6190991 winter-project-of-anurag-sahu-mba-marketing-iper-bhopal

A

PROJECT REPORT
on

COMPARITIVE STUDY OF THE LIFETIME PLANS OF THE CELLULAR
COMPANIES IN BHOPAL

FOR THE PARTIAL FULFILLMENT OF
THE REQUIREMENT
OF
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ANURAG SAHU
MBA II SEMESTER

GUIDED BY
Mr. OWAIS AHMED QURESHI

INSTITUTE OF PROFESSIONAL EDUCATION
AND RESEARCH
(BARKATULLAH UNIVERSITY, BHOPAL)

2007-2009

ACKNOWLEDGEMENT

This Project has been made possible through the direct and indirect Co-operation
of various persons, who have inspired me at every step of my work. It is a matter of
pride for me to acknowledge my profound gratitude to my respected Director Dr.
J.P. Sahu who always facilitates me in gaining practical knowledge.

I am very much obliged and thankful to my esteemed Project Guide
Mr. OWAIS AHMED QURESHI for his valuable Cooperation and Guidance.

And above all, I am beholden to my Parents and other family members for their
blessing and encouragement in completing this task.

ANURAG SAHU

PREFACE

The research provides an opportunity to a student to demonstrate application of
his/her knowledge, skill and competencies required during the technical session.
Research also helps the student to devote his/her skill to analyze the problem to
suggest alternative solutions, to evaluate them and to provide feasible
recommendations on the provided data.

The research is on the topic of “COMPARITIVE STUDY OF THE LIFETIME
PLANS OF CELLULAR OPERATORS IN BHOPAL”. Although I have tried
my level best to prepare this report an error free report every effort has been made
to offer the most authenticate position with accuracy.

DECLARATION

I here by declare that the following documented Project Report titled “COMPARITIVE
STUDY OF THE LIFETIME PLANS OF CELLULAR OPERATORS IN BHOPAL” is an
authentic work done by me.

The Study was undertaken as a part of the course curriculum of MBA Full Time Program
of Barkatullah University, Bhopal.

ANURAG SAHU

CONTENTS
CHAPTERS

CHAPTER-1

• INTRODUCTION
• OBJECTIVES OF THE STUDY

CHAPTER-2

• INTRODUCTION OF TELECOM SECTOR
• INTRODUCTION TO CELLULAR COMPANIES

CHAPTER-3

• RESEARCH METHODOLOGY
• RESEARCH DESIGN
• SAMPLE DESIGN
• LIMITATIONS OF THE STUDY

CHATPER-4

• DATA ANALYSIS AND INTERPRETATION

CHAPTER-5

• OBSERVATION & FINDINGS
• CONCLUSIONS
• SUGGESTIONS

BIBLOGRAPHY

ANNEXURE

INTRODUCTION

Comparative research, simply put, is the act of comparing two or more things with a view
to discovering something about one or all of the things being compared.
This technique is often utilizes multiple disciplines in one study.

When it comes to method, the majority agreement is that there is no methodology peculiar
to comparative research. The multidisciplinary approach is good for the flexibility it offers,
yet comparative programs do have a case to answer against the call that their research
lacks a “seamless whole”.

There are certainly methods far more common than others in comparative studies,
however. Quantitative analysis is much more frequently perused than qualitative, and this
is seen in the majority of comparative studies can be use quantitative data.

The general method of comparing things is the same for comparative research as it is in
our everyday practice of comparisons. Like cases are treated alike, and cases are treated
differently; the extent of difference determines how differently cases are treated. The point
here is that if one is able to sufficiently distinguish two cases, comparative research
conclusions will not be very helpful.

Secondary analysis of quantitative data is relatively widespread in comparative research,
undoubtedly in part because of the cost of obtaining primary data for such large things as
a country’s policy environment. A typical method of comparing welfare state is to take
balance their levels of spending on social welfare.

In line with how a lot of theorizing has gone in the last century, comparative research does
not tend to investigate ‘grand theories’ such as Marxism. It instead occupies itself with
middle-range theories – theories that do not purport to describe our social system in its
entirely, but a subset of it. A good example of this is the common research programs that
looks for differences between two or more social systems, then look at these differences
in relation to some other variable coexisting in those societies to see if it is related. The
classic cases of this is Esping-Anderson’s research on social welfare systems, and
compared them based on there levels of deco modification of social welfare goods. He
found that he was able to class welfare states in four types, based on their deco
modification. She further theorized from this that deco modification was based on a
combination of class collisions and mobilization, and regime legacy. Here Esping-
Anderson is using comparative research: he takes many western countries and compared
their level of deco modification, then develops a theory of the divergence based on his
findings.

Comparative research is a methodology in the social sciences that aims to make
comparisons across different countries and cultures. A major problem in comparative
research is that the data sets in different countries may not use the same categories, or
define categories differently.

OBJECTIVES

1. To find out the perception of the general people towards the land line &

mobile phone.
2. To find out the hidden information in lifetime plans of cellular services.

3. To find out the consumer satisfaction towards the lifetime plans.

Telecom Industry in India

The telecom industry is one of the fastest growing industries in India. India has nearly
200 million telephone lines making it the third largest network in the world after China
and USA. With a growth rate of 45%, Indian telecom industry has the highest growth
rate in the world.

- Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by
the growth in demand in countries like India and China.
- India‘s mobile phone subscriber base is growing at a rate of 82.2%.
- China is the biggest market in Asia Pacific with a subscriber base of 48% of the total
subscribers in Asia Pacific. Compared to that India ’s share in Asia Pacific Mobile
Phone
market is 6.4%. Considering the fact that India and China have almost comparable
populations, India’s low mobile penetration offers huge scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the government near
Calcutta (seat of British power). Telephone services were introduced in India in 1881. In
1883 telephone services were merged with the postal system. Indian Radio Telegraph
Company (IRT) was formed in 1923. After independence in 1947, all the foreign
telecommunication companies were nationalized to form the Posts, Telephone and
Telegraph (PTT), a monopoly run by the government's Ministry of Communications.
Telecom sector was considered as a strategic service and the government considered it
best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the
private sector was allowed in telecommunications equipment manufacturing. In 1985,
Department of Telecommunications (DOT) was established. It was an exclusive provider
of domestic and long-distance service that would be its own regulator (separate from the
postal system). In 1986, two wholly government-owned companies were created: the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the
economy. Also, examples of telecom revolution in many other countries, which resulted
in better quality of service and lower tariffs, led Indian policy makers to initiate a change
process finally resulting in opening up of telecom services sector for the private sector.

National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive
roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory
Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate
the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and
cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service
Provider (FSPs), and Cellular Services. Fixed line services consist of basic services,
national or domestic long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic
services. Private sector services are presently available in selective urban areas, and
collectively account for less than 5 per cent of subscriptions. However, private services
focus on the business/corporate sector, and offer reliable, high- end services, such as
leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is
dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is
dominated by Reliance and Tata Indicom. Opening up of international and domestic long
distance telephony services are the major growth drivers for cellular industry. Cellular
operators get substantial revenue from these services, and compensate them for
reduction in tariffs on airtime, which along with rental was the main source of revenue.
The reduction in tariffs for airtime, national long distance, international long distance,
and handset prices has driven demand.

Classification of Telecommunication services
1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)

Cellular Service

Overview
1. There are five private service operators in each area, and an incumbent state
operator. Almost 80% of the cellular subscriber base belongs to the pre-paid
segment.
2. The DoT has allowed cellular companies to buy rivals within the same
operating circle provided their combined market share did not exceed 67 per
cent. Previously, they were only allowed to buy companies outside their circle.

Growth Drivers

Opening up of international and domestic long distance telephony services
are growth drivers in the industry. Cellular operators now get substantial
revenue from these services, and compensate them for reduction in tariffs on
air time, which along with rental was the main source of revenue. The
reduction in tariffs for airtime, national long distance, international long
distance, and handset prices has driven demand.

The Key players in the Telecom Market in India

Cellular Service provider:
1. BSNL
2. Airtel
3. Vodafone
4. Idea
5. Reliance
6. Tata indicom
7. Aircel
8. Spice
9. MTNL

Subscribers

Wireless subscribers crosses 200 million mark
Tele density reaches 21.20%

The total number of telephone subscribers has reached 241.02 million at the end of
August 2007 as compared to 232.87 million in July 2007. The overall teledensity
has increased to 21.20% in August 2007 as compared to 20.52% in July 2007.
In the wireless segment, 8.31 million subscribers have been added in August 2007 while
8.06 million subscribers were added in July 2007. The total wireless subscribers (GSM,
CDMA & WLL(F)) base reaches 201.29 million at the end of August 2007.

The wireline segment subscriber base stood at 39.73 million with a decrease of 0.16
million at the end of August 2007. Circle wise wire line subscriber base of service
providers is given at following chart ..

Market Share of the telecom Company in India

INTRODUCTION
OF
CELLULAR
COMPANIES

Company Profile

INTRODUCTION

“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's
largest mobile phone and Fixed Network operators. With more than 60 million
subscriptions as of 13th February 2008.[2] It offers its mobile services under the Airtel
brand and is headed by Sunil Mittal. The company also provides telephone services and
Internet access over DSL in 14 circles. The company complements its mobile,
broadband & telephone services with national and international long distance services.
The company also has a submarine cable landing station at Chennai, which connects
the submarine cable connecting Chennai and Singapore. The company provides
reliable end-to-end data and enterprise services to the corporate customers by
leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and
mobile circles, VSATs, ISP and international bandwidth access through the gateways
and landing station.

Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand
name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone
Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance
Services and Enterprise Services (Telecommunications Consulting for corporates).

Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey
in the Channel Islands by the local telecommunications regulator the JCRA. In
September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel
with a mobile telecommunications license. In May 2007 Jersey Airtel and Guernsey
Airtel announced the launch of a relationship with Vodafone for island mobile
subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900
million dollar expansion of its mobile and fixed network.[3] In August 2007, the company
announced it will be launching a customized version of Google search engine that will
provide an 'array of services' to its broadband customers.

INTRODUCTION

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate
in 11 circles. With a customer base of over 17 million, IDEA Cellular has operations in
Delhi,Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,
Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellular's footprint
currently covers approximately 45% of India's population and over 50% of the potential
telecom-market.

As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is
the first cellular company to launch music messaging with 'Cellular Jockey', 'Background
Tones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of Mobile Email
Services.

Idea Cellular is a wireless telephony company operating in various states in India. It
initially started in 1995 as a join venture between the Tatas, Aditya Birla Group and
AT&T by merging Tata Cellular and Birla AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in
2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai),
Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (East and
West), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR).
The company has its retail outlets under the "Idea n' U" banner. The company has also
been the first to offer flexible tarrif plans for prepaid customers. It also offers GPRS
services in urban areas.

Holding

Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the
company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular
decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and
Birlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-
based mobile provider, cropped differences between the Tatas and the Birlas. This dual
holding by the Tatas also became a major reason for the delay in Idea being granted a
license to operate in Mumbai. This was because as per Department of Telecom (DOT)
license norms, one promoter could not have more than 10% stake in two companies
operating in the same circle and Tata Indicom was already operating in Mumbai when
Idea filed for its license.

The Birlas thus approached the DOT and sought its intervention, and the Tatas replied
by saying that they would exit Idea but only for a good price. On April 10, 2006, the
Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas at
Rs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was
acquired by Aditya Birla Nuvo, a company in-charge of the Birlas' new business
initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV
Birla family owned company.Currently, Birla Group holds 98.3% of the total shares of the
company.
Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan,
Himachal Pradesh and UP (East) to make itself a pan-India player. Recently, Idea got
licenses to operate in Mumbai & Bihar. They are awaiting the spectrum from DoT.

INTRODUCTION

A DREAM COME TRUE

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man
would have access to affordable means of information and communication. Dhirubhai,
who single-handedly built India’s largest private sector company virtually from scratch,
had stated as early as 1999: “Make the tools of information and communication
available to people at an affordable cost. They will overcome the handicaps of illiteracy
and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and
wireline) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for enterprises as
well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates and
networks, truly bringing about a new way of life.

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom
and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to
National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company,
which accounts for more than 1.36 billion shares of the company.[1]Reliance Infocomm
is an Indian telecommunications company. It is the flagship company of the Reliance-
Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services
(Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance
Infocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x
technology

HISTORY

Reliance Infocomm was founded by Dhirubhai Ambani. Between 1999 to 2002 Reliance
Infocomm built 60,000 km of fibre optic backbone in India. This network was
commissioned on December 28, 2002.

FOOTPRINT

At present, Reliance Telecom's GSM cellular services are available in 340 towns within
its eight-circle footprint. Reliance's CDMA services are available in 19 states and cover
about 65% of the country, state wise. Reliance Infocomm also offered for the first time in
India, mobile data services through its R-World mobile portal. This portal leverages the
data capability of the CDMA 1X network.

BUSINESS REVIEW

During the twelve months ended March 31, 2007, revenues of the Wireless business
increased by 46% to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364 crore (US$
1,709 million).

Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250 crore
(US$ 522 million). Margins expanded to 37% from 31%.

EBITDA of the Global business increased by 98% during the twelve months ended
March 31, 2007 to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased to
24% from 12% last year.

In the same period, the Broadband business achieved revenue growth of 123% to Rs.
1,144 crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs. 519
crore (US$ 120 million). The EBITDA margin crossed 45% in the twelve months ended
March 31, 2007, from 15% in the corresponding period in the previous year.

TATA TELESERVICES

INTRODUCTION

Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian
Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of
India. The company forms part of the Tata Group's prescence in the Telecommunication
Industry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL.

TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile
services in India, specifically in the state of Andhra Pradesh.

In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd.
which was renamed Tata Teleservices (Maharashtra) Limited.

In September 2007, Tata Indicom launched the Talk World plan, an International Long
Distance Plan.

Tata is the direct competitor with Reliance, both CDMA operators in India. The company
provides unified telecommunication solutions including mobile, fixed wireless, fixed line
and broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL
providing GSM based mobile telephony.

The company was first in India to provide free intra network calling within city limits.
They launched a unique scheme providing lifetime rental free connectivity on its mobile
and fixed wireless for a one time charge.

Tata Teleservices is part of the INR Rs. 119000 Crore (US$ 29 billion) Tata Group, that
has over 87 companies, over 250,000 employees and more than 2.8 million
shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in
Telecom (FY 2006), the Group has a formidable presence across the telecom value
chain.

Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated
in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the
Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed
Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung into an
expansion mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices has
created a Pan India presence spread across 20 circles that includes Andhra Pradesh,
Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar,
Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W),
Kerala, Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has
established a robust and reliable 3G ready telecom infrastructure that ensures quality in
its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the
deployment of a reliable, technologically advanced network.

The company, which heralded convergence technologies in the Indian telecom sector, is
today the market leader in the fixed wireless telephony market with a total customer
base of over 3.8 million.

Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless
Desktop Phones, Public Booth Telephony and Wireline services. Other services include
value added services like voice portal, roaming, post-paid Internet services, 3-way
conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card
services and enterprise services.

Some of the other products launched by the company include prepaid wireless desktop
phones, public phone booths, new mobile handsets and new voice & data services such
as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive
applications like news, cricket, astrology, etc.

Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their
offering – Tata Indicom ‘Non Stop Mobile’ which allows customers to receive free
incoming calls. Tata Teleservices today has India’s largest branded telecom retail chain
and is the first service provider in the country to offer an online channel www.ichoose.in
to offer postpaid mobile connections in the country.

Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created more
than 20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its
manpower needs.

Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited
serves over 21 million customers in over 4000 towns. With an ambitious rollout plan
both within existing circles and across new circles, Tata Teleservices offers world-class
technology and user-friendly services in 20 circles.

INTRODUCTION

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation
Limited) is a public sector communications company in India. It is the India's largest
telecommunication company with 25.14% market share as on December 31, 2007. Its
headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath,
New Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sector
companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently
BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It has footprints
throughout India except for the metropolitan cities of Mumbai and New Delhi which are
managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of
31.7 million Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers.
BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b
(US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's
largest Telco and one of the largest Public Sector Undertaking with estimated market
value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10 %
to public.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services in
India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has
become one of the largest public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer's confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM
Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602
Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to
bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in
the country to beat its reach with its wide network giving services in every nook & corner
of country and operates across India except Delhi & Mumbai. Whether it is inaccessible
areas of Siachen glacier and North-eastern region of the country. BSNL serves its
customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company
offers vide ranging & most transparent tariff schemes designed to suite every customer.

BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering
24 percent of all mobile users as its subscribers. That means that almost every fourth
mobile user in the country has a BSNL connection. In basic services, BSNL is miles
ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of
the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 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.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure
that provides convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are 0.6 million DataOne
broadband customers.
The company has vast experience in Planning, Installation, network integration and
Maintenance of Switching & Transmission Networks and also has a world class ISO
9000 certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than
Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million
(US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone
is worth about Rs.630,000 million (US $ 14.37 billion).

BSNL plans to expand its customer base from present 47 millions lines to 125 million
lines by December 2007 and infrastructure investment plan to the tune of Rs. 733 crores
(US$ 16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services
and the desire to excel has made BSNL the No. 1 Telecom Company of India.

History
The foundation of Telecom Network in India was laid by the British sometime in
19th century. The history of BSNL is linked with the beginning of Telecom in India. In
19th century and for almost entire 20th century, the Telecom in India was operated as a
Government of India wing. Earlier it was part of erstwhile Post & Telegraph Department
(P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was
responsible for running of Telecom services in entire country until 1985 when
Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom
services of Delhi and Mumbai. It is a well known fact that BSNL was carved out of
Department of Telecom to provide level playing field to private telecoms.Subsequently in
1990s the telecom sector was opened up by the Government for Private investment,
therefore it became necessary to separate the Government's policy wing from
Operations wing. The Government of India corporatised the operations wing of DoT on
October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL
operates as a public sector.

What is prepaid mobile service?
Prepaid cellular services are getting very popular these days. Many people now prefer
prepaid services since they offer a variety of advantages related to lifestyle and cost
control that simply are not available through post-paid contract based services.

Prepaid cell phones have a distinct advantage over regular subscriptions. They offer
cost control with a fixed price per minute, control over costs with cell phones distributed
by parents, no credit check and increased anonymity.

Get you own cell phone with no credit check!
It's today's safe, convenient, and flexible way to manage your spending on cellular
phones.
Prepaid cell phones are convenient and easy to get because there are:

* no contracts
* no credit checks
* no deposits
* no monthly bills
* no activation or early termination fees

You will be safer and more secure when you own a prepaid cell phone without paying
hefty monthly fees.

Great Cost Control with No surprises!

Increasing consumer demand for prepaid cellular phones

Prepaid cellular services are currently the fastest-growing segment of the wireless
phone market, perhaps because wireless service can be started up with no subscription
fee for well under $100. More and more people are using this service to control
spending than to get around credit problems.

In Europe, already more thatn 60 % of subscribers are on a prepaid wireless plan, while
in the United States, only 8 to 10 percent of users have chosen that system. But it's
growing fast: in Canada, for example, some providers see their prepaid subscribers
base increase 50% faster than those of an ordinary monthly billed service.

Prepaid cellular phones are ideal in the following situations:

* If you want to budget your cell phone use, or
* If you want a phone for occasional use but don't want to pay a monthly service fee
or enter a long-term agreement, or
* If you have no credit history or past credit problems, or
* If your usage varies from month to month, or
* If you want to buy your children a phone for emergency use but restrict the amount
of calls they can make, or
* If you are looking for a gift. or
* If you don't feeling comfortable providing information for a carrier credit check, or
* If you want to learn about your usage patterns before committing to a long-term
monthly billing wireless contract.

What is lifetime validity?

Lifetime prepaid means that your cell-phone connection remains valid for life. You also
get a minimal talktime, ranging from Rs 10 to Rs 100 .The good part is that all
subsequent recharges give you full talk time. There will be no processing charges,
something that is a big turn-off for prepaid customers. For instance, out of the Rs 335 an
Airtel prepaid customer in Delhi pays to recharge his connection for 30 days, Rs 150 go
into processing fees. Another Rs. 31 goes to the government as tax and he gets airtime
worth only Rs 154. If he takes the lifetime validity offer, the same Rs 335 recharge will
give him talk time worth Rs 302 — and that’s for life. By saving on the Rs 150
processing fee, he will recover the one-time charge for lifetime validity in a few months.
Lifetime plans allow pre-paid subscribers to have lifetime validity for a one-time
payment. The user can then continue to receive calls without having to recharge.

Life time plans of the cellular companies

The Life Time Plan of Airtel

Airtel Presents Rs. 295 Lifetime Prepaid with 1 Rupee Outgoing Local Tariff

Slashes local outgoing call rate by 50% for Rs. 295/- Lifetime Prepaid users

Local outgoing tariff reduced to Re. 1/- for life to all networks (mobile & landline) from
Rs. 1.99/- for Rs. 295/- Lifetime Prepaid customers.

· All existing customers of Rs. 295/- Lifetime Prepaid to be migrated to Re. 1/- call rates,
without any extra charges.

Bharti Airtel, India’s leading telecom service provider, today announced the Rs. 495/-
Lifetime Prepaid offer for its customers in Delhi & NCR circle and slashed all local
outgoing calls (mobile and landline) to Re. 1/- from the existing Rs. 1.99/- per minute
call rate.

Bharti Airtel, which was also the first service provider to introduce the Lifetime Prepaid in
India, announced this revolutionary tariff cut for customers that was earlier applicable to
only the Rs. 999/- Lifetime customers. With effect from february 15, 2008, all Rs. 295/-
Lifetime Prepaid customers will be able to make local outgoing calls (Mobile & Landline)
at Re. 1/- per minute and all existing customers will be migrated to the revised tariff plan
without any extra charges. Customers will have to recharge with a minimum amount of
Rs. 200/- at least once in every 180 days to enjoy the lifetime validity and tariff benefits.

Airtel ka Super Lifetime Validity

Pulse Rate
60 sec

Price of Pack (Rs.)
295

Free Airtime on Pack (Rs.)
150

Incoming Calls (Rs.)
-

Airtel
GSM / CDMA
(10 Digit)
Landline / WLL

LOCAL RATES (Rs./min)
1 (night tariff from 11pm to 7
am @ 10 paise)
1
1

STD RATES (Rs./min)
2.65
2.65
2.65

ISD (Rs./min)

USA, Canada, Europe (Fixed
Line), Australia, Singapore,
Hong Kong, Thailand,
Malaysia, Indonesia, New
Zealand.
6.40

Gulf, Europe (Mobile),
SAARC countries, Africa &
Rest of the world
9.20

Cuba, Sao Tome & Principe,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands,
Vanuatu, Cook Islands,

Other Details
PF on subsequent talktime recharges to be as per bands specified i.e. Rs 1-100: 25%, Rs
101-199: 15%, Rs 200 & above: NIL. This is waived for the first 90 days from 25th Feb
08. Min recharge condition of Rs 200/- in 180 running day
Idea - Lifelong Validity Recharge Voucher

IDEA ka Lifelong Validity offer

Pulse Rate
60 sec

Price of Pack (Rs.)
195 (sim charges exclude)

5

- free for lifelong

idea
GSM / CDMA
(10 Digit)
Landline / WLL

1
1
1

STD RATES (Rs./min)
2.75
2.75
2.75

ISD (Rs./min)

Zealand.
Rs.6.99

Rest of the world
Rs.9.99

Tuvalu, Tokelau, Norfolk

Promotional Offer All new customers taking 195 rs recharge on the date of activation, will
For New get Full TT in all recharges of Rs. 125/-(Till 30th April,2008.) Total TT-
Activations* 111.25. Online TT-86.25, Offline TT-25 Rs. (within 48 hrs.)

Reliance “Sath Zindagi Bhar Ka”(lifetime) offer
RCom’s new gambit is Rs 199 lifetime prepaid

Reliance Communications, the code-division multiple access major, which was the first
to launch the lifetime plan almost two years ago at a one-time cost of Rs 999, plans to
announce a similar scheme at one-fourth the price —- Rs 199.

For making outgoing calls, the standard local tariff will be 99 paise per minute. Various
other calling tariff options will also be available to the users, depending on the trend of
one’s usage.

RCom’s move looks like a replay of 2006, when mobile telephony players were intensely
competing with each other over lifetime pre-paid schemes.

Spectrum war, however, kept the operators busy all through 2007, and one didn’t hear
about lifetime plans at all.

Rcom’s “SATH ZINDAGI BHAR KA” plan

Pulse Rate
60 sec

Price of Pack (Rs.)
195 (sim charges exclude)

5

- free for lifelong

Rel.
GSM / CDMA
(10 Digit)
Landline / WLL

0.99
0.99
0.99

STD RATES (Rs./min)
2.75
2.75
2.75

ISD (Rs./min)

Zealand.
Rs.6

}17

Rest of the world


BSNL’s Excel ANANT plan
BSNL’s “Excel Anant” plan

Pulse Rate
60 sec

Price of Pack (Rs.)
495 (sim charges include)

65

- free for lifelong

BSNL
GSM / CDMA
(10 Digit)
Landline / WLL

1.00
1.40
1.00

STD RATES (Rs./min)
2.75
2.75
2.75

ISD (Rs./min)

Zealand.
Rs.7.20

Rest of the world
Rs.9.60

Tuvalu, Tokelau, Norfolk

In case of Anant, the Life Time Validity means the License Period of the Operator. The
License Period for Cellular Services of BSNL is 20 years w. e. f. 29.02.2000. However, the
License is understood to be renewable further on its expiry.

TATA Indicom’s “GO LIFE” plan
TATA indicom’s “GO LIFE” plan

Pulse Rate
60 sec

Price of Pack (Rs.)
489

1

- free for lifetime

indicom
GSM / CDMA
(10 Digit)
Landline / WLL

1.50
2.00
2.00

STD RATES (Rs./min)
2.75
2.75
3.00

ISD (Rs./min)

Zealand.

}Rs. 17.20

Rest of the world


Lifetime validity is subject to the license period till of Tata Teleservices ltd. d. Connections with
no usage (incoming, outgoing or recharge) for a continuous period of 180 days will be
churned/deactivated.

Comparison of lifetime plans of all cellular
companies

Charges ( call rates )
Cellular co.s Lifetime (Rs.)
plan
Rs. Own Other STD International SMS
network network L/N/I
Airtel 295 1 1 2.65 6.4/9.2/40 1/2/5

BSNL 495 1 1.40 2.75 7.2/9.6/12 1/2/5

R’com 199 0.99 0.99 2.99 6/17 1/2/5

Tata 489 1.50 2 2.75 17.20 1/2/5
Indicom

TRAI on Lifetime validity plans
TRAI asks mobile operators to disclose key issues of lifetime plans

TRAI has asked the mobile operators offering lifetime connectivity plans to
disclose 'risk factors', like change in tariff plans and their remaining license
period duration, in their announcement.

The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguards
to protect consumer interest in the lifetime validity tariff schemes being offered by
phone companies. These include a restriction on the companies from hiking the tariff on
any item specified in the plans and an obligation to inform the subscribers of the month
and year of the expiry of current license.

The amendment to the Telecommunication Tariff Order thus addresses a moral issue
that had arisen after phone companies began promoting lifetime schemes — their
licenses are for a limited span ranging from seven to 15 years while they were offering a
tariff that went well beyond the license period. It also answered a question in the minds
of the subscribers whether there would be subsequent demands from phone companies
after the initial upfront payment. TRAI made it clear that in the case of tariff plans offered
or marketed as having lifetime or unlimited validity, the subscribers should get the
service as long as the phone company is permitted to provide such telecom service
under the current license or renewed license. TRAI has also reiterated the right of the
subscribers to choose any tariff plan at any point of time.

TRAI released a `Regulation on Code of Practice for Metering and Billing Accuracy.'
With no stakeholder replying to the consultation paper on billing issues that also
contained a code of practice for metering and billing accuracy, TRAI decided to issue
the regulation. It has directed companies before enrolling a customer to inform in
writing, within a week of activation of service, the complete details of the tariff plan.
Charges for a value added service (download of film clip, ring tone and the like) or entry
to an interactive service (such as a game) must be provided before the customer
commits to use the service.

RESEARCH METHODOLOGY

Definition of Research

The word research is derived from the Latin word meaning to know. It is a systematic
and a replicable process, which identifies and defines problems, within specified
boundaries. It employs well-designed method to collect the data and analyses the
results. It disseminates the findings to contribute to generalize able knowledge. The
characteristics of research presented below will be examined in greater details later are:

 Systematic problem solving which identifies variables and tests relationships
between them,
 Collecting, organizing and evaluating data.
 Logical, so procedures can be duplicated or understood by others
 Empirical, so decisions are based on data collected
 Reductive, so it investigates a small sample which can be generalized to a
larger population
 Replicable, so others may test the findings by repeating it.
 Discovering new facts or verify and test old facts.
 Developing new scientific tools, concepts and theories, which would facilitate
to take decision.

For the proper analysis of data simple statistical techniques such as percentage were
use. It helps in making more generalization from the data available. The data which was
collected from a sample of population, was assumed to be representing entire

population was interest. Demographic factors like age, income and educational
background was used for the classification purpose.

Sample size

For carrying out any research or study on any subject it is very difficult to cover even
10% of the total population. Therefore the sample size has to be decided for a
meaningful conclusion. For designing the sample size, it was thought proper to cover a
very small percentage of population in various age groups.

The method used for sample technique was non probability convenience sampling
method. This method is used because it is known previously as to whether a particular
person will be asked to fill the questionnaire. Convenient sampling is used because only
those people will be asked to fill the questionnaires who were easily accessible and
available to the researcher.

Considering the constraints, it was decided to conduct the study based on sample size
of 100 people in specific age groups. Scientific method is not adopted in this study
because of financial constraints and also because of lack of time; also the basic aim of
doing the research is academic, hence most convenient way is selected.

TYPES & TECHNIQUES

The study conducted is a conclusive descriptive statistical study; the researcher comes
to the decision which is precise and rational. The study is conclusive because after
doing the study the researcher comes to a conclusion regarding the position of the
brand in the minds of respondents of different firms groups. The study is statistical
because throughout the study all the similar samples are selected and group together.
All the similar responses are taken together as one and their percentages are
calculated.

Thus, this, conclusive descriptive statistical study is the best study for this purpose as it
provides the necessary information which is utilize to arrive at a concrete decision.

TOOLS USED

To know the response I have used the questionnaire method in sample survey. If one
wishes to find what people think or know, the logical procedure is to ask them. This has
lead marketing researchers to use the questionnaire technique for collecting data more
than any other method.

In this method questionnaire were distributed to the respondents and they were asked
to answer the questions in the questionnaire. The questionnaires were structured non-
disguised questionnaire because the questions, which the questionnaire contained,
were arranged in a specific order besides every question asked were logical for the
study, no question can be termed as irrelevant.

The questionnaire, were non-disguised because the questionnaire were constructed so
that the objective is clear to the respondent. The respondents were aware of the
objective. They knew why they asked to fill the questionnaire.

LIMITATIONS OF THE STUDY

• The research will be conducted in a limited area.

• The internet information can be irrelevant.

• Time will be a major constraint.

• The respondent will be limited so cannot be treated as a whole population.

• The respondent may be biased.

• Due to language problem it is possible that the respondents are not be able to
understand the questionnaire and can cause misleading results.

CHAPTER-4

DATA ANALYSIS &
INTERPRETATION

DATA ANALYSIS & INTERPRETATION

Q1. Which telecom service do you use?

Options Percentage of respondents

Mobile 55

Landline 5

Both 40

Q2. Which cellular service do you use?


Airtel 34

idea 28

Reliance 17

BSNL 16

Tata indicom 5

Q3. Which service you r using?


Prepaid 95
Postpaid 5

Q4. Are you using lifetime or general plan?

Option Percentage of respondents

Lifetime 73
General 27

Q5. Are you satisfied with the call rates of the Lifetime plan?


Yes 64

No 36

Q6. Which facility attracts you most in the lifetime plan?


Call rates 15

Massage Tariff 1

Night Tariff 1

Validity 83

Q7 Are you satisfied with the lifetime plan which you are using?


Yes 78

No 22

Q8. Rate of the satisfaction level with the services of your present lifetime plan?


Fully satisfied 14

Satisfied 47

Average 27

Dissatisfied 8

Highly dissatisfied 2

Q9. Why you chose lifetime plan?


For incoming purpose only 23

For money saving 48

For the facilities provided in the plan 29

Q10. Do you know about the license of the cellular companies?


Yes 24

No 76

OBSERVATION & FINDINGS

 55% of the people use only mobile, and 40% of respondents use both the
services & only 5% people use the telephone service. It shows the popularity of
cellular phone services.

 34% of respondents are using the Airtel services, which is the highest percentage
of users of cellular phone. Idea takes 2nd place in Bhopal with 28% of users. Then
comes reliance and BSNL, and tata indicom having least customers in the
Bhopal.

 Prepaid service is most popular in the cellular services with 95% of customers.
The remained uses postpaid services.

 In current situation 73% of respondents are using lifetime plans, where the rest
are using general plan of the cellular companies.

 64% of respondents are satisfied with the call rates of the lifetime plans, it is
because telecom companies have slashed their call rates few months ago. Still in
this situation 36% of respondents did not satisfy with the call rates which service
they are using.

 In the lifetime plan of cellular companies most of the respondents are using this
service because of its validity period with 83% of answer. Where 15% of people
like this services because of its call rates.

 78% of customer satisfied with the lifetime plans of cellular companies, and which
are not satisfy with the service they are mostly BSNL and TATA indicom users.

 Most of the people are using lifetime services because of money savings with the
percentage of 48. Where 29% of people like this service because of the facilities
provided by the operators. And 23% of people are using this service because of
incoming only.

 When it was asked to the respondents that did they know about the license of the
cellular company, then most of the people replied NO. it means people are not
aware about the license related bound of the cellular companies which is
implemented by TRAI, that cellular companies can deliver their services until their
license have validity, they have to renew it for providing further service.

CONCLUSIONS
In Bhopal it is found that Airtel is the market leader in the lifetime plan segment. People
like the lifetime plans provided by the companies. And Idea having 2nd highest
customers in Bhopal

TATA indicom having least customers in Bhopal, where Reliance and BSNL having
almost equal percent of customer

But they are not aware about the bound of cellular companies with TRAI, that cellular
companies can deliver their services till their license have validity, they have to renew it
for providing further service.

SUGGESTIONS

 In the lifetime plans, cellular companies should reduce the call rates.

 They should provide other facilities like massage and minimum call rates in the
same network.

 They should make aware the customers that they have limited license period.

 They should not take other hidden charges.

 There should not be any compulsion that customer have to recharge their card in
180 days with certain amount. This is the main drawback of the lifetime validity
plan.

BIBLOGRAPHY

Books:

• Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New Dehli.

• C. R. Kothari ‘Research methodology’, vishwa publication, New Delhi.

• Saxena Rajan ‘marketing management’ Tata Mcgraw-hill publicating Co. Ltd. New
Delhi.

• H. V. Verma ‘marketing of services’ Global business press, New Delhi.

• Business today magazine of February issue,2008.

Web Resources:
www.trai.gov.in
http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp
http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea
http://www.bsnl.co.in/about.htm
http://www.bsnl.co.in/service/tariff_excel_pre.htm
http://210.212.144.243/utility/tariff.htm
http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdf
www.airtel.in
www.totalnetwork.co.in .

http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

ANNEXURE

Questionnaire

Name -
Age - 1)18-40 □ 2)41-70 □ 3)70 above □

Sex - 1) Male □ 2) Female □

Education- 1) Under graduate □ 2) Graduate □ 3) Post graduate □
4) Other □

Occupation- 1) Job □ 2) Business □ 3) Self employ □

Income- 1) 10K □ 2) Above10k □ 3) 20k □
4) Above 20k □

Address- 1) Rural □ 2) Urban □

Q1. Which telecom service do you use?
a) Mobile □ b) Landline □ c) Both □

Q2. Which cellular service do you use?
a) Airtel □ b) idea □ c) Reliance □ d) BSNL □
e) Tata indicom □

Q3. Which service you r using?
a) □ b) Postpaid

Q4. Are you using lifetime or general plan?
a) Lifetime □ b) General □

Q5. Are you satisfied with the call rates of the Lifetime plan?

a) Yes □ b) No □

Q6. Which facility attracts you most in the lifetime plan?
a) Call rates □ b) Massage Tariff □ c) Night Tariff
d) Validity □

Q7 Are you satisfied with the lifetime plan which you are using?
a) Yes □ b) No

Q8. Rate of the satisfaction level with the services of your lifetime plan?
a) Fully satisfied □ b) Satisfied □ c) Average □
d) Dissatisfied □ e) Highly dissatisfied □

Q9. Why you chose lifetime plan?
a) For incoming purpose only □ b) For money saving □
c) For the facilities provided in the plan □

Q10. Do you know about the license of the cellular companies?
a) Yes □ b) No □

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