CHAPTER 1

INTRODUCTION

1

INTRODUCTION

World telecom industry is an uprising industry, proceeding towards a goal of achieving

two third of the world's telecom connections. Over the past few years information and

communications technology has changed in a dramatic manner and as a result of that

world telecom industry is going to be a booming industry. Substantial economic growth

and mounting population enable the rapid growth of this industry.

The world telecommunications market is expected to rise at an 11 percent compound

annual growth rate at the end of year 2010. The leading telecom companies like AT&T,

Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are

trying to take the advantage of this growth. These companies are working on

telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for

Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice

over Internet protocol, wireless data service etc.

Economical aspect of telecommunication industry: World telecom industry is taking a

crucial part of world economy. The total revenue earned from this industry is 3 percent of

the gross world products and is aiming at attaining more revenues. One statistical report

reveals that approximately 16.9% of the world population has access to the Internet.

Present market scenario of world telecom industry: Over the last couple of years, world

telecommunication industry has been consolidating by allowing private organizations the

opportunities to run their businesses with this industry. The Government monopolies are

now being privatized and consequently competition is developing. Among all, the

domestic and small business markets are the hardest.

GLOBAL SCENARIO

Until the 1980s the world telecommunications systems had a simply administrative

structure. The United States telephone service was supplied by a regulated monopoly,

American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by

the Western Union Corporation. In almost all other countries both services were the

monopolies of government agencies known as PTTs (for Post, Telephone, and

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Telegraph). In the United States beginning in 1983, AT&T agreed in a court settlement to

divest itself of the local operating companies that provided basic telephonic service. They

remained regulated local monopolies, grouped together into eight regional companies.

AT&T now offers long distance service in competition with half a dozen major and many

minor competitors while retaining ownership of a subsidiary that produces telephonic

equipment, computers and other electronic devices. During the same period Great

Britain’s national telephone company was sold to private investors as was Japan’s NTT

telephone monopoly. For telegraphy and data transmission, Western Union was joined by

other major companies, while many multinational firms formed their own

telecommunications services that link offices scattered throughout the world. New

technology also brought continuing changes in the providers of telecommunication.

Private companies such as Comsat in the United States were organized to provide

satellite communication links within the country.

Around the world we are witnessing remarkable changes to the telecoms environment.

After years of debate, structural separation is now taking place in many parts of the world

including Hong Kong, New Zealand, Singapore and some European markets. Structural

separation or at least full-blown operational separation is required to advance the entire

industry and to create new business opportunities and innovations which will benefit our

society, our economy and ultimately our industry.

The focus is also shifting away from broadband to what it can actually achieve. Next

Generation Telecommunications better describes this new environment and is essential

for the emerging digital economy. Important services that depend on NGT include tele

health, e-education, e-business, digital media, e-government and environmental

applications such as smart utility meters.

In order to meet this burgeoning consumer demand for NGT applications, we are seeing

increasing investment in All-IP Next Generation Networks and fiber networks. A proper

inventory of national infrastructure assets is required if we want to establish an efficient

and economically viable national broadband structure for these services. In the

developing markets, next generations telecoms will take the form of wireless NGNs (ie,

LTE/WiMAX).

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These are some of the elements of the broader ICT revolution that is unfolding before our

very eyes. We are right in the midst of the transition from old communications structures

(mainly one-way streets) to new structures that are fully-interactive and video-based.

One of the drivers behind the industry changes are the declining revenues experienced by

the telcos in their traditional markets. Over the past 10 years or so, fixed-line operators

have been affected by deregulation, a severe industry downturn, declining prices and

major inroads by mobile services. In addition, people are drifting to other forms of

communication, such as email, online chat, and mobile text messaging instead of the

traditional phone.

This has also led to an increased need for bandwidth, which in turn has revived the

submarine cable sector. In recent times there have been many cable build-out

announcements around the world, and some major systems are again being constructed.

Over 25 systems are expected to be built over the next two to three years and network

upgrades are also on the agenda for some existing systems.

It is clear that the mobile industry is also undergoing profound changes. The saturated

developed markets are forcing the industry to find new revenue streams and we are now

seeing other organizations such as media companies, content providers, Internet media

companies and private equity companies becoming involved in this market.

For the time being however, voice will remain the killer application for mobile with some

data services included as support services and niche market services. 4G (ie,

WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the

majority of mobile revenues will come from data.

With the Internet economy, digital media and other telecommunications activities

becoming further established, the need for modern and efficient infrastructure is

becoming more critical.

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INDIAN OVERVIEW

Today the Indian telecommunications network with over 375 Million subscribers is

second largest network in the world after China. India is also the fastest growing telecom

market in the world with an addition of 9- 10 million monthly subscribers. The

teledensity of the Country has increased from 18% in 2006 to 33% in December 2008,

showing a stupendous annual growth of about 50%, one of the highest in any sector of

the Indian Economy. The Department of Telecommunications has been able to provide

state of the art world-class infrastructure at globally competitive tariffs and reduce the

digital divide by extending connectivity to the unconnected areas. India has emerged as a

major base for the telecom industry worldwide. Thus Indian telecom sector has come a

long way in achieving its dream of providing affordable and effective communication

facilities to Indian citizens. As a result common man today has access to this most needed

facility. The reform measures coupled with the proactive policies of the Department of

Telecommunications have resulted in an unprecedented growth of the telecom sector.

The thrust areas presently are:

1. Building a modern and efficient infrastructure ensuring greater competitive

environment.

2. With equal opportunities and level playing field for all stakeholders.

3. Strengthening research and development for manufacturing, value added services.

4. Efficient and transparent spectrum management

5. To accelerate broadband penetration

6. Universal service to all uncovered areas including rural areas.

7. Enabling Indian telecom companies to become global players.

Recent things to watch in Indian telecom sector are:

1. 3G and BWA auctions

2. MVNO

3. Mobile Number Portability

4. New Policy for Value Added Services

5. Market dynamics once the recently licensed new telecom operators start rolling out

6. Services.

7. Increased thrust on telecom equipment manufacturing and exports.

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8. Reduction in Mobile Termination Charges as the cost per line has substantially reduced

9. Due to technological advancement and increase in traffic.

India's telecom sector has shown massive upsurge in the recent years in all respects of

industrial growth. From the status of state monopoly with very limited growth, it has

grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an

essential necessity for the people of India. This changing phase was possible with the

economic development that followed the process of structuring the economy in the

capitalistic pattern. Removal of restrictions on foreign capital investment and industrial

de-licensing resulted in fast growth of this sector. At present the country's telecom

industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone

companies were present, fixed landlines were popular in most parts of the country, with

government of India setting up the Telecom Regulatory Authority of India, and measures

to allow new players country, the featured products in the segment came in to

prominence. Today the industry offers services such as fixed landlines, WLL, GSM

mobiles, CDMA and IP services to customers. Increasing competition among players

allowed the prices drastically down by making the mobile facility accessible to the urban

middle class population, and to a great extend in the rural areas. Even for small

shopkeepers and factory workers a phone connection is not an unreachable luxury. Major

players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchison Essar, BPL, Tata,

Idea, etc. With the growth of telecom services, telecom equipment and accessories

manufacturing has also grown in a big way.

Indian Telecom sector, like any other industrial sector in the country, has gone through

many phases of growth and diversification. Starting from telegraphic and telephonic

systems in the 19th century, the field of telephonic communication has now expanded to

make use of advanced technologies like GSM, CDMA, and WLL to the great 3G

Technology in mobile phones. Day by day, both the Public Players and the Private

Players are putting in their resources and efforts to improve the telecommunication

technology so as to give the maximum to their customers.

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SCOPE OF THE STUDY

The scope of the study is limited to the post paid services offered by Reliance

Communications. Study objective is to examine the various factors which play their part

in customer buying behavior and the major dissatisfaction areas for the customers. The

study considered the urban area of Lucknow city. The sample under consideration

consisted of the existing customers of Reliance Communications.

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SIGNIFICANCE OF THE STUDY

The project I chose was a study on customer awareness and satisfaction for reliance post

paid products.

The title is very much significant considering the present global scenario. The awareness

level is the basic requirement for a company to sell its products in the market because if

the customers are not aware of the products, there would be no sale. Along with the

awareness, the companies have to keep a regular check on the satisfaction level of its

customers to retain them. The survey helps to find out the loopholes is the area of service

being offered by the company. Identifying those areas would help the company to

minimize them and then they can go for increasing customers.

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OBJECTIVES OF THE STUDY

The following are the objectives of the study.

1. To study the problems faced by the respondents with Reliance Postpaid service.

2. To study customer satisfaction level on Reliance services.

3. To find out consumer preferences.

4. To analyze the level of awareness about Reliance products.

5. To make suggestions in the light of the findings of the study.

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LITERATURE REVIEWED:

Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its “Performance

Analysis of Companies (April-June 2008)” has analyzed the Indian telecom industry

in the awake of recent global recession and its overall impact on the Indian economy.

With almost 5-6million subscribers are being added every month, and the country is

witnessing wild momentum in the telecom industry, the Indian telecom industry is

expected to maintain the same growth trajectory.

Internet service providers in India, Rao (2000), provide a broad view of the role of

an Internet service provider (ISP) in a nascent market of India. Building local content,

foreknowledge of new Internet technologies, connecting issues, competitiveness, etc.

would help in their sustainability.

The role of technology in the emergence of the information society in India,

Singh (2005), describes the role that information and communication technologies

are playing for Indian society to educate them formally or informally which is

ultimately helping India to emerge as an information society.

T.H. Chowdary (1999) discusses how Telecom reform, or demonopolization, in

India has been bungled. Shaped by legislation dating back to the colonial era and post

Second World War socialist policies, by the mid-1980s India realized that its poor

telecommunications infrastructure and service needed reform. At the heart of the

problem lay the monopoly by the government’s Department of Telecommunications

(DOT) in equipment, networks and services. The National Telecom Policy 1994 spelt

out decent objectives for reform but tragically its implementation was entrusted to the

DOT. This created an untenable situation in which the DOT became policymaker,

licenser, regulator, operator and also arbitrator in disputes between itself and licensed

competitors. He discusses the question: ‘Why did India get it so wrong? and What

India should do now?

Thomas (2007), in his article describes the contribution made by telecommunications

in India by the state and civil society to public service, this article aims to identify the

state’s initial reluctance to recognize telecommunications provision as a basic need as

against the robust tradition of public service aligned to the postal services and finds

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hope in the renewal of public service telecommunications via the Right to

Information movement. The article follows the methodology of studying the history

of telecommunications approach that is conversant with the political economy

tradition. It uses archival sources, personal correspondence, and published

information as its research material. The findings of the paper suggests that public

service in telecommunication is a relatively ‘‘new’’ concept in the annals of Indian

telecommunications and that a deregulated environment along with the Right to

Information movement holds significant hope for making public service

telecommunications a real alternative. The article provides a reflexive, critical

account of public service telecommunications in India and suggests that it can be

strengthened by learning gained from the continual renewal of public service ideals

and action by the postal services and a people-based demand model linked to the

Right to Information Movement. All studies done by the researcher suggests that the

right to information movement has contributed to the revitalization of participatory

democracy in India and to a strengthening of public service telecommunications.

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CHAPTER 2

INDUSTRY PROFILE

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INDUSTRY PROFILE

The Indian telecommunications industry is one of the fastest growing in the world and

India is projected to become the second largest telecom market globally by 2010.

India added 113.26 million new customers in 2008, the largest globally. In fact, in April

2008, India had already overtaken the US as the second largest wireless market. To put

this growth into perspective, the country’s cellular base witnessed close to 50 per cent

growth in 2008, with an average 9.5 million customers added every month. According to

the Telecom Regulatory Authority of India (TRAI), the total number of telephone

connections (mobile as well as fixed) had touched 385 million as of December 2008,

taking the telecom penetration to over 33 per cent. This means that one out of every three

Indians has a telephone connection, and telecom companies expect this pace of growth to

continue in 2009 as well. "We are extremely bullish that the growth will continue in

2009. This year, the number of additions will be in excess of 130 million," according to

T.V. Ramachandran , Director General, Cellular Operators Association of India (COAI),

an industry body that represents all Global System for Mobile communications (GSM)

players in India. According to CRISIL Research estimates, eight infrastructure sectors,

which include the telecom sector, are expected to draw more than US$ 345.28 billion

investment in India by 2012.

With the rural India growth story unfolding, the telecom sector is likely to see

tremendous growth in India's rural and semi-urban areas in the years to come. By 2012,

India is likely to have 200 million rural telecom connections at a penetration rate of 25

per cent. And according to a report jointly released by Confederation of Indian Industry

(CII) and Ernst & Young, by 2012, rural users will account for over 60 per cent of the

total telecom subscriber base.

According to Business Monitor International, India is currently adding 8-10 million

mobile subscribers every month. It is estimated that by mid 2012, around half the

country's population will own a mobile phone. This would translate into 612 million

mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. It is

projected that the industry will generate revenues worth US$ 43 billion in 2009-10.

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GROWTH IN SEGMENTS

According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are

expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in

India. Fixed line capex is projected to be US$ 3.2 billion, and mobile capex is likely to

touch US$ 9.4 billion.

Further, according to a report by Gartner Inc., India is likely to remain the world's second

largest wireless market after China in terms of mobile connections. According to recent

data released by the COAI, Indian telecom operators added a total of 10.66 million

wireless subscribers in December 2008. Further, the total wireless subscriber base stood

at 346.89 million at the end of December 2008.

The overall cellular services revenue in India is projected to grow at a CAGR of 18 per

cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to

60.7 per cent from 19.8 per cent in 2007.

The Indian telecommunications industry is on a growth trajectory with the GSM

operators adding a record 9.3 million new subscribers in January 2009, taking the total

user base to 267.5 million, according to the data released by COAI. However, this figure

does not include the number of subscribers added by Reliance Telecom.

In WiMax, India is slated to become the largest WiMAX market in the Asia-Pacific by

2013. A recent study sees India's WiMAX subscriber base hitting 14 million by 2013 and

growing annually at nearly 130 per cent. And investments in WiMAX ventures are slated

to top US$ 500 million in India, according to a report by US-based research and

consulting firm, Strategy Analytics.

VALUE-ADDED SERVICES MARKET

A report by market research firm IMRB stated that the mobile value-added services

(MVAS) industry was valued at US$ 1.15 billion in June 2008, and is expected to grow

rapidly at 70 per cent to touch US$ 1.96 billion by June 2009.

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Currently, MVAS in India accounts for 10 per cent of the operator's revenue, which is

expected to reach 18 per cent by 2010. According to a study by Stanford University and

consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010.

Mobile advertising, which is an important VAS segment, offers great potential to become

an important revenue source. Marketers are increasingly using MVAS as a step ahead of

SMS-based marketing to sell soaps and shampoos, banking, insurance products and also

entertainment services, and rural markets are proving to be very receptive for such

marketing.

Further, Venture Capitalists like Canaan Partners, Draper Fisher Juvertson, Helion, and

Nexus India are also innovating with services like mobile payment options, advertising,

voice-based SMS and satellite video streaming.

According to Venture Intelligence, there were nine deals worth US$ 41 million in 2007 in

the mobile VAS space, and till August 2008, seven deals worth US$ 91 million had

already been finalized. Presently, mobile VAS has a US$ 700 million market with a 20

per cent y-o-y growth, which is likely to touch US$ 3 billion by 2012.

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A DREAM COME TRUE

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man

would have access to affordable means of information and communication. Dhirubhai,

who single-handedly built India’s largest private sector company virtually from scratch,

had stated as early as 1999: “Make the tools of information and communication available

to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of

mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance

Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone.

This backbone was commissioned on 28 December 2002, the auspicious occasion of

Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and

wireline) and convergent (voice, data and video) digital network. It is capable of

delivering a range of services spanning the entire infocomm (information and

communication) value chain, including infrastructure and services — for enterprises as

well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and

networks, truly bringing about a new way of life. 

About Sh. Dhirubhai Ambani

Few men in history have made as dramatic a contribution to their country’s economic

fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left

behind a legacy that is more enduring and timeless.

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As with all great pioneers, there is more than one unique way of describing the true

genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,

the leader of men, the architect of India’s capital markets, the champion of shareholder

interest. But the role Dhirubhai cherished most was perhaps that of India’s greatest

wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s

largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely

US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this

fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned

Reliance a place on the global Fortune 500 list, the first ever Indian private company to

do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when

Reliance Textile Industries Limited first went public, the Indian stock market was a place

patronized by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors

to participate in the unfolding Reliance story and put their hard-earned money in the

Reliance Textile IPO, promising them, in exchange for their trust, substantial return on

their investments. It was to be the start of one of great stories of mutual respect and

reciprocal gain in the Indian markets.

Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the

greatest growth stories in corporate history anywhere in the world, and went on to

become India’s largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary

shareholder uppermost in mind, in the process making millionaires out of many of the

initial investors in the Reliance stock, and creating one of the world’s largest shareholder

families.

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VISION

“We will leverage our strengths to execute complex global-scale projects to facilitate

leading-edge information and communication services affordable to all individual

consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business

productivity.

We will also generate value for our capabilities beyond Indian borders and enable

millions of India's knowledge workers to deliver their services globally.”

INDIA’S LEADING INTEGRATED TELECOM COMPANY

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group

(ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock

Exchange, it is India’s leading integrated telecommunication company with over 77

million customers.

Our business encompasses a complete range of telecom services covering mobile and

fixed line telephony. It includes broadband, national and international long distance

services and data services along with an exhaustive range of value-added services and

applications. Our constant endeavor is to achieve customer delight by enhancing the

productivity of the enterprises and individuals we serve.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002,

coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was

among the initial initiatives of Reliance Communications. It marked the auspicious

beginning of Dhirubhai’s dream of ushering in a digital revolution in India. Today, we

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can proudly claim that we were instrumental in harnessing the true power of information

and communication, by bestowing it in the hands of the common man at affordable rates.

We endeavor to further extend our efforts beyond the traditional value chain by

developing and deploying complete telecom solutions for the entire spectrum of society.

LOOKING BACK, LOOKING FORWARD

Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by

Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector

business houses in terms of net worth. The group has business interests that range from

telecommunications (Reliance Communications Limited) to financial services (Reliance

Capital Ltd) and the generation and distribution of power (Reliance Infrastructure

Limited).

Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest

private sector information and Communications Company, with over 77 million

subscribers. It has established a pan-India, high-capacity, integrated (wireless and

wireline), convergent (voice, data and video) digital network, to offer services spanning

the entire infocomm value chain.

Other major group companies — Reliance Capital and Reliance Infrastructure — are

widely acknowledged as the market leaders in their respective areas of operation.

 

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CHAIRMAN'S PROFILE

Anil D. Ambani

 

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D.

Ambani,48, is the chairman of all the listed companies of the Reliance ADA Group,

namely Reliance Communications, Reliance Capital, Reliance Energy and Reliance

Natural Resources limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of

Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director of Reliance

Industries Limited (RIL), India’s largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally

involved in every aspect of the company’s management over the next 22 years. He is

credited with having pioneered a number of path-breaking financial innovations in the

Indian capital markets. He spearheaded the country’s first forays into the overseas capital

markets with international public offerings of global depositary receipts, convertibles and

bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2

billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of:

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Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya

Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on

March 25, 2006.

Awards and Achievements:

Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards

Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in

the Business Barons – TNS Mode opinion poll, 2004

Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management

Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India

Economic Forum (WIEF) in recognition of his contribution to the establishment

of Reliance as a global leader in many of its business areas, December 2001

Selected by Asiaweek magazine for its list of ‘Leaders of the Millennium in

Business and Finance’ and was introduced as the only ‘new hero’ in Business and

Finance from India, June 1999.

CORPORATE GOVERNANCE

Organizations, like individuals, depend for their survival, sustenance and growth on the

support and goodwill of the communities of which they are an integral part, and must pay

back this generosity in every way they can…

This ethical standpoint, derived from the vision of our founder, lies at the heart of the

CSR philosophy of the Reliance – ADA Group.

While we strongly believe that our primary obligation or duty as corporate entities is to

our shareholders – we are just as mindful of the fact that this imperative does not exist in

isolation; it is part of a much larger compact which we have with our entire body of 21

stakeholders: From employees, customers and vendors to business partners, eco-system,

local communities, and society at large.

We evaluate and assess each critical business decision or choice from the point of view of

diverse stakeholder interest, driven by the need to minimize risk and to pro-actively

address long-term social, economic and environmental costs and concerns.

For us, being socially responsible is not an occasional act of charity or that one-time

token financial contribution to the local school, hospital or environmental NGO. It is an

ongoing year-round commitment, which is integrated into the very core of our business

objectives and strategy.

Because we believe that there is no contradiction between doing well and doing right.

Indeed, doing right is a necessary condition for doing well.

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DEPARTMENTAL STRUCTURE

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CHAPTER 3

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Methodology is an essential aspect of any project or research. It enables the researches

look at the problem in a systematic, meaningful and orderly way. Methodology comprises

the sources of data, selection of data, various designs and techniques used for analyzing

the data.

1. Collection of data

The primary data are collected through survey method. Survey method is undertaken to

find the customer satisfaction and opinion. A survey was conducted among the people of

Lucknow City by the aid of well structured questionnaire. The population for the study

consists of people who are using cell phones in Lucknow City.

The sampling unit for the study is 100, which includes the cell phone, fixed wireless

phones and internet users in Lucknow City. The sampling size includes male and female

users from different occupation, age. The sampling size was restricted to 100 because of

the time constrains. Here, convenient sampling technique has been adopted for collecting

the primary data.

2. Statistical tools

For analyzing the data, statistical tables and percentages were used.

3. Limitations

The study was restricted to only those clients who were related to Reliance

Communications’ products.

The study was confined within specific regions of Lucknow city only.

The sample size was limited so the results obtained from the study may not be

generalized for the whole population.

The time period of the study was not sufficient to measure the consumers’ response

effectively and reach to a more valid conclusion.

Many of the respondents may not have given the correct information due to personal

bias.

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CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

27

ANALYSIS AND INTERPRETATION

Table: 1

Q. Age group of respondents

Age Group Number of Respondents Percentage

20-25 44 44%

25-35 32 32%

35-45 18 18%

Above 45 6 6%

Total 100 100%

20-2540%

25-3529%

35-4516%

above 4515%

20-25

25-35

35-45

above 45

Figure 1: Age group of the respondents

INTERPRETATION:

44% of the respondents are between the age group 20 – 25.

32% of the respondents are between the age group 25 – 35.

18% of the respondents are between the age group 35 – 45.

6% of the respondents are above 45 years of age.

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Table: 2

Q. Occupation of the respondents.

Occupation Number of Respondents Percentage

Students 34 34%

Business 52 52%

Govt. Services 10 10%

Professionals 4 4%

Total 100 100%

Students34%

Businessmen52%

Govt. Service10%

Professionals4%

Students

Businessmen

Govt. Service

Professionals

Figure 2 : Occupation of the respondents

INTERPRETATION:

34% of the respondents are Students.

52% of the respondents are Businessmen.

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10% of the respondents are from Govt. Services.

4% of the respondents are Professionals.

Table: 3

Q. Phone/internet is being used for

Usage No. of Respondents Percentage

Business 54 54%

Official 10 10%

Personal 36 36%

Total 100 100%

Business54%

Official10%

Personal36% Business

Official

Personal

Figure 3 : Purpose of the use of phone/internet

INTERPRETATION:

54% of the respondents are using Phone/internet for business purpose.

10% of the respondents are using Phone/internet for official purpose.

36% of the respondents are using Phone/internet for personal purpose.

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Table: 4

Q. Which of the reliance post paid products are customers aware of?

Products No. of Respondents Percentage

RIM Post Paid 92 92%

FWP 60 60%

Broadband 74 74%

HSDC 47 47%

Total 100 100%

RIM Post Paid, 92

FWP, 60

Broadband, 74

HSDC, 47

0

10

20

30

40

50

60

70

80

90

100

RIM Post Paid FWP Broadband HSDC

Series1

Figure 4 : Awareness of the products

INTERPRETATION:

92% of the respondents are aware of RIM Post Paid.

60% of the respondents are aware of FWP.

31

74% of the respondents are aware of Broadband.

47% of the respondents are aware of HSDC.

Table: 5

Q. How do you come to know about the products?

Medium No. of Respondents Percentage

Television 52 52%

Print 34 34%

Sales Executives 5 5%

Friends and existing users 9 9%

Total 100 100%

Television52%Print

34%

Sales Executives

5%

Friends and existing users

9% Television

Print

Sales Executives

Friends and existingusers

Figure 5 : Medium through which customers came to know about the products

INTERPRETATION:

52% of the respondents came to know about the products through television.

32

34% of the respondents came to know about the products through print.

5% of the respondents came to know about the products through sales executives.

9% of the respondents came to know about the products through friends and

existing users.

Table: 6

Q. Which of the following products are you using?

Products No. of Respondents Percentage

RIM Post Paid 13 13%

FWP 41 41%

Broadband 20 20%

HSDC 26 26%

Total 100 100%

RIM Post Paid13%

FWP41%

Broadband20%

HSDC26% RIM Post Paid

FWP

Broadband

HSDC

Figure 6 : No. of respondents using the products

INTERPRETATION:

33

13% of the respondents were using RIM Post Paid.

41% of the respondents were using FWP.

20% of the respondents were using Broadband.

26% of the respondents were using HSDC.

Table: 7

Q. Are you satisfied with the service provided by the company?

Level No. of Respondents Percentage

Fully Satisfied 38 38%

Partially Satisfied 51 51%

Not Satisfied 11 11%

Total 100 100%

Fully Satisfied38%

Partially Satisfied

51%

Not Satisfied11%

Fully Satisfied

Partially Satisfied

Not Satisfied

Figure 7 : Satisfaction level of the respondents

INTERPRETATION:

34

38% of the respondents were fully satisfied with the services.

51% of the respondents were partially satisfied with the services.

11% of the respondents were not satisfied with the services.

Table: 8

Q. What are the major reasons for dissatisfaction?

Reasons No. of Respondents Percentage

Poor quality of

signals/network 15 15%

Poor voice quality 4

Higher cost 27 27%

Slow speed 13 13%

Billing errors 19 19%

Poor customer care service 22 22%

Total 100 100%

Poor quality of signals/network

15%

Poor voice quality

4%

Higher cost27%

Slow speed13%

Billing errors19%

Poor customer care service

22%

Poor quality ofsignals/network

Poor voice quality

Higher cost

Slow speed

Billing errors

Poor customer careservice

Figure 8 : Major reasons for dissatisfaction

35

INTERPRETATION:

15% of the respondents were dissatisfied by poor signals/network.

4% of the respondents were dissatisfied by poor voice quality.

27% of the respondents were dissatisfied by higher cost of services.

13% of the respondents were dissatisfied by slow speed.

19% of the respondents were dissatisfied by the billing errors.

22% of the respondents were dissatisfied by poor customer care service.

Table: 9

Q. Which of the following products does a sales executive tells you about when he

visits you?

Products No. of Respondents Percentage

RIM Post Paid 73 73%

FWP 59 59%

Broadband 41 41%

HSDC 46 46%

Total 100 100%

RIM Post Paid, 73

FWP, 59

Broadband, 41HSDC, 46

0

10

20

30

40

50

60

70

80

RIM Post Paid FWP Broadband HSDC

Series1

Figure 9 : Products told by sales executives to the respondents

36

INTERPRETATION:

73% of the respondents were told about the RIM Post Paid by the visiting sales

executives.

59% of the respondents were told about the FWP by the visiting sales executives.

41% of the respondents were told about the broadband by the visiting sales

executives.

46% of the respondents were told about the HSDC by the visiting sales

executives.

Table: 10

Q. What channel would you prefer to buy a telecom/internet service?

Channel No. of respondents Percentage

Home delivery 18 18%

Customer care 57 55%

Online 9 9%

Franchisee & utility shops 16 13%

Total 100 100%

Figure 10: Respondents’ preference of buying channels

37

Home delivery18%

Customer care 57%

Online9%

Franchisee & Utility shops

16%Home delivery

Customer care

Online

Franchisee & utility shops

INTERPRETATION:

18% of the respondents would prefer to buy the service through home delivery.

57% of the respondents would prefer to buy the service through customer care.

9% of the respondents would prefer to buy the service online.

16% of the respondents would prefer to buy the service through franchisee &

utility shops.

Table: 11

Q. Which of the following services you look before choosing the product?

Service No. of respondents Percentage

Price 84 84%

Connectivity 46 46%

Speed 51 51%

Value added service 23 23%

After sales service 62 62%

Total 100 100%

Price, 84

Connectivity, 46Speed, 51

Value added service, 23

After sales service, 62

0

10

20

30

40

50

60

70

80

90

Price Connectivity Speed Value addedservice

After salesservice

Series1

Figure 11: Features considered by the customers

38

INTERPRETATION:

84% of the respondents consider price before choosing the product.

46% of the respondents consider connectivity before choosing the product.

51% of the respondents consider speed before choosing the product.

23% of the respondents consider value added services before choosing the

product.

62% of the respondents consider after sales service before choosing the product.

Table: 12

Q. If price and mobility is not a concern, which of the following would a customer

buy?

Product No. of respondents Percentage

Land line phone 06 6%

Fixed wireless phone 17 17%

Mobile based on GSM

technology 77 77%

Mobile based on CDMA

technology 0 0%

Total 100 100%

39

Land line phone, 6

Fixed wireless phone, 17

Mobile based on GSM

technology, 77

Mobile based on CDMA

technology, 0

Land line phone

Fixed wireless phone

Mobile based on GSMtechnology

Mobile based on CDMAtechnology

Figure12: Customers' preferences

INTERPRETATION:

6% of the respondents would buy land line phone, if price and mobility is not a

concern.

17% of the respondents would buy fixed wireless phone, if price and mobility is

not a concern.

77% of the respondents would buy mobile based on GSM technology, if price and

mobility is not a concern.

0% of the respondents would buy mobile based on CDMA technology, if price

and mobility is not a concern.

Table: 13

Q. Would a customer like to recommend reliance services to others?

Opinion No. of respondents Percentage

Yes 63 63%

No 37 37%

Total 100 100%

40

yes63%

no37%

yes

no

Figure 13: Opinion on recommending to others

INTERPRETATION:

63% of the respondents would recommend reliance services to others.

37% of the respondents would not recommend reliance services to others.

Table: 14 (a)

Q. Rate the following services on the basis of your satisfaction.

1) Network:

Satisfaction Level No. of respondents Percentage

Excellent 11 11%

Very good 18 18%

41

Good 21 21%

Average 32 32%

Poor 18 18%

Total 100 100%

Excellent11%

Very good18%

Good21%

Average32%

Poor18%

Excellent

Very good

Good

Average

Poor

Figure14-a: Satisfaction level for network

INTERPRETATION:

11% of the respondents rated excellent for the network.

18% of the respondents rated very good for the network.

21% of the respondents rated good for the network.

32% of the respondents rated average for the network.

18% of the respondents rated poor for the network.

Table: 14 (b)

2) SMS Rates:

Satisfaction Level No. of respondents Percentage

Excellent 5 5%

Very good 27 27% 42

Good 41 41%

Average 18 18%

Poor 9 9%

Total 100 100%

Excellent5%

Very good27%

Good41%

Average18%

Poor9%

Excellent

Very good

Good

Average

Poor

Figure14-b: Satisfaction level for SMS rates

INTERPRETATION:

5% of the respondents rated excellent for SMS rates.

27% of the respondents rated very good for SMS rates.

41% of the respondents rated good for SMS rates.

18% of the respondents rated average for SMS rates.

9% of the respondents rated poor for SMS rates.

Table: 14 (c)

3) New schemes and offers:

Satisfaction Level No. of respondents Percentage

Excellent 6 6% 43

Very good 20 20%

Good 27 27%

Average 34 34%

Poor 13 13%

Total 100 100%

Excellent6% Very good

20%

Good27%

Average34%

Poor13%

Excellent

Very good

Good

Average

Poor

Figure 14-c: Satisfaction level for new schemes and offers

INTERPRETATION:

6% of the respondents rated excellent for new schemes and offers.

20% of the respondents rated very good for new schemes and offers.

27% of the respondents rated good for new schemes and offers.

34% of the respondents rated average for new schemes and offers.

13% of the respondents rated poor for new schemes and offers.

Table: 14 (d)

4) Internet speed:

44

Satisfaction Level No. of respondents Percentage

Excellent 4 9%

Very good 7 15%

Good 21 46%

Average 8 17%

Poor 6 13%

Total 46 100%

Excellent9% Very good

15%

Good46%

Average17%

Poor13%

Excellent

Very good

Good

Average

Poor

Figure 14-d: Satisfaction level for internet speed

INTERPRETATION:

9% of the respondents rated excellent for internet speed.

15% of the respondents rated very good for internet speed.

46% of the respondents rated good for internet speed.

17% of the respondents rated average for internet speed.

13% of the respondents rated poor for internet speed.

Table: 14 (e)

5) Cost:

45

Satisfaction Level No. of respondents Percentage

Excellent 2 2%

Very good 14 12%

Good 16 16%

Average 63 63%

Poor 5 5%

Total 100 100%

Excellent2%

Very good14%

Good16%

Average63%

Poor5% Excellent

Very good

Good

Average

Poor

Figure14-e: Satisfaction level for cost

INTERPRETATION:

2% of the respondents rated excellent for cost.

14% of the respondents rated very good for cost.

16% of the respondents rated good for cost.

63% of the respondents rated average for cost.

5% of the respondents rated poor for cost.

Table: 14 (f)

46

6) Customer care:

Satisfaction Level No. of respondents Percentage

Excellent 0 0%

Very good 14 14%

Good 23 23%

Average 31 31%

Poor 32 32%

Total 100 100%

Excellent0%

Very good14%

Good23%

Average31%

Poor32%

Excellent

Very good

Good

Average

Poor

Figure14-f: Satisfaction level for customer care

INTERPRETATION:

0% of the respondents rated excellent for customer care.

14% of the respondents rated very good for customer care.

23% of the respondents rated good for customer care.

31% of the respondents rated average for customer care.

32% of the respondents rated poor for customer care.

Table: 14 (g)

47

7) Recharge outlets:

Satisfaction Level No. of respondents Percentage

Excellent 10 10%

Very good 19 19%

Good 51 51%

Average 13 13%

Poor 7 7%

Total 100 100%

Excellent10%

Very good19%

Good51%

Average13%

Poor7%

Excellent

Very good

Good

Average

Poor

Figure 14-g: satisfaction level for recharge outlets

INTERPRETATION:

10% of the respondents rated excellent for recharge outlets.

19% of the respondents rated very good for recharge outlets.

51% of the respondents rated good for recharge outlets.

13% of the respondents rated average for recharge outlets.

7% of the respondents rated poor for recharge outlets.

Table: 14 (h)

48

8) Call Rates:

Satisfaction Level No. of respondents Percentage

Excellent 7 7%

Very good 11 11%

Good 59 59%

Average 33 33%

Poor 0 0%

Total 100 100%

Excellent6%

Very good10%

Good54%

Average30%

Poor0%

Excellent

Very good

Good

Average

Poor

Figure14-h: Satisfaction level for call rates

INTERPRETATION:

7% of the respondents rated excellent for call rates.

11% of the respondents rated very good for call rates.

59% of the respondents rated good for call rates.

33% of the respondents rated average for call rates.

0% of the respondents rated poor for call rates.

49

Table: 14 (i)

9) Value added services:

Satisfaction Level No. of respondents Percentage

Excellent 43 43%

Very good 39 39%

Good 11 11%

Average 7 7%

Poor 0 0%

Total 100 100%

Excellent43%

Very good39%

Good11%

Average7%

Poor0%

Excellent

Very good

Good

Average

Poor

Figure 14-i: Satisfaction level for value added services

INTERPRETATION:

43% of the respondents rated excellent for value added services.

39% of the respondents rated very good for value added services.

11% of the respondents rated good for value added services.

7% of the respondents rated average for value added services.

50

0% of the respondents rated poor for value added services.

CHAPTER 5

FINDINGS AND

RECOMMENDATIONS

51

FINDINGS AND RECOMMENDATIONS:

The company should emphasize more on the spreading the awareness for their

products because the level of awareness of their FWP, Broadband, HSDC is very

low.

The sales executives should play a major part in spreading awareness because

only 5% of the people came to know about the products through sales executives.

Sales executives may also help the company generating prospects, hence sales for

the company.

The RIM post paid has seen a major decline in its users because of the tough

competition given by the prepaid services. Hence the company should now focus

more on the internet services as there is a huge market for them to cover.

Around 2/3rd of the people are dissatisfied and majority of them reasons are poor

customer care service, billing errors and higher cost. So the company should train

their employees properly so that they have sufficient knowledge about the

products and the bills should be made more transparent so that the customers

could easily understand them.

The sales executives are not properly trained as they could not explain the

schemes properly so they just try to tell to the customer about their RIM post paid

service and not about other three services. This is the main reason for the lack in

sales of their internet services.

A majority of the customers look for the price and after sales services before

choosing the products. So the company should plan accordingly to increase their

sales.

As seen from the survey results, more than 3/4th of the population prefer to buy a

mobile based on GSM technology. So the newly launched GSM based mobile

phones should be promoted accordingly.

52

Half of the population interviewed rated either average or poor for the network.

So network can be improved by planting more towers in different parts of the city

where the company does not have the signals.

More than 3/4th of the population does not like the new schemes and offers

introduced by the company. So a proper survey should be conducted and more

attractive and useful schemes must be introduced.

The cost of the products is too high for the customer to buy them. Moreover the

major problem is that several packs are activated without any prior intimation and

their price is included in the bills later, which is the major reason for

dissatisfaction.

Around 2/3rd of the people gave average or poor ratings to the customer care and

said that their complaints are either not heard or they are dealt very late.

The company should emphasize more on reducing the call rates and introducing

attractive value added services which would help them improve their sales.

53

CONCLUSION:

As there is a healthy competition given by the existing players in the industry, lack or

degradation in any of the services may affect the company badly. With the excellent rural

awareness and rural market share in telecom services, the company should also try to

boost up their urban market share. This could only be done with the help of a team of

properly trained and dedicated employees. Moreover there is a huge market for the

internet sector which can be captured by giving the customer, the services according to

their needs.

54

BIBLIOGRAPHY

http://www.indiaonestop.com/fdi-telecom.htm

http://www.trai.gov.in/Default.asp

http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

http://trak.in/Tags/Business/category/telecommunication/

55

ANNEXURE

QUESTIONNAIRE

PERSONAL DETAILS

1) Name:2) Age:3) Gender:4) Address:5) Contact Number:6) Phone/Internet is used for following purpose: a) Business b) Official c) Personal

Q1. Which of the following Reliance post paid products are you aware of?1). Reliance India Mobile (RIM Post Paid)2). Fixed Wireless Phone (FWP)3). Broadband4). High Speed Data Card (HSDC)

Q2. How did you come to know about the products?1). Television 2). Print3). Sales Executives4). Friends and Existing Users5). Other (Please Specify) ………………………………………

Q3. Which of the following products are you using?1). Reliance India Mobile (RIM Post Paid)2). Fixed Wireless Phone (FWP)3). Broadband4). High Speed Data Card (HSDC)

Q4. Are you satisfied with the service provided by the subscriber?1). Fully Satisfied2). Partially Satisfied3). Not Satisfied

56

Q5. If your response to the above is partially satisfied or not satisfied, then what are the reasons for your dissatisfaction?1). Poor Quality of Signals/Network2). Poor Voice Quality3). Higher Cost4). Slow Speed 5). Billing Errors6). Poor Customer Care Service7). Any Other (Please Specify) …………………………………

Q6. When a sales executive comes to you, which of the following products does he frequently tells about?1). Reliance India Mobile (RIM Post Paid)2). Fixed Wireless Phone (FWP)3). Broadband4). High Speed Data Card (HSDC)

Q7. What channel would you prefer to buy a telecom/internet service?1). Home Delivery2). Customer Care3). Online4). Franchisee & Utility Shops

Q8. Which of the following service you look before choosing the product?1). Price2). Connectivity3). Speed4). Value Added Services5). After Sales Service6). Any Other (Please Specify) ……………………………..

Q9. If Price and mobility is not a concern, which of the following would you prefer to buy?1). Land Line Phone2). Fixed Wireless Phone3). Mobile based on GSM Technology4). Mobile based on CDMA Technology

Q10. Would you like to recommend reliance services to others?1). Yes2). No

11). Rate the following services on the basis of your satisfaction.

Services Excellent Very Good Good Average Poor

57

Network

SMS Rates

New Schemes & Offers

Internet Speed

Cost

Customer Care

Recharge Outlets

Call Rates

Value Added Services

12). Suggestions (If Any):

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

58