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A

PROJECT REPORTon

COMPARITIVE STUDY OF THE LIFETIME PLANS OF THE

CELLULAR COMPANIES IN BHOPAL

FOR THE PARTIAL FULFILLMENT OFTHE REQUIREMENT

OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ANURAG SAHUMBA II SEMESTER

GUIDED BYMr. OWAIS AHMED QURESHI

INSTITUTE OF PROFESSIONAL EDUCATION

AND RESEARCH(BARKATULLAH UNIVERSITY, BHOPAL)

2007-2009


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ACKNOWLEDGEMENT

This Project has been made possible through the direct and indirect Co-operation

of various persons, who have inspired me at every step of my work. It is a matter

of pride for me to acknowledge my profound gratitude to my respected Director

Dr. J.P. Sahu who always facilitates me in gaining practical knowledge.

I am very much obliged and thankful to my esteemed Project Guide

Mr. OWAIS AHMED QURESHI for his valuable Cooperation and Guidance.

And above all, I am beholden to my Parents and other family members for their

blessing and encouragement in completing this task.

ANURAG SAHU


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PREFACE

The research provides an opportunity to a student to demonstrate application of

his/her knowledge, skill and competencies required during the technical session.

Research also helps the student to devote his/her skill to analyze the problem to

suggest alternative solutions, to evaluate them and to provide feasible

recommendations on the provided data.

The research is on the topic of COMPARITIVE STUDY OF THE LIFETIME. Although I have triedPLANS OF CELLULAR OPERATORS IN BHOPAL

my level best to prepare this report an error free report every effort has been made

to offer the most authenticate position with accuracy.


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DECLARATION

I here by declare that the following documented Pr oject Report titled COMPARITIVESTUDY OF THE LIFETIME PLANS OF CELLULAR OPERATORS IN BHOPAL is anauthentic work done by me.

The Study was undertaken as a part of the course curriculum of MBA Full Time

Program of Barkatullah University, Bhopal.

ANURAG SAHU


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CONTENTS

CHAPTERS

CHAPTER-1

INTRODUCTION

OBJECTIVES OF THE STUDY

CHAPTER-2

INTRODUCTION OF TELECOM SECTOR

INTRODUCTION TO CELLULAR COMPANIES

CHAPTER-3

RESEARCH METHODOLOGY

RESEARCH DESIGN

SAMPLE DESIGN

LIMITATIONS OF THE STUDY

CHATPER-4

DATA ANALYSIS AND INTERPRETATION

CHAPTER-5

OBSERVATION & FINDINGS

CONCLUSIONS

SUGGESTIONS

BIBLOGRAPHY

ANNEXURE


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CHAPTER-1


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INTRODUCTION

Comparative research, simply put, is the act of comparing two or more things with a view

to discovering something about one or all of the things being compared.

This technique is often utilizes multiple disciplines in one study.

When it comes to method, the majority agreement is that there is no methodologypeculiar to comparative research. The multidisciplinary approach is good for the flexibilityit offers, yet comparative program s do have a case to answer against the call that theirresearch lacks a seam less whole .

There are certainly methods far m ore com mon than others in comparative studies,

however. Quantitative analysis is much more frequently perused than qualitative, and thisis seen in the majority of comparative studies can be use quantitative data.

The general method of comparing things is the same for comparative research as it is inour everyday practice of comparisons. Like cases are treated alike, and cases are treated differently; the extent of difference determines how differently cases are treated. The pointhere is that if one is able to sufficiently distinguish two cases, comparative research

conclusions will not be very helpful.

Secondary analysis of quantitative data is relatively widespread in comparative research,

undoubtedly in part because of the cost of obtaining primary data for such large things as

a countrys policy environment. A typical method of comparing welfare state is to take

balance their levels of spending on social welfare.


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In line with how a lot of theorizing has gone in the last century, comparative research

does not tend to investigate =grand theories such as Marxism. It instead occupies itself

with middle-range theories theories that do not purport to describe our social system in

its entirely, but a subset of it. A good example of this is the common research programs

that looks for differences between two or more social systems, then look at these

differences in relation to some other variable coexisting in those societies to see if it isAndersons research on social welfarerelated. The classic cases of this is Esping-

systems, and compared them based on there levels of deco modification of social welfare

goods. He found that he was able to class welfare states in four types, based on their

deco modification. She further theorized from this that deco modification was based on a

combination of class collisions and mobilization, and regime legacy. Here Esping-

Anderson is using comparative research: he takes many western countries and compared

their level of deco modification, then develops a theory of the divergence based on his

findings.

Comparative research is a methodology in the social sciences that aims to make

comparisons across different countries and cultures. A major problem in comparativeresearch is that the data sets in different countries may not use the same categories, or

define categories differently.


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OBJECTIVES

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

mobile phone.

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

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


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CHAPTER-2


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Telecom Industry in India

The telecom industry is one of the fastest growing industries in India. India has nearly

200 million telephone lines making it the third largest network in the world after China

and USA. With a growth rate of 45%, Indian telecom industry has the highest growth

rate in the world.

- Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by

the growth in demand in countries like India and China.

=s mobile phone subscriber base is growing at a rate of 82.2%.- India

- China is the biggest market in Asia Pacific with a subscriber base of 48% of the total

subscribers in Asia Pacific. Compared to that India s share in Asia Pacific Mobile

Phone

market is 6.4%. Considering the fact that India and China have almost comparable

p opulations, Indias low mobile penetration offers huge scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the government near

Calcutta (seat of British power). Telephone services were introduced in India in 1881. In1883 telephone services were merged with the postal system. Indian Radio TelegraphCompany (IRT) was formed in 1923. After independence in 1947, all the foreign

telecommunication companies were nationalized to form the Posts, Telephone andTelegraph (PTT), a monopoly run by the government's Ministry of Communications.

Telecom sector was considered as a strategic service and the government considered itbest to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the

private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separatefrom the postal system). In 1986, two wholly government-owned companies were

created: the Videsh Sanchar Nigam Limited (VSNL) for international

telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service inmetropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the

economy. Also, examples of telecom revolution in many other countries, which resultedin better quality of service and lower tariffs, led Indian policy makers to initiate a change


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process finally resulting in opening up of telecom services sector for the private sector.National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive

roadmap for the Indian telecommunications sector. In 1997, Telecom RegulatoryAuthority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate

the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed ServiceProvider (FSPs), and Cellular Services. Fixed line services consist of basic services,national or domestic long distance and international long distance services. The state

operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic

services. Private sector services are presently available in selective urban areas, and

collectively account for less than 5 per cent of subscriptions. However, private servicesfocus on the business/corporate sector, and offer reliable, high- end services, such as

leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sectoris dom inated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is

dom inated by Reliance and Tata Indicom. Opening up of international and domestic

long distance telephony services are the major growth drivers for cellular industry.

Cellular operators get substantial revenue from these services, and compensate themfor reduction in tariffs on airtime, which along with rental was the main source ofrevenue. The reduction in tariffs for airtime, national long distance, international long

distance, and handset prices has driven demand.

Classification of Telecommunication services

1. Basic services2. Cellular services

3. Internet Service Provider (ISP)

Cellular Service

Overview

There are five private service operators in each area, and an incumbent state 1.operator. Almost 80% of the cellular subscriber base belongs to the pre-paid

segment.The DoT has allowed cellular companies to buy rivals within the same2.operating circle provided their combined market share did not exceed 67 per

cent. Previously, they were only allowed to buy companies outside their circle.


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Growth Drivers

Opening up of international and domestic long distance telephony servicesare growth drivers in the industry. Cellular operators now get substantial

revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The

reduction in tariffs for airtime, national long distance, international long

distance, and handset prices has driven demand.

The Key players in the Telecom Market in India

Cellular Service provider:

1. BSNL

2. Airtel

3. Vodafone

4. Idea

5. Reliance

6. Tata indicom

7. Aircel

8. Spice

9. MTNL

Subscribers

Wireless subscribers crosses 200 million markTele density reaches 21.20%

The total number of telephone subscribers has reached 241.02 million at the end ofAugust 2007 as compared to 232.87 million in July 2007. The overall teledensityhas increased to 21.20% in August 2007 as compared to 20.52% in July 2007.

In the wireless segment, 8.31 million subscribers have been added in August 2007while 8.06 million subscribers were added in July 2007. The total wireless subscribers

(GSM, CDMA & WLL(F)) base reaches 201.29 million at the end of August 2007.

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


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Market Share of the telecom Company in India


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INTRODUCTION

OF

CELLULARCOMPANIES


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Company Profile

INTRODUCTION

Bharti Airtel formerly known as Bharti Tele -Ventures Limited (BTVL) is among India'slargest mobile phone and Fixed Network operators. With more than 60 millionsubscriptions as of 13th February 2008.[2] It offers its mobile services under the Airtel

brand and is headed by Sunil Mittal. The company also provides telephone services andInternet access over DSL in 14 circles. The company complements its mobile,broadband & telephone services with national and international long distance services.

The company also has a submarine cable landing station at Chennai, which connectsthe submarine cable connecting Chennai and Singapore. The company provides

reliable end-to-end data and enterprise services to the corporate customers byleveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and

mobile circles, VSATs, ISP and international bandwidth access through the gateways

and landing station.

Airtel is the largest cellular service provider in India in terms of number of subscribers.

Bharti Airtel owns the Airtel brand and provides the following services under the brandname Airtel: Mobile Services (using GSM Technology), Broadband & Telephone

Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long DistanceServices and Enterprise Services (Telecommunications Consulting for corporates).

Leading international telecommunication companies such as Vodafone and SingTel

held partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jerseyin the Channel Islands by the local telecommunications regulator the JCRA. In

September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel

with a mobile telecommunications license. In May 2007 Jersey Airtel and Guernsey

Airtel announced the launch of a relationship with Vodafone for island mobile

subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900million dollar expansion of its mobile and fixed network.[3] In August 2007, the companyannounced it will be launching a customized version of Google search engine that willprovide an 'array of services' to its broadband customers.


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INTRODUCTION

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operatein 11 circles. With a customer base of over 17 m illion, IDEA Cellular has operations in

Delhi,Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh,

Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellular's footprint

currently covers approximately 45% of India's population and over 50% of the potentialtelecom-market.

As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is

the first cellular company to launch music messaging with 'Cellular Jockey', 'BackgroundTones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of Mobile Email Services.

Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging Tata Cellular and Birla AT&T Communications.Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in

2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mum bai),

Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (East andWest), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR).The company has its retail outlets under the "Idea n' U" banner. The company has also

been the first to offer flexible tarrif plans for prepaid customers. It also offers GPRS services in urban areas.

Holding

Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the

company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingulardecided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas andBirlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-

based mobile provider, cropped differences between the Tatas and the Birlas. This dualholding by the Tatas also became a major reason for the delay in Idea being granted alicense to operate in Mumbai. This was because as per Department of Telecom (DOT)

license norms, one promoter could not have more than 10% stake in two companies

operating in the same circle and Tata Indicom was already operating in Mumbai whenIdea filed for its license.


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The Birlas thus approached the DOT and sought its intervention, and the Tatas repliedby saying that they would exit Idea but only for a good price. On April 10, 2006, the

Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas atRs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was

acquired by Aditya Birla Nuvo, a company in-charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV

Birla family owned company.Currently, Birla Group holds 98.3% of the total shares ofthe company.Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan, Himachal Pradesh and UP (East) to make itself a pan-India player. Recently, Idea got

licenses to operate in Mumbai & Bihar. They are awaiting the spectrum from DoT.


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INTRODUCTION

A DREAM COME TRUE

The Late Dhirubhai Am bani dreamt of a digital India an India where the common man

would have access to affordable means of information and communication. Dhirubhai,handedly built Indias largest private sector company virtually from scratch,who single-

had stated as early as 1999: Make the tools of information and communication

available to people at an affordable cost. They will overcome the handicaps of illiteracy

and lack of mobility.

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

Reliance Communications has a reliable, high-capacity, integrated (both wireless and

wireline) and convergent (voice, data and video) digital network. It is capable ofdelivering a range of services spanning the entire infocomm (information and

communication) value chain, including infrastructure and services for enterprises aswell as individuals, applications, and consulting.

Today, Reliance Comm unications is revolutionising the way India communicates andnetworks, truly bringing about a new way of life.

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom

and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According toNational Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company.[1]Reliance In focomm

is an Indian telecommunications company. It is the flagship company of the Reliance-

Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services(Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance

Infocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x technology


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HISTORY

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

commissioned on December 28, 2002.

FOOTPRINT

At present, Reliance Telecom's GSM cellular services are available in 340 towns withinits eight-circle footprint. Reliance's CDMA services are available in 19 states and cover

about 65% of the country, state wise. Reliance Infocomm also offered for the first time in

India, m obile data services through its R-World mobile portal. This portal leverages the

data capability of the CDMA 1X network.

BUSINESS REVIEW

During the twelve months ended March 31, 2007, revenues of the Wireless business

increased by 46% to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364 crore (US$1,709 million).

Wireless EBITDA increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250 crore

(US$ 522 million). Margins expanded to 37% from 31%.

EBITDA of the Global business increased by 98% during the twelve months ended

March 31, 2007 to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased to24% from 12% last year.

In the same period, the Broadband business achieved revenue growth of 123% to Rs.

1,144 crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs. 519crore (US$ 120 million). The EBITDA margin crossed 45% in the twelve months ended

March 31, 2007, from 15% in the corresponding period in the previous year.


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TATA TELESERVICES

INTRODUCTION

Tata Teleservices Limited (TTSL) is part of the Tata Group of Com panies, an Indian Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles

of India. The company forms part of the Tata Group's prescence in the

Telecommunication Industry in India, along with Tata Teleservices (Maharashtra)

Limited (TTML) and VSNL.

TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile

services in India, specifically in the state of Andhra Pradesh.

In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd.

which was renamed Tata Teleservices (Maharashtra) Limited.

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

Tata is the direct competitor with Reliance, both CDMA operators in India. The company

provides unified telecommunication solutions including mobile, fixed wireless, fixed lineand broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL

providing GSM based mobile telephony.

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

Tata Teleservices is part of the INR Rs. 119000 Crore (US$ 29 billion) Tata Group, that

has over 87 companies, over 250,000 employees and more than 2.8 millionshareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in

Telecom (FY 2006), the Group has a formidable presence across the telecom value

chain.

Tata Teleservices spearheads the Groups presence in the telecom sector. Incorporated

in 1996, Tata Teleservices was the first to launch CDMA mobile services in India withthe Andhra Pradesh circle.


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Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed

Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung intoan expansion mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices

has created a Pan India presence spread across 20 circles that includes AndhraPradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu,

Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), UttarPradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has

established a robust and reliable 3G ready telecom infrastructure that ensures quality in

its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the

deployment of a reliable, technologically advanced network.

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

Tata Teleservices bouquet of telephony services includes Mobile services, Wireless

Desktop Phones, Public Booth Telephony and Wireline services. Other services include

value added services like voice portal, roaming, post-paid Internet services, 3-way

conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling cardservices and enterprise services.

Some of the other products launched by the company include prepaid wireless desktopphones, public phone booths, new mobile handsets and new voice & data services suchas BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive

applications like news, cricket, astrology, etc.

Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their

offering Tata Indicom =Non Stop Mobile which allows customers to receive freeincoming calls. Tata Teleservices today has Indias largest branded telecom retail chain

and is the first service provider in the country to offer an online channel www.ichoose.in

to offer postpaid mobile connections in the country.

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

manpower needs.

Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 21 million customers in over 4000 towns. With an ambitious rollout plan

both within existing circles and across new circles, Tata Teleservices offers world-class

technology and user-friendly services in 20 circles.


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INTRODUCTION

Bharat Sanchar Nigam Limited (known as BSNL, India Communications CorporationLimited) is a public sector com munications company in India. It is the India's largesttelecommunication company with 25.14% market share as on December 31, 2007. Its

headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath,New Delhi. It has the status of Mini-ratna - a status assigned to reputed Public Sectorcompanies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently

BSNL has a customer base of 68.5 m illion (Basic & Mobile telephony). It has footprintsthroughout India except for the metropolitan cities of Mumbai and New Delhi which aremanaged by MTNL. As on December 31, 2007 BSNL commanded a customer base of

31.7 million Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers.BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b(US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India'slargest Telco and one of the largest Public Sector Undertaking with estimated market

value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10 %to public.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largestTelecommunications Company providing comprehensive range of telecom services in

India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,

MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has

become one of the largest public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing onimproving it, expanding the network, introducing new telecom services with ICT

applications in villages and wining customer's confidence. Today, it has about 47.3million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSMCapacit y, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602Districts, 7330 cities/towns and 5.5 Lakhs villages .

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

bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator inthe country to beat its reach with its wide network giving services in every nook & cornerof country and operates across India except Delhi & Mumbai. Whether it is inaccessibleareas of Siachen glacier and North-eastern region of the country. BSNL serves itscustomers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company

offers vide ranging & most transparent tariff schemes designed to suite every customer.


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BSNL cellular service, CellOne, has more than 17.8 million cellular customers,garnering 24 percent of all mobile users as its subscribers. That means that almost

every fourth mobile user in the country has a BSNL connection. In basic services, BSNLis miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per centshare of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customerswho access Internet through various modes viz. Dial-up, Leased Line, DIAS, AccountLess Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, m ulti-protocol convergent IP infrastructure

that provides convergent services like voice, data and video through the same

Backbone and Broadband Access Network. At present there are 0.6 million DataOnebroadband customers.The company has vast experience in Planning, Installation, network integration andMaintenance of Switching & Transmission Networks and also has a world class ISO9000 certified Telecom Training Institute.

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

BSNL plans to expand its customer base from present 47 millions lines to 125 million

lines by December 2007 and infrastructure investment plan to the tune of Rs. 733crores (US$ 16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services

and the desire to excel has made BSNL the No. 1 Telecom Company of India.

History

The foundation of Telecom Network in India was laid by the British sometime in

19th century. The history of BSNL is linked with the beginning of Telecom in India. In19th century and for almost entire 20th century, the Telecom in India was operated as aGovernment of India wing. Earlier it was part of erstwhile Post & Telegraph Department(P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was

responsible for running of Telecom services in entire country until 1985 whenMahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom

services of Delhi and Mumbai. It is a well known fact that BSNL was carved out ofDepartment of Telecom to provide level playing field to private telecoms.Subsequently

in 1990s the telecom sector was opened up by the Government for Private investment,therefore it became necessary to separate the Government's policy wing from

Operations wing. The Government of India corporatised the operations wing of DoT onOctober 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL

operates as a public sector.


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What is prepaid mobile service?

Prepaid cellular services are getting very popular these days. Many people now preferprepaid services since they offer a variety of advantages related to lifestyle and costcontrol that simply are not available through post-paid contract based services.

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

Get you own cell phone with no credit check!

It's today's safe, convenient, and flexible way to manage your spending on cellularphones.Prepaid cell phones are convenient and easy to get because there are:

* no contracts* no credit checks

* no deposits* no monthly bills* no activation or early termination fees

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

hefty monthly fees.

Great Cost Control with No surprises!

Increasing consumer demand for prepaid cellular phones

Prepaid cellular services are currently the fastest-growing segment of the wirelessphone market, perhaps because wireless service can be started up with no subscription

fee for well under $100. More and more people are using this service to control

spending than to get around credit problems.

In Europe, already more thatn 60 % of subscribers are on a prepaid wireless plan, while

in the United States, only 8 to 10 percent of users have chosen that system. But it's

growing fast: in Canada, for example, some providers see their prepaid subscribersbase increase 50% faster than those of an ordinary monthly billed service.


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Prepaid cellular phones are ideal in the following situations:

* If you want to budget your cell phone use, or* If you want a phone for occasional use but don't want to pay a monthly service fee

or enter a long-term agreement, or* If you have no credit history or past credit problems, or

* If your usage varies from month to month, or* If you want to buy your children a phone for emergency use but restrict the amountof calls they can make, or* If you are looking for a gift. or

* If you don't feeling comfortable providing information for a carrier credit check, or

* If you want to learn about your usage patterns before committing to a long-term

monthly billing wireless contract.


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What is lifetime validity?

Lifetime prepaid means that your cell-phone connection remains valid for life. You also

get a minimal talktime, ranging from Rs 10 to Rs 100 .The good part is that all

subsequent recharges give you full talk time. There will be no processing charges,something that is a big turn-off for prepaid customers. For instance, out of the Rs 335

an Airtel prepaid customer in Delhi pays to recharge his connection for 30 days, Rs 150go into processing fees. Another Rs. 31 goes to the government as tax and he getsairtime worth only Rs 154. If he takes the lifetime validity offer, the same Rs 335recharge will give him talk time worth Rs 302 and thats for life. By saving o n the Rs

150 processing fee, he will recover the one-time charge for lifetime validity in a few

months.Lifetime plans allow pre-paid subscribers to have lifetime validity for a one-time

payment. The user can then continue to receive calls without having to recharge.


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Life time plans of the cellular companies

The Life Time Plan of Airtel

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

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

Local outgoing tariff reduced to Re. 1/- for life to all networks (mobile & landline) from

Rs. 1.99/- for Rs. 295/- Lifetime Prepaid customers.

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

Bharti Airtel, Indias leading telecom service provider, today announced the Rs. 495/ -

Lifetime Prepaid offer for its customers in Delhi & NCR circle and slashed all local

outgoing calls (mobile and landline) to Re. 1/- from the existing Rs. 1.99/- per minutecall rate.

Bharti Airtel, which was also the first service provider to introduce the Lifetime Prepaidin India, announced this revolutionary tariff cut for customers that was earlier applicableto only the Rs. 999/- Lifetime customers. With effect from february 15, 2008, all Rs.295/- Lifetime Prepaid customers will be able to make local outgoing calls (Mobile &Landline) at Re. 1/- per minute and all existing customers will be migrated to the revisedtariff plan without any extra charges. Customers will have to recharge with a minimum

amount of Rs. 200/- at least once in every 180 days to enjoy the lifetime validity and

tariff benefits .


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Airtel ka Super Lifetime Validity

Pulse Rate60 sec

Price of Pack (Rs.)295

Free Airtime on Pack (Rs.) 150

Incoming Calls (Rs.)-

Airtel GSM / Landline /

CDMA WLL(10 Digit)

LOCAL RATES (Rs./min) 1 (night tarif f 1 1from 11pm to

7 am @ 10

paise)

STD RATES (Rs./min)2.65 2.65 2.65

ISD (Rs./min)

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

Zealand.

Gulf, Europe (Mobile), 9.20SAARC countries, Africa &

Rest of the world

Cuba, Sao Tome & Principe, 40Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,

Vanuatu, Cook Islands,Tuvalu, Tokelau, NorfolkIsland, Sakhalin

SMS (Rs.)

Local 1

National 2

International 5

Other Details

PF on subsequent talktime recharges to be as per bands specified i.e. Rs 1-100: 25%, Rs

101-199: 15%, Rs 200 & above: NIL. This is waived for the first 90 days from 25th Feb08. Min recharge condition of Rs 200/- in 180 running day


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Idea - Lifelong Validity Recharge Voucher

IDEA ka Lifelong Validity offer

Pulse Rate60 sec

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

Free Airtime on Pack (Rs.)5

Incoming Calls (Rs.)- free for lifelong

idea GSM / Landline /

CDMA WLL(10 Digit)

LOCAL RATES (Rs./min)1 1 1

STD RATES (Rs./min)2.75 2.75 2.75

ISD (Rs./min)

USA, Canada, Europe (Fixed Rs.6.99Line), Australia, Singapore,Hong Kong, Thailand,Malaysia, Indonesia, New

Zealand.

Gulf, Europe (Mobile), Rs.9.99SAARC countries, Africa &

Rest of the world

Cuba, Sao Tome & Principe, Rs.39.99Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,


SMS (Rs.)

Local 1

National 2

International 5

Promotional Offer All new customers taking 195 rs recharge on the date of activation, will

For New get Full TT in all recharges of Rs. 125/-(Till 30th April,2008.) Total TT-Activations* 111.25. Online TT-86.25, Offline TT-25 Rs. (within 48 hrs.)


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Reliance Sath Zindagi Bhar Ka(lifetime) offer

RComs new gambit is Rs 199 lifetime prepaid

Reliance Communications, the code-division multiple access major, which was the first

to launch the lifetime plan almost two years ago at a one-time cost of Rs 999, plans toannounce a similar scheme at one-fourth the price - Rs 199.

For making outgoing calls, the standard local tariff will be 99 paise per minute. Variousother calling tariff options will also be available to the users, depending on the trend of

ones usage.

RComs move looks like a replay of 2006, when mobile telephony players were

intensely competing with each other over lifetime pre-paid schemes.

ever, kept the operators busy all through 2007, and one didnt hearSpectrum war, how

about lifetime plans at all.


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Rcoms SATH ZINDAGI BHAR KA plan

Pulse Rate60 sec

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

Free Airtime on Pack (Rs.)5


Rel. GSM / Landline /

CDMA WLL(10 Digit)

LOCAL RATES (Rs./min)0.99 0.99 0.99

STD RATES (Rs./min)2.75 2.75 2.75

ISD (Rs./min)

USA, Canada, Europe (Fixed Rs.6Line), Australia, Singapore,Hong Kong, Thailand,

Malaysia, Indonesia, NewZealand. }17

Gulf, Europe (Mobile),

SAARC countries, Africa &Rest of the world

Cuba, Sao Tome & Principe,Guinea Bissau, Diego Garcia,

Nauru, Solomon Islands,Vanuatu, Cook Islands,Tuvalu, Tokelau, NorfolkIsland, Sakhalin

SMS (Rs.)

Local 1

National 2

International 5


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BSNLs Excel ANANT plan

BSNLs Excel Anant plan

Pulse Rate60 sec

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



BSNL GSM / Landline /

CDMA WLL(10 Digit)

LOCAL RATES (Rs./min) 1.00 1.40 1.00

STD RATES (Rs./min)2.75 2.75 2.75

ISD (Rs./min)

USA, Canada, Europe (Fixed Rs.7.20Line), Australia, Singapore,Hong Kong, Thailand,

Malaysia, Indonesia, New

Zealand.

Gulf, Europe (Mobile), Rs.9.60SAARC countries, Africa &Rest of the world

Cuba, Sao Tome & Principe, Rs.12.00Guinea Bissau, Diego Garcia,Nauru, Solomon Islands,


SMS (Rs.)

Local 1

National 2

International 5

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


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Indicoms GO LIFE planTATA

TATA indicoms GO LIFE plan

Pulse Rate60 sec

Price of Pack (Rs.)489


Incoming Calls (Rs.)- free for lifetime

indicom GSM / Landline /

CDMA WLL(10 Digit)

LOCAL RATES (Rs./min) 1.50 2.00 2.00

STD RATES (Rs./min)2.75 2.75 3.00

ISD (Rs./min)

USA, Canada, Europe (FixedLine), Australia, Singapore,Hong Kong, Thailand,

Malaysia, Indonesia, New

Zealand. }Rs. 17.20

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

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


SMS (Rs.)

Local 1

National 2

International 5

Lifetime validity is subject to the license period till of Tata Teleservices ltd. d. Connections withno usage (incoming, outgoing or recharge) for a continuous period of 180 days will bechurned/deactivated.


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Comparison of lifetime plans of all cellularcompanies

Charges ( call rates )Cellular co.s Lifetime (Rs.)

planOwn Other STD International SMSRs.network network L/N/I

Airtel 295 1 1 2.65 6.4/9.2/40 1/2/5

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

Rcom 199 0.99 0.99 2.99 6/17 1/2/5

Tata 489 1.50 2 2.75 17.20 1/2/5

Indicom


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TRAI on Lifetime validity plans

TRAI asks mobile operators to disclose key issues of lifetime plans

TRAI has asked the mobile operators offering lifetime connectivity plans to

disclose 'risk factors', like change in tariff plans and their remaining licenseperiod duration, in their announcement.

The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguardsto protect consumer interest in the lifetime validity tariff schem es being offered byphone companies. These include a restriction on the companies from hiking the tariff onany item specified in the plans and an obligation to inform the subscribers of the monthand year of the expiry of current license.

The amendment to the Telecommunication Tariff Order thus addresses a moral issuethat had arisen after phone companies began promoting lifetime schemes their

licenses are for a limited span ranging from seven to 15 years while they were offering a

tariff that went well beyond the license period. It also answered a question in the minds

of the subscribers whether there would be subsequent demands from phone companies

after the initial upfront payment. TRAI made it clear that in the case of tariff plansoffered or marketed as having lifetime or unlimited validity, the subscribers should getthe service as long as the phone company is permitted to provide such telecom serviceunder the current license or renewed license. TRAI has also reiterated the right of the

subscribers to choose any tariff plan at any point of time.

TRAI released a `Regulation on Code of Practice for Metering and Billing Accuracy.'With no stakeholder replying to the consultation paper on billing issues that alsocontained a code of practice for metering and billing accuracy, TRAI decided to issuethe regulation. It has directed companies before enrolling a customer to inform in

writing, within a week of activation of service, the complete details of the tariff plan.Charges for a value added service (download of film clip, ring tone and the like) or entry

to an interactive service (such as a game) must be provided before the customer commits to use the service.


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CHAPTER-3


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RESEARCH METHODOLOGY

Definition of Research

The word research is derived from the Latin word meaning to know. It is a systematic

and a replicable process, which identifies and defines problems, within specified

boundaries. It employs well-designed method to collect the data and analyses the

results. It disseminates the findings to contribute to generalize able knowledge. The

characteristics of research presented below will be examined in greater details later are:

Systematic problem solving which identifies variables and tests relationships

between them,

Collecting, organizing and evaluating data.

Logical, so procedures can be duplicated or understood by others

Empirical, so decisions are based on data collected

Reductive, so it investigates a small sample which can be generalized to a

larger population

Replicable, so others may test the findings by repeating it.

Discovering new facts or verify and test old facts.

Developing new scientific tools, concepts and theories, which would facilitate

to take decision.

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

population was interest. Demographic factors like age, income and educational

background was used for the classification purpose.


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Sample size

For carrying out any research or study on any subject it is very difficult to cover even10% of the total population. Therefore the sample size has to be decided for a

meaningful conclusion. For designing the sample size, it was thought proper to cover a

very small percentage of population in various age groups.

The method used for sample technique was non probability convenience sampling method. This method is used because it is known previously as to whether a particular

person will be asked to fill the questionnaire. Convenient sampling is used because onlythose people will be asked to fill the questionnaires who were easily accessible and

available to the researcher.

Considering the constraints, it was decided to conduct the study based on sample size

of 100 people in specific age groups. Scientific method is not adopted in this study because of financial constraints and also because of lack of time; also the basic aim ofdoing the research is academ ic, hence most convenient way is selected.


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TYPES & TECHNIQUES

The study conducted is a conclusive descriptive statistical study; the researcher comes

to the decision which is precise and rational. The study is conclusive because after doing the study the researcher comes to a conclusion regarding the position of thebrand in the minds of respondents of different firms groups. The study is statistical because throughout the study all the similar samples are selected and group together.

All the similar responses are taken together as one and their percentages arecalculated.

Thus, this, conclusive descriptive statistical study is the best study for this purpose as it

provides the necessary information which is utilize to arrive at a concrete decision.


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TOOLS USED

To know the response I have used the questionnaire method in sample survey. If onewishes to find what people think or know, the logical procedure is to ask them. This has

lead marketing researchers to use the questionnaire technique for collecting data more

than any other method.

In this method questionnaire were distributed to the respondents and they were asked

to answer the questions in the questionnaire. The questionnaires were structured non-disguised questionnaire because the questions, which the questionnaire contained,

were arranged in a specific order besides every question asked were logical for the

study, no question can be termed as irrelevant.

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


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LIMITATIONS OF THE STUDY

The research will be conducted in a limited area.

The internet information can be irrelevant.

Time will be a major constraint.

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

The respondent may be biased.

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


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CHAPTER-4

DATA ANALYSIS &INTERPRETATION


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DATA ANALYSIS & INTERPRETATION

Q1. Which telecom service do you use?

Options Percentage of respondents

Mobile 55

Landline 5

Both 40


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Q2. Which cellular service do you use?


Airtel 34

idea28

Reliance 17

BSNL 16

Tata indicom 5

Q3. Which service you r using?


Prepaid 95

Postpaid 5


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Q4. Are you using lifetime or general plan?

Option Percentage of respondents

Lifetime 73

General 27

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


Yes 64

No 36


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


Call rates 15

Massage Tariff 1

Night Tariff 1

Validity 83

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


Yes 78

No 22


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


Fully satisfied 14

Satisfied 47

Average 27

Dissatisfied 8

Highly dissatisfied 2

Q9. Why you chose lifetime plan?


For incom ing purpose only 23

For money saving 48


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For the facilities provided in the plan 29

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

Option

Percentage of respondents

Yes 24

No 76


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CHAPTER-5


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OBSERVATION & FINDINGS

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

34% of respondents are using the Airtel services, which is the highest

percentage of users of cellular phone. Idea takes 2 ndplace in Bhopal with 28% ofusers. Then comes reliance and BSNL, and tata indicom having least custom ers

in the Bhopal.

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

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

64% of respondents are satisfied with the call rates of the lifetime plans, it isbecause telecom companies have slashed their call rates few m onths ago. Still in

this situation 36% of respondents did not satisfy with the call rates which service

they are using.

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

78% of customer satisfied with the lifetime plans of cellular companies, and

which are not satisfy with the ser vice they are mostly BSNL and TATA indicom users.


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Most of the people are using lifetime services because of money savings with thepercentage of 48. Where 29% of people like this service because of the facilities

provided by the operators. And 23% of people are using this service because ofincoming only.

When it was asked to the respondents that did they know about the license of the

cellular company, then most of the people replied NO. it means people are notaware about the license related bound of the cellular companies which isimplemented by TRAI, that cellular companies can deliver their services untiltheir license have validity, they have to renew it for providing further service.

CONCLUSIONS

In Bhopal it is found that Airtel is the market leader in the lifetime plan segment. People

like the lifetime plans provided by the companies. And Idea having 2 highestnd

customers in Bhopal

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

But they are not aware about the bound of cellular companies with TRAI, that cellular

companies can deliver their services till their license have validity, they have to renew itfor providing further service.


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SUGGESTIONS

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

They should provide other facilities like massage and minimum call rates in thesame network.

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

They should not take other hidden charges.

There should not be any compulsion that customer have to recharge their card in

180 days with certain amount. This is the main drawback of the lifetime validityplan.


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BIBLOGRAPHY

Books:

Philip Kotler, =marketing management prentice Hall of India Pvt. Ltd. New Dehli.

C. R. Kothari =Research methodology, vishwa publication, New Delhi.

Saxena Rajan =marketing management Tata Mcgraw -hill publicating Co. Ltd. NewDelhi.

H. V. Verma =marketing of services Global business press, New Delhi.

Business today magazine of February issue,2008.

Web Resources :

www.trai.gov.inhttp://www.tataindicom.com/t-aboutus-ttsl-organization.aspx

http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp

http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea

http://www.bsnl.co.in/about.htmhttp://www.bsnl.co.in/service/tariff_excel_pre.htmhttp://210.212.144.243/utility/tariff.htm

http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdfwww.airtel .in

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


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ANNEXURE


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Questionnaire

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

Sex - 1) Male 2) Female

1) Under graduateEducation- 2) Graduate 3) Post graduate

4) Other

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

Income- 1) 10K 2) Above10k 3) 20k

4) Above 20k

Address- 1) Rural 2) Urban

Q1. Which telecom service do you use?

a) Mobile b) Landline c) Both

Q2. Which cellular service do you use?

a) Airtel b) idea c) Reliance d) BSNL

e) Tata indicom

Q3. Which service you r using?

a) b) Postpaid

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

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

a) Yes b) No


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

a) Call rates b) Massage Tariff c) Night Tariff

d) Validity

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

a) Yes b) No

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

a) Fully satisfied b) Satisfied c) Average

d) Dissatisfied e) Highly dissatisfied

Q9. Why you chose lifetime plan?

a) For incoming purpose only b) For money saving

c) For the facilities provided in the plan

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

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