A COMPARATIVE STUDY OF PUBLIC SECTOR AND PRIVATE SECTOR SERVICES IN TELECOM

SUBMITTED BY
Rajdeep Kaur Gill Roll No. 6515 MBA 3rd Semester (Global)

SCOPE OF THE STUDY

According to the study the telecom sector is emerging sector in Indian industry. Landline and mobile services are comprised under the telecom sector. An efficient and rapid of the information is the catalyst for economic and social development.

Vision 2020 conceives of India as evolving into an information society knowledge economy. A whole range of information based industries and application has come up. Creating new sources of employment and earning. Social attention must be focused on strengthening the regulatory framework and further improving teledensity, broadband connectivity and providing telecom companies with the right environment for infrastructure development.

OBJECTIVE OF STUDY

To know about the pre-purchase behavior of consumer under the following points:

Income effect on their consumption. Source of information. Occupational effect. Purpose of purchasing landline phone.

To know about the factor which influence the customer at a time purchasing a landline phone.

To study the comparative market of various company.

To know the satisfaction level of consumer.

STATEMENT OF PROBLEM

Telecom liberalization began early in the 1990s when the sector was thrown open to the private sector. Like most new things initially, there were gaps which have since then been slowly corrected. India can today boast of an infrastructure that is comparable to the best in the world.

COMPANY PROFILE

Bharat Sanchar Nigam Ltd. was incorporated on 15th September 2000. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1st October2000 on going concern basis. It is one of the largest & leading public sector units providing comprehensive range of telecom services in India.

Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages . BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector.

BSNL is numero uno of India in all services in its license area. The company offers wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its rivals, with 24.58 million wire line phone subscribers i.e. 71.93% share of the wire line subscriber base.

VISION:

Be the leading telecom service provider in India with global presence. Create a customer focused organization with excellence in customer care, sales and marketing. Leverage technology to provide affordable and innovative telecom. Services/products across customer segments.

MISSION:

Be the leading telecom service provider in India with global presence. Generating value for all stakeholders - employees, shareholders, vendors & business associates Maximizing return on existing assets with sustained focus on profitability Becoming the most trusted, preferred and admired telecom brand To explore International markets for Global presence

OBJECTIVES:

To be the Leading Telecom Services provider by achieving higher rate of growth so as to become a profitable enterprise. To provide quality and reliable fixed telecom service to our customer and thereby increase customers confidence. To provide customer friendly mobile telephone service of high quality and play a leading role as GSM operator in its area of operation.

Organization
Designation
CMD Director (Finance)

Name

Shri R. Upadhyay Shri KCGK Pillai 23714141

Phone (office) K. 23372424

Fax No.
23372444 23314141

E-mail
cmdbsnl[at]bsnl.co.in dirfin[at]bsnl.co.in

Director(Consumer Fixed Access) Director(Consumer Mobility) Director(Enterprise) Company Secretary & Sr.GM(Legal)

Shri N. K. Gupta Shri Agarwal Shri A. N. Rai Shri H. C. Pant

23037142, 23738999 R.K. 23734073 23734064 23353395

23734242 23734075 23734166 23353389

diro[at]bsnl.co.in dirplg[at]bsnl.co.in dir.enterprise[at]bsnl.co.in hcpant[at]bsnl.co.in

GROWTH PLAN

Tender for 93 Million GSM Mobile Lines to meet the requirement for next three to five years. Wi-Max:

1000 Base Station rural Wimax project for 12000 CSCs covering all Telecom Circles except A&N, J&K, Kerala & Kolkata Telecm District. 6863 Base Station rural Phase-II Wimax project for 56000 CSCs covering all Telecom circles except Kerala & A&N.

CDR based Customer Care & Convergent Billing system. Enterprise Resource Planning (ERP) system country wide. Replacement of life expired exchanges by Class 5 NGN Introduction of Fixed Mobile Convergence to add value to Fixed Network.

COMPARISON BETWEEN PUBLIC AND PRIVATE SECTOR IN TELECOM SERVICES

TATA INDICOM PRIVATE LANDLINE PROVIDER

Tata Teleservices is part of the INR 64,350 Crore (US$14.3 billion) Tata Group, that has over 90 companies, over 210,000 employees and more than 2.16 million shareholders. With an investment of over INR 9,000 Crore (US$ 2 billion) in Telecom, the Group has a formidable presence across the telecom value chain. The Tata Group plans an additional investment of around INR 9000/Crore (US$ 2 billion) in this sector in the next two years.

TATA INDICOM PHONE

Tata Indicom offers you almost instant phone connections. Get yourself the Tata Indicom Landline Services based on the state of the art Optical Fiber Cable-based backbone.

Superior Voice Clarity Instant and hassle-free connection Accurate billing Secure and tamper-proof lines Responsive and friendly services 24*7 friendly customer service

Phone Connection

For Your home For Small Medium Business For Enterprises

PRODUCTS AND SERVICES

Tata Indicom offers a complete range of affordable telecom solutions for your home and business needs. We have a wide-range of product and service offerings to meet every need of yours:
Voice Data Internet Tata Indicom Conference Services

RELIANCE PRIVATE PROVIDER

INFOCOM LANDLINE

Reliance Infocomm is the outcome of the late visionary Dhirubhai Ambani's (1932-2002) dream to herald a digital revolution in India by bringing affordable means of information and communication to the doorsteps of India's vast population.

RELIANCE INDIA PHONE

Fixed

Line Phone (FLP) Fixed Wireless Phone (FWP) ISDN BRI Smart Office Analog Trunk Solutions Community Phone E1 DID

RESEARCH METHODOLOGY
RESEARECH DESIGN

A research design is a arrangement of conditions for collection at analysis of data in manner that combines relevance to the research purpose with economy in processor.

NEED OF RESEARCH DESIGN:

Over all design Sampling design random Statically Design Observation design
Operational design

: -Rigid design. :-Probability sampling design sampling. :- Pre plan design for analysis. :- Structure or well out instruments for collection of data. :- Advance design about operational processor.

SAMPLING DESIGN A Sample design is a definite plan for obtaining a sample from a given population . it refers to the technique or the procedure adopted SAMPLING UNIT A sampling framework i.e. developed for the target population that will be sampled i.e. who is to be surveyed Consumer (Chandigarh)

SAMPLE SIZE It is the substantial portions of the target population that are sampled achieve reliable results. Consumer - 50

DATA ANALYSIS

AVAILABILITY OF LAND LINE PHONE

Landline Phone Yes No Total No. of Respondent 41 09 50 Percentage 82 18 100

82% Respondent have the landline Phone.

18% Respondent have not landline Phone.

LANDLINE PROVIDER
Landline Connection
BSNL Reliance Tata Total

No. of Respondent
35 11 04 50

Percentage
42 30 28 100

70% Respondent BSNL landline Phone.

have

22% Respondent have Reliance landline Phone. 8% Respondent have Tata landline Phone.

AWARENESS OF PRIVATE LANDLINE PROVIDER

Private Landline Phone Aware Unaware Undeciding Total No. of Respondent 21 15 14 50 Percentage 42 30 28 100

42% Respondents are aware about private landline Phone provider. 30% Respondents are unaware about private landline Phone provider. 28% Respondents are undeceiving about private landline Phone provider.

CONSIDER THE LANDLINE IS BETTER THAN MOBILE

Better Landline Phone Economic Service has new improved Easy in reach No. fear of theft/loss Evan layman operate it Total No. of Respondent 27 03 07 08 05 50 Percentage 54 06 16 16 10 100

54% Respondent consider landline better than mobile for economic purpose. 6% Respondent consider landline better than mobile because service has now improved. 14% Respondent consider landline better than mobile because it is easy in reach. 16% Respondent consider landline better than mobile there is no fear of theft/loss. 10% Respondent consider landline better than mobile because even layman can operate it.

BY WHICH MEDIUM THEY COME TO KNOW ABOUT EXISTING LANDLINE

Mediam Advertising Friends Family members Others Total No. of Respondent 08 24 12 06 50 Percentage 16 48 24 12 100

16% Respondents are aware about existing landline Phone provider through advertising. 24% Respondents are aware about existing landline Phone provider through family member. 48% Respondents are aware about existing landline Phone provider through friends.

12%

Respondents

are

aware

about

PURPOSE TO PURCHASE LANDLINE PHONE

Purpose Official use Home Status symbol Total No. of Respondent 17 23 10 50 Percentage 34 46 20 100

34% Respondents have the purpose to purchase to landline Phone for official use.
46% Respondents have the purpose to purchase to landline Phone for off home use. 34% Respondents have the purpose to purchase to landline Phone for status symbol.

FACTORS WHICH INFLUENCE MOST AT PURCHASING OF LANDLINE CONNECTION

Factors Economic call rate Good connectivity No. of Respondent 19 23 Percentage 38 46

Tones
ID caller Colors Total

02
06 00 50

04
12 00 100

38% Respondents are influenced most the Economic call rate. 46% Respondents are influenced most the Good connectivity. 04% Respondents are influenced most the Tones. 12% Respondents are influenced most the ID caller. 0% Respondents are influenced most the Colors

by
by by by by

PROBLEMS THEY ARE FACING FROM LANDLINE PHONE

Problem
Disturbance in lines during calls Cross connection Errors in bill Complaints are attended very late Instrument problem Total

No. of Respondent
17 07 09 13 04 50

Percentage
34 14 18 26 8 100

34% Respondents are facing the problem of disturbance in line during call. 14% Respondents are facing the problem of cross connectivity. 18% Respondents are facing the problem of errors in bill send to customer. 26% Respondents are facing the problem of complaints are attended very late. 08% Respondents are facing the problem in instrument.

SATISFACTION WITH THEIR LANDLINE

Satisfaction BSNL Reliance Tata Total No. of Respondent 27 15 08 50 Percentage 54 30 16 100

54% Respondents are satisfied with BSNL. 22% Respondents are satisfied with Reliance. 24% Respondents are satisfied with Tata.

AWARENESS ABOUT DIFFERENT SCHEME PROVIDER BY BSNL & PRIVATE LANDLINE PROVIDER
Different scheme BSNL Reliance No. of Respondent 35 11 Percentage 70 22

Tata
Total

04
50

08
100

70% Respondents are aware about different scheme provided BSNL. 22% Respondents are aware about different scheme provided by Reliance. 08% Respondents are aware about different scheme provided by Tata.

RESPONDENT CHOICE OF CONNECTION IF HE GETS A CHANCE TO GET NEW CONNECTION

New Landline Connection BSNL Reliance Tata Total No. of Respondent 31 12 07 50 Percentage 62 24 14 100

62% Respondent are in favour of adopting BSNL connection if they gets a chance to get new connection. 24% Respondent are in favour of adopting Reliance connection if they gets a chance to get new connection.

WHICH LANDLINE PROVIDING BETTER AFTER SALE SERVICE

After sale service BSNL Reliance Tata Total No. of Respondent 35 11 04 50 Percentage 70 22 08 100

70% Respondent of this opinion that BSNL provide better after sale service. 22% Respondent of this opinion that Reliance provide better after sale service. 08% Respondent of this opinion that Tata provide better after sale service.

SATISFIED AFTER SALE SERVICE WITH EXISTING LANDLINE PHONE

Satisfied sale service Yes No. of Respondent 15 Percentage 30

No
Total

35
50

70
100

30% Respondents are satisfied with their existing landline phone.

70% Respondents are unsatisfied with their existing landline phone.

PROBLEM FACING BY CONSUMER FROM THE DIFFERENT LANDLINE PROVIDER

Problems Connectivity Billing After sale service Problem in instrument BSNL% 35 36 28 26 Reliance % 11 10 15 13 Tata % 04 04 07 11

70% Respondent are facing problem of connectivity from BSNL. 22%Respondent are facing problem of connectivity from Reliance. 08% Respondent are facing problem of connectivity from Tata 74% Respondent are facing problem of billing from BSNL. 20% Respondent are facing problem of billing from Reliance. 08% Respondent are facing problem of billing from Tata. 56% Respondent are facing problem of after sale service from BSNL. 30% Respondent are facing problem of after sale service from Reliance. 14% Respondent are facing problem of after sale service from Tata 54% Respondent are facing problem of instrument from BSNL. 26% Respondent are facing problem of instrument from Reliance. 22% Respondent are facing problem of instrument from

WHICH IS THE BETTER LANDLINE OPTION

Better option of landline BSNL Reliance Tata Total No. of Respondent 24 16 10 50 Percentage 48 32 20 100

48% Respondent have opted BSNL as a better landline phone option. 32%espondent have opted Reliance better landline phone option. 20% Respondent have opted Tata as a better landline phone option.

EXPECTATION TOWARD THE ATTRIBUTES OF LANDLINE PHONE

Expectation Portable Economic Good connectivity Call rate Total No. of Respondent 04 15 13 18 50 Percentage 08 30 26 36 100

08% Respondents want their landline to be Portable. 30% Respondents want their landline to be Economic. 26% Respondents want their landline to be Good connectivity. 36% Respondents want their landline to be Call rate.

PRIVATE LANDLINE PROVIDER OFFER BETTER SERVICES AS COMPARED BSNL

Better Private service Yes No. of Respondent 37 Percentage 74

No
Total

13
50

26
100

74% Respondents are of this opinion that private landline co. provide better service as compared BSNL. 26% Respondents are of this opinion that private landline co. do not provide better service as compared BSNL.

AWARENESS ABOUT CHARGES OF PRIVATE LANDLINE PROVIDER

Amount awareness Yes No. of Respondent 13 Percentage 24

No
Total

37
50

74
100

74% Respondents are aware about the charged by private landline provider. 26% Respondents are unaware about the charged by private landline provider.

RATING BY CONSUMER ABOUT DIFFERENT LANDLINE LAND LINE PROVIDER

Better option of landline BSNL Reliance No. of Respondent 35 11 Percentage 70 22

Tata
Total

04
50

08
100

70% Respondents are give rating to BSNL.

22% Respondents are give rating to Reliance. 08% Respondents are give rating to Tata.

CONSIDER ABOUT THE FUTURE OF LANDLINE IN INDIA

Future of landline in India Good Excellent No. of Respondent 11 30 Percentage 22 60

Bad
Worst Total

05
04 50

10
08 100

22% Respondents considered the future of landline in India as good.

60% Respondents considered the future of landline in India as excellent.

08% Respondents considered the future of landline in India as worst.

10% Respondents considered the future of landline in India as bad.

LIMITATION

Unwillingness of respondent to provide information. Inability of respondent to provide. Questionnaire can be administered to respondents who has considerable amount of education. Success and effectiveness mainly depends on the co-operation of the respondents. In many situations researcher is not in a positions to detect the respondents is bias. Unintelligent answers or misinterpretation of any questions by the respondents could not be corrected. Non-response rate is very high. Cost constraint Time consumption.

FINDINGS

Most of the respondents have a landline phone. BSNL is the market leader in the landline phone. 40% respondents are aware about the private landline provider. Customer are very much stick to the previous services. Most of the respondent influence by their friends. Economic aspect also lies in the surface area of mind. Good connectivity is the factor, which influence most purchasing landline connection. 45% respondent have purpose to purchase the landline for home use. 35% respondents are facing the problem from the landline phone due to disturbance in the line during the call. 53% respondents are satisfied with their landline phone. Customers are very much unaware with private services. More than 50% respondents are unaware about the different scheme provided by BSNL & Private landline provider. Some customers are fed up with the services of BSNL. Some other private competitors also giving strong resistance. Network at each & every place not their.

CONCLUSION

The result of the study can be useful for the telephone provider companies. The factors affection consumer buying behavior is change according to their income effect. I have segmented the survey in three categories i.e. student, self employed & serviceman. Students are much attracting by the mobile phone. They wants to purchase on financed influence by cash sales promotion schemes students are using their mobile for fun & joy. Serviceman & self employed are giving preference to average low maintenance & price in comparison to looks colors & brand image. Serviceman wants to purchase a landline phone for home use.

RECOMMANDATION

Brand promotion scheme must be made more attractive than the offer given in campaign. Educating the customer regarding the usage of phone. To increase the percentage of reach, the frequency of advertisement of private landline has to be increase. Landline phone provider should try to give better services. The private landline provider should create awareness among the customer. The private landline company should make attractive advertising campaign.

THANK YOU