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Heartfelt thanks to those who support me……………

Here I am in the quandary of where to begin in thanking people. I realizethat I am indebted to so many people who encouraged me and share their knowledge. I am grateful to all.

Our topic of the report was “CONSUMER BEHAVIOR REGARDING GSM CELLULAR PHONES V/S CDMA CELLULAR PHONES ”. I thoroughly enjoyed withmany fine people of Una, Nangal, Santoshgarh,

I highly thankful to Dr. Anoop K Sharma (Sr. Lecturer in Commerce) for their moral support that influences us in the completion of the report.

I appreciate the contribution of each and hope that I am accurately incorporatedtheir considerable knowledge.

Last but not the least I am also thankful to our parents and friends who provided mewith their full cooperation for successfully completion of my project.

And I thank “The Almighty ” who is always with me. 

RajniKumari

 

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PREFACE 

I am lucky that I got an opportunity for making the project report on Telecommunication companies from my own interest. Case study has been carriedout to study the present scenario of the CDMA technology. I visited the variousconcerns for two months and prepare our project report on the topic“CONSUMER BEHAVIOUR REGARDING GSM CELLULAR PHONES V/SCDMA CELLULAR PHONES” and the study is divided into various chapters toget knowledge. I also considered some published material on the particular topicas well as about the concern. This helps me in boosting up my confidence anddetermination, which will help me to face the situation in coming years.

This report is written account of what I learnt and experienced during my survey.I wish, those going through it will not only find it readable but also get as usefulInformation.

The main limitation that I experienced was that I did not get the full and correctInformation from the market, as many of the respondents did not answer to myQuestionnaire correctly completely.

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TABLE OF CONTENTS

 

Page No.a)   Acknowledgement (i)

  b) Preface

c) Introduction to GSM (iv)

d) 1.1 Meaning of GSM (5)

e) 1.2 History of GSM (6)

f) 1.3 GSM Growth in India (11)

g) 1.4 GSM (Players in Punjab) (16)

h) Introduction to CDMA (25)

i) 2.1 Meaning of CDMA (26)

  j) 2.2 History of CDMA (27)

k) 2.3 CDMA Segment Overview (28)

l) 2.4 CDMA Growth Drivers (29)

m) 2.5 CDMA Operators (31)

n)   3 SWOT Analysis of Telecom Industry (39)

o) 4 Growth of GSM & CDMA till 2007 (41)

  p) 5.1 Objective of Research (43)

q) 5.2 Scope of the Study (44)

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r) 5.3 Research Methodology (45)

s) 5.4 Analysis and Interpretation (47)

t) 5.5 Conclusion based on survey conducted (59)

u) 5.6 Recommendation (60)

v) 5.7 Limitation of the study (62)

w) Bibliography

x) Annexure

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List of Charts

Chart no. Heading Page no.

1.   GSM growth in India 13

2.   CDMA operator subscriber Base 32

3. Growth of GSM & CDMA Till 2007 43

4.   Comparative Analysis of Mobile Subscriber 49-59

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INTRODUCTION

 TO

 THE TELECOM

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INDUSTRY

Introduction

 To

GSM

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(Global System for Mobile)

Chapter – 1.1

Meaning of G.S.M

(Global System for Mobile)

The Global System for Mobile Communications (GSM: originally from Grouped

Special Mobile) is the most popular standard for mobile phones in the world.

GSM service is used by over 2 billion people across more than 212 countries and

territories.[1] [2]  the ubiquity of the GSM standard makes international roaming 

very common between mobile phone operators, enabling subscribers to use their 

phones in many parts of the world. GSM differs significantly from its

predecessors in that both signaling and speech channels are Digital call quality,

which means that it is considered a second generation (2G) mobile phone

system. This fact has also meant that data communication was built into the

system from the 3rd Generation Partnership Project (3GPP).

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Chapter1.2

History of GSM

The development and success of GSM has been an outstanding example of 

international enterprises in action. Below you will find a brief history of GSM,

describing how it all comes about and how the Association was born, has grown

and evolved. We also include the many people who contribute to the

association’s tremendous growth and highlight the major achievements and

milestones along the way. This history is complete from 1987 through 1997, a

further update will be available in due courses.

The ultimate out come of the battle for dominance between these two competing

cellular data transmission technologies may lie more in their history then their 

respective merits ton understands the current prevalence of GSM, one need of a

foundation in the forces that converged to push one technology ahead of their 

other.

One of the most contentions battles being waged in the wireless infrastructure

industry is the debate over the efficient use and allocation of finite airwaves. For 

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several year, the word’s two methods –Code Division Multiple Access (CDMA)

and Global System for Mobile Communications (GSM) –have divided the

wireless world into opposing camps Ultimately, the emergence of a

CDMA is relatively new, and the network is not as mature as GSM.

CDMA cannot offer antinational roaming, a large GSM advantage.

The Euro-Asian alternative: GSM

Analyst consider Qualcomm’s major competitive disadvantage to be its lack of 

access to the European market now controlled by global system for mobile

communications (GSM). The wireless world is now divided into GSM ( much of 

western Europe ) and CDMA ( north America and parts of Asia ).

Bad timings may have prevented the evolution of one, single global wireless

standard. Just two years before CDMA’s 1995 introduction in Hong Kong,

European carriers and manufacturers chose to support the first available digital

technology – Time division multiple access (TDMA). GSM uses TDMA as its core

technology. Therefore, since the majority of wireless users are in Europe and

Asia, GSM has taken the worldwide lead as the technology of choice.

Mobile handset manufacturers ultimately split into two camps, as Motorola, lucent

and Nextel chose CDMA, and Nokia and Ericsson eventually pushed these

companies out and dominant GSM players.

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Advantages of GSM:

• GSM is already used worldwide with over 450 million subscribers.

• International roaming permits subscribers to use one phone throughout

Western Europe. CDMA will work in Asia, but not France, Germany, the

U.K. and other popular European destinations.

• GSM is mature, having started in the mid-80s. This maturity means a

more stable network with robust features. CDMA is still building its

network.

• GSM’s maturity means engineers cut their teeth on the technology,

creating an unconscious preference.

• The availability of subscriber identity modules, which are smart card that

provide secure data encryption give GSM m-commerce advantages.

GLOBAL SYSTEM FOR MOBILE (GSM) TELEPHONY

SOME SALIENT FEATURES:

GSM has the highest cellular mobile subscriber base, worldwide (76%)

crossed one billion in Feb. 2004. one billion of the worlds 1.5 billion of mobile

phones are of the GSM system (fixed phones world-wide are 1.2 billion).

GSM services are available in 206 countries with a total of 616 GSM

networks.

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In India, we have 73 GSM networks in 2000 stations with 26-million

subscriber base (by 2005, total mobile connections are likely to exceed total

fixed line connections in India). A total of 360 billion short message services

(SMS) messages were sent through GSM networks in the year 2002.

Advantages of GSM

•

GSM is mature; this maturity means a more stable network with robustfeatures.

• Less signal deterioration inside buildings.

• Ability to use repeaters.

• Talktime is generally higher in GSM phones due to the pulse nature of transmission.

• The availability of Subscriber Identity Modules allows users to switchnetworks and handsets at will.

• GSM covers virtually all parts of the world so international roaming is not aproblem.

• The much bigger number of subscribers globally creates a better networkeffect for GSM handset makers, carriers and end users.

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• Tools for unlocking GSM phones are widely available. Meaning it is easier to keep the same phone and go with another carrier using the sametechnology.

GSM Overall Efficiency

For Subscriber For operators

13

Low cost

Entry Handset

Wide

Choice and

availability of handset

Internal

Roaming

Easy

Subscription

Economies of 

scale due to

dominant market

share in India

Choice of 

multiple vendors

Capex

optimization

Lower 

subscriber 

acquisition cost Seamless

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Chapter – 1.3GSM Growth In India

 

The subscriber growth saw a phenomenal increase from 2002 onwards. This was

Mainly due to lowered call tariffs and full-scale implementation of SMS servicesall over India. December 2002, where India touched the 10 million mark could beDefined as a milestone for Indian wireless industry.

Subscriber growth continued from 2002-03 and there were close to 22 millionSubscribers as of December 2003.

Two main elements for this phenomenal growth are 1. Lowered call tariffs & 2.

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Free incoming calls Consumers who were once reluctant to subscribe to mobilesubscriptions founded feasible and convenient to avail as now there was hardlyany difference between the monthly bills compared to fixed line, and mobility wasdefinitely a crucial element.

The above phenomena in India is taking shape because of the presence of hugeMiddle class population. On an estimate there are some 300 to 350 millionpeople belonging to this group in India. Unlike a car or a television set (whereone is enough in the family) with the lowered call tariffs it became possible evenfor family members to own a mobile phone each.

GSM OPERATOR- BHARTI

• Brand Name: AIRTEL

• Network: GSM 900, 1800, GPRS, EDGE

• Network Coverage: 17 Telecom circles

• Subscriber base: 7,062,443 (May 2004)

• Market Share: 26%

• ARPU (Mar. 03-04): 8,4 €

• Subscriptions: Post Paid, Pre Paid

Bharti was the first mobile operator operational in India. India’sfirst GSM based phone call was made on Airtel network.

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HUTCHISON TELECOM

• Brand Name: HUTCH

• Network: GSM 900, GSM 1800, GPRS, EDGE

• Network Coverage: 14 Telecom Circles

• Subscriber base: > 5 million

• Market Share: 20%

• ARPU (Mar. 03-04): 9,9 Euro (Highest in GSM segment)

• Subscriptions: Post Paid, Pre Paid

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SPICE

• Brand Name: SPICE

• Network: GSM 900, 1800, GPRS, EDGE

• Network Coverage: 2 Telecom circles

• Subscriber base: < 4 million

• Market Share: 10%

• ARPU (Mar. 03-04): 8,05

• Subscriptions: Post Paid, Pre Paid

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BSNL Mobile

• Brand Name: BSNL

• Network: GSM 900, 1800, GPRS

• Network Coverage: 22 Telecom circles

• Subscriber base: < 2 million

• Market Share: 29%

• ARPU (Mar. 03-04): 7,85

• Subscriptions: Post Paid, Pre Paid

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Chapter -1.4

GSM ( Global System for Mobile communication ) Player in

Punjab.

AIRTEL

BSNL

HUTCH

SPICE

1.AIRTEL:

“ As we spread wings to expand our capabilities and explore new horizons, the

fundamental focus remains unchanged: seek out the best technology in the world

and put it at the service of our ultimate user: our customer. ” 

Sunil Bharti Mittal (Chairman and Group Managing Director)

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Bharti Tele-ventures limited was incorporated on July 7,1995 for promoting

investments in telecommunications services. Its subsidiaries operate telecom

services across India. Bharti Tele-ventures is India’s leading private sector 

provider of telecommunications services based on a strong customer base

consisting of approximately 9.46 million total customers which constitute,

approximately 8.7 million mobile and approximately 765,000 fixed line customers

as of September 30,2004.

Business strategy:

Bharti Tele-ventures strategic objective is “To capitalize on the growth

opportunities that the company believes are available in the Indian

telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a

focus on providing mobile services.” The company has developed the following

strategies to achieve its strategic objective:

• Focus on maximizing revenue and margins.

• Capture maximum telecommunications revenue potential with minimum

geographical coverage.

• Offer multiple telecommunications services to provide customers with a “

one-stop shop ” solution.

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• Position itself to tap data transmission opportunities and offer advanced

mobile data services.

•

Focus on satisfying and retaining customers by ensuring high level of 

customer satisfaction.

• Leverage strengths of its strategic and financial partners; and

• Emphasize on human resources development to achieve operational

efficiencies.

Businesses:

Bharti Tele-ventures current businesses include

• Mobile services

• Fixed line

• National and international long distance services

• V-SAT, internet services and network solutions

Competitive strengths:

Bharti Tele-ventures believes that the following elements will contribute to the

company’s success as an integrated telecommunication services provider in

India and will provide the company with a solid foundation to execute its business

strategy:

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• Nationwide footprint – as of September 30,2004, approximately 95% of 

India’s total mobile subscribers resided in the company’s seventeen

mobile circles. These 17 circles collectively accounted for approximately

56% of India’s landmass.

• Focus on telecommunications to enable the company to better anticipate

industry trends and capitalize on new telecommunications related

business opportunities.

•

The strong brand name recognition and a reputation for offering high

quality service to its customers.

• Quality management team with vision and proven execution skills.

2. SPICE :

Spice telecom the brand name of spice communications limited is presently

operating cellular phone services in the states of Punjab and Karnataka.

Considered as one of the best providers of mobile telephony in India, spice is a

51:49 joint venture between spice corp. (India) – the flagship company of M-corp.

Global group that first introduced India to mobile phone services and has

interests in the field of telecommunications, office automation and information

technology and DISTACOM (Hong Kong) a company with over 20 years of 

experience in mobile communication which was responsible for bringing mobile

telephony to Hong Kong along with Hutchison telecom.

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Operations:

Launched over six years ago under the brand name of “ spice “ the company’s

cellular services have already built up a strong customer base of over 7,00,000 in

two of India’s most challenging and lucrative markets – Punjab and Karnataka.

During the course of time spice has assumed the position of a market leader in

both the circles of its operation. In both the circles spice retains its leadership

position and continues to grow at a fast pace. Recently, spice Punjab added

another feather in its cap by being declared the number one operator for having

the highest number of international roaming partnerships in over 169 countries.

During the course of time spice has assumed the position of a market leader in

both the circles of its operation. In both the circles spice retains its leadership

position and continues to grow at a fast pace. Recently, spice Punjab added

another feather in its cap by being declared the number one operator having the

highest number of international roaming partnerships in over 169 countries.

Today, spice has distribution strengths of over 5000 retail points in every comer 

of Punjab. Spice has further introduced innovative tariff packages tailor – made

to extend its reach to more than 5,00,000 subscribers in Punjab, covering 93% of 

urban population, with support from a strong operational and billing network.

In Karnataka spice has undertaken a large cellular infrastructure project that

involves an 1100 km optic fiber cable backbone catering to the needs of 

customers all over the state. The company’s roll out plan is on target as it has

covered 90% of district headquarters within a span of four years of operation. At

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present the service is operational in 46 key towns / cities with coverage of more

than 900 villages.

Work force and investment:

The company has a consolidated workforce of around 240 employees from

diverse educational and cultural backgrounds. Out of these 60% are

professionally qualified.

Spice has invested a sum of Rs. 1,616 crores on its operations in Punjab.

3. HUTCH:

Hutchison telecom, one of the world’s leading cellular service providers, brings

hutch to you. We are known for our innovative approach and world-class

technology. Our goal is to provide you superior products and services, anytime

and anywhere.

Corporate profile:

Hutchison established its presence in India in 1994, through a joint venture with

max India limited. In 1995, Hutchison max telecom became the first operator in

India to launch its cellular service.

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Today, Hutchison is the one of the largest providers of cellular services in India

with presence in all the major regions – orange in Mumbai and hutch in Delhi,

Karnataka, Andhra Pradesh, Chennai, Kolkata, Gujarat, Haryana, Rajasthan, UP

(E), UP (W), rest of Bengal and Punjab.

It is also the country’s largest roaming operator, with a more extensive network in

India and around the world than any other operator.

It is a part of the Hong Kong based multinational conglomerate Hutchison

Wampum limited, a fortune 500 company, and one of the largest companies

listed on the Hong Kong stock exchange. Its operations span 41 countries across

the Asia pacific region, Europe and the Americas. Hutchison affiliates jointly

account for the largest number of cellular subscribers in India numbering over 6

million.

4. BSNL :

On October 1, 2000 the department of telecom operations, Government of India

became a corporation and was christened Bharat Sanchar Nigam Limited

(BSNL). Today, BSNL is the No. 1 telecommunications company and the largest

public sector undertaking of India with authorized share capital of $ 3600 million

and net worth of $ 13.85 billion. It has a network of over 45 million lines covering

5000 towns with over 35 million telephone connections. With largest digital

switching technology like OCB, EWSD, AXE-10, FETEX, NEC etc. and

widespread transmission network including SOH system up to 2.5 gbps.

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DWDM system up to 80 gbps, web telephony, DIAS, VPN, Broadband and more

than 4,00,000 data customers, BSNL continues to serve this great nation its

responsibilities include improvement of the already impeccable quality of telecom

services, expansion of telecom network, introduction of new telecom services in

all villages and instilling confidence among its customers.

BSNL has managed to shoulder these responsibilities remarkably and deftly.

Today, with over 45 million line capacity, 99.9% of its exchange digital, nation

wide network management & surveillance system (NMSS) to control telecom

traffic and over 4,00,000 route kms of network, Bharat Sanchar Nigam Ltd. Is

name to reckon with in the world of connectivity. Along with its vast customer 

base, BSNL’s financial and asset bases too are vast and strong. Consider the

figures, as they speak volumes on BSNL’s standing:

• The telephone infrastructure alone is worth about Rs. 1,00,000 crore (US

$ 21.2 billion)

• Turnover of Rs. 25,000 crore (US $ 5.2 billion)

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CONCLUSION:

Conclusion of the topic is that maturity of customers is using Airtel services

because of its good network coverage availability and reliability of services and

effective Customers care support. I also come to know that majority of people

have post paid connection because there is no any hidden cost involved in it.

Mostly customers have facing the problem with companies Airtel, Spice, Hutch,

and BSNL because of their network problem faced by them. Distortion and delay

in value added services from these reasons customers are not using these

services. Mostly customers have considered Airtel is one of the best services

provided in Himachal & Punjab Zone because other fast and efficient services.

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INTRODUCTION

 TO

CDMA

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(Code division multiple access)

 

Chapter – 2.1Meaning of C.D.M.A

(Code division multiple access)

Code division multiple access (CDMA) is a form of multiplexing and a method of 

multiple access that divides up a radio channel not by time, nor by frequency 

(as in frequency-division multiple access), but

instead by using different pseudo-random code sequences for each user. CDMA

is a form of "spread-spectrum" signaling, since the modulated coded signal has a

much higher bandwidth than the data being communicated.

CDMA also refers to digital cellular telephony systems that make use of this

multiple access scheme, such as those pioneered by Qualcomm, and W-CDMA 

by the International Telecommunication Union or ITU.

CDMA has been used in many communications and navigation systems,

including the Global Positioning System and in the OmniTRACS satellite system

for transportation logistics.

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Chapter 2.2History of CDMA

Code Division Multiple Access (CDMA) is both a modulationAnd multiple access schemes.

Researches started even from 1950’s

Claude Shannon and Robert Pierce had provided CDMAframework in 1949.

De-Rosa-Rogoff defined the direct sequence spread spectrummethod in 1950.

Rake receiver was first patented by Price and Green in 1956Cellular spread-spectrum application was suggested by Cooper and Nettleton in 1978.

IS-95, the narrow band CDMA mobile network, has beenstandardized in 1993 and commercial networks were introducedin 1995.

3G wideband CDMA systems, such as CDMA2000 in U.S. andEuropean WCDMA developed from 1990s and still ongoing.

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Chapter 2.3CDMA Segment overview

• Present Standard: CDMA 2000 1x

• Started in March 2003

• Offered by 6 operators

• LG and Samsung hold majority deviceMarket share

• Streaming media options

• Always on internet connectivity @ 114 kbps

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Chapter 2.4

CDMA growth drivers

• Nationwide roaming

• Bundled internet facility

• CDMA phones come with a

data port where consumerscan connect to internet at14kbps

• Easy subscription availability,starting from Euro 10 only

• Huge variety of content

• Online bill view

• SMS based service activations

• Aggressive launch

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There was a big debate in India just before the launch of CDMA services that willit

Succeed or not? Recent trends reveal that CDMA is here to stay, but that doesn't

mean that it is going to overpower GSM.

Nationwide roaming helped to boost subscribe base, option of connecting tointernet using a simple data cable proved as a catalyst in promoting CDMAservices in India.

The call tariffs over CDMA were initially lower as compared to GSM but todayCDMA and GSM call tariffs are moreover same.

The calls are tariffed again on the distance parameter, which is already explainedearlier.

Reliance Infocomm was the first private operator to start with the CDMA servicesin India. However, BSNL and MTNL offered CDMA before Reliance they wereunable to tap subscribers.

Reliance’s strategic alliance with LG and Samsung to offer their handsets alongwith their subscriptions proved to be a catalyst in the process. Tata Indicomm,which was the second private operator to offer CDMA services initially, failed toattract consumers but since early 2004, it has revived its strategy and has beenable to gain some market share.

6414047

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  Reliance TATA

CDMA Operator Subscriber Base

Chapter 2.5CDMA OPERATERS

CDMA Operators – RELIANCE

• Brand Name: RIM- Reliance India Mobile

• Network: CDMA 2000-1x

• Network Coverage: 18 Telecom circles

• Subscriber base: > 6,8 million

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• Market Share: 80%

• ARPU (Mar. 03-04): Euro 13

• Subscriptions: Post Paid, Pre Paid

Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for aplace in the global fortune 500 lists the achievement is even more significant dueto the fact, that the entire growth was achieved in an organic manner and in a

span of just 25 years.

Dhuribhai was not just firmly rooted in traditional Indian values, but was also aquintessentially modern man – the man of the new millennium. This was clearlyreflected in his passion for mega-sized projects, the most advanced technologyand highest level of productivity.

The corporate philosophy he followed was short simple and succinct- “Think big.Think differently. Think fast. Think ahead. Aim for the best.” He inspired theReliance team to do better than the best not only in India but also in the world.

Dhirubhai Ambani, Founder & Chairman of the Reliance Group, had an acutesense that education alone empowers people. He was the great communicator.He communicated to inspire, to guide, to educate and to motivate.

He employed telephone as a powerful tool to achieve these goals. He usedtelephone to defeat distance, to compress time and to remain abreast of events.He was acutely aware of the power of information and communication. He would

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often say: “make the tool of infocomm available to people at an affordable cost,they will overcome the handicaps of illiteracy and lack of mobility.”

He wanted a telephone call to be cheaper than a postcard. This, he believed,would transform every home, empower every Indian, remove the roadblocks to

opportunity and demolish the barriers that divide our society.

Dhuribhai Ambani was of the conviction that infocomm would energizeenterprises, galvanize governance, make livelihood an enjoyment, learning anexperience, and living an excitement.Reliance infocomm is a fascinating outcome of this conviction. It is a major initiative to translate his inspiring dream into reality.

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INFOCOMM BUSINESS

Reliance Infocomm will offer a complete range of telecom services, coveringmobile and fixed line telephony including broadband, national and internationallong distance services, data services and wide range of value added servicesand application that will enhance productivity of enterprises and individuals.

Reliance India Mobile, the first of infocomm`s initiatives was launched onDecember 28, 2002 the 70th birthday of the Reliance group founder, Sh.

Dhirubhai H. Ambani.

This makes the beginning of Reliance’s dream of ushering in the digital revolutionin India by becoming a major catalyst in improving quality of life and changing theface of India. Its aim to achieve this by putting the power of information andcommunication in the hand of the people of India at affordable costs.

Reliance Infocomm will extend its efforts beyond the traditional value chain todevelop and deploy telecom solution for India’s farmers, businesses, hospitals,government and public sector organizations.

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The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's

largest business house with total revenues of over Rs 99,000 crore (US$ 22.6billion), cash profit of Rs 12,500 crore (US$ 2.8 billion), net profit of Rs 6,200crore (US$ 1.4 billion) and exports of Rs 15,900 crore (US$ 3.6 billion).

The Group's activities span exploration and production (E&P) of oil and gas,refining and marketing, petrochemicals (polyester, polymers, and intermediates),textiles, financial services and insurance, power, telecom and infocom initiatives.The Group exports its products to more than 100 countries the world over.Reliance emerged as India's Most Admired Business House, for the thirdsuccessive year in a TNS Mode survey for 2003.

Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Groupcontributes nearly 10% of the country's indirect tax revenues and over 6% of India's exports. An investor family of over 3.1 million - India’s largest, trustsreliance.Reliance Industries Ltd. - India's largest private sector company

Reliance Industries Limited (RIL) is India's largest private sector company on allmajor financial parameters with gross turnover of Rs 74,418 crore (US$ 17billion), cash profit of Rs 9,197 crore (US$ 2.1 billion), net profit of Rs 5,160 crore(US$ 1.2 billion), net worth of Rs 34,452 crore (US$ 7.9 billion) and total assetsof Rs 71,157 crore (US$ 16.3 billion).

RIL emerged as the only Indian company in the list of global companies thatcreate most value for their shareholders, published by Financial Times based ona global survey and research conducted by Price water house Coopers in 2004.RIL features in the Forbes Global list of world's 400 best big companies and inFT Global 500 list of world's largest companies.

RIL emerged as the 'Best Managed Company' in India in a study by BusinessToday and A.T. Kearney in 2003. The company emerged 'India's biggest wealthcreator' in the private sector over a 5-year period in a study by Business Today -Stern Stewart in 2004.RIL alone accounts for:17 per cent of the total profits of the private sector in India7 per cent of the profits of the entire corporate sector in India6 per cent of the total market capitalization in IndiaWeightage of 15 per cent in the BSE SensexWeightage of 12 per cent in the Nifty Index.

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One out of every four investors in India is a Reliance shareholder. With globallycompetitive capital and operating cost positions, Reliance Group dominates therapidly growing Indian market deriving over 80% of its revenues from thedomestic market.

RTL provides Cellular Services in 7 Telecom Circles encompassing 20 States of India and two UTI. RTL's subscriber in India are more than 14389967 up to Jan2006

International Roaming was implemented from 1st December 2003 in all RTLcircles, except Assam and North East where there is a restriction on internationalroaming. Roaming with more than 300 operators across the globe has beenopened up through sponsor network using the signaling and billing solution fromRoam ware.

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TATA INDICOM

• Brand Name: TATA or TATA Indicom

• Network: CDMA 2000-1x

• Network Coverage: 6 Telecom circles

• Subscriber base: > 2 million

• Market Share: 8 – 10%

• ARPU (Mar. 03-04): Euro 10-12

• Subscriptions: Post Paid, Pre Paid

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TATA INDICOM

Tata Teleservices is part of the INR 64,350 Crore (US$14.3 billion) Tata Group,that has over 90 companies, over 210,000 employees and more than 2.16 millionshareholders. With an investment of over INR 9,000 Crore (US$ 2 billion) inTelecom, the Group has a formidable presence across the telecom value chain.The Tata Group plans an additional investment of around INR 9000/- Crore (US$2 billion) in this sector in the next two years.

Tata Teleservices spearheads the Group's presence in the telecom sector.Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobileservices in India with the Andhra Pradesh circle.

Starting with the major acquisition of Hughes Tele.com (India) Limited [nowrenamed Tata Teleservices (Maharashtra) Limited] in December 2002, thecompany has swung into expansion mode. Tata Teleservices operates in 20circles i.e. Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra,Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, HimachalPradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, MadhyaPradesh and West Bengal. The company has a customer base of over 3 million.The investment in the company as of March 2004 totals INR 5995 Crore (US$1200 million).

Having pioneered the CDMA 3G1x technology platform in India, TataTeleservices has established a robust and reliable telecom infrastructure thatensures quality in its services. It has partnered with Motorola, Ericsson, Lucentand ECI Telecom for the deployment of a reliable, technologically advanced

network.

The company, which heralded convergence technologies in the Indian telecomsector, is today the market leader in the fixed wireless telephony market with acustomer base of 1.8 million.

Tata Teleservices' bouquet of telephony services includes Mobile services, FixedWireless Phones, Public Booth Telephony, and Wireline services. Other servicesinclude value added services like voice portal, roaming, post-paid Internetservices, 3-way conferencing, group calling, Wi-Fi Internet services and dataservices.

Tata Teleservices has recently, marked its entry into the Prepaid segment bylaunching 100 % Sacchai True Paid, across all its existing 20 circles. With thelatest initiative, Tata Indicom has opened up new frontiers for the Indian prepaidcustomers by offering 1-second pulse and 100 % talktime on True Paid.

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The company will be shortly launching a new service for Corporate called Push-To-Talk™ (first across the world to partner with Qualcomm for BREW Chat). Thisservice will be available for the masses across the country. Tata Indicom hasalso launched a collection of 1000 mobile games one of the largest collections of mobile games in the world.

The company has launched prepaid FWP and public phone booths, newhandsets, expand Wi-Fi across public hotspots, new voice & data services suchas BREW games, picture messaging, polyphonic ring tones, interactiveapplications like news, cricket, astrology, etc.

Tata Teleservices has a strong workforce of 5500. The company is in theprocess of recruiting personnel for its new circles and will create more than20,000 jobs by March 2005, which will include 10,000 indirect jobs throughoutsourcing of its manpower needs.

Today, the company serves more than 3 million customers in over 824 towns.With an ambitious rollout plan both within existing circles and across new circles,Tata Teleservices will offer world-class technology and user-friendly services toover 1000 cities in 20 circles by March 2005.

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Chapter 3SWOT Analysis of Telecom Industry

Strengths

• Huge wireless subscriber potential

• Fastest growing mobile market in the world

• Consumers are ready to pay for cutting edge services

• Government proposes to hike FDI limit in Telecom to 74%

• Unified license regime

Weakness

• Lowest call tariffs in the world

• Market strongly regulated by Government body – Governingboth ISP and Telecom sectors

• Too many authorities ruling the sector 

• Huge potential for low end and cheap handsets

• Wide scale Consumer churn in Telecom and ISP

Wide spread VAS deployment is restricted due to language and

literacy problems

Primarily a voice based market

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Opportunity

• To offer value added services on GSM, CDMA and IP

• Language independent services

• Mobile Marketing concepts

• Content influenced buy local culture and Global success stories

• M-Commerce

• Unified messaging platforms

• Foreign investment in form of equity or technology

Threats

• Low cost service providers – no possibility of breaking even inshort term

•

Weak IPR protection

• Software and digital content Piracy

• Political instability

• Regulatory interference

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Chapter – 4Growth of GSM & CDMA Till 2007

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Chapter – 5.1Objective of the Research

To make a comparative study of GSM & CDMA mobile service inHimachal & Punjab as well as in India.

To study and analysis the positioning and strategy of leading serviceprovider of telecom industry in Himachal & Punjab.

To analysis the consumer perception about leading service provider of telecom industry.

To study and analysis the market share of Major player in serviceprovider.

To analysis the factor that affect in choosing the service.

To analysis the major services uses by consumer.

To analysis the Satisfaction level of consumer from there service provider.

To collect the suggestion of Consumer regarding there service provider.

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Chapter 5.2

Scope of the StudyScope defines the units to be covered and the practical implications of the study.To get good results there must be a specific area and a respondent to whichyours study is concerned. There fore we covered following areas for our study-

Una

Nangal

Santoshgarh

I met the peoples of all ages groups with any type of demographical profilesbecause mobile is today a service which is used by everyone for convenience of the study. I divided the respondents in following segments.

Students

Businessman

Serviceman

Youth

In the study we have included the following service provider-

GSM Airtel

BSNL

Hutch

Spice

CDMA

Reliance infocom

Tata indicom

The finding of the survey will be useful for the above mentioned serviceproviders. They will be able to know about where they stand in the market andhow to reposition themselves to gain a differential advantaged.

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Chapter – 5.3Research Methodology

Sampling Design

Sampling design is a definite plan, which is determined before any data are

actually collected for obtaining a sample from a given population. I have used

convenience-sampling techniques. In this type of sampling technique data is

collected as per the convenience of the researcher.

Sampling unit

A decision has to be taken concerning a sampling unit before selecting sample

sampling unit of my study includes

Students

Businessman

Serviceman

Youth

Sample Size

Sample size refers to the number of times to be selected from the universe to

constitute a sample. It should be optimum and must lead to the population so that

it leads to reliable results. In our study the sample size of respondent I have

150 peoples.

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Data Collection Method

I have used primary as well as secondary data in my study.

Primary Data to collect consumer’s response.

Secondary Data to study the positioning strategy of leading players in telecom

industry.

Data collection Instrument

A structured schedule was administered for primary data collection. For 

secondary data collection various magazines, newspapers and Internet were

used for study.

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Chapter – 5.4Analysis and interpretation

Q1. Do you have a mobile?

In my survey of 150 peoples I find that 96% people have mobile and rest of 4%have no mobile. So I can say that today all most people have mobile.

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Mobile Subscriber 

0

20

40

60

80

100

120

140

160

Yes No

Series1

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Q2. Which service you are using?

Market Share

GSM

94%

CDMA6%

GSM

CDMA

By the analysis of the market I come to know that 94% peoples are using GSM

Service. And the rest 4% using CDMA. So I can say that GSM is ruling our 

telecom market. About 60 million mobile subscribers as on July 2005, of which

47 million are GSM.

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Q3.(a) Which Companies service you are using?

Ans. In GSM service.

Airtel

38%

BSNL

12%

Hutch

33%

Spice

17%

Airtel

BSNL

Hutch

Spice

By the analysis of market I come to know that Airtel is leading in the market

with the market share of 38%. Hutch is at second place with the market share of 

33%. And the other two major players Spice and BSNL have market share of 

17% & 12% respectively.

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Q3.(b)Ans IN CDMA service……….

Reliance

67%

TATA

33%Reliance

TATA

In case of CDMA service provider in Punjab there are only two major player are

in the telecom market these are

Reliance with 67% share in the market.

TATA Indicom with 33% share in the market.

So I can say that Reliance is leading in the Punjab in CDMA market.

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Q4. Are you prepaid or postpaid user?

Prepaid is a big phenomenon in India. Although detailed statistics are notavailable

for each operator but on an estimate 60-70% of the subscribers (of all the

Operators) are prepaid customers. The reasons for prepaid being so successfulin India are:

•During the days when incoming calls were not free, it was difficult to control theIndividual expense limit which prepaid easily solved.

•To avail a postpaid connection one needed documentation like address proof etc.

•Roaming on prepaid further boosted the prepaid subscriber base.

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Pospaid & Prepaid Subscriber 

Prepaid

73%

Postpaid27%

Prepaid

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•Teenage users whose parents wanted them to exercise restrain, founded easier 

To give them prepaid connections.

•Retail channels earned good commission selling prepaid coupons to consumers

and therefore, they invested more on promoting prepaid.

Research Says

Prepaid mobile service in both case GSM & CDMA have a great share in the

market. In my research I have found that the 73% of the mobile are using the

Connection of prepaid basis and the rest 27% peoples are using the post paid

Connections. But one another thing I have find that those peoples are the

heavy user of the mobile is prefer to the CDMA connection.

Q5. Why you choose this service?

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Ans .

Factor Effect in chooseing A connection

18%

25%

17%

4%

5%

3%

17%

11%Cost

Service

Reg connReloded value

Choice

Advertisment

Friends

Family

There are many factors which affect the preference the preference of the

customer in choosing a particular mobile service these is the followingfactors.

Cost

ServiceRegular connectivityReloaded with fixed valueChoice of handsetAdvertisementFriends & peer groups

Among all these factors I have realized that the customer is affected most by

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the service of the service provider then after the cost customer gave preference

to the cost and then after this customer gave preference to the regular 

connectivity and there is also a big effect of friends & pear groups on customer 

choice. Other factor have also effect on the consumer choosing but they have

little bit less effective.

Q6.From how long you are using mobile service?

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Ans

0-3 3 to 6 6 to 12 More than 1

year 

Series1

In my survey I have find that the most of the peoples are using mobile from

more than one year.

Q7 Which service attract you more?Ans.

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Attrection in Services

34%

5%10%7%

12%

10%

3%4%

9% 6%

SMS

MMS

GPRS

Internet

Roam service

Tariff planVAS

Handset

Cus Care

Any Other 

As shown in this chart I have also studded that which service attract the

Customer more and we have found that the most liked service by the customer is

SMS service and the other services are also attract the customer like GPRS,

Roam service, Tariff plans, Customer care and Internet etc..

But other services like VAS, Handset choice less attract the customer.

Q8. Mark the point on scale indicating the overall satisfaction level?

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Ans.

C u s t o m e r S a t i s fa c t io

E xc elle n t G o od A ve r a g e P oo r V ery P oo r  

S c a l e s o f S a t i s fa

        V      a        l      u      e      s

S e r i e s

In the scaling of the satisfaction level i found the following results.

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1. Excellent

2. Good

3. Average

4. Poor  

5. Very Poor 

 

Chapter – 5.5

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CONCLUSION BASED ON SURVEY CONDUTED

“ Consumer is a king” 

Problem and complaints of Customers:

•  Problem relating to delivery:

Some customers face problems relating to delivery. The problem is non-time deliveryand because of that problem it put stress on customers to take info products of some other 

 brands.

•  Problem relating to replacement:

Some customer face problems relating to replacement of spare parts because of this theynever gives order of mobile to the main dealer or distributor, which will also affected the

goodwill of the distributor or dealer. And customers and distributors place the order of 

some other brands or switch to other technology cellular phones.

• Complaints relating to schemes:

Mostly customers have the same complaints regarding the schemes. Firstly, they don’t

get the information about new schemes of the products. Secondly, the schemes material isnot provided to them in time.

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Chapter – 5.6 .Recommendation 

There is a large untapped market which is around 55% of the total

population especially in rural market there fore the marketers should try to

penetrate the rural market. To cover the rural market marketers should

educate the rural peoples about the services, which are provided by the

service provider. And market should realized the rural peoples the need

and the benefits of the telecommunication so that they attract toward their 

services.

Most of the service user is prefer the best services and they shift to the

company, which provide them better service than other. So it is the big

weapon for the service provider that in order to increase their marketshare

they have to provide the more as well as better services than the other 

Competitors.

The other thing, which influences the service user more, is the cost of the

service. Indian consumer is very cost concisions and like to prefer the

Services which are more economical for them so service provider should

try to provide the services at the minimum cost.

The other thing I found that the family & friends of a consumer 

are also effects the choice of the consumer about choosing a particular 

Service of a service provider.

Advertisements have a huge effect on the perception of the consumer 

about the service of a particular service provider.

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Advertisement helps in creating a brand image of the company in the

mind of the consumer so it effect their choice about the service.

Other thing which I have found that the heavy user would like to prefer 

the post paid connection and the light user like to choose the prepaid

Connection.

I have also find that the GSM service in popular among peoples those

are using mobile for general purpose and the business class like to use

the CDMA mobile service.

SMS service is the most popular service among the mobile users and

other services like Roaming service, Tariff plans, customer care and

GPRS services are also very popular in the mobile users.

Present service user of mobile are looking almost satisfied from the

services that they are getting from their service provider.

The new tariff plans which are launched time to time by the telecom

companies are become very popular these days.

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Chapter – 5.7LIMITATIONS OF THE STUDY

The respondent may be biased while giving their views.

The project study is limited to Una, Nangal, and Santoshgarh and hencegeneralization of findings cannot be done.

It is difficult to measure, exactly, the advertisement effectiveness inquantitative term.

 

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BIBLIOGRAPHY

Principle of Marketing  B y Philip Kotler 

Research Methodology

- by C.R. Kothari

 Internet Websites

- www.goggle.com

- www.tataindicom.com

- www.relianceinfo.com

- www.hutch.co.in

- www.tekesindiamobilestudy.com

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A study on consumer response towards services provided

By GSM& CDMA mobile companies in Punjab

===============================================================

QUESTIONNAIRE

Name:

Age:

Occupation:

Phone No. :

Address:

1) Do you have a mobile?

YES

 NO

2) Which service you are using?

GSM

CDMA

3) Which companies service you are using?

GSM CDMAI. Airtel I. Reliance

II. BSNL II. TATA Indicom

III. HutchIV. Spice

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4) Are you prepaid or postpaid user?

5) Why you choose this service?

I. Cost

II. ServiceIII. Regular Connectivity

IV. Reloaded with fixed value

V. Choice of handset

VI. AdvertisementVII. Friends or Pear groups

VIII. Family

6) (A). How many members of your family are using Mobile?

(B). Which Service they are using?

GSM

CDMA

Both

7) From how long you are using Mobile service?

I. 0-3 Months

II. 3-6 Months

III. 6-12 Months

IV. More then one year 

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8) Which Service Attract you more?

I. SMS

II. MMS

III. GPRS

IV. Internet

V. Roaming Service

VI. Tariff Plans

VII. VAS (value added Service)

VIII. Handset

IX. Customer care

X. Any other 

9) Mark the point on scale indicating the overall satisfaction level?

Excellent Good Average Poor Very poor 

10) Any suggestion recommended by you?

-------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

[I thank you for your kind cooperation, valuable inputs and time]

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