customer perception towards videocon communication

7/28/2019 customer perception towards videocon communication

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CHAPTER 1

INTRODUCATION


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1.1 INTRODUCATION OF TOPIC

Perception is our sensory experience of the world around us and involves both therecognition of environmental stimuli and actions in response to these stimuli. Throughthe perceptual process, we gain information about properties and elements of the

environment that are critical to our survival. Perception not only creates our experience ofthe world around us; it allows us to act within our environment Perception is the processby which organisms interpret and organize sensation to produce a meaningful experienceof the world. Sensation usually refers to the immediate, relatively unprocessed result ofstimulation of sensory receptors in the eyes, ears, nose, tongue, or skin. Perception, on theother hand, better describes one's ultimate experience of the world and typically involvesfurther processing of sensory input. In practice, sensation and perception are virtuallyimpossible to separate, because they are part of one continuous process. Perception inhumans describes the process whereby sensory stimulation is translated into organizedexperience. The perceptual process is a sequence of steps that begins with theenvironment and leads to our perception.

Positive effects of increasing market share on customer perception:

Increasing market share can send out positive signals by acting as an indicator of superiorquality that is recognised by more and more other customers. This effect is particularlystrong for premium priced products. Customers normally assume that a product must beof exceptional quality if it can gain such an unexpected market success despite its highprice. Many brands offer positive emotional benefits of using a product that is popular inthe markets. The value of a product or service can rise through increasing number ofusers of the same product, e.g. number of members of an online community, betteravailability of software for popular computer systems.

Negative effects of increasing market share on customer perception :

For premium and luxury products, customers may translate an increasing market shareinto a loss of exclusivity and thus perceive it as less valuable. The quality of servicesmay suffer if they are consumed by increasing numbers of users. Diseconomies of scalesand congestions can be observed with busy airports and many other services so thatcustomers may look out for other providers that promise more timely service andconvenience.

The concept of customer perception does not only relate to individual customers in

consumer markets. It is also valid in business to business situations. For example, acompetitor benchmarking survey of a large industrial supplier revealed that the marketleader, although recognised for excellent quality and service and known to be highlyinnovative, was perceived as arrogant in some reg


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1.2 INDUSTRY PROFILE

HISTORY OF INDIAN TELECOMMUNICATION

India is the worlds fastest growing industry in the world in terms of number of wireless

connections after China, with 811.59 million mobile phone subscribers. According to the

world telecommunications industry, India will have 1.200 billion mobile subscribers by

2013.Furthermore, projections by several leading global consultancies indicate that the

total number of subscribers in India will exceed the total subscriber count in the China by

2013.Well Postal means of communication was the only mean communication until the

year 1850. In 1850 experimental electric telegraph started for first time in India

between Calcutta (Kolkata) and Diamond Harbor (southern suburbs of Kolkata, on the

banks of the Hooghly River).In 1851, it was opened for the use of the British East India

Company. Subsequently construction of telegraph started throughout India. A separate

department was opened to the public in 1854. Dr. William OShaughnessy, who

pioneered the telegraph and telephone in India, belonged to the Public Works

Department, and worked towards the development of telecom. Calcutta or the-then

Kolkata was chosen as it was the capital of British India. In early1881, Oriental

Telephone Company Limited of England opened telephone exchanges at Calcutta

(Kolkata), Bombay (Mumbai), Madras (Chennai) and Ahmadabad. On the 28th January

1882 the first formal telephone service was established with a total of 93 subscribers.

From the year 1902 India drastically changes from cable telegraph to wireless telegraph,

radio telegraph, radio telephone, trunk dialing. Trunk dialing used in India for more than

a decade, were system allowed subscribers to dial calls with operator assistance. Later

moved to digital microwave, optical fiber, earth station. During British period all major

cities and towns in India were linked with telephones. In the year 1975 Department of

Telecom (DOT) was responsible for telecom services in entire country after separation

from Indian Post & Telecommunication. Decade later Mahanagar Telephone Nigam

Limited (MTNL) was chipped out of DOT to run the telecom services of Delhi and

Mumbai. In 1990s the telecom sector was opened up by the Government for private

investment. In1995 TRAI (Telecom Regulatory Authority of India) was setup. This

reduced the interference of Government in deciding tariffs and policy making. The

Government of India corporatized the operations wing of DOT in 2000 and renamed


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Department of Telecom as Bharat Sanchar Nigam Limited (BSNL).In last 10 years many

private operators especially foreign investors successfully entered the high potential

Indian telecom market. Globally acclaimed operators like Telenor, NTT Docomo,

Vodafone, Sistema, SingTel, Maxis, Etisalat invested in India mobile operators. Pager

communication successful launched in India in the year 1995. Pagers were looked upon

as devices that offered the much needed mobility in communication, especially for

businesses. Motorola was a major player with nearly 80 per cent of the market share. The

other companies included Mobilink , Page link, BPL, Usha Martin telecom and Easy call.

Pagers were generally worn on the belt or carried in the pocket. The business peaked in

1998 with the subscriber base reaching nearly 2 million. However, the number dropped to

less than 500,000 in 2002. The pager companies in India were soon struggling to

maintain their business. While 2-way pagers could have buffered the fall, the pager

companies were not in a position to upgrade their infrastructure to improve the ailing

market. The Indian Paging Services Association was unable to support the industry.

Pager companies in India also offered their services in regional languages also. However,

the end had begun already. By 2002, Motorola stops making or servicing pagers. When

mobile phones were commercially launched in India, the pager had many advantages to

boast. Pagers were smaller, had a longer battery life and were considerably cheaper.

However, the mobile phones got better with time and continuously upgraded themselves.

Mobile Communication

First mobile telephone service on non-commercial basis started in India on 48th

Independence Day at countrys capital Delhi. The first cellular call was made in India on

July 31st, 1995 overModi Telstras Mobile Net GSM network of Kolkata. Later mobile

telephone services are divided into multiple zones known as circles. Competition has

caused prices to drop and calls across India are one of the cheapest in the world. Most of

operator follows GSM mobile system operate under 900MHz bandwidth few recent

players started operating under 1800MHz bandwidth. CDMA operators operate under

800Mhz band, they are first to introduce EVDO based high speed wireless data services

via USB dongle. In spite of this huge growth Indian telecom sector is hit by severe

spectrum crunch, corruption by India Govt. officials and financial troubles. In 2008, India


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entered the 3G arena with the launch of 3G enabled Mobile and Data services by

Government owned MTNL and BSNL. Later from November 2010 private operators

started to launch their services.

Broadband communication

After US, Japan, India stands in third largest Internet users of which 40% of Internet used

via mobile phones. India ranks one of the lowest provider of broadband speed as

compared countries such as Japan, India and Norway. Minimum broadband speed of

256kbit/s but speed above 2Mbits is still in a nascent stage. Year 2007 had been declared

as Year of Broadband in India. Telcos based on ADSL/VDSL in India generally have

speeds up to 24Mbit max while those based on newer Optical Fiber technology offer up

to 100Mbits in some plans Fiber-optic communication. Broadband growth has been

plagued by many problems. Complicated tariff structure, metered billing, High charges

for right of way, Lack of domestic content, non implementation of Local-loop unbundling

have all resulted in hindrance to the growth of broadband. Many experts think future of

broadband is on the hands of wireless factor. BWA auction winners are expected to roll

out LTE and WIMAX in India in 2012.

Next Generation Network (NGN)

Next Generation Networks, multiple access networks can connect customers to a core

network based on IP technology. These access networks include fiber optics or coaxial

cable networks connected to fixed locations or customers connected through Wi-Fi as

well as to 3G networks connected to mobile users .As a result, in the future, it would be

impossible to identify whether the next generation network is a fixed or mobile network

and the wireless access broadband would be used both for fixed and mobile services. It

would then be futile to differentiate between fixed and mobile networks both fixed and

mobile users will access services through a single core network. Cloud based data

services are expected to come.

Indian Satellites


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India has launched more than 50 satellites of various types, since its first attempt in 1975.

The organization responsible for Indian satellites is the Indian Space Research

Organization (ISRO). Most Satellites have been launched from various vehicles,

including American, Russian, European satellite-launch rockets, and the U.S. Space

Shuttle. First Indian satellite Aryabhata on 19th April 1975, later Bhaskara, Rohini,

INSAT, Edusat, IRS, GSAT, Kaplan, Cartosat, IMS, Chandrayaan, Resource Sat, RiSat,

ANUSAT, etc.

Evolution of Telecommunication in India

Indian telecom sector is more than 165 years old. Telecommunications was first

introduced in India in 1851 when the first operational land lines were laid by the

government near Kolkata (then Calcutta), although telephone services were formally

introduced in India much later in 1881. Further, in 1883, telephone services were merged

with the postal system. In 1947, after India attained independence, all foreign

telecommunication companies were nationalized to form the Posts, Telephone and

Telegraph (PTT), a body that was governed by the Ministry of Communication. The

Indian telecom sector was entirely under government ownership until 1984, when the

private sector was allowed in telecommunication equipment manufacturing only. The

government concretized its earlier efforts towards developing R&D in the sector by

setting up an autonomous body Centre for Development of Telemetric (C-DOT) in

1984 to develop state-of-the-art telecommunication technology to meet the growing

needs of the Indian telecommunication network. The actual evolution of the industry

started after the Government separated the Department of Post and Telegraph in 1985 by

setting up the Department of Posts and the Department of Telecommunications (DOT).

The entire evolution of the telecom industry can be classified into three distinct phases.

Phase I- Pre-Liberalization Era (1980-89) Phase II- Post Liberalization Era (1990-99) Phase III- Post 2000 Until the late 90s the Government of India held a monopoly on all types of

communicationsas a result of the Telegraph Act of 1885. As mentioned earlier

in the chapter, until the industry was liberalized in the early nineties, it was a


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heavily government-controlled and small-sized market; Government policies have

played a key role in shaping the structure and size of the Telecom industry in

India. As a result, the Indian telecom market is one of the most liberalized

markets in the world with private participation in almost all of its segments. The

New Telecom Policy (NTP-99) provided the much needed impetus to the growth

of this industry and set the trend for liberalization in the industry.

Current Status

Globalization has made telecommunication an integral part of the infrastructure of the

Indian economy. The telecom sector in India has developed as a result of progressive

regulatory regime. According to the TRAI, the total gross revenue of the Indian telecom

services industry was Rs 1,524 bn in FY09 up from Rs 1,291 bn in FY08 registering a

growth of 18.03% over FY08 and its subscriber base grew by 43% over FY08 to touch

429.70 mn subscribers in FY09.The telecom sector in India experienced a rapid growth

over the past decade on account of regulatory liberalization, structural reforms and

competition, making telecom one of the major catalysts in Indias growth story.

However, much of this growth can be attributed to the unprecedented growth in mobile

telephony as the number of mobile subscribers grew at an astounding rate from 10

million in 2002 to 392 million in 2009. Besides, the growth in the service and IT sector

also increased the prominence of the telecom industry in India. Telecom has emerged as

a key infrastructure for economic and consumer growth because of its multiplier effect

and the fact that it is beneficial to trade in other industries. The contribution of the sector

to GDP has been increasing gradually (its contribution in GDP has more than doubled to

2.83% in FY07 from 1.0% in FY92).Telecom is one of the fastest-growing industries in

India; on an average the industry added 8 million wireless subscribers every month in

FY08. The government had set a target of 500 million telecom connections by 2010.

However, according to the TRAI, the total subscriber base (wireless and wire line) in the

industry crossed the 500-mn-mark and reached 509.03 mn by the end of September

2009, which took India to the second position in terms of wireless network in the world

next only to China. Prior to liberalization, the telecom sector was monopolized by the

public sector and recorded marginal growth; in fact, during 1948-1998, the incremental


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telecommunication industry in the country was just 1.92%. However, the introduction of

NTP99 accelerated the growth of the sector and the telecommunication industry

increased from 2.33 in 1999 to 36.98 in 2009; however, much of this growth was

brought about by the NTP-99 policy changes such as migration from fixed license fee to

revenue sharing regime and cost-oriented telecom tariffs. From 2003 onwards the

government has taken certain initiatives such as unified access licensing regime, reduced

access deficit, introduction of calling party pays (CPP) and revenue sharing regime in

ADC that has provided further impetus to the sector. The Indian telecom industry is

characterized with intense competition, and continuous price wars. Currently, there are

around a dozen telecom service providers who operate in the wired and wireless

segment. The government has been periodically implementing suitable fiscal and

promotional policies to boost domestic demand and to create volumes for the industry.

The Indian telecom industry has immense growth potential as the telecommunication

industry in the country is just 36 as compared with 60 in the US, 102 in the UK and 58

in Canada. The wireless segment growth has played a dominant role in taking the

telecommunication industry to the current levels. In the next few years, the industry is

poised to grow further; in fact, it has already entered a consolidation phase as foreign

players are struggling to acquire a pie in this dynamic industry.

Role in Indias Development

Contribution to GDP

According to the UNCTAD, there is a direct correlation between the growth in mobile

telecommunication industry and the growth in GDP per capita in developing countries,

which tend to have a high percentage of rural population. The share of the telecom

services industry in the total GDP has been rising over the past few years (the telecom

sector contribution in GDP went up from 2.52% in FY05 to 2.83% in FY07)

Employment

The Indian telecommunication industry employs over 400,000 direct employees and

about 85% of these employees are from government-owned companies. The ratio of


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number of subscribers to employees, an indication of efficiency and profitability, is

much higher for private companies than for government companies.

Foreign Direct Investment (FDI)

Foreign direct investment has been one of the major contributors in the growth of the

Indian economy, and therefore, the need for higher FDI is felt across sectors in the

Indian economy. The telecom sector has played a crucial role in attracting FDI in India.

The share of telecom sector in the total FDI inflows in India has gone up to 10% in

FY09 as compared with just 3% in FY05.The telecom sector requires huge investments

for its expansion as it is capital-intensive and FDI plays a vital role in meeting the fund

requirements for expansion of the telecom sector. Telecom accounts for almost 10% of

the total FDI inflows in the country and has been the third-largest sector to attract FDI in

India in the post-liberalization era

The Indian telecom industry has been an attractive avenue for foreign investors over the

years. As per DIPP figures, the cumulative FDI inflow during August 1991 to June 2009

period, in the telecommunication sector amounted to US$ 113 bn. FDI calculation takes

into account radio paging, cellular mobile and basic telephone services in the


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telecommunication sector. In the 2004-05 Budget, the government raised the FDI limit

from 49% to 74% in the telecom services segment subject to retention of local

management control. According to the new norms, 26% share out of the 74% should be

held by an Indian company or an Indian citizen with Indian management. Further, 100%

FDI is permitted in telecom manufacturing, category I infrastructure providers, ISPs

without gateway, call centers and IT-enabled services. Further, direct or indirect FDI up

to 74% is permitted subject to licensing and security requirements for ISPs with

gateways, radio paging operators and category II infrastructure providers. The relaxation

in FDI norms has attracted many foreign telecom majors to the sector. The presence of

foreign players has not only encouraged faster infrastructure development and up

gradation but also has opened up the domestic industry to foreign competition. Since

2004, there has been a large inflow of FDI in the sector. During 2004-05 and 2005-06, a

period during which the FDI norms were relaxed, the FDI inflow grew by an astounding

300% to US$ 624 mn in 2005-06 from merely US$ 125 mn in 2004-05. The inflow of

FDI has provided tremendous impetus to the sector in the past few years and the

attractiveness of the sector has kept the FDI inflows growing steadily. During FY09 the

FDI in the telecom sector at US$ 2,558 mn was 103% higher than that seen in FY08 at

US$ 1,261 mn. Further, the FDI in the sector has already reached US$ 2010 mn for a six

month period of FY10 (Apr-Sep 09) and is expected to surpass the total FDI for

FY09.The governments liberalized FDI policies have resulted in several foreign

companies entering into the Indian markets. The influx of foreign players in the Indian

telecom industry has led to capacity creation, and better infrastructure, which in turn has

bettered the network quality. The rise in FDI has also enabled technology transfer,

market access and has improved organizational skills; going forward, FDI could be used

for providing telecom services to rural areas, where telecommunication industry is still

very low. The change in FDI policy that has raised the FDI limit from 49% to 74% for

the sector has made it more attractive for foreign players. In the long run the growth

prospects of telecom players that have foreign partners will improve and other players

will get new avenues to raise capital.


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Growth of IT and Financial Sector

India has entered the league of countries with the most-advanced telecommunication

infrastructure after the industry was deregulated. Furthermore, deregulation has

stimulated Indias economic growth through industry growth and through rise in

investments. It is evident that a well-developed communication sector improves access

to social networks, lowers transaction costs, increases economic opportunities, widens

markets, and provides better access to information, healthcare and educational services.

The growth in Indian telecom sector has been concomitant with overall growth in GDP,

government revenue, employment et al. Besides, telecommunication has increased

efficiency, reduced transaction costs, attracted investments and has created new

opportunities for business and employment. The NTP-99 was particularly helpful for theBPO industry as it ended the government monopoly in international calling by

introducing IP telephony. After the introduction of IP telephony, there was rapid growth

in the number of data processing centers and inbound/outbound call centers, which

ultimately led to the outsourcing revolution in India. The telecom sector has been

instrumental in creating jobs for a vast pool of talented and knowledge professionals in

the IT and BPO industry, which thrives on reliable telecommunication infrastructure.

India has become an important outsourcing destination for the world and the boom in

this sector also has transformed Indias economic dynamics. The evolution of telecom

sector has brought about a revolutionary change in the way some businesses operate.

Another beneficiary of the telecom revolution is the financial services industry, which

has been on a growth trajectory. The progress and quality of the financial sector has

been a key factor that has driven the pace and diversity of the real economy. India has an

extensive and well-developed financial sector with wide and sophisticated banking

network. Banking in India has become service-oriented, and has matured greatly from

the days of walk-in customers to the present situation when banks have migrated to a

24hour banking platform to attract customers; however, this disintermediation in the

business has led banks to be extremely prudent in terms of their internal operations and

has led them to adopt newer products and delivery channels. Further, with introduction

of internet & mobile banking the long at the banks are slowly becoming a thing of the


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past. Both the financial and the IT segments rely on good domestic as well as

international network connectivity; therefore, there is a need for a sound

telecommunication network.

Factors Facilitating Growth of the Sector

The phenomenal growth in the Indian telecom industry was brought about by the

wireless revolution that began in the nineties. Besides this, the following factors also

aided the growth of the industry.

Liberalization

The relaxation of telecom regulations has played a major role in the development of theIndian telecom industry. The liberalization policies of 1991 and the consequent influx of

private players have led the industry on a high growth trajectory and have increased the

level of competition. Post-liberalization, the telecom industry has received more

investments and has implemented higher technology.

Increasing Affordability of Handsets

The phenomenal growth in the Indian telecom industry was predominantly aided by themeteoric rise in wireless subscribers, which encouraged mobile handset manufacturers

to enter the market and to cater to the growing demand. Further, the manufacturers

introduced lower-priced handsets with add-on facilities to cater to the increasing number

of subscribers from different strata of the society. Now even entry-level handsets come

with features like colored display and FM radio. Thus, the falling handset prices and the

add-on features have triggered growth of the Indian telecom industry.

Prepaid Cards Bring in More Subscribers

In the late nineties, India was introduced to prepaid cards, which was yet another

milestone for the wireless sector. Prepaid cards lured more subscribers into the industry

besides lowering the credit risk of service providers due to its upfront payment concept.

Prepaid cards were quite a phenomenon among first-time users who wanted to control


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their bills and students who had limited resources but greater need to be connected. Pre-

paid cards greatly helped the cellular market to grow rapidly and cater to the untapped

market. Further, the introduction of innovative schemes like recharge coupons of smaller

denominations and life time incoming free cards has led to an exponential growth in the

subscriber base.

Introduction of Calling Party Pays (CPP)

The CPP regime was introduced in India in 2003 and under this regime, the calling party

who initiated the call was to bear the entire cost of the call. This regime came to be

applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India

had followed the Receiving Party Pays (RPP) system where the subscriber used to pay

for incoming calls from both mobile as well as fixed line networks. Shifting to the CPP

system has greatly fuelled the subscriber growth in the sector.

Changing Demographic Profile

The changing demographic profile of India has also played an important role in

subscriber growth. The changed profile is characterized by a large young population, a

burgeoning middle class with growing disposable income, urbanization, increasing

literacy levels and higher adaptability to technology. These new features have multiplied

the need to be connected always and to own a wireless phone and therefore, in present

times mobiles are perceived as a utility rather than a luxury.

Increased Competition & Declining Tariffs

Liberalization of the telecom industry has fuelled intense competition, especially in the

cellular segment. The ever-increasing competition has led to high growth of subscribers

and has put pressure on tariffs, which have seen a sharp drop over the years. When the

cellular phones were introduced, call rates were at a peak of Rs 16 per minute and there

were charges for incoming calls too. Today, however, incoming calls are no longer

charged and outgoing calls are charged at less than a rupee per minute. Thus, the tariff

war has come a long way indeed. Increased competition and the subsequent tariff war


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has acted as a major catalyst for attracting more subscribers. Apart from these major

growth drivers, an improved network coverage, entry of CDMA players, growth of

value-added services (VAS), advancement in technology, and growing data services

have also driven the growth of the industry.

Mobile Number Portability (MNP)

India is a fast growing in terms of mobile usage. A mobile phone has become a necessity

in todays lifestyle. As a result India has turned out to be a competing hub for many

mobile companies. Mobile Number Portability (MNP) was launched in India in January

2011, which allows the user to retain the existing number while giving him an option to

change the subscriber. India, the worlds second largest market for mobile phones is

foretasted to become an even larger market with unit shipments of 209 million each year

by 2016 at a compound annual growth rate of 12% from 2010 to 2016, according a

market study. Indias mobile market has changed with local mobile companies drastically

cutting into the market of the dominant companies like Nokia .The mobile entertainment

industry in India is also witnessing significant growth and a latest research forecasts this

market to reach $5 billion in 2015 from $1.2 billion in 2009, growing at a CAGR of 26%

Telecom Industry in IndiaLaggards Losing out Badly

Given below is a list of the telecom companies in India some are State owned, some

private & some formed in collaboration with other foreign companies. However, in recent

years, due immense competition in Indian telecom sector, the State owned MTNL has

been losing revenue and market share heavily. On February 23, 2011, The Department of

Telecommunications (DOT) said it wanted to revive a proposal for the merger of state-

owned operators BSNL and MTNL, as they have complimentary operations and can

combine their strengths for synergies. Note BSNL and MTNL have been affected by bad

management, an apathetic government and private competitors who have undermined the

interests of BSNL/MTNL by underhand Means. BSNL which was the No.1 player with

an impregnable position has become an also ran as its capacity expansion was dogged by

motivated red tape. Bharat Sanchar Nigam Ltd. One of the largest & leading public

sector units in India. It was formed in October, 2000, is Worlds 7th largest


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Telecommunications Company providing comprehensive range of telecom services in

India BSNL is the only service provider, making focused efforts and planned initiatives

to bridge the Rural-Urban Digital Divide ICT sector. Its wide network is present across

India except Delhi & Mumbai. BSNL cellular service, Cell One, has 55,140,282 2G

cellular customers and 88,493 3Gcustomers as on November 2009. It has 35.1 million

Basic Phone subscribers form. 85 per cent share of the subscriber base and 92 percent

share in revenue terms. BSNL has more than 2.5 million Internet Customers who access

Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet

(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. Mahanagar

Telephone Nigam Ltd MTNL)It is a state-owned telecommunications service provider

in the metro cities of Mumbai and New Delhi in India. The company was a monopoly

until 1992, when the telecom sector was opened to other service providers. MTNL

provides fixed line telephones, cellular connection of both GSM & CDMA and internet

services through dialup and DSL Broadband internet. MTNL also provides other

services such as VPN, Internet Telephony- VOIP and leased lines through BSNL and

VSNL. MTNL has also unveiled very cost-effective Broadband Internet access plans

(TriBand) targeted at homes and small businesses. MTNL has suffered even more than

BSNL and just about survives in a pathetic condition.

Private Indian owned Companies

Reliance Communications Ltd.One of the major Indian telecommunication companies

headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with

more than 128 million subscribers. It is Indias largest and only telecom operator offering

nationwide CDMA, GSM and 3G mobile services. Anil Dhirubhai Ambani Group, an

offshoot of the Reliance Group, ranks among Indias top three privat e sector business

houses in terms of net worth. The group has business interests that range from

telecommunications (Reliance Communications Limited) to financial services (Reliance

Capital Ltd) and the generation and distribution of power (Reliance Infrastructure

Limited). Reliance Communications was the first Indian company to make handsets so

popular in India. It is present in almost the whole of country Andhra Pradesh, Bihar,

Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka,


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Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Orissa, Punjab, Rajasthan,

Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal.(AUSPI). The Equity

Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock

Exchange Limited. Reliance Communications paid Rs.5864.29 cores for 3G spectrum in

13 circles. in 2010, Reliance communication became the second private sector telecom

company (fourth overall) to launch 3G services in India, with a 4 city launch in

Chandigarh, Delhi, Kolkata and Mumbai.

TATA Teleservices Ltd.is the pioneer of the CDMA 1x technology platform in India.

It has embarked on a growth path since the acquisition of Hughes Tele.com (India) Ltd

[renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It

launched mobile operations in January 2005 under the brand name Tata Indicom and

today enjoys a pan-India presence through existing operations in all of Indias 22 telecom

Circles Assam, Andhra Pradesh, Bihar, Chennai, Delhi, Gujarat, Haryana, Himachal

Pradesh, J & K, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai,

North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W),

West Bengal (AUSPI). The company is also the market leader in the fixed wireless

telephony market. It is the first to pioneer the per-second tariff optionpart of its Pay

for What You Use pricing paradigm. . Tata Teleservices Limited has also become the

first Indian private telecom operator to launch 3G services in India under the brand name

Tata DOCOMO, with its recent launch in all the nine telecom Circles where it bagged the

3G license.

Idea Cellular Ltd. Initially a Birla-TATA-AT&T initiative, is now an Aditya Birla

Group company. In 2005, AT&T sold its investment in Idea, and the year after Tata also

exited. Idea has its presence in Delhi (Metro), Andhra Pradesh, Gujarat, Haryana,

Himachal Pradesh, Maharashtra, Kerala, Madhya Pradesh, Rajasthan, Uttar Pradesh (E),

Uttar Pradesh (W) (COAI). The company is among the top four mobile telephony playersin India with an 11 per cent all-India subscribers market share. Idea paid Rs.5768.59

crores for 3Gspectrum in 11 circles. Idea enjoys a market leadership position in many of

its operational areas. It offers GPRS on all its operating networks for all categories of

subscribers, and was the first company in India to commercially launch the next

generation EDGE technology in Delhi in 2003.


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Bharti Airtel Ltd. -It is the largest India mobile operator by subscriber base. Commonly

known as Airtel, is an Indian telecommunications company that operates in 19 countries

across South Asia, Africa and the Channel Islands. Airtel also offers fixed line services

and broadband services. Airtel is the largest cellular service provider in India and fifth

largest in the world present in Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai

(Metro), Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu &

Kashmir, Kerala, Karnataka, Madhya Pradesh, Maharashtra, North East, Orissa, Punjab,

Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal (COAI).

Airtel won 3G spectrum in 13 circles: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil

Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam,

North East, Jammu & Kashmir for Rs. 12,295 crores.Bharti Airtel wins broadband

spectrum in four circles: Maharashtra, Karnataka, Punjab and Kolkata for Rs. 3314.36

crores.Airtel acquired Zains African operations for $10.7 billion to increase its base to

more than 180 million globally.

Vodafone Ltd.The worlds largest mobile telecommunications company measured by

revenues and the worlds second-largest measured by subscribers. 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. In India it is present in Andhra Pradesh, Chennai

(Metro), Delhi (Metro), Gujarat, Haryana, Karnataka, Kolkata (Metro), Mumbai (Metro),

Punjab, Rajasthan, Uttar Pradesh (W), Uttar Pradesh (E), West Bengal, Maharatshtra,

Tamilnadu, Kerala, Jammu & Kashmir, Himachal Pradesh, Orissa, Bihar, Assam, North

East, Madhya Pradesh (COAI). Its primary listing is on the London Stock Exchange and

it is a constituent of the FTSE 100 Index. It has a secondary listing on NASDAQ.

Note Vodafone entered India by acquiring the Hutchinson stake.

Aircel Groupa joint venture between Maxis Communications of Malaysia and Apollo

Hospitals of India. UTSB has a 74% stake in Aircel and the remaining 26% is with

Apollo Hospitals. It is Indias Seventh largest GSM mobile service provider. It offers
http://greenworldinvestor.com/2010/05/19/for-vodafone-indias-telecom-market-turns-from-crowing-jewel-to-crown-of-thorns/http://greenworldinvestor.com/2010/05/19/for-vodafone-indias-telecom-market-turns-from-crowing-jewel-to-crown-of-thorns/


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both prepaid and postpaid GSM cellular phone coverage throughout India. As on date,

Aircel is present in all 23 telecom circles Assam, Bihar, Chennai, Himachal Pradesh,

Jammu & Kashmir, North East, Orissa, Tamil Nadu, West Bengal, Kolkata, Delhi,

Kerala, Karnataka, Andra Pradesh,UP(E), UP(w), Mumbai (COAI). Aircel has also

obtained permission from Department of Telecommunications (DOT) to provide

International Long Distance (ILD) and National Long Distance (NLD) telephony

services. It also has the largest service in Tamil Nadu.Aircel paid Rs.6499.46 crores for

the 3G spectrum in 13 circlesthe least cost per circle compared to other operators. The

circles it will provide 3G in are Andhra Pradesh, Assam, Bihar, Jammu & Kashmir,

Karnataka, Kerala, Kolkata,Madhya Pradesh, Chhattisgarh, North East, Orissa, Punjab,

Tamil Nadu, Uttar Pradesh, Uttarakhand, West Bengal.Aircel paid Rs.3438crores for the

broadband wireless access spectrum in 8 circles, the second highest wins overallafter

Reliance Communications. The circles it has won spectrum are Andhra Pradesh, Assam,

Bihar, Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal.

Loop Mobile Ltd. - In the year 2009, BPL Mobile rebranded itself as Loop Mobile and

has been operating since then in Mumbai. BPL Mobile Communications Limited offers

GSM wireless facilities in three states of India besides offering broadband facilities via

wirelesst with an ADSL internet competence. It offers pre and post paid, data, and

roaming services. The company has also started manufacturing handsets.

Spice Communications Ltd. - Now a subsidiary of Idea Cellular Ltd .which owns more

than 80% equity in the company. The Aditya Birla Group took over the ownership of

Spice Telecom for over Rs 2,700 crore. The companys areas of operation are Karnataka

& Punjab. The prepaid users (which form majority in India) had problems getting their

phones recharged with prepaid balance when in roaming. Hence, Spice could not regain

the market share inspire of its low tariffs.

Sistema Shyam teleservices (SSTL) Mobile Tele Systems OJSC (MTS) is the

leading telecommunications group in Russia, Eastern Europe and Central Asia, offering

mobile and fixed voice, broadband, pay TV as well as content and entertainment services.


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In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam

Telelink Limited, JSFC Sistemas telecommunications subsidiary in India, announced the

agreement to allow Shyam Telelink to use MTS brand in India. In 2008, Vodafone

announced a partnership deal with MTS, whereby Vodafone services will be available to

MTS subscribers and both companies have noted the potential for more efficient

purchasing. MTS s present in Andhra Pradesh, Kerala, Rajasthan, Tamil Nadu

(Incl.Chennai), Kolkatta, West Bengal, Bihar, Delhi, Mumbai, Haryana, Maharashtra, UP

(E), UP (W), Madhya Pradesh, Gujarat, Punjab (AUSPI). MTS has been listed on the

New York Stock Exchange since July 2000 and trades under the ticker MBT. The

Companys shares have been listed locally on Moscow Interbank Currency Exchange

(MICEX) since November 2003.The telecom industry has been divided into two major

segments, that is, fixed and wireless cellular services for this report. Besides, internet

services, VAS, PMRTS and VSAT also have been discussed in brief in the report .In

todays information age, the telecommunication industry has a vital role to play.

Considered as the backbone of industrial and economic development, the industry has

been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has

been revolution human communication. Although the Indian telecom industry is one of

the fastest-growing industries in the world, the current tele density or telecom penetration

is extremely low when compared with global standards. Indias telecommunication

industry of 36.98% in FY09 is amongst the lowest in the world. Further, the urban

telecommunication industry is over 80%, while rural telecommunication industry is less

than 20%, and this gap is increasing. As majority of the population resides in rural areas,

it is important that the government takes steps to improve rural telecommunication

industry. No doubt the government has taken certain policy initiatives, which include the

creation of the Universal Service Obligation Fund, for improving rural telephony. These

measures are expected to improve the rural Telecommunication and bridge the rural-

urban gap in telecommunication..


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Consolidation in Industry

Telecom players are looking to tap into global funds to finance their aggressive growth

plans. This will result in partnerships joint ventures and equity sellout to foreign players.

New license holders will continue to look to sell their stake at a premium. New policies

will seek to curb this license arbitrage. Smaller players with operations in only a few

circles will find in difficult to compete with the nationwide players. The industry may see

consolidation with these smaller operators being acquired by the larger ones.

Unbundling of the corporation will continue as companies will seek f or economies of

scale and lower startup cost by infrastructure sharing. 3G and Wi Max license will spur

M&A and partnership activity.

Idea Cellulars Acquisition of Spice Telecom

There were three transactions as part of this acquisition; acquisition of shares of Spice, a

non-compete fee and a capital infusion of about Rs 7300 cores received from TM

International With respect to shares, Idea acquired 40.8% stake of Spice Communications

at Rs 77.30 a share for Rs 2,716crore. There was a share swap in which Spice

shareholders got 49 Idea shares for every 100 Spice shares held. An additional Rs 544

crore was paid to the promoters of Spice group as ' non-compete fee'. The deal was

strategically important for Idea Cellular as it was looking forward to transfer itself into

apan-India telecom service provider. The spectrum auctioned by GOI is a scarce resource

nowadays and cost a premium. Also theres restriction by TRAI with respect to number

of operators per telecom circle. So it makes sense to acquire a small telecom operator.

Small players like Spice Telecom operating at only a few circles (Karnataka and Punjab)

will find difficult to compete with the nationwide players in the long run. So it was a win-

win deal for both companies.

Vodafones entry into India

Vodafone paid a discounted price of $10.9 billion in cash for acquiring the 52%stake held

by Hutchison Telecom International (HTIL) in Indian mobile firm Hutch-Essar. HTIL

declared a special dividend of 6.75 HK dollars per share following the completion of the

formalities. The final price was a reduction of $180 million from the originally agreed


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price of $11.08 billion. Vodafone is the largest mobile telecommunications network

company in the world. The deal gave the maces to one of the fastest growing mobile

markets in the world

Telenor-Unitech Deal

Norwegian Telecom major Telenor is in the process of acquiring controlling stake of

67.25% in Unitech wireless via equity infusion. The enterprise valuation of Unitech

Wireless is about Rs 10,900 crore. As per the deal, Telenor will infuse cash in four stages

and at each phase, by increasing its stake in Unitech Wireless. In the first phase, they got

33.5% ownership in Unitech Wireless. In the second phase they completed the

acquisition for a 49 per cent stake in Unitech Wireless by paying Rs1,130 crore for a

further 15.5 per cent stake in the company. The acquisition is expected to be completed

by end of this quarter.

TTSL DOCOMO DEAL

Japanese carrier NTT DOCOMO acquired 26 per cent stake in Tata Teleservices (TTSL).

The TATADOCOM branded GSM service has already started in Southern India and

gradually will be expanded nationwide. DOCOMOs international expansion plans have

not always proven successful, with the firm historically preferring to take small stakes in

firms and then try to influence their strategy. It has been less prepared to take majority

stakes and impose its will, as other leading carriers have chosen to do. The difficulties

faced by the firm in spreading its domestically successful i-mode service internationally

typify the obstacles it has faced overseas. With Tata, DOCOMO had said participating

proactively in TTSLs management by providing human resources and technical

assistance to help realize improved network quality and the possible introduction of

leading-edge, value-added services. Recently Bharti Airtel has re-started its audacious

merger bid with MTN that could create a $61-billiontransnational telecom goliath with

combined revenues of $20 billion and over 200 million subscribers across Africa, Asia

and Middle East, will be among the world's 10 biggest telecom companies. The deal

could be win-win for both parties. Bharti is under pressure in its home country due to

severe competition and looking forward to spread its risk across geographies. Meanwhile,


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the African telecom operator is also encountering some of the problems that its

counterpart in India is confronting. MTN may have higher ARPUs (in the range of $12-

20), but they are also falling fast. Strategic benefits to both players Synergies would be

sought from a number of areas, including procurement, operational best practice, R&D

and international network sharing. The two companies will not overlap in each others

business operations: Bharti Airtel will be the primary vehicle for Bharti and MTN to

pursue further expansion in Africa and the Middle East With both Bharti and MTN

operating in high-growth geographies, it would be imperative for them to incrementally

expand into untapped areas. Collaborating with each other would seem the logical way

ahead. The most important, and visible fallout of the deal, if it materializes, will be the

advantage of economies of scale for the new entity. In recent times, companies are more

amenable to mergers and acquisitions. Of late, companies are finding it tough to obtain

easy funds for expansion, which calls for more collaboration if corporate intend to

expand. Bharti would not be involved only in MTNs day-to-day activities, but it would

also have a say while making bigger strategic decisions, such as those pertaining to

investments in other geographies or sourcing of equipment. The high subscriber base and

financial muscle will give Bharti-MTN the desired edge while dealing with vendors.

Once the merger happens, the economies of scale of the complete outfit (Bharti-MTN)

would be taken into account. For instance, even if the company places an order worth just

$1 million, the vendor would not hesitate to lap it up, as there could be orders worth a

billion dollars in other projects. This would offset whatever concerns there may be with

respect to the small population size in countries where MTN operates.

Takeaways for Bharti

The biggest takeaway for Bharti is in the form of access to new geographies with high

growth potential. Without a partner, Bharti would have to embark on a Greenfield

project, which would be time-consuming and capital intensive. Besides, without local

knowledge (with respect to the market and government regulations),Bharti could be on a

sticky wicket. The Indian telecommunication does not have the expertise in running

multi-country operations.MTN has operations in 21 countries across Africa and the

Middle East and is one of the largest emerging market mobile operators globally. While


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Africa has one-third of the world population, its telephonic density is just 30 per cent.

This offers plenty of room for expansion. The fact that 95 percent of Africa is prepaid,

which ensures all cash operations, fits perfectly into Bhartis plans. The options for

Bharti were to go either the Greenfield way or with an experienced partnerMTNs strong

foothold in some growing markets such as South Africa,

1.3 COMPANY PROFILE

Videocon Industries Limited is India-based Company. The Company operates in four

segments: Consumer Electronics and Home Appliances, Crude Oil and Natural Gas,

Telecommunications, and Power. It has launched variety of products in consumer

electronics industry including range of refrigerators, washing machines, televisions, air-

conditioners, microwave ovens. It has interest in oil and gas field, in India, Mozambique,

Brazil, East Timor, Indonesia and Australia. During the year ended December 31, 2011, it

acquired or incorporated Liberty Videocon General Insurance Company Limited, Flair

Energy Private Limited and Prosperous Energy Private Limited. In 2011, it disposed or

ceased Triumph Energy Private Limited, Senator Energy Private Limited, Videocon

Power Ventures Limited, Aim Energy Private Limited, Viable Energy Private Limited,

Vital Power Private Limited, Marvel Energy Private Limited, Instant Energy Private

Limited, Flair Energy Private Limited and Percept Energy Private Limited. A Videocon

group company which offers GSM mobile services GSM service. The company started

its telecom services after the 2G Auction and operates in Tamil Nadu (including

Chennai), Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, UP East, UP

West, Himachal Pradesh Videocon Mobile Service., is a GSMbased cellular

operatorin Indiabased in Gorgon (NCR Delhi).[2]Videocon Telecommunications Limited

which holds a market share of 0.78% in the country, a Videocon group company offers

GSM mobile services GSM service under the brand name Videocon. Videocon Mobile

Services is a next-generation GSM mobile service network launched by the Rs.25,000

crore Videocon Group. The services are already up and running in Tamil Nadu( including

Chennai ), Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, Himachal

Pradesh and soon will be present across the country. The company has partnered with

global technology leaders to create a robust infrastructure featuring future ready mobile
http://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Gurgaon_(NCR_Delhi)&action=edit&redlink=1http://en.wikipedia.org/wiki/Videocon_Telecommunications_Limited#cite_note-1http://en.wikipedia.org/wiki/Videocon_Telecommunications_Limited#cite_note-1http://en.wikipedia.org/wiki/Videocon_Telecommunications_Limited#cite_note-1http://en.wikipedia.org/w/index.php?title=Gurgaon_(NCR_Delhi)&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/GSM


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technologies. Powered by a 2.75G EDGE GSM network, Videocon Mobile Services aims

to redefine the Indian mobile telecommunications industry leveraging a combination of

the parent companys strong brand recall and retail reach with a spirit of innovation and

customer centricity. The Videocon Group is a global business conglomerate with a strong

presence in Household Consumer Goods, Telecom, DTH, Retail, Oil & Gas and the

Power sector. The Group is rated among Indias Top 15 Business Houses and is listed

among the 100 Emerging Giants of the World according to a Boston Consulting Group

study in addition to being rated amongst the Top 15 of Indias booziest brands by

agency faqs in 2010. Videocon's businesses consist of manufacturing, marketing &

distribution of consumer electronics products and oil & gas extraction. Videocons R & D

centers are developing technologies that include True Flat, Slim, Extra Slim, and Plasma

& LCDs. It wants to market these products at the earliest. In the Oil & Gas business,

company has all the basic operator capabilities of a prospecting entity; it is looking to add

more explorations and production depth as also oil bearing assets. The group will also get

into gas distribution in India significantly.

The company operates in five key sectors:-

The Videocon operates in mainly five following sectors: GSM mobile services, Direct 2

home, Mobile phones, Consumer Electronics, Home Appliances & Compressor

manufacturing. It produces consumer products like color televisions, washing machines,

air conditioners, refrigerators, microwave ovens and many other home appliances, selling

them through their sales and service network in India. It has in house compressor

manufacturing technology for refrigerators .Display industry and its components: By

acquiring Thomson SAs color picture-tube manufacturing business which is spread

across China, Poland, and Mexico, Videocon is able to improve the technology in

existing products in slim tube, plasma, LCD, and other flat-panel display lines as well as

create new innovative products. Color Picture Tube Glass: Videocon is one of the largest

Color Picture Tube (CPT) glass manufacturers in the world with a high level of

experience and technical expertise operating through Poland and India. Videocon

produces a superior range of panels and funnels to meet the demand for large-size, flat,

and slim CRT display products. Oil and Gas: An important asset for the group is its ravva


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oil field with one of the lowest operating costs in the world producing 50,000 barrels of

oil per day. The group has ambitious plans for expansion in this sector globally. With

strategically located manufacturing bases and an enviable distribution network of around

90 branch offices, 10,000 distributors & 400 after-sales service centers across India.

Key people

.No Name Designation

1 Venugopal N Dhoot Chairman

3 Venugopal N Dhoot Managing Director

2 Vinod Kumar Bohra Company Secretary

4 S Ananthakrishnan Nominee Director - IDBI

5 S Padmanabhan Non Executive Independent Director

8 Radhey Shyam Agarwal Non Executive Independent Director

9 Anil G Joshi Non Executive Independent Director

6 Satya Pal Talwar Non Executive Independent Director

7 S C N Jatar Non Executive Independent Director

10Pradipkumar N Dhoot Whole Time Director


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CHAPTER 2

LITERATURE REVIEW


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LITERATURE REVIEW

Bhattacharya (2000) constructs a vision of the Indian telecommunication sector for the

year 2020. The paper aims at isolating agents of change based on international

experiences and situates India in the development continuum. The agents of change have

been broadly categorized into economic structure, competition policy and technology.

Das (2000), in her paper described the Liberalization of the Indian telecommunications

services which started in mid nineties with no change in the existing public monopoly

structure, entirely controlled by Department of Telecommunications. In order to evaluate

any proposed industry structure, it is essential to analyze the production technology of

DOT so as to determine the rationale of liberalization and sustainability of competition.

Accordingly, the researcher estimates a frontier multi-product cost function for DOT,

where the cost function has been duly modified to account for the production technology

of a public monopoly. The study finds that although DOT displays high allocation

inefficiency, it is still a natural monopoly with very high degree of sub additively of cost

of production. This study implies that the choice of any reform policy should consider the

trade-off between the loss of scale and scope economies and cost saving from the

reduction in inefficiency of the incumbent monopoly in the event of competition.

Rao (2000), in her article named Internet service providers in India, provides a broad

view of the role of an Internet service provider (ISP) and the factors to be considered

before entering the ISP market. Describes the Internet/ISP scene within India and

discusses the configuration of local, regional and national level ISPs, and the supporting

infrastructure. She also identifies the various success factors. The global Internet scenario

is discussed regarding the phases of the Internet in India, i.e. pre and post

commercialization. The main players are described: ERNET, NICNET, STPI, VSNL,

MTNL, Satyam Info way and Bharti-BT. The financial and legal implications are

highlighted in the Indian context. Many companies entered the nascent ISP business in

India due to deregulation. Building local content, foreknowledge of new Internet

technologies, connecting issues, competitiveness, etc. would help in their sustainability.


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She concludes that though many companies entered the nascent ISP businesses in India

due to deregulation, many of them are unlikely to survive in the longer term.

Vrmani (2000) estimates the contribution of telecommunication (or telecom) services to

aggregate economic growth in India. Estimated contribution is distinguished between

public and private sectors to highlight the impact of telecom privatization on economic

growth. Knowledge of policy determinants of demand of telecom services is shown to be

essential to enhance growth contribution of telecom services. Using a recent sample

survey data from Karnataka State in South India, price and income determinants of

demand for telecom services are estimated by capacity of telephone exchanges

Estimation results offer evidence for significant negative own price elasticity and positive

income elasticity of demand for telecom services.

Narinder(2004), in his article Enhancing Developmental Opportunities by Promoting

ICT Use: Vision for Rural India talks about the foremost benefits of Information and

Communication Technologies (ICTs) in developing countries that can be helpful in

improving governance including public safety and eradication of illiteracy. The benefits

of ICTs have not reached the masses in India due to lack of ICT infrastructure,

particularly in rural areas, where two-third of the population of the country lives. Even in

cities and suburban areas, use of ICTs is not popular due to lack of awareness to its use,

computer illiteracy, and absence of practical applications. India is the largest country in

South Asia, with a population of over one billion people and its telecom sector is

presently experiencing fast growth phases. However telephony penetration in villages is

less than two percent of the rural population and about 15 percent of the villages are still

without any telephony service. Universal access to ICTs in rural areas has been planned

and is being implemented through Public Tele Info Centers having voice data and video,

as majority of villagers in India cannot afford a separate home connection. Illiteracy in

rural areas is as high as 40 percent and in some tribal belts hardly about 20 percent people

are literate. There are 35 million children in age group of 611 years, who are out of

school and one out of four drops out during primary classes. Education and training,

therefore, must be given the top priority if advantages of ICTs are to be harnessed. Indian

economy is agriculture based and employs maximum workforce. Improvement in


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agriculture productivity can help in reducing rural poverty. Adoption of ICT in

agriculture will play an increasingly important role in crop production and natural

resource management. The other critical factor is technological challenges for universal

access to ICTs to bring down the network access cost.

Dey (2004), in her article talks about the discussions between the Federal

Communications Commission (FCC) and communications policy makers and regulators

in other countries and how they have gleaned several clusters of issues where further

research would directly benefit them. Recently, there have been two notable shifts. First,

as the acceptance of the competition model over the monopoly model for

telecommunications markets takes deep effect in regulators all over the world, questions

regarding process and procedure for regulation are becoming ever more urgent. Thispaper discusses current questions regarding decision making, enforcement, and

understanding consumer issues that arise often in the FCC's discussions with other

regulators. Second, technological change is potentially shifting market definitions. In the

FCC's discussion with other regulators over the last two years, the overlap of wire line

telecom, wireless telecom and cable television has become more pronounced.

Singh (2005), in his article The role of technology in the emergence of the information

society in India describes the role that information and communication technologies are

playing for Indian society to educate them formally or informally which is ultimately

helping India to emerge as an information society. Though India has a huge population,

the illiteracy rate is also huge in this country. The paper has taken an approach to find the

historical situation and present the prevailing scenario as well as the change that are

taking place with the application of ICT to the advantage of the society in different areas

including daily life. India is making all out efforts to be counted among the developed

nations of the world. The article also describes the considerable attention India is taking

for application of technology, development of infrastructure and human resource for

meeting national needs. Basically India is building an information society. Technology

has helped society to cut across the traditional boundaries for getting converted into an

emerging information society. The study concludes that The Indian software and services

industry has significantly helped to boost the Indian economy. In IT-enabled services too,


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India has been clearly perceived to be the dominant hub. The Indian software sector is

being recognized as the single largest contributor to incremental market capitalization in

India but the sector is still small in terms of contribution to GDP, especially when

compared to other large sectors in the economy like agriculture and manufacturing.

Similarly, the telecommunication sector has contributed a lot but still has a considerable

way to go. The paper also enforces that comparisons of Indias telecommunication

statistics with those of developed and other emerging economies show that the country is

still far behind its contemporaries.

Mr. Banka (2006) gives an overview of the mergers and acquisitions in the

telecommunication industry. According to him Governments decision to raise the foreign

investment limit to 74% is expected to spur fresh rounds of mergers and takeovers inIndia. He foresees a sector that represents humongous opportunity waiting to be tapped

by Indian and foreign conglomerates.

Thomas (2007), in his article describes the contribution made by telecommunications in

India by the state and civil society to public service, this article aims to identify the

states initial reluctance to recognize telecommunications provision as a basic need as

against the robust tradition of public service aligned to the postal services and finds hope

in the renewal of public service telecommunications via the Right to Information

movement. The article follows the methodology of studying the history of

telecommunications approach that is conversant with the political economy tradition. It

uses archival sources, personal correspondence, and published information as its research

material. The findings of the paper suggests that public service in telecommunication is a

relatively new concept in the annals of Indian telecommunications and that a

deregulated environment along with the Right to Information movement holds significant

hope for making public service telecommunications a real alternative. The article

provides a reflexive, critical account of public service telecommunications in India and

suggests that it can be strengthened by learning gained from the continual renewal of

public service ideals and action by the postal services and a people-based demand model

linked to the Right to Information Movement. All studies done by the researcher suggests

that the right to information movement has contributed to the revitalization of


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participatory democracy in India and to a strengthening of public service

telecommunications.

Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its Quarterly

Performance Analysis of Companies (April-June 2008) has analyzed the Indian telecom

industry in the awake of recent global recession and its overall impact on the Indian

economy. The analysis is done in the background of wake of global recession and rising

inflation. Cygnus estimates, the Indian telecom industry is expected to maintain the

growth trajectory in the next quarter as well. With almost 5-6m subscribers are being

added every month, and the country is witnessing wild momentum in the telecom

industry.

Maheshwari (July-September 2008), in her report analyzed the Indian telecom industry

and ascertain that Indian telecommunications has been zooming up the growth curve at

an mounting pace, and India is has surpassed US to become the second largest wireless

network in the world. This growing subscriber base is basically created by tapping into

rural India, which is an emerging market for the industry. The estimate for the next five

to ten years is that the rural market will form 40 % of the subscriber base. The study has

analyzed the human resource management process of the industry, and specially the latest

trends of recruitment of this massively growing industry

Mani (2008) addresses a number of issues arising from the growth of telecom services in

India since the mid-1990s. It also discusses a number of spillover effects for the rest of

the economy and one of the more important effects is the potential to develop a major

manufacturing hub in the country for telecom equipment and for downstream industries

such as semiconductor devices. The telecom industry in India could slowly become an

example of the service sector acting as a fillip to the growth of the manufacturing sector.

A beginning towards this has been made. The formation of a Telecom Equipment Export

Forum and the announcement of the Indian Semiconductor Policy 2007 are steps in this

direction. Success crucially depends on the response of the private sector to these

incentives. Given the importance that a regulatory agency can play in this crafting, no

effort should be lost in strengthening the powers of the TRAI. The benefits to the Indian


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economy from having both a strong services and manufacturing segments in the telecom

sector cannot be undermined.

Narayana (2008) estimates the contribution of telecommunication (or telecom) services

to aggregate economic growth in India. Estimated contribution is distinguished between

public and private sectors to highlight the impact of telecom privatization on economic

growth. Knowledge of policy determinants of demand of telecom services is shown to be

essential to enhance growth contribution of telecom services. Using a recent sample

survey data from Karnataka State in South India, price and income determinants of

demand for telecom services are estimated by capacity of telephone exchanges.

Estimation results offer evidence for significant negative own price elasticity and positive

income elasticity of demand for telecom services.

Shah (February, 2009), has analyzed Indian telecom industry and studied the sector

keeping in mind three companies; namely Bharti, Reliance .Communication and idea in

the background of recent global melt down. The study suggests that though there is no

sign of slowdown in this sector, but surely a strong turmoil is going on in the industry.

The study states that the sector is fairly immune from the current economic downturn &

does provide a good defensive bet in medium term. With the help of newer technologies,

wireless penetration is expected to increase in the near future, which is basically fuelling

the growth of the sector. While the 3G / Broadband adoption would ensure long term

growth momentum, the article has thoroughly investigated about the intense competitive

scenario, pricing pressure, high capital intensity & substantial regulatory uncertainties

currently faced by the industry. The article has also described the cause of being

relatively safe of this industry. The causes described by Shah are increasing rural

coverage, rising affordability, declining handset/subscription costs, substantially low

tariffs & established brand/distribution. However, the study also cautions the telecom

industry that a steeper economic slowdown could start impacting the subscriber usage

patterns as well as operator capital investments & thereby could substantially restrict

revenue growth rates going forward.


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CHAPTER 3

RESEARCH METHODOLOGY


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3.1 Research Methodology:-

Research methodology is considered as the nerve of the project. Without a proper well-

organized research plan, it is impossible to complete the project and reach to any

conclusion. The project was based on the survey plan. The main objective of survey wasto collect appropriate data, which work as a base for drawing conclusion and getting

result. Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic behind the

methods used in the context of a research study and it explains why a particular method

has been used in the preference of the other methods

3.2OBJECTIVES OF THE STUDY:

To find the awareness of the customers related to Videocon. To find the purchasing frequency of the customers. To find the satisfaction level of the customer To analyze which facility influences the customer most while selecting Mobile

operator.

To helps the company to provide more offers in order to increase the sale. To helps the company to concentrate on plan voucher in order to satisfy and attract

more customers.

3.3 Research Design: - A Research Design is a master plan to conduct the formal

investigation and survey. It is a specification method devised to collect the information

needed for solving the problem. The framework of conducting research is known as

Research Design.

Descriptive Research:-The research design used in this study is the Descriptive

Research Design. Descriptive Research is concluded with measuring and estimating the

frequencies with which things occur (or) the degree of correlation (or) association

between various variables. Market research reports are often descriptive and they

measure market size, structure, behavior and attitudes of consumers in the market place.

Data obtained through descriptive research can be put in to various statistical analyses.


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Sources of Data:-All market research requires vast reservoirs of information. There may

be different types of information and data. It is necessary for the researcher to know the

kind of information which is usually employed in marketing research work and the types

of sources from which it is generally collected. The researcher has to collect more

specific information from specific sources of marketing data for solving specific

problems of the market.

Methods of Data

Primary Data: - Primary Data may be described as those data that have been observed

and recorded by the researchers for the first time to their knowledge. The data are

originated by the researcher for the purpose of the investigation at hand. In the study

datas were collected through Direct Interview Method. The interview was carried out

meticulously in order to avoid misinterpretation of the data. In this study the data was

collected through direct interview method using a Structured Questionnaire.

Secondary Data:-Secondary Data are statistics not gathered for the immediate study at

hand but for some other purpose. They may be described as those data that have been

complied by some agency other than the user. One method of collection of this primary

data is through structured direct interviews. A formal questionnaire consisting of non-

disguised questions are used for this interview. Formal lists of questions were prepared

and were asked in sequence to the employees.

This primary data can be collected by the following ways:

Observational research: The data can be gathered by observing therelevant factors and settings.

Focus-Group research: A focus group is a gathering of six to ten peoplewho are invited to spend a few hours with a skilled moderator to discuss a

product, service organization or other marketing entity.

Survey research: Companies undertakes surveys to learn about peoplesknowledge, beliefs, preferences and satisfaction and to measure these

magnitudes in the general population.


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Experimental research: the most scientifically valid research isexperimental research. The purpose of this research is to capture cause-

and-effect relationships by eliminating competing explanations of the

observed findings.

METHOD USED IN THE STUDY

In this study the primary data is collected through survey research method. The

questionnaire is used as the research instrument for collected data. A formal

questionnaire consisting of non-disguised questions were prepared and through direct

personal interview the study was carried out.

QUESTIONNAIRE:-The questionnaire is a standardized form for recording answer on

the basis set of questions. Because of its flexibility the questionnaire is by far the most

common instrument used to collect primary data questionnaire need to be carefully

developed, tested and debugged before they are administered on a large scale. The

recording of answers may be undertaken either by the interviewer or by the respondents

as the method of data collection require.The term questionnaire usually refers to a self

administered process whereby the respondent himself reads the questions and records his

answers without the assistance of an interviewer. The questionnaire is a useful method

of data collection as it provides standardized methods of data analysis.

TYPES OF QUESTIONS USED FOR THE STUDY:

Open-end Questions:-Open-end questions allow respondents to answer in their own

words. Open-end questions. Often reveal more because respondents are not constraint in

their answers. Open-end questions are specially useful in the researcher is looking for

insight into how people think rather than in measuring how many people think a certain

way. Example: Give in your suggestions for the betterment of the organization.

Multiple Choice Questions

A question with three or more answers

Example: How much time is required for handling a Grievance?


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a. Within 24 hours b. Within two days c. Within a week

d. Within a month e. Within a Fortnight

SAMPLING

Sample design:-A sample design is a definite plan for obtaining a sample from a given

population. It describes the techniques for the researcher to adopt in selecting items for

the samples and determines the size of the sample. For the purpose of this study, Simple

Random Sampling, which belongs to the Probability Random Sampling Design, was

chosen.

SAMPLING SIZE:

200 customers were approached by the researchers for collecting the data.

SAMPLING TECHNIQUE:

The simple random sampling technique is used.

3.4 LIMITATIONS

1. Sometimes respondents did not respond well to all the questions in thequestionnaire.

2. Small sample size 200.3. Some biasness might have occurred in analysis. Because of lack of expert

knowledge.

4. Best efforts were made to incorporate all-important variables in study, yet chancesof some of variables not appearing in study are not ruled out.

5. Frequent developments in this sector can be a major reason of limitation in thestudy

6. Biasness in views of respondents cant be ruled out7. Resistance to change sometimes affects view of respondents.


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CHAPTER-4

DATA ANALYSIS & INTERPRETATION


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DATA ANALYSIS & INTERPRETATION

The process by which sense and meaning are made of the data gathered in qualitative

research, and by which the emergent knowledge is applied to clients' problems. This data

often takes the form of records of group discussions and interviews, but is not limited tothis. Through processes of revisiting and immersion in the data, and through complex

activities of structuring, re-framing or otherwise exploring it, the researcher looks for

patterns and insights relevant to the key research issues and uses these to address the

client's brief. Once necessary information has been collected through observation or

survey or experiment, the following steps are to be taken.

GENDER

GENDER No of respondent Percentage

Male 70 35

Female 130 65

Total 200 100

INTERPRETATION:

Out of 200 respondent 65% respondent were female and 35% respondent were male

35%

65%

100%Male

Female

Total


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1. How long you using the Videocon Telecom?USING VIDEOCON NO OF RESPONDENT PERCENTAGE

1-2 month 30 15%

2-4 month 30 15%

4-6 month 100 50%

More than 6 month 40 20%

total 200 100%

INTERPRETATION

Out of 200 respondent 50% of respondents were using the videocon telecom more than 6

month were as 15% of respondents were using the videocon from 1-2 month and 2-4

month.

30 30

100

40

200

15 15

50

20

100

0

50

100

150

200

250

1-2 month 2-4 month 4-6 month More than

6 month

total

RE

SPONDENTS

PERIODS

no of respondents

no of percentage


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2.How do you come to know to about the plan and benefits of Videocon Telecom?

COME TO KNOW

ABOUT VIDEOCONNO OF RESPONDENT PERCENTAGE

By TV 30 15

By newspaper 30 15

By friends 50 25

By internet 50 25

Other 40 20

total 200 100

INTERPRETATION

Out of 200 respondents 25% respondents were come to know about the videocontelecom by friends ,25 % by interent, 15% by TV, 15 % by newspaper.

0

50

100

150

200

30 3050 50 40

200

15 1525 25 20

100

RESPONDENTS

MEDIA

no of

respondents


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3.Do you comfortable with service of the Vodeocon telecom?

COMFORTABLE

WITH SERVICENO OF RESPONDENT PERCENTAGE

Yes 130 65

No 70 35

total 200 100

INTERPRETATION

Out of 200 respondents 65% of respondents were comfortable with the videocon services

were as 35% of respondents were not comfortable with the videocon services.

65%

35%

100%Yes

No

total


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4.On what services do you purchase the Videocon Telecom?

SERVICES NO OF RESPONDENT PERCENTAGE

Internet Pack 90 45

Call Service 80 40

SMS Pack 30 15

Total 200 100

INTERPRETATION

Out of 200 respondents 45% of respondents purchase the Videocon due to Internet Pack,40% due to low call package and 15% due to SMS pack.

0

20

40

60

80

100

120

140

160

180

200

Internet

Pack

Call Service SMS Pack Total

9080

30

200

45 40

15

100

NO OF RESPONDENT

PERCENTAGE


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5. In Videocon which rate cutter do you prefer?

RATE CUTTER YOU

PREFERNO OF RESPONDENT PERCENTAGE

25 20 10

30 80 40

59 10 5

96 90 45

Total 200 100

INTERPRETATION

Out of 200 respondents 45% respondents were using the 96 rate cutter were as 5% of

respondents were using the 59 rate cutter.

0

20

40

60

80

100

120

140

160

180

200

25 30 59 96 Total

20

80

10

90

200

10

40

5

45

100

RESPONDENTS

RATE CUTTER

no of

respondents

no of

percentage


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6. When you make purchase plan in Videocon Telecom?

Documents

customer perception towards videocon communication