Price Sensitivity in Telecom Sector

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By

Saroja.R 12Kunal Sabharwal 03

Sandeep Pawar 10

Group A4

PRESENTATION ON

Price Sensitivity of

Telecom Sector

INTRODUCTION

Telecom in the real sense means transfer of information between two distant points in space

Telecom is a huge and varied fastness of technologies, companies, services and politics

that is truly global in naturetruly global in nature

Telecom stands as one of the most essential elements of the business world in terms of “Connecting the World”

TELECOM MILESTONES

TELECOM MILESTONES CONTD…

TRAI functions

Total Telcom Subscribers: 509 million (Sept 2009)

Wireless Subscribers: 471.7 million

Wireline Subscribers: 37.3 million

Tele density: 43.50 per cent

India' service providers revenue in Q1 (2009): $8.2 billion

India's Rural Mobile Phone Users: 100 Million

QUICK FACTS

Growth of Connection from March 2008 to March 2009

30

04.4

2

3085

.10

31

69.7

7

32

57.8

6

33

48.4

4

34

38.7

5

35

36.6

1

36

39.4

8

37

41.2

6

38

47.9

2

40

00.4

8

41

38.4

9

42

97.2

5

Increase in Teledensity

PERCENTAGE OF USER COUNTRY WISE

FDI in Telecom Sector

Mobile Tariffs in India one of the Lowest

US

D

New Entrants in Telecom Sector

• To understand the Price Sensitivity and customer preferences in Telecom Sector• To study the service providers and their service quality in the Telecom Sector• To study the customer satisfaction and understand the current market scenario in Telecom Sector.Sample size : 180

Sample frame : Mumbai City

Sample unit : Mumbai, Thane & Suburbs

Sampling Method : Simple random sampling

Constraints : Time, number of respondents Sampling : Response- 180 Survey : Questionnaire

Research Objectives

Age GroupN

o. o

f P

eopl

e

Age Group

Gender

Educational Qualification

Profession

Current Salary Package Per Month

Do you own a Landline ?

How Many handsets do you have?

How Many family members you have?

Who is your service provider ?

Which of the following information source/s have you used for the purchase of mobile phone?

How many years have you been using the

current mobile phone services?  

Which type of connection you are using?

What is your monthly expenditure on phone bills?

How you prefer paying your charges?

How much satisfied you are with the services of your service provider?

If the response to the above question is not “Fully Satisfied”then what is the reason of your dissatisfaction?

How much satisfied you are with the call & other tariffs of your service provider?

What Type of call you make the most?

Which aspect of your subscription do you use most?

Rate the importance of Price on a scale in the following brands.

Do you think promotional ADD campaigning really benefited to you

From Jan1, 2010 you can change the service provider by retaining the same no, would you like to change your service provider?

If answer for above question is Yes, which Telecom Service Provider would you select?

What suggestion would you give to improve your current service provider?

Forty per cent of Indian customers change their mobile phone provider every year

Apart from pre-paid and the post-paid market, there is no clear segmentation of the market

We don’t have any dominant player in India.

It was found out that for a majority of the mobile subscribers, Call cost & network quality is the top criteria when it comes to choosing a service provider.

Tata Telecom emerged as a highest fully satisfied operator where as MTNL lies towards the bottom of the table.

The most used service used by the consumer is to do local calls .

Strategy adopted by operators in recent past to hold a good position in market: Tata Docomo launches Per second billing in June,2009• Aircel launches Per second billing in October,2009• Reliance launches Per second billing /all 50 Paise in October,2009• Airtel launches Per second billing in October,2009• Vodafone launches Per second billing in November,2009• Airtel launches Per second billing for roaming in November,2009• Tata Docomo launches Per second billing for roaming in November,2009• Vodafone launches Per second billing for roaming in December,2009

Conclusion

Conclusion

From the above & from the survey we can only conclude that who ever may be the mobile operator the only beneficiaries are customers as they have now wide range of operator to choose for calls,sms,value added services and that to an rock bottom price.

THANK

YOU…..

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