PROJECT REPORT

ON

VALUE ADDED SERVICES

(“EAT ALL YOU CAN”)

DISHNET WIRELESS LTD.

Project Guide: SubmittedBy:

Mr. Shameen Chetan Sharma

(Head of VAS) 2008 MBE 05
 ACKNOWLEDGEMT

The successful culmination of any project is due to the multi faced help directly or
indirectly rendered by various people during the execution of the project.
I express my foremost gratitude to AIRCEL DISHNET COMPANY Ltd Jammu
branch ,and Collage of management, School of business, forproviding me an
opportunity to gather information for my project.
AT DISHNET WIRELESS LTD. AIRCEL
The people who actually facilitated this piece of study, taught me the corporate culture
and in the same breath taught me how to deal with man power, I owe the growth in my
learning curve to these people:
Company Guide – Dishnet Wireless ltd, Aircel, J&K
I would like to acknowledge my obligations to MR. SURANDER KATARIA (Head
HR- NORTH) Dishnet Wireless Ltd, Aircel bank for granting me the permission for
the project work.
Mr. MILAN (Asst Manager HR Deptt)
From the first day of my induction, he has been there throughout to facilitate my work
ensuring that my work tenure was smooth.
Mr. SHAMEEN MOHAMAD ( HEAD OF VAS )I am highly indebted to my
Project guide or Mentor Mr. SHAMEEN under whom we done the work and for his
warm and constant guidance .I express my deep gratitude and sincere thanks to him.
Last but not the list I wish my gratitude to the person who directly or indirectly help
me to complete my project.

Thanks
Chetan Sharma
 PREFACE
Master of Business Administration is a course, which combines both theory and its
applications as its contents of study in the field of management. As part and parcel of
this course, every aspirant has to undergo an ‘in – company training’ in an
organization. The purpose of this training is to expose the student of management
sciences with real life situations existing in the organization and to provide an insight
into the various functions who can visualize things what they have been taught in
classrooms. Actually, it is the life force of management. It is in practical training that
the effectiveness of management itself is realized.
I was fortunate enough to do my training in AIRCEL DISHNET LTD.

As a complementary to training, every trainee has to prepare and submit a report on the
working of the organization. This report is in continuation of that tradition. It is an
attempt to present an account of practical knowledge and observations gathered during
the training.
Chetan Sharma
 DECLARATION

I hereby declare that the project report on “VALUE ADDED SERVICE IN AIRCEL
pvt.ltd. is written and submitted by me to SHRI MATA VAISHNO DEVI
UNIVERSITY towards the fulfillment for the study of MBA. This project is based on
my knowledge and database gained from the company. The report written is original
work of me. The contents provided are true to the best of my knowledge and belief.

I further declare that, this project report is not been copied and submitted to any other
university for any other degree, or requirement course.

Chetan Sharma
2008 MBE 05
 TABLE OF CONTENTS

1. INTRODUCTION
➢ About telecom sector in India.
➢ Basic structure of Indian telecom.
➢ Telecom in J&k.
2. COMPANY PROFILE
➢ AIRCEL in Jammu and Kashmir
➢ Value added service ( VAS )
3. ABOUT THE PROJECT
➢ Targets and Tasks Assigned
4. RESEACH METHODOLOGY
➢ PROBLEM DEFINATION
➢ RESEARCH DESIGN
 Type of research design
 Method of collection data
 Scaling technique
 Sampling technique
 Field work
5. METHODOLOGY DATA ANALYSIS
6. FINDINGS
7. RECOMMENDATIONS & SUGGESTIONS
8. ANNEXURES
9. BIBLIOGRAPHY
INTRODUCTION
TELECOMMUNICATION
The word telecommunication was adapted from the French word telecommunication. It
is a compound of the Greek prefix tele-, meaning 'far off', and the Latin
communicare, meaning 'to share'. Telecommunication is the transmission of signals
over a distance for the purpose of communication. In modern times, this process almost
always involves the sending of electromagnetic waves by electronic transmitters but in
earlier years it may have involved the use of smoke signals, drums or semaphore.
Today, telecommunication is widespread and devices that assist the process, such as the
television, radio and telephone, are common in many parts of the world. There is also a
vast array of networks that connect these devices, including computer networks, public
telephone networks, radio networks and television networks. Computer communication
across the Internet, such as e-mail and instant messaging, is just one of many examples
of telecommunication.
The basic elements of a telecommunication system are:
• a transmitter that takes information and converts it to a signal for transmission
• a transmission medium over which the signal is transmitted
• a receiver that receives and converts the signal back into usable information
Often telecommunication systems are two-way and devices act as both a transmitter
and receiver or transceiver. For example, a mobile phone is a transceiver.
Telecommunication over a phone line is called point-to-point communication because
it is between one transmitter and one receiver, telecommunication through radio
broadcasts is called broadcast communication because it is between one powerful
transmitter and numerous receivers.
A collection of transmitters, receivers or transceivers that communicate with each other
is known as a network. Digital networks may consist of one or more routers that route
data to the correct user. An analogue network may consist of one or more switches that
establish a connection between two or more users. For both types of network, a
repeater may be necessary to amplify or recreate the signal when it is being transmitted
over long distances. This is to combat attenuation that can render the signal
indistinguishable from noise.
The shaping of a signal to convey information is known as modulation. Modulation is a
key concept in telecommunications and is frequently used to impose the information of
one signal on another. Modulation is used to represent a digital message as an analogue
waveform. This is known as keying and several keying techniques exist — these
include phase-shift keying, frequency-shift keying, amplitude-shift keying and
minimum-shift keying. Bluetooth, for example, uses phase-shift keying for exchanges
between devices.
 HISTORY OF GSM
The GroupSpecial Mobile (GSM ) was created in 1982 by European Conference of
postal and Telecommunications Administrations (CEPT) with the objective of
developing a standard for a mobile telephone system that could be used across Europe.
In 1989, GSM responsibility was transferred to the European Telecommunications
Standards Institute (ETSI).The phase I of the GSM specifications were published in
1990. The first GSM network was launched in 1991 by Radiolinja in Finland. By the
end of 1993, over a million subscribers were using GSM phone networks The growth
of cellular telephone systems started in the early 1980s, particularly in being operated
by 70 carriers across 48 countries.

The Global System for Mobile communications (GSM: originally from Group Special
Mobile) is the most popular standard for mobile phonesin the world. GSM service is
used by over 2 billion people across more than 212 countries and territories. The
ubiquity of the GSM standard makes international roaming very common between
mobile phone operators, enabling subscribers to use their phones in many parts of the
world.
From the point of view of the consumers, the key advantage of GSM systems has been
higher digital voice quality and low cost alternatives to making calls such as the Short
Message Service (SMS).
The advantage for network operators has been the ability to deploy equipment from
different vendors because the open standard allows easy inter-operability. Like other
cellular standards GSM allows network operators to offer roaming services which
mean subscribers can use their phones all over the world.

GSM is a cellular network, which means that mobile phones connect to it by searching
for cells in the immediate vicinity. GSM networks operate in four different frequency
ranges. Most GSM networks operate in the 900 MHz or 1800 MHz bands. Some
countries in the Americas (including the United States and Canada) use the 850 MHz
and 1900 MHz bands because the 900 and 1800 MHz frequency bands were already
allocated.

The GSM logo is used to identify compatible handsets and

equipment.
There are four different cell sizes in a GSM network
• macro
• Micro
• Pico
• Umbrella cells.

The coverage area of each cell varies according to the implementation environment.
Macro cells can be regarded as cells where the base station antenna is installed on a
mast or a building above average roof top level. Micro cells are cells whose antenna
height is under average roof top level; they are typically used in urban areas. Pico cells
are small cells whose diameter is a few dozen meters; they are mainly used indoors.
Umbrella cells are used to cover shadowed regions of smaller cells and fill in gaps in
coverage between those cells.
The network behind the GSM system seen by the customer is large and complicated in
order to provide all of the services which are required. It is divided into a number of
sections and these are each covered in separate articles.
• The Base Station Subsystem (the base stations and their controllers).
• The Network and Switching Subsystem (the part of the network most similar to
a fixed network). This is sometimes also just called the core network.
• The GPRS Core Network (the optional part which allows packet based Internet
connections).
All of the elements in the system combine to produce many GSM services such as
voice calls and SMS
]

Subscriber identity module(SIM)

One of the key features of GSM is the Subscriber Identity Module (SIM), commonly
known as a SIM card. The SIM is a detachable smart card containing the user's
subscription information and phonebook. This allows the user to retain his or her
information after switching handsets. Alternatively, the user can also change operators
while retaining the handset simply by changing the SIM. Some operators will block
this by allowing the phone to use only a single SIM, or only a SIM issued by them; this
practice is known as SIM locking, and is illegal in some countries.
In the United States, Canada, Europe and Australia, many operators lock the mobiles
they sell. This is done because the price of the mobile phone is typically subsidised
with revenue from subscriptions and operators want to try to avoid subsidising
competitor's mobiles. A subscriber can usually contact the provider to remove the lock
for a fee, utilize private services to remove the lock, or make use of ample software and
websites available on the Internet to unlock the handset themselves
Some providers will unlock the phone for free if the customer has held an account for a
certain period. Third party unlocking services exist that are often quicker and lower
cost than that of the operator. In most countries removing the lock is legal. In countries
like India, Pakistan, Indonesia, Belgium, etc., all phones are sold unlocked. However,
in Belgium, it is unlawful for operators there to offer any form of subsidy on the
phone's price. This was also the case in Finland until April 1, 2006, when selling
subsidized combinations of handsets and accounts became legal though operators have
to unlock phone free of charge after a certain period (at most 24 months).
CHANGES WITH THE CHANGING TECHNOLOGY
Technological changes in telecommunications and computers have radically changed
the business scenario. In turn, the new demands of business have spurred many
telecom-based technological innovations. In order to exploit these innovations for
competing in global markets, the business community the world over has been putting
pressure on governments to revise the policy, regulation, and structure of the telecom
sector. Several
Countries across the world have responded by restructuring the state-controlled
telecom service provider, increasing private participation, and deregulating service
provision. The emergent organizations have attempted to be more responsive to the
business needs and have evolved mechanisms to remain competitive even under
tremendous pressures.

Over the past several years, developing countries have also recognized the important
role a responsive, business-oriented, and technologically advanced telecom sector
plays in the growth of the economy. Many developing countries now see the
constraints of estate monopoly in telecom as standing in the way of a response to the
twin challenges of spurring internal growth and competing in an increasingly global
economy.

Past experience of reform across many countries suggests that the fundamental issue
that must be addressed in telecom reform is effective separation of the basic functions
of policy making, operational management, and regulation (ITU Report 1989). The
Second level of consideration is access to capital and human resources. The third level
of concern is the introduction of competition for efficiency. Competitions perhaps more
important than right ownership, if ever there was anything like it, in bringing about
efficiency.

The Indian telecom sector was wholly under government ownership until 1984, and
was characterized by underinvestment, outdated equipment, and growth well below the
potential of the market. In the mid-1980s, telecom was included by the government as
a part of the so-called .Technology Missions a set of dedicated, welfare-oriented, and
well focused programmes then implemented at national level.
The DoT and the Precursor to Reform
In one of the earliest steps towards reforms and boosting indigenization efforts, the
government set up the Centre for Development of Telematics (C-DOT) in 1984 with
the objective of initiating and managing research in the switching and transmission
segments. Subsequently, the government separated the Department of Post and
Telegraph in 1985 by setting up the Department of Post and the Department of
Telecommunications.
In 1986 two new public sector corporations. The Mahanagar Telephone Nigam Limited
(MTNL) and the Videsh Sanchar Nigam
Limited (VSNL).were set up under the Department of Telecommunications (DoT).

The MTNL, which was carved out of the Dot, took over the operation, maintenance,
and development of telecom services in Bombay and New Delhi. The VSNL was set
up to plan, operate, develop, and accelerate international telecom services in India. The
government created the corporate organizations in orderto allows decision making
autonomy and flexibility and facilitates public borrowings that would not have been
possible under a government framework. However, policy formulation, regulation, and
several key decision areas remained with the DoT.

A new organization, the Telecom Commission, was created in 1989 with a wide range
of executive, administrative, and financial powers to formulate and regulate policy and
prepare the budget for the DoT. The Telecom Commission had four full-time members’
managing technology, production, services, and finance and four part-time members
representing the Planning Commission, Department of Finance, Department of
Industry, and Department of Electronics. The creation of the MTNL, its subsequent
operations, and the relationship of the personnel employed in the MTNL to their
counterparts in the DoT raised questions about the organizational structure most suited
for this sector. Therefore, in 1991, upon government initiative, the high-powered
Athreya Committee submitted a report on the appropriate organizational structures for
this sector.
The report recommended:

➢ Placing both policy and regulatory mechanisms under the Telecom

Commission.

➢ Breaking up of the DoT into zonal corporations under the government.

➢ Setting up of a corporation, initially in the public sector, to handle the long-

distance network.

➢ Allowing value-added services (VASs) to be provided by the private sector.

➢ Indicating general liberalization in production of equipment giving

autonomy to R&D and training institutions.

➢ Subsequently, other studies for reforms had been commissioned, but in the
absence of public debate, and employee and union concerns regarding the
consequences of implementation.
➢ The government did not formally adopted any report.. Since 1997, there were
several statements in the media by key decision makers and the
Communications Minister calling for corporatization of the DoT. However,
there was very little public information or debate regarding the sequence of
decisions leading to corporatization or the form of corporate structure.
➢ Since 1995, there was increasing pressure from international organizations such
as the WTO to review the monopoly status of theVSNL and the Dot’s
monopoly in international long-distance communication respectively. The
government had undertaken to
➢ Review the monopoly status of the VSNL in 2004 and the possibility of
opening of long distance in 1999.

➢ The VSNL continued to have a monopoly over international telecom and

broadcast transmission. It had planned to enter the long-distance market but the
DoT hampered its plans. In 1999, the government created the Department of
Telecom Services (DTS), who’s Secretary was appointed from the Indian
Telecom Services (ITS) cadre, and the DoT from the erstwhile the DoT, who’s
Secretary was appointed from the Indian Administrative Services (IAS). This
was done ostensibly to separate the service provision component (DTS) from
that of policy making (DoT). In reality this was to accommodate the conflict
caused by the government’s decision to appoint a Secretary to the department
from the IAS, as DoT employees wanted the Secretary to be from the ITS.
When the DTS Secretary retired, the government appointed an IAS officer in
his place, which again led to agitation and further bifurcation of the DTS into
the Department of Telecom Operations (DTO) and DTS. The DTS was to be
 headed by an IAS officer responsible for the MTNL, VSNL,
Telecommunications Corporation of India Limited (TCIL), Indian Telephone
Industries Ltd. (ITI), and Hindustan Teleprinters Limited (HTL) as well as for
formulating the strategy for corporatization. The DTO was responsible for
managing the telecom network.

➢ The government’s view has been that a person from outside the ITS cadre
would be better able to oversee the corporatization of
➢ the DoT since in the past senior management of the erstwhile DoT, mostly from
the ITS, had resisted any kind of change
➢ .
➢ Although an outsider Secretary was ostensibly to facilitate corporatization, it is
not clear how, without the requisite mandate from the employees and especially
the senior managers, he/she would be able to lead such a major task. This is not
to say that the ITS cadre was better equipped to handle this task. What was
missing was an overall strategy and an indication of the direction of change to
inform the administrative changes. The government seemed to view
corporatization as an administrative decision rather than a process.

➢ The Athreya Committee report as well as subsequent reports on restructuring

may be viewed as the initiation of a process of
➢ examining organizational options. The reports, however, did not accord due
attention to the need for autonomy in financial and
➢ Operational decision making. Management incentives that would have allowed
these organizations to increase profitability and raise capital from markets had
been only very sketchily outlined Thus access to capital would have been a
problem.
➢ Besides the limitations, the suggested changes were superficial since most
.restructured. Organizations showed too much of a
➢ Control and rule orientation and continued to work in much the same manner as
before.

➢ Inability of top management and political executives to address the need to

make the DoT more competitive could be cited as a failure. Given the large
base of employees who had been entrenched in a typical bureaucratic mode of
functioning providing
➢ Customer orientation and a commercial approach were, and continue to be, the
most difficult tasks. The DoT had no specific training policy in this regard.
Though there were several training centers, these were not equipped to provide
management training. The restructuring was far more concerned with form than
content.

➢ Areas like identifying the mechanisms for acquiring new core

➢ Capabilities, developing appropriate incentives, and nurturing a climate in
which change could take place were lacking.
 Telecommunications Regulatory Authority of India (TRAI)

The Telecommunications
Regulatory Authority of India or
TRAI (established in 1997) is the independent regulator established by the
Government of India to regulate the telecommunications business in India.
Notwithstanding anything contained in the Indian Telegraph Act, 1885, the functions of
the Authority shall be to-
(a) Make recommendations, on a request from the licensor, on the following matters,
namely:
(i) need and timing for introduction of new service provider;
(ii) terms and conditions of license to a service provider;
(iii) revocation of license for non-compliance of terms and conditions of license:
(iv) Measures to facilitate competition and promote efficiency in the operation of
telecommunication services so as to facilitate growth in such services.
(v) Technological improvements in the services provided by the service providers.
 (vi) Type of equipment to be used by the service providers after inspection of
equipment used in the network.
(vii) measures for the development of telecommunication technology and any other
matter relatable to telecommunication industry in general;
(b) Discharge the following functions, namely:-
(i) ensure compliance of terms and conditions of license;
(ii) notwithstanding anything contained in the terms and conditions of the license
granted before the commencement of the Telecom Regulatory Authority
(Amendment) Ordinance,2000, fix the terms and conditions of inter-connectivity
between the service providers;
(iii) Ensure technical compatibility and effective inter-connection between different
service providers.
(iv) regulate arrangement amongst service providers of sharing their revenue
derived from providing telecommunication services;
(v) lay down the standards of quality of service to be provided by the service
providers and ensure the quality of service and conduct the periodical survey of
such service provided by the service providers so as to protect interest of the
consumers of telecommunication services;
(vi) lay down and ensure the time period for providing local and long distance
circuits of telecommunication between different service providers;
(vii) maintain register of interconnect agreements and of all such other matters as
may be provided in the regulations;
(viii) keep register maintained under clause (viii) open for inspection to any
member of public on payment of such fee and compliance of such other
requirement as may be provided in the regulations;
(ix) ensure effective compliance of universal service obligations:
(c) Levy fees and other charges at such rates and in respect of such services as may be
determined by regulations.
(d) Perform such other functions including such administrative and financial functions
as may be entrusted to it by the Central Government or as may be necessary to carry
out the provisions of this act.
Provided that the recommendations of the Authority specified in the clause (a) of this
sub-section shall not be binding upon the Central Government:
Provided further that the Central Government shall seek the recommendations of the
Authority in respect of matters specified in sub-clauses (i) and (ii) of clause (a) of this
sub-section in respect of new license to be issued to a service provider and the
Authority shall forward its recommendations within a period of sixty days from the
date on which that Government sought the recommendations:
Provided also that the Authority may request the Central Government to furnish such
information or documents as may be necessary for the purpose of making
recommendations under sub-clauses (i) and (ii) of clause (a) of this sub-section and
that Government shall supply such information within a period of seven days from
receipt of such request:
Provided also that the Central Government may issue a license to a service provider if
no recommendations are received from the Authority within the period of specified in
the second provision or within such period as may be mutually agreed upon between
the Central Government and the Authority.
Provided also that if the Central Government has considered that recommendation of
the Authority comes to a prima facie conclusion that such recommendation cannot be
accepted or needs modifications, it shall, refer the recommendations back to the
Authority for its reconsideration.

Milestones in Telecom Reforms

➢ 1984 Manufacturing of subscriber terminal equipment opened to private sector.
➢ 1985 Telecom was constituted into a separate department with a separate board.
➢ 1986 MTNL and VSNL created as corporations.
➢ 1988 Government introduces in-dialing scheme. PABX services only within a
building, or in adjoining buildings.
➢ 1989 Telecom Commission formed.
➢ 1991 Telecom equipment manufacturing opened to private sector. Major
international players like Alcatel, AT&T,
➢ Ericsson, Fujitsu, and Siemens entered equipment manufacturing market.
➢ 1992 VAS sector opened for private competition.
➢ 1993 Private networks allowed in industrial areas.
➢ 1994 Licenses for radio paging (27 cities) issued.
➢ May 1994 New Telecom Policy announced.
➢ September 1994 Broad guidelines for private operator entry into basic services
announced.
➢ November 1994 Licenses for cellular mobiles for four metros issued.
➢ December 1994 Tenders floated for bids in cellular mobile services in 19
circles, excluding the four metros, on a duopoly basis.
➢ January 1995 Tenders floated for second operator in basic services on a circle
basis.
➢ July 1995 Cellular tender bid opened.
➢ August 1995 Basic service tender bid opened; the bids caused lot of
controversy. A majority of bids were considered low.
➢ December 1995 LOIs issued to some operators for cellular mobile operations in
circles.
➢ January 1996 Rebidding takes place for basic services in thirteen circles. Poor
response.
➢ The Telecom Regulatory Authority of India (TRAI) formed by ordinance.
➢ October 1996 LOIs being issued for basic services.
➢ March 1997 The TRAI Act passed in Parliament.
➢ June 1998 Several VASs available through private operators. The first private
basic service becomes operational.
➢ March 1999 Announcement of National Telecom Policy.
➢ January 2000 Amendment to the TRAI Act.
➢ August 2000 Announcement of Domestic Long Distance Competition Policy.
➢ October 2000 Planned Corporatization of DoT.
BASIC STRUCTURE OF INDIAN TELECOM

Ministry of Communication & Information Technology

Licensor
Dept of Telecom Unified License Operators

Fixed Line Operators

Regulator
Telecom Regulatory National Long Distance Operators
Authority of India
CDMA
International Long Distance Operators 1800Mhz
Judiciary
Telecom Dispute Settlement
Wireless Operators
Appellate Tribunal
GSM
900 &
1800
EVOLUTION OF THE INDIAN TELECOM MARKET
1. Penetration and growth

The Indian cell phone market essentially started in 1992 with the sale of licenses,
which enabled the private sector to participate in the industry (COAI, 2006). In 1994,
cellular service licenses were granted for the major metropolitan areas. This then
expanded to 15 circles in the following year. Services were rolled out in 1995 – with
Kolkata becoming the first city to get a cellular network in August 1995. However, in
December 2000 – 5 years after launch of cellular licenses – penetration was still quite
low. In fact, there were only about 3.2 million subscribers, primarily in the major cities
and large towns.

The major driver for change was the Telecom Regulatory Authority of India
(TRAI).TRAI was instituted in 1997, and soon started building policies and
regulations to push prices downward and spur competition. By December 2004, there
were about 93mn phones in the country, of which 48mn subscribers were cellular
(TRAI, Dec. 2005). The number of cellular phone users increased to about 76mn in
December 2005 and about 89mn phones in March 2006 (Financial Express, Apr 2006)

This trend indicates a CAGR of over 30%. Jorma Ollila, Chairman and CEO of Nokia,
recently commented that “India is amongst the top 5 telecom markets in the world”

(Light reading 2006) when he visited the country to reiterate his firm’s commitment to
the market. Indeed, no other country in the world has added 4-5mn mobile phones per
month. Exhibit 1 shows the growth of the postpaid and prepaid market in India,
including prediction for 2010.

Player

The Indian wireless market has both CDMA and GSM network operators. CDMA
operators entered the picture and grew rapidly – Reliance, which owns about 70% of
the CDMA market currently with ~ 20.44 mn subscriptions, grew at over 114% year-
on year in 2002-03 – one of the most explosive phone launches ever ( TRAI Jun 2003,
Financial Express, Apr 2006). The overall CDMA subscriber base, though, is still
about 22.2% of the market – with Tata Teleservices taking up most of the remaining
CDMA share.

The GSM players account for the remaining ~78% - with a market that is less
dominated by one player. Bharti, state-owned BSNL, and Hutch control the largest
parts of this market and have been adding subscribers at an impressive pace. As of
April 2006, Bharti was the largest player by far, with 30.37 mn subscribers. BSNL had
a subscriber base of 20.44mn, followed closely by Hutch with 22% of the GSM market
and an overall share of 15.02%.

The Telecom Regulatory Authority of India overseas the evolution of this market.
Since its establishment in 1997, this agency has made many key judgments – including
statements on tariffs, quality of service, next generation networks, etc. TRAI also
releases quarterly reports on the state of the telecom industry – with special emphasis
on tariffs, interoperability between networks, and usage (TRAI).

Since Indian regulation makes it difficult for network operators to also sell phones
(due to revenue share agreements), there is a completely parallel market for users to
buy phones. In the GSM space, users go to handset providers to buy phones and then
to network operators to get network services. Most global handset manufacturers are
present in India – with Nokia leading the pack by far. In 2005, more than 31mn
handsets were sold. Of this, Nokia captured about 60% share – over 18mn phones in
one year. Motorola, which has a smaller share, is seeing growth with the introduction
of more advanced phones including its Razr platform. Samsung, LG and Sony
Ericcson all have reasonable market share as well – with LG catering almost
exclusively to the CDMA space through a tie-up with Reliance.

THE INDIAN MARKET – BASIC DEMAND TRENDS

Demand for cellular services is interesting for a variety of reasons. Before catering to
this market, service providers must consider unmet needs, price sensitivity, diversity in
consumer profiles, and the skew in urban-rural markets.

1. Unmet needs

Current Indian teledensity is 11.43 (i.e. only 11.43 phones both cellular and
fixed line exist per 100 people) While that points to a staggering ~ 125mn
phones already in the market, it also points to a large unmet demand.
Specifically, peer countries have much higher teledensity. China has a mobile
teledensity of 28.3 while in Malaysia, that number is 77. If India is to attain
China’s teledensity in 5 years – up from its current penetration of ~ 7%, this
implies an almost 4x increase in the number of phones. This would lead to
demand for about 210mn additional phones in that time.

2. Young, growing, consuming market

More than 95% of India’s population is under the age of 65.70% of the
country’s citizens are below the age of 36, and half of those are under 18.
(Bharadwaj etal, 2005; Wikipedia; Census Maps; Answers.com). Further, the
standard of living has been increasing: only 26% of the population is below the
poverty line now, compared to over 50% in the mid-70s. (Sinha, Jayant, 2005)
Thus, the young, mobile segment of the population is quite large and more
connected than any previous generation. In addition, it earns more and is more
willing to spend on convenience products than previous generations. In fact, in
some instances, consumer products like cell phones now have are a symbol of
 status. Young consumers are willing to buy new phones and are constantly
looking for good deals and the opportunity to “trade up” to better products.

3. Value sensitivity

The Indian consumer is also very price sensitive. Product managers have found
that consumers in India will not buy products unless there is a clear value
proposition – at the lowest possible price. For instance, Nokia successfully
introduced a customized version of their 1100 phone with features uniquely
tailored to India– dust-resistant body and a built-in flashlight – making it very
popular among truck drivers (Bharadwaj et al, 2006). The phone itself retails
for about $40. Indians also expect a high quality of services at the lowest
possible tariff rate. Thus, tariffs in India for voice services are among the
lowest in the world. While average American carrier charges about 30-40 cents
per minute, the corresponding rate for an Indian carrier is only about 2 cents
per minute. (Cingular, T- Mobile, TRAI Dec 2006).

4) Pre-paid rules

Indian consumers choose plans and tariff structures that minimize monthly
expenditure. Further, they also choose tariff plans that let them switch easily –
especially since they shop on price. Thus pre-paid SIM cards are the dominant
method of revenue generation. With this scheme, consumers buy a SIM card to
use in their phones with a set amount of money on it (say ~$10).

In addition, since receiving calls in India is free, very often consumers will
only receive calls on their phones. And almost every cellular company has also
introduced free incoming plans for 1-2years & lifetime free incoming plans.
Thus, revenues per user are low, with pre-paid users contributing ~$5.6 per
month. While the average post-paid user spends much more – contributing
~$19 per month – this is a small segment of the market in India. In 2006, for
example, over 95% of new phone additions were pre-paid plans. (TRAI Dec
2006) (See Exhibit 1 for potential growth of pre-paid vs. post-paid in India).
 5)Rural vs. Urban Market

While growth in India is significant, there is a large difference between urban

and rural markets. Teledensity varies wildly. For example, cities like Mumbai,
Delhi, Chennai, and Kolkata have a teledensity around 49% while Circles B
and C (which include far-less urban states) see a penetration of 2.6% (See
Exhibit 7 for market penetration in India varied by geographical areas). Aslo,
service providers pay Access Deficit charges to subsidize the (mainly
government run) players that serve the unprofitable rural markets. However, as
network operators run into an increasingly saturated market in cities, they are
slowly turning to rural areas to grow. To enter these markets, carriers will have
to make large capital investments, create low introductory pricing, and only
offer a basic level of services. Although growth in rural markets will be slower
and require a larger investment per customer, with no guarantee of the same
amount of revenue, the thirst for communication and poor landline
infrastructure makes rural India a unique opportunity for growth.

Consequently, operators are dropping prices to ensure they get their hands on
the expanding customer pie and the large untapped market means that revenues
from the voice market will drive the growth for the next few years.

6. Demographics

The expected growth in the Indian GDP, 6-7 percent annually from 2005 to
2007, is a good indicator of the increased purchasing power of the population
(Asian Development Bank – 2005). A greater percentage of the Indian
population has higher levels of disposable income with which to purchase
products and services. Along with lower connectivity costs and cheaper
handsets, the mobile market in India is seeing a huge influx of subscribers who
can now afford basic coverage.India is also experiencing changing
demographics that have contributed to the explosion in the mobile market.
Approximately 70 percent of India’s 1.1 billion population is between the ages
of 15 and 40 (U.S Census Bureau-International Database, 2003). As a result,
 telecom players are looking at a young population with increased pay scales
and more job opportunities. Furthermore, a high percentage of these Indians are
still living at home and saving their salaries. Thus, this generation is able to
spend a large percentage of their income on the purchase of entertainment and
consumer electronics, including cell phones.

7. Role of Government

The Indian government has played a significant role in setting the stage for
growth in mobile telecommunications. Through the oversight of the Telecom
Regulatory Authority of India (TRAI), the government has made many changes
to regulations and policies to remove hurdles and spark growth. First, the
Indian government introduced the Unified Licensing Regime in 2003. This
regime allows operators to offer any service through the technology of their
choice, in any area in which they currently operate. Thus, all telecom services
(including voice, data, cable TV, and radio broadcasting) can now be delivered
through a single medium and are covered by a single license. Unified licensing
shifted operator behavior and caused operators to start focusing on converged
services and networks for cost efficiency – which, in turn, allows them to offer
pricing conducive to rapid growth. In addition, the Indian government has
raised the maximum foreign direct investment (FDI) limit from 49 percent to
74 percent in Telecom Sector. The government also enacted the Access Deficit
Charge (ADC) policy, which requires that a share of call revenue be paid to the
government to assist in funding network expansion into rural areas.

As of early 2005, several regulations were imminent. First, the launch of an

“All India” license would give operators the right to provide all forms of
service throughout India with one license. This structure would initiate the next
phase of market consolidation, with the result likely being five to six main
players. The players would have greater scale which would lead to higher cost
efficiency and, ultimately, more flexibility, and allow even fixed line users to
switch to mobile services seamlessly – possibly increasing competition in the
 market. Finally, the government needed to decide how to increase spectrum
capacity, since 2G networks are nearing full capacity (“2G” stands for second
generation cellular technologies, which are circuit-based, voice technologies
deployed in the 1990s. This standard is being replaced around the world with
“3G” networks that are faster .

GROWTH OF TELECOM NETWORK (2008)

With a strong population of over 1.1 Billion, India has become one of the most
dynamic and promising Telecom markets of the world. In recent times, the country has
emerged as one of the fastest growing telecom markets in the world. It has third largest
telecom network and the second largest wireless network in the world.
 NETWORK EXPANSION
● The total number of telephones has reached 4297.25 lakh as on March 31,
2009 as compared to3004.92 lakh as on March 31, 2008.

● While 1292.33 lakh connections were added during the twelve months of 2008-09,
about 108 lakh connections were added every month during the current fiscal year.

● The tele density, as given in the following graph, has shown a sustained increase
during last few years.
It increased from 26.22% in March 2008 to 36.98% in March 2009.
 Tele density graph

Cellular Service Providers

As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125
million are GSM users and 41 million CDMA users.
BSNL, Bharti Airtel, Hutch, Idea, Aircel, Spice and MTL are the main GSM providers
in India. Reliance Communications and Tata Indicom are the main CDMA providers in
India.
Bharti Airtel
Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra
Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu,
UP and West Bengal. Airtel is the No.1 cellular service provider in India using GSM
technology. Airtel has 23% market share in India with a total subscriber base of 38
million.
Reliance Communications
Reliance has both CDMA and GSM networks and total subscriber base of 29 million or
17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata,
North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks
in other states and cities.
Bharat Sanchar Nigam Limited (BSNL)
BSNL is a state owned telecom company which has GSM presence in almost every
cities and towns. BSNL has 27 million subscribers with a market share of 16%.
Tata Indicom
Tata Indicom is a main CDMA provider in India with 16 million subscribers all over
India. Tata Indicom has presence in almost every states and cities in India
Airtel has more than 100 million subscribers and BSNL has half as much. But,
BSNL’s revenues was more than Airtel’s until now. For the first time Airtel has
surpassed BSNL to become country’s number one telecom operator in terms of
subscribers and revenues.
There is a drop of 0.4% in BSNL’s revenues when compared with the previous fiscal
year. Airtel has increased its revenues by 39.8% - a very impressive growth.
BSNL did not face the heat until now as the revenues weren’t dipping. That doesn’t
hold good any more and it has to buck up or revamp before it turns into an Air India.
BSNL doesn’t have the same kind of excuses of Air India as it operates in a lucrative
telecom market.
The other operator which has seen a drop in revenues is MTNL. This is in spite of all
the 3G spectrum and the leg-up both BSNL and MTNL got from the government.
Giving subsidies and special treatment doesn’t work after all.
Reliance saw a decent growth of 23.1% and its revenues are 22341 crores. It is 3rd in
line. The best growth in revenues was by IDEA Cellular at 50.7%.
Airtel and Reliance are the 2 India based operators to feature in the top 20 telecom
operators by subscribers.
Top 10 telecom service providers by revenues :

Operator Revenues Revenues Revenues Growth %

Rank 2006-07 2007-08 2008-09

1 Bharti Airtel 17888 26436 36962 39.8

2 BSNL 40135 35296 35167 -0.4

3 Reliance 14468 18638 22341 23.1

4 Vodafone 10565 15477 22224 43.6

5 IDEA Cellular 4413 6720 10125 50.7

6 Tata Comm 8857 8263 9963 20.6

7 TTSL 5178 5993 6739 12.4

8 MTNL 4923 4729 4487 -5.1

9 Aircel 1507 2528 3425 35.5

10 TTML 1422 1730 1323 7.8

MARKET STRUCTURE OF TELECOM

INDIA
 Jammu & Kashmir

Himachal Pradesh
Divided into 22circles
Punjab

4 metros Uttar
Haryana Pradesh

19 circles W

Market StructureFurther Rajasthan

DELHI
Uttar Pradesh E

divided into A, B and C Bihar

category based on Gujarat Madhya Pradesh

West Bengal

economicparametersand
revenuepotential Maharashtra
Orissa KOLKATA

Each circle has a licenses MUMBAI

Four operatorsper circleare Andhra Pradesh

allowed
Karnataka

Licensesare saleable METRO Circles

CHENNAI
A Circles
Tamil Nadu
B Circles
Kerala

C Circles

Telecom in J&K
 In our state developmental challenges are many and almost every sector needs a
special attention and package to grow. Since unprecedented progress in technology has
made telecom sector one of the engines of growth, we want to see this sector progress
to register increasing momentum in the growth of economy on all fronts. Every one
percent growth in tele-density is accompanied by 3% growth in Gross Domestic
Product and sometimes this growth has been reported above 5% in some surveys
conducted in developing nations. The tele-density - the number of phones per 100 of
population - in fact is the very important indicator adopted for measuring the
performance of this sector and in J&K it has risen from a mere 2.08 in 2001-2002 to
7.76 in 2005-06. We have to bear in mind that development of the telecom
infrastructure holds out a considerable promise for the development of J&K because of
the economic benefits it will bring to state..
As far as telecommunication facilities in J&K state are concerned, there are over 16000
STD booths/PCOs, 366 telephone exchanges and 9 telegraph offices (CTOs/DTOs)
regulating the services. The number of telephone connections has gone beyond 9 lakhs
including phones of mobile segment. When this is compared with the phone level of
2001-02, it is interesting to note that there has been an addition of almost 7 lakh
connections between 2001-02 and 2005-06. The mobile phones have contributed 67%
to this growth. With mobile services launched only in August 2003, J&K state has been
a late entrant into the telecom sector. Nonetheless, the teledensity of J&K at the end of
June 2006 was reported at 11, marginally short of the national average of 13.7. we
cannot ignore the fact that telecom penetration has been uneven across the urban and
rural segments. While the urban tele-density of J&K at 39.86 compares favourably
with the national average of 42.65, rural tele-density at 0.84 is much below the national
average of 1.85. However it is interesting to note that the average revenue per user
(ARPU) for J&K at Rs.440.56 is much higher than the national average of Rs.339.49.
This means that growth of telecom sector in J&K State is not likely to be hampered by
demand side constraints. Falling cost of handsets and accessories coupled with
innovative tariff plans has made initial entry cost affordable and this factor is largely
contributing to the growing demand of phone connections.
Take the case of mobile phone. This segment of phones is vital in a state like ours.
These are the primary form of telecommunication in most emerging economies as on
date. In other words, mobile phones have the capacity to revolutionize even small and
tiny businesses and the people associated with these businesses can improve their
earnings at a faster rate. Its efficient use can save time and money and provide quicker
access to information. It’s no longer just something that only the rich can afford. Now,
it’s a basic means of communication. If such type of telecom facilities is made cost
effective, it can help in fuelling rapid growth all round in the State. The main constraint
to growth of telecom in the state stems from the supply side (service providers). These
have resulted in the limitation on the expansion of services into unreached areas of the
state. Even there has been no quality improvement of existing services. The lack of
proper coordination between the three mobile service providers in the state, BSNL,
Airtel, and Aircel, is creating difficulties for subscribers as far as smooth connectivity
is concerned. Calls between services, within services, and to landline phones are
difficult to get through. It is notable that Reliance, which has a large presence in the
rest of country, has yet to start its operations in the state despite having a license to do
so now for the past two years. There is need to encourage competitive pressures
through multi-operator scenario in J&K. As per the existing TRAI guidelines operators
are obliged to provide connectivity to other operators at points of interconnect (POI) on
their respective networks. AIRTEL has reported that BSNL which owns the largest
network in J&K has not been able to comply with this obligation. There is urgent need
that authorities who matter in telecom department take cognizance of this and sort out
the impasse. Let them bear in mind that interconnectivity is vital for healthy
competition among service providers as it will improve the quality of service and cut
down the cost. High capital and operating costs of telecom services in the state are put
as major hindrances in the smooth development of the sector. The service providers
also point out mountainous terrain that hinders the telecom signal thereby limiting the
reach of each telecom tower.
COMPANY
PROFILE
 AIRCEL
Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be
the regional communications leader of choice. The acquisition of a 51% stake in PT
Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India
provides new growth opportunities for Maxis. These acquisitions give Maxis a strong
foothold in two of the world’s most attractive high-growth, low-penetration markets.
This marks the beginning of the new world of Maxis – a world beyond voice, and
beyond borders
 Maxis in INDONESIA
On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is
currently in the middle of rolling out a Java wide network to establish the company as a
national operator. Th initial launch phase encompasses 1,300 BTS, providing both 2G and
3G services. NTS expects to have up to 480 employees by launch date and to increase
significantly upon launching.
Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21,
2006. Currently, Aircel has operations in 9 of the 23-telecom circles of India - Chennai,
Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir, Himachal
Pradesh and Bihar. Aircel launched its services in Bihar and Himachal Pradesh in
December 2006 and also recently received the licenses to operate in the remaining 14-
telecom circles of India giving it the ability to become a pan-India player.

Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be the
regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo
Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new
growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of
the world’s most attractive high-growth, low-penetration markets. This marks the
beginning of the new world of Maxis – a world beyond voice, and beyond borders. MAP
Maxis in Indonesia On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon
Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the
company as a national operator. The initial launch phase encompasses 1,300 BTS,
providing both 2G and 3G services. NTS expects to have up to 480 employees by launch
date and to increase significantly upon launching. Maxis in India Maxis completed the
acquisition of a 74% stake in Aircel on March 21, 2006. Currently, Aircel has operations in
9 of the 23 telecom circles of India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam,
North East, Jammu and Kashmir, Himachal Pradesh and Bihar. Aircel launched its services
in Bihar and Himachal Pradesh in December 2006 and also recently received the licenses to
operate in the remaining 14 telecom circles of India giving it the ability to become a pan-
India player. Aircel expects to aggressively grow its subscriber base in India and is
developing a broad range of new propositions for its customers - from branding, to
increased network coverage, to innovative product and service offerings, to refreshing
customer experience. As of 31st December 2006, Aircel serves more than 4.5 million
subscribers with a network comprising of almost 4,000 BTS. Aircel continues to be the
market leader in Tamil Nadu and Chennai circle. Aircel’s network provides 2G and GPRS
services, and is EDGE capable. Aircel is also currently in the process of conducting 3G
Trials across different cities in India. In addition, Aircel is the first cellular operator in India
to launch wireless Internet services using WiMAX technology. It aims to immediately
extend its WiMax coverage to over 20 cities to serve enterprise broadband customers. Over
the next few quarters, India is expected to add new subscribers at the rate of 5 to 6 million
per month. India offers huge opportunities for Aircel given the current low mobile
penetrations levels as well as challenges in terms of its geographic spread and low ARPU
levels.
Aircel expects to aggressively grow its subscriber base in India and is developing a broad
range of new propositions for its customers - from branding, to increased network
coverage, to innovative product and service offerings, to refreshing customer experience.
As of 31st December 2006, Aircel serves more than 4.5 million subscribers with a network
comprising of almost 4,000 BTS. Aircel continues to be the market leader in Tamil Nadu
and Chennai circle.
Aircel’s network provides 2G and GPRS services, and is EDGE capable. Aircel is also
currently in the process of conducting 3G Trials across different cities in India. In addition,
Aircel is the first cellular operator in India to launch wireless Internet services using
WiMAX technology. It aims to immediately extend its WiMax coverage to over 20 cities to
serve enterprise broadband customers.

Over the next few quarters, India is expected to add new subscribers at the rate of 5 to 6
million per month. India offers huge opportunities for Aircel given the current low mobile
penetrations levels as well as challenges in terms of its geographic spread and low ARPU
levels

Aircel’s current and proposed footprint is illustrated below.

 MISSION STATEMENT

We are conditionally committed to exceeding our

customer’s expectations. we will provide network and
services that are innovative and reliable, allowing our
customers any time anywhere communications. we will
attract, develop and retain an exceptional team of people.
We are committed to enhancing the quality of real life in
the community in which we operate. Wewill meet the
financial expectation of our shareholders.

OUR GOALS AND VALUES

CUSTOMERS :our customers are our most valued assets. we will strive to
exceed their expectations at all time by providing them with superior services
that embody value, innovation, quality and care.
PEOPLE : our people are our greatest resources. we will attract, train and
retain the best.we will challenge them to develop their full potential in the
context of our company goals.
INTEGRITY : We will maintain and strive for the highest levels of personal
and professional integrity and honesty in all ours dealings. We will keep our
promises.
RESPECT : We will treat with respect & dignity all people we deal with.
EXCELLENCE : We are committed to excellence in all what we do.there will
be no place for mediocrity.
WORK : We will promote a work environment that embraces creativity,
promotes empowerment, encourages team work, innovation, prudent risk
taking, honest and open communication and respectful iconoclasm
QUALITY : the hallmark of our internal and external outputs and processes
will be quality.this will pervade every aspect of our functioning.

AIRCEL IN J&K
AIRCEL – 92.9%are targeting the unsaturated market where no other operator is
present. An Aircel official admitted that they have been targeting the interior locations
where the mobile connectivity has not been available. However, they denied that they
have not been targeting the urban market. “We are targeting the urban market, but our
focus is more on connecting the rural market,” the official said.
In Jammu the post paid services of Aircel was launched in November-05 whereas
prepaid services were launched in January-06
In Kashmir the post paid services of Aircel was launched in July-06 whereas prepaid
services were launched in January-07.
Product Offerings (keeps on changing from time to time) :
• New Subscribers: New Subscribers will need to buy a starter pack of Rs.49
and recharge with Rs.248 to avail lifetime.
• Existing Aircel Subscribers: Existing Aircel Prepaid Subscribers can recharge
with Rs.199 and get lifetime validity. However existing Aircel lifetime
subscribers will get the tariff benefit automatically.
Tariff highlights (keeps on changing from time to time) :
• Local calls – Re1/minute
 • STD Calls – Rs 2.74/minute.
Aircel gives services to its customers in 4 forms:
• Validity Recharge
• Top ups
• Value Vouchers
• Packs

The Organization chart of Jammu circle is shown below:

The various depts. and their functions in Jammu circle are as

Sales and Marketing Department
Customer Service Department
Technical/networking Department
Commercial Department
Finance Department
Revenue Assurance Department
Human Resources Department
Administration Department
Vigilance Department

Value Added Services

When a network operators offers services using:

• existing customer base

• existing infrastructure
•
They add more value to the relationship between consumer and operator.
Hence, these services are known as Value Added Services.

Broad Classification of VAS offerings:-

• Messaging – short codes, MMS, email
•
etc.
• Music – mono tones, true tones, poly tones, mp3 tones, full songs, CRBT etc.
•
• Imagery – wallpapers, animations, screensavers, videos etc.
•
• Games – Branded, Unbranded
•
• Text based – stock quotes, news etc.
• Doctor on call
• Voice station
• Caller ringtones
VALUE ADDED SERVICES PROVIDED BY AIRCEL

VAS
Jammu & Kashmir

Aircel pocket internet

Voice Station

Subscription Services

Missed call alerts

Dialer Tunes
 Live Astrology

Doctor On call

3.1 Aircel pocket internet

Non-stop downloads of your favorite stars' Wallpaper, latest Polyphonic Ringtones, MP3 tones, True
tones,Music Videos, Movie videos, Themes, Movie Themes and Mobile games only on Aircel pocket
internet.

What’s more, activating this service is free and browsing the portal is charged just @10p/10Kb.
Charges:
• SMS sent to 121 will be Free.
• Browsing charges 10paisa/10 Kb.
Tariff Plans:
Service Rate (Rs.)
Astro 5
Wall Papers 15
Polyphonic Ring tone 15
True Tones 20
Mp3 Tones 20
Animation 15
Videos 30
Themes 50
Movie Themes 30
Games 50 / 99 / 150

3.2 Voice Station

» Voice Station

Aircel 55500 service offers you a host of never before services - from music on your
mobile to tit-bits about celebrities. All you need to do is call 55500 from your Aircel
mobile and follow the simple instructions to enter a world of information and
entertainment. The service recognizes your voice and gives information based on the
command given by you.
Music Messaging and Ringtones

Prayers
Perform pooja from your Aircel mobile. Listen to an exhaustive collection of
devotional songs like Supbrapatham, Bhajans, Amman Songs, and Gayathri &
Gurbani
.
Astrology Service
You can check your horoscope for the day, by entering your birth date. Astro info is
updated every day.

News
Get the latest news updates. Information is available across Regional, State, National
and International categories.

Calls to 55500 services will be charged at Rs.6/min. Conditions Apply.

Sports
Get the latest news and information about the happening in the sports world, like live
commentary, scores, schedules etc
.
Jokes
Smile with us by listening to the jokes. We have exhaustive collection which will
make you burst in laughter for sure.
Call rates Rs. 6/min.

Subscription Services:-

Subscription
Service Send To Charges Alerts Time
Keyword
News Headline +
SUB NEWS 58000 Rs 7/week Twice a day 10:30 & 16:40
Breaking News
Cricket NEWS &
SUB CRI 58000 Rs 7/week Ball by Ball update 9:00
SCORES
Jokes Alert SUB JOKES 58000 Rs 7/week Once a Day 13:30
SUB ASTRO
Astro Pack 58000 Rs 7/week Once a Day 13:00
<SUNSIGN>
10:15 & 13:00
Stock Alert SUB STOCK 58000 Rs 7/week Thrice a Day
& 17:00
Though of the Day
SUB THO 58000 Rs 7/week Once a Day 9:30
Alerts
Mehfil-E-
SUB SHAYARI 58000 Rs 7/week Twice A day 13:00 & 14:55
Timepass/Shayari
Love Express SUB LOVE 58000 Rs 7/week Once a Day 11:15 & 14:00
Beauty Tips Alerts SUB BTIP 58000 Rs 7/week Once a Day 13:45
Health Tips Alerts SUB HTIP 58000 Rs 7/week Once a Day 17:30
Receipe Tips Alerts SUB RTIP 58000 Rs 7/week Once a Day 15:20
Fun Unlimited Alerts SUB FUN 58000 Rs 7/week Once a Day 10:00 & 14:45
Regional News Alerts SUB RNEWS 58000 Rs 7/week Once a Day 14:50
Ayurvedic Tips Alerts SUB ATIP 58000 Rs 7/week Once a Day 7:30
Amazing Facts Alerts SUB AF 58000 Rs 7/week Once a Day 12:30
SUM NUM1 TO
Numerlogy Alerts 58000 Rs 7/week Once a Day 13:45
NUM9
Guru Granth Sahib
SUB GURU 58000 Rs 7/week Once a Day 7:00
Alerts
Geeta Shloakas SUB Geeta 58000 Rs 7/week Once a Day 6:40
Holy Bible Alerts SUB BIBLE 58000 Rs 7/week Once a Day 6:40
Quran Alerts SUB QUR 58000 Rs 7/week Once a Day 8:45
Ram Charit Manas
SUB RAM 58000 Rs 7/week Once a Day 8:45
Alerts
Friendship Messages
SUB FRIENDS 58000 Rs 7/week Once a Day 14:00
Alerts
Career Guru Pack SUB CG 58000 Rs 7/week Twice a day 10:00 & 14:00
Fundoo Pack SUB FNP 58000 Rs.30/month Twice a day 11:00 & 16:00
Super Sports Pack SUB SSP 58000 Rs.30/month Twice a day 10:00 & 15:00
Word-a-Day SUB WORD 58000 Rs 7/week Once a Day 9:35
Bihar News SUB NEWSBH 58000 Rs 7/week Once a Day 11:40
News - Bengal SUB NEWSBN 58000 Rs 7/week Once a Day 11:40
News - Kerela SUB NEWSKER 58000 Rs 7/week Once a Day 11:40
News - Karnataka SUB NEWSKK 58000 Rs 7/week Once a Day 11:40
News - Maharashtra SUB NEWSMAH 58000 Rs 7/week Once a Day 11:40
News - NCR SUB NEWSNCR 58000 Rs 7/week Once a Day 11:40
News - North East SUB NEWSNE 58000 Rs 7/week Once a Day 11:40
News - Punjab SUB NEWSPUN 58000 Rs 7/week Once a Day 11:40
News - Rajasthan SUB NEWSRAJ 58000 Rs 7/week Once a Day 11:40
News - TN SUB NEWSTN 58000 Rs 7/week Once a Day 11:40
News - UP SUB NEWSUP 58000 Rs 7/week Once a Day 11:40
News - Gujarat SUB NEWSGJ 58000 Rs 7/week Once a Day 11:40
News - AP SUB NEWSAP 58000 Rs 7/week Once a Day 11:40
News - J&K SUB NEWSJK 58000 Rs 7/week Once a Day 12:40
Aduilt Jokes SUB AJ 58000 Rs 7/week Once a Day 10:00
To unsubscribe from any of the services please contact Aircel Customer Care.
SMS Charges to 58000: Rs.3/SMS
3.3 Missed Call Alerts
Want to know who called you when your mobile was switched off or out of coverage
area?

Just subscribe to the Aircel Missed Call Alerts service (MCA). There are two simple
ways of doing it.

After subscribing to the monthly service, you will receive alerts on your mobile for all
the missed calls at no extra cost.

Pay as you use option

You also have the option of not subscribing to the service. In this option you can get
the missed call alerts for the every request you send.
SMS Charges to 5899903: Rs. 3/SMS
3.4 Dialer Tunes
Aircel introduces Dialer Tunes! Get rid of boring Tring Tring and make your callers listen to latest
tunes. Dial 56565, Registration Rs.30/month, call Rs.6/min & Rs.15/song.. Song validity is for a
period of 90 days.
“Dialer tune” is a special service through which the calling party can hear a song or music instead of
the default "Tring Tring" tune.
In order to get the Dialer service activated the subscriber has to register with the Dialer Tune service
by calling 56565 and follow the instructions played by IVR. Once the user has registered for DIALER
TUNE service the calling party will hear the song instead of the default ringing tune ("Tring Tring").
Subscriber will be confirmed with an SMS message of service activation.

To change the selected song or to dedicate a special song to another user the subscriber has to call
56565 and follow the instructions which will play by IVR, While selecting the song it will play,
whether to dedicate to all or a particular number. Through this the subscriber can dedicate a specific
song for a specific subscriber..
Whenever this subscriber calls, he or she will get to hear the special song dedicated to the calling
number. Select a new song and either assigns the song for all the callers or to particular caller so that
the previous song will be replaced with the newly selected song. Subscriber will be confirmed with an
SMS message of song change.
The user can deregister from the DIALER TUNE service by calling the short code 56565 and follow
the instructions played by IVR. Select the account details or profile management and can do
deregistration of a single number or all.
Once the subscriber is unregistered the calling party will not hear the song anymore and only the
default "tring tring" will be played. The User can also unsubscribe from this service, by calling Aircel
Customer care at 9858012345 or 121 from local Aircel numbeThe user can remove the song dedicated
for a particular subscriber by calling 56565 at Rs.6/Min and follow the instructions played by IVR.
Select the account details or profile management and can do deregistration of a single number. After
removing the dedicated song the particular subscriber will hear the default song selected for all..
3.5 Live Astrology
Astrology service on short code 55315 is a voice based LIVE SERVICE, where
AIRCEL customers can call at Rs. 9/min and talk to formally trained & experienced
ASTROLOGERS.
Details of charges:
• Live Astrology service on 55315 – Rs. 9/min (60 second pulse
3.6 Doctor On call

‘Doctor-on-call' provides access to quality medical advice from the comfort of your
home/ office. Gets instant advice on medical/ health and wellness queries from a
panel of doctors specializing in various fields.

Details of charges :
Doctor on Call service on 54887 – Rs. 9/min (60 second pulse).
INTRODUCTION
RESEARCH METHODOLOGY

The research process methodology consists of six steps and these steps
are as follows:

1. Problem definition.
2. Development of an approach to the problem.
3. Research design formulation.
4. Field work or data collection.
5. Data preparation and analysis.
6. Report preparation and presentation.

PROBLEM DEFINATION
The first step in any marketing research is to define the problem. In
defining the problem, the researcher should take into account the
purpose of study, the relevant background information and the
information needed.

Statement of problem: The purpose of our study is as follows:-

 To study the attitude, preference and response of “AIRCEL” customers towards

“DIALER TUNE.”

 To study how frequently the users of dialer tune change their dialer tune

 To identify the factors which are keeping “AIRCEL” customers away from
dialer tune service.

 To study the satisfaction level of dialer tune services.

RESEARCH DESIGN

A research design is a framework for conducting the marketing

research project. It details the procedure necessary for obtaining the
required information, and its purpose is to design a study that will test
the hypothesis of interest, determine possible answers to research
questions and provide the information needed for decision making.
Formulating the research design involves the following steps:-

(a) TYPE OF RESEARCH DESIGN: Descriptive Research.

We are using the descriptive research as we know the problem and by

using this type of research we are able to get information regarding the
attitude of Aircel customers towards dialer tune.

These 6 W’s will help us to know the attitude of Aircel customers

towards dialer tune:

Q1. Who are the people that are using or not using dialer tune?

Q2.What is the satisfaction level of Aircel customers towards the dialer

tune service?
Q3 Why Aircel customers are away from dialer tune?

Q4 When and how frequently customers change dialer tune?

Q5 Where the respondents should be contacted to obtain the required
information?
Q6 In what way are we going to obtain information from the
customers?
(b) METHOD OF COLLECTING QUANTITATIVE DATA:-

The research instrument which we are using in our research paper is a

questionnaire. Our questionnaire consists of 8 close ended questions
and 5 open ended questions. This questionnaire translates the
information needed into a set of specific questions that the
respondents have to answer.

(c) SCALING TECHNIQUES:-

• METHOD OF SCALING: The scaling method which we are using
in our questionnaire is
✔ NOMINAL SCALE.
✔ RANK ORDER SCALE

(d) SAMPLING TECHNIQUES:-

1. TARGET POPULATION: All Aircel customers of J&K .

2. SAMPLING FRAME: All customers of Kathua region.

3. SAMPLING SIZE: Our sample size will consist of 500 respondents.

4. SAMPLING TECHNIQUE: We are using SIMPLE RANDOM sampling

technique.

(e) FIELD WORK:- Our field force consists of 1 MEMBER only and our
field is Kathua district.

DATA ANALYSIS

PLAN OF DATA ANALYSIS:

The main objective of our study is to analyze the factors. The course of
the test is as follows:

For this we calculated the frequency distribution of the various

responses that were given by the respondents. The response that got
the highest frequency of occurrence associated with it is considered as
the main factor.
METHODOLOGY AND ANALYSIS
PERCANTAGE OF FEMALE AND MALE USERS

SPAN OF TIME SLOT OF PEOPLE USING AIRCEL:-

q1

40

30
In our survey
Percent

20
➢ 3.6% of
respondents
10
are using
0
Aircel > 1
1.00 2.00
q1
3.00 4.00

month
➢ 23% of
respondents are using Aircel from 2-6 months
➢ 36.8% of respondents are using Aircel from 6-12 months
➢ 36.6% of respondents are using Aircel < 1 year
 NUMBER OF DIALLER TUNES USERS

➢ 78% of Aircel customers are not using dialer tune service.

➢ 22%of Aircel customers are using dialer tune service.

REASONS FOR NOT USING DIALLER TUNES

➢ 14.5% of customers are not using due to NON AWARENESS.

➢ 63.85 of customers are not using due to HIGH PRICE.
➢ 7.7% of customers are not using due to POOR QUALITY OF SERVICE.
14.4% of customers are not using due to OTHER REASONS

NUMBER OF PEOPLE CHANGING SONGS FREEQUENTLY:-

NO. Frequency Percent

1.00 85 79.4
2.00 22 20.6
 Total 107 100.0

➢ 85% customers change the songs frequently.

➢ 20.6% customers do not change their song frequently.

FREEQUENCY OF CHANGE OF SONGS BY CUSTOMERS:-

➢ 57% of customers changes songs monthly.

➢ 42 % of customers changes songs weekly.
➢ 1%of customers changes songs quarterly.

DO CUSTOMERS RECOMMEND THIS SERVICE TO OTHERS

➢ 96% customer recommend dialer tune service to others

➢ 4% customers did not recommend this service to others

RATING GIVEN BY PEOPLE TO THIS SERVICE

Frequency Percent

1.00 21 19.6
 2.00 54 50.5

3.00 22 20.6

4.00 8 7.5

5.00 2 1.9
Total 107 100.0

➢ 19.6% customer rate this service as EXCELLENT.

➢ 50.5 % customer rate this service as VERY GOOD.
➢ 20.6 % customer rate this service as FAIRLY GOOD.
➢ 7.5 % customer rate this service as AVERAGE.
➢ 1.9 % customer rate this service as POOR.

FINDINGS:-
➢ HIGH COST OF DIALER TUNE SERVICE IS THE MAIN
REASON KEEPING AWAY FROM THIS SERVICE.
➢ HIN DI SONGS ARE MOST PREFFERD DIALER TUNE .
➢ PEOPLE MOSTLY CHANGE THEIR DIALER TUNE
FREQUNTLY i.e MONTHLY OR WEEKLY.
 ➢ 90% i.e ALL MOST PEOPLE ARE STISFIED WITH THIS
DIALER TUNE SERVICE.
➢ ALL MOST ALL i.e USERS RECOMMEND THIS SERVICE
TO OTHERS

LIMITATIONS:-
No study is free from the limitations, so does ours. There are many
limitations that we encountered during the course of our study and
research process
➢ Our study is restricted to KATHUA region only.
➢ Our study is restricted to AIRCEL CUSTOMERS only if the
would have included other customers also then the wider
analysis could have been done.
➢ Some questions regarding the attitude of the customers also
depends on the mood of the respondent and at the time during
which they were interviewed

RECOMMENDATIONS & SUGGESTIONS:-

By going through all the study there are some recommendations that can make the
study more effective as well as can create a good results for AIRCEL dialer tune
service. These recommendations are as follows:-

➢ The price of dialer tune should be less so that more customers can use it.

➢ Some promotional strategies should be used in rural areas as very less

awareness of value added services in rural area.

➢ Distribution of promotion material should be regular and noted.

 ➢ Aircel should improve their visibility. During the survey period I found very
few shops and other, points where advertisement has been done.

ANNEXURE
QUESTIONNAIRE

Dear Respondent

I am conducting a survey as a part of my course curriculum for my project.

I would be grateful to you if you could kindly spare some of your precious time and

help in filling up the questionnaire below.

Thanking You

NAME: ___________ QUALIFICATION: ___________

AGE: ___________ OCCUPATION: ___________
SEX :_____________

Market search information

1. How long you have been using Airce l?

a) > 1 month b) 2-6 months c) 6-12 months d) < 1year

2. Do you use dialer tune service ?

a) Yes b) No

3. If not , then why you are not using this service ?

a) No awareness b) High price c)poor quality service d) others

If yes , answer the following question :

4. Which category of songs you prefer ?

a) Hindi b) Punjabi c) English d)devotional e) kashmiri

f) Dogri

5. Do you change the song frequently ?

a) Yes b) No

6. If yes ,then how often is the change ?

a ) Weekly b) Monthly c) Quartely

7. Do you recommend the service to others ?

a) Yes b) No

8. Rate the service on the basis of your satisfaction ?

a) Excellent b) Very good c) Fairly good d) Average
 e) Poor

9. Please give your opinion to make this service better .

a)_______________________________________________

b)__________________________________________________

c)____________________________________________________

10. Please mention the other service also which you would want on your Aircel
mobile ?
a)_______________________________________________________

b________________________________________________________

c)__________________________________________________________

Thanks you for your precious time and valuable information.

CODE SHEET:-

S. Q QUESTION Coding
NO NO. Instruction
1 Q1 SINCE HOW LONG YOU HAVE >1 Month :-1
BEEN USING AIRCEL? 2-6 Months :-2
6-12 Months :-3
>1 Month :-4

2 Q2 DO YOU USE DIALER TUNE Yes :-1;

SERVICE? No :-2
3 Q3 IF NOT, THEN WHY YOU ARE NOT No awareness :-
USING THIS SERVICE? 1
High price :-2
Poor quality
service:-3
Others :-4
4 Q4 WHICH CATEGORY OF SONG YOU Hindi :-1
PREFER? Punjabi :-2
English :-3
Devotional :-4
Kashmiri :-5
Dogri :-6

5 Q5 DO YOU CHANGE THE SONG Yes :-1

FREQUENTLY? No :-2
6 Q6 IF YES, THEN HOW OFTEN IS THE Weekly :-1
CHANGE? Monthly :-2
Quarterly :-3

7 Q7 DO YOU RECOMMEND THIS Yes :-1,

SERVICE TO OTHERS? No :-2
8 Q8 RATE THE SERVICE ON THE BASIS Excellent :-1
OF SATISFACTION? Very good :-2
Fairly good :-3
Average :-4
Poor :-5

REFERENCES:
Websites:

• http:// www.trai.gov.in
• http://en.wikipedia.org
• http://www.aircel.com
• http:// www.ibef.com
• http://www.scribd .com

Book:

• Malhotra, Naresh(2009), MARKETTING RESEARCH- AN APPLIED

ORIENTATION, Prentice Hall Of India Private Limited, New Delhi