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7/31/2019 Satisfaction Survey of Brand Mts
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SUMMER TRAINING PROJECT REPORT
ON
SATISFACTION SURVEY
OF BRAND MTS
SUBMITTED TO: SUBMITTED BY:.
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.
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ACKNOWLEDGEMENT
Summer training is an important part of Masters Degree in Management program
and I would like to express my heartfelt gratitude towards department of management
studies for giving me this opportunity. Initially I would like take the privilege to express
my deep sense of gratitude to, HOD Prof Mr. P.C Kavidyal for giving me an opportunity
to have a practical experience of job.
I also thankMr. Jitesh Bhashin(MTS Barielly) and Mr. Sunil(MTS Haldwani) for his
able guidance, constructive criticism, and the right amount of personal touch, which enable
the project in its present state.I would also like to thank My parents and all my Colleague for their Co-operation and
support throughout the development process of this report.
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CONTENTS
S.no Topic Page no
1 Introduction 5 A brief of telecom industry 5-27
MTS 27-30
2 Services Of MTS 31-41
3 Objectives of the study 42
4 Research Methodology 43-44
Scope of the study 45
Nature of the Study 46
Research instrument 47-49
5 Data Analysis 50
Graphs 51-52
SWOT Analysis 53
6 Limitation 54
7 Suggestions 55
8 Conclusion 569 Biblography 57
10 Annexure 58-63
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INTRODUCTION
A Brief of telecom industry:
1. INDUSTRYOVERVIEW
1.1 Background
The Indian Telecommunications network is the third largest in the world and the second
largest among the emerging economies of Asia. Today, it is the fastest growing market in
the
world. The telecommunication sector continued to register significant success during the
year and has emerged as one of the key sectors responsible for Indias resurgent Indias
economic growth.
1.1.1 Growth
This rapid growth has been possible due to various proactive and positive decisions of the
Government and contribution of both by the public and the private sector. The rapid strides
in the telecom sector have been facilitated by liberal policies of the Government that
provide
easy market access for telecom equipment and a fair regulatory framework for offering
telecom services to the Indian consumers at affordable prices.
1.1.2 Wireline Vs Wireless
It has also undergone a substantial change in terms of mobile versus fixed phones and
public
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versus private participation. The preference for use of wireless phones has also been
predominant in the sector.
Participation of the private entities in the telecom sector is rapidly increasing rate there by
presenting the enormous growth opportunities. There is a clear distinction between the
Global Satellite Mobile Communication (GSM) and Code Division Multiple Access
(CDMA)
technologies used and the graph below shows the divide between the two.
1.2 Segment wise Status
1.2.1 Wireline Services
With increasing penetration of the wireless services, the wireline services in the country is
becoming stagnant.
On the other hand, Broadband demand has picked up and promises to stabilise fixed line
growth.
1.2.2 GSM Sector
In terms of the Global System for Mobile
Communication (GSM) subscriber base this
now places India third after China and
Russia.China had 401.7 million GSM
subscribers.
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1.2.3 CDMA Services
CDMA technology was introduced in India as a limited mobility solution. The introduction
of CDMA services has created competition, lowered tariffs and offered many citizens
access
to communication services for the first time
1.2.4 Internet Services
Internet services were launched in India
on August 15, 1995. In November 1998
the government opened up the sector to
private operators. A liberal licensing
regime was put in place to increase
internet penetration across the country.
The growth of IP telephony or grey market is also a serious concern.
Government loses revenue, while unlicensed operation by certain operators violates the law
and depletes licensed operators market share.
New services like IP-TV and IP-Telephony are becoming popular with the demand likely
to
increase in coming years. The scope of services under existing ISP license conditions are
unclear.
1.3 Manufacture of Telecom Equipment
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Rising demand for a wide range of telecom equipment, particularly in the area of mobile
telecommunication, has provided excellent opportunities to domestic and foreign investors
in the manufacturing sector. The last two years saw many renowned telecom companies
setting up their manufacturing base in India. Ericsson has set up GSM Radio Base Station
Manufacturing facility in Jaipur. Elcoteq has set up handset manufacturing facilities in
Bangalore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of
manufacturing GSM mobile phones near Pune.
The Government has already set up Telecom Equipment and Services Export Promotion
Forum and Telecom Testing and Security Certification Centre (TETC). A large number of
companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in
India. With above initiatives India is expected to be a manufacturing hub for the telecom
equipment.
2 POLICY AND INITIATIVES
2.1 Regulatory Framework
The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a
regulator
for Telecom sector. The TRAIs functions are recommendatory, regulatory and tariff
setting
in telecom sector.
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Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in
May,
2000. TDSAT has been empowered to adjudicate any dispute
between a licensor and a licensee
between two or more service providers
between a service provider and a group of consumers
hear and dispose of appeal against any direction, decision or order of TRAI
Tariffs for telecommunication services have evolved from a regime where tariffs were
determined by Telecom Regulatory Authority of India to a regime where tariffs are largely
under forbearance. TRAI intervenes by regulating the tariffs for only those services, the
markets of which are not competitive.
Universal Service Obligation Fund (USOF) exclusively for meeting the Universal Service
Obligation was established in April, 2002. The Universal Service Levy is presently 5 per
cent
of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure
value
added service providers like Internet, Voice Mail, E-Mail service providers etc. Indian
Telegraph Act has been amended in October2006 to provide support for all telegraph
services including mobile and broadband to bridge the digital divide.
With the introduction of the Unified Access Licensing Regime, operators can offer telecom
access services to consumers in a technology neutral manner, subject to fulfilling certain
conditions. Introduction of this regime has also broken the legal/regulatory impasse
between
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the cellular and basic service providers. Issuance of Intra-Circle Merger and Acquisition
Guidelines provide investors an opportunity to take stakes in existing telecom operations.
2.2 Government Initiatives
The Government has taken the following main initiatives for the growth of the Telecom
Sector:
All telecom services have been opened up for free competition for unprecedented
growth.
217 (Information Technology Agreement) ITA-I items are at zero Customs Duty.
Specified capital goods and all inputs required to manufacture ITA-I, items are at zero
Customs Duty
Availability of low cost mobile handsets
The international Long Distance Services (ILDS) opened with effect from April 2002.
Calling Party Pays (CPP) regime was implemented with effect from 1st May
Guidelines for Unified Access Service License regime were issued in November 2003,
27 licenses out of 31 Basic Service Licenses were converted to Unified Access Service
Licenses
In April 2004, license fee for Unified Access Service Providers (UAS) was reduced by 2
per cent
License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of the
Adjusted Gross Revenue and spectrum charges between 2 to 4 per cent in June 2004
Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry
fee for ILD reduced to Rs. 2.5 Crore from Rs. 25 Crore
Lease line charges have been reduced to make the bandwidth available at competitive
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prices to facilitate growth in IT enabled services
One India plan i.e. single tariff of Re. 1/-per minute to anywhere in India was
introduced from 1st March 2006 by the Public Sector Undertakings. This tariff was
emulated by most of the private service providers also. This scheme has led to death of
distance in telecommunication and is going to be instrumental in promoting National
Integration further
The robust telecom network has also facilitated the expansion of BPO industry that is
having 500,000 employees now and adding 400 employees per day.
Annual license fee for National Long Distance (NLD), International Long Distance
(ILD), Infrastructure Provider-II, VSAT commercial and Internet Service Provider
(ISP) with internet telephony (restricted) licenses was reduced to 6 per cent of
Adjusted Gross Revenue (AGR) with effort from Jan 2006.
The Governments policy is neutral on use of technology by telecom service providers
subject to availability of scarce resources such as spectrum etc.
Licence Fees 6-10 per cent of Adjusted Gross Revenue (AGR)
2.3 Foreign Direct Investment Policy
Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the
telecom manufacturing segment in 1991 - when India embarked on economic liberalisation.
FDI is defined as investment made by non-residents in the equity capital of a company. For
the telecom sector, FDI includes investment made by Non-Resident Indians (NRIs),
Overseas Corporate Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs),
American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) etc.
Present FDI Policy for the Telecom sector:
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In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value
Added Services and Global Mobile Personal Communications by Satellite, FDI is
limited to 49 per cent (under automatic route) subject to grant of licence from the
Department of Telecommunications and adherence by the companies (who are
investing and the companies in which investment is being made) to the licence
conditions for foreign equity cap and lock-in period for transfer and addition of equity
and other license provisions.
Foreign Direct Investment up to 74 per cent permitted, subject to licensing and
security requirements for the following:
- Internet Service (with gateways)
- Infrastructure Providers (Category II)
- Radio Paging Service
FDI up to 100 per cent permitted in respect to the following telecom services:
- ISPs not providing gateways (Both for satellite and submarine cables)
- Infrastructure Providers providing dark fibre (IP Category I)
- Electronic Mail
- Voice Mail
The above is subject to the following conditions:
- FDI up to 100 per cent is allowed subject to the condition that such
companies would divest 26 per cent of their equity in favour of Indian public
within 5 years, if these companies are listed in other parts of the world.
- The above services would be subject to licensing and security requirements,
wherever required.
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- Proposals for FDI beyond 49 per cent shall be considered by Foreign
Investment Promotion Board (FIPB) on a case-to-case basis.
In the manufacturing sector 100 per cent FDI is permitted under the automatic
route.
In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile
Personal Communications by Satellite, FDI is permitted up to 49 per cent (under
automatic route) subject to grant of license from Department of Telecommunications
Foreign direct investment up to 74 per cent permitted, subject to licensing and
security requirements for the Internet Service (with gateways), Infrastructure
Providers (category-II), Radio Paging Service
FDI up to 100 per cent permitted in respect of
- ISPs not providing gateways (both for satellite and submarine cables),
- Infrastructure Providers providing dark fibre (IP Category I);
- Electronic Mail; and
- Voice Mail
FDI up to 49 per cent is also permitted in an investment company, set up for making
investment in the telecom companies licensed to operate telecom
services. Investment by these investment companies in a telecom
service company is treated as part of domestic equity and is not set of
against the foreign equity cap.
Manufacturing - 100 per cent FDI is permitted under automatic route.
FDI is subject to the following conditions
FDI up to 100 per cent is allowed subject to the conditions that such companies
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would divest 26 per cent of their equity in favour of Indian public in 5 years, if these
companies are listed in other parts of the world.
The above services would be subject to licensing and security requirements,
Wherever required.
Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case
Basis.
3. COMPETITION OVERVIEW
3.1 Major Players
Bharat Sanchar Nigam Limited (BSNL)
Year of Establishment 2000
Company Profile Bharat Sanchar Nigam Ltd. 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.
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Global Presence/ Marketing It has a network of over 45 million lines covering
5000
Network towns with over 35 million telephone
connections.
Future Prospect BSNL plans to expand its customer base from
present 47 millions lines to 125 million lines and
infrastructure investment plan to the tune of Rs. 733
crores (US$ 16.67 million) in the next three years.
Mahanagar Telephone Nigam Limited (MTNL)
Year of Establishment 1986
Company Profile MTNL was set up by the Government of
India
to upgrade the quality of telecom services,
expand the telecom network, introduce new
services and to raise revenue for
telecom development needs of Indias key
metros. MTNL with a market share of about
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13% of the National telecom Network has a
customer base of 5.92 million. The Govt. of
India currently holds 56.25% stake in the
company.
Acquisitions / Strategic Alliances MTNL has formed a Joint Venture company
in Nepal by the name of United Telecom Ltd.
(UTL) in collaboration with Telecom
Consultants India Limited (TCIL) in 2001 for
providing WLL based basic services in
Nepal. MTNL has set up its 100% subsidiary.
Mahanagar Telephone Mauritius Limited.
(MTML) in Mauritius, for providing basic,
mobile and international long distance.
Videsh Sanchar Nigam Limited (VSNL)
Year of Establishment 1986
Company Profile The Videsh Sanchar Nigam Limited (VSNL)
a wholly Government owned corporation.
Thecompany operates a network of earth
stations, switches, submarine cable systems,
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and value added service nodes to provide a
range of basic and value added services and
has a dedicated
work force of about 2000 employees. VSNL's
main gateway centers are located at Mumbai,
New Delhi, Kolkata and Chennai.
Global Presence/ Marketing Network The company has 52 subsidiaries in 21
countriesas well as operations across four continents.
Acquisitions / Strategic Alliances VSNL acquired Nasdaq-listed Teleglobe
International Holdings Ltd for $239 million
in 2005 Videsh Sanchar Nigam Ltd acquired
Tyco Global Network, submarine cable
system, for USD 130 million in 2005
Future Prospect The company plans to expand its wholesale
voices services across the EU, to effectively
enable enterprise customers and retail voice
carriers to connect to India. VSNL is adding
its capacity to meet the overwhelming
demand for connectivity to India in the
wholesale voice services domain. The
company is also offering
flexible agreements and charging methods to
meet the growing demands of the wholesale
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voice market
Reliance Communication
Year of Establishment 1999
Company Profile Reliance Telecom's cellular services are
available in 340 towns within its eight-circle
footprint. Reliance Infocomm also offered for
the first time in India, mobile data services
though its RWorld mobile portal. This portal
leverages the data capability of the CDMA
1X network. Reliance Infocomm offers a
complete range of telecom services covering
mobile and fixed line telephony including
broadband, national and international long
distance services, data services and a wide
range of value added
services and applications aimed at enhancing
productivity of enterprises and individuals.
Global Presence/ Marketing Network Reliance Communications has IP-enabled
connectivity infrastructure comprising over
150,000 kilometers of fiber-optic cable
systems
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in India, the US, Europe, Middle East, and
the
Asia Pacific region.
Acquisitions / Strategic Alliances International wholesale telecommunications
Service provider, FLAG Telecom
amalgamates with Reliance Gateway, a
wholly owned subsidiary of Reliance
Infocomm in 2004.
Tata Teleservices
Year of Establishment 1996
Company Profile Tata Teleservices is a part of the $12 billion
Tata Group, which has 93 companies, over
200,000 employees and more than 2.3
million
shareholders. Tata Teleservices bouquet of
telephony services includes Mobile services,
Wireless Desktop Phones, Public Booth
Telephony and Wireline services. Other
services
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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.
Global Presence/ Marketing Network Tata Teleservices has presence in across 19
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.
Acquisitions / Strategic Alliances Tata Teleservices has acquired Hughes
Tele.com (India) Limited [now renamed Tata
Teleservices (Maharashtra) Limited] in 2002
Future Prospect The company is also expanding its footprint,
and has paid Rs. 4.17 billion ($90 million) to
DoT for 11 new licenses under the IUC
(interconnect usage charges) regime.
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Vodafone
Name Vodafone
Year of Establishment Acquired majority stake in Hutch Essar in
India,
by buying out complete stake of Hutch in
2007, Essar is still minority stakeholder in
company
Company Profile Vodafone Essar in India is a subsidiary of
Vodafone Group Plc and commenced
operations in 1994 when its predecessor
Hutchison Telecom acquired the cellular
licence
for Mumbai. Vodafone Essar now has
operations in 16 circles covering 86% of
India's
mobile customer base, with over 45.78
million
customers. Vodafone Essar, under the Hutch
brand, has been named the 'Most Respected
Telecom Company', the 'Best Mobile Service
in
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the country'
and the 'Most Creative and Most Effective
Advertiser of
the Year'.
Global Presence/ Marketing Network It has operations in 25 countries across
partner networks with over 200
million
customers worldwide.
Future Prospect Vodafone Essar is expecting to touch over 35
million customers across 400,000 shops and
thousand of hutchs own employees along
with
employees of its business associates.
Idea
Name Idea
Year of Establishment 1995
Company Profile Idea Cellular is part of the Aditya Birla
Group,
which is India's first truly multinational
corporation. Aditya Birla Nuvo Ltd. holds
35.7
per cent, Birla TMT Holdings Ltd. 44.9 per
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cent, Grasim 7.5 per cent, and Hindalco 10.1
per cent in Idea.
Global Presence/ Marketing Network Has 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.
Acquisitions / Strategic Alliances Merged with Tata Cellular Limited in 2001,
thereby acquiring original license for the
Andhra
Pradesh Circle Acquired RPG Cellular
Limited
and consequently the license for the Madhya
Pradesh (including Chattisgarh) Circlein
2001 In
2004 acquired Escotel, incumbent cellular
service provider in Haryana, UP(W) &
Kerala
and new licensee in HP Acquired Escorts
Telecommunications Limited (subsequently
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renamed as Idea Telecommunications
Limited)
in 2006 Merger of seven subsidiaries with
Idea
Cellular Limited in 2007
Future Prospect Idea also plans to enter rural and neglected
circles as a strategy to gain subscribers. Other
advancements in the telecom industry will
help
it cut costs - use of e-mail to send bills to
customers; sharing cell sites; smaller base
transmission stations that will mean lesser
infrastructure requirements and expenses and
independent tower operators. Along with its
plan to go for a national long distance
licence, it
will also look at international long distance in
the near future.
Bharti airtel
Year of establishment 1985
Company Profile Bharti Tele-Ventures Limited was
incorporated
on July 7, 1995 for promoting investments in
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telecommunications services. Its subsidiaries
operate telecom services across India.
Bhartis
operations are broadly handled by two
companies: the Mobility group and the
Infotel
group.
Global Presence/ Marketing Network The mobile business provides mobile & fixed
wireless services using GSM technology
across
23 telecom circles while the Airtel Telemedia
Services business offers
broadband & telephone services in 94 cities.
Acquisitions / Strategic Alliances Bharti Telecom and British Telecom formed
A 51%:49% joint venture, Bharti BT Internet
forproviding Internet services, in 1998 Bharti
Tele-Ventures acquired an effective 32.36%
equity interest in Bharti Mobile(formerly JT
Mobiles), the cellular services provider in
Karnataka and Andhra Pradesh circles in
1999.
Bharti Telesonic entered into a joint venture,
Bharti Aquanet, With SingTel for
establishing a submarine cable landing
station at Chennai in 2001
A 50:50 joint venture between Bharti and
SingTel, to undertake the largest
infrastructure
project between Singapore and Indian
companies in 2001
Future Prospect Bharti Airtel company is planning to set up
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3000 more towers as part of enhancing their
rural coverage and will now focus on rural
and semi-urban areas.
MTS
ABOUT SSTL (SISTEMA SHYAM TELESERVICES)
Sistema Shyam TeleServices:
Sistema Shyam TeleServices Ltd (SSTL) is the fastest growing telecom company in the
competitive Indian market, with over 11 million voice subscribers and over 7 lakh mobile
broadband customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema
company of Russia, to bring the globally acclaimed telecom brand MTS to India.
Millward Brown in its 2011 report on Most Valuable Global Brands has ranked MTS 80th
with a brand value of $10.9 billion.
Sistema Shyam TeleServices Ltd. (SSTL) is a joint venture between Sistema {LSE: SSA}
of Russia, the Russian Federation and the Shyam Group of India. The Russian Federation
holds a 17.14% stake in the company. Sistema is the majority shareholder with a 56.68%
stake, Shyam Group holding a 23.98% stake and the remaining 2.2% being held by the
public.
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HISTORY
MTS was established in October 1993 by Moscow City Telephone Network (MGTS), T-
Mobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens
AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a
majority stake in MTS and has remained the primary owner ever since.
MTS was the first company to launch GSM services in the Moscow region in 1994. In
subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of
smaller independent players and became the leading national mobile operator.
MTS initiated its international expansion in 2002 through the establishment of Mobile
TeleSystems LLC, a joint venture with Beltelecom, the national fixed line operator in
Belarus.
In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in
Ukraine, the biggest CIS market outside of Russia.
MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone
operator in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash
Communications Technologies, Inc., the number one operator in Turkmenistan.
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In September 2007, MTS continued its international expansion through the acquisition of
the leading mobile operator in Armenia, K-Telecom.
In December 2008, MTS started to expose its brand outside the CIS borders. MTS and
Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India,
announces the agreement to allow shayam telelink to use
MTS brand in India. The decision to introduce the brand to India is reflective of the brands
success in the Companys markets of operation since its launch in May 2006. In April
2008, MTS brand was recognized as one of the BRANDZ Top 100 Most Powerful
Brands, a ranking published by the Financial Times and Millward Brown, a leading global
market research and consulting firm.
Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS.
MTS is a multinational corporation of a new type, based in a high-growth emerging market
and simultaneously entering other developing markets with a unified brand. Having been
recognized internationally for corporate governance and transparency, MTS is not only a
leading Russian blue-chip company, but a truly global organization.
MTS Brand
MTS is the global telecom brand of Mobile TeleSystems (MTS) OJSC (NYSE: MBT) of
Russia. In December 2008, Sistema Shyam TeleServices Ltd, a joint venture between
Sistema (LSE-SSA) of Russia and Shyam Group of India, brought the MTS brand into
India under a brand license agreement with Mobile TeleSystems (MTS) OJSC. This
extended the brand of MTS beyond the CIS countries.
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As part of the 2011 Millward Brown report on Most Valuable Global Brands MTS is
ranked 80th with a brand value of $10.9 billion. In 2008, MTS became the first and only
Russian brand to enter BRANDZ Top 100 Most Powerful Brands, a ranking published
by the Financial Times and Millward Brown.
Brand MTS was launched in 2006 in Russia and got built based on its reputation as the
leading telecommunication group offering world class telecom services in Russia, Eastern
Europe and Central Asia.
In India, brand MTS offers voice & data services to over 11 million subscribers and
operates across all 22 telecom circles of India. MTS launched the high-speed mobile
broadband service, MBlaze, in November 2009 and has seen tremendous market
acceptance with over 7 lakh satisfied mobile broadband customers. The high speed mobile
broadband service has been made available in more than 150 towns (Including all Metros)
across the country. In April 2010, MTS is also credited to have launched its LIVE TV and
Video on demand service, aptly called MTS TV for all MBlaze customers.
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SERVICES OF MTS
Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a
multinational corporation of a new type, based in a high-growth emerging market and
simultaneously entering other developing markets with a unified brand.
The decision to introduce the brand to India is reflective of the brands success in the
Companys markets of operation since its launch in May 2006. In April 2008, MTS brand
was recognized as one of the BRANDZ Top 100 Most Powerful Brands, a ranking
published by the Financial Times and Millward Brown, a leading global market research
and consulting firm. In INIDIA MTS provides both voice and data services including tele
and internet services.
TELECOM SERVICES.
DATA SREVICES.
HIGH SPEED INTERNET.
TELECOM SERVICES
In INDIA MTS has launched its CDMA service only providing customers with CDMA
handsets and CDMA sims card. Being a CDMA service provider the voice clarity and
connectivity of MTS is more than just good. This can be justified as MTS has over 11
million subscribers all over INDIA.
Under telecom services MTS provides handsets, sim cards ,paper recharge and E-top
ups .The handsets provided by MTS are bundled with a sim card or MTS connection.
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Separate sims are also provided by MTS. The handsets bundled with sim cards are only
compatible MTS handsets only and they range from Rs599 to Rs5000.
The most popular handset of MTS provided to the retailer is the Rs599
one. The handsets sold along with the sim cards are called H.B.O or hand set bundled offer
below is the scheme offered to the retailer for H.B.Os.
Cost of the handset Rs 654
Billed To the customer Rs 599
F.R.C Rs 85
Reverse to the retailer Rs 180
I.D Claim Rs 10
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Thehandset is billed to the retailer for Rs 654 and he sells it for Rs 599 to the customer on
which the retailer also fills a n FRC or first recharge of Rs 85.This FRC provides the
customer 900 free minutes of call time for three months, these 900 minutes are not
provided to the customer at a single go but are given according to the given break ups.
For three months customer gets per month 300 minutes out of which 200
minutes are allotted for MTS to MTS only (on net) and 100 minutes for MTS to other
providers (off net).
At first look it seems that the retailer is at loss, buying the handset for Rs 654
and selling it at Rs 599 however after filling the FRC of Rs 85 the retailer gets a reverse e-
topup fill of Rs 180 on his MTS sim and also he receives Rs 10 as the ID claim bringing
down his cost to Rs 549.
The other scheme is for non HBO sims(without handsets).
Cost of sim to MTS Rs 30
Cost to the retailer Rs 50
Billed to the customer Rs 100
FRC Rs 251Cash back as e-top up Rs 221
ID Claim Rs 10
In non HBO schemes only sim cards are sold(CDMA sim cards only) which are
billed to the retailer at Rs 50 each. The retailer sells it to the customer at Rs 100, and fills
an FRC of Rs 251,through this FRC the customer gets a total of 2700 minutes for three
months. The breakup of these 2700 minutes is as follows:
For three months the customer will receive 900 minutes (for each month) out of
these 900 minutes, 600 minutes will be for MTS to MTS calling (on net) and 300 minutes
will be for MTS to other (off net).The retailer gets Rs 221 as reverse e-top up fill for the
FRC of Rs 251 and Rs 10 for each ID claim.
REQUIREMENTS FOR ACQUIRING MTS CONNECTION:
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Step 1: The document checklist
Passport-sized Photograph that has been self-attested
A copy of Proof of Identification (POI):
PAN Card or
Drivers License or
Voters ID Card or
Passport
And also a copy of Proof of Address (POA):
Ration Card or
Drivers License or
Voters ID Card or
Passport
Step 2: MTS PROVIDES TWO OPTIONS TO ITS
CUSTOMERS.
1. MTS CONNECTION WITH HANDSET : Being a CDMA company MTS
provides its connections with handsets varying in range from Rs.599 to Rs
5000.The Rs.599 variant being the most popular as it is one of the cheapest
handset available along with connection in the market.
2. MTS connection without the handsets : MTS also provides open sim cards
which can be used on a CDMA mobile phone providing greater flexibility
to its customers
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MTS Tariff guide
For paper and other E-Recharge various denominations are offered by MTS below is the
complete tariff guide of MTS.
Lifelong Validity * (till 24th Jan 2028) Rates (Rs.)
SIM 49
Talk Value# 0
Call Charges (Rs./min)
Local
MTS Mobiles 1paisa/ second
Other Mobiles & Landlines 1paisa/ secondSTD
All Mobiles and Landlines 1paise/ second
Message Charges (Rs./SMS)
SMS
Local Re.1
National Rs. 1.5
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International Rs.5
*Minimum of Rs.200 cumulative recharge over a period of 6 months. #As per
first recharge (FRC)
MTS OFFERS for New Customers - First Recharge Coupons
FRC 203
Call Charges (Rs./min)
MRP 203
Talktime 50*
ST 18.96
All Local & STD Calls 1p/2sec#
Validity 6 months
Message Charges (Rs./SMS)
SMS
Local Rs.1
National Rs.1.5
International Rs.5
FRC 55
Call Charges (Rs./min)MRP Rs. 55
Talktime Rs. 0
Validity 365 Days
Offer
Every time 25% extra Talk Value of recharged RCV
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FRC 97
Call Charges (Rs./min)
MRP Rs. 97
Talktime Rs. 0
Service Tex Rs.9.06
Processing Fee Rs. 87.94
Validity 6 months
MTS - MTS Local 1p/4s
MTS Others 1p/2s
MTS - All STD 1p/s
Top UP's
MRP Rs.
Service Tax
Rs.
Processing Fee Rs. Talktime Rs. Remarks
10 0.93 0 9.07 Core Validity
20 1.87 0 18.13 Core Validity
50 4.67 0 45.33 Core Validity
75 7.00 0 68.00 Core Validity
100 9.34 0 90.66 Core Validity
Top Up 150
Call Charges (Rs./min)
MRP Rs. 150
Talktime Core TT Rs. 100 + Promo TT Rs.100
Promo TT Validity 30 Days
Service Tex Rs. 14.01
Processing Fee Rs. 35.99
Top Up 80
Call Charges (Rs./min)
MRP Rs. 80
Talktime Promo TalkTime Rs.100
Promo TT Validity 30 Days
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Service Tex Rs.7.47
Processing Fee Rs. 72.53
STV Type MRP Validity Benefit
SMS offer 29 30 Days100 local/ national SMS per
day
On net offer 79 30 Days Unlimited
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HIGH SPEED INTERNET
MBlaze combines the convenience of USB Modems with great utility value. MBlaze
Premium USB modems also functions as your data storage device. Choose your MBlaze,
and just plug it in to start surfing.
MBlaze is a highspeed wireless broadband service using CDMA 1x RTT network
or EVDO data network it can provide a speed upto 3.1 mbps.
CHARACTERSTICS OT M BLAZE:
Plug & Play
Just plug your MBlaze USB modem and hit the Welcome Page.
On the Welcome Page you can view:
Your account balance
Shortcuts to your favorite websites
You can also recharge your account or opt for the MBlaze of your choice
Choose your Top-Up
All circle specific voice tops applicable.
Available on e-recharge and web recharge
Charges to be deducted from your existing MBlaze account balance
Roaming charges: No roaming charges on MTS network.
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OBJECTIVES OF THE STUDY
The objective of the study aims to cover the following aspects of the project.
The main objective of SUMMER INTERNSHIP PROGRAM was to find out the
causes for hindrance of MTS and to find out the demand of retailers and also get
feedbacks from them regarding the service of MTS.
The project aims to study the process used by sales executives of MTS to service
the retailers.
To check the specific need of retailers regarding services.
To find out he customer preference.
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods/techniques but also the methodology. Researchers not only need to know
how to develop certain indices or tests, how to calculate the mean, the mode, the median or
the standard deviation or chi-square, how to apply particular research techniques, but they
also need to know which of these methods or techniques, are relevant and which are not,
and what would they mean and indicate and why. Researchers also need to understand the
assumptions underlying various techniques and they need to know the criteria by which
they can decide that certain techniques and procedures will be applicable to certain
problems and others will not. All this means that it is necessary for the researcher to design
his methodology for his problem as the same may differ from problem to problem. For
example, an architect, who designs a building, has to consciously evaluate the basis of his
decisions, i.e., he has to evaluate why and on what basis he selects particular size, number
and location of doors, windows and ventilators, uses particular materials and not others and
the like. Similarly, in research the scientist has to expose the research decisions to
evaluation before they are implemented. He has to specify very clearly and precisely what
decisions he selects and why he selects them so that they can be evaluated by others also.
From what has been stated above, we can say that research methodology has many
dimensions and research methods do constitute a part of the research methodology. The
scope of research methodology is wider than that of research methods. Thus, when we talk
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of research methodology we not only talk of the research methods but also consider the
logic behind the methods we use
in the context of our research study and explain why we are using a particular method or
technique and why we are not using others so that research results are capable of being
evaluated either by the researcher himself or by others. Why a research study has been
undertaken, how the research problem has been defined, in what way and why the
hypothesis has been formulated, what data have been collected and what particular method
has been adopted, why particular technique of analysing data has been used and a host of
similar other questions are usually answered when we talk of research methodology
concerning a research problem or study
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SCOPE OF THE STUDY
The scope of the study has been limited to sample size of 150 respondents due to the time
and cost constraints. However, the scope of the study with respect to geographical area is
restricted to the city of Haldwani, Nainital including or out off city limits like Lalkuan
,Bhowali, Bhimtal.
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NATURE OF STUDY
It was an exploratory research and the basic aim of exploratory research is to gain
familiarity with the phenomena or to achieve new insights into it. So the study has tried to
find, who have the maximum influence on the decision making of the retailers and the
various methods through which the sales of MTS could be increased.
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RESEARCH INSTRUMENT:
As we know there are three ways of collection of data:
1. EXPERIMENTAL RESEARCH METHODS
2. OPINION BASED RESEARCH METHODS
3. OBSERVATIONAL RESEARCH METHODS
EXPERIMENTAL RESEARCH METHODS
The first method is the straightforward experiment, involving the standard practice of
manipulating quantitative, independent variables to generate statistically analyzable data.
Generally, the system ofscientific measurements is interval or ratio based. When we talk
about scientific research methods, this is what most people immediately think of, because
it passes all of the definitions of true science. The researcher is accepting or refuting the
null hypothesis.
The results generated are analyzable and are used to test hypotheses, with statistics giving a
clear and unambiguous picture.
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This research method is one of the most difficult, requiring rigorous design and a great deal
of expense, especially for larger experiments. The other problem, where real life organisms
are used, is that taking something out of its natural environment can seriously affect its
behavior.
It is often argued that, in some fields of research, experimental research is too accurate. It
is also the biggest drain on time and resources, and is often impossible to perform for some
fields, because ofethical considerations.
OBSERVATIONAL RESEARCH METHODS
Observational research is a group of different research methods where researchers try to
observe a phenomenon without interfering too much.
Observational research methods, such as the case study, are probably the furthest removedfrom the established scientific method. This type is looked down upon, by many scientists,
as quasi-experimental research, although this is usually an unfair criticism. Observational
research tends to use nominal or ordinal scales of measurement.
Observational research often has no clearly defined research problem, and questions may
arise during the course of the study. For example, a researcher may notice unusual behavior
and ask, What is happening? or Why?
Observation is heavily used in social sciences, behavioral studies and anthropology, as a
way of studying a group without affecting their behavior. Whilst the experiment cannot be
replicated orfalsified, it still offers unique insights, and will advance human knowledge.
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Case studies are often used as a pre-cursor to more rigorous methods, and avoid the
problem of the experiment environment affecting the behavior of an organism.
Observational research methods are useful when ethics are a problem.
OPINION BASED RESEARCH METHODS
Opinion based research methods generally involve designing an experiment and collecting
quantitative data. For this type of research, the measurements are usually arbitrary,
following the ordinal or interval type.
Questionnaires are an effective way of quantifying data from a sample group, and testing
emotions or preferences. This method is very cheap and easy, where budget is a problem,
and gives an element of scale to opinion and emotion. These figures are arbitrary, but at
least give a directional method of measuring intensity.
Quantifying behavior is another way of performing this research, with researchers often
applying a numerical scale to the type, or intensity, of behavior by definition, this
experiment method must be used where emotions or behaviors are measured, as there is no
other way of defining the variables.
Whilst not as robust as experimental research, the methods can be replicated and the results
falsified.
Questionnaire Method:
This Method of data collection is quite popular, particularly in case of big enquiries. In this
method a questionnaire is provided to a person concerned with the request to answer the
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question and return the questionnaire. A questionnaire consists of number of printed or
typed in definite form or set of forms. In observation method only the effect can be
observed while the case remains unknown.
More ever observation method requires special observational skill on the part of the
Researcher where as through questionnaire asking to the people who are thought to have
the desired information collection of data becomes easy. Questionnaire is set of question
with some space for answer. The questionnaire for the report consists of open ended, closed
ended type of questions.
TYPE OF RESEARCH
Exploratory research is also known as qualitative research. This type of research is used to
discover new relationship. It looks of hypothesis tentative answers to questions that solves
as a guide for most research project. This project is also exploratory in nature. I have
conducted research with the help of questionnaire. I have also taken personal interview
with different retailers and customers who provide key information about their level of
satisfaction and grievances. There were 8 different questions in my questionnaire which
focused problem solving seeking objective. This report is prepared on the basis of answer
given by various retailers.
1. Type of research: Exploratory research
2. Data Source: Primary Data
3. Data Collection Techniques: Questionnaire Method and personal interview.
4. Contact Method: Personal Interview
5. Sample Size: 150
6. Sampling Procedure: Convenience Sampling and Random sampling.
PRIMARY DATA
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Primary Data is the data which is directly taken by the company in this case however the
data is collected from various retailers of Nainital, Bheemtal, Bhowli, Haldwani and
lalkuan.
DATA ANALYSIS:
Total 70
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Total 28
Total 33PRC(Paper recharge coupon):-
Inferences:
From these graphs it is clearly defined that the number of paper recharge coupon and sim
card is less compare to others E-top up and handsets some reason are:-
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1. These are CDMA sims so the customer need to have special kind of mobile which
supports CDMA sim as well thats why retailer not prefer to have the sim.
2. The reason for paper recharge coupon to be less is that the retailer get only profit as form
of E-top up so they dont prefer PRC.
SWOT ANALYSIS
Following is the SWOT Analysis for MTS
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STRENGTHS
Focused on telecom.
Good voice clarity.
High speed internet connectivity.
Pan India presence.
WEAKNESS
Lack of advertisements.
Lack of retailer education.
Slow and irregular distribution channel.
Weak market presence.
OPPORTUNITIES
Attractive schemes and cheap handsets are
attracting customers.
MTS can capitalize on the sloppy CDMA
market of India with attractive schemes and
network.
THREAT
Biggest threat is the weak and disruptive
distribution channel especially in the hillyareas which makes the retailers skeptic about
the company.
Threat from already existing CDMA
companies. Especially those companies which
provide CDMA as well as GSM services.
Cheap hand sets maybe attracting customers
but they lack in performance, which leads to
customer dissatisfaction,there by tarnishing the
companies image in the market.
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LIMITATIONS:
Every market survey faces certain limitations so is true with this satisfaction survey which
faces two major limitations
1. Validity
2. Reliability
VALIDITY: This survey does not involve the whole population only a part of the
population is taken for survey which comprises the sample size. This satisfaction survey is
only true to the sample size that has been covered, the preferences satisfaction
dissatisfaction and feedback may vary with different sample sizes and a complete
conclusion of the whole population cannot be drawn with this satisfaction survey.
RELIABILITY: The satisfaction survey is only true for a particular period of time as with
time the taste and preferences of the people tend to change thus limiting the scope of the
survey.
Suggestion:
1. Increase the market promotion to aware more and more customers about the
CDMA networks.
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2. Using an aggressive marketing approach would prove more beneficial in solidifying
the image of MTS.
3. Improvement in the network reception especially in outskirts of the city.
4. Retailers want the monetary benefit on sale of handsets and sim rather than the
increase in e-top-up.
5. CDMA market is slowly becoming obsolete.
6. Sales promotion activities should be encourage more and more in the region of
haldwani, bhimtal and bhowali.
7. To improve the Brand image of MTS, company should support and sponsor the
local tournaments.
8. Company should have the proper distribution channel.
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BIBLOGRAPHY:
Market Management By Philip Kotl;er
www.google.com
www.mtsindia.co.in
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