providing IPTV services and DTH
operations.
Further Bharti Airtel provides enterprise services to its customers. The services of
enterprise provide telecom end-to-end solutions to customers who belong to the corporate
sector and also long distance services to international and national carriers. The company
Bharti Airtel has more than 35,016 kilometers of optic fiber, a submarine landing station,
and is also a member of South East Asia- Middle East- Western Europe- 4. All this has
helped the company to provide the best enterprise services to its customers. The company
Bharti Airtel Limited plans to expand its enterprise services so that it can achieve the
status of a global carrier within a period of 2- 3 years.
Awards an d Recognition
Wireless service provider of the year 2005 at the Frost and Sulivan Asia-Pacific
ICT awards
Competitive service provider of the year 2005 at the Frost and Sulivan Asia-
Pacific ICT awards
Bharti Airtel added the highest ever net addition of 5.3 million customers in a
single quarter (Q4-FY0607) and also the highest ever net addition of 18 million
total subscribers in 2006-07
The company will invest up to $3.5 billion this fiscal (07-08) in network
expansion.
It has an installed base of 40,000 cellsites and 59% population coverage
After the proposed network expansion, an additional 30,000 towers will result in
the company achieving 70% population coverage
Bharti has over 39 million users as on March 31, 2007
It has set a target of 125 million subscribers by 2010
Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase
from 82.7% a year ago
ARPU has dropped to Rs 406
Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel
Live) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of
the previous year
Blended monthly minutes of usage per customer in Q4 was at 475 minutes
Has completed 100% verification of its subscribers and in the process

disconnected three lakh subscribers
Market N ews
Market Capitalisation
Approx. Rs. 1,670 billion Closing BSE share price = Rs. 880.75
Sales : 02.62 Billion $
Profits : 00.46 Billion $
Assets : 04.46 Billion $
Market Value : 41 Billion $
On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US $1.6
billion; and purchased a controlling stake in rival Hutchison Essar.
VODAFONE
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.
Revenue ▲ ￡31.104 billion GBP (2007)
Net income ▼ ￡-1.564 billion GBP (2007)
Slogan
Make the most of now (in many countries, their
previous slogan, How are you?, is still used)
Website www.vodafone.com
Vodafone is a mobile network operator headquartered in Newbury, Berkshire, England,
UK. It is the largest mobile telecommunications network company in the world by
turnover and has a market value of about ￡100 billion (December 2007). Vodafone
currently has equity interests in 25 countries and Partner Networks (networks in which it
has no equity stake) in a further 39 countries. The name Vodafone comes from Voice data
fone, chosen by the company to "reflect the provision of voice and data services over
mobile phones."
At 31 January 2007 Vodafone had 200 million proportionate customers in 25 markets
across 5 continents. ("Proportionate customers" means, for example, that if Vodafone has
a 30% stake in a business with a million customers, that is counted as 300,000). On this
measure it is the second largest mobile telecom group in the world behind China Mobile.
The eight markets where it has more than ten million proportionate customers are the
United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States. In
the U.S., these customers come via its minority stake in Verizon Wireless, and in the
other seven markets Vodafone has majority-controlled subsidiaries.
On 30 May 2006, the company announced a loss before tax of ￡14.9 billion for 2005, the
biggest loss in British corporate history. The loss for the year from continuing operations
was ￡17.2 billion and the bottom line loss for the financial year was ￡21.8 billion. The
company was pushed into loss by impairment charges of ￡23.5 billion, which related to
the acquisition of Mannesmann several years earlier, and losses of ￡4.6 billion in relation
to its discontinued business in Japan. At an operating level it remained highly profitable,
with an operating profit on continuing operations of ￡9.4 billion before impairment costs.
Vodafone’s original logo was used until the introduction of the speech mark logo in 1998.
In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK
cellular telephone network licenses. The network, known as Racal Vodafone was 80%
owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5%
respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was
renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986
Racal Electronics bought out the minority shareholders of Vodafone for GB￡110 million.
In September 1988 the company was again renamed Racal Telecom and on 26 October
1988 Racal Electronics floated 20% of the company. The flotation valued Racal Telecom
at GB￡1.7 billion. On 16 September 1991 Racal Telecom was demerged from Racal
Electronics as Vodafone Group.
In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for
￡30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples
Phone for ￡77 million, a 181 store chain whose customers were overwhelmingly using
Vodafone's network. In a similar move the company acquired the 80% of Astec
Communications that it did not own, a service provider with 21 stores.

In 1997 Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle;
the O's in the Vodafone logotype are opening and closing quotation marks, suggesting
conversation.
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc.
and changed its name to Vodafone airtouch plc. Trading of the new company commenced
on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-Plus
Mobilefunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the
largest German mobile network.
On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of
Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April
2000.
In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was
rejected. Vodafone’s interest in Mannesmann had been increased by the latter's purchase
of Orange, the UK mobile operator. Chris Gent would later say Mannesmann's move into
the UK broke a "gentleman's agreement" not to compete in each other's home territory.
The hostile takeover provoked strong protest in Germany and a "titanic struggle" which
saw Mannesmann resists Vodafone’s efforts. However on 3 February 2000 the
Mannesmann board agreed to an increased offer of ￡112bn, then the largest corporate
merger ever. The EU approved the merger in April 2000. The conglomerate was
subsequently broken up and all manufacturing related operations sold off.
Hutch Becomes Vodafone
In one of the biggest brand transition exercises in recent times, Hutch, India’s fourthlargest
mobile service provider will be renamed Vodafone. Vodafone is spending
somewhere in the region of Rs 250 crore on this high-profile transition.
Vodafone has acquired 67 per cent in Hutchison Essar from Hong Kong-based Hutchison
Whampoa, and completed the acquisition of Hutchison Essar in May 2007. The brand
change that will touch 3.5 crore customers and four lakh shops and employees will be
executed through a media blitz and the pug, which had become famous with its network
advertisement, will remain.
''This marks a significant chapter in the evolution of Vodafone as a dynamic and

evergrowing
brand. The brand change over the next few weeks will be unveiled nationally
through a high profile campaign covering all important media,'' a news agency quoted the
company statement as saying.
Leading broadcaster Star India has entered into an exclusive deal with Vodafone Essar
for the latter's re-branding campaign to Vodafone from Hutch.
Financial R esults
From its 31 March 2006 year end onwards Vodafone will report its results in accordance
with International Financial Reporting Standards (IFRS). It has issued results amended to
IFRS standards for its 31 March 2004 and 31 March 2005 year ends for information
purposes, and these are shown in the first table below.
Vodafone has some large minority stakes, which are not included in its consolidated
turnover. In order to provide additional information on the overall scale and growth
trends of its business it publishes "proportionate turnover" figures and these are included
in the tables below. For example, if a business in which it owns a 45% stake has turnover
of ￡10 billion that equals ￡4.5 billion of proportionate turnover for Vodafone.
Proportionate turnover is not an official accounting measure and Vodafone’s
proportionate turnover should be compared with other companies' statutory turnover.
Vodafone also produces proportionate customer number figures on a similar basis, eg. if
an operator in which it has a 30% stake has 10 million customers that equals 3 million
proportionate Vodafone customers. This is a common practice in the mobile
telecommunications industry
Losses for year to 31 March 2006 reflect write downs of assets, principally in relation to
the Mannesmann acquisition. Proportionate turnover includes ￡7,100 million from
discontinued operations.
Growth o f Hutchison Essar (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a company that
in 1994 was awarded a licence to provide mobile telecommunications services in
Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in
November 1995. Analjit Singh of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa
had acquired interests in six mobile telecommunications operators providing service in
13 of India's 23 licence areas and following the completion of the acquisition of BPL that
number increased to 16. In 2006, it announced the acquisition of a company that held
licence applications for the seven remaining licence areas.

In a country growing as fast as India, a strategic and well managed business plan is
critical to success. Initially, the company grew its business in the largest wireless markets
in India - in cities like Mumbai, Delhi and Kolkata. In these densely populated urban
areas it was able to establish a robust network, well known brand and large distribution
network -all vital to long-term success in India. Then it also targeted business users and
high-end post-paid customers which helped Hutchison Essar to consistently generate a
higher Average Revenue Per User ("ARPU") than its competitors. By adopting this
focused growth plan, it was able to establish leading positions in India's largest markets
providing the resources to expand its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding
agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect
equity and loan interests in Hutchison Essar Limited for a total cash consideration (before
costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through
ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh
and Chennai
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajastan,
Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar
Pradesh West' and 'West Bengal'
2005: Acquired BPL, another mobile service provider in India
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has
successfully launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network.
Hutch was often praised for its award winning advertisements which all follow a clean,
minimalist look. A recurrent theme is that its message Hello stands out visibly though it
uses only white letters on red background. Another recent successful ad campaign in
2003 featured a pug named Cheeka following a boy around in unlikely places, with the
tagline, Wherever you go, our network follows. The simple yet powerful advertisement
campaigns won it many admirers.

BSNL (BHARAT SANCHAR NIGAM LIMITED)
Type Communication Service Provider
Availability Countrywide except Delhi & Mumbai
Revenue US$ 9.04 billion (2006)
Owner The Government of India
Key people Kuldeep Goyal(CEO)
Founded 19th century, incorporated 2000
Website www.bsnl.co.in
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation
Limited) is a public sector communications company in India. It is the India's largest
telecommunication company with 25.14% market share as on December 31, 2007. Its
headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath,
New
Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sector
companies in India.
BSNL is India's oldest and largest Communication Service Provider (CSP). Currently
BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has footprints
throughout India except for the metropolitan cities of Mumbai and New Delhi which are
managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of
31.7 million Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile
subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR
397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is
India's largest Telco and one of the largest Public Sector Undertaking with estimated
market value of $ 100 Billion. The company is planning an IPO with in 6 months to
offload 10 % to public.
History
The foundation of Telecom Network in India was laid by the British sometime in 19th
century. The history of BSNL is linked with the beginning of Telecom in India. In 19th
century and for almost entire 20th century, the Telecom in India was operated as a
Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department
(P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was
responsible for running of Telecom services in entire country until 1985 when Mahanagar
Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of
Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of
Telecom to provide level playing field to private telecoms.Subsequently in 1990s the
telecom sector was opened up by the Government for Private investment, therefore it
became necessary to separate the Government's policy wing from Operations wing. The
Government of India corporatised the operations wing of DoT on October 01, 2000 and
named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.
Main Services being provided by BSNL
BSNL provides almost every telecom service, however following are the main Telecom
Services being provided by BSNL in India:-
1. Universal Telecom Sevices : Fixed wireline services & Wireless in Local loop (WLL)
using CDMA Technology called bfone and Tarang respectively. BSNL is dominant
operator in fixed line. As on December 31, 2007, BSNL had 81% marketshare of fixed
lines.
2. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile
Telephone services using GSM platform under brandname Cellone. Pre-paid Cellular
services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17% share of
mobile telephony in the country.
3. Internet: BSNL is providing internet as dial-up connection (Sancharnet) and

ADSLBroadband
Dataone. BSNL has around 50% marketshare in broadband in India. BSNL
has planned aggressive rollout in broadband for current financial year.
4. Intelligent Network (IN): BSNL is providing IN services like tele-voting, toll free
calling, premium calling etc.
BSNL Units
BSNL is divided into a number of administrative units, termed as telecom circles, metro
districts, project circles and specialized units, as mentioned below:-
Telecom Circles: Telecom Circles & Metro districts are responsible for providing service
to the customers. There are 24 Telecom Circles and 2 Metro districts.
BSNL Present & Future
Since its corporatisation in October 2000, BSNL has been actively providing connections
in both Urban and Rural areas and the efficiency of the company has drastically
improved from the days when one had to wait for years to get a phone connection to now
when one can get a connection in even hours. Pre-activated Mobile connections are
available at many places across India. BSNL has also unveiled very cost-effective
Broadband internet access plans (DataOne) targeted at homes and small businesses.
At present BSNL enjoy's around 45% of market share of ISP services.
· http://en.wikipedia.org/wiki/Image:India_Broadband.PNG
· http://en.wikipedia.org/wiki/Image:India_Broadband.PNG
Year of Broadband 2007
2007 has been declared as "Year of Broadband" in India and BSNL is in the process of
providing 5 million Broadband connectivity by the end of 2007. BSNL has upgraded
existing Dataone (Broadband) connections for a speed of up to 2 MB/s without any extra
cost. This 2 MB/s broadband service is being provided by BSNL at a cost of just US$ 5.5
per month. Further, BSNL is rolling out new Broadband services as Triple play
(telecommunications).
BSNL is planning to increase its customer base to 108 million customers by 2010. With
the frantic activity in the communication sector in India, the target appears achievable,
however due to intense competition in Indian Telecom sector in recent past BSNL's
growth has slowed down.

BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of US$
580 m (INR 2,500 crores) Rural Telephony project of Government of India.
Challenges
During Financial Year 2006-2007 (From April 01, 2006 to March 31, 2007) BSNL has
added 9.6 million new customers in various telephone services taking its customer base
to 64.8 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of
39 million. However, despite impressive growth shown by BSNL in recent times, the
Fixed line customer base of BSNL is declining. In order to woo back its fixed-line
customers BSNL has brought down long distance calling rate under OneIndia plan,
however, the success of the scheme is not known. However, BSNL faces bleak fiscal
2006-2007 as users flee, which has been accepted by the CMD BSNL.
Presently there is an intense competition in Indian Telecom sector and various Telcos are
rolling out attractive schemes and are providing good customer services. However, BSNL
being legacy operator and its conversion from a Government Department, earns lot of
criticism for its poor customer service. Although in recent past there have been
tremendous improvement in working of BSNL but still it is much below the Industry's
Expectations. A large aging (average age 49 years(appx)) workforce (300,000 strong),
which is mostly semi-illetrate or illeterate is the main reason for the poor customer
service. Further, the Top management of BSNL is still working in BSNL on deputation
basis holding Government employee status thus having little commitment to the
organisation. Although in coming years the retirement profile of the workforce is very
fast and around 25% of existing workforce will retire by 2010, however, still the
workforce will be quite large by the industry standards. Quality of the workforce will
also remain an issue.
IDEA
Type
IDEA: Public, Listed on BSE
Idea: Subsidiary
Founded
IDEA: 1995
Headquarters
IDEA: Mohali, India

Idea: Indore, Delhi, Pune, India
Key people
Idea: Chairman: Kumar Mangalam Birla ; MD: Sanjeev Aga
Industry Telecom/
Products Mobile operator
Revenue
http://www.moneycontrol.com/india/news/business/ideacellulars-
revenue479-/394751
Slogan
Idea: An !dea can change your life.
Idea: www.ideacellular.com
Introduction to Idea
IDEA Cellular is a publicly listed company, having listed on the Bombay Stock
Exchange (BSE and the National Stock Exchange (NSE) in March 2007.
Idea Cellular is a leading GSM mobile service operator with pan India licenses. With a
customer base of over 36 million in 15 service areas, operations are soon expected to
start in Orissa and Tamil Nadu-the first steps in providing pan India services covering
over 90% of India's telephony potential.
A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction
of offering the most customer friendly and competitive Pre Paid offerings, for the first
time in India in an increasingly segmented market.
Customer Service and Innovation are the drivers of this Cellular Brand. A brand known
for many firsts, Idea was the first to launch GPRS and EDGE in the country. Idea has
received international recognition for its path-breaking innovations when it won the GSM
Association Award for "Best Billing and Customer Care Solution" for 2 consecutive
years.
IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational
corporation. The group operates in 25 countries, and is anchored by over 100,000
employees belonging to 25 nationalities. The Group has been adjudged 'The Best
Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and
Wall Street Journal Study 2007.
Idea a cquires Spice Telecom

Idea Cellular, an Aditya Birla Group company, along with Telecom Malaysia
International (TMI) announced the acquisition of 40.8 per cent stake in Spice
Communications Limited (Spice) at a price of Rs. 77.30 per share. TMI is an emerging
leader in Asian telecommunications with over 44 million subscribers and a presence in 10
countries. The operational synergies emerging out of this merger would augur well for
both the telecom players.
The acquisition of Spice gives Idea the much needed headway in Punjab and
Karnataka states that account for more than 10 per cent of India’s wireless subscribers.
The entire process of the merger between both the companies would take six to eight
months to complete. Post merger, Idea is looking at a pan-India presence. The deal also
gives Idea the opportunity to leverage.
Idea Cellular, the leading GSM mobile services operator has licenses to operate in all 22
service areas of India with commercial operations in 11 service areas. With a customer
base of over 26 million, it runs operations in Delhi, Himachal Pradesh, Rajasthan,
Haryana, Uttar Pradesh (East), Uttar Pradesh (West) & Uttaranchal, Madhya Pradesh &
Chattisgarh, Gujarat, Maharashtra & Goa, Andhra Pradesh, and Kerala, holds spectrum
for Mumbai, Bihar, Orissa, Tamil Nadu (including Chennai), and Karnataka, and licenses
for the remaining six service areas.
With the planned launch of services in Mumbai, Bihar and Jharkhand, Orissa and Tamil
Nadu (including Chennai) towards the end of the calendar year, Idea's footprint will soon
cover approximately 90 per cent of India's telephony potential.
Idea has acquired Spice Telecom and the deal consists of 4
transactions:
· Idea will acquire the Modi’s 40.8% stake in Spice (for Rs 2,720 crore).
· Idea will launch the mandatory 20% open offer for the Spice shareholders, jointly
with Telecom Malaysia International (TMI).
· Idea will merge Spice with itself and offer a 14.99% stake to TMI through a
preferential allotment.
· The Idea-TM combine will launch the open offer at Rs 77.30 jointly with TMI,
which now holds 39.2%in Spice
The official brand name has been changed from Spice to Idea in these circles w.e.f. 19th
December 2008.
LITERATURE REVIEW
Previous research in British telecom industry has often quoted price, quality, and service
as the main factors considered in the purchasing decision of buyers from competing
suppliers (Financial Times, 1966; Buckner, 1967; McBeth et al., 1972). In this
research, an effort is made to simplify the part of service as a competitive strategy by
using a variety of forces which drives an industry in the direction of competition based
on the support from some sources suggesting that the service scope is now essential for
every business.
What business strategy is all about is, in a word, competitive advantage… The sole
purpose of strategic planning is to enable a company to gain, as efficiently as possible, a
sustainable edge over its competitors. Corporate strategy thus applies an attempt to alter a
company’s strength relative to that of its competitors in the most efficient way.
For decades, companies relied on push marketing to sell their products and services.
Then in the 1990s, the emphasis shifted to relationship marketing, as “customer care” and
slogans like “delight your customers” became the mantra of many marketers. But those
tactics have been loosing their effectiveness, innovative companies are now trying a
different approach: they are providing customer with open, honest, and complete
information (Glen L. Urban, 1984). To exist and flourish in the today’s competitive
market a company needs to have a basis of competitive advantage. The search for and
nourishment of such advantage may be found in superior products that customer value,
by effective cost or differentiation strategies or financial aptitude
Customer satisfaction and service quality should be entrenched within the chapter
principles of a business. This value enables an organisation to distribute the services to
the client in a strategic and an incorporated approach, and in a sustainable manner. Over
the past decade, the nation has moved into a service economy, and organizations
everywhere are becoming customer focused and customer driven.
However since customer satisfaction has become a significant determinant as an element
of assessing an organization performance. It was first found in Sweden in 1992, with the
establishment of the Swedish customer satisfaction index. Other developments have
taken place in Germany, USA, UK, and gradually world wide awareness has been shown.
Customer service is a gradually becoming more and more significant focuses for
administration attention, since it generates wealth for the company by adding together at
the same time value for the customers (Christopher, 1992; LaLonde et al., 1994). Firms
are now aware of the need to preserve their existing customer and to create customer
loyalty but first there is a need to make a clear terminology. Customer may be loyal
because of the absence of substitutes, or due to of some incentives but, given real and
more numerous competitive alternatives; loyal customers are best achieving by
delivering customer satisfaction. Customer satisfaction can be measured but it is not a
management activity. Rather, it is a measure of customer awareness to marketing stimuli
in a known competitive environment. Customer service can be defined as a sellerinitiated
attempt which has value for the buyers, therefore growing customer satisfaction
and encouraging patronage and loyalty. This definition has been reflected in the literature
as customer service has changed from an action to a procedure and business beliefs (Bill
Donaldson, 1995).
In most businesses, some firms are more profitable than others, in spite of whether the
standard productivity of the industry is high or low. These distinctive expertise and assets
(resources) are referred to as source of competitive advantage. Competitive advantage
results either from applying a value-creating strategy not at the same time being applied
by any present or prospective competitors (Barney, 1996; Barney et al., 1997) or
through better implementation of the similar strategy as of competitors. Sustainability is
accomplish when the advantage resists erosion by competitor behavior .A competitive
advantage can come into effect either from presenting greater value or ``out-executing’’
major competitors .A competitive advantage is constantly achieved when other firms are
unable to copy the benefits of this strategy. Because of its significance to the long lasting
success of firms, this body of literature has come out, which concentrates on the content
of sustainable competitive advantage as well as its sources and different types of
approaches that may be used to attain it. In other words, the skills and resources
underlying a business’s competitive advantage must oppose duplication by other
companies to discuss the precise mixture of skills and resources, which are exclusive to
service industries. For instance, they suggest that the greater the difficulty of assets
needed to market a service; the greater is the significance of novelty as a basis of
competitive advantage will turn out to be. They also suggests that the brand equity turn
out to be a significant source of competitive advantage in service industries as the level
of service offered becomes more intangible and when customers have a great need to
conquer the perceptions of risk. Intangible resources may certainly appropriate than
tangible ones to attain a sustainable competitive advantage. Given that the
accomplishment of sustainable competitive advantage is based on an external focus, it is
appealing to note that those intangible possessions that are external to the company may
add the most to value creation and consequently sustainable competitive advantage.
The various mobile service industries are trying to attain greater customer satisfaction by
focusing on the quality of their products and services supplied. Maintaining a uniform
level of customer satisfaction is not easy task, it involves observing and calculating
multiple, as well as simultaneous moment of truth for each and every consumer. Figure
illustrates all the key elements which influence customer satisfaction in an organization.
Now a days Researchers and practitioners has given a significant amount of attention to
the service quality in an organization It has been defined as a type of an approach,
associated but not corresponding to satisfaction. This results from the evaluation of
probable service levels with perceived performance (Parasuraman et al., 1998; Bolton
and Drew, 1998; Cronin and Taylor, 1998). In short, customers enter a consumption
experience expecting a positive level of service. Throughout that consumption

experience, they monitor genuine service performance. The customer’s subjective
assessment of how well (or badly) that actual performance compares to probable
performance results in the perceived service quality. There is substantial proof that
service quality works as an antecedent to customer satisfaction. In addition, it should be
noted that the high levels of consumer satisfaction leads to better consumer loyalty.
According to Parasuraman outstanding service is a lucrative strategy, as it results in
additional new customers, smaller amount lost customers, more trade with existing one,
smaller number mistakes requiring the re-performance of services and more insulation
from price competition. Profit impact of market strategy (PIMS) research has pointed out
that the companies that present better-quality of service are able to charge 8 per cent
more for their services, while attaining higher than normal market share growth and
profitability. Therefore, offering better-quality service can help the companies to become
more cost-effective and helped them to sustain a competitive advantage in their supplied
markets. However, prior to service up gradation programs are introduced, present service
quality levels needs to be dealt with (Berry, 1999). These judgments should identify the
strengths and weaknesses of the service quality at present being delivered. Furthermore,
approaches concerning how to distinguish through enhanced service quality that is to
achieve a competitive advantage, involves evaluating quality assessments to those of
competitors, (Berry and Parasuraman, 1999). Such a contrast offers a strategic lens by
helping to create priorities for the improvement of the service quality as well as
categorizing which service quality attribute to highlight in distinguishing the company’s
service offer. In today’s competitive environment, the search of service quality is now
considered to be an essential business strategy. Nowadays, contributing a better-quality
product is no longer satisfactory, as companies in the new era compete on a much
broader platform. An outstanding product is no longer the ticket to global market
supremacy, but merely the entrance fee to compete.
Quality of service in a cellular industry market is likely to become especially prevalent as
the global economy becomes increasingly service oriented with competition well
established. When competition exists, customer can set aside old loyalties and choose the
service provider which best serves their need. Potential and actual competitiors will have
a vital interest in identifying areas of quality where there is potential to gain or sustain
competitive advantage and subsequently set their quality levels and prices accordingly. In
this competitive environment, it will be essential to ensure that each customer is getting
value for money. The concept of ‘value’ has already been identified as being a major
factor in determining customers’ purchasing preferences, and a major component of
value is quality. Customers are also beginning to realize that they have a major role to
playing setting quality levels within the cellular industry and also in determining what
new services should be introduced. Customers are beginning to come together to form an
organization and thus increasing the volume and power of their voice within the industry.
RESEARCH METHODOLOGY
Research methodology is a careful investigation for inquiring in a systematic method and
finding solution of a problem. It comprises the defining and redefining of problem
formulating hypothesis, collection and evaluating data, making detection and reaching
conclusion. This research consists of following element:
 RESEARCH DESIGN
 SAMPLING DESIGN
 SAMPLING UNIVERSE
 SAMPLING UNIT
 SAMPLING TECHNIQUES
 SAMPLE SIZE
 DATA DESIGN
RESEARCH DESIGN
Decision regarding what, when, where, how much, by what mean, concerning an enquiry,
constitute a research design. In this study the research design is of exploratory type.
SAMPLE UNIVERSE
Collection, population, or set of entities, items, or quantities (grouped together on the
basis of common or defining characteristics or features) from which a representative
sample is drawn for comparison or measurement. So every user of Airtel, Vodafone,
BSNL, and Idea is the sample universe.
SAMPLING UNIT
It is one of the units into which an aggregate is divided for the purpose of sampling, each
unit being regarded as individual and indivisible when the selections made. So every
person subscribed to Airtel, Vodafone, BSNL, and Idea is the sampling unit.
SAMPLING TECHNIQUE
In the survey the non probability convenience sampling is followed.
SAMPLE SIZE
The sample size of a statistical sample is the number of repeated measurement that
constitutes it. It is typically denoted n, and is a non-negative integer.
This refers to the number of items to be selected from universe to constitute a sample.
The survey has been conducted on sample size of 100.
DATA DESIGN
In nature of data, it was both primary and secondary.
PRIMARY DATA
Primary data is one which is collected first time and original in nature. This can be done
in following ways:
 Observation
 Personal interview
 Telephone
 Questionnaire
In the survey, the data was collected through questionnaires which had opened ended and
multiple choice questions.
SECONDARY DATA
The data which is already collected by someone else. This was collected through
journals, magazines, newspaper and internet.
DATA ANALYSIS
The data analysis was done by different types of methods like rating, pie charts,
percentage, tables and through graph.
NEED AND SCOPE
Telecom sector is growing at a highest rate ever. This sector is striving to tap almost each
potential customer to render its services. Having mobile has been become the need of
every person. Nowadays everybody wants to enjoy these services.
With liberalization, privatization and globalization after 1991,so many companies are
operating in India hence the market is quite competent With so much competition
prevailing ,companies are interested to know the customers perception towards various
mobile services so as to work on it and capture the market.
The main objective of the study is to find out the competitive edge of one company over
other. Which company is having the highest market share, what are the different services
are offered by them, how brand conscious. And brand loyal they are, what are customer’s
perception of different factors of different mobile service providers etc.
The Indian mobile market is growing rapidly, and along with it the demand for content
and applications for handsets. According to the cellular operators association of India
(COAI), the mobile subscriber base in GSM and CDMA has grown from 88.48 million in
January 2006 to 93 million (GSM 65.2 million, CDMA 27.82 million) in February. As
per COAI, the GSM mobile industry holds 77 percent of the total mobile market in India
and accounts for 74 percent of additions.
The total number of telephone subscribers has reached 241.02 million at the end of
August 2007 as compared to 232.87 million in July 2007. The overall teledensity has
increased to 21.20% in August 2007 as compared to 20.52% in July 2007.
Rising demand for handsets has led operators to offer services other than voice calls.
Thus, the content or value-added services (vas) market comprising music, wallpapers,
web, ring tones and gaming is growing rapidly
TRAI has put mobile sector revenues at around Rs 25,000 crore for fy05 comprising both
voice and data services. These revenues have been growing at a compounded annual rate
of 40 percent over the last five years. Revenues from vas such as SMS, ring tones and
ringback tones were about 10 percent of that recorded last year.
With the number of mobile users growing, there is a growing opportunity for service
Provider in India, wireless operators, music and film companies, comics content
developers, game developers and musicians are all entering the mobile content market for
ringtones, gaming, mobile imagery and streaming audio and video. Some players in the
content segment are mauj, indiagames, hungama, soundbuzz (music) and coruscant etc.
Present study covers Airtel, Vodafone, BSNL and Idea operators. Only GSM
operators operating in various regions of Punjab are taken under study. These regions
include the districts like Bathinda, Mansa, Barnala, Sangrur, Patiala, and Fatehgarh
Sahib.
OBJECTIVES OF STUDY
·To know the market share of various companies of telecom sector in uttar pradesh
·To know the various factors attributing to competitive edge of one mobile service
provider over others.

·To know whether the Youth want to change their current mobile service provider when
they are permitted to retain the current mobile phone number that they had.
·To know the importance of price of different mobile service providers used by different
customers.
·To know the importance of quality of service of different mobile service providers used
by different customers
·To know the importance of availability in different states in terms of roaming of
different mobile service providers used by different customers.
·To know the perception of different factors of different mobile service providers.
LIMITATIONS OF THE STUDY
· The research will be conducted in a limited area.
· The internet information can be irrelevant.
· Time will be a major constraint.
· Smaller sample may not always give better results. Sample may not be true
representative of the whole population.
· The possibility of biased responses can’t be ruled out.

· Due to language problem it is possible that the respondents are not be able to
understand the questionnaire and can cause misleading results.
· Lack of availability of full information.
· Lack of interest of respondents.
DATA ANALYSIS AND INTERPRETATION
1. Subscription of Customers with current Mobile Service Provider.
Respondents were asked about their subscription, results gathered are shown below:
TABLE 1:- Table 1 showing percentage of respondents subscribed with different Mobile
Service Providers.
PARTICULARS NO. OF RESPONDENTS (in %age)
Airtel 35
Vodafone 28
BSNL 25
Idea 12
FIGURE 1:- Figure 1 showing percentage of respondents subscribed with different
Mobile Service Providers.

FIGURE 1
INTERPRETATION:- From the data collected, we came to know that 35% respondents
are subscribed with Airtel,28% respondents are subscribed with Vodafone,25% and 12%
are associated with BSNL and Idea respectively. From this data, it is clear that
more respondents are associated with Airtel.
2. Sources of information which makes customers aware about their mobile service
provider.
Respondents were asked about the sources of information from where they got aware
about the companies, results gathered are mentioned below:
Current Mobile Service Provider of
Respondents
35%
28%
25%
12%
Airtel VodafoneBSNL Idea

TABLE 2:- Table 2 showing the sources from where the customers got acquainted with
these companies.
FIGURE 2:- Figure 2 showing the sources from where the customers got acquainted
with these companies.
6%
25%
43% 7% 3%
12%
4%
News Paper
T.V.
Magazines
Internet
Friends
Mobile Phone Retailer
Other
FIGURE 2
INTERPRETATION:- From the data collected, we find that 43% become aware about
their mobile service provider from their friends, 25% gets information from T.V., 12%
from Mobile phone retailers,6%, 7% from newspapers and Internet respectively and few
get it from hoardings or other sources. It is the word of mouth of friends that make aware
most of the customers about their mobile service provider.
PARTICULARS NO.OF RESPONDENTS Percentage
Newspaper 7 6
T.V. 28 25
Magazines 3 3
Internet 8 7
Friends 49 43
Mobile phone retailers 13 12
Other 5 4
3. Usage the current mobile phone services
Respondents were asked about how many years they have been using the current mobile
phone services, results gathered are mentioned below:
TABLE 3:- Table 3 showing the No. of years the respondents have been using the
current mobile phone services
1 year 20
2 years 25
3 years 11
More than 3 years 44
FIGURE 3:- Figure 3 showing the No. of years the respondents have been using the
current mobile phone services
FIGURE 3
INTERPRETATION:- Out of 100 respondents, 44% respondents have been using their
current mobile services for more than 3 years, 25% are using their services since 2 years
and 20% & 11% are using their services since 1 year & 3 years respectively. This clears
that customers are not most interested to switch their current mobile service provider.
4. Different Mobile Service Providers used by Customers in the past
Respondents were asked about how many different mobile phone service providers have
you had in the past. The information collected is given below:

TABLE 4:- This table 4 shows the no. of respondents with their past experience with
their mobile service providers.
None 16
1 35
2 20
3 29
FIGURE 4:- This figure 4 shows the no. of respondents with their past experience with
their mobile service providers
16%
35%
20%
29%
None
3
FIGURE 4
INTERPRETATION:- From the data collected, we came to know that 35% respondents
having just 1 mobile service provider in the past, 29% having 3 mobile service providers,
20% having 2 mobile service providers in the past and 16% don’t have any mobile
service providers in the past. From this data it is clear that more respondents have been
using the mobile service providers in the past.
5. Preference of customers in mode of subscription.
Respondents were asked about whether they are postpaid customer or prepaid, results
gathered are shown below:
TABLE 5:- Table 5 showing percentage of prepaid and postpaid customers.
RESPONSE NO. OF RESPONDENTS (in %age)
Prepaid 81
Postpaid 19
FIGURE 5:- Figure 5 showing percentage of prepaid and postpaid customers
FIGURE 5
INTERPRETATION: From the information collected it is clear that 81% youth are
PREPAID customers and 19% are POSTPAID customers. More Youth believe in prepaid
connections.
6. Switching Habits of Customers
Respondents were asked if they are permitted to retain the current mobile phone number
that they have, then they would change their current mobile service provider
TABLE 6:- This table 6 showing whether respondents are satisfying or not when they
were asked if they are permitted to retain the current mobile phone number that they
Yes 33
No 67
FIGURE 6: This figure 6 showing whether respondents are satisfying or not when they
were asked if they are permitted to retain the current mobile phone number that they
Yes
33%
No
67%
FIGURE 6
INTERPRETATION: Out of 100 respondents 67% are not satisfying to change their
current mobile service provider even if they are permitted to retain the current mobile
phone no.. Only 33 % are satisfied to change their current mobile service provider when
they are permitted to retain the current mobile phone no.
7. Selection of Brand
TABLE 7:- This table 7 shows the brand of different mobile service providers which are
to be preferred when the respondents are satisfied to change their current mobile service
provider when they are permitted to retain the current mobile phone no.
Airtel 17
Vodafone 9
BSNL 5
Idea 2
FIGURE 7:- This figure 7 shows the brand of different mobile service providers which
are to be preferred when the respondents are satisfied to change their current mobile
service provider when they are permitted to retain the current mobile phone no.
52%
27%
15%
6%
Airtel
Vodafone
BSNL
Idea
FIGURE 7
INTERPRETATION:- 52% respondents prefer to adopt Airtel when they are satisfied to
change their current mobile service provider when they are permitted to retain the current
mobile phone no., 27% respondents prefer to adopt Vodafone and 15% & 6%
respondents rated their preference to BSNL and Idea respectively.
8. Usage of Mobile Services for anything beyond making calls and text messaging.
Respondents were asked whether they used their mobile services for anything beyond
making calls and text messaging. The data collected is:
TABLE 8:- This table 8 showing the usage of mobile services for anything beyond
making calls and text messaging.
Yes 43
No 57
FIGURE 8:- This figure 8 showing the usage of mobile services for anything beyond
making calls and text messaging
FIGURE 8
INTERPRETATION:- When respondents were asked whether they used their mobile
services for anything beyond making calls and text messaging then we came to know that
57% repondents just use their mobile services for making calls and text messaging but
43% respondents use these mobile services for making calls and text messagings as well
as for accessing GPRS on their mobile phones.
9. Importance of various factors in a mobile service provider.
Respondents were asked to rank the importance of various factors on a 5 point scale in a
mobile service provider. The rank given by them are:
TABLE 9:- This table 9 showing Importance of various factors in a mobile service
provider.
RATING
FACTORS
Very Poor Poor Average Good Excellent
Price
5# 7 33 43 12
Quality of service
(connectivity)
3 3 24 51 19
Varieties of products
offered
4 7 25 50 14
Availability in different
states (roaming)
3 7 27 43 20
# represents percentage of respondents
FIGURE 9:- This figure 9 showing Importance of various factors in a mobile service
provider.
10
20
30
40
50
60
Price Quality of service
(connectivity)
Varieties of
products offered
Availability in
different states
(roaming)
Very Poor
Poor
Average
Good
Excellent
FIGURE 9
INTERPRETATION: - Out of 100 respondents, we came to know that more customers
i.e. 43% wish the price of their mobile service provider should be good, 51% customers
want good quality of service in terms of connectivity.50% customers want good varieties
of products that should be offered by mobile service provider and 43% customers want
good availability of their mobile service provider in different states that could provide
good roaming facility to them.
10. Importance of price in different brands.
The data collected is given below:
TABLE 10:- This table 10 shows the importance of price on a 5 point scale in different
brands.
RATING
BRANDS
Airtel 5# 6 33 37 19
Vodafone 3 7 30 47 13
BSNL 5 16 27 32 20
Idea 5 16 37 31 11
# represents %age of respondents
FIGURE 10:- This figure 10 shows the importance of price on a 5 point scale in different
brands.
FIGURE 10
INTERPRETATION:- From the data collected, it is to be seen that 37% respondents
rate Airtel as a good brand in terms of price, they also rate 47% & 32% to Vodafone and
BSNL respectively but 37% of respondents’ rate to idea
11. Importance of quality of service in different brands.

TABLE 11:- This table 11 is showing the importance of quality of service on a 5 point
scale in different brands.
RATING
BRANDS
Airtel 0# 3 6 42 49
Vodafone 0 5 28 53 14
BSNL 16 20 37 23 4
Idea 8 13 41 27 11
FIGURE 11:- This figure 11 shows the importance of quality of service on a 5 point
scale in different brands.
FIGURE 11
INTERPRETATION: - From the data collected, it is clear that more respondents i.e.
49% rate Airtel as an Excellent brand in terms of quality of service provided by Airtel,
53% respondents rate Vodafone as a Good brand in terms of quality of service provided
by Vodafone, 37% & 41% respondents rate BSNL & Idea as an Average brand in
terms of quality of service provide by BSNL & Idea respectively. From this data,
we came to know the preference of respondents to the Vodafone for the quality of service
provided by Vodafone.
12. Importance of Availability in different states of different brands.
TABLE 12:- This table 12 shows the Availability in different states on a 5 point scale in
different brands.
RATING
BRANDS
Airtel 0# 0 17 37 46
Vodafone 0 0 23 57 20
BSNL 5 9 29 37 20
Idea 7 17 29 40 7

FIGURE 12:- This figure 12 shows the Availability in different states on a 5 point scale
in different brands.
FIGURE 12
INTERPRETATION:- From collected data, we came to know that 46% people rate
Airtel as Excellent in terms of availability in different states, 57%, 37% & 47% people
rate Good to Vodafone, BSNL and Idea respectively in terms of availability in
different states. From this we can observe that more respondents are satisfied with the
services provided by Airtel in terms of availability in different states.
13. Rank wise perception of various factors of different companies by all the
respondents.
Respondents were asked about their perception of factors which influence them to
associate with each company, results gathered are mentioned below:
TABLE 13:- Table 13 showing perception of various factors of different companies by
all the respondents.
Factors
Rank given
by
Respondents
Airtel Vodafone BSNL Idea
Network
1 75# 13 8 7
2 16 57 14 14
3 5 23 22 39
4 4 7 56 40
Call Cost
1 17 24 50 17
2 19 41 23 20
3 29 21 17 33
4 35 14 10 30
Customer
Care
1 39 31 18 9
2 31 33 19 19
3 17 27 20 47
4 13 9 43 25
Dealers
1 57 19 11 5
2 27 47 22 10
3 7 27 28 37
4 9 7 39 48
# represents percentage of respondents
INTERPRETATION: - From the data collected, it is clear that 75 percentage of
respondents rank 1 to Airtel in terms of the Network provided by it, 50 percentage of
respondents rank 1 to BSNL in terms of Call Cost, Customer Care service of Idea
is better from its competitors as it is shown from the data collected and there are too
many Dealers for Airtel in compare to others as it is clear from collected data.
FINDINGS
· Few years back mobile connections were not common among the students. But
with the mobile revolution now we can find almost every student with mobile
phone.
· Most of the students prefer prepaid connections than postpaid connections.
· Most preferred cellular company amongst the students is Airtel and the least
preferred company is Idea.
· Friends and T.V. are the best media advertisements that put more impact on the
students buying decisions.
· Maximum respondents were using their current mobile service providers for more
than 3 years.
· Majority of customers don’t want to change their current mobile service provider
even if they are permitted to retain the current mobile phone number that they
had.
· Mostly the students are satisfied with the services provided by the different
cellular companies.
· Mostly the Youth don’t use their mobile services beyond making calls and text
messages.
· Majority of customers do associate with BSNL due to its comparatively low cost
and free calls. Airtel attract customers due to its wide network and more Dealers.
Vodafone due to its network, call cost and customer care service. Idea due
to its network and customer care.
CONCLUSION
Telecom sector is booming sector. Its market is quite competitive in U.P with so many
companies venturing here. Most of the customers are associated with BSNL due to its
comparatively low call cost and roaming charges. Airtel has lost its market share due to
its high call cost. Vodafone is gaining market share due to its low call cost with good
network. Idea seems to be on the threshold of loosing almost everything.
Portability of number is the demand of customers from companies’ side.
Due to the ever burgeoning telecom market, these service providers have started offering
competitive rates for long distance calls, competitive rate plans and great discounts.
Due to the growing need for mobile phones, it’s no wonder that service providers are
going all out to capture, as much market space as they can.
As the number of mobile phone users are estimated to rise to about 120 million by 2008,
it’s not surprising that most of the leading service providers in India have started
branding and marketing their services more aggressively.
India’s telecommunication sector has been touted as one of the most lucrative markets for
mobile service providers and also for global mobile companies.
SUGGESTIONS
 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 also start providing 3G technology in Rural as
well as Urban areas.
 Mobile service providers should provide various schemes for their existing
customers.
 Tariff plan for STD and ISD calls should be reduced.

BIBLIOGRAPHY
BOOKS REFERRED:
· Kothari C.R., “Research methodology” “Vishwa Publication, New Delhi, 2nd
edition.
· Kotler, Philip, “Marketing Management”, Prentice Hall of India Pvt. Ltd. New
Delhi, 9th edition.
WEBSITES USED:
· http://www.airtel.in
· http://en.wikipedia.org/wiki/Idea_Cellular
· http://en.wikipedia.org/wiki/Spice_Telecom
· http://www.pluggd.in/indian-telecom-industry/idea-tmi-acquires-spice-telecom-
1805/
· http://www.adityabirlanuvo.com/media/features/features.aspx?ID=1d95UDdxCdM
· http://www.mobiles.in/mobile-service-providers.htm
· http://www.trai.gov.in/
· http://www.bsnl.co.in/about.htm
· http://www.scribd.com/doc/8201189/study-of-students-preference-differentmobile-
service-providers
· http://trak.in/Tags/Business/telephone-subscribers/
ANNEXURE
QUESTIONNAIRE
Q: 1) Who is your current mobile phone service provider?
o AIRTEL
o VODAPHONE
o BSNL
o IDEA
Q: 2) Which of the following information source/s have you used for the purchase of mobile
service?
o News paper o T.V. o Magazines
o Internet o Friends o Mobile phone retailer
o Other __________________
Q: 3) How many years have you been using the current mobile phone services?
o 1 year
o 2 years
o 3 years
o More than 3 years
Q: 4) How many different mobile phone service providers have you had in the past?
o1
o2
o3
o None
Q: 5) Do you have a postpaid or a prepaid relationship?
o Prepaid o Postpaid
Q: 6) If you are permitted to retain the current mobile phone number that you have,
would you change your current mobile phone service provider?
o Yes o No
Q: 7) If so, which brand would you select? (Select only one)
o Airtel
o Vodafone
o BSNL
o Idea
Q: 8) Do you use your Mobile Service for anything beyond making calls and text
messaging?
. Yes, Please Specify______________________
. No
Q: 9) Rate the importance of following factors on 5 point scale in a mobile service
provider.
Price
Quality of service
(connectivity)
Varieties of products
offered
Availability in different
states (roaming)
Q: 10) Rate the importance of price on a 5 point scale in the following brands.
Airtel
Vodafone
BSNL
Idea
Q: 11) Rate the importance of quality of service on a 5 point scale for the following
brands.
Airtel
Vodafone
BSNL
Idea
Q: 12) Rate the importance of availability in different states on a 5 point scale for the
following brands.
Airtel
Vodafone
BSNL
Idea
Q: 13) Rank the following factors(from 1-4)according to your Perception for a particular
factor 1 for most preferred and 4 for least preferred?
Airtel Vodafone BSNL Idea
Network . . . .
Call Cost . . . .
Customer Care . . . .
Dealers . . . .
PERSONAL INFORMATION
Name: _______________________
Gender: o Male o
Female
Address:______________________
_______________________
Contact No.__________________

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PROJECT REPORT

YOUTH PERCEPTION OF GSM MOBILE

(A CASE STUDY OF U.P)

MASTERS OF BUSINESS ADMINISTRATION

Under the Supervision of

m/s shivani kapoor

ADITYA PRATAP RAGHUVANSHI

Providers: A Case Study of UTTAR PRADESH” Submitted By Aditya pratap

DEAN:M/S SHIVANI KAPOOR

DAYANAND ACADEMY OF MANAGEMENT STUDIES

I am also thankful to Mr.Swet Saxena, Head of the Department, dayanand academy of

facilities in the department.

Aditya pratap raghuvanshi

CHAPTER NO. PARTICULARS PAGE NO.

INTRODUCTION TO THE STUDY

· Telecom Sector in India

· Classification of Telecom Services

· Introduction to the Companies

· Need & Scope

· Objectives of the Study

· Limitations of the Study

DATA INTERPRETATION AND ANALYSIS

Table 1 showing percentage of respondents subscribed with different Mobile

mobile phone services.

mobile service providers.

Table 5 showing percentage of prepaid and postpaid customers.

calls and text messaging.

This figure 11 shows the importance of quality of service on a 5 point scale in

This table 12 shows the Availability in different states on a 5 point scale in

Table 13 showing perception of various factors of different companies by all the

Figure 1 showing percentage of respondents subscribed with different Mobile

mobile phone services.

mobile service providers.

Figure 5 showing percentage of prepaid and postpaid customers.

calls and text messaging.

Figure 9. This Figure 9 showing Importance of various factors in a mobile service

This figure 11 shows the importance of quality of service on a 5 point scale in

to discovering something about one or all of the things being compared.

This technique is often utilizes multiple disciplines in one study.

the majority of comparative studies can be use quantitative data.

conclusions will not be very helpful.

Secondary analysis of quantitative data is relatively widespread in comparative research,

country’s policy environment. A typical method of comparing welfare state is to take

balance their levels of spending on social welfare.

Comparative research is a methodology in the social sciences that aims to make

comparisons across different countries and cultures. A major problem in comparative

define categories differently/

industrial and service, in any economy.

globe, in terms of privatization and competition. Opening up of economics and

600 billion in next 5 years.

introduction of competition in basic telecom services. The government has announced a

some PSUs) who are technologically not competitive is bound to happen.

· TRAI (TELECOM REGULATORY AUTHORITY OF INDIA)

The Telecom Regulatory Authority of India or TRAI (established 1997) is the

independent regulator established by the Government of India to regulate the

the TRAI Act of 1997 (Amended 2000), is responsible for:

Notwithstanding anything contained in the Indian Telegraph Act,1885,the functions of

the Authority shall be to-

(i) need and timing for introduction of new service provider;

(ii) terms and conditions of license to a service provider;

(iii) revocation of license for non-compliance of terms and conditions of license:

(iv)measures to facilitate competition and promote efficiency in the operation of

(v) technological improvements in the services provided by the service providers.