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DECLARATION

I am KULDEEP KUMAR student of B.B.A. VI semester at KALKA, Meerut, hereby declare that this summer project report title COMPARATIVE STUDY OF CUSTOMER SATISFACTION BETWEEN AIRTEL & VODAFONE MOBILE USERS IN DELHI, is result of original data collection and my own effort with Industrial staff co-operation.

KULDEEP KUMAR B.B.A VI Semester Roll No. - 8623522

Acknowledgement
I would like to express my sincere gratitude towards KALKA, Meerut for providing me the opportunity to work and learn through this end-term project. I am extremely grateful to my esteemed project guide, Dr. REKHA SHARMA (Head of Department, Management) for giving me an opportunity to work with him and his indispensable help and guidance throughout this project and for inspiring me to strive to achieve the best in difficult situations. While doing the project I visited many companies in Delhi region and met many senior personnel. I would like to extend my special thanks to all of them for sparing their time to patiently answer the questions and giving their views. KULDEEP KUMAR B.B.A VI SEMESTER ROLL NO. 8623522

Preface
This project had been undertaken for Comparative Study Of

Customer Satisfaction Between Airtel & Vodafone Mobile Users In Delhi. In order to gather the most

appropriate and accurate data survey was conducted in various location and markets in Delhi. The data was assimilated with the help of a questionnaire aimed and designed to extract the most correct and conclusive information. The consumers were requested to fill the questionnaire and were also asked various other relevant questions revealing detailed information apart from that in the questionnaire. The survey was conducted successfully and its findings have been studied, analyzed and have led to a conclusion, included in the report, which could prove to be fruitful for the project.

Executive Summary
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Marketing is innovative field. Here nothing can be assumed. Whatever ideas we generate, we have to test them and they must be supported by proved results. For this, marketing research is very important. Comparative study is one such aspect that is very difficult to measure by guesswork. Anything you say about it, it must be based on reliable research. I am going to do a COMPARATIVE STUDY OF CUSTOMER SATISFACTION BETWEEN AIRTEL & VODAFONE MOBILE USERS IN DELHI. To justify the customer satisfaction level by services from service providers I have undertaken small survey. This survey throws light on many things like what are the various services with which they are satisfied and dissatisfied, what are the expectations of customers from service provider. To facilitate our purpose, I have formed a questionnaire and asked 200 respondents (100 Airtel and 100 Vodafone users) to fill it.

Table of Contents
Introduction about Telecom Industry 4 6

Company Profile Of AIRTEL Company Profile Of VODAFONE

16 57 74 76

Objective of the study Research Methodology Scope Sample size Data Sources Finding and Analysis Conclusion Recommendations Bibliography Questionnaire Customers Database

79 92 94 96 98 101

Introduction

Introduction
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"TELECOMMUNICATIONS IS THE BACKBONE OF OUR FUTURE ECONOMY. INTERNATIONAL COMPETITIVENESS INCREASINGLY DEPENDS ON THE DEVELOPMENT OF A TELECOMMUNICATIONS INFRASTRUCTURE THAT IS COMPATIBLE WITH INTERNATIONAL STANDARDS. " The cellular industry all over the world has been witnessing very high growth rates in subscriber base in recent years. For developing countries in particular, cellular services are becoming a very significant proportion of the overall telecom infrastructure. The mechanics of competition within this market involve complex feedback effects between individual service providers and with their operating environment, and these forces play an important role in governing the growth of this industry. In a country like India which is not yet telephone-saturated and the ongoing changes in related areas are resulting in a rapidly changing profile of users, providers and their respective needs, continuous revision of the telecom policy is imperative. Given the emerging new technologies and the integrating economies there must be fairness among competitors. The tele-density in India is about four per hundred people in respect of the fixed telephones and a little less than one in respect of the mobile telephony. The low densities are not because there is no need for a telephone but because of its high cost that many cannot afford that one. The situation here is nothing but holding true of the law of demand. Isnt it? The cost for the companies can come down if the revenue share imposed on them as a condition of license is abolished or drastically reduced. Today every telephone company is bound to pay a share out of its revenue to the exchequer. These costs are, however, not to be scheduled to take a step further in the development of the telecom. In addition when we go through the telephone bill there is a 5 to 8% service charge. This amount also does not go for the telecom development. If these external cost are removed there can be seen a spurt in demand of not less then 40% as expected. While taking the side of suppliers a lot of new companies are coming into the battlefield resulting in reduction of prices and hence a little less burdensome on to the customer. The cost of interconnection with the incumbent is proving to be contributory to the high cost of services provided by the competitors. 7

The delay in the interconnection disregards the quality of service and high cost will detract from affordability. This is an area in which no consumer body can knowledgeably contribute unless it has the assistant of experts or economists who alone can discover all the relevant fact of all the contesting companies. It indicates the preeminent domain of TRAI (Telecom Regulatory Authority of India). As the driven down of the prices for long distance including international services reduces the amount available for subsidizing the local service, the rental for local services are being increased. Considering that about 90% of the long distance calls are made by less than 20% of customers, 80% of customer are having to pay higher rental this depresses the demand for telephones and affordability. The urban business subscribers will be bearing the bond of the subsidies to be given to the rural private consumers. History of Cellular Telephony in India: The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications. The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Groupe Speciale Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular

licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services. Cellular Industry in India The Government of India recognizes that the provision of a worldclass telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.

Cellular Market Structure in India


As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed to operate in designated geographical operating areas. The service areas include four metro areas and 18 circles categorized as A, B and C. (The categorization is based on the revenue Proceedings of the 36th Hawaii International Conference on System Sciences). The potential with category C circles in the lower end of the scale. For example the metros account for 40% of the subscriber population, with Category-A, B and C accounting for 33%, 23% and 4% respectively. The CMSPs had to pay an entry fee and subsequently annual license fee as a percentage of their revenue to the Department of Telecommunications. The entry and license fees varied according to the service area, highest for metros and lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and their licenses were revoked leading to a monopoly situation in certain areas. Apart from these charges, each CMSP has to share the revenue with the long distance operators for carrying inter-service area calls. In profitable metros and circles, the competition is severe and the market is split between the two operators. In a price-cap regulated market, the operators use appropriate pricing strategy to win customers and win market share. In highly price-elastic markets, such as in India, as the service provider reduces the price, the subscriber base increases 9

considerably, and so is the network traffic. The increased network traffic decreases the performance and the quality of service, inviting customers to switch. Being a new entrant in a metro area, the government operator reduced the airtime charges to such an extent that the subscriber base increased suddenly leading to poor network performance. The operator did not have enough network capacity to handle calls leading to blocking of calls, with frustrated customers switching over immediately to competitors. The operators also have to resort to non-pricing competition strategies to win customers. In India, CMSPs offer a variety of service plans as a means to attract new customers. Different service plans include: pre-paid calling card schemes, discounted airtime rates for evening and night time calls, discounted roaming charges, no or minimum activation fees, and reduced mobile to mobile long distance call rates. The service providers incur additional advertising and infrastructure cost for implementing these plans. Short Message Service (SMS) and Wireless Application Protocol (WAP) service are fast catching up. For example, in India, about 500,000 SMS messages are being carried by a service provider in one metro area alone. When the sector moves over to an oligopoly market, the operators have to provide improved quality of service and value added services in order to survive and gain market share. Larger operators who have experience and infrastructure may be able to provide a higher quality of service and other value-added service at a lower price. They also have access to larger project financing for enlarging their networks and services. For example, a single large operator now has license to operate in 14 service areas in the country with the largest footprint to cover most of the areas of the country. Mergers and acquisitions are commonplace as the operators are consolidating their revenues to survive in the market places. Cellular subscribers and those with a propensity to go mobile in Delhi have never had it so good. They now have four service providers to choose from, each offering an array of both pre- and post-paid schemes. More importantly, average tariffs across plans have, by some reckoning, dropped by at least 50 per cent in the last six months. The entry of Vodafone saw a further drop in tariffs and the operators have come out with new schemes to retain their subscribers and attract fresh ones.

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What does this mean for subscribers and for the cellular industry in Delhi? All the four operators Vodafone Essar Mobile Services Ltd., Bharti Celluar Ltd, MTNL and Idea Cellular services. are convinced that the market will only expand and the subscribers will benefit even more. Their reasoning is that cellular penetration in Delhi, which traditionally occupies the third position in other areas, is less than fifty per cent. Therefore, entry of new players will only increase awareness about the facility, the companies say. Moreover, the state-owned MTNL has also been playing with its cellular service for quite some time. that, with the imminent launch of limited mobility using CDMA (code division multiple access) technology by companies like Tata Tele Services will only add to the subscriber base, probably result in further reduction of tariffs, and an even greater widening of the cellular market, according to officials in four cellular companies now servicing Delhi. However, the companies also sound a note of caution any further drop in tariffs will be harmful to the companies, points out one of the officials taking care of the Sales & Marketing division of the, Vodafone Essar Mobile Services Ltd, average tariffs in Delhi across different plans have fallen by 30 per cent since December with launching of the CDMA services. Besides the fall in tariffs, what has really happened with the entry of CDMA is a heightened awareness in the market. Mobile penetration in Delhi and its suburbs is estimated to be less than twenty-five percent of the population and the cellular operators believe that this number should definitely go up. It is here that Vodafone decided to target the customers with what it believes are unique products and features. Its emphasis has been on value proposition and brand building. Mobility is not only about carrying voice, as per the reports from the marketing department and adds that the unified messaging system for the post-paid customers of Vodafone is one such unique product. Accordingly, Vodafone signed in its subscribers in lakhs from the year onwards it has been launched in Delhi. Industry analysts say that a majority of them will be pre-paid customers, whose loyalty to a particular brand is always in doubt. However, pre-paid for the cellular is nothing but the engine for growth and there is always a possibility that most of them will shift to post-paid once they are convinced of the quality of service provided.

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On the other hand the entry of a new operator lends more visibility to the service and there is also increased trade activity that is the number of dealers will increase and more people will be on the road trying to sell the service and product. There is also greater consumer awareness of what cellular service can deliver and expectations go up in terms of pricing or service standards or network availability. The Churn in the Cellular Industry: As like the other products Cellular industry has not been left untouched from the Churn (switching over). During the survey this fact comes to the fore. According to the cellular operators, there is a normal seven to eight percent churn in the customers, especially in the pre-paid category. Among the post-paid customers, the Churn is much lower about two-three percent. They say that one significant change that has happened in the last few months, more so since lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges are concerned incoming calls has been set free while they are charging reasonably only for the outgoing ones has changed. A tariff re-balancing has definitely taken place. This means that the cellular operators are encouraging their subscribers to not just receive calls, but also make calls increasing the usage of the service. With falling tariffs, cellular operators are convinced that increasing usage is one way to ensure that average revenue per user (ARPU) does not fall very low. The industry figure for ARPU is believed to be about Rs.1,100 while it may vary from operator to operator. The operators are also concentrating on introducing more value added services to the customers. Valueadded services have not really taken off. Only the SMS (short messaging service) has really caught on, but operators like Bharti are bringing in services like music messaging and concierge facility for its subscribers.

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Company Profile AirTel & Vodafone

Company Profile Of Airtel


Important discoveries 1842: Wireless by conduction 14

1843:

Early electromagnetic research, wireless by induction

1865:

Induction and Dr. Loomis

Early radio discoveries

1879:

D.E. Hughes and the first radio-telephone Reception

1880:

The photophone and the first voice radio-telephone call

1880 - 1900: 1910: 1924: 1937:

Radio development begins in earnest The first car-telephone The first car-mounted radio-telephone Early conventional radio-telephone development

The modern era begins 1999: FDI inflow into telecom sector falls by almost 90% to Rs.

2126.7 million 1999: 1999: 2000: Tariff rebalancing exercise gets initiated National Telecom Policy is announced. FDI inflow drops further down to Rs 918 million coming 2000 : Amendment of TRAI Act.

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About Bharti Bharti Tele-Ventures is a private sector telecommunications services provider with an aggregate of over 17.53 million customers as of December 2005, consisting of more than 16.33 million mobile customers. The company is the only operator to provide mobile services in all the 23 circles in India and also provides telephone services and Internet access over DSL in 15 circles. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore and is part of the consortium, which jointly owns and has developed the next generation undersea cable system SEA-ME-WE-4. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging 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 has redefined paradigms in the telecom industry through its innovative managed services agreements in the area of mobile network maintenance, management and deployment with Ericsson, Mavi and Siemens and with IBM for the consolidation, transformation and management of the comprehensive IT infrastructure and applications. Bharti has a market capitalization of over USD14 billion and has SingTel and Vodafone as international strategic partners. 16

Bharti Airtel Limited is one of Indias leading private sector providers of telecommunications services with an aggregate of over 23.29 million customers as of end of May 06, consisting of more than 21.86 million mobile customers. The Company was the first private operator to provide mobile services in all the 23 circles in India. The Company also provides telephone services and Internet access over DSL in 15 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 is a part of the consortium, which jointly owns and has developed the next generation undersea cable system SEA-ME-WE-4. The Company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging 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 17

global telecommunications sector. Bharti Airtel Limited is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 23 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bhartis 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.

Service Areas: Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai (Metro), Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Kerala, Karnataka, Madhya Pradesh, Maharashtra, North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal.

Business Description

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Provides mobile, broadband & telephone (fixed line) and enterprise services (carriers & services to corporates)

Established july 07, 1995 as a Public Limited Company

Proportionate Revenue Rs. 117,255 million (year ended March 31, 2006 Un-audited) Rs. 81,558 million (year ended March 31, 2005-Audited) The company is a part of Bharti Enterprises, and is India's leading provider of telecommunications services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) Mobile services, Broadband & telephone services (B&T) & Enterprise services.

The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 90 cities. The Enterprise services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand.

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Bharti Enterprises

Bharti Teletech

Bharti Televentures

Bharti Global

Bharti Healthcare

Bharti Infotrac

Bharti Foundation

Mobilit y

Infotel OPERATIONS

Mobile Services

20 Broadband and Telephone Services

Long Distance Services

Enterprise Services

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OPERATIONS Contd.. BHARTI TELEVENTURES LIMITED MOBILE SERVICES Delhi Mumbai BROADBAND AND TELEPHONE SERVICES Madhya Pradesh Tamil Nadu LONG DISTANCE SERVICES National Long Distance All India International Distance Maharashtra Gujrat T.N. Kerala Haryana U.P. (West) U.P. (East) M.P. W.B. & A&N Bihar Assam N.E. Jammu Kashmir Orissa A.P Karnataka Punjab Chennai Kolkata H.P. Rajasthan Karnataka Haryana Delhi Himachal Pradesh Long Landing

Station Chennai

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Bharti Group Overview As we spread wings to expand our capabilities and explore new horizons. The fundamental focus remains unchanged : seek out the best technology in the world and put it at the service of our ultimate user : our customer

Sunil Bharti Mittal (Group Chairman and Managing Director) Bharti Enterprises has been at the forefront of technology and have revolutionized telecommunications with its world0class products and services. Established in 1985, Bharti has been a pioneering force in the telecom sector with many first and innovations to its credit, ranging from being the first mobile services in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom service outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. As of 30-06-2004, Bharti had

approximately 8.37 million total customers nearly 7.67 million mobile and 704,000 fixed line customers. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi, Gujrat, Haryana , Himachal Pradesh, Karnataka Kerala, Kolkata Madhya Pradesh circle, Maharashtra circle ,

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Mumbai, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh (West) circle. In addition it also has a fixed line operations in states of Madhya Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide Broadband and long distance networks. Bharti has recently launched national long distance services by offering data transmission services and voice transmissions services for calls originating and terminating on most of Indias mobile networks. The company is also implementing a submarine cable project connecting Chennai-Singapore for providing International Bandwidth. Bharti Enterprises has also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA.

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Bharti Teletech Introduction

Bharti Teletech, the manufacturing arm of Bharti Enterprises, with an installed capacity of 5 million telephone sets per annum, is Indias leading manufacturer of high quality telephones.

Today Bharti Teletech is major PTT supplier in South Asia. It has also ISO 9002 accreditation and also an OEM for Sprint Corporation and Siemens. Its range of products marketed under the Brand name Beetel constitute a 30% market share in India thereby making it the market leader in the domestic market. Bharti Teletech has also found a growing market in Russia, Singapore, Sri Lanka, Romania, Bahrain, Qatar, Jordan, Dubai, Yemen, Oman, Uganda, Nigeria, Tanzania, Seychelles, Zimbabwe, South Africa and USA.

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Global Services Making an entry into the International market, Bharti is the first Indian company to get a license to provide comprehensive telecom services outside India, in the island country of Seychelles and hence develop the expertise to provide Telecom services overseas.

As we spread our wings further, Bharti Global would explore opportunities in other countries around the world.

Bharti Healthcare Healthy alliances to provide healthy solutions

The corporate ethos of providing the best to our customers carries extra relevance when it comes to healthcare products.

One sector where quality implies the saving of lives and the promotion of healthy living. Offering quality support to the

pharmaceutical industry. Bharti healthcare has been engaged in the manufacture of empty hard Gelatine capsules since 1982.

Bhartis form commitment to quality and customer satisfaction is duly acknowledged by the list of prestigious clients including Pfizer, Parke Davis, Wockhardt, Ranbaxy and Glaxo amongst others. Bharti also 26

exports its capsules to overseas markets like USA, Hing Kong, Malaysia, Thailand, Indonesia, Sri Lanka, Iran, Bangladesh, Syria and Cyprus. The US FDA has recently assigned Drug Master file (DMF) number to BHCL as an acknowledgement of its firm commitment to adhere to globally recognized quality standards in the Pharmaceutical industry. BHCL is also an ISO 9002 certified company

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AIRTEL Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 23 states covering all four metros and more than 8 million satisfied customers. Airtel & Visual Identity For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself in a cluttered market. Airtel's visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it. The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are: The Airtel Logo

The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn world mark.

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The Airtel Image style It incorporates two solid, red rectangular forms whose counter form creates an open doorway. The Airtel Typographical style The title case lettering with its capital 'A' was deliberately chosen to reinforce the brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on innovation.. The words 'Express Yourself' are very much part of the brand identity. The Airtel Colour Palette The lettering is grey so that the pure black of Airtel is visually unharmed.

BHARTI TELE-VENTURES Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti TeleVentures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of approximately 11.84 million total customers which constitute, approximately 10.98 million mobile and approximately 857,000 fixed line customers, as of March 31 , 2005

Corporate Structure
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Mobile Division Overview Bharti Tele-Ventures vision for its mobile business is To make mobile communications a way of life and be the customers first choice. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Companys strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 41.03 million subscribers as of March 31, 2005. Despite this rapid growth, the mobile penetration rate in India, at approximately 3.9% as of March 31, 2005, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner.

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Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: Lower tariffs and handset prices over time; Growth in pre-paid customer category;

Greater economic growth & continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited. As of March 31, 2005, 100% of India's total mobile subscriber market resided in the Company's twenty three mobile circles, which collectively 100% of India's land mass.

Accomplishments

The largest private sector integrated telecommunications services group in India in terms of the number of customers. Largest Mobile footprint in India, covering 23 circles of INDIA. Proven track record of managing growth - both organic as well as by way of acquisitions. First and largest private telecommunications services company offering fixed-line services in India. Existing foreign shareholders have acquired direct and indirect equity interests in the Company for a total consideration exceeding US$1 billion. First private telecommunications company to launch long distance services.

First off the block to launch fixed-line services in all the four circles of Delhi, Haryana, Karnataka and Tamil Nadu. 31

Airtel Mobile Strategy

Capture maximum telecommunications revenue potential with minimum geographical coverage to maximise its revenues and margins. Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles. Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles. Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.

Vision
To be globally admired for telecom services that delight customers.

Mission

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We will meet global standards for telecom services that delight customers through: Customer Service Focus Empowered Employees Innovative Services Cost Efficiency

Services Airtel Prepaid Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life. With a host of great features, also simple to use, Airtel Prepaid makes everything that you dreamt and believed, possible. Airtel Postpaid Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way. Airtel Roaming Airtel's Roaming service allows you to use your mobile phone to make or receive calls from almost anywhere in India and abroad. Airtel Roaming gives you two great options:

Airtel National - Enjoy roaming in India across 42 partners networks and over 750 cities.

Airtel International - Roam across international destinations, in nearly 119 countries including USA, Canada, UK etc. with 284 partner networks.

Long Distance Now experience complete freedom like never before with Airtel! Our National Long-Distance facility allows you to make long distance calls 33

in India and Overseas from your cellular phone. This service is applicable to both Postpaid and Prepaid customers.

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VALUE ADDED SERVICES Caller Identification (CLIP) Call Identification gives you the power to know the phone number of the calling party even before you answer the call, thus giving you the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the Handset Phone Book. So that the next time you want to call the same person, you don't need to retype his number, simply use your phone book. Dial-a-service With Airtel's information services you can get upto-the-minute cricket scores, order flowers as well as send couriers or check your daily horoscope. FAX & DATA Airtel brings you Fax and Data Service where you can take your office wherever you go. You can send and receive data/fax documents, access the Internet, email accounts as well as corporate databases whenever you are on the move. GPRS / MOBILE OFFICE Mobile Office provides you with access to e-mail and Internet any time and anywhere, even while on the move. It is an indispensable asset for traveling executives, as it enables you to be in touch when at airports, hotels etc. So whether you're in Mumbai or not, you'll be never be short of Internet access. Now you can access official mail, refer to sites for information and do everything that you would, on the Internet. This new-age product is made possible through Airtel's GPRS (General Packet Radio Services) technology. GPRS Mobile Office service has the following features: a) Access the Internet anytime, anywhere (across all Airtel circles in India) b) No airtime charges c) Cheaper than connecting through land line e) A minimal monthly subscription fee

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VOICE MAIL SERVICES Voice Mail allows you to receive messages even when your handset is switched off or when you are outside coverage area. You can then retrieve these messages at your own convenience. CALL CONFERENCING With Airtel call conferencing, teleconference with 6 people simultaneously. You can also have the liberty of setting up a conference even when the other five individuals are using a landline. Airtel Presents... HELLO TUNES With Hello Tunes when you dial an Airtel Subscribers mobile, you will hear the song that he/she has selected for you!! FEATURES Song of the Day' at the top of the menu to make first time selection easy Various language options : Select from English to Kannada (over 5 different languages) Content represents all major languages Everyone-tune: one song for all callers Special tune: personalized song for specified caller

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Easy Billing Now enjoy the luxury of viewing details of your last 3 billing cycles and the convenience of paying your Airtel bill online! Experience complete freedom with Airtel! Subscription Services With Airtel's Subscription Services, you can subscribe for cool alerts at the click of a button! What's better is that you can receive updates automatically on your Airtel phone without requesting everyday. Daily News Alerts With Airtel News Alerts, be in touch with the latest happenings around the world, all the time. Get 2 news bulletins sent to your Airtel phone, courtesy AajTak, the 24-hour news channel from India Today Group.

Daily Astrology Alerts Your future lies in your Airtel phone. Literally! Get daily forecasts of each sun sign from renowned astrologer Ma Prem Usha. Daily Joke Alerts Crack up with laughter with Airtel's daily joke alert. Get the funniest jokes that you can forward to your friends to brighten up their day too. Daily Business Alerts For the latest buzz on the business scenario, now you never have to look very much further than the palm of your hand. Airtel brings you the daily business news and stock alerts, courtesy Business Today, the leading publication on business news & stories.

Daily Filmi Gossip 37

Want the latest khabar on Lara, Salman, Cameron and Toby? Tune into Airtel's Filmi Gossip, with the latest buzz about your favourite Hollywood and Bollywood stars.

38

THE BRAND The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are: THE AIRTEL LOGO

The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn wordmark.

THE AIRTEL IMAGE STYLE It incorporates two solid, red rectangular forms whose counterform creates an open doorway.

39

THE AIRTEL TYPOGRAPHICAL STYLE The title case lettering with its capital 'A' was deliberately chosen to reinforce the brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on innovation. The words 'Express Yourself' are very much part of the brand identity.

THE AIRTEL COLOUR PALETTE The lettering is grey so that the pure black of Airtel is visually unharmed.

BUSINESS TOOLS

Mobile Office Stay in touch when on the move with Mobile Office Access official as well as personal e-mail on handsets or on laptop/ PDA while on the move. Secure connectivity to e-mail accounts without backend configurations Available across all Airtel circles and important countries. 40

Indispensible asset for traveling executives as it enables user to be in touch anytime and anywhere while roaming.

All that a user needs is his/her GPRS Mobile / Laptop and an Airtel connection.

National Coverage in all 23 Airtel circles It also works in 15 networks internationally across 10 countries

Singtel, Singapore Globe Telecom , Phillipines AIS, Thailand Star Hub, Singapore Smartone, Hongkong Smart Phillipines T-mobile , UK AT&T , USA T-Mobile , USA CSL, HongKong O2, UK Microcell , Canada Vodafone, Italy Era, Poland

41

Multi Media Messaging

Now send & receive multi media messaging on Airtel. Just like SMS Service send and receive MMS on GPRS enabled phone from anyone anywhere in the world. Customer can also receive Multi Media Messages even if Customer do not have a GPRS/MMS enabled phone; Subscriber can simply log on to airtelworld.com and check the mms. Airtel Live Customer can dial Fun Portal 646 and download ring-

tones/logos/games/wallpapers and much more just through a click of a button charged only for the downloaded content. AIRTEL MUSIC SHOP In September 2005, Bharti Airtel Ltd has launched its 1lakh Music Shops. The retailers are the companies Music Shops. They were provided with a special sim called LAPU. By the use of the sim the retailer can give the recharge to the customer by transferring the amount of recharge on the customer number. Earlier the retailer can give the recharge to the customer by the use of coupon but now it can be given just by pressing some keys on the mobile. In the LAPU, the Airtel Services contain all the information the retailer has to just put the customer number, the amount to transfer and also the MPIN (Mobile PIN). 42

MPIN-It is kind of password which every retailer gets when he/she gets the LAPU. It is used for the security purpose that nobody other then the retailer can be able to transfer the recharge. They can change their MPIN as per there convenience. In LAPU there is a special feature of gifting the Recharge. Just like a gift given on any occasion to anyone a slip containing the details about the person by whom the gift has been given is there. Just like that the Recharge can be gifted and the Recipient will get a slip detail of the person who has sent him the gift. Earlier the Prepaid customer who was in roaming was not able to take recharge so easily .He has to take special recharges which are not so easily available. Now the customer has to just rush to the near by

retailer where ever in India he/ she is and according the plan which is prevailing in his/her zone can get the recharge. Before the launch of Airtel Music shops the retailers were using the ERC-1 Sim or LAPU 1.But as the music shops were launched. All the LAPU 1 sim has been replaced by LAPU 2 sim with a Special feature of Easy VAS (Value Added Services) added to it. As the company was the first one to step into the world of Music. It has provided the full opportunity to its retailers To Serve More and To Earn More.

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The company projected all its retailer outlets as the music shops that interact with the customers directly at grass root level. Now the retailer sells the music to customer as the hello tune and the ring tone. Why is Airtel Introducing this Product? 1. Customers demanding more and more new services. 2. Competition eager to provide every possible service to Customers. 3. AIRTEL always ready to give customers what they Want. Their aim is to Convert expression to reality.

44

Airtel world / Brand & Advertising

Airtel & Visual Identity

For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself in a cluttered market. Airtels visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it.

The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are:

45

PROCESSES INVOLVED IN MOBILE CONVERSATION

SENDER

BTS

BSC

HLR

MSC

VLR

AVC BSC

CDR

BTS

RECIVER BTS - Base transceiver station

46

BSC Base station controller

MSC- Master station controller

HLR- Home location register

VLR- Visitor location register

AVC- Authentication code

CDR- Call Data Analysis

47

AIRTEL 2 AIRTEL LOCAL

CALLER (AIRTEL)

BTS

BSC (AIRTEL)

MSC(AIRTEL)

HLR

BSC

48

BTS

RECIVER (AIRTEL)

49

AIRTEL 2 OTHERS

CALLER (AIRTEL)

BTS

BSC (AIRTEL)

MSC(AIRTEL)

HLR

50

MSC (Others)

BTS

RECIVER (Others)

51

ROAMING

CALLER (AIRTEL)

BTS

BSC (AIRTEL)

MSC (AIRTEL)

HLR

VLR 52

MSC (AIRTEL DELHI)

MSC (REGIONAL)

BSC

BTS

RECIVER (Others)

53

Sunil Bharti Mittal

Chairman & Managing Director since October 2001 Board director since: July 1995 Age: 49 years

Sunil Bharti Mittal is the Chairman and Managing Director of Bharti Airtel Limited (Bharti), Indias largest private integrated telecom player. The company has nearly 21 million customers on its wellrespected brand AIRTEL. Sunil was one of the first entrepreneurs to identify the mobile telecom business as a major growth area and launched services in the city of Delhi and the National Capital Region in the year 1995. Under his inspiring leadership the company grew organically and inorganically, covering the entire country by providing integrated telecom services. In his personal capacity, Sunil has received several awards such as:

Best Asian Telecom CEO, Telecom Asia Awards 2005 Best CEO, India, Institutional Investor, 2005 Business Leader Of The Year, Economic Times, 2005 54

Ernst & Young Entrepreneur Of The Year 2004, Ernst & Young

Sunil has always been a pioneer. A first generation entrepreneur, he started his first business in 1976 with a capital investment of Rs 20,000. He initially founded a number of trading concerns, and established the first company to manufacture push button telephones in India. This company is now one of the largest manufacturers of telephones in the world. Apart from his role at Bharti, Sunil holds the position of the Honorary Consul General of the Republic of Seychelles in New Delhi, India. Some of his other roles include being a member of the Prime Ministers Council on Trade and Industry; Co-Chairman of the IndoBritish Partnership and a Board Member of the Global GSM Association. Sunil is an alumnus of Punjab University and has completed the Owner/President Management Program from Harvard Business School.

55

Company Profile Of Vodafone


Hutchison established its presence in India in 1994, through a joint venture with Max India Limited. In 1995, Hutchison Max Telecom became the first operator in India to launch its cellular service. Today, Hutchison is one of the largest providers of cellular services in India with presence in all the major regions - Orange in Mumbai and Hutch in Gujarat, Kolkata, Andhra Pradesh, Karnataka, Delhi and Chennai. It is also the country's largest roaming operator, with a more extensive network in India and around the world than any other operator. They are known for their innovative approach and world class technology. Their goal is to provide the subscriber the superior products and services, anytime and anywhere. Hutchinson Telecom is accredited for being among the first cellular operators in the world, having started its services way back in 1985. It is part of the Hong Kong based multinational conglomerate Hutchison Whampoa Limited, a Fortune 500 company, and one of the largest companies listed on the Hong Kong Stock Exchange. Its operations span 36 countries across the Asia Pacific region, Europe and the Americas.Hutchison affiliates jointly account for the largest number of cellular subscribers in India numbering over 2 million. 56

Hutch is brought to us by Hutchison Telecom, one of the worlds leading cellular service providers. But in Delhi, it is the follower with 2.18 lakh subscribers to Air Tels 3.28 lakh subscribers

(Businessworld, May 7, 2001) .Today the total number of mobile subscribers to Hutch are 1.96 million. (Business Today, 5th Jan 2003) Today, in India, Hutch becomes Vodafone. Now, the pink color logo of Hutch will be replaced by Vodafone Essars corporate red colored one. In 2005-06, the Orange brand in Mumbai was phased out to introduce Hutch. The company also changed the colors of its logo from orange to pink last year. After acquiring 67 per cent of stake (around Rs. 250 crores) in Hutchison Essar from Hong Kong-based Hutchison Whampoa,

Vodafone Essar is expecting to touch over 35 million customers across 400,000 shops and thousands of Hutchs own employees along with employees of its business associates. Asim Ghosh, MD, Vodafone Essar, said Weve had a good innings as Hutch in India and today marks a new beginning for us, not as a departure from the fundamentals that created Hutch, but an acceleration into the future with Vodafones global expertise. Vodafone CEO and Vice-Chairman Arun Sarin of the joint venture Vodafone Essar will be landing in India for the meeting 57

that would discuss branding exercise, expansion plans, spectrum requirements for its expanding subscriber base and future plans. Vodafone offers a host of premier value added services (VAS) including national and international roaming in over 70 countries in over 160 networks, Wireless Application Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket updates, M-banking, general information, tarot line, etc. The company launched WAP in Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in December 2000. The company has been a prime mover in introducing these value-added services in the Delhi circle.

The values are stated simply. To be fair and transparent in what they do and how they do it. To provide the quality services with more customer friendly practices. To make ones communications

experience simple, pleasurable and fun. Where he doesn't simply get technology - but technology that is relevant. Where solutions are not just promised in the future - but delivered in the present.

Vodafone Logo

58

SERVICES Staying connected becomes a lot easier with Vodafone. We have a wide range of services you can access right from your Vodafone phone. From cell banking to flight updates to call management services, get all that you want, instantly.

Dial 600 to activate To activate these value added services on your Vodafone phone, simply dial 600 and access our Interactive Voice Response system.

SMS
Message your family and friends through Vodafone SMS Services. It's convenient and affordable. Communicate with cell phone users in over 100 countries and anywhere in India - by sending and receiving text messages.

Pay just Rs. 1.50 per message for sending SMS anywhere across the country.

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SMS Chat
Now, you can chat on your Vodafone phone with as many people as you want. Its fun and as simple as sending an SMS. Your identity will remain anonymous as your phone number is never displayed during the chat. You can have your own profile and chat name.

You can also create your own chat rooms or chat in the different rooms that already exist including: Teens, 20s, 30s, Office, Bollywood, Delhi. All you have to do is type in your messages and send them to 2428. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Vodafone Online
Get all the useful information you need directly on your Vodafone phone with Vodafone Online. Including cricket, finance,

entertainment, weather, astrology and more.

Simply go to the Vodafone Online menu on your Vodafone phone. If you do not see the Vodafone Online menu on your phone, send HELP 60

to 123. We will send you the list of keywords.

Scroll to the topic on which you need information.

Select the information and key input as requested on the screen. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

MTNL Directoy
With this facility you can get to know the address and telephone no. of MTNL users.you will be charged Rs.2 per outgoing message.

STD / ISD Codes


You don't need to look up your diary or a phone directory to find out STD and ISD codes. You can find it directly through your Vodafone phone.

Ringtones & Logos


Now you can change the ringtone on your Vodafone phone according to your moods. You can download logos as well. With the Vodafone 61

and Yahoo! tieup you have hundreds of tunes and logos to choose from.

For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS sent). For every logo/picture message downloaded, you will charged Rs. 3.00 (including the cost of SMS sent).

Flash & Blink

Vodafone now offers you two exciting ways to send messages. You can make your message flash directly on your recipients screen instead of the inbox. You can also highlight the important parts of your message through blinks. So your text messages become not only more visible, but more effective too. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Dial-in Services
Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to check cricket scores, horoscope, up-to-the minute 62

news and other relevant information on services that touch your everyday life.

All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse). Here's a shortlist of services you can access

Numbe Service NDTV Online Info Line Dial-n-Deliver Cricket Online Tarot Line Cell Rashi Dial-a-Pizza Dial-a-Cab Voice Response Service r 123 301 306 123 314 315 303 335 123

There are occasions when you may not want to take a call, or your Vodafone phone maybe busy or simply unreachable. By paying a nominal monthly access fee, you can now retrieve your messages at your convenience. Even if you are roaming, you can retrieve your messages from your voice mailbox through a fixed line, anywhere on earth.

Your Vodafone voicemail can Hold up over 17 messages at a time. 63

Receive a message that lasts up to 90 seconds. Store a message for as long as you want. You can also record your voice signature and welcome message.

Calling Line Identification


You can check your caller's telephone name and number on your phone screen whenever you receive a call. This gives you the flexibility to either accept or reject an incoming call. This service is also helpful in identifying your missed calls.

You can access this service by just paying Rs. 49 per month, if you are a postpaid customer. This service is absolutely free if you are a Vodafone Prepaid customer.

Itemized Billing
As a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end of each month. This is a detailed billing statement which helps you keep track of all your calls. Your itemized bill includes: Origin of the call Destination of the call Duration of the call Toll charges 64

Airtime and total charge

Get your itemized bill. Via post: Pay a monthly rental of 49 only. Via e-mail: Pay just Rs. 19 per itemized bill.

Fax & Data Services

This service enables you to constantly keep in touch with your office, colleagues and information sources. You can send or receive faxes and transmit data using your Vodafone phone anytime, anywhere. Whether you are operating from home, hotels or airport lobbies. At speeds of up to 9600 bps within the network or while roaming. You can even access the Internet.

All you need is a handset compatible data card (PC Card) or a GSM Software, and a data chord cable with a PC to set up a mobile office. You can also opt for either Vodafone Fax or Vodafone Data services independently.

Your Vodafone fax number can help you differentiate between incoming voice calls and fax transmissions. You can also send and 65

receive faxes anywhere on earth with your Vodafone phone. By opting for the Vodafone Data Services you can access e-mail, databases and the Internet. All on your single incoming data number. Charges to activate the Vodafone Fax and Data service, you just need to pay a

one-time activation fee of Rs. 500. To access the Fax service, the fee is Rs. 250. The usage charges are nominal at Re 1 per minute.

Call Management Services

There may be occasions when you need to conference with up to six people at a time or talk to just two. Or you are speaking to someone and want to forward an incoming call to another phone. With your Vodafone phone, you can do this and more.Vodafone helps you manage your calls effortlessly so that you stay in control of your conversations, always.

Voice Response

Get your Vodafone phone to respond directly to your commands. Custom designed to recognize Indian voices and accents, the Voice Response service makes your life more convenient. You can get the 66

latest updates on news, stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1 minute pulse).

Voice Messaging

Voice Messaging has become even more affordable. You can now send voice messages to cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min* (as against Rs.4.95 per min earlier).

Voice messages within India across select networks will cost you Rs. .95 per min only. Also, recipients of the cellular Voice Messaging service have the option of replying back to the messages, which get returned back as return Voice Mail messages, facilitating two-way (though not simultaneous) voice communication.

Yahoo! Messenger For SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive Vodafone-Yahoo! tie-up, you can easily get connected through your Vodafone phone.This unique messenger comes with a lot of exciting features. You can connect with all Yahoo! Messenger users, send, receive and reply to instant messages, view and manage your friend list and also manage 67

authorization requests. All this and more just by using SMS. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Cell Banking

Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account and transact directly on your Vodafone phone by sending text messages. The first of its kind in India, this service enables you to conduct your banking without having to visit the bank or making a call. You can do Cell Banking from over 90 countries worldwide. You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Roaming
Now you can always stay connected, no matter where you are. With the Vodafone Roaming facility, you can use your Vodafone phone in over 100 countries worldwide and over 1000 cities, towns and highways across India. Vodafone Roaming makes life easy and convenient for you.

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One number across the globe Your Vodafone phone number and PIN number remains the same whether you are in Delhi, Chandigarh, London, Paris or anywhere else in the world.

National and International Roaming on Vodafone Prepaid Roaming on Vodafone Prepaid gives you the most extensive coverage in over 1000 cities, towns and highways across India, and in over 100 countries around the world. Enjoy Roaming on your Vodafone Prepaid card and stay in touch wherever you go.

Yahoo! Mail For SMS


You can now directly access your email account on Yahoo! Mail on your Vodafone phone. Whats more, you do not need a WAP enabled handset for this service as it is based on SMS. So gain freedom from your PC and access your Yahoo! mails anytime, anywhere on your Vodafone phone.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

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WAP
With WAP, you can have the Internet directly in your pocket. So if you are looking for quick and easy delivery of information and services, your Vodafone phone can show it all. Use it to check out news, finance, shopping, entertainment, travel, entertainment and city service information etc. To access this service all you need is a WAP enabled handset and WAP services activated on your Vodafone phone. This service comes to you at a nominal charge of Re. 1 per minute (1 min pulse).

Group Messaging
Party invitations, movie outings, festive greetings... whatever be the occasion, you can send your message to all your friends at one go!

With Group Messaging from Vodafone, you can thus save yourself the bother of painstakingly sending your message to one person at a time whether you are on Vodafone Prepaid or Postpaid.

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Vodafone4help
Vodafone4help now lets you take advantage of a lot more services than before. You can connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are stranded in the middle of the road, or if you you need immediate medical attention or if you are looking for a police station close by, Vodafone4help gives you instant access to your nearest source of help, anywhere in Delhi or the NCR. All the help services are charged@Rs.6/min. while for police and fire help only local airtime charge is applicable.

71

Objective Of The Study

72

OBJECTIVE OF THE STUDY


The research is a cross sectional analysis between two cellular service providers of delhi namely AIRTEL and VODAFONE. This research is done to find the following objectives: 1) What is the consumer satisfaction level by the services offered from the service provider. 2) What are the expectations of the consumers from the service providers.

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Research Methodology

Research Methodology
74

Scope
The given project is to analyze the overall satisfaction of subscribers with their mobile service provider. The scope for the research is not very big. The area or say the premises of the researcher was Delhi region.

Research Design
A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The survey research was used in this project, because consumers feedback was necessary for obtaining the data.

Data Sources
Primary data was collected by the questionnaire based market survey. In this survey 100 AIRTEL and 100 VODAFONE mobile users were surveyed. Secondary data was obtained from journals, magazines, newspapers, books and of course the Internet.

Research Instrument
For doing the survey research, structured questionnaire with both open-ended and closed-ended questions was used.

Mode of Survey
The mode of survey was personal interview with the respondents during the filling up of the questionnaires.

Sample Size
A sample size of 200 respondents is used for the study.100 AIRTEL and 100 VODAFONE customers were contacted and interviewed.

Sample Unit
This study was basically an opinion survey of the residents of Delhi who are cell-phone users regarding their views on the cellular service providers.

Place of Study
Delhi region. 75

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Findings & Analysis

Findings & Analysis


77

Spending Per Month By Subscribers

Spending per Month


70% 60% 50% 40% 30% 20% 10% 0% Upto Rs.500 Rs.501-1000 Rs.1001-2000 Rs.2001-3000 Rs3000 and above Upto Rs.500 Rs.501-1000 6% Airtel 68% 23% 6% 2% 1% Rs.1001-2000 Rs.2001-3000 8% 2% 1% 2% 1% Vodafone 58% 31% 8% 2% 1% Rs3000 and above 23% 31% 68% 58%

This shows that majority of subscribers of Airtel and Vodafone subscribers spends between Rs.500-1000 every month.

Time taken for activating sim

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90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone

83% 76%

20% 11% 6% 3% 0% 1%

Same Day 83% 76%

Next Day 11% 20% Airtel

2-3 Days 6% 3% Vodafone

More than 3 days 0% 1%

This shows that 83% of Airtel and 76% of Vodafone subscribers got their sim activated the same day of purchase while others had to wait for next day and some for 3 days also. This is really a trouble for subscribers waiting for activation.

Satisfaction from Current Tariff

79

Satisfaction from current Tarrif


70% 61% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone 15% 11% 14% 15% 18% 53%

13%

Very Satisfied 61% 53%

Satisfied 13% 15%

Satisfied to an Extent 11% 14%

Dissatisfied 15% 18%

This show that only 61% of Airtel users and 53% of Vodafone users are very satisfied with tariff charges.15% of Airtel and 18% of Vodafone users are dissatisfied with tariff which could lead them to shift to other cell operator providing lower tariff.

Satisfaction from network quality 80

Satisfaction from Network Quality


80% 70% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone Very Satisfied 73% 67% Satisfied 15% 18% 15% 18% 10% 8% 2% Satisfied to an Extent 10% 8% Dissatisfied 2% 7% 7% 73% 67%

73% of Air Tel and 67% of Vodafone users are very satisfied with network. Only 2% of Airtel users are dissatisfied which show that their network is best. 7% of Vodafone users reported dissatisfaction because of poor signals or no signals in basement.

Satisfaction from SMS Service

81

89% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone Very Satisfied 89% 81% 8% 10% 3% Satisfied 8% 10% 81%

6% 0%

3%

Satisfied to an Extent Dissatisfied 3% 6% 0% 3%

89% of Airtel and 81% of Vodafone users shown great satisfaction from SMS service.3% of Vodafone users shown dissatisfaction because of late delivery of messages and high charge.

Satisfaction from Roaming facility

82

70% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone

62% 58%

18%

20% 10% 9% 10% 13%

Very Satisfied 62% 58%

Satisfied Satisfied to an Extent 18% 20% 10% 9%

Dissatisfied 10% 13%

62% of Airtel and 58% of Vodafone users are very satisfied with roaming facility. 10% of Airtel and 13% Vodafone users are dissatisfied with roaming because of high charges and poor signal strength while on roaming.

Satisfaction from Value added Services(VAS)

83

60% 50% 40% 30% 20% 10% 0% Airtel


Vodafone

53% 48%

24% 21% 14% 11% 15% 14%

Very Satisfied

53% 48%

Satisfied Satisfied to an Extent Dissatisfied 21% 11% 15% 24% 14% 14%

Only 53% of Airtel and 48% of Vodafone users are very satisfied from VAS. 15% of Air Tel and 14% Vodafone users are dissatisfied from VAS because they are not using these due to high charges for these facilities.

Satisfaction from Voice mail service

84

60% 52% 50% 48%

40%

30% 23% 20%

25% 21% 18%

10%

8%

5%

0% Airtel Vodafone

Very Satisfied 48% 52%

Satisfied 23% 25%

Satisfied to an Extent 21% 18%

Dissatisfied 8% 5%

48% of Airtel and 52% of Vodafone users are very satisfied with this service. 8% of Airtel and 5% of Vodafone users are dissatisfied from service because of high charge.

Satisfaction from Billing

85

35% 30% 30% 25% 20% 15% 10% 5% 0% Airtel Vodafone 23% 24%

31% 28% 25% 21% 18%

Very Satisfied 23% 30%

Satisfied 24% 31%

Satisfied to an Extent 25% 21%

Dissatisfied 28% 18%

only 23% of Airtel and 30% of Vodafone users are very satisfied with billing. 28 % of Airtel and 18% Vodafone users are dissatisfied with billing because of inflated bills and delay in resolving. In this case Vodafone is better in comparison to Airtel with less billing problems.

Satisfaction from Customer care services

86

80% 70% 60% 50% 42% 40% 30% 21% 20% 10% 0% Airtel
Vodafone

68%

19%

21%

18%

6% Very Satisfied 68% 42%

5% Dissatisfied 5% 18%

Satisfied 21% 19%

Satisfied to an Extent 6% 21%

68% of Airtel and 42% of Vodafone users are very satisfied with customer care. In case of Vodafone 18% of users are dissatisfied with customer care while in Airtel it is only 5% which shows that Airtel is winner in terms of providing Customer Care services. Reason for this is waiting time to talk to customer care and resolving time taken is very high in Vodafone.

Users planning to shift to other cell operators

87

Planning to Shift to other cell operator


84% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Airtel 16% 84% Vodafone 23% 77% 16% 23% 77%

16% of Airtel users are planning to shift to other cell operator because they find call charges expensive. While 23% of Vodafone users are planning to shift because of poor customer care and high call charges. This shows that users have much more loyalty towards Airtel in comparison to Vodafone.

Users recommending their cell operator to others

88

Recommend their cell operators to others

84% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Airtel 84% 16%
Vodafone

77%

23% 16%

77% 23%

84% of Airtel and 77% of Vodafone users are ready to recommend others. This shows high satisfaction level in Airtel users as compared to Vodafone.

Conclusion
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With the steep fall in the cost of providing cellular services, and increasing deregulation and competition, developing countries are witnessing rapid growth in cellular subscriber base. Indian cellular industry has been witnessing a Compounded Annual Growth Rate of about 105.2%. It is a $5 billion industry today, and the cellular subscriber base in the country has increased to 6.4 million from a mere 28,550 in 1996. According to reports, Indian mobile subscriber base is expected to grow to 19.48 million in the current year, i.e.; 2004. However, the penetration rate of cellular services is very poor in developing countries. In India, the cellular density is 0.56 per 100 population compared to 77.84 in Finland. Economic conditions, market structure, policies regarding tariffs and interconnect agreements, and customer characteristics are some of the significant forces affecting the growth of cellular services. Since it takes about 3-4 years for cellular operators to attain financial payback on their projects, estimates of market size can be useful for network and investment planning. Qualitative narratives and descriptive statistics of the cellular sector for many countries are available from a variety of industry sources. However, rigorous empirically based studies of cellular market growth are much more limited in number. Moreover, these studies do not provide much insight into the mechanics of growth in cellular markets. Such insights can inform policymakers about the process by which growth occurs and help develop policies that can improve cellular penetration in developing countries. They are also useful to service providers in planning their network rollouts and services in the face of market competition. With the introduction of new providers, the incumbents face erosion of their subscriber base. They can take preemptive measures to improve the quality of their services offerings, reduce prices and increase the breadth of their service offerings. The new operators have to battle against the advantages of the incumbents such as existing subscriber base, economies of network operations, network infrastructure and their financial strength. There are other idiosyncrasies that may also need to be considered. In case of India for instance, some of the entities that have received licenses to operate as the fourth operator in metro areas, have prior cellular network provisioning experience in selected parts of the country. They can reduce the roaming charges when the subscriber roams in the operator's other areas. Further, the government owned third operator, was erstwhile monopoly operator in basic and domestic long distance services. This operator has extensive long 90

distance network and a sound financial base that will enable them to cross-subsidize the cellular service and reduce prices.

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Recommendations
Sim card activation should not take more than 24 hrs. More talktime should be given on recharge coupon. Rent should be brought down to minimum Rs.100 to attract students who forms majority of mobile phone users. Calling line(CLIP) charges should be abolished as this is the necessity of mobile users to know the number of calling party. Satisfaction levels of Vodafone customers are comparatively lower than Airtel customers. They should introduce rewardbased schemes for its customers. Network signal should reach underground basement with voice clarity. Vodafone need to focus on it. Local SMS charges should brought down to less than 50 paisa as compared to Rs.1.50. SMS is the need of students and easy way to stay in touch and have fun. Roaming charges should be minimized. Airtel must provide GPRS facility on prepaid as Vodafone does. This service is now in very much demand as accessing e-mail, internet becomes easier by GPRS. Vodafone is a winner in this. MMS is now in demand having sound and video messages. This should be provided at low cost.

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Billing complaints should be resolved within 24 hrs. Airtel should look into this matter as they have more billing related issues. Customer care should not take so long to provide feedback to customers. Call pulse rate should be reduced to 15 seconds as most call end up less than this time. This will save money of customers. Customers should be given rewards or discounts for showing loyalty to service. Rewards to customers recommending others. Free unlimited call to 1 or 2 nos. on same network without any charges.(A tribute to LOVEBIRDS) Free calling within the group at low monthly rental. Internet access on PC/LAPTOP through mobile be made cheaper.

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ANNEXURE

Bibliography
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Boyd, Westfall, Stasch: Marketing Research. ( Seventh Edition) Research Methodology: C.R.Kothari. (Second Edition) Philip Kotler: Marketing Management.( Eleventh Edition) Voicendata magazine. ( Edition: December 2004) Company brochure of Airtel and Vodafone. www.airtelworld.com www.Vodafoneworld.com www.google.com www.voicendata.com

Questionnaire
1. NAME: _________________________ 95

2.

AGE: ( ) 26-35 Yrs. ( ) 36-45 Yrs. ( ) 46 Yrs. &

( ) upto 25 Yrs. above 3. SEX: ( ) Male 4.

( ) Female

EDUCATION LEVEL: ( ) High School ( ) Undergraduate ( ) Graduate & above ( ) Others___________

5.

OCCUPATION: ( ) Student ( ) Service Man Businessman ( ) Other ____________ ( ) Professional ()

6.

Which cell phone service you are using: ( ) AIR TEL ( ) VODAFONE

7.

Which category of service you are using: ( ) Prepaid ( ) Postpaid

8.

What is your spending per month: ( ) Rs.501-1000 ( ) Rs.1001-2000 ()

( ) Upto 500 Above Rs.2000

9. How much time taken by your service provider to activate sim : ( ) Same day More than 3 days ( ) Next day ( ) 2-3 days ()

10. To what extent you are satisfied with Current Tariff of your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 96

11. To what extent you are satisfied with Network Quality of your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 12. To what extent you are satisfied with SMS Facility of your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 13. To what extent you are satisfied with Roaming Facility of your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 14. To what extent you are satisfied with Voice Mail Service of your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 15. To what extent you are satisfied with Mobile Banking of your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 16. To what extent you are satisfied with Value Added Services like GPRS, MMS, E-MAIL, Chatting, Fax etc. of your cell operator:

( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied

17. To what extent you are satisfied with Billing by your cell operator: ( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 18. To what extent you are satisfied with Customer Care Service of cell operator: 97

( ) Very Satisfied ( ) Satisfied ( ) Satisfied to an extent( ) Dissatisfied 19. Are you planning to Shift to other cell operator in near future: ( ) Yes ( ) No

20. Are you going to Recommend your cell operator to others: ( ) Yes 21. ( ) No

Any Suggestions to service provider: _______________________________________________________________ _______________________________________________________________

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