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INTRODUCTION

"Telecommunications is the backbone of our future economy. International

competitiveness increasingly depends on the development of a telecommunications

infrastructure that is compatible with international standards"

The cellular industry all over the world has been witnessing very high growth rates in

subscriber base in recent years. For developing countries in particular, cellular services

are becoming a very significant proportion of the overall telecom infrastructure. The

mechanics of competition within this market involve complex feedback effects between

individual service providers and with their operating environment, and these forces play

an important role in governing the growth of this industry.

In a country like India which is not yet telephone-saturated and the ongoing changes in

related areas are resulting in a rapidly changing profile of users, providers and their

respective needs, continuous revision of the telecom policy is imperative. Given the

emerging new technologies and the integrating economies there must be fairness among

competitors.

The tele-density in India is about four per hundred people in respect of the fixed

telephones and a little less than one in respect of the mobile telephony. The low densities

are not because there is no need for a telephone but because of its high cost that many

cannot afford that one. The situation here is nothing but holding true of the law of

demand. Isnt it?

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The cost for the companies can come down if the revenue share imposed on them as a

condition of license is abolished or drastically reduced. Today every telephone company

is bound to pay a share out of its revenue to the exchequer. These costs are, however,

not to be scheduled to take a step further in the development of the telecom. In addition

when we go through the telephone bill there is a 5 to 8% service charge. This amount

also does not go for the telecom development. If these external cost are removed there

can be seen a spurt in demand of not less then 40% as expected.

While taking the side of suppliers a lot of new companies are coming into the battlefield

resulting in reduction of prices and hence a little less burdensome on to the customer.

The cost of interconnection with the incumbent is proving to be contributory to the high

cost of services provided by the competitors.

The delay in the interconnection disregards the quality of service and high cost will

detract from affordability. This is an area in which no consumer body can knowledgeably

contribute unless it has the assistant of experts or economists who alone can discover all

the relevant fact of all the contesting companies. It indicates the pre-eminent domain of

TRAI (Telecom Regulatory Authority of India).

As the driven down of the prices for long distance including international services reduces

the amount available for subsidizing the local service, the rental for local services are

being increased. Considering that about 90% of the long distance calls are made by less

than 20% of customers, 80% of customers are having to pay higher rental this depresses

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the demand for telephones and affordability. The urban business subscribers will be

bearing the bond of the subsidies to be given to the rural private consumers.

1.1 History of Cellular Telephony in India:

The technology that gives a person the power to communicate anytime, anywhere - has

spawned an entire industry in mobile telecommunication. Mobile telephones have

become an integral part of the growth, success and efficiency of any business / economy.

The most prevalent wireless standard in the world today, is GSM. The GSM Association

(Global System for Mobile Communications) was instituted in 1987 to promote and

expedite the adoption, development and deployment and evolution of the GSM standard

for digital wireless communications.

The GSM Association was formed as a result of a European Community agreement on

the need to adopt common standards suitable for cross border European mobile

communications. Starting off primarily as a European standard, the Groupe Speciale

Mobile as it was then called, soon came to represent the Global System for Mobile

Communications as it achieved the status of a world-wide standard. GSM is today, the

world's leading digital standard accounting for 68.5% of the global digital wireless market.

The Indian Government when considering the introduction of cellular services into the

country, made a landmark decision to introduce the GSM standard, leapfrogging

obsolescent technologies / standards. Although cellular licenses were made technology

neutral in September 1999, all the private operators are presently offering only GSM

based mobile services. The new licensees for the 4th cellular licenses that were awarded

in July 2001 too, have opted for GSM technology to offer their mobile services.

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1.2 Cellular Industry in India

The Government of India recognizes that the provision of a world-class

telecommunications infrastructure and information is the key to rapid economic and social

development of the country. It is critical not only for the development of the Information

Technology industry, but also has widespread ramifications on the entire economy of the

country. It is also anticipated that going forward, a major part of the GDP of the country

would be contributed by this sector. Accordingly, it is of vital importance to the country

that there be a comprehensive and forward looking telecommunications policy which

creates an enabling framework for development of this industry.

1.3 Cellular Market Structure in India

As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are

licensed to operate in designated geographical operating areas. The service areas

include four metro areas and 18 circles categorized as A, B and C. (The categorization is

based on the revenue Proceedings of the 36th Hawaii International Conference on

System Sciences).

The potential with category C circles in the lower end of the scale. For example the

metros account for 40% of the subscriber population, with Category-A, B and C

accounting for 33%, 23% and 4%respectively. The CMSPs had to pay an entry fee and

subsequently annual license fee as a percentage of their revenue to the Department of

Telecommunications.

The entry and license fees varied according to the service area, highest for metros and

lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing

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obligations and their licenses were revoked leading to a monopoly situation in certain

areas. Apart from these charges, each CMSP has to share the revenue with the long

distance operators for carrying inter-service area calls.

In profitable metros and circles, the competition is severe and the market is split between

the two operators. In a price-cap regulated market, the operators use appropriate pricing

strategy to win customers and win market share.

In highly price-elastic markets, such as in India, as the service provider reduces the price,

the subscriber base increases considerably, and so is the network traffic. The increased

network traffic decreases the performance and the quality of service, inviting customers to

switch. Being a new entrant in a metro area, the government operator reduced the airtime

charges to such an extent that the subscriber base increased suddenly leading to poor

network performance. The operator did not have enough network capacity to handle calls

leading to blocking of calls, with frustrated customers switching over immediately to

competitors.

The operators also have to resort to non-pricing competition strategies to win customers.

In India, CMSPs offer a variety of service plans as a means to attract new customers.

Different service plans include: pre-paid calling card schemes, discounted airtime rates

for evening and night time calls, discounted roaming charges, no or minimum activation

fees, and reduced mobile to mobile long distance call rates.

The service providers incur additional advertising and infrastructure cost for implementing

these plans. Short Message Service (SMS) and Wireless Application Protocol (WAP)

service are fast catching up. For example, in India, about 500,000 SMS messages are

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being carried by a service provider in one metro area alone. When the sector moves over

to an oligopoly market, the operators have to provide improved quality of service and

value added services in order to survive and gain market share.

Larger operators who have experience and infrastructure may be able to provide a higher

quality of service and other value-added service at a lower price. They also have access

to larger project financing for enlarging their networks and services. For example, a single

large operator now has license to operate in 14 service areas in the country with the

largest footprint to cover most of the areas of the country. Mergers and acquisitions are

commonplace as the operators are consolidating their revenues to survive in the market

places.

Cellular subscribers and those with a propensity to go mobile in Delhi have never had it

so good. They now have four service providers to choose from, each offering an array of

both pre- and post-paid schemes. More importantly, average tariffs across plans have, by

some reckoning, dropped by at least 50 per cent in the last six months. The entry of

Vodafone saw a further drop in tariffs and the operators have come out with new

schemes to retain their subscribers and attract fresh ones.

What does this mean for subscribers and for the cellular industry in Delhi? All the four

operators Essar Mobile Services Ltd., Bharti Celluar Ltd, MTNL and Idea Cellular services

are convinced that the market will only expand and the subscribers will benefit even

more. Their reasoning is that cellular penetration in Delhi, which traditionally occupies the

third position in other areas, is less than fifty per cent. Therefore, entry of new players will

only increase awareness about the facility, the companies say.

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Moreover, the state-owned MTNL has also been playing with its cellular service for quite

some time. that, with the imminent launch of limited mobility using CDMA (code division

multiple access) technology by companies like Tata Tele Services will only add to the

subscriber base, probably result in further reduction of tariffs, and an even greater

widening of the cellular market, according to officials in four cellular companies now

servicing Delhi.

However, the companies also sound a note of caution any further drop in tariffs will be

harmful to the companies, points out one of the officials taking care of the Sales &

Marketing division of the, Essar Mobile Services Ltd, average tariffs in Delhi across

different plans have fallen by 30 per cent since December with launching of the CDMA

services.

Besides the fall in tariffs, what has really happened with the entry of CDMA is a

heightened awareness in the market. Mobile penetration in Delhi and its suburbs is

estimated to be less than twenty-five percent of the population and the cellular operators

believe that this number should definitely go up.

It is here that Vodafone decided to target the customers with what it believes are unique

products and features. Its emphasis has been on value proposition and brand building.

Mobility is not only about carrying voice, as per the reports from the marketing

department and adds that the unified messaging system for the post-paid customers of

(now Vodafone) is one such unique product.

Accordingly, Vodafone signed in its subscribers in lakhs from the year onwards it has

been launched in Delhi. Industry analysts say that a majority of them will be pre-paid

customers, whose loyalty to a particular brand is always in doubt. However, pre-paid for

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the cellular is nothing but the engine for growth and there is always a possibility that most

of them will shift to post-paid once they are convinced of the quality of service provided.

On the other hand the entry of a new operator lends more visibility to the service and

there is also increased trade activity that is the number of dealers will increase and

more people will be on the road trying to sell the service and product. There is also

greater consumer awareness of what cellular service can deliver and expectations go up

in terms of pricing or service standards or network availability.

1.4 The Churn in the Cellular Industry:

As like the other products Cellular industry has not been left untouched from the Churn

(switching over). During the survey this fact comes to the fore. According to the cellular

operators, there is a normal seven to eight percent churn in the customers, especially in

the pre-paid category. Among the post-paid customers, the Churn is much lower about

two-three percent.

They say that one significant change that has happened in the last few months, more so

since lowering of the tariffs, is that the bias in favour of incoming calls as far as call

charges are concerned incoming calls has been set free while they are charging

reasonably only for the outgoing ones has changed. A tariff re-balancing has definitely

taken place.

This means that the cellular operators are encouraging their subscribers to not just

receive calls, but also make calls increasing the usage of the service. With falling

tariffs, cellular operators are convinced that increasing usage is one way to ensure that

average revenue per user (ARPU) does not fall very low. The industry figure for ARPU is

believed to be about Rs.1,100 while it may vary from operator to operator. The operators

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are also concentrating on introducing more value added services to the customers.

Value-added services have not really taken off. Only the SMS (short messaging service)

has really caught on, but operators like Bharti are bringing in services like music

messaging and concierge facility for its subscribers.

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Chapter 2

CONSUMER BUYING

BEHAVIOR

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CONSUMER BUYING BEHAVIOR

1. Consumer Buying Behavior

Buying Behavior is the decision processes and acts of people involved in buying and

using products.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm

needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms

success.

The marketing concept stresses that a firm should create a Marketing Mix(MM)

that satisfies (gives utility to) customers, therefore need to analyze the what,

where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

2.1 STAGES OF THE CONSUMER BUYING PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual

purchasing is only one stage of the process. Not all decision processes lead to a

purchase. All consumer decisions do not always include all 6 stages, determined by the

degree of complexity...discussed next.

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THE 6 STAGES ARE:

1. Problem Recognition (awareness of need)--difference between the desired

state and the actual condition. Deficit in assortment of products. Hunger--Food.

Hunger stimulates your need to eat.

Can be stimulated by the marketer through product information--did not know you

were deficient? I.E., see a commercial for a new pair of shoes, stimulates your

recognition that you need a new pair of shoes.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives (word of

mouth). Marketer dominated sources; comparison shopping; public sources

etc.

A successful information search leaves a buyer with possible alternatives, the

evoked set.

Hungry, want to go out and eat, evoked set is

o chinese food

o indian food

o burger king

o klondike kates etc

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the

buyer wants or does not want. Rank/weight alternatives or resume search. May

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decide that you want to eat something spicy, Indian gets highest rank etc.

If not satisfied with your choice then return to the search phase. Can you think of

another restaurant? Look in the yellow pages etc. Information from different

sources may be treated differently. Marketers try to influence by "framing"

alternatives.

4. Purchase decision--Choose buying alternative, includes product, package,

store, method of purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product

availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.

Cognitive Dissonance, have you made the right decision. This can be reduced

by warranties, after sales communication etc.

After eating an Indian meal, may think that really you wanted a Chinese meal instead.

2.2 TYPES OF CONSUMER BUYING BEHAVIOR

Types of consumer buying behavior are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek

information about a certain products and brands but virtually ignores others.

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High involvement purchases--Honda Motorbike, high priced goods, products visible to

others, and the higher the risk the higher the involvement. Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior--buying low involvement frequently

purchased low cost items; need very little search and decision effort; purchased

almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain

information about unfamiliar brand in a familiar product category, perhaps.

Requires a moderate amount of time for information gathering. Examples include

Clothes--know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products. High degree of

economic/performance/psychological risk. Examples include cars, homes,

computers, education. Spend alot of time seeking information and deciding.

Information from the companies MM; friends and relatives, store personnel etc. Go

through all six stages of the buying process.

Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior.

Product can shift from one category to the next.

For example:

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does not go out often at all), but limited decision making for someone else. The reason for

the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will

also determine the extent of the decision making.

2.3 CATEGORIES THAT EFFECT THE CONSUMER BUYING DECISION

PROCESS

A consumer, making a purchase decision will be affected by the following three factors:

1. Personal

2. Psychological

3. Social

The marketer must be aware of these factors in order to develop an appropriate MM for

its target market.

Personal

Unique to a particular person. Demographic Factors. Sex, Race, Age etc.

Who in the family is responsible for the decision making?

Young people purchase things for different reasons than older people.

Highlights the differences between male and female shoppers in the

supermarket.

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Psychological factors

Psychological factors include:

Motives--

A motive is an internal energizing force that orients a person's activities toward

satisfying a need or achieving a goal.

Actions are effected by a set of motives, not just one. If marketers can identify

motives then they can better develop a marketing mix.

MASLOW hierarchy of needs!!

o Physiological

o Safety

o Love and Belonging

o Esteem

o Self Actualization

Need to determine what level of the hierarchy the consumers are at to determine

what motivates their purchases.

Nutrament, a product marketed by Bristol-Myers Squibb originally was targeted at

consumers that needed to receive additional energy from their drinks after exercise

etc., a fitness drink. It was therefore targeted at consumers whose needs were for

either love and Belongingoresteem. The product was not selling well, and was

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almost terminated. Upon extensive research it was determined that the product did

sell well in inner-city convenience stores. It was determined that the consumers for

the product were actually drug addicts who couldn't not digest a regular meal.

They would purchase Nutrament as a substitute for a meal. Their motivation to

purchase was completely different to the motivation that B-MS had originally

thought. These consumers were at the Physiologicallevel of the hierarchy. BM-S

therefore had to redesign its MM to better meet the needs of this target market.

Motives often operate at a subconscious level therefore are difficult to measure.

Perception--

What do you see?? Perception is the process of selecting, organizing and

interpreting information inputs to produce meaning. IE we chose what info we pay

attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing, smell

and touch.

Selective Exposure-select inputs to be exposed to our awareness. More likely if it

is linked to an event, satisfies current needs, intensity of input changes (sharp

price drop).

Selective Distortion-Changing/twisting current received information, inconsistent

with beliefs.

Advertisers that use comparative advertisements (pitching one product against

another), have to be very careful that consumers do not distort the facts and

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perceive that the advertisement was for the competitor. A current example...MCI

and AT&T...do you ever get confused?

Selective Retention-Remember inputs that support beliefs, forgets those that don't.

Average supermarket shopper is exposed to 17,000 products in a shopping visit

lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500

advertisement per day. Can't be expected to be aware of all these inputs, and

certainly will not retain many.

Interpreting information is based on what is already familiar, on knowledge that is

stored in the memory.

Problems marketing wine from South Africa. Consumers have strong perceptions

of the country, and hence its products.

Ability and Knowledge--

Need to understand individuals capacity to learn. Learning, changes in a person's

behavior caused by information and experience. Therefore to change consumers'

behavior about your product, need to give them new information re: product...free

sample etc.

South Africa...open bottle of wine and pour it!! Also educate american consumers

about changes in SA. Need to sell a whole new country.

When making buying decisions, buyers must process information.

Knowledge is the familiarity with the product and expertise.

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There is a difference between attitude and intention to buy (ability to buy).

Personality--

All the internal traits and behaviors that make a person unique, uniqueness arrives

from a person's heredity and personal experience. Examples include:

o Workaholism

o Compulsiveness

o Self confidence

o Friendliness

o Adaptability

o Ambitiousness

o Dogmatism

o Authoritarianism

o Introversion

o Extroversion

o Aggressiveness

o Competitiveness.

Traits effect the way people behave. Marketers try to match the store image to the

perceived image of their customers.

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There is a weak association between personality and Buying Behavior, this may be

due to unreliable measures. Nike ads. Consumers buy products that are consistent

with their self concept.

Lifestyles--

Recent US trends in lifestyles are a shift towards personal independence and

individualism and a preference for a healthy, natural lifestyle.

Lifestyles are the consistent patterns people follow in their lives.

EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable

in US until 1920's. Now an assault by the American Academy of Dermatology.

Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's

family, reference groups, social class and culture.

Opinion leaders--

Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay)

spokespeople to market their products. Michael Jordon (Nike, McDonalds,

Gatorade etc.)

Can be risky...Michael Jackson...OJ Simpson...Chevy Chase

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Roles and Family Influences--

Role...things you should do based on the expectations of you from your position

within a group.

People have many roles.

Husband, father, employer/ee. Individuals role are continuing to change therefore

marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must understand:

o that many family decisions are made by the family unit

o consumer behavior starts in the family unit

o family roles and preferences are the model for children's future family (can

reject/alter/etc)

o family buying decisions are a mixture of family interactions and individual

decision making

o family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages, each stage creates different

consumer demands:

o bachelor stage...most

o newly married, young, no children...me

o full nest I, youngest child under 6

o full nest II, youngest child 6 or over

o full nest III, older married couples with dependent children

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o empty nest I, older married couples with no children living with them, head

in labor force

o empty nest II, older married couples, no children living at home, head retired

o solitary survivor, in labor force

o solitary survivor, retired

o Modernized life cycle includes divorced and no children.

Because 2 income families are becoming more common, the decision maker within

the family unit is changing...also, family has less time for children, and therefore

tends to let them influence purchase decisions in order to alleviate some of the

guilt. (Children influence about $130 billion of goods in a year) Children also have

more money to spend themselves.

Reference Groups--

Individual identifies with the group to the extent that he takes on many of the

values, attitudes or behaviors of the group members.

Families, friends, sororities, civic and professional organizations.

Any group that has a positive or negative influence on a persons attitude and

behavior.

Membership groups (belong to)

Affinity marketing is focused on the desires of consumers that belong to reference

groups. Marketers get the groups to approve the product and communicate that

approval to its members. Credit Cards etc.!!

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Aspiration groups (want to belong to)

Disassociate groups (do not want to belong to)

Honda, tries to disassociate from the "biker" group.

The degree to which a reference group will affect a purchase decision depends on

an individuals susceptibility to reference group influence and the strength of his/her

involvement with the group.

Social Class--

an open group of individuals who have similar social rank. US is not a classless

society. US criteria; occupation, education, income, wealth, race, ethnic groups

and possessions.

Social class influences many aspects of our lives. IE upper middle class

Americans prefer luxury cars Mercedes.

o Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic

names.

o Lower-upper class, 1.2%, newer social elite, from current professionals and

corporate elite

o Upper-middle class, 12.5%, college graduates, managers and professionals

o Middle Americans-middle class, 32%, average pay white collar workers and

blue collar friends

o Working class, 38%, average pay blue collar workers

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o geographic regions

o human characteristics such as age and ethnic background.

Culture effects what people buy, how they buy and when they buy.

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Company Profile

Airtel

&

Vodafone

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Company Profile of Airtel

3.1 AIRTEL

Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated

telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services,

which include Cellular, Basic, Internet and recently introduced National Long Distance.

Bharti also manufactures and exports telephone terminals and cordless phones. Apart

from being the largest manufacturer of telephone instruments in India, it is also the first

company to export its products to the USA. Bharti is the leading cellular service provider,

with a footprint in 23 states covering all four metros and more than 8 million satisfied

customers.

Airtel & Visual Identity

For a brand to be successful, it must build enduring relationships with its different

audiences. Integral to this relationship is the visual image of the brand the consumer

carries in his/her mind. The Airtel brand image is created through the consistent

application of a carefully developed visual identity, which helps Airtel distinguish itself in a

cluttered market. Airtel's visual identity helps create instant brand recall and strengthens

the relationships that its audiences have with it.

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The Airtel visual identity has different elements that work together to create a strong and

consistent identity for the brand. The most important of these are:

The Airtel Logo

The Airtel logo is a strong, contemporary and confident symbol for a brand that is always

ahead of the rest. It is a specially drawn world mark.

The Airtel Image style

It incorporates two solid, red rectangular forms whose counter form creates an open

doorway.

The Airtel Typographical style

The title case lettering with its capital 'A' was deliberately chosen to reinforce the brand's

leadership position. The red dot on the letterform 'I' cues Airtel's focus on innovation.. The

words 'Express Yourself' are very much part of the brand identity.

The Airtel Colour Palette

The lettering is grey so that the pure black of Airtel is visually unharmed.

BHARTI TELE-VENTURES

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Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments

in telecommunications services. Its subsidiaries operate telecom services across India.

Bharti Tele-Ventures is India's leading private sector

provider of telecommunications services based on a strong customer base consisting of

approximately 11.84 million total customers which constitute, approximately 10.98 million

mobile and approximately 857,000 fixed line customers, as of March 31 , 2005

Corporate Structure

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Organisational Structure

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Mobile Division

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Overview

Bharti Tele-Ventures vision for its mobile business is To make mobile

communications a way of life and be the customers first choice.

The mission is to meet the mobile communication needs of the customer through 1) error

free service 2) Innovative products and services and 3) cost efficiency. The Companys

strategic objective is to consolidate its leadership position amongst the mobile service

providers in India.

The Indian mobile market, according to the COAI, has increased from approximately 3.6

million subscribers as of March 31, 2005 to approximately 51.03 million subscribers as of

March 31, 2008.

Despite this rapid growth, the mobile penetration rate in India, at approximately 6.9% as

of March 31, 2008, is significantly lower than the average mobile penetration rate in other

Asian and international markets.

The number of mobile subscribers in India is expected to show rapid growth over the next

four years. By 2012 it is projected at 60 million by COAI and 52 million by Gartner.

Bharti Tele-Ventures believes that the demand for mobile services in India will continue to

grow rapidly as a result of the following factors:

Lower tariffs and handset prices over time;

Growth in pre-paid customer category;

Greater economic growth & continued development of India's

economy;

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Higher quality mobile networks and services; and

Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in

all the twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries

providing mobile services under Bharti Cellular Limited.

As of March 31, 2008, 100% of India's total mobile subscriber market resided in the

Company's twenty three mobile circles, which collectively 100% of India's land mass.

Recent Achievements of Bharti Cellular Limited

With the Indian economy showing signs of a continued and robust growth in the coming

years, telecom cannot have a different outlook. Recent developments in the Indian

telecom sector have brought the world focus on what is being pronounced as the fastest

growing telecom market in the world. While crossing the landmark 200 mn subscribers

has indeed brought Indian telecom sector in the big league telecom markets, the best

ever rate of growth that we see is the added silver lining. No wonder the world focus is on

India, which in all modesty is bound to become the second largest telecom sector in the

world, after China. The telecom story unfolding in India has enough spice for any

aggressive player because the market is just growing and will continue to see more

action!

Bharti Airtel Ltd announced that it has crossed the 25-million customer base mark. In a

statement issued here, the company said, "The 25 million customer base covers mobile,

landline as well as broadband customers."

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This customer base was achieved in just over 10 years, making Bharti Airtel one of the

youngest companies in the category, the company claimed. Mr Manoj Kohli, President,

Bharti Airtel said, "It is indeed a remarkable achievement not only for us at Airtel, but also

for the country as it clearly underlines the coming of age of the Indian telecom sector.

Bharti Airtel's exponential growth highlights the undisputed position of India as the

telecom hotspot of the world as the economic development of a country is very clearly

linked with telecom penetration."

Strong focus on external as well as internal customers, strategic business alliances and a

scalable business model have together helped Bharti Airtel to achieve leadership

position, he added. The achievement comes shortly after Bharti Airtel was ranked among

the top 10 best performing companies in the world in the globally renowned Business

Week IT 100 list.

Strong Signs of growth

The set target of reaching around half a billion customers by 2010 and a teledensity of

around 45% seems achievable. What gives the industry the confidence of achieving

these numbers is the investor-friendly government policies, a consistently strong GDP

growth, the exploding young population and the Indian business model of being profitable

despite having the lowest tariff in the world. A case in reference can be the Indian market

currently re-attracting foreign players, who had abandoned the market for lucrative

propositions. The resurgent India story can be attributed to the phenomenal growth in the

BPO sector, growth in industrial production, housing sector, agricultural, fresh demands

from the burgeoning middle class population, investments in infrastructure, and finally

exports that strengthen our 'made in India' tag. On top of flexing muscles in the home turf,

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Indian operators/players have become more aggressive by spreading their wings abroad

by aquiring new licenses and existing companies.

Innovative technologies

In the wake of the western markets promising sluggish growth in the wireless, broadband

and fixed line segments, and investors turning heat on telecom giants being forced to

exist saturated markets, any action in India will be worth watching. I see substantial

telecom growth happening in the next two to four years with a slight slowdown in

investments later. The intensification of growth will be primarily driven by the wireless

market especially the 2.5G, 3G and WiMax in that order. With wireless users being

around 55% of the current population, there is vast scope for expansion of the 2.5G

network to provide the basic voice connectivity to the masses. Every operator intends to

seize the opportunity to grab the land and plans major investments in the area. Despite

almost a simultaneous deployment of 3G and WiMax in India, 3G is likely to have a

scorching growth depending on the availability of the spectrum. The current 2.5G

scenario in major cities shall add to the compulsion of operators to deploy 3G networks to

take advantage of the capacity and the device savvy Indian urban population. The Indian

urban market is as demanding as any other developed nations which has been proved by

the success of applications launched by service providers like CRBT and music

downloads. 3G brings in a broadband pipe to the wireless device thereby enabling launch

of bandwidth intensive services such as video streaming and mobile TV. Value added

services such as video on demand, video streaming, etc would be on customers' most

favored list when India embraces 3G.

With the government focus on broadband penetration and initiatives like e-Governance

and m-commerce, 3G and WiMax shall complement each other to drive the broadband

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penetration from the current dismal levels of 1.8 mn to a target of 20 mn by 2010 which

may seem overambitious to somebody who is new to the Indian telecom sector. While

markets for these innovative technologies would be large cities and metros, rural India is

thriving to get their pie.

Highlights for Third Quarter ended December 31, 2007

Market leader with a market share of all India mobile subscribers at 23.6%.

Highest ever-net addition of 63.9 lakh customers in a single quarter.

Total Revenues of Rs. 6,964 crore (up 42%Y-o-Y).

EBITDA of Rs. 2,963 crore (up 48%Y-o-Y).

Cash Profit of Rs. 2,882 crore (up 35% Y-o-Y).

Net Income of Rs. 1,722 crore (up 42%Y-o-Y).

Accomplishments

The largest private sector integrated telecommunications services group in India in

terms of the number of customers.

Largest Mobile footprint in India, covering 23 circles of INDIA.

Proven track record of managing growth - both organic as well as by way of

acquisitions.

First and largest private telecommunications services company offering fixed-line

services in India.

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Existing foreign shareholders have acquired direct and indirect equity interests in

the Company for a total consideration exceeding US$1 billion.

First private telecommunications company to launch long distance services.

First off the block to launch fixed-line services in all the four circles of Delhi,

Haryana, Karnataka and Tamil Nadu.

Airtel Mobile Strategy

Capture maximum telecommunications revenue potential with minimum

geographical coverage to maximize its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer

superior services.

Use the experience it has gained from operating its existing mobile networks to

develop and operate other mobile networks in India and to share the expertise

across all of its existing and new circles.

Attract and retain high revenue generating customers by providing competitive

tariffs, offering high quality customer support, proactive retention programs and

roaming packages across all of its mobile circles.

Provide affordable tariff plans to suit each segment of the market with a view to

expand the reach, thereby increasing the mobile customer base rapidly.

Vision

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To be globally admired for telecom services that delight

customers.

Mission

We will meet global standards for telecom services thatt delight

customers hrough:

Customer Service Focus

Empowered Employees

Innovative Services

Cost Efficiency

Services

Airtel Prepaid

Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises,

India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a

new way of life. With a host of great features, also simple to use, Airtel Prepaid makes

everything that you dreamt and believed, possible.

Airtel Postpaid

Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting,

innovative yet simple new ways to communicate, just when you want to, not just through

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words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to

your special people in your special way.

Airtel Roaming

Airtel's Roaming service allows you to use your mobile phone to make or receive calls

from almost anywhere in India and abroad.

Airtel Roaming gives you two great options:

Airtel National - Enjoy roaming in India across 42 partners networks and over

750 cities.

Airtel International - Roam across international destinations, in nearly 119

countries including USA, Canada, UK etc. with 284 partner networks.

Long Distance

Now experience complete freedom like never before with Airtel! Our National Long-

Distance facility allows you to make long distance calls in India and overseas from your

cellular phone. This service is applicable to both Postpaid and Prepaid customers.

VALUE ADDED SERVICES

Caller Identification (CLIP)

Call Identification gives you the power to know the phone number of the calling party

even before you answer the call, thus giving you the choice to either reject or take the

call. It provides the added advantage of saving the incoming number directly in the

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Handset Phone Book. So that the next time you want to call the same person, you don't

need to retype his number, simply use your phone book.

Dial-a-service

With Airtel's information services you can get upto-the-minute cricket scores, order

flowers as well as send couriers or check your daily horoscope.

FAX & DATA

Airtel brings you Fax and Data Service where you can take your office wherever you go.

You can send and receive data/fax documents, access the Internet, email accounts as

well as corporate databases whenever you are on the move.

GPRS / MOBILE OFFICE

Mobile Office provides you with access to e-mail and Internet any time and anywhere,

even while on the move. It is an indispensable asset for traveling executives, as it

enables you to be in touch when at airports, hotels etc. So whether you're in Mumbai or

not, you'll be never be short of Internet access. Now you can access official mail, refer to

sites for information and do everything that you would, on the Internet. This new-age

product is made possible through Airtel's GPRS (General Packet Radio Services)

technology.

GPRS Mobile Office service has the following features:

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Various language options : Select from English to Kannada (over 5 different

languages)

Content represents all major languages

Everyone-tune: one song for all callers

Special tune: personalized song for specified caller

Easy Billing

Now enjoy the luxury of viewing details of your last 3 billing cycles and the convenience of

paying your Airtel bill online! Experience complete freedom with Airtel!

Subscription Services

With Airtel's Subscription Services, you can subscribe for cool alerts at the click of a

button! What's better is that you can receive updates automatically on your Airtel phone

without requesting everyday.

Daily News Alerts

With Airtel News Alerts, be in touch with the latest happenings around the world, all the

time. Get 2 news bulletins sent to your Airtel phone, courtesy AajTak, the 24-hour news

channel from India Today Group.

Daily Astrology Alerts

Your future lies in your Airtel phone. Literally! Get daily forecasts of each sun sign from

renowned astrologer Ma Prem Usha.

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Daily Joke Alerts

Crack up with laughter with Airtel's daily joke alert. Get the funniest jokes that you can

forward to your friends to brighten up their day too.

Daily Business Alerts

For the latest buzz on the business scenario, now you never have to look very much

further than the palm of your hand. Airtel brings you the daily business news and stock

alerts, courtesy Business Today, the leading publication on business news & stories.

Daily Filmi Gossip

Want the latest khabar on Lara, Salman, Cameron and Toby? Tune into Airtel's Filmi

Gossip, with the latest buzz about your favourite Hollywood and Bollywood stars.

3. 2 Company Profile Of Vodafone

Today, in India, becomes Vodafone. Now, the pink color logo of will be replaced by

Vodafone Essars corporate red colored one.

In 2005-06, the Orange brand in Mumbai was phased out to introduce (now Vodafone).

The company also changed the colors of its logo from orange to pink last year.

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We shall uphold the dignity of the individual

We shall honor all commitments

We shall be committed to Quality, Innovation and Growth in every endeavor

We shall be responsible corporate citizens

Services

Staying connected becomes a lot easier with Vodafone. We have a wide range of

services you can access right from your Vodafone phone. From cell banking to flight

updates to call management services, get all that you want, instantly.

Dial 600 to activate

To activate these values added services on your Vodafone phone simply dial 600 and

access our Interactive Voice Response system.

SMS

Message your family and friends through Vodafone SMS Services. It's convenient and

affordable. Communicate with cell phone users in over 100 countries and anywhere in

India - by sending and receiving text messages.

Pay just Rs. 1.50 per message for sending SMS anywhere across the country.

SMS Chat

Now, you can chat on your Vodafone phone with as many people as you want. Its fun and

as simple as sending an SMS. Your identity will remain anonymous as your phone

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number is never displayed during the chat. You can have your own profile and chat

name.

You can also create your own chat rooms or chat in the different rooms that already exist

including: Teens, 20s, 30s, Office, Bollywood, Delhi.

All you have to do is type in your messages and send them to 2428. You will be charged

Rs. 2 per outgoing message. Incoming messages are free.

Vodafone Online

Get all the useful information you need directly on your Vodafone phone - with Vodafone

Online. Including cricket, finance, entertainment, weather, astrology and more.

Simply go to the Vodafone Online menu on your Vodafone phone. If you do not see

the Vodafone Online menu on your phone, send HELP to 123. We will send you the list

of keywords.

Scroll to the topic on which you need information.

Select the information and key input as requested on the screen.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

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MTNL Directoy

With this facility you can get to know the address and telephone no. of MTNL users.you

will be charged Rs.2 per outgoing message.

STD / ISD Codes

You don't need to look up your diary or a phone directory to find out STD and ISD codes.

You can find it directly through your Vodafone phone.

Ringtones & Logos

Now you can change the ringtone on your Vodafone phone according to your moods. You

can download logos as well. With the Vodafone and Yahoo! tieup you have hundreds of

tunes and logos to choose from.

For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS

sent). For every logo/picture message downloaded, you will charged Rs. 3.00 (including

the cost of SMS sent).

Flash & Blink

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Vodafone now offers you two exciting ways to send messages. You can make your

message flash directly on your recipients screen instead of the inbox. You can also

highlight the important parts of your message through blinks. So your text messages

become not only more visible, but more effective too.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Dial-in Services

Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to

check cricket scores, horoscope, up-to-the minute news and other relevant information on

services that touch your everyday life.

All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).

Here's a shortlist of services you can access

Service Number NDTV Online 123

Info Line 301

Dial-n-Deliver 306

Cricket Online 123Tarot Line 314

Cell Rashi 315

Dial-a-Pizza 303

Dial-a-Cab 335

Voice Response Service 123

There are occasions when you may not want to take a call, or your Vodafone phone

maybe busy or simply unreachable. By paying a nominal monthly access fee, you can

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now retrieve your messages at your convenience. Even if you are roaming, you can

retrieve your messages from your voice mailbox through a fixed line, anywhere on earth.

Your Vodafone voicemail can

Hold up over 17 messages at a time.

Receive a message that lasts up to 90 seconds.

Store a message for as long as you want.

You can also record your voice signature and welcome message.

Calling Line Identification

You can check your caller's telephone name and number on your phone screen

whenever you receive a call. This gives you the flexibility to either accept or reject an

incoming call. This service is also helpful in identifying your missed calls.

You can access this service by just paying Rs. 49 per month, if you are a postpaid

customer. This service is absolutely free if you are a Vodafone Prepaid customer.

Itemized Billing

As a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end

of each month. This is a detailed billing statement which helps you keep track of all your

calls. Your itemized bill includes:

Origin of the call

Destination of the call

Duration of the call

Toll charges

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Airtime and total charge

Get your itemized bill.

Via post: Pay a monthly rental of 49 only.

Via e-mail: Pay just Rs. 19 per itemized bill.

Fax & Data Services

This service enables you to constantly keep in touch with your office, colleagues and

information sources. You can send or receive faxes and transmit data using your

Vodafone phone anytime, anywhere. Whether you are operating from home,

Hotels and airport lobbies.

At speeds of up to 9600 bps within the network or while roaming. You can even access

the Internet.

All you need is a handset compatible data card (PC Card) or a GSM Software, and a data

chord cable with a PC to set up a mobile office.

You can also opt for either Vodafone Fax or Vodafone Data services independently.

Your Vodafone fax number can help you differentiate between incoming voice calls and

fax transmissions. You can also send and receive faxes anywhere on earth with your

Vodafone phone

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By opting for the Vodafone Data Services you can access e-mail, databases and the

Internet. All on your single incoming data number.

Charges to activate the Vodafone Fax and Data service, you just need to pay a one-time

activation fee of Rs 500. To access the Fax service, the fee is Rs. 250. The usage

charges are nominal at Re 1 per minute.

Call Management Services

There may be occasions when you need to conference with up to six people at a time or

talk to just two. Or you are speaking to someone and want to forward an incoming call to

another phone. With your Vodafone phone, you can do this and more. Vodafonehelps

you manage your calls effortlessly so that you stay in control of your conversations,

always.

Voice Response

Get your Vodafone phone to respond directly to your commands. Custom designed to

recognize Indian voices and accents, the Voice Response service makes your life more

convenient. You can get the latest updates on news, stocks, cricket and your horoscope.

Airtime charges will be Rs.6 per minute (1 minute pulse).

Voice Messaging

Voice Messaging has become even more affordable. You can now send voice messages

to cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per

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min* (as against Rs.4.95 per min earlier).

Voice messages within India across select networks will cost you Rs. .95 per min only.

Also, recipients of the cellular Voice Messaging service have the option of replying back

to the messages, which get returned back as return Voice Mail messages, facilitating two-

way (though not simultaneous) voice communication.

Yahoo! Messenger For SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive

Vodafone-Yahoo! tie-up, you can easily get connected through your Vodafone phone.This

unique messenger comes with a lot of exciting features. You can connect with all Yahoo!

Messenger users, send, receive and reply to instant messages, view and manage your

friend list and also manage authorization requests. All this and more just by using SMS.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Cell Banking

Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account

and transact directly on your Vodafone phone by sending text messages.

The first of its kind in India, this service enables you to conduct your banking without

having to visit the bank or making a call.

You can do Cell Banking from over 90 countries worldwide.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

Roaming

Now you can always stay connected, no matter where you are. With the Vodafone

Roaming facility, you can use your Vodafone phone in over 100 countries worldwide and

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With WAP, you can have the Internet directly in your pocket. So if you are looking for

quick and easy delivery of information and services, your Vodafone phone can show it all.

Use it to check out news, finance, shopping, entertainment, travel, entertainment and city

service information etc.

To access this service all you need is a WAP enabled handset and WAP services

activated on your Vodafone phone. This service comes to you at a nominal charge of Re.

1 per minute (1 min pulse).

Group Messaging

Party invitations, movie outings, festive greetings... whatever be the occasion, you can

send your message to all your friends at one go!

With Group Messaging from Vodafone, you can thus save yourself the bother of

painstakingly sending your message to one person at a time whether you are on

Vodafone Prepaid or Postpaid.

Vodafone4help

Vodafone4help now lets you take advantage of a lot more services than before. You can

connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are

stranded in the middle of the road, or if you you need immediate medical attention or if

you are looking for a police station close by, Vodafone4help gives you instant access to

your nearest source of help, anywhere in Delhi or the NCR.

All the help services are charged@Rs.6/min. while for police and fire help only local

airtime charge is applicable.

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OBJECTIVE & SCOPE

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Objective

The research is a cross sectional analysis between two cellular service of Delhi namely

AIRTEL and VODAFONE. This research is done to find the following objectives:

1) What is the consumer satisfaction level by the services offered from the

service provider (Airtel and Vodafone)

2) What are the expectations of the consumers from the service providers.

(Airtel and Vodafone)

Scope

The given project is to analyze the overall satisfaction of subscribers with their mobile

service provider. The scope for the research is not very big. The area of study of the

researcher was Delhi region. Marketing is innovative field. Here nothing can be assumed.

Whatever ideas we generate, we have to test them and they must be supported by

proved results. For this, marketing research is very important. Comparative study is one

such aspect that is very difficult to measure by guesswork. Anything you say about it, it

must be based on reliable research. I am going to do a ASSESSMENT AND

COMPARISON OF CUSTOMER SATISFACTION LEVEL BETWEEN AIRTEL

Vodafone.

To justify the customer satisfaction level by services from service providers I have

undertaken small survey. This survey throws light on many things like what are the

various services with which they are satisfied and dissatisfied, what are the expectations

of customers from service provider. To facilitate our purpose, I have formed a

questionnaire and asked 200 respondents (100 Airtel and 100 Vodafone users) to fill it.

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Research Methodology

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5.1. INTRODUCTION

This chapter aims to understand the research methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The techniques and

concepts used during primary research in order to arrive at findings; which are also dealt

with and lead to a logical deduction towards the analysis and results.

RESEARCH DESIGN

The researchers propose to first conduct a intensive secondary research to understand

the full impact and implication of the industry, to review and critique the industry norms

and reports, on which certain issues shall be selected, which the researchers feel remain

unanswered or liable to change , this shall be further taken up in the next stage of

exploratory research. This stage shall help the researchers to restrict and select only the

important question and issue, which inhabit growth and segmentation in the industry.

These set of questions are then proposed to be studied under a descriptive research

setting finally leading to formation of hypotheses and testing under causal research .A

research design is purely and simply the framework or plan for a study that guides the

collection and analysis of data. The survey research was used in this project, because

consumers feedback was necessary for obtaining the data.

5.2. Data Sources

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New data gathered to help solve the problem at hand. As compared to secondary data

which is previously gathered data. An example is information gathered by a

questionnaire. Qualitative or quantitative data that are newly collected in the

course of research. Consists of original information that comes from people and includes

information gathered from surveys, independent observations and test results.. Data

gathered by the researcher in the act of conducting research. This is contrasted to

secondary data which entails the use of data gathered by someone other than the

researcher information that is obtained directly from first-hand sources by means of

surveys, observation.

Primary datawas collected by the questionnaire based market survey. In this survey

100 AIRTEL and 100 VODAFONE mobile users were surveyed.

Secondary datawas obtained from journals, magazines, newspapers, books and of

course the Internet. Information that already exists somewhere, having been collected for

another purpose. Sources include magazines, various web sites, and subscription

services. Data that have already been collected and published for another research

project (other than the one at hand). There are two types of secondary data: internal and

external secondary data. Information compiled inside or outside the organisation for some

purpose other than the current investigation. Data that have already been collected for

some purpose other than the current study. Researching information which has already

been published. Market information compiled for purposes other than the current

research effort; it can be internal data, such as existing sales-tracking information, or it

can be research conducted by someone else, such as a market research company.

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Secondary source of data used consists of books and websites

5.3. Research Instrument

For doing the survey research, structured questionnaire with both open-ended

and closed-ended questions was used.

Mode of Survey

The mode of survey was personal interview with the respondents during the

filling up of the questionnaires.

Sample Size

A sample size of 200 respondents is used for the study.100 AIRTEL and 100

VODAFONE customers were contacted and interviewed.

Sample Unit

This study was basically an opinion survey of the residents of Delhi who are cell-

phone users regarding their views on the cellular service providers.

Place of Study

Delhi region.

5.4. LIMITATIONS:

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Observations of a particular case cannot be universally applied to all instances

Universally.

Data made available by interviews and existing documents may be biased.

For the sake of convenience the sample size taken is very small so as to be a true

Representative of the entire population.

Many factors like predetermined company strategy, hierarchy etc. make a companys

framework pretty different from others thus, there are many assumptions inherent

in the nature of the case itself.

Parameters taken in the questionnaire might be insufficient to represent al the issues.

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Findings & Analysis

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Findings & Analysis

A sample size of 200 respondents (100 Air Tel and 100 Vodafone Users) was used for

obtaining the information for this study.

The Break Up:

The break up of the respondents is shown as follows on the basis of Age, Sex, Education

Level & Occupation:

Age

Upto 25 Yrs. 66 33%

26-35 82 41%

36-45 40 20%

46 and above 12 6%

33%

41%

20%6% Upto 25 Yrs.

26-35

36-45

46 and above

Out of the total respondents 66(33%) are of the age of below 25 years

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Out of the total respondents 82(41%) are of the age of below 2 6-35 years

Out of the total respondents 40(20%) are of the age of below 36-45 years

Out of the total respondents 12(6%) are of the age of below 46 & above years

SEX

MALE 136 68%

FEMALE 64 32%

68%

32%

Males

Females

The breakup of the respondents on the basis of Sex is Males 136(68 %) and Females

64( 32 %).

Education Level

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Service Man 58 29%

Service Man 42 21%

Businessman 22 11%

Others 18 9%

30%

29%

21%

11%9% Student

Service Man

ProfessionalBusinessman

Others

Out of the total respondents 60(30%) are students

Out of the total respondents 58(29%) are Service Man

Out of the total respondents 42(21%) are Professionals

Out of the total respondents 22(11%) are businessman

Out of the total respondents 18(9%) belong to other catogories

Cell phone Service subscribed by users

Airtel 100

Vodafone 100

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Category of service subscribed

Overall the results show:

Prepaid: 62% subscribers

Postpaid: 38% subscribers

62%

38%Prepaid:

Postpaid:

Break up in terms of Airtel and Vodafone

Airtel

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Post paid 30%

Pre paid 70%

30%

70%

Post paid

Pre paid

70% of Airtel users prefer the prepaid segment while 30% prefer the postpaid segment.

Vodafone

70

Post paid 46%

Pre paid 54%

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54%of Vodafone users prefer the prepaid segment while46%prefer the postpaid

segment.The results clearly show that there is a larger subscriber base in the pre-paid

segment, which is in consonance with the industry figures.

71

46%

54%

Post paid

Pre paid

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Spending Per Month By Subscribers

This shows that majority of subscribers of Airtel and Vodafone subscribers

spends between Rs.500-1000 every month.

72

68%

23%

6%2% 1%

58%

31%

8%2% 1%

0%

10%

20%

30%

40%

50%

60%

70%

Spending per Month

Upto Rs.500

Rs.2001-3000

Rs3000 and above

Upto Rs.500 68% 58%

Rs.501-1000 23% 31%

Rs.1001-2000 6% 8%

Rs.2001-3000 2% 2%

Rs3000 and above 1% 1%

AirtelVodafone

Rs.501-1000

Rs.1001-2000

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73/90

Time taken for activating sim

This shows that 83% of Airtel and 76% of Vodafone subscribers got their sim activated

the same day of purchase while others had to wait for next day and some for 3 days also.

This is really a trouble for subscribers waiting for activation.

73

83%

76%

11%

20%

6%3%

0% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Airtel Vodafone

Airtel 83% 11% 6% 0%

Vodafone 76% 20% 3% 1%

Same Day Next Day 2-3 Days More than 3 days

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Satisfaction from Current Tariff

This show that only 61% of Airtel users and 53% of Vodafone users are very satisfied

with tariff charges.15% of Airtel and 18% of Vodafone users are dissatisfied with tariff

which could lead them to shift to other cell operator providing lower tariff.

74

61%

53%

13%15%

11%14% 15%

18%

0%

10%

20%

30%

40%

50%

60%

70%

Satisfaction from current Tarrif

Airtel 61% 13% 11% 15%

Vodafone 53% 15% 14% 18%

Very Satisfied Satisfied Satisfied to an Extent Dissatisfied

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Satisfaction from network quality

73% of Air Tel and 67% of Vodafone users are very satisfied with network. Only 2% of

Airtel users are dissatisfied which show that their network is best. 7% of Vodafone users

reported dissatisfaction because of poor signals or no signals in basement.

75

73%

67%

15%18%

10%8%

2%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Airtel 73% 15% 10% 2%

Vodafone 67% 18% 8% 7%

Very Satisfied Satisfied Satisfied to an Extent Dissatisfied

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Satisfaction from SMS Service

89% of Airtel and 81% of Vodafone users shown great satisfaction from SMS service.3%

of Vodafone users shown dissatisfaction because of late delivery of messages and high

charge.

76

89%

81%

8% 10%

3%6%

0%3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Airtel 89% 8% 3% 0%

Vodafone 81% 10% 6% 3%

Very Satisfied Satisfied Satisfied to an Extent Dissatisfied

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Satisfaction from Roaming facility

62% of Airtel and 58% of Vodafone users are very satisfied with roaming facility. 10% of

Airtel and 13% Vodafone users are dissatisfied with roaming because of high charges

and poor signal strength while on roaming.

77

62%

58%

18%20%

10% 9% 10%13%

0%

10%

20%

30%

40%

50%

60%

70%

Airtel 62% 18% 10% 10%

Vodafone 58% 20% 9% 13%

Very Satisfied Satisfied Satisfied to an Extent Dissatisfied

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Satisfaction from Value added Services(VAS)

Only 53% of Airtel and 48% of Vodafone users are very satisfied from VAS. 15% of Air

Tel and 14% Vodafone users are dissatisfied from VAS because they are not using these

due to high charges for these facilities.

78

53%

48%

21%24%

11%14% 15%14%

0%

10%

20%

30%

40%

50%

60%

Airtel 53% 21% 11% 15%Vodafone 48% 24% 14% 14%

Very Satisfied Satisfied Satisfied to an ExtentDissatisfied

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Satisfaction from Voice mail service

48% of Airtel and 52% of Vodafone users are very satisfied with this service. 8% of Airtel

and 5% of Vodafone users are dissatisfied from service because of high charge.

79

48%

52%

23%25%

21%18%

8%5%

0%

10%

20%

30%

40%

50%

60%

Airtel 48% 23% 21% 8%

52% 25% 18% 5%

Very Satisfied Satisfied Satisfied to an Extent Dissatisfied

Vodafone

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Satisfaction from Billing

only 23% of Airtel and 30% of Vodafone users are very satisfied with billing. 28 % of

Airtel and 18% Vodafone users are dissatisfied with billing because of inflated bills and

delay in resolving. In this case Vodafone is better in comparison to Airtel with less billing

problems.

80

23%

30%

24%

31%

25%

21%

28%

18%

0%

5%

10%

15%

20%

25%

30%

35%

Airtel 23% 24% 25% 28%

30% 31% 21% 18%

Very Satisfied Satisfied Satisfied to an Extent Dissatisfied

Vodafone

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for this is waiting time to talk to customer care and resolving time taken is very high in

Vodafone.

Users planning to shift to other cell operators

16% of Airtel users are planning to shift to other cell operator because they find call

charges expensive. While 23% of Vodafone users are planning to shift because of poor

customer care and high call charges. This shows that users have much more loyalty

towards Airtel in comparison to Vodafone.

82

16%

84%

23%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Planning to Shift to other cell operator

Yes 16% 23%

No 84% 77%

AirtelVodafone

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Users recommending their cell operator to others

83

84%

16%

77%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Recommend their cell operators to others

Yes 84% 77%

No 16% 23%

Airtel Vodafone

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84/90

84% of Airtel and 77% of Vodafone users are ready to recommend others. This shows

high satisfaction level in Airtel users as compared to Vodafone.

CONCLUSION

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Conclusion

With the steep fall in the cost of providing cellular services, and increasing deregulation

and competition, developing countries are witnessing rapid growth in cellular subscriber

base. Indian cellular industry has been witnessing a Compounded Annual Growth Rate of

about 105.2%. It is a $5 billion industry today, and the cellular subscriber base in the

country has increased to 6.4 million from a mere 28,550 in 2004. According to reports,

Indian mobile subscriber base is expected to grow to 19.48 million in the current year, i.e.;

2008. However, the penetration rate of cellular services is very poor in developing

countries. In India, the cellular density is 0.56 per 100 population compared to 77.84 in

Finland.

Economic conditions, market structure, policies regarding tariffs and interconnect

agreements, and customer characteristics are some of the significant forces affecting the

growth of cellular services. Since it takes about 3-4 years for cellular operators to attain

financial payback on their projects, estimates of market size can be useful for network

and investment planning. Qualitative narratives and descriptive

statistics of the cellular sector for many countries are available from a variety of industry

sources. However, rigorous empirically based studies of cellular market growth are much

more limited in number.

Moreover, these studies do not provide much insight into the mechanics of growth in

cellular markets. Such insights can inform policymakers about the process by which

growth occurs and help develop policies that can improve cellular penetration in

developing countries. They are also useful to service providers in planning their network

rollouts and services in the face of market competition.

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With the introduction of new providers, the incumbents face erosion of their subscriber

base. They can take preemptive measures to improve the quality of their services

offerings, reduce prices and increase the breadth of their service offerings. The new

operators have to battle against the advantages of the incumbents such as existing

subscriber base, economies of network operations, network infrastructure and their

financial strength.

There are other idiosyncrasies that may also need to be considered. In case of India for

instance, some of the entities that have received licenses to operate as the fourth

operator in metro areas, have prior cellular network provisioning experience in selected

parts of the country. They can reduce the roaming charges when the subscriber roams in

the operator's other areas. Further, the government owned third operator, was erstwhile

monopoly operator in basic and domestic long distance services. This operator has

extensive long distance network and a sound financial base that will enable them to

cross-subsidize the cellular service and reduce prices.

o This study shows that most of the population prefer the pre-paid segment.

o 62% of Airtel and 58% of Vodafone users are very satisfied with roaming facility.

o 68% of Airtel and 42% of Vodafone users are very satisfied with customer care. In

case of Vodafone 18% of users are dissatisfied with customer care while in Airtel

it is only 5%.

o 73% of AirTel and 67% of Vodafone users are very satisfied with network.

o 89% of Airtel and 81% of Vodafone users shown great satisfaction from SMS

service.

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RECOMMENDATIONS

88

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Recommendations

Sim card activation should not take more than 24 hrs

More talktime should be given on recharge coupon.

Rent should be brought down to minimum Rs.100 to attract students who forms

majority of mobile phone users.

Calling line(CLIP) charges should be abolished as this is the necessity of mobile

users to know the number of calling party.

Satisfaction levels of Vodafone customers are comparatively lower than Airtel

customers. They should introduce reward-based schemes for its customers.

Network signal should reach underground basement with voice clarity. Vodafone

need to focus on it.

Local SMS charges should brought down to less than 50 paisa as compared to

Rs.1.50. SMS is the need of students and easy way to stay in touch and have fun.

Roaming charges should be minimized.

Airtel must provide GPRS facility on prepaid as Vodafone does. This service is

now in very much demand as accessing e-mail,

internet becomes easier by GPRS. Vodafone is a winner in this.

MMS is now in demand having sound and video messages. This should be

provided at low cost.

Billing complaints should be resolved within 24 hrs. Airtel should look into this

matter as they have more billing related issues.

Customer care should not take so long to provide feedback to customers.

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Call pulse rate should be reduced to 15 seconds as most call end up less than this

time. This will save money of customers.

Customers should be given rewards or discounts for showing loyalty to service.

Rewards to customers recommending others.

Free unlimited call to 1 or 2 nos. on same network without any charges.(A tribute

to LOVEBIRDS)

Free calling within the group at low monthly rental.

Internet access on PC/LAPTOP through mobile be made cheaper.