Athira.v Final Project
Athira.v Final Project
1 INTRODUCTION
Communication is inevitable to all human activities and integral part of one’s life. It is an essential dimension
for meaningful co-existence and harmonious group living. Strung together by complex network, telephones,
mobile phones and internet linked computers, the global telecommunication system touches nearly all of us.
It allows us to speak, share thoughts and do business with nearly one, regardless of where in the world they
might be. Telecom operating companies make all this happen.
Information and communication networking is widely used to promote exchange of information and
knowledge and experience for development at the grass root in developing countries like India. Long back,
the telecom network in India was owned and managed by government as it is considered as a strategy device.
Liberalization made the cellular operations highly competitive. India is the FIFTH largest telecom marketing
in the world and second largest among emerging economies of Asia.
India’s telecommunication is the second largest in the world based on the total number of telephone users
(both fixed and mobile phone) .It has one of the lowest call tariffs in the world enabled by the mega telephone
network and hyper-competition among them. It has the world’s second-largest Internet user-base with over
560 million as of June 30, 2021. Major sectors of the Indian telecommunication industry are telephony, internet
and television broadcasting
In the first stage, the telecom sector was owned and run by the government. The telephone services began in
India with a manual telephone exchange in 1882 in Kolkata.The telecom industry evolved only after the
Department of Telecommunication (DoT) was separated from the Indian post and telecommunication
department in 1985. DoT was responsible for telecom services of the entire country till 1986. Subsequently,
MTNL and VSNL were carved out of the Department of Telecommunication (DoT) for separation of its policy
functions and telecom operations in metro cities like Mumbai and Delhi and International long distance
operations .This gives rise to the 2nd part of the telecom industry in India in which the government allows
private players to enter the Telecom Industry.
In 1994, the government introduced the National Telecom Policy (NTP) for private players. This policy clearly
laid down the role of private operators. Cellular services were first launched in 1995 in Kolkata. Another
milestone during this Era was the formation of TRAI in 1997. TRAI was formed to regulate the fair
environment between operators and subscribers .In 2000, the third organization called TDSAT was formed to
settle the disputes between operators, between operators and government, and between operators and
subscribers. During this period telecom subscriptions were growing rapidly, Operators brought in new
innovations like prepaid, this reduces the mobile fees and allows cell phones affordable to common men .
After march 2000, the government became more liberal and started issuing more licenses and reduced license
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fees. This starts the 3rd stage of the telecom industry. In the golden Era, in 2005, 2G gave rise to mobile users.
The number of mobile connections rapidly crosses the number of fixed-line connections.
Indian telecom market is one of the fastest growing and most competitive markets in the world. In the same
year, the government increased the foreign Direct Investment (FDI) limit in the telecom sector from 49% to
74% .The most significant contributors of the Re-definition age are the introduction of 3G in 2008 and 4G in
2012. The introduction of 3G and 4G networks gives advent to the Smart Phones. This brought in mobile
advertising, mobile commerce, video calling, streaming, full movie download, live TV, and multi-player
gaming to everyone’s handset .After 2G, 3G and 4G, the 5G is now all set to launch in India.
Mobile phones means using a number of short range radio signals to cover the area that it serves, the signal
being automatically switched from one station to another as a user travels about. Mobile phone is also known
as cellular phone. Mobile phone links us together while people are apart. Mobile phones join in virtual
communication, workers with work place, and children with parents, lovers, friends with friends and families
with each other.
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1.2 STATEMENT OF THE STUDY
In this competitive world the total number of users and telecom providers are increasing throughout the day .
The consumers are encountering a lot of problems related to the telecommunication services. This project
deals with the study of customer preference and satisfaction of prepaid telecom providers with special
reference to Nellaya Panchayath. So this study will helps to understand the customer preference and
satisfaction towards a particular service provider and the reason for selecting a particular one. The study also
aims to bring the current trends and reasons for favorability towards specific mobile service providers.
1.3 OBJECTIVES
2.To analyze Customer satisfaction of the services of the cellular mobile service providers.
5. To identify the various criteria considered by a customer before choosing a particular mobile service
provider.
The present study is restricted to Nellaya Panchayath and it is decided to consider JIO, VI, BSNL, and
AIRTEL for all services rendered to the customers.50 prepaid telecom service seekers in Nellaya Panchayath
has been taken as a simple for the current research work.
Exchange of information becomes the necessity of life to a common man. In the modern world an individual
tends to communicate anything to everything right from the place where he/she stands. Even while riding
vehicle he/she wants to communicate with in a fraction of second at quick speed with clear voice, without any
disturbance. Like line crossing, out order etc.., most of which are in the connection given by the department
of telecommunication. Cell phone emerges as a boom quench such a thirst, they providing facilities, which
a common man cannot imagine. The cell phone industry has it origin in the recent part and the growth has
been excellent.
Day by day many new competitors enter in to the market with new attractive schemes, provide additional
facilities, add new features to existing ones, reduces the charges per incoming and outgoing calls, introduction
varieties of handset, models a healthy competition that benefit the subscribers. Hence in this context it
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important to study the functioning of cellular phone service and the utilization of their services by the people.
Research design
The study is descriptive in nature. It was conducted based on the response of sample respondents. A
schedule of question was handed over to each respondent and their responses to questions were collected.
Collected data were analyzed quantitatively and qualitatively to reveal meaningful findings on the background
of textual data.
Sources of data
In this study there is a need to gather primary as well as secondary data. Primary data are collected on original
information gathered through a questionnaire which was handed over to each respondent and their responses
to questions were collected and secondary data is collected from already existing sources in various
organizations, brochures, records etc…
The researcher adopted convenience sampling method in the study. The sample of the study consist of 50
prepaid telecom service seekers in Nellaya Panchayath who are using different telecom services.
1. Percentage analysis
2. Bar chart
3. Pie chart
4. Table
PERCENTAGE ANALYSIS
It refers to the special kind of ratio. It is used in making comparison between two or more series of data.
Percentage can also be used to compare the relative terms, the distribution of two or more series of data. The
percentage analysis is conducted by dividing number of respondents with total population of sample.
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1.7 LIMITATION OF THE STUDY
2. Study limited to Nellaya Panchayath and therefore for generalization to other cities, unique features of
those cities is to be considered.
4. Sample size is small. A better analysis would be carried out with a large sample size.
For the purpose of convenience, the study is arranged in to five chapters. The chapter scheme is as follows.
Chapter 1: Introduction
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REVIEW OF LITERATURE
There are several studies conducted related to this topic which are as follows various aspects of topic is
ROBINS (2008) studied about marketing the next generation of mobile service. This study is about third
generation of cell phone technology what is usually known as ‘3G’ for short. There are various issues about
that new innovative. One is how he price the 3G handset and services at a level which will enable telephone
operating company to recoup the high prices they have paid to government for operating licenses.
DEBNATH (2008), explain that the prime focus of service providers is to create a loyal outcomes base
by benchmarking this performance and relating existing customers in order to benefit from this loyalty. The
Indian government has announced a new policy, which allows private firms to provide basic telephone
services. There had been a monopoly of state owned department of telecommunications however several
companies are expected to benefit from the policy change.
BHAT (2008), In this study titled “A STUDY ON MOBILE PHONE USAGE AMONG PG
STUDENTS” analyzed that it is instant for mobile carriers service providers content developers equipment
manufactures as well as for parents and young people alike that key characteristics of mobile technology is
well understood. So that the risk associated with its potentiality damaging or disruptive aspects can be
mitigated. This paper has tried to compare the usage difference by gender with respect to the different
manufacturing and service provided company.
JHA (2008) in this study analyzed that, it is the youth which is the real growth tribal of telephone industry
in India. Considering this fact this paper is an attempt to give a snapshot of how frequently young people use
these mobile phones for several embodied function of the cell phones. Findings of the study would be helpful
for the telecom service providers and handset manufactures to formulate a marketing strategy for different
market segments.
KALAVANI (2006), in this study analyzed that majority of the respondents have given favorable opinion
towards the service but some problems exist that deserve the attention of service providers. They need to
bridge the gap between the services promised and services offered. The overall customer attitude towards cell
phone services is that they are satisfied with existing services but still they want more services to be provided.
KUMAR (2008) in their study titled “customer satisfaction and discontentment vis-à-vis BSNL landline
services. A study analyzed that at present services marketing plays a major role in the national economy. In
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the service sector telecom industry is growing rapidly, India’s telecom density is less than the world’s average
telecom density as most of India’s market is yet to be covered.
SETHETAL (2008) In this study titled “managing the customer perceived service quality for cellular mobile
telephone : An empirical investigation “analyzed that there is relative importance of service quality attributes
and showed that responsiveness is the most important dimension followed by reliability customer perceived
network quality, assurance3, convenience, empathy and tangibles. This would enable the service provider to
focus their resources in the area of importance. The research resulted in the development of a reliable and valid
instrument for assessing customer perceived service quality for cellular mobile services.
FERNANDEZ (2007) in this study titled “understanding dynamics in an evolving industry: case of mobile
value –added services- in India “analyzed that mobile value added services is rising star in the fast growing
wireless business In the paper attempt us made at understanding the strategic dynamics of the evolving
environment within which the Indian players are operating, the challenges and structure of the same. Our
literature and industry review indicates that while the value chain of industry is complicated yet once can
observe the Bi-polar nature of bargaining powers between mobile network operators and content aggregators.
BISMATH (2006) in this study titled “competition in European telecom markets” analyzed that in recent years
the European telecommunication market has witnessed major developments, with rapid expansion in access
to telecommunication networks and a surge in the number of available services and applications. While many
factors have contributed to the transformation of telecommunication industry, competition has played a key
role in driving telecom players to invest in new technologies, to innovate and to offer new services.
KALPANA AND CHINNADURAI (2006) in this study titled “promotional strategies of cellular services –
customer perceptive “analyzed that the increasing competition and change in taste and preference of the
customers all over the world are forcing companies to change their targeting strategies. The study revealed
that the customer attitude and their satisfaction towards the cellular service in Coimbatore city. It was found
that advertisement plays a dominant role in influencing the customers but most of the customers are of opinion
that promotion of strategies of cellular companies are more sale oriented rather than customer oriented.
FREDRICK (2008) analyzed the impact of yield management and discrimination pricing in
telecommunication sector. Yield management is the process of allocating the right type of capacity or
inventory unit to the right kind of customer at right price so as to maximize revenue or yield. Yield
management technique can help telecom operators and similar company to optimize the benefit they can drive
from a stable management of information network and partnership. However such an approach is more
difficult to implement in that telecom industry than in the airline sector because of the difficult to control
network access to customers.
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CHRIS (2003) in this study titled “Telecom advertisement in print media “this research attempt to investigate
why telecom theme are used in advertisement and the motives that lead companies and advertisers to use sports
celebrities and sport concept in advertisement.
SAMUVAL, in his study found that most of the respondents consider, size, quality, price, instrument serving
are an important factors for selecting the handset of majority of the respondents are satisfied over the payment
system, quality of services, coverage area, and attending the complaints. 1. Samuel, “customer satisfaction for
cellular services, a study with a reference to BPL and Aircel mobile phones and services”, an unpublished
MPhil, dissertation, submitted to Bharathiar University, Coimbatore, December 2002.
SreeNandhini, in her study shows that 88.3% of the respondents are cell phone helps that to deal business
matter confidently and effectively. This study shows that attitude of the respondents using cell phones was not
influenced by either education or occupation or occupation and income. 2. SreeNandhini, “an investigation of
user perception and attitude to cellular phone in Coimbatore”, an unpublished submitted to Bharathiar
University, December 2001.
Achaem (2003), in his study “existing customer relation” found that the dealer’s service regarding Aircel
cellular is highly satisfactory.
Hutchison’s managing director Asim and Ghost 2005 says in the article, “Telecommunication”
telecommunication is such a huge sector and it is so easy to be reduced by its different points, but thankfully
we were 4. As in Glosh, “telecommunication “business world 27.
So from the above studies it is found that this study is little bit different from those studies.
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THEORITICAL OVERVIEW
The history of prepaid mobile phones begins in the 1990s, when larger markets were being sought
after by the mobile phone operators. Before this date, all mobile phone services were offered on a post-paid
basis, which excluded people with a poor credit rating. Prepaid mobile service was invented by subscriber
computing, an orange country company and (1986-1998), founded and directed by Arlene Harris. The prepaid
service was sold to Metro Mobile in June 1989, and it was implemented in November 1989.the prepaid service
also sold to carriers in Mexico, and to Telcel, where implementation began in November 1997 and production
took place beginning on April 15, 1998. Prepaid service enabled carriers in third world countries to add
subscribers without having to print monthly statements, having an accounts receivable department and the
ability to pay their bills. “Without prepaid service, cellular service would not have reached the masses as
quickly and extensively as it has.”
In 1996 MTN became the first mobile operator to introduce a prepaid cellular service in Africa, popularizing
“pay as you go” in emerging markets. The first prepaid card was called “Mimo” and was launched by TMN,
the mobile phone operator of Portugal telecom, in September 1995. In 2006 Swisscom celebrated ten years
with its product and service “NATEL easy” which also holds a patent on the topic “prepaid mobile subscriber
identification card and method implemented thereby”.
In today’s information age, the telecommunication in industry has a vital role to play. Considered as the
backbone of industrial and economic development, the industry has been aiding delivery of voice and data
services at rapidly increasing speeds, and thus, has been revolutionizing human communication.
Although the Indian telecom industry is one of the fastest growing in the world, the current teledensity or
telecom penetration is extremely low when compared with global standards. India’s teledensity of 36.98% in
FY09 is amongst the lowest in the world. Further, the urban teledensity is over 80%, while rural teledensity is
less than 20%, and this gap is increasing. As majority of the population resides in rural areas, it is important
that the government takes steps to improve rural teledensity. No doubt the government has taken certain policy
initiatives, which include the creation of the universal service obligation fund, for improving rural telephony.
These measures are expected to improve the rural tele-density and bridge the rural-urban gap in teledensity.
History
Indian telecom sector is more than 165 years old. Telecommunications was first introduced in India in 1851
when the first operational land lines were laid by the government near Kolkata (the Calcutta), although
telephone services were formally introduced in Indian much later in 1881. Further, in 1883, telephone services
were merged with the postal system. In 1947, after India attained independence, all foreign telecommunication
companies were nationalized to form the posts, Telephone and Telegraph (PTT), a body that was governed by
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the ministry of communication. The Indian telecom sector was entirely under government ownership until
1984, when the private sector was allowed in telecommunication equipment manufacturing only. The
government concretized its earlier efforts towards developing R & D in the sector by setting up an autonomous
body- Centre for Development of Telematics (C-DOT) in 1984 to develop state- of- the art telecommunication
to meet the growing needs of the Indian telecommunication network. The actual evolution of the industry
started after the Government separated the Department of post and Telegraph in1985 by setting up the
Department of posts and the Department of Telecommunications (DOT).
The entire evolution of the telecom industry can be classified into three distinct phases.
Until the late 90s the Government of Indian held a monopoly on all types of communications- as a result of
the Telegraph Act of 1885. The telecom industry in India has experienced exponential growth over the past
few years and has been an important contributor to economic growth however, the cut-throat competition and
intense tariff was have had a negative impact on the revenue of players. Despite the challenges, the Indian
telecom industry will thrive because of the immense potential in terms of new users. Indian is the most
attractive telecom markets because it is still one of the lowest penetrated markets. The government is keen on
developing rural telecom infrastructure and is also set to roll out next generation or 3G services in country.
Operators are on an expansion mode and are investing heavily on telecom infrastructure. Foreign telecom
companies are acquiring considerable stakes in Indian companies. Burgeoning middle class and increasing
spending power, the government’s thrust on increasing rural telecom coverage; favourable investment climate
and positive reforms will censure that Indian’s high potential is indeed realized.
The rapid pace of growth in telecommunications makes it necessary to develop India as a Global
manufacturing hub. With its proven track record in the skill-intensive industries and the global trend to
manufacture and source products in low cost countries, India is well placed to emerge as one of the leading
hub for manufactured exports.
With liberalization of the Indian economy, the telecom sector has become very attractive for merges and
acquisitions. M&A in India is subject to various laws the principle of them being the companies Act 1956,
Income Tax Act 1961 and the Takeover code (for public listed companies). Regulatory considerations are also
equally important to take note of in telecom M&A.
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Telecommunication – the transmission of signals over a distance for the purpose of communication. In
modern times, this process almost always involves the use of electromagnetic waves by transmitters and
receivers, but in earlier years it also involved the use of drums and visual signals such
as smoke, fire, beacons, semaphore lines and other optical communications.
Modes of telecommunication
• E-mail
• Fax
• Instant messaging
• Radio
• Satellite
• Telegraphy
• Telephony
• Television broadcasting
• Videoconferencing
• VoIP
• Telecommunications network
• Computer networks
• ARPANET
• Ethernet
• Internet
• Wireless networks
• Public switched telephone networks (PSTN)
• Packet switched networks
• Radio network
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Advantages of Telecommunication :
• Quick and accessible communication
• Lack of time period
• Saves time
• Saves gasoline (do not need to drive distance)
• More than two people can communicate with at least one another at an
equivalent time
• Next “best thing” to being there
• Easy to exchange ideas and knowledge via phone and/or fax
• Worldwide access
• Easy access to the people you would like to contact.
• Less effort in using transportation just to satisfy a private personally.
• You can just occupy your home and use a telephone or a cell phone if you
would like to speak to someone.
• Enable end-users to speak electronically and share hardware, software, and
data resources.
• This make corporation to do the transaction at the point only and in a very fast
way from many remote locations, exchange business documents electronically
with customers and suppliers, or remotely monitor and control production
processes.
Disadvantages of Telecommunication :
• Cultural Barrier
• Misunderstanding
• Prank calls
• Sometimes expensive
• High electric bills
• Remote areas don’t have access
• Remote areas might not be ready to afford the necessary equipment
• Cannot see whom you’re speaking with
• Cannot see facial expressions, therefore results in misunderstandings
• Cultural barriers
• Poor connections or downed power lines during/after storms
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Telecom service providers are the followings:
• BSNL
Bharat sanchar Nigam Limited (abbreviated BSNL) is an Indian state owned telecommunications company
headquartered in New Delhi, India. It was incorporated on 15 September 2000. It took over the business of
providing of telecom services and network management from the erstwhile Central Government of Telecom
Services (DTS) and Telecom Operations (DTO), with effect from 1 October 2000 on going concern basis. It
is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and market
share plunged into heavy losses due to intense competition in the Indian telecommunications sector.
BSNL is India’s oldest and largest communication service provider (CSP). It had a customer base of 95
million as of June 2011. It has footprints throughout India except for the metropolitan cities of Mumbai and
New Delhi, which are managed by Mahan agar Telephone Nigam (MTNL).
• VI
We were incorporated as Birla Communications Limited on March 14, 1995 and granted a certificate of
commencement of business on August 11, 1995. Our registered office was in Mumbai, Maharashtra. Our
name was changed to Birla AT&T Communications Limited on May 30, 1996 following the execution of a
joint venture agreement dated December 5, 1995 between AT&T Corporation and Grasim Industries Limited
pursuant to which the Aditya Birla Group held 51% of our Equity Share capital and AWS Group held 49%
of our Equity Share capital. Our registered office was transferred from Industry House, 1st Floor, 159
Church Gate Reclamation, Mumbai 400 020, Maharashtra to Suman Tower, Plot No. 18, Sector 11,
Gandhinagar 382011 Gujarat on October 22, 1996. With effect from January 1, 2001 following our merger
with Tata Cellular Limited the joint venture agreement between AT&T Corporation and Grasim Industries
Limited dated December 5, 1995 was replaced by a shareholders agreement dated December 15, 2000
entered into between Grasim Industries Limited on behalf of the Aditya Birla Group, Tata Industries Limited
on behalf of the Tata Group and AT&T Wireless Services Inc. on behalf of the AWS Group following which
our name was changed to Birla Tata AT&T Limited on November 6, 2001. Consequent to the introduction
of the “Idea” brand, our name was changed to Idea Cellular Limited on May 1, 2002. The AWS Group
exited from the Company on September 28, 2005 by selling 371,780,740 Equity Shares of the Company,
which constituted 50% of the holding of AT&T Cellular Private Limited in our equity share capital, to
ABNL and by transferring the remaining 371,780,750 Equity Shares to Tata Industries Limited.
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The Tata Group ceased to be a shareholder of the Company on June 20, 2006 when Tata Industries Limited
and Apex Investments (Mauritius) Holding Private Limited (formerly known as AT&T Cellular Private
Limited) sold all their shares in the Company to the Aditya Birla Group.
On October 26, 2006, P5 Asia Investments (Mauritius) Limited (“P5 Asia”) acquired 14.60% of our
Equity Share capital. Under a Governance and Exit Rights Agreement dated October 23, 2006 between P5
Asia, ABNL and Birla TMT, so long as an initial public offering has not occurred and P5 Asia holds no less
than 10% of our Equity Shares, ABNL and Birla TMT are required to procure that (a) our Company and its
Subsidiaries shall not take or pursue any of the following actions without P5 AsiaÂ’s prior consent (such
consent to be obtained in a board and/or shareholders resolution) including in respect of (i) any merger with,
acquisition of, or amalgamation or consolidation with another company or business; (ii) assuming or
permitting to exist any borrowings or indebtedness in the nature of borrowings if the amount of all such
borrowings of our Company and its Subsidiaries would exceed Rs. 6,800 million; (iii) entering into a new
line of business; (iv) increasing our authorized or issued share capital; or (v) entering into a joint venture and
(b) our Company makes available to P5 Asia certain financial information relating to our Company and its
Subsidiaries such as monthly management accounts, quarterly unconsolidated balance sheet and profit and
loss account and the annual audited consolidated balance sheets and profit and loss accounts.
P5 Asia also has a right to appoint one director to our Board so long as it holds at least 10% of our total
issued and outstanding Equity Shares. Mr. Biswajit Subramanian has been appointed to our Board by P5
Asia pursuant to the exercise of the above right. In addition, any IPO of our Equity Shares requires P5
AsiaÂ’s written consent, and, further, in any such IPO, P5 Asia has the right to offer for sale such number of
Equity Shares representing up to 10% of the total Equity Shares which are held by it. By its letters dated
December 2, 2006 to ABNL and Birla TMT, P5 Asia has given its written consent for the Issue and has
confirmed that it does not intend to offer for sale any of the Equity Shares held by it in such Issue.
We, either directly or through our Subsidiaries, provide mobile services in the Andhra Pradesh, Delhi,
Gujarat, Haryana, Kerala, Madhiya Pradesh, Maharashtra and Uttar Pradesh (West) Circles, and have
recently launched services and as such are in the process of fully rolling-out our network in the Uttar
Pradesh (East), Rajasthan and Himachal Pradesh Circles pursuant to licenses issued by the DoT.
• AIRTEL
Bharti Airtel Limited commonly known as Airtel, is an Indian multinational telecommunications Services
Company headquartered at New Delhi, India. It operates in 20 countries across south Asia, Africa and the
Channel Islands. Airtel has GSM network in all countries in which it operates, providing 2G, 3G and 4G
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services depending upon the country of operation. Airtel is the world’s third largest mobile
telecommunications company with over 261 million subscribers across 150 countries as of August 2012.It is
the largest cellular service provider in India, with 190.91 million subscribers of June 2013. Airtel is the third
largest in country mobile operator by subscriber base, behind China Mobile and China Unicom.
Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India,
and is also a provider of broadband and subscription television services. It offers its telecom services under
the Airtel brand, and is headed by sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider
to achieve Cisco Gold Certification. It also acts as a carrier for national and international long distance
communication services. The company has a submarine cable landing station at Chennai, which connects the
submarine cable connecting Chennai and Singapore.
Airtel is credited with pioneering the business strategy of outsourcing all its business operations except
marketing, sales and finance and building the minutes.
Factory model of low cost and high volumes. The strategy has since been copied by several operators. Its
network base stations, microwave links, etc. is maintained by Ericsson and Nokia Siemens Network whereas
business support is provided by IBM, and transmission towers are maintained by another company (Bharti
Infratel Ltd. In India) Ericsson agreed for the first time to be paid by the minute for installation and
maintenance of their equipment rather than being paid up front, which allowed Airtel to provide low call rates
of rupees 1 per minute. During the last financial year (2009_10), Bharti negotiated for its strategic partner
Alcatel Lucentto manage the network infrastructure for the tele media business. On 31 may 2012, Bharti Airtel
awarded the three year contact to Alcatel Lucent for setting up an Internet Protocol access network (mobile
backhaul) across the country. This would help consumer’s access internet at faster speed and high quality
internet browsing on mobile handsets.
Airtel operates in all telecom circles of India. Its network is present in 5,121 census towns and 457,053 non
census towns and villages, covering approximately 86.6% of the country’s population as of September 2012.
Airtel is the largest operator in rural India with 83.82 million subscribers as of April 2013.
Airtel is the 6th most valued brand according to an annual survey conducted by brand finance and The
Economic Times in 2010. India is the fastest growing mobile phone market in the world. The booming telecom
industry has been attracting large amount of investments in the country.
The number of telephone subscriber base in the country reached 671.69 million as of June 30, 2010 from
653.92 million in May 2010, as per the Telecom Regulatory Authority of India (TRAI).
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• JIO
Jio soft launched on 27 December 2015(the eve of what would have been the 83 rd birthday of Reliance
Industries founder Dhirubhai Ambani), with a beta for partners and employees, and became publicly available
on 5 September 2016. As of 31 January 2019, it is the third largest mobile network operator in India and the
ninth largest mobile network operator in the world with over 289.44 million subscribers.
The company was registered in Ambawadi, Ahmedabad, and Gujarat on 15 February 2007 as Reliance Jio
Infocomm Limited. In June 2010, Reliance Industries (RIL) bought a 95% stake in Infotel Broadband Services
Limited (IBSL) for rupees 4,800 crore (US$670 million). Although unlisted, IBSL was the only company that
won broadband spectrum in all 22 circles in India in the 4G auction that took place earlier that year. Later
continuing as RIL’s telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Limited
(RJIL) in January 2013.
In June 2015, Jio announced that it would start its operations all over the country by the end of 2015.
However, four months later in October, the company’s spokesmen sent out a press release stating that the
launch was postponed to the first quarter of the financial year 2016-2017.
Later, in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public Interest Litigation,
through Prashant Bhushan, challenged the grant of a pan- India license to Jio by the Government of India. The
PIL also alleged that Jio was allowed to provide voice telephony along with its 4G data service, by paying an
additional fee of just Rs.165.8 crore (US$23 million) which was arbitrary and unreasonable, and contributed
to a loss of Rs.2,284.2 crore (US $320 million) to the exchequer.
The Indian Department of Telecommunications (DoT), however, refuted all of GAG’s claims. In its
statement, DoT explained that the rules for 3G and BWA spectrum didn’t restrict BWA winners from
providing voice telephony. As a result, the PIL was revoked, and the accusations were dismissed
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ANALYSIS AND INTERPRETATION
This study analyses various important aspects of customer preference and satisfaction of prepaid
telecom service providers which are briefly described here
Male 20 40
Female 30 60
TOTAL 50 100
Sources: Primary data
GENDER OF RESPONDENTS
40%
male
female
60%
INTERPRETAION
The above table shows the gender of respondents. The majority of respondents are female with 60% and
male with 40%.
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TABLE 4.2 AGE OF RESPONDENTS
Below 17 7 14
17-25 33 66
25-33 4 8
33-40 3 6
Above 40 3 6
TOTAL 50 100
Source: Primary data
AGE OF RESPONDENTS
6% 14%
6%
below 17
8%
17-25
25-33
33-40
above 40
66%
INTERPRETATION
The above chat shows that 14% of the respondents come under the age group below 17, 66% of them come
under 17-25 age group, 8% under 25-33, 6% under 33-40 and 6% are above 40.
It is observed that majority of respondents are come under the age group 17-25.
18
TABLE 4.3 EDUCATIONAL QUALIFICATION OF RESPONDENTS
SSLC 6 12
Plus Two 12 24
Degree 23 46
PG 4 8
TOTAL 50 100
Source: primary data
8% 10%
Below SSLC
12%
SSLC
PLUS TWO
46% Degree
24% PG
INTERPRETATION
It is observed from the above table that 10% of respondents are of the qualification in below SSLC, 12% of
respondents are of SSLC, 24% of respondents are of PLUS TWO, 46% respondents are of Degree and 8%
respondents are of PG.
From this analysis, it is found that majority (46%) of the respondents are of Degree.
19
TABLE 4.4 OCCUPATION OF RESPONDENTS
OCCUPATION OF RESPONDENTS
3
4
student
2
1 business
profession
employee
homemaker
40
INTERPRETATION
It observed from the above table that 80% of the respondents are students, 2% of respondents are doing
business, 4% of respondents are engaged in profession, 8% of respondents are employees and 6%
respondents are come under category homemaker.
In this analysis shows that majority of respondents come under the category students (80%).
20
TABLE 4.5 TELECOM SERVICE SELECTION
VI 14 28
Jio 25 50
Airtel 5 10
Bsnl 6 12
TOTAL 50 100
12%
10% 28%
VI
jio
airtel
50%
bsnl
INTERPRETATION
Out of the total respondent’s majority comes under JIO with 50%, 28% of the respondents using VI, 10%
of respondents Airtel and 12% respondents are Bsnl.
21
TABLE 4.6 MONTHLY EXPENSES OF EACH RESPONDENTS TOWARDS MOBILES
MONTHLY EXPENSES
4% 4% 6%
20% 0-50
50-100
100-250
250-500
above 500
66%
INTERPRETATION
The above table shows that 4% of respondents are come under category 0-50, 6% of respondents 50-100,
66% of respondents 100-250, 20% of respondents 250-500 and 4% of respondents are above 500.
The majority of respondents monthly expenses towards mobiles under the catogory 100-250 with 66%.
22
TABLE 4.7 MOST PREFERRED SERVICES
6%
8% 16%
Call rates
SMS
Internet
Network
VAS
70%
INTERPRETATION
From the above data, 16% of respondents are preferred for call rates, 70% of respondents are preferred for
internet, 8% of respondents are preferred network and 6% of respondents are preferred Value Added Service.
The respondents are not preferred the service for SMS.
It observed that most of the respondents have preferred for internet with 70%.
23
TABLE 4.8 PERIOD OF USE OF SERVICE
12%
24% less than 1 month
1-6 month
20%
6month-1year
1-2year
more than 2 year
28% 16%
INTERPRETATION
The above chart shows that 12% of respondents are using less than 1 month, 20% of respondents are using
1-6 month, 16% of respondents are using 6 month-1year, 28% of respondents are using 1-2year and 24% of
respondents are using more than 2 years of service.
24
TABLE 4.9 CUSTOMER PREFERENCE
CUSTOMER PREFERENCE
12%
28%
10%
VI
jio
airtel
50% bsnl
INTERPRETATION
In above table shows that 28% of respondents are preferred to use VI, 50% of respondents are Jio, and
10% of respondents are Airtel and 12% of respondents are preferred to use Bsnl.
It shows that the most of respondents are preferred to use Jio with 50%.
25
TABLE 4.10 OPINION REGARDING RELIABILITY & RESPONSIVENESS
4% 12%
very good
26%
good
neutral
bad
very bad
58%
INTERPRETATION
It is observed from the above table that 12% of the respondents are of the opinion as very good, 58% of
respondent’s opinion that good, 26% of respondent’s opinion that neutral, 4% of respondents are bad
opinion.
26
TABLE 4.11 OPINION REGARDING DELIVERY OF SMS&MMS
DELIVERY OF SMS&MMS
6%
20%
Strongly agree
28% Agree
Neutral
Disagree
Strongly disagree
46%
INTERPRETATION
It is observed from the above table that 20% of respondents are of the opinion about the delivery of
SMS&MMS as strongly agree, 46% are agree, 28% are neutral and 6% are disagree.
From this analysis the majority of respondents are agreed the opinion about delivery of SMS&MMS with
46%.
27
TABLE 4.12 OPINION REGARDING CUSTOMER CARE&HANDLING COMPLINTS
Highly satisfied 6 12
Satisfied 29 58
Neutral 11 22
Dissatisfied 4 8
Highly dissatisfied 0 0
TOTAL 50 100
Source: primary data
NUMBER OF RESPONDENTS
70
60 58
50
40
30
22
20
12
10 8
0
0
HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATIFIED
INTERPRETATION
It is observed that 12% of respondents are highly satisfied with the opinion regarding customer care &
handling complaints, 58% of respondents are satisfied, 22% of respondents are neutral and 8% of
respondents are dissatisfied.
From this analysis the majority of respondents are satisfied the opinion regarding customer care & handling
complaints.
28
TABLE 4.13 NETWORK COVERAGE
NETWORK COVERAGE
12% 16%
strongly agree
agree
28% neutral
disagree
strongly disagree
44%
INTERPRETATION
It is observed from the above table that 16% of the respondents are strongly agree that good network
coverage of service, 44% of respondents are agreed, 28% of respondents are neutral, 12% of respondents are
disagreed.
From this analysis majority of respondents are agreed the opinion of good network coverage.
29
TABLE 4.14 OPINION REGARDING RECHARGE & DENOMINATIONS
50
40
30
54
20
34
10
8 4
0
VERY GOOD GOOD NEUTRAL BAD VERY BAD
INTERPRETATION
It is observed that 8% of respondents are very good opinion regarding recharge and denominations, 54% of
respondents are good opinion, 34% of respondents are neutral opinion and 4% of respondents are bad opinion.
From this analysis majority of respondents are good opinion regarding recharge and denominations.
30
TABLE 4.15 OPINION REGARDING CALL CHARGES PER MIN/ SEC
Good 27 54
Neutral 12 24
Bad 6 12
Very bad 0 0
TOTAL 50 100
Source: primary data
12% 10%
very good
good
24% neutral
bad
INTERPRETATION
It is observed that 10% of respondents are very good opinion regarding call charges per min/sec, 54% of
respondents are good opinion, 24% of respondents are neutral opinion and 12% of respondents are bad
opinion.
From this analysis the majority of respondents are good opinion regarding call charges per min/sec.
31
TABLE 4.16 OFFER OF TELECOM SERVICE PROVIDER
NUMBER OF RESPONDENTS
4% 10%
10%
strongly agree
agree
20% neutral
disagree
strongly disagree
56%
INTERPRETATION
The above table shows that 10% of respondents are strongly agree the statement of offer of telecom service
providers are highly satisfied, 56% of respondents agreed, 20% of respondents are neutral, 10% of
respondents are disagreed and 4% of respondents are strongly disagreed.
From this analysis the majority of respondents are agreed with 56%.
32
TABLE 4.17 SATISFACTION OF NETWORK COVERAGE
NUMBER OF RESPONDENTS
6% 10%
14% highly satisfied
satisfied
neutral
18% dissatisfied
52% highly dissatisfied
INTERPRETATION
It is observed that 10% of respondents are highly satisfied the network coverage, 52% of respondents
satisfied, 18% of respondents are neutral, 14% of respondents are dissatisfied and 6% of respondents are
highly dissatisfied.
From this analysis the majority of respondents are satisfied the network coverage of telecom service.
33
TABLE 4.18 SATISFACTION OF SECURE PROVIDED WITH THE TELECOM OPERATOR
NUMBER OF RESPONDENTS
2% 8%
highly satisfied
satisfied
44% neutral
46% dissatisfied
highly dissatisfied
INTERPRETATION
It is observed that 8% of respondents are highly satisfied the secure provided with the telecom operator,
46% of respondents are satisfied, 44% of respondents are neutral and 2% of respondents are dissatisfied.
From the above data majority of respondents are satisfied the secure provided with the telecom operator.
34
4.19 FACTORS THAT MAY HAVE INFLUENCED TO DECIDE TELECOM SERVICE
Agree 25 50 23 46 18 36 15 30
Neutral 9 18 13 26 18 36 13 26
Disagree 1 2 1 2 2 4 12 24
Strongly 2 4 0 0 2 4 3 6
disagree
TOTAL 50 100 50 100 50 100 50 100
FIGURE 4.19 FACTORS THAT MAY HAVE INFLUENCED TO DECIDE TELECOM SERVICE
a) Brand image
2% 4%
18% 26%
50%
INTERPRETATION
From the above data 26% of respondents are strongly agreed the opinion of brand image while selecting
the telecom service, 50% of respondents are agreed, 18% of respondents are neutral, 2% of respondents are
disagree and 4% of respondents are strongly disagreed.
35
It is analyzed that majority of respondents are agreed the opinion regarding brand image that may have
influenced to decide telecom service.
b) Advertisement
2%
26% 26%
46%
INTERPRETATION
It is observed that 26% of respondents are strongly agreed the opinion of advertisement while selecting the
telecom service, 46% of respondents are agreed, 26% of respondents are neutral and 2% of respondents are
disagreed.
From this analysis the majority of respondents are agreed the opinion regarding advertisement that may have
influenced to decide telecom service.
36
c)0ffer
4% 4% 20%
36%
36%
INTERPRETATION
It is observed that 20% of respondents are strongly agreed the opinion of offers while selecting the telecom
service, 36% of respondents are agreed, 36% of respondents are neutral, 4% of respondents are disagreed
and 4% of respondents are strongly disagreed.
It is observed that majority of respondents are two opinion regarding offers that may influenced to decide
telecom service. That is 36% of respondents are agreed and neutral opinion.
37
d) Value added service
6% 14%
24%
30%
26%
INTERPRETATION
It is observed that 14% of respondents are strongly agreed the opinion of VAS while selecting the telecom
service, 30% of respondents are agreed, 26% of respondents are neutral, 24% of respondents are disagreed
and 6% of respondents are strongly disagreed.
From this analysis majority of respondents are agreed the opinion regarding VAS that may have influenced
to decide telecom service.
38
TABLE 4.20 SATISFACTION OF NEWLY REVISED TELECOM CHARGES
NUMBER OF RESPONDENTS
12% 8%
highly satisfied
satisfied
28%
neutral
32%
dissatisfied
highly dissatisfied
20%
INTERPRETATION
It is observed that 8% of respondents are highly satisfied the newly revised telecom charges, 28% of
respondents are satisfied, 20% of respondents are neutral, 32% of respondents are dissatisfied and 12% of
respondents are highly dissatisfied.
From this analysis majority respondents are dissatisfied the newly revised telecom charges.
39
FINDINGS
SUGGESTIONS
• It is an important matter that each provider wants to consider the customers fairly
• Improve the customer care development services as the customer care services are the pillars which
play a very vital role in the cellular service
• Provide periodical offers to customers
40
CONCLUSION
This study was conducted in satisfaction and preference of customers. Now in this competing world,
there are so many customers and telecom providers, so whatever may be the industry or firm the satisfied
customers are the greatest asset for them. VI, JIO, BSNL& AIRTEL are the leading companies in providing
cellular service in India. Customer preference is more towards , Jio, VI, Bsnl and Airtel respectively. The
service quality provided by each service providers is different. Now the newly revised telecom charges are
more dissatisfied the customers.
The customers are satisfied on the security provided with the telecom operator. Brand image and
advertisement are the factors which may have influenced the customers to choose telecom service. The
customers are satisfied with the quality service provided by basic and cellular service mobile providers.
41
BIBILIOGRAPHY
BOOKS
WEBSITES
• www.google.com
• www.vi.com
• www.jio.com
• www.airtel.com
• www.bsnl.com
• www.wikipedia.com
42
A STUDY ON CUSTOMER SATISFACTION AND PREFERENCE TOWARDS
PREPAID TELECOM SERVICE PROVIDERS WITH SPECIAL REFERENCE TO
NELLAYA PANCHAYATH
QUESTIONAIRE
A study on Satisfaction and Preference towards prepaid telecom service provide with special reference to
Nellaya Panchayath
1. Name :
2. Gender :M F
8. Which Service are more to you while though using your telecom service?
Call Rate SMS Internet Network Value added services
9. How long you have been using the services at current telecom operator?
< 1 month 1-6 months 6 months -1 year
1-2 year more than 2 year
43
JIO VI BSNL AIRTEL
12. Delivery of SMS, MMS, Voice message & other services are possessing high quality
Strongly agree Agree Neutral Disagree strongly disagree
13. In your opinion, customer care & handling complaints of customer are highly satisfied
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
15. Hoe economical is the use of your telecom service in terms of recharge and denominations
Very good good Neutral Bad very bad
17. The offer of the telecom service providers are highly satisfied
Strongly agree Agree Neutral Disagree strongly disagree
19. Overall tell us how much you are satisfied the secure provided with your telecom operator
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatified
20. Please put a tick mark on factor that may have influenced you to decide your telecom operator
21. Are you satisfied with the newly revised telecom charges
Highly satisfied satisfied Neutral Dissatisfied Highly dissatisfied
44