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A PROJECT REPORT ON

“A Study on Telecom Business at DOOMDOOMA Market in relation to VODAFONE Essar vis-à-vis competitors”

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Submitted for the partial fulfillment of the paper “Project Work” for requirement of the degree of B.COM (Splz) Course, under DIBRUGARH UNIVERSITY Submitted by
KAUSHIK DEKA
M.COM 1st semester
ACCOUNTING & FINANCE (SPECIALITY)
dibrugarh university
REGISTRATION NO: 10027596
ROLL NO:
Session: 2012-2014

ORGANIZATIONAL GUIDE INSTITUTIONAL GUIDE
Miss Smita Borah Mr. Bipul Ch. Goswami Sales Executive Assistant Professor Vodafone Mini Store Commerce Department Doom Dooma Doom Dooma College

DIBRUGARH UNIVERSITY
DIBRUGARH, ASSAM

PROJECT REPORT
“A STUDY ON TELECOM BUSINESS AT DOOM DOOMA MARKET IN RELATION TO VODAFONE ESSAR VIS-À-VIS COMPETITORS”

THE PROJECT REPORT IS SUBMITTED FOR PARTIAL FULFILLMENT OF SUBJECT COURSE AT DIBRUGARH UNIVERSITY, DIBRUGARH, ASSAM.

PREFACE
Project during studies helps the students to prove their ability & knowledge, gained during the study curriculum. It helps the students to show their talent & skills & also learn about awareness of various new concept practically which couldn’t have been cleared theoretically.

It also helps in adopting to work in groups, which is very important requirement of the modern day industry. Hence I did my PROJECT WORK on “A Study on Telecom business at DoomDooma Market in relation to Vodafone Essar vis-à-vis Competitors” to study the various telecom provider at DoomDooma market and to compare the business of Vodafone Essar in relation to it’s competitors. For project report I collected data & information as provided by the various retailers and customers of the telecom market at Doom Dooma & from the official website of VODAFONE.

Date:

ACKNOWLEDGEMENT

Behind every achievement of a student lie the unflinching efforts of one’s parents & teacher without whom the liveliness of hard work could not have been known. I would like to express my sincerest gratitude towards an executive of Vodafone Distribution Center (Doom Dooma) who has helped me & guided me to achieve an insight into the company & develop my potentiality & creativity to prepare this report throughout the duration of study. I would also like to thank Mr. Tuman Barman for his kind support & suggestion during the course of study.

My sincere thanks to all the Retailers and Customers of Doom Dooma for their attention for detail which has directly or indirectly helped me to come up with this report.

I would also like to thank my institutional guide Mr. and all the lecturers of Commerce Department, Doom Dooma College for their kind support that had helped me a lot in completing my project.

DECLARATION

I, ……………….., a student of B.COM 3rd YEAR of Doom Dooma College, Doom Dooma, Assam declare that I have done my project work on the topic “A Study on Telecom Business at Doom Dooma Market in relation to Vodafone Essar vis-à-vis Competitors” . I further state that I have done my project with utmost dedication and sincerity and left no stone unturned while averting high level of effort which are required for completion of report. I further state that I have not submitted the project elsewhere. However I shall remain liable for any misinformation which creeps in without my knowledge, I look forward for anyone.

(___________) DATE:
PROJECT WORK PERFORMANCE CERTIFICATE
TO WHOM IT MAY CONCERN

This is to certify that ………………. a student of B.COM 3RD YEAR OF DOOMDOOMA COLLEGE came to our organization and collected the relevant data for completion of his project work entitled –“ A STUDY OF TELECOM BUSINESS AT DOOM DOOMA MARKET IN RELATION TO VODAFONE ESSAR VIS-À-VIS COMPETITORS ” as a mandatory part of B.COM 3RD YEAR (Splz) course 2011-12. He discharged his duties very well beyond our expectation. I wish him every success in his life.

SIGNATURE VODAFONE DISTRIBUTION CENTER (DOOMDOOMA AREA)

Communication is very much important in our day to day life. Without communication our life will very much difficult. Now a days, mobile phones are serving as one of the important medium for making long distance communicaton. There are many companies in the world which are providing mobile communication services. In India, the user of mobile phones are increasing day by day. Out of every five households, three households are using mobile phones. Thus, India is one of the largest growing mobile market. The market for mobile phones is growing day by day. Many multinational companies across the globe are making a huge investment in Indian mobile telecom market. In Doom Dooma, the following are the mobile telecom service provider: i. Airtel

ii. Vodafone
iii. Reliance
iv. BSNL
v. Aircel
vi. S-tel
vii. TATA Indicom
For my research I have selected Vodafone and my research objectives are as follows: To study the telecom provider at Doom Dooma.
To compare the business of Vodafone in relation to other telecom provider at Doom Dooma market.

Evolution of Indian Telecom Industry
The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta. Telephone services were in India in 1881.In 1883 Telephone services 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 Post, 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 Vides 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 telecommunication sector. In 1997, Telecommunication Regulatory Authority of India (TRAI) was created. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year Current Scenario of Indian Telecom Industry

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 Tariff for airtime, national long distance, international long distance, and handset Prices have driven demand. The telecom sector is also afflicted by a number of restraints. These include: Sluggish pace of reform process.

Lack of infrastructure in semi-rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost. Limited spectrum availability.

But notwithstanding these constrains, telecom sector has undergone a revolution in the past decade and has played a major part in bridging the rural-urban divide. In April 2008, India over look the US as the second largest wireless market, and as a pointer to the increasing global influence of Indian telecom companies, seven Indian have featured in the list of the world’s 100 most influential telecom leaders, complied by Global Telecoms Business, an industry magazine. According to CRISIL Research estimates, eight infrastructure sectors, which include the telecom sector, are expected to draw more than US$ 345.28 billion investment in India by 2012.

With the rural India growth story unfolding, the telecom sector is likely to see tremendous growth in India’s rural and semi-urban areas in the years to come. By 2012, India is likely to have 200 million rural telecom connections at a penetration rate of 25 per cent. And according to a report jointly released by Confederation of Indian Industry (CII) and Ernst & Young, by 2012, rural users will account for over 60 per cent of the total telecom subscriber base.

According to the Geneva-based International Telecommunication Union (ITU), factors like India’s current mobile telephone penetration rate of about 20 per cent and market liberalization policies are likely to offer ‘great potential’ for the growth of telecom companies in India. Forthcoming services such as 3G and WiMax will further augment the growth rate.

According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country’s population will own a mobile phone. This would translate into 612 million mobile subscribers, according for a tele-density of around 51 per cent by 2012.It is projected that the industry will generate revenues worth US$43 billion in 2009-10.

Evolution of the industry – Important Milestones
1851
First operational land lines were laid by the government near Calcutta (seat of British power). 1881
Telephone service introduced in India
1883
Merger with the postal system
1923
Formation of Indian Radio Telegraph Company (IRT)
1932
Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC). 1947
Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government’s Ministry of Communications. 1985
Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system).

1986
Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. 1997

Telecom Regulatory Authority of India created.
1999
Cellular Services are launched in India. New National Telecom Policy is adopted. 2000
DoT becomes a corporation, BSNL.
A large population, low telephony penetration levels, and a rise in consumers’ income and spending owing to strong economic growth have helped make India the fastest-growing telecom market in the world. The first and largest operator is the state-owned incumbent BSNL, which is also the 7th largest telecom company in the world in terms of its number of subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of Telecommunication Services), a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Bharti Telecom, TATA Indicom, Vodafone, MTNL, Idea, Vodafone and BPL have entered the space as major operators in India. However, rural India still lacks strong infrastructure.

In 2007, an article by Business week magazine reported that India’s mobile phone market is the fastest growing in the world, with companies adding some 6 million new customers a month. The total number of telephones in the country crossed the 300 million mark on June 18 2008The overall tele-density has increased to 36.98% in March 2009 In the wireless segment, 15.87 million subscribers have been added in March 2009. The total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wire line segment subscriber base stood at 38.22 million with a decline of 0.13 million in October 2008.

Telecom services in Assam
The Assam Telecom circle was formed in January 1987 after bifurcation of the erstwhile North-Eastern Circle. The Headquarters of the circle is located at Guwahati. As on 31st March 2005 the no. of telephone Exchanges in the State stands at 594. There were 21687 no. of PCO’s during the same period. The telephone density in the State measured in terms of coverage per 100 populations is found to be 1.84 in Assam as against 3.8 at all India level. There were nearly 4.79 lakh telephone connections working in the State up to the end of March, 2003. The No. of internet Station (nodes) in the State was 14 with 9238 connections till March, 2003. The total revenue realized during the year 2002-2003 was R 274.34 crore.

Vodafone Group is a global telecommunications company headquartered in London, United Kingdom. It is the world’s largest mobile telecommunications company measured by revenues and the world’s second-largest measured by subscribers (behind China Mobile), with around 341 million proportionate subscribers as of November 2010. 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. The name Vodafone comes from voice data fone, chosen by the company to “reflect the provision of voice and data services over mobile phones”. Vodafone has its primary listing on the London Stock Exchange. It had a market capitalization of approximately £93 billion as of 9 March 2011, making it the fourth-largest company on the London Stock Exchange. It has a secondary listing on NASDAQ (National Association of Securities Dealers Automated Quotations).

History of Vodafone
20th century:
In 1980, Sir Ernest Harrison OBE(Order of the British Empire), chairman of Racal Electronics plc’s , the UK’s largest maker of military radio technology, agreed a deal with Lord Weinstock of General Electric Company plc to allow Racal to access some of GEC’s tactical battlefield radio technology. Briefing the head of Racal’s military radio division Gerry When to drive the company into commercial mobile radio, When visited GE’s factory in Virginia, USA in 1980. In 1982, Racal’s newly formed Racal Strategic Radio Ltd subsidiary won one of two UK cellular telephone network licences, with the other going to British Telecom The network, known as Racal Vodafone, was 80% owned by Racal, with Millicom holding 15% and Hambros Technology Trust 5%. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986, Racal Electronics bought out the minority shareholders of Vodafone for £110 million.

Under stock market pressure to realise full value for shareholders (the mobile unit was being valued at the same amount as the whole Racal group), in September 1988, the company was again renamed Racal Telecom, and on 26 October 1988, Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at £1.7 billion. On 16 September 1991, Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996, Vodafone acquired the two thirds of Talkland it did not already own for £30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for £77 million, a 181 store chain whose customers were overwhelmingly using Vodafone’s network. In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores.

In 1997, Vodafone introduced its Speechmark logo, composed of a quotation mark in a circle, with the O’s in the Vodafone logotype representing opening and closing quotation marks and suggesting conversation. On 29 June 1999, Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone Airtouch plc. The merged company commenced trading on 30 June 1999. In order to gain anti-trust approval for the merger, Vodafone sold its 17.2% stake in E-Plus Mobilfunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network. On 21 September 1999, Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless.

The merger was completed on 4 April 2000. In November 1999, Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafone’s interest in Mannesmann had been increased by the latter purchase of Orange, the UK mobile operator. Chris Gent would later say Mannesmann’s move into the UK broke a “gentleman’s agreement” not to compete in each other’s home territory. The hostile takeover provoked strong protest in Germany, and a “titanic struggle” which saw Mannesmann resist Vodafone’s efforts. However, on 3 February 2000, the Mannesmann board agreed to an increased offer of £112bn, then the largest corporate merger ever.

The EU approved the merger in April 2000. The conglomerate was subsequently broken up and all manufacturing related operations sold off. On 28 July 2000, the Company reverted to its former name, Vodafone Group plc. In April 2001, the first 3G voice call was made on Vodafone United Kingdom’s 3G network.

Currently Vodafone operates in Africa, Middle East ,America, Asia- pacific, Europe and Australia. In the following picture, the red marked area shows the operation of Vodafone across the globe.

Products and services
Products promoted by the Group include Vodafone live!, Vodafone Mobile Connect USB Modem, Vodafone Connect to Friends, Vodafone Passport, Vodafone Freedom Packs, Vodafone at Home, Vodafone 710 and Amobee Media Systems. Between June and August 2009, Vodafone suspended roaming charges within 35 different countries, allowing their customers to take their standard UK price plan abroad. In October 2009, it launched Vodafone 360, a new internet service for the mobile, PC and Mac. On 15 February 2010 Vodafone launched world’s cheapest mobile phone known as Vodafone 150, will sell for below $15 (£10) and is aimed at the developing world. It will initially be launched in India, Turkey and eight African countries including Lesotho, Kenya and Ghana.

OPERATION OF VODAFONE IN INDIA
Vodafone Essar, formerly Hutchison Essar, is a cellular operator in India that covers 23 telecom circles in India. It is based in Mumbai. On July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its Indian mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be owned by Indian investors, in compliance with Indian law.

It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of customers. Vodafone had about 134.5 million customers as of February 2011. On 11 February, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion.[5] The transaction closed on 8 May, 2007. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology. Vodafone Essar launched 3G services in the country in the January-March quarter of 2011 and will spend up to $500 million within two years on its 3G networks.

HISTORY OF VODAFONE IN INDIA
Hutchison Essar (1992-2007)
In 1992, Hutchison Whampoa and its Indian business partner – Max Group, established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Bombay (now Mumbai) and launched commercial services as Hutchison Max in November 1995. In Delhi, Uttar Pradesh (East), Rajasthan and Haryana, Essar Group was the major partner. But later Hutch took the majority stake. By the time of Hutchison Telecom’s Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India’s 23 licence areas and following the completion of the acquisition of BPL Mobile that number increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel — A subsidiary of Essar Group) that held licence applications for the seven remaining licence areas. Initially, the company grew its business in the largest wireless markets in India — in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network – all vital to long-term success in India.

Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User (ARPU) than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India’s largest markets providing the resources to expand its footprint nationwide. In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately $11.1 billion. Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look.

A recurrent theme is that its message Hi” stands out visibly though it uses only white letters on red background. Another successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers. Ads featuring the pug were continued by Vodafone even after rebranding. The brand subsequently introduced ZooZoos which gained even higher popularity than was created by the Pug. Vodafone’s creative agency is O&M while Harit Nagpal was the Marketing Director during the various phases of it’s brand evolution. Timeline

1992
Hutchison Whampoa and Max Group establish Hutchison Max.

2000
Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujarat markets through Essar acquisition.

2001
Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai.

2003
Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and rebranded it ‘Hutch’.

2004
Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh (West) and West Bengal.

2005
Acquired BPL Mobile operations in 3 circles. This left BPL with operations only in Mumbai, where it still operates under the brand ‘Loop Mobile’.

2007
Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The company is renamed Vodafone Essar. ‘Hutch’ is rebranded to ‘Vodafone’.

2008
Vodafone acquires the licences in remaining 7 circles and has starts its pending operations in Madhya Pradesh circle, as well as in Orissa, Assam, North East and Bihar.

Vodafone acquires Essar’s Stake
On March 31, 2011, Vodafone Group Plc announced that it would buy an additional 33% stake in its Indian joint venture for $5 billion after partner Essar Group exercised an option to sell the holding in the mobile-phone operator. The deal will raise Vodafone’s stake to 75%. Essar will exit the company after it implemented a put option over 22% of the venture. Vodafone exercised its call option to buy an 11% stake.

In 2007, Vodafone granted options to Essar that would enable the conglomerate to sell its entire stake for $5bn, or to dispose of part of the 33 per cent shareholding at an independently appraised fair market value. In January 2011, Vodafone objected to Essar’s plans to place part of its 33% stake in India Securities, a small public company. Vodafone feared the move would give an inflated market value to Vodafone Essar. It had approached the market regulator SEBI and also filed a petition in the Madras High Court.

Competitors
Vodafone competes with 14 other mobile operators throughout India. They are Aircel, Airtel, Cheers Mobile, BSNL, Idea, Loop Mobile, MTNL, MTS, Ping
Mobile, Reliance Communications, S Tel, Tata DoCoMo, Tata Indicom, Uninor, Videocon and Virgin Mobile.

RESEARCH OBJECTIVE:
The following are the research objective:
To study the telecom provider at Doom Dooma market.
To compare the business of Vodafone in relation to other telecom provider at Doom Dooma market. RESEARCH METHODS:
Initially an extensive exploratory research was undertaken to gain insights into the general nature of the research objectives, the possible decision alternatives and relevant variables that need to be considered while designing the questionnaire. Along the lines of exploratory research, the research objectives were redefined and the questionnaire was designed. With the help of the questionnaire a conclusive (descriptive and casual) survey was conducted at Doom Dooma telecom market. SOURCES OF DATA:

Both primary and secondary data were used to collect information from the Respondents: Primary Data:
Questionnaire
Personal Interview
Secondary Data:
Organizational Magazines
Official Website
Various Books
Information provided by the Organization
RESEARCH INSTRUMENT:
The research was carried out through questionnaire and personal interview. A structured questionnaire with close ended question was used for the survey. SAMPLING FRAME:
Sampling Frame was the retailers and customers of various telecom company of Doom Dooma.

SAMPLE AREA:
The questionnaire was distributed in the various regions of Doom Dooma. Regions covered the area like K.P. Road, Azad Road, Sookerating, Wood
Road, Nehru Road, G.N.B. Road, Uchamati, Hansara, Rupai , Rupban etc. SAMPLE SIZE:

As per the objective the sample size was 100 retailers and 100 customers of various telecom providers in Doom Dooma market. CONTACT METHOD:
All the respondents were approach directly and personally. Personal interviewing is found to be more versatile for the survey. ANALYSIS TECHNIQUE:
The data collected has been analyzed using statistical tools of bar diagram, pie diagram and percentage.

ANALYSIS ON RETAILERS
1. Which telecom operator is getting more connection from your shop?

This chart represents that 38% respondents has said Airtel is getting more connection in their shop, 32% respondents has said Vodafone is getting more connection in their shop, 20% respondents has said Reliance is getting more connection in their shop, 8% respondents has said Aircel is getting more connection in their shop and 2% respondents has said S-tel is getting more connection from their shop. 2. Which telecom operator is selling more RCV’s/ Lapu from your shop?

43% of respondents said Airtel’s RCVs and Lapu has highest sales in their retail outlet, 21% of respondents said Vodafone’s RCVs and Lapu has highest sales in their retail outlet, 30% of respondents said Reliance’s RCVs and Lapu has highest sales in their retail outlet and 6% of respondents said Aircel’s RCVs and Lapu has highest sales in their retail outlet.

3. According to you what plan customers prefers more to take? a) Prepaid b) post paid

All respondents opine that customer prefers more prepaid plans. 4. What is the market responds towards Vodafone?
a) Excellent b) very good c) Good d) Fair

Above chart represents that 4% respondents opines that Vodafone has fair market respond, 6% respondents opines that Vodafone has good market respond, 70% respondents opines that Vodafone has Very Good market respond and 20% of the respondents opines that Vodafone has an excellent market respond.

5. What is the strength of Vodafone in comparison to other telecom services?

The above chart represent that 30% respondents opines that the strength of Vodafone is good network coverage, 8% respondents opines that the strength of Vodafone is Low call charges, 47% respondents opines that the strength of Vodafone is Good Service and 15% respondents opines that the strength of Vodafone is good offers. 6. What is the weakness of Vodafone in comparison to other telecom services?

The above chart represents that 37% respondents opines that weakness of Vodafone is poor network in some areas of Doom Dooma and 63% respondents opines that weakness of Vodafone is that it provide low incentives to retailers in comparison to it’s competitors.

ANALYSIS ON CUSTOMERS
1. What connection do you have?
a) Airtel b) Vodafone c) Reliance d) Aircel e) Tata Indicom f) Idea g) BSNL

The above chart represents that 30% of respondents use Airtel, 24% of respondents use Vodafone, 10% of respondents use BSNL, 12% of respondents use Aircel, 21% of respondents use Reliance and 3% of respondents use S-tel. 2. What plan are you using?

a) Post paid b) Prepaid

The above chart represents that 99% of respondents are using prepaid and 1% of respondents are using postpaid.

3. Please tick the operators as per the criteria mentioned below. i) Airtel
a)Network Coverage b)Call charge c) Offers d)Others, pls specify………………………………………………

92% of respondents opines Network Coverage, 7% of respondents opines Call Charge and 2% of respondents opines Offers. ii) Reliance
a)Network Coverage b)Call charge c) Offers d)Others, pls specify………………………………………………

55% of respondents opines Offers, 25% respondents opines Call Charge and 20% respondents opines Network Coverage.

iii) Vodafone
a)Network Coverage b)Call charge c) Offers d)Others, pls specify…………………………………………………

6% of respondents opines call charge, 24% opines offers and 70% opines Network Coverage. iv) Aircel
a)Network Coverage b)Call charge c) Offers d)Others, pls specify…………………………………………………

40% opines Network Coverage, 33% opines offers and 27% opines Call Charge.

v) BSNL
a)Network Coverage b)Call charge c) Offers d)Others, pls specify…………………………………………………
63% of respondents opines Network Coverage and 27% opines offers. VI) S-tel
a)Network Coverage b)Call charge c) Offers d)Others, pls specify…………………………………………………

53% opines Offers, 32% opines Call Charge and 15% opines Network Coverage.

4. What features of your network provider do you like most?
Airtel Customers-

The above chart represents that 67.56% of Airtel customers like Airtel
because of Good Network Coverage, 44% opine Good Service and 6% opine Offers. Reliance Customers-

The above chart represents that 9.64% of Reliance customers like Reliance because of Network Coverage, 80.33% opine Offers and 6% opine Call rates.

BSNL Customers-

The above chart represents that 82.67% of BSNL customers like BSNL because of Network Coverage and 18.33% opine Cheap Call rates.

Aircel Customers-

The above chart represents that 58.43% of Aircel customers like Aircel because of Network Coverage, 15.23% opine Cheap Call rates and 26.34% opines Offers.

Vodafone Customers-

The above chart represents that 61.66% of Vodafone customers like Vodafone because of Network Coverage and 38.34% opines Offers.

S-tel Customers-

The above chart represents that 94% of S-tel customers like S-tel because of Offers and 6% opine Cheap Call Rates.

5. What features of your network provider you do not like?
Airtel Customers-

Above charts shows 60.43% opine High call rate and 39.57% opine Low Offers.

Reliance Customers-

Above charts shows 74.67% of Customers opine Poor Network and 25.33% of
Customers opines Poor Service.

BSNL Customers-

Above charts represents that 65.46% opines Poor Offers and 34.54% opines Poor Services.

Aircel Customers-

Above Bar diagram represents that 29% of Customers using Aircel faces Network Problem and 71% of Customers using Aircel are getting Poor Services.

Vodafone Customers-

The above Bar diagram represents that 10% of Vodafone Customers getting Poor Network Coverage, 55% of Customers using Vodafone are getting Limited Internet Surfing and 35% of Customers opines High Call Rates.

1) Less network area coverage
Some of the regions in Doom Dooma like Hansara, Rupban and some inner areas of Rupai have less network coverage in comparison to other region of Doom Dooma.

2) Problems with the Internet Facility
Many customers are unsatisfied with the internet facility provided by the Vodafone in comparison it’s other competitors.

3) Low Incentives to Retailers
Retailers are also unsatisfied as Vodafone provides very low commission as comparison to other mobile networks.

4) Negative balance without any notifications
Many customers of Vodafone complaints that their balances downs to negative without any notification. 5) High call rates
Customers complaints that Vodafone also charges high rates on calls as
comparison to other mobile network.

The following steps could be taken to accelerate the sales of Vodafone in Doom Dooma- 1) Ensure proper networking
Network should be improve in the area where there is poor network coverage.

2) Improvement of Internet facility
Internet facility should be improved in such a way that every customers doesn’t complaint.

3) Target the youngsters
Many of the mobile users who have opted for private telecom service are students. Thus youngsters form an important part of telecom industry. Plans should be made which can attract the younger generation.

4) Provide better incentives to retailers
Vodafone should try to provide better incentive or commissions to retailers.

5) Should minimize the Call Charge
Call charge should be minimized as currently Vodafone charges 1.2 paise per second whereas it’s competitor charges 1 paise per second.

Sampling error might have been occurred because no sample is perfect representation of a given population unless sample size equals the population. Since the report was based on primary data and personal interview, occurrences of personal bias cannot be ruled out. For respondent, bias may take place if one tries to reflect his/her personality. Non response may have occurred because some of the respondents contacted provide an incomplete response to some question mentioned in the questionnaire. Chances of occurrences of false judgment due to my lack and bias responses of the respondents.

Due to the growing need for mobile phones, it’s no wonder that service providers are going all out to capture, as much market space as they can. As the number of mobile phone users are estimated to rise to about 125 million
by 2012,it’s not surprising that most of the leading service providers in India have started branding and marketing their services more aggressively.

The conducted study tries to examine the market mindset towards one of the major player in the telecom sector. The selected company for the study is Vodafone which is having a reputation in the market. This study had examined customer and retailer evaluation about the tele services provided by the company. The major findings are- Low incentives to Retailers.

High call Charges.
Problem with the internet facility
Through this research, I got an exposure to the real situations of telecom market world and reactions to the customers and enables me to understand the customer reactions while they are undergoing dissatisfaction of services. To the marketer, the present study is a market reflection about the services offered. This has given me an insight into the customer problems.

QUESTIONNAIRE FOR RETAILERS
A Study on telecom business at Doom Dooma market in relation to Vodafone Essar vis-à-vis competitors NOTE: These data’s are collected only for the Educational purposes and will not be used for any other purpose than that. 1) Which are the telecom services you provide to the customers? a) Airtel b) BSNL c) Reliance d) Vodafone e) Aircel f) Tata Indicom g) S-Tel 2) Please tick the operator as per the following-

OPERATORS
COVERAGE
SERVICES
OFFERS
CHEAP HANDSETS
OTHERS,
PLEASE SPECIFY
Airtel

1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

BSNL
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

Reliance
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

Vodafone
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

Aircel
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

TATA indicom
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

S-Tel
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

3) Which telecom operator is getting more connection in Doom Dooma according to you? a)……………………………… b)…………………………………. c)………………………………….

4) Which telecom operator is selling more RCV’s/Lapu in Doom Dooma according to you? a)…………………………………. b)…………………………………. c)…………………………………. 5) According to you what plan customers prefer more to take? a) Prepaid b) Postpaid

6) What is the market responds towards VODAFONE ?
a) Excellent b) Very good c) Good d) Fair 7) What is the strength of VODAFONE in comparison to other telecom services? ……………………………………………………………………………………………………………………………………. 8) What is the weakness of VODAFONE in comparison to other telecom services? ……………………………………………………………………………………………………………………………………. 9) Do you have any suggestion for the company?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

QUESTIONNAIRE FOR CUSTOMERS
A Study on telecom business at Doom Dooma market in relation to Vodafone Essar vis-à-vis competitors NOTE: These data’s are collected only for the Educational purposes and will not be used for any other purpose than that. 1) What connection do you have?

a) Airtel b) Vodafone c) BSNL d) Aircel e) Reliance f) Tata Indicom g) S-tel 2) What plan are you using?
a) PREPAID b) POSTPAID
3) Please rate the operators as per the criteria mentioned below. i. VODAFONE
a)Network Coverage b)Call Charge c)Offers d)Others, pls specify………………………………

ii. AIRTEL
a)Network Coverage b)Call Charge c)Offers d)Others,pls specify………………………………

iii. BSNL
a)Network Coverage b)Call Charge c)Offers d)Others,pls specify………………………………

iv. AIRCEL
a)Network Coverage b)Call Charge c)Offers d)Others,pls specify………………………………

v. RELIANCE
a)Network Coverage b)Call Charge c)Offers d)Others,pls specify………………………………

vi. TATA INDICOM
a)Network Coverage b)Call Charge c)Offers d)Others,pls specify………………………………

vii. S-TEL
a)Network Coverage b)Call Charge c)Offers d)Others,pls specify………………………………

4) What features of your network provider do you like most?

………………………………………………………………………………………………………………………………………………. 5) What features of
your network provider you do not like?

……………………………………………………………………………………………………………………………………………… 6) Do you have any suggestion for the company?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

Books-
a. Donald R Cooper and Pamela S. Schindler, Business Research Methods: Ninth Edition. b. Philip Kotler and Kevin Lane Keller (2005), Marketing Management Twelfth Editions. Reports-
Telecom sector Annual Report 2010-2011
Journals-
a. Gupshup official journal (feb 2011, vol-14). b. Gupshup official journal (june 2011, vol-15). c. Indian Journal of Marketing vol-41 (sept-2011). Newspapers-

Economic Times
Websites
a. http://www.google.com
b. http://www.2dix.com
c. http://en.wikipedia.org/wiki/Vodafone
d. http://en.wikipedia.org/wiki/Vodafone_Essar
e. http://www.slideshare.net/guest377d84/telecom-sector-thesis f. http://www.vodafone.com
g. http://biz.yahoo.com/ic/139/139807.html

I. Plc- Public limited Company.
II. OBE- Order of the British Empire.
III. NASDAQ- National Association of Securities Dealers Automated Quotation. IV. GEC- General Electric Company.
V. Inc- Incorporation
VI. EU- European Union.
VII. GSM- Global Service For Mobilecommunication.
VIII. FDI- Foreign Direct Investment.
IX. PTT- Post, Telecom, Telegraph
X. DoT- Department of Telecommunication.
XI. VSNL- Videsh Sanchar Nigam Limited.
XII. MTNL- Mahanagar Telecom Nigam Limited.
XIII. NTP- National Telecom Policy.
XIV. TRAI- Telecommunication Regulatory Authority of India.
XV. CRISIL- Credit Rating of Information Services of India Limited. XVI. CII- Confederation of Indian industry.
XVII. ITU- International Telecommunication Union.
XVIII. IRT- Indian Radio Telegraph.
XIX. BSNL- Bharat Sanchar Nigam Limited.
XX. CDMA- Code Division Multiple Access.
XXI. WLL- Wireless Local Loop.
XXII. PCO- Public Call Office.

Cite this A Study on Telecom Business

A Study on Telecom Business. (2016, May 21). Retrieved from https://graduateway.com/a-study-on-telecom-business/

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