MAJOR RESEARCH PROJECT

On

CUSTOMER ATTITUDE TOWARDS DIFFERENT VALUE ADDED SERVICES

OFFERED BY INDIAN TELECOME SERVICES PROVIDERS

For partial fulfillment of the requirement for the Degree of

Master of Business Administration (Full-Time)

Batch 2014-16

Submitted to: Submitted by:

Asst. Prof. Gagan Bhati Rohit Kumar Sharma

IBMR/IES/SOC, IPS ACADEMY

Rajendra Nagar, A.B. Road, Indore – 452012 (MP)

1

INDEX

PREFACE……………………………………………………………………………………Page no.3

CERTIFICATE OF FACULTY GUIDE…………………………………………………..Page no.4

STUDENT DECLARATION……………………………………………………………….Page no.5

ACKNOWLEDGEMENT…………………………………………………………………..Page no.6

TOPIC/RESEARCH PROBLEM

1- Introduction……………………………………………………………Page no.7

2- Details of Company\Topic

a) Background……………………………………………………….. Page no.9

b) History……………………………………………………………...Page no.10

3- Review of Literature………………………………………………….. Page no.13

4- Rationale of study…………………………………………………….. Page no.17

5- Objectives……………………………………………………………...Page no.18

6- Methodology………………………………………………………….. Page no.19

a) Research design

b) Sample design

c) Tools for data collection

d) Tools for data analysis

7- Questionnaire…………………………………………………………. Page no.21

8- Analysis & Interpretation of Results………………………………….. Page no.24

9- Findings………………………………………………………………. Page no.40

10-Conclusion……………………………………………………………. Page no.41

Bibliography / Webliography…………………………………………Page no.42-43

2

PREFACE

The bookish knowledge of any program, which we get from educational institutions, is

not enough to be used in our day-to-day life. The more practical knowledge we have, the

more beneficial it is for our learning.

To make the students aware of the working of the business world every student of

MASTER OF BUSINESS ADMINISTRATION (4th Sem ) has to undergo a major

research project where he experiences many aspects of business under the supervision of

Professional Managers.

I strongly believe that the knowledge gained from this experience is more than the

knowledge gained from the theories in the book.

PLACE: INDORE

Student Name

Rohit Kumar Sharma

DATE:

3

CERTIFICATE

This is to certify that Mr. Rohit Kumar Sharma Student of Institute of Business

Management and Research, IPS Academy, Indore of MBA (Full time) program has

prepared Major research Project report on topic “CUSTOMER ATTITUDE TOWARDS

DIFFERENT VALUE ADDED SERVICES OFFERED BY INDIAN TELECOME

SERVICES PROVIDERS” under my guidance.

Internal Examiner (Guide)

Asst. Prof. Gagan Bhati

External Examiner

Director IBMR,IPS Academy

4

STUDENT DECLARATION

I Rohit Kumar Sharma Student of Institute of Business Management and Research, IPS Academy, Indore of MBA (Full time) program has prepared Major research Project report on topic “CUSTOMER ATTITUDE TOWARDS DIFFERENT VALUE ADDED SERVICES OFFERED BY INDIAN TELECOME SERVICES PROVIDERS”.

The Research as per my knowledge is original and genuine and not published in any research Journal previously.

Student Name & Signature

Rohit Kumar Sharma

MBA(4th sem)

2014-16

5

ACKNOWLEDGEMENT

I often wondered why the project reports always began with acknowledgement. Now,

when I have undertaken project myself, did I realize that project report involves not just

the researcher but so many people that help in making the research possible. Therefore, I

take pleasure in beginning the most beautiful part of the report.

I fall short of words to express my gratitude to my guide Asst. Prof. Gagan Bhati Sir who

despite their busy schedule were able to find some time to guide me through trouble and

solve my problems to the best of abilities. Without their unfailing guidance,

encouragement and patience this project would not have been possible. It has been a

learning experience under him.

I am thankful to my faculty guide Asst. Prof. Gagan Bhati Sir who gave me detailed

instructions during my MRP.

6

INTRODUCTION

The Indian Telecom Sector has emerged as one of the critical components of economic

growth required for overall socio-economic development of the country as there is a

positive correlation between the penetration of mobile services and internet on the growth

of GDP of a country. According to Joshi (2014), World Bank believes that an increase in

mobile and broadband penetration increases the per capita GDP by 0.81% and 1.38%

respectively in the developing countries. After post-liberalization, exponential growth on

Telecom Sector in India can be seen, which actually helped the country for its

economical development, (Nasit, 2011). According to Earnst and Young (2011), Indian

telecom is an economic miracle in the making. They said that connecting such a vibrant

economy of more than a billion people together and with the rest of the globe is an

extraordinary achievement in terms of a nation’s socioeconomic development. According

to Shah (2008), the development of the Telecom Sector of India has experienced a major

process of transformation in terms of its growth, technological content and market

structure in the last decade through policy reforms introduced by Government of India.

A value-added service (VAS) is popular as a telecommunications industry term for non-

core services, or in short, all services beyond standard voice calls and fax transmissions.

It can be used in any service industry, for services available at little or no cost, to

promote their primary business. In the telecommunication industry, on a conceptual

level, value-added services add value to the standard, spurring the subscriber to use

their phone more and allowing the operator to drive up their Average Revenue per

User (ARPU). For mobile phones, while technologies like SMS, MMS and GPRS are

usually considered value-added services, a distinction may also be made between

standard (peer-to-peer) content and premium-charged content. These are called mobile

value-added services (MVAS) which are often simply referred as VAS. Value-added

services are supplied either in-house by the mobile network operator themselves or by

a third-party Value Added Service Provider (VASP), also known as a Content Provider

7

(CP). Vasps typically connect to the operator using protocols like Short Message Peer-

to-Peer Protocol (SMPP), connecting either directly to the Short Message Service

Centre (SMSC) or, increasingly, to a messaging gateway that allows the operator to

control and charge of the content better. There are many national and international

investors are ready to invest in this segment of telecom market. A list of some Value

Added Services provided by the telecom operators to the end users.

News - e.g. Business, sports, politics etc.

Finance - e.g. Share market, foreign exchange etc.

Entertainment - e.g. Games, jokes, films etc.

Travel - e.g. Railway, airlines etc.

Download - e.g. Caller tunes, wallpapers etc.

Astrology - e.g. Horoscope

Contest - e.g. Reality shows

Cricket - e.g. Score, video clips etc.

GPRS - e.g. Internet, chat etc.

Call Alert - e.g. Missed call alerts when mobile is switched off or busy

Health - e.g. Health tips, beauty tips etc.

M-Commerce - e.g. mobile transactions like mobile banking

Others - e.g. movies, music etc.

8

Value –added services (VAS)

According to TRAI “Value Added Service (VAS) in telecommunication industry refers

to non-core services, the core or basic services being standard voice calls and fax

transmission including bearer services”. The value added services are characterized as

under:-

It adds up value or worth in total service offering.

It creates a stimulus which in its very naturalistic form generates the profitability.

Premium prices charged for such services are known as „rational prices‟.

Traditionally Value Added Services (VAS) have been defined as enhanced services,

which add value to the standard or core tele-services offering like voice calls and fax

transmission. Examples of value added services include call related services like call

waiting, call forwarding, multi party conferencing, voice mail; email, SMS, MMS etc.

However, currently various Application Services (AS) are also being provided through

telecommunications network. While services like SMS, MMS on mobile phones, and

data access and call related services both on wireline and wireless were usually

considered value added services, but in recent years SMS, MMS, call related services and

data access have more and more become standard services, and VAS therefore has

beginning to exclude those services. Many more applications and services are being

offered on telephone and these services continue to evolve with changing technologies.

However, the term VAS continues to be used for all kinds of applications being offered

through telecommunications network. Since most of the services offered pertain to

content or application services, the term VAS needs to include all kinds of content and

applications provided on telecommunications network apart from traditional value added

services. In view of the fact that value added services have evolved to Application

Services the recommendations will be for Application Services.

9

HISTORY OF TELECOM

Indian telecom industry underwent a high pace of market liberalization and growth since

the 1990s and now has become the world's most competitive and one of the fastest

growing telecom markets. The Industry has grown over twenty times in just ten years,

from under 37 million subscribers in the year 2001 to over 846 million subscribers in the

year 2011. India has the world's second-largest mobile phone user base with over 929.37

million users as of May 2012. It has the world's second-largest Internet user-base with

over 300 million as of June 2015.

The total revenue of the Indian telecom sector grew by 7% to 2832

billion (US$43 billion) for 2010–11 financial year, while revenues from telecom

equipment segment stood at 1170 billion (US$18 billion).

Telecommunication has supported the socioeconomic development of India and has

played a significant role to narrow down the rural-urban digital divide to some extent. It

also has helped to increase the transparency of governance with the introduction

of governance in India. The government has pragmatically used modern

telecommunication facilities to deliver mass education programmes for the rural folk of

India.

The history of Indian telecom can be started with the introduction of telegraph. The

Indian postal and telecom sectors are one of the worlds oldest. In 1850, the first

experimental electric telegraph line was started between Calcutta and Diamond Harbor.

In 1851, it was opened for the use of the British East India Company. The Posts and

Telegraphs department occupied a small corner of the Public Works Department, at that

time.

The construction of 4,000 miles (6,400 km) of telegraph lines was started in November

1853. These connected Kolkata (then Calcutta) and Peshawar in the

north; Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then Madras)

in the south; Ootacamundand Bangalore. William O'Shaughnessy, who pioneered

10

the telegraph and telephone in India, belonged to the Public Works Department, and

worked towards the development of telecom throughout this period. A separate

department was opened in 1854 when telegraph facilities were opened to the public.

11

Current Status: M-VAS

By the end of December 2014, Indian telecom industry has become top second largest

industry in the world. There were 971.01 million telephone connections in the

country which included 944.01 million wireless telephone connections. The report

shows the tele density in the country as 77.59%. Wireless telephones have 97.22% and

private sector has 89.15% share in total telephones. The expected growth of India M-

VAS is at a CAGR of 18.5% during the period 2015-2020.The consumer VAS and

enterprise VAS market is expected to grow at a CAGR of 9.7% and 19.3% during the

period from 2015 to 2020, respectively Enriched Information Technology has changed

the lives of consumer to a great extent.The life of consumer become very comfortable as

ATM‟s, online pay systems, online shopping systems has been introduced. The Mobile

VAS made a comfortable and convenient lifestyle due to anywhere-anytime policy with

less spending over it.

12

LITERATURE REVIEW

Muller (1990) in his a research focuses that the success of the mobile commerce can be

attributed to the personal nature of wireless devices. Adding to this are its unique features

of voice and data transmission and distinct features like localization, feasibility and

convenience. The sustained growth of the mobile commerce around the world has been

more because of the transfer of technology according to the needs of local geography

Economic Survey, Government of India (2002-2003) has mentioned two very important

goals of telecom sector as delivering low-cost telephony to the largest number of

individuals and delivering low cost high speed computer networking to the largest

number of firms. The number of phone lines per 100 persons of the population which is

called teledensity, has improved rapidly from 43.6 in March 2001 to 4.9 in December

2002.

Adam Braff, Passmore and Simpson (2003) focus that telecom service providers even

in United States face a sea of troubles. The outlook for US wireless carriers is

challenging. They can no longer grow by acquiring new customers; in fact, their new

customers are likely to be migrated from other carriers. Indeed, churning will account for

as much as 80% of new customers in 2005.

According to Business and Economy (2005) the catalyst for Indian mobile operators in

the future will undoubtedly be increased marketing and advertisement expenditure, along

with better deals for mobile phone users like the previously mentioned full talk time Rs.

10 recharge card, will go a long way in not only retaining customers but also acquiring

the vast market of lowered customers who are extremely sticky about value for money

and have extremely low loyalties and almost non-existent switching costs.

According to Oliver Stehmann (2005) the telecommunications industry is characterized

by rapid innovation in the service and the transmission market. The legally protected

public or private monopolist does not have the same incentive to foster innovation that

would exist in a competitive environment. Thus, state intervention based on the natural

monopoly argument neglects dynamic aspects, which are crucial in the

telecommunications sector.

13

Harvinder Singh (2005) in his study, “Mobile Telephony Need to Knock Multiple

Doors”concluded that, Mobile telephony in India has been tremendous growth in

terms of subscriber base, tele-density, and usage, in the past six years, but it has not

translated into a high Average Revenue per User (ARPU). A gradual but steady

shift of mobile service providers towards value added services will help in

achieving a higher level of differentiation among service providers. It will also

generate an alternative stream of revenue and dependence on voice-call revenue will

come down.

Smruti Bulsari (2006) in his study “National Telecom Policy (NTP) 1994 and

Structural Change in Telecommunication sector of Gujarat” concluded that, There

has been a significant development in the telecommunication sector in the past decade.

The reforms in the telecommunications sector its beginning with the liberalization policy

in general and the NTP 1994. This policy was revised after having identified the lacunae

and it is being revised continuously in tune with the changes in technology and value

added services with basic telephony. Since the introduction of the NTP 1994, a

significant growth in the telecommunications sector of Gujarat and the growth rate is

estimated to be 9.6%.

Jessy John (2011) in his study “An analysis on the customer loyalty in telecom

sector: Special reference to Bharath Sanchar Nigam limited, India” concluded that, The

purpose of this paper was to investigate the factors that influence customer loyalty of

BSNL customers. Trustworthiness, relationship, image, value added services and

inconvenience in switching phone no. were found to the key factors that influenced the

loyalty of the BSNL customers.Even though the service provided by BSNL is very

cost effective it is still loosing its customer base. BSNL must look away from the

issue of cost and must try to improve the network quality and the quality of

customer services as per the expectations of the customers. New technologies and

features are being introduced in mobile services like PDA, MP4, high mega pixel digital

camera and others. BSNL need to update itself with respect to these technologies at the

same time take the initiative to market itself as youth friendly as youth are the target

universe of any mobile provider. At the same time initiatives should be taken to

14

improve the functional service quality were attention should be given to improve

reliability, assurance, empathy and overall satisfaction of the customers. The

existing customers should be actually made to feel that the ‘BSNL is best hai mere

a lie’ which means BSNL is the best one.

Sivarthina Mohan. R and Aranganathan, P (2011) in their study “Conceptual

framework of Mobile Marketing : Spamming the consumer around the world” found

that, Mobile phones can also be an extremely cost effective communication channel as

well as an efficient way of delivering a marketing message. Promotion through mobiles

has emerged as an integral part of any brand’s marketing campaign today. It has

become an important engagement tool for brands and aims to fulfill the gap that

traditional media has been unable to bridge. With the increasing popularity of the

Mobile Internet, this form of marketing is soon on the edge to achieve a significant

reach. It is also widely believed that the success of mobile advertising will directly

depend upon the penetration and the success of Mobile Internet. There are plentiful

opportunities for content and service providers to generate mobile value added

services (mVAS) revenues from this nascent market.

Mallikarjuna.V, Krishna Mohan.G and Pradeep Kumar.D (2011) in their study

“Customer switching in mobile industry - an analysis of pre-paid mobile customers

in AP circle of India” found that, Switching is quite high in the pre-paid customer

segment due to low switching costs and competitive tariff plans. With entry barriers

easing and mobile number portability around the corner, there is a high probability for

switching especially in the pre- paid segment. As network coverage, tariff plans,

service play a vital role in retaining customers; the mobile operators should

employ a number of strategies to manage the challenges. New levels of customer

interaction at various stages are necessary to ensure customer intimacy and loyalty.

Providing information on different plans, value added services, provision and

activation of additional services, and customer friendly environment at all points of

interaction are necessary to ensure customer delight. Network coverage and access are

15

the key factors that influence the customer retention. Hence, investment in

network and technology should go on to improve the geographic coverage,

seamless connectivity and speed. Improvement in the quality of basic service – the

voice calls will prove to be an excellent strategy for enhancing customer loyalty.

Shinde (2015) found that Network quality, Price sensitivity and Customer care

attributes were considered significant by subscribers while selecting mobile service

provider, it means that the subscribers were more concerned with network quality,

pricing by mobile service providers and customer care operations which acted as a

major factor for customer satisfaction as well as brand selection. The author

suggested that Telecommunication industry in India should emphasized on these

attributes to increase customer base.

16

RATIONALE OF STUDY

Customers are the pillars on which any organization may be small or large stands.

Customers form an integral and essential part of organization. They are the one of that

frame the path of success for the organization.

Gone are the days when the customers were considered to be liability of the company.

Today in the fast growing competitive world of corporate the customers are considered as

important assets and there is need for every organization to take care of its customer to

sustain in the market and retain the customer base of their organization. India is a

combination of urban and rural area. Our 30% population live in urban area and 70%

population live in rural area in India. Rural population is dependent on agriculture and

urban population is dependent industrialization. Hats the reason they are so far of

technology. And this time the most of the company established network toward for a

good communication networking. We all very know that rural area consumer purchasing

power is very low. There is some major reason behind it. To solve this type of problem

company provide very reasonable price to provide recharge voucher in rural areas. And

we all know that this time mobile set are very much cheap. So every rural consumer

purchasing power are very getting very strong in the current period. So we can say that

this time rural area and rural areas technology developing very much way.

There is lot of scope in this field and there is many chances to make good carrier in this

field this the reason behind chosen this topic for the major research project.

17

OBJECTIVE OF STUDY

To study the features that encourages customers to avail services from mobile

service providers.

To analyse the customers awareness level of Value Added Services on mobile

phone service providers.

To find the customer level of satisfaction of Value Added Services on mobile

phone service providers.

18

RESEARCH METHODOLOGY

The purpose of the present study was to study the awareness level of Value Added

Services in the telecom sector. Mobile phone service providers taken for the study were

BSNL, Airtel, Reliance, Aircel and Vodafone.

Selection of the population:

For the purpose of this present study Indore city is chosen. It is a convenient place to

collect the sample to the researcher and sample design is determined before data

are collected.

Selection of Sample Size:

A sample of 100 respondents was taken based on randomly. These respondents

were interviewed and data were collected from Indore city.

Selection of the Sample:

Selection of the sample unit was selected under the “Random sampling”. Random

sampling is a sample selected from a population in such a way that the every member of

the population has to get an equal chance of being selected. The choice of sample items

depends on chance.

19

Methods of Data Collection:

Both primary and secondary sources of data were used. The primary data required for

the study were collected through questionnaire. Primary data has been collected from

different mobile phone service provider users in Indore city. The main service

providers are BSNL, Airtel, Reliance, Aircel and Vodafone. Secondary data was

collected from the Annual reports of the companies, Magazines, Journals and Websites

of various National and International Institutions.

Analysis of Data:

To arrive at certain conclusions regarding the hypothesis advanced in the

present investigation, the following statistical tools for analysis of data were

employed to consolidate, classify and analyse the data with reference to the selected

objectives of the study. i.e., Simple Percentage Analysis, Weighted Average Analysis,

Factor Analysis. Statistical calculations have been made making extensive use of

Microsoft Excel and SPSS Software Packages on the computer.

20

Questionnaire

Customer Name : ____________________________

Age : _____

Sex : M F

Profession : ______________

Address : _________________

Mobile No. :____________

Name of Hand-Set model : ___________

(Please tick (√) the box or boxes which ever you feel suitable)

1. Which is your current cellular service provider ?

a. BSNL b. AIRTEL c. DOCOMO d. VODAFONE e. IDEA f. RELIANCE

2. Your Occupation;

a. Civil servant b. Corporate employee c. Businessd. Student e. Farmer f. Other

3. Cellular mobile service to you is :

a. Useful b. Essential c. Personald. Status Symbol e. Any Other 4. What factors do you consider while choosing cellular services? a. Coverage b. Fair Pricingc. Quality Service d. Attractive Schemes

5. For what purpose, you use mobile?a. Home b. Business c. Corporated Other(Pl. specify)_______

21

6. What according to you is the basic use of Mobiles?

a. SMS b. Incoming c. Outgoing d. Roaming e. Internet f. All of them

7. How do you rate the overall service of your service provider? a. Very Good b. Goodc. Average d. Poor

8. Which card are you using ?

a. Pre-paid b. Post-paid c. Top-up

9. Do you face any problem with Landline phones?

a. Poor Service b. Probability c. Error in billing d. Problem to cross connectivity

10. What is the cost of mobile phone?

a. More than 10000 b. Between 10000 to 6000c. Between 6000 to 3000 d. Less than 3000

11. How many connections do you have?

a.More than two b. Two c. One

12. What is the frequency of using Mobile phone every day:

a. More than 3hr b.2 to 3hrc. 1 to 2hr d. 1hr

13.How much money do you spend on your mobile phone/ month?

a. Less than 200 b. 200 to 400c. 500 to 1000 d. More than 1000 14. Respondents Opinion Regarding Customer Care Department;

a. Highly satisfied b. Satisfied c.Neither satisfied nor dissatisfiedd. Dissatisfied e. Highly dissatisfied

22

15. Mode of Bill Payment;

a. Cash/ Vouchers b. Net Banking

c. Credit Card d. Mobile Banking

16. Do you want change your service provider?

a. Yes b. No c. Can`t Say

23

ANALYSIS AND INTERPRETATION

Chart 1. Which is your current cellular service provider ?

ServiceProviders

Airtle BSNL Reliance Idea Docomo Vodafone

Customers 24% 19% 18% 15% 15% 9%

24%

19%

15%

15%

9%

18%

Sales

AirtelBSNLIdeaDocomoVodafoneReliance

As per the above analysis we can say that Airtel has the most customers with 24% in

cellular market than on 2nd position BSNL with 19% customers than Reliance followed

with Idea and Docomo and Vodafone has the least number of the customers in the

market.

24

Chart 2. Your Occupation/Profession;

Customer`sProfession

Civil Servant

Corporate Employee

Business Student Farmers Others

Results 14% 26% 20% 26% 4% 10%

14%

26%

20%

26%

4%

10%

ProfessionCivil servant Corporate emloyee BusinessStudent Farmer Other

As per the above analysis we can say that most of the users of mobile phones are students

and corporate employees with 26% according to this analysis after this 20% users who

are from business background than 14% formers and other professions.

25

Chart 3. Cellular mobile service to you is :

Mobile Services

Useful Essential Personal Status Symbol

Other

Results 20% 16% 22% 33% 9%

20%

16%

22%

33%

9%

Mobile ServiceUseful Essential Personal Status Symbol Other

As per the above analysis we can say that mobile services are status symbol for the users

this analysis has shown that 33% people think that mobile phones are status symbol now

a days and 20% said mobile phones are very useful and 22% said it is good for personal

use.

Chart 4. What factors do you consider while choosing cellular services?

26

Factors Coverage Fair Pricing Quality Service Attractive Scheme

Results 36% 24% 18% 22%

36%

24%

18%

22%

FactorsCoverage Fair Pricing Quality Service Attractive Scheme

As per the above analysis we want to know what are the main factors which influence the

customers to purchase mobile or select service provider as per the results we found

coverage is the most important factor 36% people has said that in mobile phone coverage

is the important factor because without coverage you can not use your mobile phone.

24% said price should be fair and 22% said attractive schemes are important factor to

select providers and 18% refers to quality.

Chart 5. For what purpose, you use mobile?

27

Purpose of Mobile

Home Business Corporate Others

Results 49% 31% 18% 2%

49%

31%

18%

1%

PurposeHome Business Corporate Other

As per the above analysis we found for which purpose people use mobile phones,

according to these results we found 49% people use mobiles to connect with relatives

here we used the word home after that 31% of people used mobile phones for business

purpose and 18% used for corporate.

28

Chart 6. According to you what is the basic use of Mobiles?

Use of

Mobile

SMS Incoming Outgoing Roaming Internet All of

them

Results 8% 24% 22% 6% 26% 14%

8%

24%

22%6%

26%

14%

Use Of MobileSMS Incoming Outgoing Roaming Internet All of them

As per the above analysis we want to know use of the mobile phones and we found 26%

people use internet on the mobile they spent more time on social networking sites after

internet Incoming and Outgoing are most value added services of mobile phone, 14%

people who used all the services.

29

Chart 7. How do you rate the overall service of your service provider?

Overall Rating Very good Good Average Poor

Results 15% 44% 29% 12%

15%

44%

29%

13%

Overall ServiceVery Good Good Average Poor

As per the above analysis we rate overall service of cellular service providers, we found

44 percentage customers rate there service provider`s service as “Good” that means they

are satisfied with the service they are getting, 29% said they will rate as average to there

service provider, 15% are those who rate very good and 12% who said that they are not

satisfied with the service that’s why they rate poor.

30

Chart 8. Which card are you using ?

Card used for

recharge

Pre-Paid Post-Paid Top-up

Results 55% 18% 27%

55%

18%

27%

Recharge CardPre Paid Post Paid Top Up

As per the above analysis we found which kind of plan people used to recharge there

mobile phones and we found 55% of customers used pre-paid plan than 27% customers

used top-ups for recharge and only 18% customers used post-paid plans.

Chart 9. Do you face any problem with Landline phones?

31

Problem with

Landline

Poor service Probability Error in Billing Cross

Connectivity

Results 41% 18% 2% 39%

42%

18%

2%

39%

Problem With LandLinePoor Service Probability Error in Billing Cross Connectivity

As per the above analysis we want to know problems with landline connection what

people found in using landline phones and the results showed that poor service of

landline service provider is the main problem what customers face,41% landline users

said that they are not satisfied with the services, 39% users said cross connectivity is the

problem they faced while using landline and 2% said they face errors in billing of

landline connections.

Chart 10. What is the cost of mobile phone?

32

Cost of Mobile 10000> 10000to6000 6000to3000 <3000Result 35% 44% 20% 1%

35%

44%

20%

1%

Cost of Mobile10000> 10000 -6000 6000 -3000 <3000

As per the above analysis we want to know the cost of mobile phone which customers are

using and we found that 35% users are using mobile phone which price is more than

10000 rupees and 44% people who spent money on mobile phone in between 10000 to

6000 rupees and 20% spent 6000 to 3000 and only 1% who spent less than 3000.

Chart 11. How many connections do you have?

33

No. of Connections

2> 2 1 None

Result 12% 30% 54% 4%

12%

30%

54%

4%

No. of Connections2> 2 1 None

As per the above analysis we want to know how many connections or mobile phones

people have and we found 30% users who have 2 connections and 12% users using more

than two connections. 54% users have only one connection and only 4% people who

don’t have any connections.

Chart 12. What is the frequency of using Mobile phone every day:

34

Frequency of

use

3hr> 2-3hr 1-2hr 1hr

Result 8% 20% 31% 41%

8%

20%

31%

41%

Frequency of Use3hr> 2-3hr 1-2hr 1hr

As per the above analysis we want to know the frequency of using mobile phone every

day and here we found 41% people spent minimum one hour on mobile and 31% people

spent one to two hour daily. 20% people who spent two to three hours every day and only

8% users who used mobile phones more than three hours every day.

Chart 13.How much money do you spend on your mobile phone/ month?

35

Expenses every

month

<200 200-400 500-1000 1000>

Result

31%

46%

22%

1%

Money Spend On Mobile<200 200-400 500-1000 1000>

As per the above analysis we want to know how much money users spend on mobile

recharges every month and here we found that 46% users spend rupees 200 to 500 every

month on recharge and other, 31% users spend rupees 200 or less than 200 and 22% users

spend rupees in between 500 to 1000 and 1% users who spend more than 1000 rupees on

mobile recharges every month.

Chart 14. Respondents Opinion Regarding Customer Care Department;

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CustomerCare

Service

Highly

satisfied

Satisfied Dissatisfied Highly

dissatisfied

Average/

Neutral

Result 18% 40% 20% 12% 10%

18%

40%

20%

12%

10%

Customer Care ServiceHighly Satisfied Satisfied Dissatisfied Highly Dissatisfied Average

As per the above analysis we want to know about customer care service provided to

customers by service providers here we known the opinion of customers and we found

that 40% of the total customers are satisfied with customer care services that means there

problems got solved easily when they found any problem, 20% users are those who are

not satisfied with the customer care service and 18% users are highly satisfied and 12%

users are highly dissatisfied by the customer care service and 10% users who neither

satisfied nor dissatisfied.

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Chart 15. Mode of Bill Payment;

Mode of bill payment

Cash Net Banking Credit Card Mobile Banking

Result 37% 20% 9% 34%

37%

20%

8%

34%

Mode of PaymentCash Net Banking Credit card Mobile Banking

As per the above analysis we want to know about mode of the bill payment here we

found 37% customers use cash or vouchers to recharge their mobile bills and 34% people

use mobile banking service to recharge their bills, 20% users used net banking service

and 9% use credit card for recharge bills.

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Chart 16. Do you want change your service provider?

Change Current

Service Provider

Yes No Can`t say

Results 35% 64% 1%

35%

64%

2%

Change Current Service ProviderYes No Can`t Say

As per the above analysis we want know that how many users want to change their

current service provider and we found that 64% users said that they are happy with the

current service provider and they don’t want to change current service provider, 35%

users said that they are not satisfied the services of their current service provider and they

want to switch and 1% users are neutral.

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FINDINGS OF THE STUDY

Maximum numbers of mobile phone service provider users are using Value

Added Services.

Maximum number of users is familiar with prepaid & postpaid services, which

are offered to them by their respective service provider. SMS, Ring tones &

Pictures download, video clips, information services, Internet/GPRS, third party

conference are commonly known services to most of the mobile phone service

provider users frequently used for value added services.

The factor analysis condensed and simplified the 15 value added services

and grouped into 4 factors explaining 69.05 percent of the variability of all the

15 value added services.

Maximum number of mobile phone service provider users are availing the

valued added services. But now everyone frequently uses some Value Added

services like SMS, ring-tone downloading, internet connection and gaming,

etc. Majority of mobile phone service provider users are satisfied with

charges for value added services and very few of mobile phone service provider

users are neutral, dissatisfied and highly dissatisfied with internet connection,

activation time for value added services, free sms and guaranteed delivery of

notification.

CONCLUSION

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The Value Added Services industry in India is at nascent stage. At present,

the telecommunications industry was revolutionized by the rapid penetration of 'Mobile',

and the next level of growth-cum-revolution is undoubtedly marked by the value-

added services (VAS) market. Mobile VAS has gained significance as it has been

emerging as a potential alternative revenue stream. VAS enables the subscriber to use

the mobile phone for a host of purposes such as for sending short messages, pictures,

to surf the Internet, for mobile banking including mobile payments, to read news

headlines, astrology, to listen to music, to play games and to seek various other types of

information. The current Indian MVAS market can be gauged into two categories that

are Current MVAS and Emerging MVAS. The current MVAS category covers 63

percent of the total industry, whereas emerging MVAS covers the remaining share of

37 percent. The current MVAS consists of CRBT (27 percent) and SMS Based

application (17 percent). On the other hand, the emerging MVAS consist mostly of

Mobile Apps (10 percent) and Games (8 percent). MVAS growth further, affordable

mobile devices and cheaper data subscription rates will play a crucial role in the

market.

BIBLIOGRAPHY

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Books-

Business research methodology: William G.zikmund

Research Methodology: C.R. Kothari

Harvinder Singh ,“Mobile Telephony Need to Knock Multiple Doors”,

Marketing Mastermind, December, 2005, Pg. 49

Smruti Bulsari, “ National Teleocm Policy (NTP) 1994 and Structural

Change in Telecommunication sector of Gujarat”, The Icfai Journal of

Infrastructure, Vol. V, No.3, September 2007, Pg. 35

Jessy John (2011) in his study “An analysis on the customer loyalty in telecom

sector Special reference to Bharath Sanchar Nigam limited, India”,

African Journal of Marketing Management, January 2011, Vol. 3(1) pp. 1-5.

Sivarthina Mohan. R and Aranganathan. P ,“Conceptual framework of

Mobile Marketing : Spamming the consumer around the world”, Indian Journal

of Marketing Feb 2011, Vol.41, No. 4, Pg. 39-45

Websites-

http://www.maxis.com.my/personal/mobile/vas/index.asp

Narayanan_Anandpadmanabhan-with-cover.pdf

http://www.tmobilecellphones.biz/mobile-service-providers/index.htm

http://india.mapsofindia.com/transportation/telecom-backbone-of-india.html

www.trai.gov.in

www.coai.in

http://thinkingaloud.in/ArticleComments.aspx?ArtId=921

http://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdf per_v2.pdf

www.bseindia.com

www.appuonline.com

www.moneycontrol.com

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www.myiris.com

www.optiontradingpedia.com

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