Data Mining
Data Mining
ON
Data Mining: “Understanding Customer
Preferences in the Telecommunication Industry
for Airtel -NCR ”
Session: 2024-2025
Galgotia’s University
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Table of Content
Table of Content 03
04
Introduction and Objective
05
Methodology
05
Scope of the Study
06
Survey Design
10
Data Cleaning
11
Data Exploration
19
Secondary Data Analysis
27
Interpretation
Recommendation 28
Conclusion 29
Sources 30
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Introduction and Objective
The telecommunication industry of India, plays and important role in India’s
high growth rate today, it stands as a cornerstone of India emerging as a
financial power around the world by facilitating communication, connectivity,
and collaboration on a global scale. With the rapid increase of smartphones,
internet-enabled devices, and digital services, the landscape of
telecommunication is continuously evolving, presenting both opportunities and
challenges for the competitive market of India in this dynamic sector.
Amidst all of this, understanding customer and their preferences in the
telecommunication industry is paramount. Telecom service providers (TSPs)
and internet service providers (ISPs) are facing increasing pressure to not only
meet but exceed customer expectations, delivering seamless experiences,
innovative solutions, and exceptional value propositions that too at a
competitive price range.
This report endeavors to delve deep into the mindset of customer and their
preferences within the telecommunication industry, encompassing a
comprehensive analysis of both voice and data services for the key major player
of the telecommunication industry Bharti Airtel Limited which is commonly
known as Airtel.
Airtel is one of India’s leading telecommunications companies and is
recognized as a global telecommunications powerhouse. It was founded in 1995
by Sunil Bharti Mittal, Airtel has emerged as one of the largest mobile network
operators in the world, serving over 570 million users worldwide and over 374
active million users in India as of January 2024.
By examining the factors influencing consumer choices, usage patterns, and
satisfaction levels, this study seeks to illuminate deeper insights that can inform
strategic decision-making and drive business success.
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Methodology
The methodology of this report was based on survey questionnaire and
secondary data collection. The survey questionnaire was designed to provide
preference, usage patterns, satisfaction levels, and reasons for any change in
service providers. Data was collected from an approximate similar age group of
respondents to analyze the telecom preference of young adult age group.
Data cleaning and exploration techniques were used to ensure data quality and
identify key trends in the survey responses.
Usage of secondary data had been used from online articles, newspapers, and
from TRAI research and survey data.
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Survey Design
Demographic and Personal Information:
Q1. Gender
1. Male
2. Female
3. Prefer not to say
Q2. Age
1. Under 18
2. 18-24
3. 25-34
4. 35-44
5. 45-54
6. 55-64
Q3. Location
1. Delhi
2. Noida
3. Greater Noida
4. Ghaziabad
5. Other
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4. Vi (Vodafone Idea)
5. Other
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2. Work-related
3. Entertainment
4. Communication
5. Other
Q13. Price/affordability
Not Important 1-5 Very Important
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Not Important 1-5 Very Important
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Data Cleaning
This step explores the intricacies of the review of collected data and cleaning
procedures were done to ensure consistency and completeness while mitigating
any error in the data.
3. Data Validation:
Data were validated to ensure accuracy and integrity. Checks were
performed through Email Id’s to verify the responses of every participants
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to ensure data validity. Data consistency were checked to verify responses
and to identify anomalies or inconsistencies that required further
investigation.
Data Exploration
Moving ahead with data cleaning process, the dataset was explored to identify
key trends and patterns observed in the survey responses of total participants of
32. Exploratory data analysis techniques were applied to gain insights into the
data distribution, relationship between two variables, and areas of interest.
1. Descriptive Statistics:
25%
69%
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Current Telecom Provider brand share percentage of different brands
were as follows :-
• Jio: 69%
• Airtel: 25%
• VI Vodafone Idea: 6%
Here it can be clearly seen that Jio holds the most share of users
compared to other brands based on the survey.
Monthly Average
Age Expenditure Expense Median Expense Modal Expense
The average age of user from the survey came out to be age group of 18-
24. Where evaluating monthly expenses for different brands it can be
seen that:
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Jio: Jio users are paying the most out of other brands at average expense
of Rs. 436 and modal expense of Rs. 299. Though Jio being cheaper than
other brands. It can be observed that most of the users of this age group
are paying for the 1 GB/day to 1.5 GB/day mostly where plans above or
near Rs. 299 per month were mostly popular.
Airtel: Airtel users are paying the second highest at average expense of
Rs. 395 and modal expense of Rs. 274. It can be observed for the Airtel
most users are opting for 1.5 GB/day to 2GB/day plans which were
cheaper than Jio’s monthly plans. Airtel users are paying less than 299 per
month.
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Figure 3
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speculative answer on why Airtel users opt more for 2 GB/day plans
compare to 1.5 GB/day.
Customer service
Data speed
Price/Affordibility
Network Coverage
-15 -10 -5 0 5 10 15 20 25 30
Basis on the analysis of the chart, we can state that for the user of Delhi
NCR, Network Coverage is the most important factor while choosing a
ISP/TSP. It can be seen that the factors can be arranged in a descending
order of importance for users: Network Coverage> Data Speed >
Customer Service > Price/Affordibility > Offers and Promotions.
Reliability Analysis
SD Cronbach's α
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Cronbach’s alpha of 0.910 shows high reliability and strong internal
consistency, as well as Standard Deviation of 0.868 shows low spread of
data from the mean.
Airtel:
Correlation (Network Coverage to Customer Satisfaction):
Correlation
SA1 FA1
SA1 Pearson's r —
p-value —
Model R R²
1 0.988 0.976
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Model Coefficients - SA1
Predictor Estimate SE t p
Hence our Alternative Hypothesis stands true for this case of Airtel.
Jio:
FA1 SA1
FA1 Pearson's r —
df —
p-value —
Model R R²
1 0.167 0.0280
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Model Coefficients - SA1
Predictor Estimate SE t p
Hence our Null Hypothesis stands true for this case of Jio.
VI:
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Secondary Data Analysis
To further understand customer preference and customer satisfaction of
Telecom Service Providers and Internet Service Providers, We will
analyse some articles and TRAI surveys and reports provided on the
Internet from their respective sources and newspaper articles.
While, Airtel added 1.5 million, bringing it’s total subscribers to 384.01
million.
In January 24: Airtel dominates the market as the company added a total
of 3.6 million active users in January 2024, bringing its total active user
base to 381.1 million. It is followed by Jio, which added 1.1 million,
reaching 425.6 million active users in January, while Vodafone Idea lost
1.7 million active users, bringing its active subscriber count to 194.9
million in January 2024.
Even if it is not able to increase market share, Airtel can boast of the
quality of users, which is best in the industry. Airtel leads the industry
with an ARPU of Rs 208, surpassing Jio’s Rs 182 and Vodafone Idea’s
Rs 145.
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Market Share of Wireline Subscribers as on 29th February, 2024:
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Market Shares in term of Wireless Subscribers as on 29th February, 2024:
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Monthly growth rate of Telephone Subscribers; Urban: 0.40%, Rural:
0.34%
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*Tele density, also known as telephone density, is the number of
landline phone connections per 100 people in a specific area.
Delhi
UP West
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Data Speed Information (Wireless ISP):
Map data shows data speed range from 3-5Mbps to >10Mbps speed for
Airtel ISP. Compared to other ISP’s, Airtel comes at second when it
comes to high speed data network.
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6 Months Average speed data shows the same observation for Airtel
being the second fastest ISP in the Delhi-NCR area.
While the fastest in the segment, Jio internet speed revolves around 25-
30< Mbps. Airtel speed stays at upper bar of 20 Mbps segment.
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Interpretation
Based on the latest data and survey analysis about Airtel as a Telecom Service
Provider and Internet Service Provider, valuable insights have been derived.
Let’s have a look into the interpretation:
• Though Airtel users are loyal to them, Airtel still lacks at some
factors like Network Coverage at some areas, this can be observed
by a comment from a response, “I don't feel any Issue in my
Primary Sim Airtel in any location regarding Internet but in
University due to Location Faces some Internet Issue”.
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• Trend analysis reveals a consistent pattern of usage among Airtel
customers, with a notable portion of respondents reporting a stable
and long-standing relationship with the service provider.
Recommendations
1. Enhanced Network Infrastructure: Given the importance of network
coverage and data speed to customer satisfaction, Airtel may consider
investing further in expanding and optimizing its network infrastructure
to ensure seamless connectivity and high-speed internet access for
customers across different regions.
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Conclusion
In conclusion, the survey findings and secondary data provides valuable insights
into customer preferences and satisfaction level. Through the meticulous design
of the survey questionnaire and the collection of primary data, we have gained a
deeper understanding of customer preferences, usage patterns, and satisfaction
levels among respondents. Airtel throughout India and Delhi – NCR area with
Airtel as prominent player with a significant no. of user base after the industry
leader with approximately 7% less user base in different types of services like
broadband, wired and wireless networks.
Analysis of the survey data has revealed several key findings. We have
observed that telecom service providers play a pivotal role in shaping customer
experiences, with a significant portion of respondents indicating preferences for
specific providers such as Airtel, Jio, Vi (Vodafone Idea), and others. Moreover,
the survey has shed light on the importance of factors such as network coverage,
data speed, pricing, and customer service in driving customer satisfaction and
loyalty.
The high negative correlation obtained from the analysis demonstrates, how
different independent variable such as network coverage, data speed, offers,
pricing, and customer service shows relationship between dependant variable of
customer overall satisfaction while using a telecom/internet service provider.
Based on the survey findings, several recommendations can be proposed for
Airel to enhance customer satisfaction and improve business strategies like
enhancing network infrastructure, and introducing tailored offers and packages
to meet the diverse needs of customers effectively. Furthermore, embracing
technological advancements and prioritizing ethical considerations in
conducting business operations are essential for maintaining customer trust and
fostering long-term relationships.
In closing, the report delves deep into the importance of customer centred
strategies in driving success and improvement in telecommunication industry.
By leveraging the insights gained from this study, businesses can make
informed decisions, enhance service quality, and create value for their
customers, ultimately contributing to the growth and development of the sector.
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Sources
• Jio retains 40% market share in mobile connectivity:
https://www.newindianexpress.com/business/2024/Apr/09/jio-retains-40-
market-share-in-mobile-connectivity
• Airtel mkt share remains stagnant at 32.9%, Jio sees gain in past one
year: https://www.newindianexpress.com/business/2024/Apr/03/airtel-
mkt-share-remains-stagnant-at-329-jio-sees-gain-in-past-one-
year?utm_source=website&utm_medium=related-stories
• https://myspeed.trai.gov.in/
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