CONTENTS
Chapter Page
Particulars
No. No.
ABSTRACT (ENGLISH)
ABSTRACT (TAMIL)
LIST OF TABLES
LIST OF FIGURES
1 INTRODUCTION
1.1 Telecommunication
1.2 Indian Telecommunication Industry
1.3 Cellular phones & Importance
1.4 Company Profile
1.5 About The Project
2 AIM, OBJECTIVES & LIMITATIONS
2.1 Aim of the Project
2.2 Objectives
2.3 Minor Objectives
2.4 Limitations
3 RESEARCH METHODOLOGY
3.1 The Research Design
3.2 Data Sources
3.3 Questionnaire Design
3.4 Pre-Testing, Revision, Final Draft
3.5 Sampling Technique
3.6 Test Used
4 ANALYSIS & INTERPRETATION
4.1 Analysis of Data
4.2 Chi Square Analysis
4.3 Factor Analysis
4.4 Kruskal Wallis Test
4.5 Wilcoxon Signed Rank Test
5 FINDINGS & SUGGESTIONS
5.1 Findings
5.2 Suggestions
6 CONCLUSION
APPENDIX 1
APPENDIX 2
BIBILIOGRAPHY
REFERENCES
LIST OF TABLES
LIST OF TABLES
Tabl
Page
e Particulars
No.
No.
4.1.1 Profile of the Respondents
4.1.2 Table showing the reasons for selection of AIRTEL service
4.1.3 Table showing the reasons for selection of AIRCEL service
4.1.4 Table showing the reasons for selection of BPL service
4.1.5 Table showing the reasons for selection of BSNL service
4.1.6 Table showing the reasons for selection of Reliance service
4.1.7 Table showing the service providers and the schemes selected by the
customers
4.1.8 Table showing why people do not prefer BSNL
4.1.9 Table showing the overall ranking obtained by various service providers
in terms of various attributes
4.2.1 Table showing the relationship between income level and the type of
scheme selected by AIRTEL customers
4.2.2 Table showing the relationship between income level and the type of
scheme selected by AIRCEL customers
4.2.3 Table showing the relationship between income level and the type of
scheme selected by BPL customers
4.2.4 Table showing the relationship between income level and the type of
scheme selected by BSNL customers
4.2.5 Table showing the relationship between income level and the type of
scheme selected by Reliance customers
4.2.6 Table showing the relationship between the service providers and the
corresponding customer satisfaction level
4.2.7 Table showing the relationship between the service providers and the
gender of the respondents
4.2.8 Table showing the relationship between the service providers and the age of
he respondents
4.2.9 Table showing the relationship between the service providers and the
occupation of the respondents
4.2.1 Table showing the relationship between the service providers and the income
0 level of the respondents
4.2.1 Table showing the relationship between gender and the type of scheme
1 selected by Airtel customers
4.2.1 Table showing the relationship between gender and the type of scheme
2 selected by Aircel customers
4.2.1 Table showing the relationship between gender and the type of scheme
3 selected by BPL customers
4.2.1 Table showing the relationship between gender and the type of scheme
4 selected by BSNL customers
4.2.1 Table showing the relationship between gender and the type of scheme
5 selected by Reliance customers
4.3.1 Table showing the factor analysis-rotated component matrix
4.4.1 Table showing the Kruskal Wallis Test for ranking done by BSNL customers
4.4.2 Table showing the K test results performed on the ranking of Airtel, Aircel, Bpl
& Reliance customers over other service providers.
4.5.1 Table showing the Wilcoxon Signed Rank Test calculation for the other
service providers
4.6.1 Table showing the income level of the respondents and the satisfaction level
of the BSNL customers
LIST OF FIGURES
LIST OF FIGURES
Tabl
Page
e Particulars
No.
No.
1.1 Market share of mobile services in India
4.1.1 Chart showing the reasons for choosing Airtel service
4.1.2 Chart showing the reasons for choosing Aircel service
4.1.3 Chart showing the reasons for choosing BPL service
4.1.4 Chart showing the reasons for choosing BSNL service
4.1.5 Chart showing the reasons for choosing Reliance service
4.1.6 Chart showing the service providers and the percentage of Prepaid &
Postpaid customers
4.1.7 Chart showing the reasons for not choosing BSNL service
4.2.1 Chart showing the service providers and the gender of the respondents
4.2.2 Chart showing the service providers and the age group of the
respondents
4.2.3 Chart showing the service providers and the occupation of the
respondents
4.2.4 Chart showing the service providers and the income level of the
respondents
INTRODUCTION
CHAPTER 1
INTRODUCTION
1.1. TELECOMMUNICATION
Telecommunications is the communication of information over a distance. The
term comes from a contraction of the Greek tele, meaning 'far', and communications,
meaning "n: the discipline that studies the principles of transmitting information and the
methods by which it is delivered (as print or radio or television etc.)". The world
becomes more and more reliant on telecommunication technologies for commerce,
communication and access to information.
1.2. INDIAN TELECOMMUNICATION INDUSTRY
The Indian telecommunications industry has experienced high growth in recent
years. The Telecom Regulatory Authority of India or TRAI (established in the year 1997)
is the independent regulator established by the Government of India to regulate the
telecommunications business in India, to lay down the standards of quality ,and to issue
telecom tariff orders[1].
1.2.1. Regulatory Framework
The government has liberalized the telecommunication services sector and
opened it for private participation. The regulatory norms for certain telecommunication
services are as follows:
o Mobile services: Four licenses have been awarded in each of the 22-telecom
circles. Three licenses have been awarded to private service providers and one
to the government operator. The private licenses have been issued based on a
bidding process.
o Fixed line Services: There is no restriction on the number of players in the fixed
line segment. The licenses have been awarded based on a fixed entry fee,
issued on a non-exclusive basis for a period of 10 years, extendable by 10 years
at a time.
o National & International Long Distance Services: There is no restriction on the
number of players in the long distance markets. Licenses are issued based on
an entry fee, on a non-exclusive basis for 10 years, extendable by 10 years at a
time.
o Internet Services: There is no restriction on the number of players in the ISP
segment.
1.2.3. Industry Structure
The present operational regulatory structure of telecommunications services
industry in India is set forth below:
Ministry of Communications
Telecom Commission DOT TRAI &TDS
(Policy maker & (Regulation &
(Policy Role)
Licensor) Adjudication)
Private Private Other
MTNL Mobile Fixed line BSNL VSNL Private
Licensees Licensees Licensees
1.2.4. Factors responsible for the growth of telecommunication industry
The Indian telecommunications market is under penetrated and hence offers
tremendous growth potential. The mobile and fixed line penetration levels in India are
lower than those in most developed countries in the world. The following factors are
expected to contribute to the growth of the Indian Telecommunications Industry:
o Economic Growth and continued development of the Indian Economy
o Higher growth rate of service oriented sector, leading to an increased demand for
telecommunication services;
o Increased use of Information Technology and Internet, leading to a large demand
for data communication services;
o Declining tariff, reduced equipment cost and reduced handset costs over time.
o Increasing customer choice and demand for value added services.
o Increasing globalization of the Indian Business, leading to increase international
voice & data traffic.
1.3. CELLULAR PHONES & ITS IMPORTANCE
A technological triumph in telecommunication industry is the cell phone, a radio-
linked device that is taking the world by storm. Over the last few years, mobile phones
have become a more and more widespread means of communication. They have
become a part of everyday life with ever more people enjoying the service and extra
freedom they provide.
The widespread use of mobile phone has increased over the past decade to the
point of becoming an essential part of business, commerce and society. Mobile phones
are convenient because they are small and mobile. To own one often confers status
and power. Most important, mobile phones give access to the world anytime, anywhere
and have come to provide great assistance to users. Mobile phones are also
economically priced to be affordable by the majority. Technological improvements are
continuing to place mobile phones on the forefront of communication tools. They let the
users to embrace constant communication. Their use of mobile phone is diverse, and
depends on design and usability.
Cell phones were used —not just talking on them but also playing games, getting
information off the Internet, sending short text messages, listening music, setting
alarms, to organize work and much more.
1.3.1. Indian Cellular market
After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular
market witnessed a surge in cellular services. By 2005, there were a total of 12 players
in the market with the five major players being Bharti Tele-Ventures Limited (Bharti),
Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular
limited (Idea) and Reliance India Mobile (RIM).
All the players except RIM offered services based on the Global System for
Mobile (GSM) technology. RIM provided services based on Code Division Multiple
Access (CDMA) technology. As competition in the telecom arena intensified; service
providers took new initiatives to woo customers.
The market shares of major players are shown in the figure below:
FIG [Link] share of mobile services in India
1.3.2. India-The fastest growing mobile markets in the world
India has become one of the fastest growing mobile markets in the world. The
mobile services were commercially launched in August 1995 in India. In the initial 5-6
years the average monthly subscribers additions were around 0.05 to 0.1 million only
and the total mobile subscribers base in December 2002 stood at 10.5 millions.
However, after the number of proactive initiatives taken by regulator and licensor, the
monthly mobile subscriber additions increased to around 2 million per month in the year
2003-04 and 2004-05. For the year 2005-06, the first 9 months have seen an addition of
26 million mobile subscribers, which translates into average addition of 3 million
subscribers monthly. The additions in the month of December 2005 alone have touched
around 4.5 million [2].
At the time of launch of GSM cellular service in the country there were a number of
impediments in the form of high handset costs, exorbitant tariffs, high initial
entry/activation charges, Mobile Party Pays (MPP) regime etc. With the passage of time
these initial barriers have almost disappeared as on date [2].
Tariff: The mobile tariffs in India have also become lowest in the world. A new mobile
connection can be activated with a monthly commitment of Rs.200 to Rs.250. The
average mobile tariffs prevalent in India are much lower than the rates that are
prevalent in different countries in the neighborhood. In India the approximate per minute
cellular tariff is Rs.1 where as its Rs.1.50 in China, Rs.3 in Bangladesh and Nepal,
Rs.3.80 in Pakistan and Rs.5 in Srilanka [2].
Handset Sales: The data pertaining to sale of handsets in India provided by Indian
Cellular Association (ICA) for the last three years is as under:-
* 2003: 19 Million
* 2004: 24 Million
* 2005: 32 Million
The above data also is in synchronization, which supports the high growth of mobile
subscribers in last 3 years. With the monthly additions of about 5 million subscribers,
the sale of handsets is likely to pick up substantially in 2006 and may reach somewhere
in the range of 60-65 millions per annum. The replacement market in India is mentioned
to be about 10% of the total subscriber base [2].
Mobile telephony services are rapidly expanding and have contributed
approximately 91% to new subscriber additions in December 2005. The segment’s
subscriber base grew a record 6.24% month on month (mom) to 75.92mn. Of the total
subscriber’s added, almost 71% subscribers belonged to the GSM segment and the rest
were CDMA segment. This strong growth is largely attributed to the lifetime validity
cards launched by all major operators.
1.4. COMPANY PROFILE (BSNL)
On October 1, 2000 the Department of Telecom Operations, Government of India
became a corporation and was christened Bharat Sanchar Nigam Limited (BSNL).
Today, BSNL is the No. 1 Telecommunications Company and the largest Public Sector
Undertaking of India with authorized share capital of Rs.179 billion million and net worth
of Rs.646 billion. It has a network of over 45 million lines covering 5000 towns with over
35 million telephone connections.
With latest digital switching technology like OCB,EWSD,AXE-10,FETEX,NEC
etc. and widespread transmission network including SDH system upto 2.5 gbps,
DWDM system upto 80 gbps,Web telephony,DIAS,VPN, Broadband and more than
400,000 data customers , BSNL continues to serve this great nation .
Its responsibilities include improvement of the already impeccable quality of
telecom services, expansion of telecom network, introduction of new telecom services in
all villages and instilling confidence among its customers.
BSNL has managed to shoulder these responsibilities remarkably and deftly.
Today with over 45 million line capacity, 99.9% of its exchanges digital, nation wide
Network management & surveillance system (NMSS) to control telecom traffic and
over 4,00,000 route kms of OFC network, Bharat Sanchar Nigam Ltd is a name to
reckon with in the world of connectivity. Along with its vast customer base, BSNL's
financial and asset bases too are vast and strong. Consider the figures, as they speak
volumes on BSNL’s standing:
o The telephone infrastructure alone is worth about Rs.1,00,000 crore (US $ 22.74
billion)
o Turnover of Rs.31,400 crore ( US $ 7.14 billion)
BSNL's nationwide coverage and reach, comprehensive range of telecom services and
a penchant for excellence; have provided the ingredients for restructuring India for a
bright future. Today, BSNL is most trusted Telecom Brand of India.
When it comes to connecting the four corners of the nation, and much beyond,
one solitary name lies embedded at the pinnacle - BSNL. A company that has gone
past the number games and the quest to attain the position of a leader. It is working
round the clock to take India into the future by providing world class telecom services
for people of India. BSNL is India's no. 1 Telecom Service provider and most trusted
Telecom brand of the Nation. Driven by the very best of telecom technology from
chosen global leaders, it connects each inch of the nation to the infinite corners of the
globe, to enable the customer to step into tomorrow.
Here is an overview of the World Class services offered by the BSNL:
1. Basic telephone services
2. Dataone broadband
3. SancharNet internet
4. Integrated Service Digital Network Service (ISDN)
5. Intelligent Network Service
6. I-NET
7. Leased lines and datacom
8. Cellular mobile service
9. Tarang-Wireless in local loop
1.4.1. Cellular mobile service from BSNL
Bharat Sanchar Nigam Limited on October 19, 2002, launched its much-awaited
cellular services CellOne. BSNL is the first in India to launch Cellular Service,
Nationwide at one time. India’s fastest growing cellular service , along with
(pre-paid service) has brought cellular telephony to the masses, through
innovative technology and strategic pricing.
This ambitious service uses state-of-the-art GSM technology to attain global
excellence and leadership in business. BSNL’s entry into this sector has brought GSM
cellular service at an affordable cost to the common man. All serving a single objective,
to provide better communication to millions across India. Customers have reposed
tremendous faith in BSNL and it has enrolled over 30 Lakh cellular customers within ten
months of launch of Cellular service, an unprecedented mark in Indian Cellular Market.
1.5. ABOUT THE PROJECT
BSNL cellular mobile service division in India faces a very tough competition
from the various private players. Even though BSNL cellular service is doing extremely
well within a short time of its launch when compared to other players, it still has some
drawbacks.
BSNL cellular service in the Erode district competes with players like Airtel,
Aircel, BPL, and Reliance, Tata Indicom. With so many cellular network services in the
fray, competition is expected to be tough as the companies scramble to live up to
customer expectations. Continuous improvements are being made by the management
to capture a very high market share. Various promotional schemes are being introduced
by BSNL to out beat the competition but still could not rise up to the customer
expectations.
BSNL cellular service division in Erode would like to analyze the competition it
faces from other players, to know the weak areas and to identify the unique selling
proposition of its services.
In a nutshell the study proposes,
1. To assess the present level of service provided by BSNL.
2. To identify areas which require attention by BSNL for improving its services.
3. To evaluate the strength and weakness of its competitors, to develop a USP for its
services.
To address all these issues, so that the management can take appropriate
measures, a research has been called to provide information on the areas where BSNL
needs attention.