mba project

1. INTRODUCTION

History of Indian Telecommunication

India is the world‘s fastest growing industry in the world in terms of number of wireless connections after China, with 811.59 million mobile phone subscribers. According to the world telecommunications industry, India will have 1.200 billion mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013. So how Telecommunication started in India?? Well Postal means of communication was the only mean communication until the year 1850. In 1850 experimental electric telegraph started for first time in India between Calcutta (Kolkata) and Diamond Harbor (southern suburbs of Kolkata, on the banks of the Hooghly River). In 1851, it was opened for the use of the British East India Company. Subsequently construction of telegraph started through out India. A separate department was opened to the public in 1854. Dr.William O‘Shaughnessy, who pioneered the telegraph and telephone in India, belonged to the Public Works Department, and worked towards the development of telecom. Calcutta or the-then Kolkata was chosen as it was the capital of British India. In early1881, Oriental Telephone Company Limited of England opened telephone exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras (Chennai) and Ahmedabad. On the 28th January 1882 the first formal telephone service was established with a total of 93 subscribers. From the year 1902 India drastically changes from cable telegraph to wireless telegraph, radio telegraph, radio telephone, trunk dialing. Trunk dialing used in India for more than

a decade, were system allowed subscribers to dial calls with operator assistance. Later moved to digital microwave, optical fiber, satellite earth station. During British period all major cities and towns in India were linked with telephones. So who was looking after Telecom?? In the year 1975 Department of Telecom (DoT) was responsible for telecom services in entire country after separation from Indian Post & Telecommunication. Decade later Mahanagar Telephone Nigam Limited (MTNL) was chipped out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment. In1995 TRAI (Telecom Regulatory Authority of India) was setup. This reduced the interference of Government in deciding tariffs and policy making. The Government of India corporatized the operations wing of DoT in 2000 and renamed Department of Telecom as Bharat Sanchar Nigam Limited (BSNL). In last 10 years many private operator‘s especially foreign investors successfully entered the high potential Indian telecom market. Globally acclaimed operators like Telenor, NTT Docomo, Vodafone, Sistema, SingTel, Maxis, Etisalat invested in India mobile operators.

Wireless Communication Pager Services Pager communication successful launched in India in the year 1995. Pagers were looked upon as devices that offered the much needed mobility in communication, especially for businesses. Motorola was a major player with nearly 80 per cent of the market share. The other companies included Mobilink, Pagelink, BPL, Usha Martin telecom and Easy call. Pagers were generally worn on the belt or carried in the pocket. The business peaked in 1998 with the subscriber base reaching nearly 2 million. However, the number dropped to less than 500,000 in 2002. The pager companies in India were soon struggling to maintain their business. While 2-way pagers could have buffered the fall, the pager companies were not in a position to upgrade their

infrastructure to improve the ailing market. The Indian Paging Services Association was unable to support the industry. Pager companies in India also offered their services in regional languages also. However, the end had begun already. By 2002, Motorola stops making or servicing pagers. When mobile phones were commercially launched in India, the pager had many advantages to boast. Pagers were smaller, had a longer battery life and were considerably cheaper. However, the mobile phones got better with time and continuously upgraded themselves.

Mobile Communication First mobile telephone service on non-commercial basis started in India on 48th Independence Day at country‘s capital Delhi. The first cellular call was made in India on July 31st, 1995 over Modi Telstra‘s MobileNet GSM network of Kolkata. Later mobile telephone services are divided into multiple zones known as circles. Competition has caused prices to drop and calls across India are one of the cheapest in the world. Most of operator follows GSM mobile system operate under 900MHz bandwidth few recent players started operating under 1800MHz bandwidth. CDMA operators operate under 800Mhz band, they are first to introduce EVDO based high speed wireless data services via USB dongle. In spite of this huge growth Indian telecom sector is hit by severe spectrum crunch, corruption by India Govt. officials and financial troubles. In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by Government owned MTNL and BSNL. Later from November 2010 private operator‘s started to launch their services.

Broadband communication After US, Japan, India stands in third largest Internet users of which 40% of Internet used via mobile phones. India ranks one of the lowest provider of broadband speed as compared countries such as Japan, India and Norway. Minimum broadband speed of 256kbit/s but speed above 2Mbits is still in a nascent stage.

Year 2007 had been declared as ―Year of Broadband‖ in India. Telco‘s based on ADSL/VDSL in India generally have speeds up to 24Mbit max while those based on newer Optical Fiber technology offer up to 100Mbits in some plans Fiber-optic communication (FTTx). Broadband growth has been plagued by many problems. Complicated tariff structure, metered billing, High charges for right of way, Lack of domestic content, non implementation of Local-loop unbundling have all resulted in hindrance to the growth of broadband. Many experts think future of broadband is on the hands of wireless factor. BWA auction winners are expected to roll out LTE and WiMAX in India in 2012.

Next Generation Network (NGN) Next Generation Networks, multiple access networks can connect customers to a core network based on IP technology. These access networks include fiber optics or coaxial cable networks connected to fixed locations or customers connected through Wi-Fi as well as to 3G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks both fixed and mobile users will access services through a single core network. Cloud based data services are expected to come.

Indian Satellites India has launched more than 50 satellites of various types, since its first attempt in 1975. The organization responsible for Indian satellites is the Indian Space Research Organization (ISRO). Most Satellites have been launched from various vehicles, including American, Russian, European satellite-launch rockets, and the U.S. Space Shuttle. First Indian satellite Aryabhata on 19th April 1975, later Bhaskara, Rohini, INSAT, Edusat, IRS, GSAT, Kalpana, Cartosat, IMS, Chandrayaan, ResourceSat, RiSat, AnuSat, etc.

Well guys this is how telecom Industry is growing in India, hope to see India far ahead of other countries in near future. Introduction – Evolution Indian telecom sector is more than 165 years old. Telecommunications was first introduced in India in 1851 when the first operational land lines were laid by the government near Kolkata (then Calcutta), although telephone services were formally introduced in India much later in 1881. Further, in 1883, telephone services were merged with the postal system. In 1947, after India attained independence, all foreign telecommunication companies were nationalised to form the Posts, Telephone and Telegraph (PTT), a body that was governed by the Ministry of Communication. The Indian telecom sector was entirely under government ownership until 1984, when the private sector was allowed in telecommunication equipment manufacturing only. The government concretised its earlier efforts towards developing R&D in the sector by setting up an autonomous body – Centre for Development of Telematics (C-DOT) in 1984 to develop state-of-the-art telecommunication technology to meet the growing needs of the Indian telecommunication network. The actual evolution of the industry started after the Government separated the Department of Post and Telegraph in 1985 by setting up the Department of Posts and the Department of Telecommunications (DoT). The entire evolution of the telecom industry can be classified into three distinct phases.
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Phase I- Pre-Libralisation Era (1980-89) Phase II- Post Libralisation Era (1990-99) Phase III- Post 2000

Until the late 90s the Government of India held a monopoly on all types of communications – as a result of the Telegraph Act of 1885. As mentioned earlier in the chapter, until the industry was liberalised in the early nineties, it was a heavily

government-controlled and small-sized market, Government policies have played a key role in shaping the structure and size of the Telecom industry in India. As a result, the Indian telecom market is one of the most liberalised market in the world with private participation in almost all of its segments. The New Telecom Policy (NTP-99) provided the much needed impetus to the growth of this industry and set the trend for libralisation in the industry.

Current Status Globalisation has made telecommunication an integral part of the infrastructure of the Indian economy. The telecom sector in India has developed as a result of progressive regulatory regime. According to the TRAI, the total gross revenue of the Indian telecom services industry was Rs 1,524 bn in FY09 up from Rs 1,291 bn in FY08 registering a growth of 18.03% over FY08 and its subscriber base grew by 43% over FY08 to touch 429.70 mn subscribers in FY09.

The telecom sector in India experienced a rapid growth over the past decade on account of regulatory libralisation, structural reforms and competition, making telecom one of the major catalysts in India‘s growth story. However, much of this growth can be attributed to the unprecedented growth in mobile telephony as the number of mobile subscribers grew at an astounding rate from 10 million in 2002 to 392 million in 2009. Besides, the growth in the service and IT and ITeS sector also increased the prominence of the telecom industry in India. Telecom has emerged as a key infrastructure for economic and consumer growth because of its multiplier effect and

the fact that it is beneficial to trade in other industries. The contribution of the sector to GDP has been increasing gradually (its contribution in GDP has more than doubled to 2.83% in FY07 from 1.0% in FY92). Telecom is one of the fastest-growing industries in India; on an average the industry added 8 million wireless subscribers every month in FY08. The government had set a target of 500 million telecom connections by 2010. However, according to the TRAI, the total subscriber base (wireless and wireline) in the industry crossed the 500-mnmark and reached 509.03 mn by the end of September 2009, which took India to the second position in terms of wireless network in the world next only to China. Prior to liberalisation, the telecom sector was monopolised by the public sector and recorded marginal growth; in fact, during 1948-1998, the incremental teledensity in the country was just 1.92%. However, the introduction of NTP‘99 accelerated the growth of the sector and the teledensity increased from 2.33 in 1999 to 36.98 in 2009; however, much of this growth was brought about by the NTP-99 policy changes such as migration from fixed license fee to revenue sharing regime and cost-oriented telecom tariffs. From 2003 onwards the government has taken certain initiatives such as unified access licensing regime, reduced access deficit, introduction of calling party pays (CPP) and revenue sharing regime in ADC that has provided further impetus to the sector. The Indian telecom industry is characterised with intense competition, and continuous price wars. Currently, there are around a dozen telecom service providers who operate in the wired and wireless segment. The government has been periodically implementing suitable fiscal and promotional policies to boost domestic demand and to create volumes for the industry. The Indian telecom industry has immense growth potential as the teledensity in the country is just 36 as compared with 60 in the US, 102 in the UK and 58 in Canada. The wireless segment growth has played a dominant role in taking the teledensity to the current levels. In the next few years, the industry is poised to grow further, in fact, it

has already entered a consolidation phase as foreign players are struggling to acquire a pie in this dynamic industry. Role in India’s Development Contribution to GDP According to the UNCTAD, there is a direct correlation between the growth in mobile teledensity and the growth in GDP per capita in developing countries, which tend to have a high percentage of rural population. The share of the telecom services industry in the total GDP has been rising over the past few years (the telecom sector contribution in GDP went up from 2.52% in FY05 to 2.83% in FY07).

Employment The Indian telecommunication industry employs over 400,000 direct employees and about 85% of these employees are from government-owned companies. The ratio of number of subscribers to employees, an indication of efficiency and profitability, is much higher for private companies than for government companies.

Foreign Direct Investment (FDI) Foreign direct investment has been one of the major contributors in the growth of the Indian economy, and therefore, the need for higher FDI is felt across sectors in the Indian economy. The telecom sector has played a crucial role in attracting FDI in India. The share of telecom sector in the total FDI inflows in India has gone up to 10% in FY09 as compared with just 3% in FY05. The telecom sector requires huge investments for its expansion as it is capital-intensive and FDI plays a vital role in meeting the fund requirements for expansion of the telecom sector. Telecom accounts for almost 10% of the total FDI inflows in the country and has been the third-largest sector to attract FDI in India in the postliberalisation era

The Indian telecom industry has been an attractive avenue for foreign investors over the years. As per DIPP figures, the cumulative FDI inflow during August 1991 to June 2009 period, in the telecommunication sector amounted to US$ 113 bn. FDI calculation takes into account radio paging, cellular mobile and basic telephone services in the telecommunication sector. In the 2004-05 Budget, the government raised the FDI limit from 49% to 74% in the telecom services segment subject to retention of local management control. According to the new norms, 26% share out of the 74% should be held by an Indian company or an Indian citizen with Indian management. Further, 100% FDI is permitted in telecom manufacturing, category I infrastructure providers, ISPs without gateway, call centres and IT-enabled services. Further, direct or indirect FDI up to 74% is permitted subject to licensing and security requirements for ISPs with gateways, radio paging operators and category II infrastructure providers. The relaxation in FDI norms has attracted many foreign telecom majors to the sector. The presence of foreign players has not only encouraged faster infrastructure development and upgradation but also has opened up the domestic industry to foreign

competition. Since 2004, there has been a large inflow of FDI in the sector. During 2004-05 and 2005-06, a period during which the FDI norms were relaxed, the FDI inflow grew by an astounding 300% to US$ 624 mn in 2005-06 from merely US$ 125 mn in 2004-05. The inflow of FDI has provided tremendous impetus to the sector in the past few years and the attractiveness of the sector has kept the FDI inflows growing steadily. During FY09 the FDI in the telecom sector at US$ 2,558 mn was 103% higher than that seen in FY08 at US$ 1,261 mn. Further, the FDI in the sector has already reached US$ 2010 mn for a six month period of FY10 (Apr-Sep 09) and is expected to surpass the total FDI for FY09. The government‘s liberalised FDI policies have resulted in several foreign companies entering into the Indian markets. The influx of foreign players in the Indian telecom industry has led to capacity creation, and better infrastructure, which in turn has bettered the network quality. The rise in FDI has also enabled technology transfer, market access and has improved organisational skills; going forward, FDI could be used for providing telecom services to rural areas, where teledensity is still very low. The change in FDI policy that has raised the FDI limit from 49% to 74% for the sector has made it more attractive for foreign players. In the long run the growth prospects of telecom players that have foreign partners will improve and other players will get new avenues to raise capital. Growth of IT-ITeS and Financial Sector India has entered the league of countries with the most-advanced telecommunication infrastructure after the industry was deregulated. Furthermore, deregulation has stimulated India‘s economic growth through industry growth and through rise in investments. It is evident that a well-developed communication sector improves access to social networks, lowers transaction costs, increases economic opportunities, widens markets, and provides better access to information, healthcare and educational services.

The growth in Indian telecom sector has been concomitant with overall growth in GDP, government revenue, employment et al. Besides, telecommunication has increased efficiency, reduced transaction costs, attracted investments and has created new opportunities for business and employment. The NTP-99 was particularly helpful for the ITeS-BPO industry as it ended the government monopoly in international calling by introducing IP telephony. After the introduction of IP telephony, there was rapid growth in the number of data processing centres and inbound/outbound call centres, which ultimately led to the outsourcing revolution in India. The telecom sector has been instrumental in creating jobs for a vast pool of talented and knowledge professionals in the IT and ITeS-BPO industry, which thrives on reliable telecommunication infrastructure. India has become an important outsourcing destination for the world and the boom in this sector also has transformed India‘s economic dynamics. The evolution of telecom sector has brought about a revolutionary change in the way some businesses operate. Another beneficiary of the telecom revolution is the financial services industry, which has been on a growth trajectory. The progress and quality of the financial sector has been a key factor that has driven the pace and diversity of the real economy. India has an extensive and well-developed financial sector with wide and sophisticated banking network. Banking in India has become service-oriented, and has matured greatly from the days of walk-in customers to the present situation when banks have migrated to a 24-hour banking platform to attract customers; however, this disintermediation in the business has led banks to be extremely prudent in terms of their internal operations and has led them to adopt newer products and delivery channels. Further, with introduction of internet & mobile banking the long ques at the banks are slowly becoming a thing of the past.

Both the financial and the IT-ITeS segments rely on good domestic as well as international network connectivity; therefore, there is a need for a sound telecommunication network. Factors Facilitating Growth of the Sector The phenomenal growth in the Indian telecom industry was brought about by the wireless revolution that began in the nineties. Besides this, the following factors also aided the growth of the industry. Libralisation The relaxation of telecom regulations has played a major role in the development of the Indian telecom industry. The liberalisation policies of 1991 and the consequent influx of private players have led the industry on a high growth trajectory and have increased the level of competition. Post-liberalisation, the telecom industry has received more investments and has implemented higher technology. Increasing Affordability of Handsets The phenomenal growth in the Indian telecom industry was predominantly aided by the meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter the market and to cater to the growing demand. Further, the manufacturers introduced lower-priced handsets with add-on facilities to cater to the increasing number of subscribers from different strata of the society. Now even entry-level handsets come with features like coloured display and FM radio. Thus, the falling handset prices and the add-on features have triggered growth of the Indian telecom industry.

Prepaid Cards Bring in More Subscribers In the late nineties, India was introduced to prepaid cards, which was yet another milestone for the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards were quite a phenomenon among first-time users who wanted to control their bills and students who had limited resources but greater need to be connected. Prepaid cards greatly helped the cellular market to grow rapidly and cater to the untapped market. Further, the introduction of innovative schemes like recharge coupons of smaller denominations and life time incoming free cards has led to an exponential growth in the subscriber base. Introduction of Calling Party Pays (CPP) The CPP regime was introduced in India in 2003 and under this regime, the calling party who initiated the call was to bear the entire cost of the call. This regime came to be applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from both mobile as well as fixedline networks. Shifting to the CPP system has greatly fuelled the subscriber growth in the sector. Changing Demographic Profile The changing demographic profile of India has also played an important role in subscriber growth. The changed profile is characterised by a large young population, a burgeoning middle class with growing disposable income, urbanisation, increasing literacy levels and higher adaptability to technology. These new features have multiplied the need to be connected always and to own a wireless phone and therefore, in present times mobiles are perceived as a utility rather than a luxury.

Increased Competition & Declining Tariffs Liberalisation of the telecom industry has fuelled intense competition, especially in the cellular segment. The ever-increasing competition has led to high growth of subscribers and has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular phones were introduced, call rates were at a peak of Rs 16 per minute and there were charges for incoming calls too. Today, however, incoming calls are no longer charged and outgoing calls are charged at less than a rupee per minute. Thus, the tariff war has come a long way indeed. Increased competition and the subsequent tariff war has acted as a major catalyst for attracting more subscribers. Apart from these major growth drivers, an improved network coverage, entry of CDMA players, growth of value-added services (VAS), advancement in technology, and growing data services have also driven the growth of the industry. Outlook The telecom industry in India has experienced exponential growth over the past few years and has been an important contributor to economic growth; however, the cutthroat competition and intense tariff wars have had a negative impact on the revenue of players. Despite the challenges, the Indian telecom industry will thrive because of the immense potential in terms of new users. India is one of the most-attractive telecom markets because it is still one of the lowest penetrated markets. The government is keen on developing rural telecom infrastructure and is also set to roll out next generation or 3G services in the country. Operators are on an expansion mode and are investing heavily on telecom infrastructure. Foreign telecom companies are acquiring considerable stakes in Indian companies. Burgeoning middle class and increasing spending power, the government‘s thrust on increasing rural telecom coverage, favourable investment climate and positive reforms will ensure that India‘s high potential is indeed realised.

NEED OF THE STUDY:  This study helps the company to give special privileges and preference to old customers in order to retain them.  This study helps the company to provide more offers in order to increase the sale.  This study helps the company to concentrate on plan vouchar in order to satisfy and attract more customers.

OBJECTIVES OF THE STUDY:

PRIMARY OBJECTIVE: To analyze the brand loyalty of Chennai customers with Videocon telecom. SECONDARY OBJECTIVE:  To find the awareness of the customers related to Videocon.  To find the purchasing frequency of the customers.  To find the satisfaction level of the customers.

SCOPE OF THE STUDY The study helps to understand the Consumer behavior in purchasing decision at viedocon telecom company in chennai.

LIMITATION OF THE STUDY:  The sample size was limited to 200 respondents the study covered a limited no of respondents with Regard to age, gender, occupation, income.  The opinion expressed may be subjected. It is only restricted to Chennai.

COMPANY PROFILE

Videocon Mobile Service., is a GSM based cellular operator in India based in Gurgaon (NCR Delhi).[2]Videocon Telecommunications Limited which holds a market share of 0.78% in the country, a Videocon group company offers GSM mobile services GSM service under the brand name Videocon.

Videocon Communications Ltd. – A Videocon group company which offers GSM mobile services GSM service.The company started its telecom services after the 2G Auction and operates in Tamil Nadu (including Chennai), Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, UP East, UP West, Himachal Pradesh

Videocon Mobile Services is a next-generation GSM mobile service network launched by the Rs.25,000 crore Videocon Group. The services are already up and running in Tamil Nadu( including Chennai ), Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, Himachal Pradesh and soon will be present across the country. The company has partnered with global technology leaders to create a robust infrastructure featuring future ready mobile technologies. Powered by a 2.75G EDGE GSM network, Videocon Mobile Services aims to redefine the Indian mobile

telecommunications industry leveraging a combination of the parent company‘s strong brand recall and retail reach with a spirit of innovation and customer centricity.

The Videocon Group is a global business conglomerate with a strong presence in Household Consumer Goods, Telecom, DTH, Retail, Oil & Gas and the Power sector. The Group is rated among India‘s Top 15 Business Houses and is listed among the 100 Emerging Giants of the World according to a Boston Consulting Group study in addition to being rated amongst the Top 15 of India‘s ‗buzziest brands‘ by agencyfaqs in 2010.

2. REVIEW OF LITRATURE: Pepe, Michael S., D.B.A., Nova Southeastern University, 2008 said that two theoretical models were developed. A total of 12 hypotheses were developed and tested using structural equation modeling (SEM). There were a total of three hypotheses supported and nine hypotheses not supported. The results of this study indicated that there were not significant positive relationships between category sales volume penetration and overall category sales volume, unit volume, market share, and profitability. Overall category sales and unit volume significantly impacted overall category profitability. The results also indicated that there was a significant negative relationship between overall department private label sales penetration and department sales volume and customer transaction counts. Increasing the total amount of spending by loyal customers resulted in increased department profitability. Back, Ki-Joon, Ph.lD., The Pennsylvania State University, 2001. The major objective of this research was to develop a brand loyalty measurement based of a critical review of the literature and investigation of numerous empirical studies. Furthermore, the study was extended to identify the relationship among image congruence, customer satisfaction, and brand loyalty in the lodging industry. In particular, this study focused on investigating the mediating effects of attitudinal brand loyalty on the relationship between customer satisfaction and behavioral brand loyalty in the lodging industry. This study also contributes to the existing brand loyalty studies by assessing the relationship between attitudinal and behavioral brand loyalty in the lodging industry. Further, it discusses the theoretical and managerial implications of the findings and the limitations of the study methods. MAHESH NAYAK‘S (2009), the author talk about a path analytic model of brand loyalty was developed to investigate the relationship among image congruence, customer satisfaction, and brand loyalty in the lodging industry. Despite efforts to investigate the relationship between image congruence and pre-purchasing behavior, only a limited number of studies have been conducted to measure how image

congruence and incongruence affect post-purchase behaviors—namely customer satisfaction and brand loyalty—especially in the lodging industry. The major objective of this research was to develop a brand loyalty measurement based on a critical review of the literature and investigation of numerous empirical studies. KAYEZAD E. ADAJANIA (2007) Says that brands have on category performance and loyal consumer behavior in supermarkets within the framework of category management. Category management seeks to enhance the overall performance of

product categories as measured by such metrics as sales, units, market share and profitability. Private label brands have increased dramatically in recent year in

supermarkets with the major objectives of increasing category performance and favorably impacting loyal consumer behavior, brand loyalty in the lodging industry. Many researchers have studied the effects of image congruence on customers‘ attitude toward the brand in terms of their intention to purchase.

TELECOM INDUSTRY PROFILE The Indian telecom industry is the world‘s fastest growing industry with 792 million mobile phone subscribers as of February 2011. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The industry will reach around $80 billion in revenues by next year showing an astounding CAGR of over 25% and will employ a stupendous 1 crore employees making it one of the biggest value creators in India in recent times.However the telecom companies in India after enjoying a boom period in the early 2000s have faced a couple of tough years with hypercompetition leading to a price war in auction of 3G spectrum.This was followed by one of the most high profile corruption scandals in the country which resulted in the jailing of the former telecom minister in the 2nd auction of 2G spectrum.Most of the telecom companies have been found to be implicated in colluding with sleazy politicians/bureaucrats in looting the Indian taxpayers.India Real

Estate Sector is one of the most corrupt in the country and after the 2G Scam,the telecom sector is giving it close competition for the No.1 spot in corruption Despite these problems,India is set to see another spurt of growth as 3G in India has the potential to bring Internet to India‘s massively under penetrated population which has phones but not computers.

Mobile Number Portability (MNP) India is a fast growing in terms of mobile usage. A mobile phone has become a necessity in today‘s lifestyle. As a result India has turned out to be a competing hub for many mobile companies. Mobile Number Portability (MNP) was launched in India in January 2011, which allows the user to retain the existing number while giving him an option to change the subscriber. India, the world‘s second largest market for mobile phones is foretasted to become an even larger market with unit shipments of 209 million each year by 2016 at a compound annual growth rate of 12% from 2010 to 2016, according a market study. India‘s mobile market has changed with local mobile companies drastically cutting into the market of the dominant companies like Nokia.The mobile entertainment industry in India is also witnessing significant growth and a latest research forecasts this market to reach $5 billion in 2015 from $1.2 billion in 2009, growing at a CAGR of 26% Telecom Industry in India – Laggards Losing out Badly Given below is a list of the telecom companies in India – some are State owned, some private & some formed in collaboration with other Foreign companies. However, in recent years, due immense competition in Indian telecom sector, the State owned MTNL has been losing revenue and market share heavily. On February 23, 2011, The Department of Telecommunications (DoT) said it wanted to revive a proposal for the merger of state-owned operators BSNL and MTNL, as they have complimentary operations and can combine their strengths for synergies.Note BSNL and MTNL have

been affected by bad management,an apathetic government and private competitors who have undermined the interests of BSNL/MTNL by underhand means.BSNL which was the No.1 player with an impregnable position has become an also ran as its capacity expansion was dogged by motivated red tape. Bharat Sanchar Nigam Ltd. – One of the largest & leading public sector units in India. It was formed in October, 2000, is World‘s 7th largest Telecommunications Company providing comprehensive range of telecom services in India BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. Its wide network is present across India except Delhi & Mumbai. BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3Gcustomers as on November 2009. It has 35.1 million Basic Phone subscribersform . 85 per cent share of the subscriber base and 92 percent share in revenue terms. BSNL has more than 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. Mahanagar Telephone Nigam Ltd MTNL) – It is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi in India. The company was a monopoly until 1992, when the telecom sector was opened to other service providers. MTNL provides fixed line telephones, cellular connection of both GSM & CDMA and internet services through dialup and DSL — Broadband internet. MTNL also provides other services such as VPN,Internet Telephony- VOIP and leased lines through BSNL and VSNL. MTNL has also unveiled very cost-effective Broadband Internet access plans (TriBand) targeted at homes and small businesses. MTNL has suffered even more than BSNL and just about survives in a pathetic condition. Private Indian owned Companies Reliance Communications Ltd. – One of the major Indian telecommunication companys headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with more than 128 million subscribers. It is India‘s largest and only telecom

operator offering nationwide CDMA, GSM and 3G mobile services. Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group, ranks among India‘s top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance Communications was the first Indian company to make handsets so popular in India. It is present in almost the whole of country – Andhra Pradesh, Bihar, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal.(AUSPI). The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited. Reliance Communications paid Rs.5864.29 crores for 3G spectrum in 13 circles. in 2010, RCom became the second private sector telecom company (fourth overall) to launch 3G services in India, with a 4 city launch in Chandigarh, Delhi, Kolkata and Mumbai. TATA Teleservices Ltd. – is the pioneer of the CDMA 1x technology platform in India. It has embarked on a growth path since the acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations in January 2005 under the brand name Tata Indicom and today enjoys a pan-India presence through existing operations in all of India‘s 22 telecom Circles – Assam, Andhra Pradesh, Bihar, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, J & K, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal (AUSPI). The company is also the market leader in the fixed wireless telephony market. It is the first to pioneer the per-second tariff option—part of its ‗Pay for What You Use‘ pricing paradigm. . Tata Teleservices Limited has also become the first Indian private telecom operator to launch 3G services in India under the brand name Tata DOCOMO, with its recent launch in all the nine telecom Circles where it bagged the 3G license.

Idea Cellular Ltd. – Initially a Birla-TATA-AT&T initiative, is now an Aditya Birla Group company. In 2005, AT&T sold its investment in Idea, and the year after Tatas also exited. Idea has its presence in Delhi (Metro), Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Maharashtra, Kerala, Madhya Pradesh, Rajasthan, Uttar Pradesh (E), Uttar Pradesh (W) (COAI). The company is among the top four mobile telephony players in India with an 11 per cent all-India subscribers market share. Idea paid Rs.5768.59 crores for 3Gspectrum in 11 circles. Idea enjoys a market leadership position in many of its operational areas. It offers GPRS on all its operating networks for all categories of subscribers, and was the first company in India to commercially launch the next generation EDGE technology in Delhi in 2003. . Quadrant Televentures Ltd. – Formerly HFCL Infotel Limited, is a Unified Access Services Licensee in Punjab Telecom Circle. Commonly known by the name Connect, provides voice telephony In March 2010, it launched its GSM services in the Punjab Service Area. In April 2010, it acquired remaining interest in Infotel Tower Infrastructure Private Limited.

Private Companies with Majority Stake by Foreign Investors Bharti Airtel Ltd. -It is the largest India mobile operator by subscriber base. Commonly known as Airtel, is an Indian telecommunications company that operates in 19 countries across South Asia, Africa and the Channel Islands. Airtel also offers fixed line services and broadband services. Airtel is the largest cellular service provider in India and fifth largest in the world present in 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 (COAI). Airtel won 3G spectrum in 13 circles: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir for Rs. 12,295

crores. Bharti Airtel wins broadband spectrum in four circles: Maharashtra, Karnataka, Punjab and Kolkata for Rs. 3314.36 crores.Airtel acquired Zain‘s African operations for $10.7 billion to increase its base to more than 180 million globally. Vodafone Ltd. – The world‘s largest mobile telecommunications company measured by revenues and the world‘s second-largest measured by subscribers. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. In India it is present in Andhra Pradesh, Chennai (Metro), Delhi (Metro), Gujarat, Haryana, Karnataka, Kolkata (Metro), Mumbai (Metro), Punjab, Rajasthan, Uttar Pradesh (W), Uttar Pradesh (E), West Bengal, Maharatshtra, Tamilnadu, Kerala, Jammu & Kashmir, Himachal Pradesh, Orissa, Bihar, Assam, North East, Madhya Pradesh (COAI). Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It has a secondary listing on NASDAQ.Note Vodafone entered India by acquiring the Hutchinson stake. Aircel Group – a joint venture between Maxis Communications of Malaysia and Apollo Hospitalsof India. UTSB has a 74% stake in Aircel and the remaining 26% is with Apollo Hospitals. It is India‘s Seventh largest GSM mobile service provider. It offers both prepaid and postpaid GSM cellular phone coverage throughout India.As on date, Aircel is present in all 23 telecom circles Assam, Bihar, Chennai, Himachal Pradesh, Jammu & Kashmir, North East, Orissa, Tamil Nadu, West Bengal, Kolkata, Delhi, Kerala, Karnataka, Andra Pradesh,UP(E), UP(w), Mumbai (COAI). Aircel has also obtained permission from Department of Telecommunications (DoT) to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services. It also has the largest service in Tamil Nadu. Aircel paid Rs.6499.46 crores for the 3G spectrum in 13 circles – the least cost per circle compared to other operators. The circles it will provide 3G in are Andhra Pradesh, Assam,Bihar, Jammu & Kashmir, Karnataka, Kerala, Kolkata,Madhya Pradesh, Chhattisgarh, North East, Orissa, Punjab, Tamil Nadu, Uttar Pradesh, Uttarakhand, West Bengal.Aircel paid Rs.3438crores for the broadband wireless access spectrum in 8

circles, the second highest wins overall – after Reliance Communications. The circles it has won spectrum are Andhra Pradesh, Assam, Bihar, Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal. Loop Mobile Ltd. - In the year 2009, BPL Mobile rebranded itself as Loop Mobile and has been operating since then in Mumbai. BPL Mobile Communications Limited offers GSM wireless facilities in three states of India besides offering broadband facilities via wireless bplnet with an ADSL internet competence. It offers pre and post paid, data, and roaming services. The company has also started manufacturing handsets. Spice Communications Ltd. - Now a subsidiary of Idea Cellular Ltd.which owns more than 80% equity in the company. The Aditya Birla Group took over the ownership of Spice Telecom for over Rs 2,700 crore. The company‘s areas of operation are Karnataka & Punjab. The prepaid users(which form majority in India) had problems getting their phones recharged with prepaid balance when in roaming. Hence, Spice could not regain the market share inspite of its low tariffs. S Tel Ltd.- is a joint venture between Siva Group (formerly Sterling Infotech Group) and Bahrain Telecommunications Company (Batelco). S Tel has acquired Unified Access Services Licenses (UASL) and spectrum to operate in six Category C circles – Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu & Kashmir. These licenses will enable the company to provide Unified Mobile service, wireless broadband and other innovative Value Added Services. Unitech Wireless Ltd. – Unitech Group (32.75%) in joint venture with Norway‘s telecom major Telenor (67.25%) had started its service in telecom business under the name of Uninor. It offers mobile telephony services in India. The company was incorporated in 2008 and is based in Gurgaon, India. The company holds a pan-India UAS licence to offer telecommunications services in each of India‘s 22 circles & has also received spectrum for six circles. Unitech has sold out a majority stake in its telecom arm, making Unitech Wireless one of the few telecom companies controlled by foriegn telcos. The company benefited the most in the 2G spectrum allocation scam. Its

promoters gained Rs 2,342 crores and now the company is under direct investigation by the Supreme Court over corruption charges. Etisalat DB Telecom Pvt. Ltd – is a joint venture between Etisalat and Dynamix Balwas Group.Another telecom company which has now come under the Supreme Court Scanner with Balwa in jail. In 2009he Board of Etisalat DB, today announced the ‗change of name‘ of the erstwhile Swan Telecom, a joint venture between Etisalat and DB Realty. The company has officially been re-named as Etisalat DB Telecom India Pvt. Ltd.Etisalat DB and its subsidiary has the Unified Services Access License in 15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar. Sistema Shyam teleservices (SSTL) – Mobile TeleSystems OJSC (―MTS‖) is the leading telecommunications group in Russia, Eastern Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content and entertainment services. In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink Limited, JSFC Sistema‘s telecommunications subsidiary in India, announced the agreement to allow Shyam Telelink to use MTS brand in India.In 2008, Vodafone announced a partnership deal with MTS, whereby Vodafone services will be available to MTS subscribers and both companies have noted the potential for more efficient purchasing. MTS s present in Andhra Pradesh, Kerala, Rajasthan, Tamil Nadu (Incl.Chennai), Kolkatta, West Bengal, Bihar, Delhi, Mumbai, Haryana, Maharashtra, UP (E), UP (W), Madhya Pradesh, Gujarat, Punjab (AUSPI). MTS has been listed on the New York Stock Exchange since July 2000 and trades under the ticker MBT. The Company‘s shares have been listed locally on Moscow Interbank Currency Exchange (MICEX) since November 2003. The telecom industry has been divided into two major segments, that is, fixed and wireless cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have been discussed in brief in the report.

In today‘s information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionising human communication. Although the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is extremely low when compared with global standards. India‘s teledensity of 36.98% in FY09 is amongst the lowest in the world. Further, the urban teledensity is over 80%, while rural teledensity is less than 20%, and this gap is increasing. As majority of the population resides in rural areas, it is important that the government takes steps to improve rural teledensity. No doubt the government has taken certain policy initiatives, which include the creation of the Universal Service Obligation Fund, for improving rural telephony. These measures are expected to improve the rural tele-density and bridge the rural-urban gap in teledensity. Consolidation in Industry. Telecom players are looking to tap into global funds to finance their aggressive growth plans. This willresult in partnerships joint ventures and equity sellout to foreign players. New license holders willcontinue to look to sell their stake at a premium. New policies will seek to curb this license arbitrage.Smaller players with operations in only a few circles will find in difficult to compete with the nationwideplayers. The industry may see consolidation with these smaller operators being acquired by the larger ones. ―Unbundling of the corporation‖ will continue as companies will seek f or economies of scale and lower startup cost by infrastructure sharing. 3G and WiMax license will spur M&A and partnershipactivity.

Idea Cellular’s Acquisition of Spice Telecom There were three transactions as part of this acquisition; acquisition of shares of Spice, a non-competefee and a capital infusion of about Rs 7300 crores received from TM International Bhd (TMI). Withrespect to shares, Idea acquired 40.8% stake of Spice Communications at Rs 77.30 a share for Rs 2,716crore. There was a share swap in which Spice shareholders got 49 Idea shares for every 100 Spice sharesheld. An additional Rs 544 crore was paid to the promoters of Spice group as ' non-compete fee'.The deal was strategically important for Idea Cellular as it was looking forward to transfer itself into apan-India telecom service provider. The spectrum auctioned by GoI is a scarce resource nowadays andcost a premium. Also there‘s restriction by TRAI with respect to number of operators per telecom circle.So it makes sense to acquire a small telecom operator. Small players like Spice Telecom operating atonly a few circles(Karnataka and Punjab) will find difficult to compete with the nationwide players in thelong run. So it was a win-win deal for both companies. Vodafone’s entry into India Vodafone paid a discounted price of $10.9 billion in cash for acquiring the 52%stake held by Hutchison Telecom International (HTIL) in Indian mobile firmHutch-Essar. HTIL declared a special dividend of 6.75 HK dollars per sharefollowing the completion of the formalities. The final price was a reduction of $180 million from the originally agreed price of $11.08 billion.Vodafone is the largest mobile telecommunications network company in the world. The deal gave themaccess to one of the fastest growing mobile markets in the world Telenor-Unitech Deal Norwegian Telecom major Telenor is in the process of acquiring controlling stake of 67.25% in Unitech wireless via equity infusion. The enterprise valuation of

UnitechWirelsss is about Rs 10,900 crore. As per the deal, Telenor will infuse cash in fourstages and at each phase, by increasing its stake in Unitech Wireless. In the firstphase, they got 33.5% ownership in Unitech Wireless. In the second phase theycompleted the acquisition for a 49 per cent stake in Unitech Wireless by paying Rs1,130 crore for a further 15.5 per cent stake in the company. The acquisition is expected to becompleted by end of this quarter. TTSL–DoCoMo Deal. Japanese carrier NTT DoCoMo acquired 26 per cent stake in Tata Teleservices (TTSL). The TataDoCoMo-branded GSM service has already started in Southern India and gradually will be expandednationwide.DoCoMo‘s international expansion plans have not always proven successful, with the firmhistorically preferring to take small stakes in firms and thentry to influence their strategy. It has been less prepared totake majority stakes and impose its will, as other leadingcarriers have chosen to do.The difficulties faced by the firm in spreading itsdomestically successful i-mode service

internationallytypify the obstacles it has faced overseas. With Tata, DoCoMo hadsaid ―participating proactively inTTSL‘s management by providing human resources and technical assistance to help realise improvednetwork quality and the possible introduction of leading-edge, value-added services.‖ Bharti-MTN deal (in talks). Recently Bharti Airtel has re-started its audacious merger bid with MTN that could create a $61-billiontransnational telecom goliath with combined revenues of $20 billion and over 200 million subscribersacross Africa, Asia and Middle East, will be among the world's 10 biggest telecom companies. The dealcould be win-win for both parties. Bharti is under pressure in its home country due to severecompetition and looking forward to spread its risk across geographies. Meanwhile, the African telecomoperator is also encountering some of the problems that its counterpart in India is confronting. MTNmay have higher ARPUs (in the range of $12-20), but they are also falling fast.Strategic

benefits to both players Synergies would be sought from a number of areas, including procurement, operational best practice, R&D and international network sharing. The two companies will not overlap in each other‘s business operations: Bharti Airtel will be the primary vehicle for Bharti and MTN to pursue further expansion inAfrica and the Middle EastWith both Bharti and MTN operating in high-growth geographies, itwould be imperative for them to incrementally expand into untappedareas. Collaborating with each other would seem the logical way ahead.The most important, and visible fallout of the deal, if it materializes, willbe the advantage of economies of scale for the new entity.In recent times, companies are more amenable to mergers andacquisitions. Of late, companies are finding it tough to obtain easy fundsfor expansion, which calls for more collaboration if corporate intend toexpand. Bharti would not be involved only in MTN‘s day-to-day activities,but it would also have a say while making bigger strategic decisions, suchas those pertaining to investments in other geographies or sourcing of equipment.The high subscriber base and financial muscle will give Bharti-MTN the desired edge while dealing withvendors. Once the merger happens, the economies of scale of the complete outfit (Bharti-MTN) wouldbe taken into account. For instance, even if the company places an order worth just $1 million, thevendor would not hesitate to lap it up, as there could be orders worth a billion dollars in other projects.This would offset whatever concerns there may be with respect to the small population size in countrieswhere MTN operates.

Takeaways for Bharti The biggest takeaway for Bharti is in the form of access to new geographies with high growthpotential. Without a partner, Bharti would have to embark on a Greenfield project, which wouldbe time-consuming and capital intensive.

Besides, without local knowledge (with respect to the market and government regulations),Bharti could be on a sticky wicket. The Indian telco does not have the expertise in running multi-country operations. MTN has operations in 21 countries across Africa and the Middle East and is one of the largestemerging market mobile operators globally. While Africa has one-third of the world‘spopulation, its telephonic density is just 30 per cent. This offers plenty of room for expansion.The fact that 95 percent of Africa is prepaid, which ensures all cash operations, fits perfectly intoBharti‘s plans.The options for Bharti were to go either th e Greenfield way or with an experienced partner.MTN‘s strong foothold in some growing markets such as South Africa, Botswana, Iran andNigeria ensures that when the growth in India starts to slow down, Bharti would be ready totake off in other geographies. Besides, there is a lot of potential in Africa as three-fourths of thecontinent is still untapped.

3.RESEARCH METHODOLOGY

Research Design Data source Sample size Sampling Technique

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Descriptive Research Design Primary Data 200. Justified Sampling Method

Research Design: A Research Design is a master plan to conduct the formal investigation and survey. It is a specification method devised to collect the information needed for solving the problem. The framework of conducting research is known as Research Design. Descriptive Research: The research design used in this study is the Descriptive Research Design. Descriptive Research is concluded with measuring and estimating the frequencies with which things occur (or) the degree of correlation (or) association between various variables. Market research reports are often descriptive and they measure market size, structure, behavior and attitudes of consumers in the market place. Data obtained through descriptive research can be put in to various statistical analyses. Sources of Data: All market research requires vast reservoirs of information. There may be different types of information and data. It is necessary for the researcher to know the kind of information which is usually employed in marketing research work and the types of sources from which it is generally collected. The researcher has to collect more

specific information from specific sources of marketing data for solving specific problems of the market.

Methods of Data:  Primary Data  Secondary Data Primary Data: ―Primary Data may be described as those data that have been observed and recorded by the researchers for the first time to their knowledge‖. The data are originated by the researcher for the purpose of the investigation at hand. In the study data‘s were collected through Direct Interview Method. The interview was carried out meticulously in order to avoid misinterpretation of the data. In this study the data was collected through direct interview method using a Structured Questionnaire. Secondary Data: ―Secondary Data are statistics not gathered for the immediate study at hand but for some other purpose. They may be described as those data that have been complied by some agency other than the user. One method of collection of this primary data is through structured direct interviews. A formal questionnaire consisting of non-disguised questions are used for

this interview. A formal list of questions were prepared and were asked in sequence to the employees. This primary data can be collected by the following ways:  Observational research: The data can be gathered by observing the relevant factors and settings.  Focus-Group research: A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service organization or other marketing entity.  Survey research: Companies undertakes surveys to learn about people‘s knowledge, beliefs, preferences and satisfaction and to measure these magnitudes in the general population.  Experimental research: the most scientifically valid research is experimental research. The purpose of this research is to capture causeand-effect relationships by eliminating competing explanations of the observed findings. 3.5 METHOD USED IN THE STUDY In this study the primary data is collected through survey research method. The questionnaire is used as the research instrument for collected data. A formal questionnaire consisting of non-disguised questions were prepared and through direct personal interview the study was carried out.

3.6 QUESTIONNAIRE: The questionnaire is a standardized form for recording answer on the basis set of questions. Because of its flexibility the questionnaire is by far the most common

instrument used to collect primary data questionnaire need to be carefully developed, tested and debugged before they are administered on a large scale. The recording of answers may be undertaken either by the interviewer or by the respondents as the method of data collection require. ―The term questionnaire usually refers to a self administered process whereby the respondent himself reads the questions and records his answers without the assistance of an interviewer‖. The questionnaire is a useful method of data collection as it provides standardized methods of data analysis.

3.7 TYPES OF QUESTIONS USED FOR THE STUDY:

Open-end Questions: Open-end questions allow respondents to answer in their own words. Open-end questions. Often reveal more because respondents are not constraint in their answers. Openend questions are specially useful in the researcher is looking for insight into how people think rather than in measuring how many people think a certain way. Example: Give in your suggestions for the betterment of the organization.

Multiple Choice Questions A question with three or more answers.

Example: How much time is required for handling a Grievance?

a. Within 24 hours d. Within a month

b. Within two days e. Within a Fortnight

c. Within a week

3.8 SAMPLING:

Sample design: A sample design is a definite plan for obtaining a sample from a given population. It describes the techniques for the researcher to adopt in selecting items for the samples and determines the size of the sample. For the purpose of this study, Simple Random Sampling, which belongs to the Probability Random Sampling Design, was chosen.

SAMPLING SIZE: Samples of 200 employees were approached by the researchers for collecting the data.

SAMPLING TECHNIQUE: The simple random sampling technique is used. 3.9 APPROACH: A questionnaire was prepared to gather the information that was need from the customers. The information regarding customer satisfaction towards southern center. auto

3.10 SSATISTICAL TOOLS:      ANOVAs analysis. Correlation co-efficient. Chi-square analysis. Rank correlation. Percentage Analysis

1. ANNOVA ANALYSIS: Annova analysis refers to special kind of ratio. This method is used in making comparison between two or more series of data. Annova is used to describe relationship. Annova can also be used to compare the relative terms, the distribution of two or more series of data.    

2. PERCENTAGE ANALYSIS Percentage analysis is the method to represent raw streams of data as a percentage (a part in 100 - percent) for better understanding of collected data.

3. RANK CORRELATION In statistics, a rank correlation is the relationship between different rankings of the same set of items. A rank correlation coefficient measures the degree of similarity between two rankings, and can be used to assess its significance

4. CORRELATION COEFFICIENT A statistical measure of the interdependence of two or more random variables. Fundamentally, the value indicates how much of a change in one variable is explained by a change in another. Used in portfolio analysis and modeling. zXi = [Xi - mean(X)]/std(X) ; zYi = [Yi - mean(Y)]/std(Y)

rX,Y = sum of [zXi * zYi]/(n-1), where n is the sample size

4. DATA ANALYSIS AND INTERPRETATION

The process by which sense and meaning are made of the data gathered in qualitative research, and by which the emergent knowledge is applied to clients' problems. This data often takes the form of records of group discussions and interviews, but is not limited to this. Through processes of revisiting and immersion in the data, and through complex activities of structuring, re-framing or otherwise exploring it, the researcher looks for patterns and insights relevant to the key research issues and uses these to address the client's brief. Once necessary information has been collected through observation or survey or experiment, the following steps are to be taken. 1 Editing the data Information may have been noted in haste and now required to be deciphered. Data should be edited before being presented as information to ensure that figures or words are accurate. Editing can be done manually or with computer or both depending upon the medium, whether paper or electronic. The editing is done on two levels- micro and macro. In micro-editing, the basic records are corrected. Usually, all records are securitized one by one for apparent mistakes. The intent is to determine consistency of the data. For example, at one place the distances may be in miles while in another place these may be in km. Or there may be obvious mistake like showing a distance of 100 km where it should be only 10 km or less. On macro level, aggregates are compared with data from other surveys or files or earlier versions of the same data. This is done to determine compatibility. For example, one survey has estimated total number of residents in a sector at 2,000. In another survey of family size, the total number of residents workout to be 2,500. Obviously, one of the

estimates is wrong. In case, the figure of 2,000 was considered correct because of the double-check, the second would have to be reviewed for mistakes in totaling or multiplication.

Several types of data edits are available. In validity edits, it is ensured that specified units of measures (like kgs, liters or sq. Meters) are written. In range edit, one would observe that the values are within pre-established or common sense limits. Similarly, there are edits for duplications, consistency and history.

On the other hand, there are data errors such as (i) unasked questions, (ii) unrecorded answers and (iii) inappropriate responses.

Sometimes, a researcher is confronted with a exceptional but true figure like a very unusual temperature of 90 F (34.4 C). This is ―unrepresentative‖ or ―outlying‖ observations in a data set. What should we do about the ―outliers‖ in a sample? ―Should such data be deleted?‖ is for the researcher to decide. 2 Handling blank response If more than 25% is left blank, discard the questionnaire. In other cases, only delete the particular question. Sometime, a mid-point value is assigned so as not to distort the average. 3 Coding In data collection process, the final phase is quantification of the qualitative data. It is transformation of answers into a format that computer can understand.

Alpha-numeric codes are used to covert responses such as good and bad, poor or strong. Data are transferred, if necessary, to coding sheets, responses to negative worded questions are reversed to conform to the same direction. Coding is a ―systematic way in which to condense extensive data sets into smaller analyzable units through the creation of categories and concepts derived from the data.‖ It is the ―process by which verbal data are converted into variables and categories of variables using numbers, so that the data can be entered into computers for analysis.‖

CODING THE DATA 4. Categorizing To categorize data, the researcher puts them into categories or classes or segments which are mutually exclusive. Examples are gender, age, religion etc. Nominal scales are used for this purpose. Category will be determined by the query. Is it about income levels, is it about education or customs or habits? The categories are accordingly drawn and item listed in a table. 5 Entering Data Technology had made life easy. Data can be collected on scanner answer sheet which enable a researcher to enter them directly into computer file. In other cases, raw data would be manually entered into computer as data file. Here some software like SPSS data editor can be used to enter, edit and view the contents. It is easy to add, change or delete values after the data has been entered.

Data Analysis There are three objectives of the data analysis:    Getting a feel of the data, validity and reliability and testing the hypotheses of the investigation.

1. Feel of the Data Lists or statements are summarized to get a feel of the data. Descriptive statistics helps reduce the large data into meaning full indicators showing central tendencies and spread. Three measures of central tendency are commonly used in statistical analysis – the mode, the medium and the mean. Each measure is designed to represent a typical score. The choice depends upon the shape of the distribution (whether normal or skewed) and the variable‘s level of measurements (nominal, ordinal or interval)

Averages etc do not tell us everything. At times, it could be misleading. Income per capital of Brunei is US$ 53,1000. One tends to feel that there would be hardly any poor person. But there are people below poverty level even in such a rich country. Such information is disclosed by dispersion or deviation or spread. These measures inform us how wealth is distributed in the country. There are super rich and very poor people which is indicated by the spread or standard deviation. FEEL OF THE DATA 2. Reliability & Validity The data should be both reliable and valid. While reliability shows trustworthiness and dependability, validity shows appropriateness or authenticity or suitability or genuineness.

SAMPLE PROBLEM USING A SAMPLING DISTRIBUTION

3. Hypotheses Testing Once cleared of any doubt as to reliability and validity, the researcher can go ahead in testing the hypotheses already formed for the report. Data do not, however, ―speak for themselves‖. They reveal what the analyst can detect. So when the new investigator, attempting to collect this reward, finds

him/herself alone with the dataset and no idea how to proceed, the feeling may be one more of anxiety than of eager anticipation. As with most other aspects of a study, analysis and interpretation of the study should relate to the study objectives and research questions. One often-helpful strategy is to begin by imagining or even outlining the manuscript(s) to be written from the data. The usual analysis approach is to begin with descriptive analyses, to explore and gain a ―feel‖ for the data. The analyst then turns to address specific questions from the study aims or hypotheses, from findings and questions from studies reported in the literature, and from patterns suggested by the descriptive analyses. Before analysis begins in earnest, though, a considerable amount of preparatory work must usually be carried out. The analysis refers to the computations of the certain measures along with searching for patterns of the relationship that exits among data-groups

GENDER
GENDER Male Female Total No of respondent 70 130 200 Percentage 35 65 100

35% 100% 65%
Male Female Total

INTERPRETATION
Out of 200 respondent 65% respondent were female and 35% respondent were male.

HOW LONG YOU USING THE VIDEOCON TELECOM
USING VIDEOCON 1-2 month 2-4 month 4-6 month More than 6 month total NO OF RESPONDENT 30 30 100 40 200 PERCENTAGE 15% 15% 50% 20% 100%

HOW LONG YOU USEING THE VIDEOCON TELECOM
250 200 200

150

RESPONDENTS

100 100 50 50 30 15 0 1-2 month 2-4 month 4-6 month More than 6 month 30 15

100

no of respondents no of percentage

40 20

total

PERIODS

INTERPRETATION
Out of 200 respondent 50% of respondents were using the videocon telecom more than 6 month were as 15% of respondents were using the videocon from 1-2 month and 2-4 month.

HOW DO YOU COME TO KNOW TO ABOUT THE PLAN AND BENEFITS OF VIDEOCON TELECOM
COME TO KNOW NO OF RESPONDENT ABOUT VIDEOCON By TV By newspaper By friends By internet Other total 30 30 50 50 40 200 PERCENTAGE 15 15 25 25 20 100

HOW DO YOU COME TO KNOW TO ABOUT THE PLAN AND BENEFITS OF VIDEOCON TELECOM
200
200

RESPONDENTS

150

100
100

50
50 0

50 25 25

30 15

30 15

40

no of respondents

20

MEDIA

INTERPRETATION
Out of 200 respondents 25% respondents were come to know about the videocon telecom by friends and by interent were as 15% of respondents were come to know about the videocon telecom by TV abd by newspaper.

YOU LIKE THE QUALITY AND SERVICE OF THE VIDEOCON TELECOM
QUALITY SERVICE PRODUCT Yes No Total AND OF NO OF RESPONDENT PERCENTAGE

110 90 200

55 40 100

YOU LIKE THE QUALITY AND SERVICE OF THE VIDEOCON TELECOM

55% 100%
Yes No Total

40%

INTERPERATION Out of 200 respondents 55% of respondents like the quality and services of the videocon were as 40% of respondents don‘t like the quality and services of the videocon.

YOU ARE COMFORTABLE WITH SERVICE OF THE VODEOCON TELECOM COMFORTABLE WITH NO OF RESPONDENT SERVICE Yes No total 130 70 200 PERCENTAGE 65 35 100

YOU ARE COMFORTABLE WITH SERVICE OF THE VODEOCON TELECOM

65% 100% 35%
Yes No total

INTERPRETATION
Out of 200 respondents 65% of respondents were comfortable with the videocon services were as 35% of respondents were not comfortable with the videocon services.

ON WHAT SERVICES DO YOU PURCHASE THE VIDEOCON TELECOM WHAT SERVICE DO YOU PURCHASE High Medium Low Total NO OF RESPONDENT 90 80 30 200 PERCENTAGE 45 40 15 100

ON WHAT SERVICES DO YOU PURCHASE THE VIDEOCON TELECOM

200

200

RESPONDENTS

150

100
100 50 0 High Medium Low Total

90 45 80 40 30 15
no of respondents no of percentage

SERVICES

INTERPRETATION Out of 200 respondents 45% of respondents purchase the Videocon at high services were as 15% of respondents purchases the Videocon at low level services,

IN VIDEOCON WHICH RATE CUTTER DO YOU PREFER
RATE CUTTER YOU PREFER 25 30 59 96 Total NO OF RESPONDENT 20 80 10 90 200 PERCENTAGE 10 40 5 45 100

IN VIDEOCON WHICH RATE CUTTER DO YOU PREFER
200
200 180 160

RESPONDENTS

140 120 100 80 60 40 20 0 25 30 59 96 Total

80 40 20 10 10 5

90 45

100
no of respondents no of percentage

RATE CUTTER

INTERPRETATION Out of 200 respondents 45% pf respondents were using the 96 rate cutter were as 5% of respondents were using the 59 rate cutter.

TIME WHEN YOU MAKE PURCHASE IN VIDEOCON TELECOM TIME YOU MAKE PURCHASE During the discount When u plan for changing the sim When need arises Just like that to have additional sim Others specify Total NO OF RESPONDENTS 60 30 40 40 30 200 PERCENTAGE 30 15 20 20 15 100

TIME WHEN YOU MAKE PURCHASE IN VIDEOCON TELECOM

RESPONDENTS

200

200 100 30 15 40 20 40 20 15 30
no of respondents no of percentage

100

60 30

0

TIME OF PURCHASING INTERPRETATION Out of 200 respondents 20% of respondents purchase the Videocon telecom when there need arises and just like that to have additional sim.

YOU THINK THE PRICES ARE AFFORDABLE PRICE ARE AFFORDABLE Yes No ok Total NO OF RESPONDENTS 100 70 30 200 PERCENTAGE 50 35 15 100

YOU THINK THE PRICES ARE AFFORDABLE

50% 100% 35% 15%
Yes No ok Total

INTERPRETATION Out of 200 respondents, 50% said that the price is affordable were as 15% said that its ok for the price affordable

YOU PREPARE NETWORK ON WHICH BASIC FACTOR PREPARE NETWORK tariff signal price Value added service Total NO OF RESPONDENT 90 30 30 50 200 PERCENTAGE 45 15 15 25 100

YOU PREPARE NETWORK ON WHICH BASIC FACTOR 200
200

RESPONDENTS

150 100 50 0 tariff signal price Value added service Total

90 45 50 30 15 30 15 25

100
no of respondents no of percentage

SERVICES

INTERPRETATION Out of 200 respondents 45% of respondents prepare on the basic of traiff and 15% of respondents prepare on the basic of single and price

HOW OFTEN YOU DO THE MOBILE RECHARGE RECHARGE YOUR MOBILE 0-5 days 5-10 days 10-15 days 15-20 days More than 20 days total NO OF RESPONDENT 20 50 10 70 50 200 PERCENTAGE 10 25 5 35 25 100

HOW OFTEN YOU DO THE MOBILE RECHARGE

200

RESPONDENTS

200 100 20 10 50 25 10
0-5 days 5-10 days 10-15 days 15-20 days

150 100 50 0

70 35 5

50 25

no of respondents no of percentage

More than 20 days

total

RECHARGING DAYS

INTERPRETATION out of 200 respondents 35% of respondents were doing the mobile recharge within 15-20 days were as 5% respondents were doing the mobile recharge within 10-15 days

PRODUCT SHOULD IMPROVE IN PRODUCT SHOULD IMPROVE IN Quality Offers Network Service Other total NO OF RESPONDENTS 30 60 40 30 40 200 PERCENTAGE 15 30 20 15 20 100

PRODUCT SHOULD IMPROVE IN

200
200

RESPONDENTS

150

100
100

60
50 0

30 15

30

40 20

30 15

40 20

no of respondents no of percentage

IMPROVE IN PRODUCT

INTERPRETATION Out of 200 respondents 30% of respondents said to improve the poduct in offers basic were as 15% of rfespondents said to improve the product in service and quality basic.

CHANGING OFFERS FREQUENTLY CHANGING OFFERS NO OF RESPONDENTS FREQUENTLY Yes No total 120 80 200 PERCENTAGE 60 40 100

CHANGING OFFERS FREQUENTLY

60% 100%
Yes

40%

No total

INTERPRETATION Out of 200 respondents 60% said yes to the offers changing frequently were as 40% of respondents said no to th offers changing frequently.

SATISFIED WITH THE PRODUCT SATISFIED PRODUCT Yes No total WITH NO OF RESPONDENTS 120 80 200 PERCENTAGE 60 40 100

SATISFIED WITH PRODUCT

30% 50%
Yes No

20%

total

Name: Gender: Male [ ] Female [ ]

1) Are you Videocon telecom customer? [ ] Yes 2) Do you text mode or voice mode. Text mode: Voice mode: Both: [ ] yes [ ] yes [ ] [ ] no [ ] no [ ] No

3) How long you using Videocon telecom [ ] 1-2 months [ ] 4-6 months [ ] 2-4 months [ ] more than 6 months

4) How do you come to know about the plan and benefits of Videocon? [ ] By TV [ ] By friends [ ] By other 5) Do you like the quality and service of the product? [ ] Yes [ ] No 6) Are you comfortable with the Videocon services? [ ] Yes [ ] No 7) On what service do you purchase? [ ] High [ ] Medium [ ] Low 8) In Videocon which rate cutter do you prefer [ ] 25 [ ] 59 [ ] 30 [ ] 96 [ ] By newspaper [ ] By internet

9) The time when you make purchase in Videocon telecom. [ ] During the discount [ ] When u plan for changing the sim [ ] When need arises [ ] Just like that to have additional sim [ ] Others specify 10) Do you think the prices are affordable?

[ ] Yes [ ] Ok

[ ] No

11) You prepare net work on the basis of which factor [ ] tariff [ ] price [ ] signal [ ] value added service

12) Rank the preference of Videocon telecom. (Rank from 1-5) a. Brand name [ ] b. Dealers of Videocon telecom [ ] c. Customer service [ ] d. Quality [ ] e. Others [ ] 13) How often do you recharge your mobile account [ ] 0-5 days [ ] 10-15 days [ ] more than 20 days [ ] 5-10 days [ ] 15-20 days

14) Where do you think Videocon telecom product should improve on? [ ] Quality [ ] Offers [ ] Net Work [ ] Service [ ] Others 15) Do you think Videocon telecom keeps changing offers frequently? [ ] Yes [ ] No 16) Are you satisfied with the product? [ ] Yes [ ] No 17) Why you like to use the Videocon telecom.

18) Do you refer your family members to buy Videocon telecom [ ] yes [ ] no

19) Give the suggestions for the improvement of the product.

9. REFERENCES IBEF report 2007-08 : Telecommunication - MARKET & OPPORTUNITIES. Cellular Statistics – Cellular Operator Association of India IAMAI & eTechnology Group@IMRB: MOBILE VALUE ADDED SERVICES IN INDIA- A Report. Telenor Entering India: Investment Update Voice and Data(May 2009): Mobile Number Portability - Poaching with Portability. Business India : Telecom Takeover, Bharti-MTN deal Moneycontrol.com: Idea Spice deal Business Standard: Vodafone Hutch deal IntoMobile: India‘s 3GLicense Plans Updated