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L. J. Institute of
Management Studies

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A COMPREHENSIVE PROJECT REPORT

SUBMITTED
TO
GUJARAT TECHNOLOGICAL UNIVERSITY
As a partial fulfillment of the curricular requirement of the MBA programme

BY:-
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MBA Semester IV (BATCH: 2009-2011)
Enrollment No.: 097290592079, 097290592072
College Code No.: 729
PROJECT GUIDE: ANITA SUNIL


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Through this acknowledgement, we express our sincere gratitude towards all those people who
have helped us in the preparation of this project, which has been a real learning experience.

We appreciate the co-operation of the various 2   who showed patience while filling
the questionnaire and gave their views on the industry and the thick of things of the industry
information.

We would like to thank our guide 2Yu


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time and suggestions and mentoring us throughout the research process. We even would like to
thank the support staff of the L.J IMS. Like the librarian, admin staff and canteen staff for
helping us in our research work.

Finally we would like to thank 


 for including such valuable concept in the curriculum
which actually added some value in our lives and made us know about the actual market
conditions.

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This is to certify that (Vipin Shukla and Ketan Chomal) (Enrollment no. 097290592072,
097290592079) is a bonafide student of L. J. Institute of Management Studies, Ahmedabad.
She/he has completed her/his Grand Project titled  u
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of the curricular requirement of the MBA Programme. Her/his work is up to our satisfaction.

(Dr. P.K Mehta) ( Anita Sunil)


Director Project Guide

Date:

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It is hereby certified that the work incorporated in the thesis submitted entitled  u
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Submitted by (VIPIN SHUKLA, KETAN CHOMAL) comprises the result of independent and
original investigation carried out me. The material which obtained (and used) from other sources
has been duly acknowledged in the thesis.

Date:

Place: Signature of the student

It is certified that the work mentioned above is carried out under my guidance.

Date:

Place: Signature of the faculty guide

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The Indian telecommunications industry is one of the fastest growing in the world. The industry
has witnessed consistent growth during the last year on the back of rollout of newer circles by
operators, successful auction of third-generation (3G) and broadband wireless access (BWA)
spectrum, network rollout in semi-rural areas and increased focus on the value added services
(VAS) market.

According to the data released by Telecom Regulatory Authority of India (TRAI), the number of
telephone subscribers in the country reached 806.13 million at the end of January 2011 from
787.28 million in December 2010, thereby registering a growth rate of 2.39 per cent. With this
the overall tele-density (telephones per 100 people) has touched 67.67. The wireless subscriber
base has increased to 771.18 million at the end of January 2011 from 752.19 million in
December 2010, registering a growth of 2.52 per cent.

Looking to the tremendous growth of the Indian telecom industry and upcoming revolutionary
tools like 3g and mnp the industry is expected to flourish further.

The objective of the study was to know the impact of these tools on the telecom industry.
Moreover consumer perception about the 3g services and mnp was is an important part of the
study.

The need of the study was to know the consumer perception about certain benefits and attributes
of 3g services and reasons of change for mnp. The information collected through this will help in
determining the factors that have an inpact in the mind of the consumers and what the service
providers need to focus in order to retain the cosumers and attract them to 3g services.

We also applied the spss tool for market research to prove the significant relationship between
various variable that had an impact on consumers regarding selection of a service provider,
porting out to another service provider or using 3g services.

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The results of research was quite interesting as majority of the subscribers were not willing to
change to other operators. reference, network quality and tariff charges are some of the reason
for the consumers to switch to the other service providers.

For 3g the consumers expect the service providers to provide better applications on internet,
downloading charges, online payment and etc. subscribers are resistant to operate the 3g services
because almost 50% of subscriber don¶t have a 3g enabled mobile handsets and those who have
finds the charges to be more than reasonable. Moreover 2g also serves the same purpose with 3g
being more faster and better than 2g.

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The Indian telecommunications industry is one of the fastest growing in the world. The industry
has witnessed consistent growth during the last year on the back of rollout of newer circles by
operators, successful auction of third-generation (3G) and broadband wireless access (BWA)
spectrum, network rollout in semi-rural areas and increased focus on the value added services
(VAS) market.

According to the data released by Telecom Regulatory Authority of India (TRAI), the number of
telephone subscribers in the country reached 806.13 million at the end of January 2011 from
787.28 million in December 2010, thereby registering a growth rate of 2.39 per cent. With this
the overall tele-density (telephones per 100 people) has touched 67.67. The wireless subscriber
base has increased to 771.18 million at the end of January 2011 from 752.19 million in
December 2010, registering a growth of 2.52 per cent.

Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added
14.69 million new subscribers in February 2011, taking the all-India GSM cellular subscriber
base to 555.06 million, according to the Cellular Operators Association of India (COAI). The
GSM subscriber base stood at 540.37 million at the end of January 2011.

The sector will witness up to US$ 55.95 billion investments and the market will cross the US$
100 billion mark in 5 years, according to consultancy firm Boston Consulting Group (BCG).

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BCG India's Partner and Director, Arvind Subramanian said the industry will continue to grow at
12-13 per cent annually.

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With new players coming in, the intensity of competition in the industry has increased, especially
over the last four years. The market share of the telecom companies reflects the fragmented
nature of the industry, with as many as 15 players. As of September 30, 2010, Bharti Airtel led
the market with 20.8 per cent share, Reliance (17.1 per cent), Vodafone (16.8 per cent), BSNL
(11.4 per cent), Tata (11.5 per cent), Idea (10.8 per cent), Aircel (6.8 per cent), with the
remaining share being held by other smaller operators, according to Telecom Regulatory
Authority of India (TRAI) database.

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Mobile value added services (VAS) include text or SMS, menu-based services, downloading of
music or ring tones, mobile TV, videos and sophisticated m-commerce applications. As per a
report, µIndia Telecom 2010¶ released by KPMG in December 2010, currently, the VAS market
is worth US$ 2.45 billion-US$ 2.67 billion, which is around 10 per cent of the total revenue of
the wireless industry. The share of VAS in wireless revenue is likely to increase to 12-13 per
cent by 2011, on the back of increased operator focus on VAS due to continuous fall in voice
tariffs, increasing penetration of feature rich handsets, availability of vernacular content and
increased user adoption of VAS applications.

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The booming domestic telecom market has been attracting huge amounts of investments which is
likely to accelerate with the entry of new players and launch of new services. According to the
Department of Industrial Policy and Promotion (DIPP), the telecommunications sector which
includes radio paging, mobile services and basic telephone services attracted foreign direct
investment (FDI) worth US$ 1.33 billion during April-January 2010-11. The cumulative flow of
FDI in the sector during April 2000 and January 2011 is US$ 10.26 billion.

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Mobile Number Portability (MNP) allows subscribers to retain their existing mobile telephone
number while moving from one service provider to another irrespective of the mobile technology
or from one cellular mobile technology to another of the same service provider, in a licensed
service area. This service has been introduced with the intent of creating a level-playing field for
all operators by reducing the barriers to entry. As part of the transition, all operators are required
to upgrade their network infrastructure so that all voice and data calls across operators are routed
through a central mainframe which is maintained and run by the MNP service provider.

In India, this service is expected to be operational by the mid of 2009. The DoT (Department of
Telecom) has issued license to two global companies to implement the feature in two zones.
Telecordia, the world¶s leading provider of MNP services has solutions deployed across none
countries including the US, Canada, Egypt, Greece and South Africa has been issued with
license for implementing MNP in north and west zone in India. Syniverse technologies, also a
major player in voice and data solutions has been issued with license for south and east zones.
The license issued in February 2009 quotes the companies to start service for metro cities by six
months and other regions within twelve months. They will provide a ³central clearing house´
model for MNP in India. In INDIA only Operator based and service based number portability is
launched and if success full would launch the other two also.

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§Y Y  The first generation period began in the late 1970s and lasted through the1980s.
These systems featured the first true mobile phone systems, known at first as "cellular
mobile radio telephone." These networks used analog voice signaling, and were little
more sophisticated than the repeater networks used by amateur radio operators. This
was used only for talking.

§Y Y The second generation phase began in the 1990s and much of this technology is
still in use. The 2G cell phone features digital voice encoding. Examples include CDMA
and GSM. Since its inception, 2G technology has steadily improved, with increased
bandwidth, packet routing, and the introduction of multimedia. This was used for
multimedia and SMS. Three primary benefits of 2G networks : (i) Phone conversations
were digitally encrypted. (ii) More efficient on the spectrum allowing for far greater
mobile phone penetration levels. (iii) Introduced data services for mobile, starting with
SMS text messages.

§Y YY: GPRS (General Packet Radio Service) Providing data rates from 56 kbit/s
up to 114 kbit/s. Used for : Wireless Application Protocol (WAP) access, Short Message
Service (SMS), Multimedia Messaging Service (MMS), email and World Wide Web
access.

§Y Y Y : EDGE (Enhanced Data rates for GSM Evolution) networks. 8PSK
encoding. Used for any packet switched application, such as an Internet, video and other
multimedia.

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3G (Third Generation) is the latest wireless technology. It is also known as UMTS (Universal
Mobile Telecommunications System), an improvement over 2G (Second Generation) providing
wireless access to the data and information to the users from anywhere and anytime. It is the
latest mobile technology and in fact it is described by Cellular (2004) as being a generic name
for the most of mobile technologies. 3G cellular phones were first launched in Japan in October
2001. This 3G phone was designed so users would be able to surf the Internet, view pictures of
the people they are talking to, watch movies and listen to music on their handsets .

International Mobile Telecommunications-2000 (IMT-2000), better known as V  or V


 
is a family of standards for wireless communications defined by the International
Telecommunication Union, which includes GSM EDGE, UMTS, and CDMA2000 as well as
DECT and WiMAX. Services include wide-area wireless voice telephone, video calls, and
wireless data, all in a mobile environment. Compared to 2G and 2.5G services, 3G allows
simultaneous use of speech and data services and higher data rates (up to 14.4 Mbit/s on the
downlink and 5.8 Mbit/s on the uplink with HSPA+). Thus, 3G networks enable network
operators to offer users a wider range of more advanced services while achieving greater network
capacity through improved spectral efficiency.

Mobile telephony allowed us to talk on the move. The internet turned raw data into helpful
services that people found easy to use. Now, these two technologies are converging to create
third generation mobile services.

In simple terms, third generation (3G) services combine high speed mobile access with Internet
Protocol (IP)-based services. But this doesn¶t just mean fast mobile connection to the world wide
web. Rather, whole new ways to communicate, access information, conduct business, learn and
be entertained - liberated from slow, cumbersome equipment and immovable points of access. It
will enhance and extend mobility in many areas of our lives.

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†Y IMPACT OF 3G

ҏThe government is looking to garner as much as $10 billion from the auctions. While this may be
small money for India (the second fastest growing emerging market in the world and also the
second largest wireless market after China) compared to 3G auctions worth $34 billion in UK
eight years back, one needs to factor in the disaster that the high prices caused in the British
market as telecom operators struggled to generate returns. If the number of bids is less than or
equal to the number of spectrum blocks in a particular circle, spectrum will be allocated to all the
bidders at the highest bid price. If the number of bids are more, then the e-auction rules will be
applicable. The government will appoint an external agency for the auctions.

ҏThe PSU operators ² MTNL and BSNL ² will get a preferential treatment. They will be
allocated one block in the circles in which they are operating. They need not participate in the
auction but will have to shell out an amount equal to the highest bid price for that area.

ҏAt the time of allocation of the spectrum blocks will be given to bidders according to their bids.
In case of a tie those having an existing operation in a circle will get a preference and in case of
another tie on that criteria, those having more subscribers in that circle will get the preference.

ҏThe government has also put a mandatory rollout plan for 3G services to dissuade hoarding of
spectrum. The licensee has to rollout services in 90 per cent of metro areas within five years and
for other circles the license holders have to cover 50 per cent of the area which would have to
include 15 per cent rural areas. There are also penalties for not meeting the rollout obligations.

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ù BSNL and MTNL will be allotted one slot of the 3G spectrum.

ù Five operators will be allotted the 3G spectrum at present and five more operators are likely
to be allotted the spectrum on a later date.

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ù Sensex up 301 pts as govt introduces 3G Norms.

ù New radio spectrum to relieve overcrowding in existing systems.

ù More bandwidth, security, and reliability.

ù Interoperability between service providers.

ù Fixed and variable data rates.

ù Always-online devices. 3G will use IP connectivity, IP is packet based (not circuit based).

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Mega inflow from foreign players (including many new firms)

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High speed internet enabled and valued added services (VAS) straddling enhanced voice, video,
data and downloading facilities on their mobile phones for the consumer.

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Exciting times for Venture capital and private equity backed telecom VAS firms.

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Like many European countries, India has also decided to follow the auction model for the
allocation of 3G spectrum.

After much debate on the reserve price for 3G spectrum, the Empowered Group of Ministers has
fixed a reserve price of Rs. 35.0 billion for pan-Indian operations. However, the actual price paid
by telecom operators could be higher especially in the Metros and Category A Circles, given the
limited number of slots to be auctioned and the attractiveness of these Circles.

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ICRA expects the funding requirements of telecom operators to increase in the short term
because of investments in 3G spectrum fees and in building 3G network and infrastructure. This
is expected to lead to greater reliance on debt and pressure on return indicators in the short term
(as commensurate returns are expected only over a longer period).

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As for any new service, 3G services would also require investment in development of
new service platforms and successful marketing. Further, ICRA expects competition to
be higher in the initial years, given that all telecom operators would strive to acquire
customers. Thus, telecom operators are expected to incur significant expenditure on
marketing of 3G services in the initial years.

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India being a price sensitive market, one of the key challenges for the successful adoption
of 3G services would be the availability of affordable 3G handsets. To ensure wider
adoption of 3G, telecom operators are expected to offer significant handset subsidies in
the initial years, which in turn would increase their cost of providing services.

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The ratio of ³data revenues to total service revenues´ for Indian telecom operators is
currently 6-7%, which is significantly lower than that in developed telecom markets (25-
30%). Following increased adoption of 3G services, telecom operators the world over
have witnessed a rise in the contribution of data revenues to their total service revenues.

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In India too, as 3G services get increasingly adopted, the contribution of data revenues to
total service revenues is expected to increase in the long term.

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Besides, providing scope for increasing data revenues, 3G would enable operators
manage their 2G spectrum more efficiently. 3G has higher voice carrying capacity and
will help alleviate spectrum crunch especially in urban areas, thereby improving the
quality of service. This is also important, as spectrum congestion remains one of the main
challenges for operators in the Metros and Tier I Cities. Moreover, migration of
subscribers from 2G to 3G would lead to more 2G subscribers being accommodated on
the bandwidth that is released.

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Given the competitive landscape of the Indian telecom industry, 3G service offerings
would provide a competitive edge to telecom operators going 3G over pure-play 2G
players. This is so because attracting and retaining higher ARPU customers is essential
for the profitability of telecom operators. 3G offerings like video telephony, video and
music streaming, and high speed internet access, besides providing new revenue streams
to telecom players, would also assist them in attracting and retaining high ARPU
customers. Moreover, with the implementation of Mobile Number Portability (MNP) in
India in the coming months, high ARPU subscribers would be more likely to switch to
operators providing 3G services.

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As the volumes build up for subscribers to 3G services, 3G handset volumes would also
increase, thereby bringing down the average selling price for a 3G handset. This in turn
would enable telecom operators gradually withdraw handset subsidies, which would have
a positive impact on the profitability of 3G operations.
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Post MNP, we expect the churn rate to increase in postpaid segment, which constitutes
major chunk of high- ARPU subscribers and a small section of premium subscribers in
prepaid segment. In a predominantly prepaid high at about 60±70 per cent annually due
to the price- sensitive nature of low ARPU prepaid subscribers. High- end subscribers are
highly averse to change their mobile number and observe low price elasticity. As a result,
we believe, this segment has witnessed minimal churn despite intense price competition
in the industry. With MNP in place, the premium segment is likely to see an increase in
the inclination to switch. Principal drivers for a switch will be access to high-end data
services, better network quality and a significant price differential. Key parameters for
wireless QoS are call success ratio, network congestion, call drop ratio, billing
complaints and resolution. The gamut of data services will expand to include high-end
value added services like video calls, high speed data access and mobile TV.

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The implementation of MNP coinciding with rollout of 3G services will provide the
critical differentiator to the operators with 3G spectrum, which are primarily incumbent
operators. The incumbents, owing to huge subscriber base in the past, had the
disadvantage of network congestion and consequent need for incremental capital
expenditure to augment network capacity in order to maintain network quality. The
launch of 3G services, however, will significantly ameliorate (for incumbents) this initial
disadvantage due to diversion of 2G

voice traffic on 3G networks. Moreover, 3G players can also place themselves uniquely
by differentiating their service offerings by including high-end services, thereby making
subscriber retention and acquisition a challenging task for other operators. In the absence
of any private operator with pan India 3G footprint, the roaming agreements between the
3G players will determine the gaps in different circles in terms of price competitiveness

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and service quality. We expect churn between the players with 3G spectrum in different
circles depending on their service proposition.

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Operators offering only 2G services will face tremendous pressure to upgrade their
network infrastructure in order to provide better quality. They will be compelled to incur
significant incremental capital expenditure to deepen their network coverage.
Additionally, players will need to market their service offerings aggressively, so as to
further retain/expand their subscriber base. Given their inability to provide high end
services, they would struggle to retain their high ARPU subscribers, many of whom
would be keen to experience 3G services.

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International experience on the MNP launch suggests that large and established service
providers record an increase in their churn rate and tend to lose subscribers to relatively
new players. New entrants, vying for a share of the growing market, could benefit from
MNP launch, provided they are able to deliver a distinct value proposition and better
QoS. MNP in India would primarily be targeted at the high-ARPU segment for which
QoS and service offerings are the critical differentiators. MNP implementation coinciding
with 3G service launch would hence temperate the impact on incumbents as they are the
ones holding the 3G spectrum in most circles. In the Indian context, we expect
differential impact on operating margins for players with and without 3G spectrum. The
leading telecom operators that have been successful in acquiring 3G spectrum account for
98 per cent of the wireless revenues. Hence, the profitability impact on the operators
capable of providing 3G services will significantly influence the overall impact on the
sector. In the subsequent section, we have estimated the impact on EBITDA margin of an
operator offering both 2G and 3G services vis-à-vis an operator offering pure play 2G
services.

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†Y The objective of study is to know the impact of 3g and mnp on the Indian telecom sector.

†Y To know the awareness level of consumers regarding 3g services and mnp.

†Y To Study the factors that affect the 3g buying behavior among consumers.

†Y To understand the desired 3g multimedia services.

†Y To list out the reasons behind a consumer changing his/her mobile service provider and
subscribing services from a new service provider.

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Published: May 20, 2010

A mix of excitement and concern surrounds India's latest auction of

spectrum licenses for third-generation (3G) services, and a soon-to-follow


broadband wireless spectrum auction. The winning bids for 3G spectrum
totaled Rs. 67,710 crore (US$15 billion, at Rs. 45 to a dollar), against the
government's original expectation of Rs. 35,000 crore (US$7.78 billion).

A new era awaits the country's 584 million mobile phone users, with a faster and more robust
Internet, and better access to data services including e-commerce, social networking and
telemedicine. Also ready are mobile device manufacturers with a slew of 3G handsets; providers
of hosting, billing and network management services with expanded offerings; and content
providers selling cell phone ring tones, wallpapers and graphics.

Amid that euphoria, industry observers worry about the "winner's curse" of successful bidders
paying too much for the licenses, which ultimately could decrease margins and dampen future
investment enthusiasm. Intense price competition is steadily eating into mobile operators'
earnings, and that could force marginal players in the 3G market to eventually succumb to a
wave of consolidation, they say. Separately, but coincidentally, operators are also smarting from
a recent move by the Telecom Regulatory Authority of India (TRAI) to collect more money from
them and restrict their market freedoms.

Although the stock market recoiled sharply following TRAI's proposals, the bidding frenzy
continued. Over 34 days of bidding that ended on May 19, mobile operators Bharti Airtel,
Vodafone Essar and Reliance Communications agreed to pay Rs. 3,317 crore (US$737 million)
and Rs. 3,247 crore (US$722 million) each for the coveted Delhi and Mumbai markets. The
government had set a base price of Rs. 320 crore (US$71 million) for each of those two markets.
Bharti, Vodafone and Reliance shared licenses for the remainder of the 22 telecom zones on
offer with six other bidders that included Idea Cellular and Tata Teleservices.

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Wharton marketing professor Raghuram Iyengar notes that the winning bidders could repeat the
disaster that followed the U.K.'s 3G spectrum auction in 2000. At that time, the U.K. raised
£22.5 billion (US$34 billion) for five 3G licenses, "but the participants paid too much and didn't
have the infrastructure to get started." However, he adds that India's 3G operators will have a
support system of compatible mobile devices and a range of applications at affordable prices,
which the British operators didn't have a decade ago. In any event, India's 3G operators will need
to contain the cost of debt they raise to finance their bids, or else it will hurt their investments in
services, he warns.

"I am not too worried about the money," says Ravi Bapna, a professor of information and
decision sciences at the University of Minnesota's Carlson School of Management, who holds a
joint appointment at the Indian School of Business in Hyderabad. He predicts that the major
operators could recover their 3G investments in about eight years, but "some of the marginal
players may have gone [beyond] their bandwidth and reach," he notes.

In fact, Bapna feels that the bid collections in the latest auction will be closer to market value
than in the earlier 2G license allocation in 2008. In that round, the government collected only Rs.
1,651 crore (US$367 million) each from eight operators, on the basis of 2001 valuations. "Prior
auctions have not been [conducted] with the same level of transparency as with this round, and
there was a lot of arbitrariness in the actual mechanism itself," he says.

For the most part, according to Bapna, the mobile services business is different from other
industries that have seen bubbles formed by irrational exuberance. "The mobile services industry
is an exception, and it is really the only infrastructure success story we have. Take an operator
like Bharti [which has 128 million mobile phone subscribers], and an average revenue per user
[ARPU] of US$15-US$20 a month or about Rs. 1,000. Even if you assume they tap into 1% of
their subscriber base in the first year, and steadily increase that by 0.5% each year in the next six
to eight years, they will actually more than break even." Estimating operating expenses at 30%
and taking into consideration investments in applications, marketing and other services, "the rest
is gravy for these guys," he adds. TRAI has allowed 3G operators to launch their services after
September 2010.

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To recover their investments, the 3G spectrum winners will have to focus on customers with high
ARPUs, or the top 100 million subscribers who want more data services, says Rajesh Jain,
founder and managing director of Netcore Solutions, a Mumbai-based provider of messaging and
mobile data services. "The voice ARPU has an upper threshold, so if the operators have to
generate higher revenues, it has to come from data and other value-added services." (Jain is on
the advisory board of India Knowledge@Wharton, which partners with Netcore for its mobile
edition.)

But to achieve that, mobile operators would need to incentivize start-ups to create 3G
applications, according to Jain. "The telecom operators are not capable of driving the innovation
themselves; they need to create an ecosystem for it." They could do that by outsourcing their
billing function to application developers and incentivize them by sharing up to 80% of the
revenues with them, he explains. With value added services, "the current ARPU of Rs. 100 will
go up to Rs. 300 or Rs. 400," he suggests, adding that voice-based services alone will not lift
ARPUs so high. Japanese mobile operator NTT DoCoMo has done precisely that to spur
development of applications, he adds.

India's overall tele-density is 53%. Bapna sees that growing to cover 60% or 70% of the
population before any talk of market saturation. Pyramid Research of Cambridge, Mass.,
forecasts India's mobile penetration rate at 80% by 2014. "It is difficult not to be excited about
mobile in India, as it seems a clear-cut growth opportunity for all industry players," Elizabeth
Bramson-Boudreau, an analyst-at-large at Pyramid, wrote in a March report on the 3G auctions.
"In fact, India's 410 million net subscription additions over the 2009-2014 period put it above all
other countries in the world, including China, in terms of subscription additions over the next
five years."

Bharti Telecom leads India's wireless phone services market with a 22% share, followed by
Reliance and Vodafone at above 17% each and Idea Cellular at 11%, according to TRAI data as
of March 2010. Nine other providers, including the public sector Mahanagar Telephone Nigam
Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL), share the rest of the market. In landline
services, BSNL and MTNL have 37 million subscribers, or 85% of the market, but they account
for a tele-density of just about 3%, according to TRAI.

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The stakes, however, are getting bigger as India's mobile operators see their ARPUs decline
steadily under severe price competition. The monthly ARPU was Rs. 144 (US$3.20) in the last
quarter of 2009, down 12.4% from the previous quarter, for the majority of the industry that uses
the so-called GSM technology (or global system for mobile communications), according to
TRAI data. The monthly ARPU fell 7% to Rs. 82 (US$1.80) in the same period for operators
using CDMA (code division multiple access) technology.

Subhendu Mohanty, Motorola India's country head for networks business, has factored in those
pressures, as he prepares to boost his company's network optimization, operations and
maintenance services for mobile operators. (Motorola India's two other business units cover
mobile devices and enterprise/mobility services.) He agrees the 3G bids "have obviously gone
beyond anybody's estimation" and that they will "put pressure on operators in a low-ARPU
country." All the same, he predicts operators will not face big challenges in rolling out 3G
networks, adding that both applications and devices for them are available at affordable prices.

Mohanty is now focusing on the market emerging beyond 3G in broadband wireless services
(WiMax, in industry parlance) and 4G networks. In March, TRAI produced discussion papers on
auctioning licenses for 4G services, which would allow users to watch TV broadcasts and play
online games at 10 times their 3G speeds. "For WiMax, the ecosystems have been built and
devices are available at affordable prices," Mohanty says. "It is going to be fairly easy for
operators to introduce WiMax." TRAI set the WiMax auction among 11 bidders to begin two
days after the end of the 3G round.

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"The last five years have been transformational for Indian telecom industry, the next few

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years look even more exciting. One of the key new frontiers is3G technology," said the
annual report tabled by Finance Minister Pranab Mukherjee in the Lok Sabha Friday.

"The auction of 3G and BWA spectrum has been successfully conducted. This will
encourage further expansion of wireless services," it added.

Considering the growth of wireless telecom, the survey also said there are excellent
opportunities for domestic and foreign investors in the manufacturing sector as well.

At present, most wireless core equipment is imported and there is great potential to
manufacture these items in the country.

The production of telecom equipments in value terms increased from Rs.48,800 crore
during 2008-09 to Rs.51,000 crore during 2009-10.

The worth of telecom equipment, including customer premises equipment produced


during 2010-11, is expected to be about Rs.53, 500 crore.

Exports of telecom equipment have also increased from Rs.11,000 crore in 2008-09 to
Rs.13,500 crore during 2009-10 and are expected to increase to Rs.14,000 crore in 2010-
11.

The survey also said there are still about 62,443 uncovered villages which would also be
provided with village public telephone facility with subsidy support from universal
service obligation fund.

The survey stated that the sector has not only led to rapid growth but also helped a great
deal towards maximization of consumer benefits as tariff have been falling across the
board.

The average tariff has come down from almost Rs.17 per minute in 1999 to about Rs.3
per minute in 2004 and, by March 2010, this became as low as 57 paise per minute while
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today it has reached a level of 30 paisa per minute.

The total telephone subscribers base rose to 764.77 million at the end of November 2010
as against 76.54 million in 2004.

While the wireless telephone connections contributed to growth as their numbers rose
from 35.62 million in March 2004 to 729.58 million at the end of November 2010. The
wireline has shown a decline from 40.92 million in 2004 to 35.19 million in November
2010.


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NEW DELHI: Telecom consumers are eagerly awaiting the nationwide launch of mobile number
portability (MNP) on January 20. The facility allows consumers to retain their mobile numbers
while switching operators. It gives rise to genuine competition, leading to an improvement in the
quality of service. But the grass doesn't look much greener for consumers on the other side of
MNP.

This is because the impact of MNP in terms of consumer adoption has to be evaluated in an
environment of a delayed launch by as many as three years in a well-penetrated market with
many consumers already using multiple SIMs. In addition, the postpaid segment, which accounts
for high value customers, is just 4% against a 96% prepaid segment where number retention is
not a priority. Unsurprisingly, most operators expect the MNP impact to be negligible, indicating
that they will not have to work harder on their service delivery to retain or attract customers.

Telecom consulting firm Analysys Mason's data suggests a reasonably high subscriber churn
after the launch of MNP of as much as 17% in the prepaid and 19% in the postpaid segment. In

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the high ARPU (average revenue per user) segment, this level rises to 20%, climbing to 22% in
the enterprise market and 18% in the business category.

Says Kunal Bajaj, director, Analysys Mason, "The key factors which decide the level of impact
of MNP include time and cost of porting of numbers between operators, porting incentives
offered by competitors and the subscription contract period." For example, in Finland, where
MNP was introduced in July 2003, annual churn for Telia Sonera and Elisa increased to 30% but
later reduced to 10% once operators introduced a minimum contract period. "The high churn in
Finland, which continues till today, was fuelled by a maximum porting time of 5 days at launch
and porting fees being covered by the recipient operator," says Bajaj.
DoT secretary R Chandrashekhar says it is difficult to predict the level of porting activity.
"Global experience shows negligible activity, but India is a unique country so it is not unlikely
that we could see a different pattern emerge here," he told TOI. Some experts suggest that India's
top 3 incumbent operators are better equipped to gain from the MNP launch. An Airtel
spokesperson said, "With MNP, customers will now be able to benefit from the strength of the
Airtel network. We see MNP as a great opportunity."
However, an Idea spokesperson discounted any major gains to any operator. "We don't expect
much of a churn-1% at best. The relevance of MNP is very weak as double SIMs are already the
norm and consumers face roughly the same risks across operators, especially in metros.
However, I do expect a severe exodus from CDMA to GSM," he said. Agrees Rajiv Bawa, EVP,
corporate affairs, Uninor-a new GSM entrant. "Global studies confirm that where multiple
prepaid SIM prevalence is high, MNP has very little effect. New operators in prepaid segments
already battle a high churn situation. The challenge is to get chosen as a second or third SIM and
later move up to primary SIM status," he admits.

If operators are proved right and the level of subscriber churn eventually equalizes across
operators at a negligible level, consumers can hardly expect greener pastures post January 20.

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TRAI, Indian Telecom Regulator today announced official MNP statistics and reported that more
than 38 lakhs customers opted for Mobile Number Portability (MNP) which was introduced in
India from 20th Jan 2011. By the end of February 2011 about 38.33 lakh mobile users of various
service providers submitted their requests for porting their mobile number. Out of these requests
the maximum request generated from Gujarat where 3.65 lakhs porting requests received,
and around 3.20 lakh requests are from Haryana, the first state where MNP was implemented on
25th Nov last year. The MNP requests in various circles are given below:

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Andhra
Pradesh 229,034 6%

Assam 8,308 0%

Bihar 83,030 2%

Delhi 173437 5%

Gujarat 364849 10%

Haryana 319850 8%

Himachal
Pradesh 20242 1%

Jammu &
Kashmir 1291 0%

Karnataka 318,092 8%

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Kerala 123,812 3%

Kolkata 96,382 3%

Madhya
Pradesh 235,039 6%

Maharashtra 262110 7%

Mumbai 136067 4%

North East 1,863 0%

Orissa 56,989 1%

Punjab 194167 5%

Rajasthan 313725 8%

Tamil Nadu 276,950 7%

Uttar
pradesh ±
East 177368 5%

Uttar
pradesh ±
West 227752 6%

West
Bengal 212,681 6%

Total 3833038

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of rejections and complaints, TRAI is in the process of verifying the correctness of the port
rejections done by the service providers on sample basis.
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Nielesn report has brought some bang-up for high spenders on mobile. Especially, postpaid users
were found to be more overwhelmed by the MNP news that will help them swith networks
without their number being changed. Nielsen on mobile consumer Insights indiacates that
business subscribers mostly from the postpaid category are more likely to shift their service
providers¶ gears.YY

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Over 12,500 mobile subscribers were reviewed across 50 centers in India. The Nielsen report
also added that prepaid, low and medium spenders are not motivated to switch. The Nielsen
company India Executive Shankari Panchapakesan said, ³Consumer and the market will decide
who the predominant player will be, with the significant developments in the industry of Mobile
Number Portability. As the market grows and hyper-competition takes effect, retention of the
right type of customers will become critical.´ He also added saying that there¶s a powerful
opportunity for operators to drive in-bound porting of high-value subscribers. But this provided
they have a good understanding who is more likely to switch.

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planned. Based on cost benefit and risk involved, the types of research design are chosen which
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Information also was collected from the people working in telecom industry for a long
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and opinions about the impact of 3g and MNP on the Indian telecom sector.

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Many data regarding the research was also collected from the articles in the newspapers
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The population for the present study is defined as ³ all the people using a mobile phone in
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The leader in terms of subscription of service provider is Vodafone with 31 % with airtel,
idea reliance to follow with 22, 17 and 7 % respectively.

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The trend shows that nearly 81% of the population is using a mobile phone for a period of more
than 2 years. This shows that the population is aware of the mobile industry and issues and
opportunities associated with it.

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It is not surprising to see that 87% of the population is aware of the 3g services. This majorly of
the heavy advertisement and general awareness of the population regarding the telecom industry.
Reason for non awareness is the complexity of the technology in terms of understanding for
laymen.

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Despite of the 2g domination till now nearly 56% of the population have 3g enabled mobile
handset. This shows the awareness of the population and fast changing preference of the
consumers.

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As we can see from the graph nearly 71% of the population don¶t have a plan to buy a new 3g
enabled handset mobile, this because of the fact that 56% of the population already have 3g
supported mobile handsets and moreover they await more lucrative offers in nearby future to buy
a new handset.

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Value Added Services 18
Call Quality 33
Tariff Charges 29.5
My Handset 19.5

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33% of the total population rate call quality as the most desired feature that will influence them
to buy 3g services. Followed by tariff charges, my handset and value added services with 29, 20
and 18%.
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Online Games 8.5
Web Browsing 48
Location Information Services 12
Ticket booking 8
Downloading 16
Watch online 1.5
Online Payments 1.5
Mobile TV 3
Others 1.5

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48% of the population will like to use the web browsing facility in 3g services. Other popular
multimedia services in 3g are downloading and location search and online games. This because
of the fast internet connection in 3g as compared to 2g.

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49% of the total population thinks Vodafone could be the best 3g service provider. This because
of many factors like high capital investment power, multinational, strong customer base, strong
technology backup and etc.

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Nearly 80% of the populations don¶t want to change to there service provider. Reason being is
that major amount of population is already using top service provider services of Vodafone,
airtel, idea, reliance and etc. Moreover loyalty factor also plays a vital role in perception.

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In case if the population wants to port out to other service provider the main reason behind
would be to avail better services at low costs. New technology arrivals like that of android
system. And others include change, fast internet connection, more applications and etc.

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According to the graph nearly 45% of the population would like to port out to Vodafone. The
reason behind is the success of delivery of the message. Success of the zoo zoos. And popular
service provider in Ahmadabad. Airtel is the nearest competitor with 30 % of the port out
population. Airtel being the premium brand of service provider in our country gets the benefit of
its core competency and brand awareness.

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SMS 32
MMS 2.5
Internet 29
Games 12
Wall paper 8
Downloading 12.5
Other 4

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SMS counts for highest used services after calling for service providers. Internet browsing is
second and downloading being the third. Service providers therefore should focus on good new
schemes regarding SMS, internet and downloading to retain their customers.

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Prior Experience 31.5
Network 50
Clear voice 11.5
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Price Promise 29.5
Avaibility 13
Other 10

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24% of the population is willing to switch to other networks because of problems with network
coverage, execellent services by other providers, prior experience and availability. Therefore the

service providers should focus on these factors to service the competition.

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As there is a strong significance between the different occupation and the use of service
providers we select alternate hypothesis and reject the null hypothesis.

This proves the fact that with the change in different occupation there is a significant change in
use of service provider. Vodafone is more famous amongst students and businessmen and airtel
and idea is favorite amongst service class people.

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Count

awareof3g

yes No Total

occupation student 114 15 129

service 40 3 43

business 20 8 28
Total 174 26 200

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Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.597a 2 .022

Likelihood Ratio 6.554 2 .038


N of Valid Cases 200

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in the occupation of the people. therefore we accept alternate hypothesis and reject null
hypothesis.

The percent change of awareness in student and service class people is very high as compared to
that of business class and housewifes.

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Rank value added services

1.00 2.00 3.00 4.00 Total

Occupation Student 24 33 32 40 129

Service 3 9 25 6 43

Business 9 5 9 5 28
Total 36 47 66 51 200

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Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 22.068a 6 .001


Likelihood Ratio 21.530 6 .001
N of Valid Cases 200

0 cells (.0%) have expected count less than 5. The minimum expected count is
5.04.

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importance of value added services. Therefore we accept alternate hypothesis and reject
the null hypothesis.
This proves the fact that value added services plays very important role in different
occupations in perception of good service provider

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y
Y
# Y
 !Y! Y ! Y Y! Y  Y! 2 Y YY  " Y ! Y Y! Y 2 Y"Y2 ""Y
!2 Y
# Y
 !Y! Y ! Y Y! Y  Y! 2 Y YY  " Y ! Y Y! Y 2 Y"Y2 ""Y
!2 Y


2 ""Y !2  Y
2Y
Y

Tariffcharges

1.00 2.00 3.00 4.00 Total

Occupation Student 32 30 38 29 129

Service 23 6 6 8 43

Business 4 6 9 9 28

Y !Y Y !Y Y Y

 Y
Y

Asymp. Sig. (2-


Value Df sided)

Pearson Chi-Square 17.590a 6 .007


Likelihood Ratio 17.065 6 .009
N of Valid Cases 200

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

2Y
Y

Tariffcharges

1.00 2.00 3.00 4.00 Total

Occupation Student 32 30 38 29 129

Service 23 6 6 8 43

Business 4 6 9 9 28

0 cells (.0%) have expected count less than 5. The minimum


expected count is 5.88.

 22   Y
Here we see a strong significance between change In occupation and
change in importance of tariff charges. Therefore we accept alternate
hypothesis and reject null hypothesis.
This proves a fact that tariff charges should be adjusted according to the
need and convenience of different class of people as it is an important
variable in consumers decision regarding changing service provider.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

2Y
Y

Tariffcharges

1.00 2.00 3.00 4.00 Total

Occupation Student 32 30 38 29 129

Service 23 6 6 8 43

Business 4 6 9 9 28

Y
# Y
Y  " Y  Y"Y2 " 2  YY! Y   Y"Y 2
Y2
 2Y
Y

#Y Y

 " Y  Y"Y2 " 2  YYY! Y   Y"Y 2


Y2
 2Y

2
Y2
 2Y Y2 " 2  Y

2Y
Y

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Reference

yes no Total

Serviceprovider Vodafone 15 47 62

Airtel 4 40 44

Docomo 5 8 13

Idea 6 29 35

Reliance 4 9 13

Bsnl 7 6 13

Aircel 0 6 6

Uninor 3 5 8

Others 3 3 6
Total 47 153 200

Y
! 2 Y


Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 19.604a 8 .012


Likelihood Ratio 20.393 8 .009
N of Valid Cases 200

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

2Y
Y

Reference

yes no Total

Serviceprovider Vodafone 15 47 62

Airtel 4 40 44

Docomo 5 8 13

Idea 6 29 35

Reliance 4 9 13

Bsnl 7 6 13

Aircel 0 6 6

Uninor 3 5 8

Others 3 3 6
8 cells (44.4%) have expected count less than 5. The minimum expected count is 1.41.
 22   Y
Here we see that there is a stronge significance between the service provider and reference.
Therefore we select alternate hypothesis and reject the null hypothesis
This proves the fact that to choose a service provider the significance of reference plays an
important role.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y
# Y

Y  " Y  Y"Y2 2Y  2  YY! Y   Y"Y 2


Y2
 2Y

# Y

 " Y  Y"Y2 2Y  2  YY! Y   Y"Y 2


Y2
 2Y

Y
Y
2
Y2
 2Y(Y2 2Y  2  Y

2
Count

prior_experiance

Yes No Total

serviceprovider vodafone 28 34 62

airtel 14 30 44

docomo 2 11 13

idea 3 32 35

reliance 5 8 13

bsnl 2 11 13

aircel 3 3 6

uninor 3 5 8

others 3 3 6
Total 63 137 200

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

! 2 Y


Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 19.350a 8 .013


Likelihood Ratio 21.461 8 .006
N of Valid Cases 200

8 cells (44.4%) have expected count less than 5. The minimum expected count is 1.89.

Y
 22   Y
Here we see that there is a strong significance between service provider and prior experience.
Therefore we select alternate hypothesis and reject null hypothesis.
With this it can be proven that while selecting a service provider factor of prior experience also
plays a vital role.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y
# Y
Y  " Y  Y"Y2 Y2  YY   Y"Y   Y"Y 2
Y2
 2Y
# Y
 " Y  Y"Y2 Y2  YY   Y"Y 2
Y2
 2

2
Y2
 2 Y2 Y2 

2Y
Y

price_promise

yes No Total

serviceprovider vodafone 15 47 62

airtel 10 34 44

docomo 10 3 13

idea 11 24 35

reliance 2 11 13

bsnl 3 10 13

aircel 0 6 6

uninor 5 3 8

others 3 3 6
Total 59 141 200

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y
Y
Y
Y
Y
! 2 Y


Asymp. Sig. (2-


Value df sided)

Pearson Chi-Square 25.345a 8 .001


Likelihood Ratio 25.124 8 .001
N of Valid Cases 200

a. 8 cells (44.4%) have expected count less than 5. The


minimum expected count is 1.77.

 22   Y
Here we see that there is a strong significance between service provider and price promise and
therefore we select alternate hypothesis and reject null hypothesis.
With this we can prove that price promised by the service providers also is very vital for the
consumers while choosing one.
Y
Y

Y
#Y Y  " Y  YY"Y ! Y Y !YY2 ""Y !2 Y !Y! Y  Y"Y
2 YYY! 2YY 2
Y2
 2Y

# Y  Y"Y !YY2 ""Y !2 Y !Y! Y  Y"Y2 YYY! 2Y


 2
Y2
 2Y

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

 2
Y2
 2Y(Y2 Y"2Y ! Y
2Y Y
Y
reasonforchange

new change
technology change teriff network others Total

serviceprovider vodafone 20 28 0 14 62

airtel 23 13 3 5 44

docomo 0 2 5 6 13

idea 11 9 5 10 35

reliance 0 6 2 5 13

bsnl 0 3 5 5 13

aircel 0 6 0 0 6

uninor 0 5 0 3 8

others 6 0 0 0 6
Total 60 72 20 48 200

Y
2
Y2
 2Y(Y2 Y"2Y !

Asymp. Sig.
Value df (2-sided)

Pearson Chi-Square 91.568a 24 .000

Likelihood Ratio 104.303 24 .000

N of Valid Cases 200

26 cells (72.2%) have expected count less than 5. The


minimum expected count is .60.
Interpretation:-

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Here we can see a very strong significane of service provider and reason of changes like new
technology and tariff charges. Therefore we select alternate hypothesis and reject null
hypothesis.

This proves the fact that people will prefer to use 3g service of service provider who will provide
better technology and less tariff charges.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

YuY   Y

Y
UY The cost of upgrading base stations and cellular infrastructure to 3G is very high.

UY Requires different handsets and there is the issue of handset availability.

UY Base stations need to be closer to each other (more cost).

UY Tremendous spectrum-license costs, network deployment costs, handset subsidies to


subscribers, etc.

UY High power requirements.

UY High spectrum licensing fees for the 3G services

UY Huge capital required to build infrastructure for 3G services.

UY Health impact of electromagnetic waves.

UY Prices are very high for 3G mobile services.

UY Will 2G users switch to 3G services.

UY Takes time to catch up as the service is new

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

†Y   Y2  YY2 Y2  2 ! Y

UY Almost 87% of the population is aware of the 3g services, but only 29 % of them wants
to shift to a 3g enabled mobile handset and 3g services. Reason behind this is that 3g also
serves the same purpose as 2g. mere better speed, call quality and more applications are
not enough to change the perception of the consumers. Moreover the population thinks
that it¶s a new concept in the market and will take some time to be a hit in the market.

UY Lucrative attributes that have an impact in the mind of consumers regarding 3g services is
better voice and video quality, High speed internet, Fast data transfer, Better applications,
value added services and many more. It is because of these qualities that the population is
swinging towards the 3g concept.

UY Another interesting factor to be noticed is that majority of population which is aware of


the 3g services is using the mobile phone for more than 2 years. It is the acquaintance of
the consumers with the technology that has made it possible to spread the benefits of the
3g services.

UY Both the service providers and the mobile manufacturing companies need to come to a
consensus regarding 3g enabled mobile handsets and there prices. Almost 50% of the
population is having a 3g enabled mobile handset in ahmedabad city. Remaining 50% can
also be targeted with new and better promotional offers and activities.

 Y Y

UY Whooping 80% of the total mobile subscriber don¶t want to change there operators or
want to switch. Reason being is that they already are a user of top service operators and
loyalty factor plays a very important role.

UY Those consumers who want to port out to other service providers sees tariff rates as the
major factor for switching over, and new technology and other factors are some other
reason for the switch.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

UY Almost 45 % of the consumers who want to port out wishes to port to Vodafone and 30%
wants to port out to airtel. The reason behind this is that these are the top two service
providers in the country and the consumer perception about there services and there
positive word of mouth is very strong. Vodafone being the no.1 service provider in
Gujarat and airtel being no.1 in India.

UY Apart from calling, consumers are generally using other value added services like sms,
internet browising, and downloading. Service providers providing excellent services in
these areas and at reasonable rates have an advantage over others in terms of switching
over.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y 
 Y

YY

pY The 3g service being a new concept in the market and with Indian population being rigid
in accepting new things, the service providers need to advertise more and spread the
awareness regarding the services.

pY Trail offers regarding 3g services should be given by the service providers in order to
attract the customers.

pY The service providers should not charge more for the 3g services initially. Though the
cost to acquire the 3g spectrum is more and the infrastructural changes costs high, the
service providers should spread the cost over a period of time. The reason being is that
once the consumers are aware of the benefits of the services can afford to pay more.

pY 3g services as are the drivers of the growth to telecom sector and the nation should be
backed by the government and they should co-operate with the private players regarding
the taxes and duties and should not be biased with the government companies.

pY Service providers in order to retain the consumers should use their core competencies and
their strengths. For e.g. Vodafone should capitalize on their strong consumer base. Airtel
should capitalize on their corporate clients and etc.

pY Service providers should also provide lucrative offers to current subscribers to retain
therm.
á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

pY Service providers should try to capitalize on other segments like the value added services,
call quality and better network coverage.

 
 Y

1. Subscribers would likely to have efficient services at cheapest rate.

2. Can retain one number lifetime while choosing competitive plans from other operators.

3. CDMA users can switch to GSM network providers without changing the handset, and hence
subscribers need not to purchase the different handset for the different network.

 
 Y

1. A subscriber is eligible to make a porting request only after 90 days of the date of activation of
his mobile connection.

2. Subscribers transferring the mobile number with some balance amount, no credit transfer
would be allowed to the new account.

3. Consumers allowed to change operators within their registered circle only (So if you are
moving to another city and want to retain your mobile number, MNP is not the answer).

Y
á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y   Y

The purpose of the study was to know the consumer perception regarding the 3g services and
reasons for change through mobile number portability.

The conclusion thereby is that majority of the population is aware of the 3g services and majority
of the population don¶t want to switch to other service providers.

Though people are aware of the 3g services but majority of the population is resistant to 3g
services as it is a bit costly and requires a 3g enabled mobile handset, which requires additional
cost to the subscriber

As far as the mobile number portability is concerned many people don¶t want to change there
service providers. the reason being loyalty with the current operator, lengthy process of change
and already being user of top service provider.

With the overall data and market research we can conclude that both 3g and mnp are growth
drivers of the Indian telecom industry. Both have their own impact on the industry and consumer
perception regarding the same will change over a period of time as it is a new concept in the
market and will take some time to be acceptable.

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Yu Y

Y
 Y

Dear Sir / Madam,

We are  Y "Y u and conducting a survey for academic purpose which is part of our
curriculum. Your views about the questions being asked are welcomed and of great importance to
Telecom Service Provider. I hereby assure that details provided by you will be very much confidentialY

! Y YYYY 2 Y! Y 2  YY  Y"Y  2Y2YY 2


Y

YY2 Y 22 YY 2  2Y"Y! !Y  Y &Y

YYYY Y YYYYYYY 


 Y YYYYYY Y 
Y YYYYYYYYY YYYYYYYYYYYY YY  Y

YYYY Y YYYYY  Y YYYYYYYYYY


 Y

Y2Y!YYY!
Y Y YY  Y! &Y

0 ± 6 months 06 months ± 1 year 1 ± 2 years > 2 years

Yu2 YY2 Y"YY 2


&Y

Yes NoY

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

YY2Y 22 Y  Y! Y2YY 2


&Y

Yes No

Y "YYY! Y


Y  YY
YY!
YYY"Y ! Y2Y  Y! YYY YY  Y! Y&Y

Yes No

Y#Y YY2 Y! Y2  Y Y!Y"" Y2Y  Y"2Y ! YY2 2Y
Y 2
&Y

( please give the ranking on the basis of 1 to 4, with 1 most effective and 4 being the least)

Value added call quality tariff charges my handset


services (voice,video) (call rates,etc) (it will decide how many
3g services you can use on
Your handset)

Y!Y Y"YY   Y 2


YYY2 Y YY &Y
2Y! Y Y Y2 YY Y"2Y 2
Y Y2 2Y"Y 2 Y2  YY"2Y! YY
"
2  Y 2
YYY"2Y! Y YYY"2Y! Y! 2YYY"2Y! Y"2!Y

Online multi-users Web browsing Location information


/single-user games service

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Tickets booking, Download movies/ Watch online


such as movie tickets songs/videos video on youtube,etc

Online payment Mobile TV Others

>  !"!#$%&%#'"' !(#')



)!()*$*

Y YYYYYY
 Y YYYYY 
Y Y YYYYYYYYYYY YYYYYY  YYYYYY

 Y   Y

Y
Y
___________________________________________________________________________

YY  Y 2Y2  Y  YY  2YY2   2Y

  Y   Y
!Y! !Y2  Y 2Y 2
YY2 Y &Y

(a) Aircel (b) Airtel (c) BSNL (d) Idea

(e) MTS (f) Reliance (g) Vodafone (h) Tata Indicom

!YY YY ! Y2Y 2


Y2
 2&Y

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

(a) Yes (b) No

Y
!Y!YYYYY ! Y2Y   Y2 ) 2
&Y

(a)New technology b) Change Tariff (c) Change network

(e) Others (please specify)_________________________________________


Y
!Y
Y! !Y2  Y 2Y 2
YYYY
Y&Y

(a) Aircel (b) Airtel (c) BSNL (d) Idea (e) MTS

(f) Reliance (g) Vodafone (h) Tata Indico


Y
!! !Y"Y! Y" YYY Y! 2Y! Y  &Y

(a) SMS (b) MMS (c) Internet (d) Games (e) Wall Paper

(f) Downloading (g) Others


Y
!Y2Y! 2 YY Y2Y2 !2 Y Y2YY2 !2 Y &Y

(a) Retailer (b) Online

!YY2 " 2YY!


Y Y2 !2 Y2YY2 !2 Y &Y

(a) Easy recharge (b) Recharge coupon

!Y! 2 Y YY Y "2 YY! Y   2&Y

(a) News paper (b) Magazine (c) TV Ad (d) Friends


á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

(e) Colleagues (f) Online (g) Leaflet (h) Phone (i) Others

Y! 2 Y YY Y! Y "2 YY! Y2 ) 2


&Y

(a) News paper (b) Magazine (c) TV Ad (d) Friend¶s

(e) Colleagues (f) online (g) Leaflet (h) Retailer (i) others
Y
!!Y!YY ! Y2Y 2
Y2
 2&Y
Y
(a) Reference (b) Prior experience (c) Network (d) Provide clear voice

(e) Excellent service (f) Price promise (g) Availability (h) others
Y

!Y! !Y 2Y 2
Y"" 2YY Y  2Y2&Y
Y
(a) Aircel (b) Airtel (c) BSNL (d) Idea (e) MTS

(f) Reliance (g) Vodafone (h) Tata Indicom


Y

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y
c  
 
c

  

Y  u#Y

u2  Y2  Y

  Y  Y2  Y ! YYY!YYY2 !Y2 !Y

 ,Y  Y2


Y2 2Y Y ! YY
2 Y"Y  Y

uY Y Y2 2YY  Y"Y YY  Y  Y 2Y ! YY
YYY

 2 Y2  Y


    Y


u   Y

  Y

  u   Y

u    Y

! 2Y2  Y

MAGAZINES AND JOURNALS

EMPLOYEES WORKING WITH TELECOM COMPAINES

MARKET EXPERTS

á á á
á    á Y Y Y Y Y
Y Y
Y
Y Y
Y

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