1. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
NEWGATE INDIA
Hyderbad, Andhra Pradesh
Pin- 500038
MARKET RESEARCH
A study on satisfaction level of GSM customers
Research Report
Website: www.newgate.in
Email: contact@newgate.in
Slideshare URL :
http://www.slideshare.net/newgateindia
NEWGATE INDIA, Bangalore Page 1
2. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Dissertation Report on
Cause & affect relationship to measure
satisfaction level of GSM customers.
In partial fulfillment of the Course: Dissertation
In Term – VIII of the
Post Graduate Program in Management
(Batch: Jan. 2010 – 2012)
Prepared by
SUNAM PAL
Registration No:
NEWGATE INDIA, Bangalore Page 2
3. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Table of Contents
Executive Summary ............................................................................................................ 13
Chapter - 1 Introduction .......................................................................................................... 14
1A Introduction about study .................................................................................................. 14
1A.1 Research Overview .................................................................................................................... 14
1A.2 Purpose of conducting research .............................................................................................. 15
1A.3 Research Motivation.................................................................................................................. 15
1B Research problem ................................................................................................................ 15
1C Research topic ...................................................................................................................... 15
1D Research objective .............................................................................................................. 16
1D.1 List of proposed objectives in synopsis ................................................................................ 16
1D.2 Proposed Hypothesis ................................................................................................................ 16
1D.3 Assumptions considered .......................................................................................................... 16
1E Need and Scope of study.................................................................................................... 17
1E.1 Need .............................................................................................................................................. 17
1E.2 Scope ............................................................................................................................................. 17
1E.3 Relevance to real world ............................................................................................................. 17
1F. Limitations of the study .................................................................................................... 18
1G Industry Overview ............................................................................................................. 18
1G.1 Industry Details ......................................................................................................................... 18
1G.1.1 Scope of Telecom sector in India ............................................................................................. 18
1G.1.2 Regulatory framework............................................................................................................. 19
1G.1.3 Evolution of Telecom sector in India...................................................................................... 19
1G.1.4 Role of Telecom sector in Indian Economy ............................................................................ 20
1G.1.5 GSM (Global System for Mobile Communications) .............................................................. 21
1G.1.6 Benefits of GSM over CDMA ............................................................................................. 21
1G.2 Global context ............................................................................................................................ 21
NEWGATE INDIA, Bangalore Page 3
4. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.2.1 World Telecom Sector ............................................................................................................. 22
1G.2.2 Growth of Telecom sector world wide ..................................................................................... 22
1G.3 Indian context ............................................................................................................................. 23
1G.3.1 Growth In Subscriber Base ..................................................................................................... 23
1G.3.2 Top Seven Operators – GSM + CDMA – Monthly Net Additions ....................................... 24
1G.3.3 All India Wire line Subscriber Base ........................................................................................ 25
1G.4 Current market scenario ........................................................................................................... 25
1G.4.1 Growth of subscriber base ....................................................................................................... 25
1G.4.2 Growth of Wire Line ............................................................................................................... 26
1G.4.3 Growth of Wireless Subscriber................................................................................................ 27
1G.4.4 Growth of Internet Subscriber ................................................................................................ 27
1G.4.5 Growth of Broadband subscriber............................................................................................. 28
1G.4.6 Growth of Tele density at India .............................................................................................. 28
1G.4.7 Growth of Wireless (GSM and CDMA) Services ................................................................... 29
1G.5 Future Projections ...................................................................................................................... 29
1G.5.1 Revenue & Market Share ........................................................................................................ 29
1G.5.2 GDP and Employment ............................................................................................................ 30
1G.5.3 Future Technology .................................................................................................................. 30
1G.6 Major Market players in world market ................................................................................. 31
1G.7 Major Market players in Indian market ................................................................................ 32
1G.8 Market Share ............................................................................................................................. 36
1G.8.1 Market Share of GSM service in India .................................................................................. 36
1G.8.2 Market Share regional basis in World .................................................................................... 37
1G.8.3 Market Share Regional basis in India ..................................................................................... 38
Chapter - 2 Review of Literature ............................................................................................ 39
2A. Research papers published ........................................................................................................ 39
2B. Articles published ....................................................................................................................... 42
2C. Case Studies published............................................................................................................... 44
2B. Books published ........................................................................................................................... 45
Chapter - 3 Research Methodology ....................................................................................... 46
3A Research Design ................................................................................................................ 46
3A.1 Research Framework ................................................................................................................ 46
NEWGATE INDIA, Bangalore Page 4
5. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
3A.2 Research Approach ................................................................................................................... 47
3A.2.1 PHASE1:................................................................................................................................. 47
3A.2.2 PHASE2:................................................................................................................................. 47
3A.2.3 PHASE3:................................................................................................................................. 48
3A.3 Type of Research ........................................................................................................................ 48
3B Sources of data ..................................................................................................................... 48
3B.1 Primary data: ............................................................................................................................... 48
3B.2. Secondary data: .......................................................................................................................... 49
3C Sampling of data ................................................................................................................. 49
3C.1 Nature of Sampling ................................................................................................................... 49
3C.2 Sampling Type............................................................................................................................ 49
3C.3 Sample Size ................................................................................................................................. 50
3C. 4 Target Sample ............................................................................................................................ 50
3D. Primary scales used ........................................................................................................... 51
3E. Data Collection Methods .................................................................................................. 52
3F. Analysis tool used............................................................................................................... 52
3G. Overview of work .............................................................................................................. 53
3G.1 Tasks accomplished................................................................................................................... 53
3G.2 Software package/ tools used .................................................................................................. 54
3G.3 Meeting with target people. ..................................................................................................... 55
3H. Questionnaire & Interview Questions .......................................................................... 55
3H.1 Phase 1: Online survey questions ........................................................................................... 55
3H.1.1 Purpose of survey Questions: ................................................................................................ 61
3H.1.2 Primary scale applied: ............................................................................................................ 61
3H.2 Phase-2 Interview Questions ................................................................................................... 61
3H.2.1 Purpose of interview Questions .............................................................................................. 62
3H.2.2 Primary Scale applied ............................................................................................................. 63
3H.3 Phase 3 Online survey questions ............................................................................................ 63
3G.H.1 Purpose of interview Questions ............................................................................................. 68
3H.3.3 Primary Scale applied ............................................................................................................. 68
3H.4 Question distribution based on objectives ........................................................................... 69
3G.5 Question distribution based on analysis tool ...................................................................... 69
NEWGATE INDIA, Bangalore Page 5
6. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Chapter – 4 Observation, Analysis & Interpretation ......................................................... 70
4A Observation during data collection ............................................................................... 70
4A.1 Key Observation during research ........................................................................................... 70
4A.2 Problems faced during survey ................................................................................................. 71
4A.3 Customer Survey response patterns ....................................................................................... 71
4A.3.1 Ideal Timings for Interview & online survey.......................................................................... 71
4A.3.2 Mode of communication for interviewers ............................................................................... 72
4A.3.3 Survey response barrier .......................................................................................................... 73
4A.3.4 Customer response chart ......................................................................................................... 74
4A.3.5 Customer response pyramid.................................................................................................... 75
4A.4 Common errors committed ...................................................................................................... 76
4B. Analysis & Interpretation of Data collected ................................................................. 76
4B.1 Phase:1 , Identification & Priortization of key Factor ........................................................ 76
4B.1.1 Factor Frequency Table ........................................................................................................... 77
4B.1.2 Factor Priority Matrix ............................................................................................................ 78
4B.3 Interpretation : ............................................................................................................................ 79
4B.4 Phase:1 Graphical Analysis ...................................................................................................... 79
4B.4 Interpretation of Graphical analysis:...................................................................................... 82
4B.5 Phase:2 Interview Analysis....................................................................................................... 83
4B.5.1 Interview Analysis Result ....................................................................................................... 83
4B.6 Interpretation of interview results .......................................................................................... 86
4B.7 Market share analysis ................................................................................................................ 87
4B.7.1 Market Share chart .................................................................................................................. 87
4B.7.1 Market share Frequency Table ................................................................................................ 87
4B.8 Interpretation on market players............................................................................................. 88
4B.9 Phase: 3 Survey graphical analysis ......................................................................................... 89
4B.10 Interpretation of graphical analysis ...................................................................................... 94
4C SPSS software output Analysis ........................................................................................ 94
4C.1 Reliability Test ........................................................................................................................... 94
4C.1.1 Sample Size ............................................................................................................................. 95
4C.1.2 SPSS output ........................................................................................................................... 95
4C.2 Interpretation .............................................................................................................................. 95
NEWGATE INDIA, Bangalore Page 6
8. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
5B Key findings from observation....................................................................................... 115
5C Null hypothesis Acceptance............................................................................................ 117
5D Findings on individual objectives proposed .............................................................. 118
Chapter – 6 Recommendation ............................................................................................... 119
6A. Key Suggestions .............................................................................................................. 119
6B. Key Guidelines ................................................................................................................. 119
6C. Do’s & Don’ts .................................................................................................................... 120
6C.1 Do’s ............................................................................................................................................. 120
6C.2 Don’ts ......................................................................................................................................... 120
Chapter - 7 Conclusion ........................................................................................................... 121
Chapter - 8 Learning Outcome ............................................................................................. 122
Chapter - 9 Scope for further Research ............................................................................... 123
9A. Uncovered areas of Research ......................................................................................... 123
9B. How to explore this new areas ....................................................................................... 123
9C. Future Scope ...................................................................................................................... 124
9D. Formulation of new objectives...................................................................................... 124
APPENDIX-A ........................................................................................................................... 126
APPENDIX-B ........................................................................................................................... 130
APPENDIX- C .......................................................................................................................... 131
APPENDIX- D.......................................................................................................................... 132
APPENDIX - E ......................................................................................................................... 133
APPENDIX - F .......................................................................................................................... 134
APPENDIX - G......................................................................................................................... 135
APPENDIX - H......................................................................................................................... 136
APPENDIX - I .......................................................................................................................... 137
Abbreviation ............................................................................................................................ 138
Glossary .................................................................................................................................... 140
References................................................................................................................................. 145
NEWGATE INDIA, Bangalore Page 8
9. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
List of Figures
Figure No Title Page No.
FIGURE : 1.1 Phases of telecom evolution 21
FIGURE : 1.2 Role of telecom sector 28
FIGURE : 3.1 Research Design 48
FIGURE : 3.2 Research Approach 49
FIGURE : 4.1 Mode of communication 74
FIGURE : 4.2 Survey response barrier 75
FIGURE : 4.3 Customer Response pyramid 77
FIGURE : 4.4 Discriminant analysis Centroid 112
List of Tables
Table No Title Page No.
TABLE : 1.1 Research objectives proposed 18
TABLE : 1.2 Research hypothesis proposed 18
TABLE : 3.1 Software tool used 56
TABLE : 3.2 Primary scale applied in Phase:1 Survey 63
TABLE : 3.3 Primary scale applied in Phase:2 Survey 65
TABLE : 3.4 Primary scale applied in Phase:3 Survey 70
TABLE : 3.5 Question distribution based on objectives 71
TABLE : 3.6 Question distribution based on analysis tool 71
TABLE:4.1A Ideal Timings for conducting Interview 73
TABLE:4.1B Ideal Timings for conducting online survey 74
TABLE : 4.2 Factor frequency Table 79
TABLE : 4.3 Factor priority matrix 80
TABLE : 4.4 Market Share frequency table 89
TABLE : 4.5 Cross tabulation Gender Vs. Place 113
TABLE : 4.6 Cross tabulation Age Vs. Place 114
TABLE : 5.1 Null hypothesis acceptance/rejection 119
TABLE : 5.2 Findings on individual objectives 120
NEWGATE INDIA, Bangalore Page 9
10. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
List of Charts : Series 1.1- 4.19
Chart No Title Page No
Chart 1.1 Worldwide Telecom Industry Revenue in billions 24
Chart 1.2 Growth in Subscriber Base in million 25
Chart 1.3 Top Seven Operators – GSM + CDMA – Monthly Net Additions 26
Chart 1.4 All India Wire line Subscriber Base 27
Chart 1.5 Growth of subscriber base in India 28
Chart 1.6 Growth of Wire Line in India 28
Chart 1.7 Growth of Wireless Subscriber in India 29
Chart 1.8 Growth of Internet Subscriber in India 29
Chart 1.9 Growth of Broadband subscriber in India 30
Chart 1.10 Growth of Tele density in India 30
Chart 1.11 Growth of Wireless (GSM and CDMA) Services 31
Chart 1.12 Market Share of GSM service in India 38
Chart 1.13 Market Share Region Wise in World 39
Chart 1.14 Market Share Region Wise in India 40
Chart 4.1 Customer response chart survey phase:1 76
Chart 4.2 Customer response interview phase:2 76
Chart 4.3 Customer response chart survey phase:3 76
Chart 4.4 Phase:1 Gender Classification 81
Chart 4.5 Phase:1 Customer's stay in India 81
Chart 4.6 Phase:1 Number of mobile operators SIM used 82
Chart 4.7 Phase:1 Mobile connection ( Prepaid/Postpaid) 82
Chart 4.8 Phase:1 Customer factor 82
Chart 4.9 Phase:1 Customer’s choice influence by Parents 82
Chart 4.10 Phase:1 Customer’s choice influence by Spouse 82
Chart 4.11 Phase:1 Customer’s choice influence by Girl/Boy Friend 83
Chart 4.12 Phase:1 Customer’s choice influence by Friends 83
Chart 4.13 Phase:1 Customer’s choice influence by Kids 83
Chart 4.14 Phase:1 Customer’s choice influence by Siblings 83
Chart 4.15 Phase:1 Customer’s choice influence by cousins 83
Chart 4.16 Phase:1 Customer’s choice influence by relatives 83
Chart 4.17 Phase:1 Customer’s choice influence by office peers 84
Chart 4.18 Phase:1 Customer’s choice influenced by organization 84
Chart 4.19 Phase:1 Customers willingness to contact further. 84
NEWGATE INDIA, Bangalore Page 10
11. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
List of Charts : Series 4.20- 4.52
Chart No Title Page No
Chart 4.20 Percentage of GSM SIM depending upon company 85
Chart 4.21 Percentage of Working professional using GSM service 85
Chart 4.22 Choice of GSM SIM influenced by location 86
Chart 4.23 percentage of people using dual SIM 86
Chart 4.24 percentage of people think dual SIM is useful 86
Chart 4.25 Percentage of people using GPRS & Internet 87
Chart 4.26 Tariff rates 87
Chart 4.27 Calculated market share 89
Chart 4.28 Phase:3 Gender classification 91
Chart 4.29 Phase:3 Age classification 91
Chart 4.30 Phase:3 Geographical classification 91
Chart 4.31 Ratings to favorite SIM 92
Chart 4.32 Ratings to SIM people disliked the most 92
Chart 4.33 Rating to Favorite GSM for Service Quality 92
Chart 4.34 Rating to SIM they disliked the most for Service Quality 92
Chart 4.35 Frequency vote for favorite GSM SIM 93
Chart 4.36 Frequency vote for to SIM they disliked the most 93
Chart 4.37 Rating to Favorite GSM for Benefit for Money 93
Chart 4.38 Rating to SIM they disliked the most for Benefit for Money 93
Chart 4.39 Rating to Favorite GSM for Price rates 94
Chart 4.40 Rating to SIM they disliked the most for Price rates 94
Chart 4.41 Rating to Favorite GSM for Network Busy 94
Chart 4.42 Rating to SIM they disliked the most for Network Busy 94
Chart 4.43 Rating to Favorite GSM for Additional Services 94
Chart 4.44 Rating to SIM they disliked the most for Additional Services 94
Chart 4.45 Rating to Favorite GSM for customer care service 95
Chart 4.46 Rating to SIM they disliked the most for customer care service 95
Chart 4.47 Rating to Favorite GSM for Sound clarity 95
Chart 4.48 Rating to SIM they disliked the most for sound clarity 95
Chart 4.49 Rating to Favorite GSM for customer operational Performance 95
Chart 4.50 Rating to SIM they disliked the most for operational Performance 95
Chart 4.51 Age vs. Place cross tabulation 114
Chart 4.52 Gender vs. Place cross tabulation 115
NEWGATE INDIA, Bangalore Page 11
12. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Reader’s Note
1. Any number marked within braces [ ] in italics; at the end of sentence or paragraph/
on heading/ below figure or chart, indicates that its source is mentioned in
Reference section, with serial number as mentioned inside the braces.
Example : [25], Refrerence[25]; Source [25] : Means it is refered from
http://www.airtle.in whose serial number is 25 in Reference section , Page:151
2. Any word marked within braces [ ] in italics; indicates that it is an abbreviation term,
whose full form is mentioned in Abbreviation section.
Example : [FDI] : Its full form is “ Foreign Direct Investment ” , which can be
found in Page:141, at end of this report.
3. Any word in italics starting with ‘*’ mark indicates that its meaning is defined in
glossary of market research terms arranged alphabetically.
Example : *Mean : It is defined as “an average found by summing all observations”
in Glossary section, Page : 144, at end of this report.
4. Any sentence quoted as “Note:” within braces [ ] in italics indicates that the above
content is further extended to/ better clarified with details in, Appendix table, figure
or chapter number as mentioned on the note.
Example : “ [Note: Find list of respondents in Appendix : A] ” means it is
mentioned in details in Apendix : A, Page : 128, at end of this report.
NEWGATE INDIA, Bangalore Page 12
13. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Executive Summary
In India telecommunication [GSM] service has played an important role in people’s life
since early 2000. Telecomminication Industry is one of world’s fastest growing
Industry. GSM (Global System for Mobile Communication) technologies are used in the
Indian mobile sector very extensively at current times. In India there are currently
826.39 million mobile phone subscriber as on April-2011 reported by [TRAI] [37].
Rising comptetition from various telecom operators in India due to privatization, [FDI] flow,
liberazation of telecom industry, ease of tariff rates & bandwidth allocation by governtment
have made telecom sector more prone for rapid innovation in market approach, to pick up
the gap in customers expectations. Now the companies are trying to retain their
customers by providing various offers.
They are trying to make their customer loyal to their existing brand. The
Indian consumers are enjoying wide range of services at the lowest possible tariffs
rate in the world. Prices of teclecom services have started falling significantly due to
price wars . In India mobile operators keeps on coming with new offers, festival
discounts, free [sms] , [mms] ,unlimited basket offer, internet options, no roaming
charges which motivates customers to go for new operators and sometimes it also
creates a lot of confusion while choosing operators due to ambiguity on personal
pereferance. Various other alternatives like internet, [GPRS], [GPS], [3G], broadband
connections have always attracted customers to go for new mobile operators.
This research establishes a relationship between satisfaction level and
various factors that would help in understanding the post purchase evaluation
criteria set by customers. The sector chosen is particularly [GSM] cellular service in
India. It identifies various factors that influence consumer post purchase evaluation,
prioritizes them and then finally demonstrates a relationship equation between those
factors & customer satisfaction level. Research have also focused on understanding the
market share of various [GSM] operators, different tariff plans that customers prefer to
avail, average call rates customers look for, extent to the usage of [GPRS]/Internet and
other features like application download and ringtones subscription.
It also throws light on people or factors influencing buying decision that makes
customer stick to any particular [GSM] operator over a period of time. This research
will give a broad scope for marketers & product managers to promote & design [GSM]
services in such a way that it has competitive edge over others. It will help in
developing customer satisfaction level metrics that can can help in predicting
customer response beforehand. It would support how customer loyalty can be gained
through effective [GSM] cellular service & which attributes needs to be given the top
most priorities. It will give deeper insight to marketers about how to modify service
features on timely basis that can best fit to their target market and design the product
in such a way that it is able to differentiate from rest of the market players.
NEWGATE INDIA, Bangalore Page 13
14. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Chapter - 1
Introduction
1A Introduction about study
This is purely a cause affect research that has establish relationship between
satisfaction level and various factors that would help in understanding the post
purchase evaluation criteria set by customers.
1A.1 Research Overview
The industry chosen is Telecom Industry & product is [GSM] cellular mobile SIM.
This research other than just only setting 3 primary objectives as [Note: as
mentioned in TABLE:1.1] , that is identifying the factors, prioritizing them and then
developing relationship equation to demonstrate cause effect relationship , have
also focused to understand the market share of various [GSM] operators, different
tariff plans that customers prefer to avail. What are the most important [STD] call
rates , local call rates and roaming rates customers look for. What is the extent to
usage of [GPRS] and internet and other features like application download, ringtones
subscription.
It had cleared out whether customer care have any role in influencing
customers buying. It has also focused on people who influence buying decision and
when customer would stick to any particular [GSM] operator. This research also
focuses on ratio quotient of prepaid versus postpaid services and gives a clarity
whether factors like current location, current employer, current organization do
play any role in choice of a particular [GSM] operator.
It will also help to understand that on what basis marketers evaluate a
particular [GSM] mobile operator in post purchase stage to decide whether they are
satisfied or not. Which factors consitute their satisfaction level & how those factors
are correlated with satisfaction level.
This research will provide a deeper insight into various customer priorties
during post purchase evaluation that sets a standard for service provider to
understand that under what circumstances customers would respond positively or
may not revert back again [1][3].
NEWGATE INDIA, Bangalore Page 14
15. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1A.2 Purpose of conducting research
To understand on what basis marketers evaluate a particular [GSM] mobile
operator on post purchase to decide whether they are satisfied or not. To know
what factors consitute their satisfaction level & how those factors are correlated
with satisfaction level.
Also to get a deeper insight into various customer priorties during post
purchase evaluation that sets a standard for service provider to understand what
are various customers preferances and under what circumstances customers
would respond positively or may not revert back again.
[Note: All findings against each purpose is mentioned in Appendix-C/ Table 5.2 ]
1A.3 Research Motivation
Being from telecommunication background with Bachelor of technology in
Electronics telecommunication Engineering, it was very much important to know,
how customer choose a particular [GSM] telecom operator . On what basis they
evaluate a particular operator after purchase. To know what factors consitute
satisfaction level & how those factors are correlated with satisfaction level.
Also to get a deeper insight from marketers point of view that how exactly
marketing stratigies work in telecom industry. This research it would also help in
acquiring bulk of information on current [GSM] market trading, tariffs plans,
customer preferances, major market players, market shares and current business
trends of [GSM] industry in India & also at global level.
1B Research problem
Problem Faced by Marketers: Difficulty in knowing the factors which makes
customer satisfied after post purchase evaluation of a particular GSM operator.
Also on what circumstances or changes being made to each of those factors will
impact on rise or fall of satisfaction level. What attributes of services is utmost
priority to customer.
1C Research topic
To identify & prioritize the factors that would make customer satisfied after
subscription to any [GSM] operator in India & deriving a cause affect relationship
between those factors & customer satisfaction level.
[Note: Customer priority matrix is mentioned in Appendix- F.1 ]
NEWGATE INDIA, Bangalore Page 15
16. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1D Research objective
1D.1 List of proposed objectives in synopsis
Table: 1.1
S.no Objectives Proposed
1. To identify the factors that would decide customers
Objective:1 satisfaction level (Sa) after they subscribe to any GSM service.
2. To prioritize those identified factors based on their impact
Objective:2 on satisfaction level of customer.
3. To design a cause affect relationship/X-Y/ statistical
Objective:3 equation to prove relationship among those factors & customer
satisfaction level.
1D.2 Proposed null hypothesis
Table: 1.2
S.no Null Hypothesis Proposed
There is a positive correlation between customer satisfaction
Hypothesis : HA0
level (Sa) & quality of service (Q).
There is a positive correlation between customer satisfaction
Hypothesis : HB0
level (Sa) & Performance of service (R).
There is a negative correlation between customer satisfaction
Hypothesis : HC0
level (Sa) & price (P).
There is a positive correlation between customer satisfaction
Hypothesis : HD0
level (Sa) & Problem addressed by customers (P).
There is a negative correlation between customer satisfaction
Hypothesis : HE0
level (Sa) & Network traffic (N).
[Note: Results of all above hypothese accepted/rejected is mentioned in Appendix-C / Table:5.1]
NEWGATE INDIA, Bangalore Page 16
17. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1D.3 Assumptions considered
Assumption:1 All locations are considered to be equivalent while undergoing analysis.
No distinction or emphasis was done based on different geographic locations.
Assumption:2 This research didn’t include impact of gender , hence responses from
both male & female were considered same.
1E Need and Scope of study
1E.1 Need
It would help in effective designing of product based on the factors influencing
customer satisfaction level as derived by the research and would support better
understanding of consumer buying behavior and their preferences.
The company which can adopt such initiative will gain competitive advantage
over others and can have better understanding of consumer buying behavior.
It will help in penetrating the market to a greater extent and will create a
potential market to cater to customers
1E.2 Scope
This research will give a broad scope for marketers & product managers to promote
& design [GSM] services in such a way that it will have competitive edge over
others. It will help in developing customer satisfaction level metrics that can be
easily measured for an average population and can help in predicting customer
response beforehand. It would support a model equation to help marketers to
modify any selected factors for an existing service that will raise current
satisfaction level . Research will also create a future scope to demonstrate how
customer loyalty can be gained through effective [GSM] cellular service & which
attributes needs to be given the top most priorities.
1E.3 Relevance to real world
[GSM] cellular service has been one of the major fast growing consumer market in
India and thus with increasing competition it would be necessary to establish
models & equations that can be implemented in real time scenario to predict &
calculate customers satisfaction level before hand and will help in understanding
that to what degree customers will be satisfied on post purchase evaluation.
This will help marketers to modify its features & existing services on timely basis
that can best fit in to their target market and design product in such a way that it is
able to differentiate from rest of the market players.
NEWGATE INDIA, Bangalore Page 17
18. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1F. Limitations of the study
This research doesn’t take into account how satisfaction level depends on
demographic factors like age, culture & gender.
It considers all geography locations & gender as same.
The research focuses only on top most factors, eliminating other factors that
may be influencing customer satisfaction level but their impact is less.
This research itself may not conclude to solutions that will help in taking
effective strategies, as the scope of this research generalizes the buying
behavior of customers in India as a whole. To be able take effective decisions, a
further extensive research has to be done *cluster wise based on age, gender,
culture & locations of consumers.
[Note: How to overcome this limitations, is mentioned in details in chapter-9, sections:
9A, 9B, 9C, 9D of this report]
1G Industry Overview
The vision of telecommunication in 2020 is a vision of information society built on
an edifice where IT and telecommunication merge. They will be striving to spread
the benefits to rural sector. More emphasis will be put on developing the human
capital, infrastructure and building capabilities and capacity for growth. The future
is visible with the advent of Web 2.0 and [MVNO] and strategies like developing
strong partnership skills, focusing on customer user groups, embracing internet
services will only enable the players to thrive well into the future.
1G.1 Industry Details
1G.1.1 Scope of Telecom sector in India
Telecommunication is important not only because of its role in bringing the benefits
of communication to every corner of India but also in serving the new policy
objectives of improving the global competitiveness of the Indian Economy and
stimulating and attracting [FDI].
Indian telecom is one of the fastest growing telecom markets in the world. In
telecom industry, service provider are the main drivers, whereas equipment
manufacturers are witnessing growth and decline in successive quarters as sale is
dependent on order undertaken by the companies. World telecom industry is going
to be a booming industry.
NEWGATE INDIA, Bangalore Page 18
19. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.1.2 Regulatory framework
The Telecom Regulatory Authority of India [TRAI] was set up in March 1997 as a
regulator for telecom sector. The TRAI’s functions are recommendatory,
regulatory and tariff setting in telecom sector. Telecom Disputes settlement and
Appellate Tribunal [TDSAT] came into existence in May 2000. [TDSAT] has been
empowered to adjudicate any dispute[34].
Between a licensor and a licensee
Between two or more service providers
Between a service provider and a group consumers
Hear and dispose of appeal against and direction, decision or order of [TRAI].
1G.1.3 Evolution of Telecom sector in India
Figure:1.1
PHASES OF EVOLUTION OF TELECOM SECTOR IN INDIA
Source [49]: http://www.dbresearch.in
NEWGATE INDIA, Bangalore Page 19
20. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Private sector companies penetrated the telecommunication market in 1984.Various kind
of equipment related to telecom sector started being manufactured. [MTNL] was formed
to promote communication in the metro city Delhi and [VSNL] got started in 1986 to
enable communicate abroad. In 1989 telecom commission was set up to regulate the
telecom sector [17]
Liberalization of Indian economy and open competition was allowed. [TRAI]
that’s is Telecom Regulatory Authority was established in 1997.New Telecom Policy
[NTP] was announced in 1999 to regulate various companies and have control on Tariffs
to meet Indian customer needs [17].
[BSNL] was established in 2000 to have [STD] connection all over India. It was
great initiative to connect whole India. National and International long distance services
came into competition. License fees were reduced. Internet telephony and [CDMA]
technology was initiated in 2000. In 2002 [VSNL] was privatized and [BSNL] launched
mobile services. Calling party pays was initiated in 2003 and broad band policy was
formulated in 2004. In 2005 [FDI] increased from 49% to 72%.Concept of number
portability was introduced in 2006 [17].
1G.1.4 Role of Telecom sector in Indian Economy
Figure:1.2
Source[49]: http://www.dbresearch.in
NEWGATE INDIA, Bangalore Page 20
21. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.1.4.1 Direct Benefits
It contributes to Indian [GDP]
It generates revenue for nation thus increasing the national income
It provides employment
1G.1.4.2 Indirect Benefits
It improves the existing flow of information system
Access of information in a simplified manner
Increases the speed of services
Increases productivity of business through voice and data services
1G.1.5 GSM (Global System for Mobile Communications)
80% of the global market uses this standards.
It is used over 1.5 billion people across globe
Across 212 countries and territories have access to [GSM] services in India.
It differs from its predecessor technologies in both signaling and speech
channels. It is a part of 2G (second generation) mobile system [18]
1G.1.6 Benefits of GSM over CDMA
Low cost in short message service [SMS]
Wider network coverage at low cost
Ability to roam and switch carriers without replacing phones[23].
1G.2 Global context
The telecom sector plays a vital role in the economic growth. In the beginning the
U.S. telephone services was provided by American Telecom and Telegraph [AT&T].
During the same period Great Britain’s national telephone company was sold to
private investors as was Japan’s [NTT] telephone monopoly[22].
NEWGATE INDIA, Bangalore Page 21
22. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.2.1 World Telecom Sector
Later [AT&T] was proving long distance connections to the other companies. In the
recent year the world’s policy makers have recognized that telecom provides key
inputs for:
Economic Development
Contributes to global integration
Enhances public sector effectiveness
Efficiency and transparency [19]
1G.2.2 Growth of Telecom sector world wide
The telecom industry has become a global combination industry. An industry is
called combination industry when it combines the other industry’s product to serve
its customers. The telecom industry is serving their customers by transporting
electronic communications which is combining with computers, media and
publishing products before being sold to its customers. Nippon Telegraph and
Telephone [NTT] provides multimedia services as part of its global telecom
business. Over the last decades the fixed line operators are affected as the
customers are using email, online chat, and mobile text messaging instead of
traditional phone calls. [19]
Chart:1.1
Worldwide Telecom Industry Revenue in billions
Source[32]: http://www.3g.co.uk/PR/Dec2005/2388.htm
NEWGATE INDIA, Bangalore Page 22
23. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Next Generation Telecommunications has become very important for the emerging
digital economy. Some important services depend on [NGT] such as tele-health, e-
education, e-business, digital media, e-government, environmental applications like
smart utility meters. [NGT] will take the form of wireless NGNs i.e. [WiMAX].
1G.3 Indian context
MARCH 09-FEB 10, top 7 [GSM] + [CDMA] telecom have added more than 100
million sub base which near about 20% of total wireless sub-bases in India.
IDEA, TATA & AIRCEL were stable but all other like AIRTEl, VODAFONE,
[BSNL] & RELIANCE were making loss of market share in last financial
year(2009).
The growth of TATA Teleservices was quite high in terms of subscribers
addition per month which was taken over by Vodafone in February 2010.
1G.3.1 Growth In Subscriber Base
Chart:1.2
Growth in Subscriber Base in million
Source [38]: http://www.trai.gov.in/annualreport
This rapid growth has been possible due to various proactive and positive
decisions of the Government and contribution of both the public and private sector.
The rapid strides in the telecom sector have been facilitated by liberal policies of
the government that provides easy market access for telecom equipment and a fair
NEWGATE INDIA, Bangalore Page 23
24. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
regulatory framework for offering telecom services to the Indian consumers at
affordable prices.
1G.3.2 Top Seven Operators – GSM + CDMA – Monthly Net Additions
Chart:1.3
Source[30]: http://telecomblogs.in/?p=776
The chart shows the monthly net income addition of Top 7 operators in regards to
aggregate of [GSM] and [CDMA] services in India. The maximum addition has been
done by AIRTEL followed by AIRCEL. Whereas RELIANCE,TATA & IDEA had lesser
monthly income compared to Vodafone and [BSNL].
1. TATA & AIRCEL showed a stable monthly addition over last year
2. Whereas Vodafone RELIANCE & IDEA were fluctuating a lot in the fiscal
year.
3. The % monthly addition of [BSNL] and AIRTEL were quite stable
NEWGATE INDIA, Bangalore Page 24
25. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.3.3 All India Wire line Subscriber Base
Chart:1.4
Source [31]: http://telecomblogs.in/wp-content/uploads/2010/04/6.jpg
If we look at the charts above, we can find out how Tata (GSM+CDMA) has
clearly dominated the sub addition scene in later half of year 2009.
In Broadband category, India has 80 lacks [BB] subscriber at the end of Feb-
10, as compared to 58 lacks in Mar-09. In implies only 2 million [BB]
subscriber additions during one year period.
1G.4 Current market scenario
The telecom sector is growing very fast in India. It has become the second largest
telecom network in the world after China. [TRAI] has introduced significant policies.
It let the telecom sector from monopolistic to open market for competition. The
Indian consumers are enjoying wide range of services at the lowest tariffs in the
world. The Indian telecom sector is growing by adding around 15 million
connections per month. It has achieved its target of 500 million before the targeted
date.
1G.4.1 Growth of subscriber base in India
NEWGATE INDIA, Bangalore Page 25
26. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Chart:1.5
Growth of subscriber base from 1999 to 2009
(in million)
429.72
300.49
206.83
98.41 140.32
28.53 36.29 44.97 54.62 75.54
22.81
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source [38]: http://www.trai.gov.in/annualreport
There were 6.22 million broadband subscribers and 11.09 million internet
subscribers as on 31st 2009. The total subscriber base (both wireless and wire line)
of telecom sector has achieved 429.72 million subscribers in India as on 31 st March
2009.
1G.4.2 Growth of Wire Line in India
Chart:1.6
Wireline subscriber in million
41.43 41.54
40.75
40.09
39.42
37.96
Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Source [38]: http://www.trai.gov.in/annualreport
The subscriber base was 37.96 million subscribers as on 31st March 2009. It was
decreased by 1.46 million subscribers from the last year. The urban wire line
subscribers are 27.38 million out of 37.96 million.
NEWGATE INDIA, Bangalore Page 26
27. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.4.3 Growth of Wireless Subscriber in India
Chart:1.7
Wireless subscriber in million
391.76
261.07
165.11
90.14
52.22
33.69
Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Source [38]: http://www.trai.gov.in/annualreport
The wireless subscriber base was 391.76 million at the end of March, 2008. 130.69
million Subscribers are added over the last year. It shows 50 percent growth rate.
1G.4.4 Growth of Internet Subscriber in India
Chart:1.8
Internet subscriber in million
13.54
11.09
9.27
6.94
5.55
4.55
Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Source [38]: http://www.trai.gov.in/annualreport
The internet subscriber base was 13.54 million as on 31st March 2009. The annual
growth rate is around 22.09 percent over the last year.
NEWGATE INDIA, Bangalore Page 27
28. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.4.5 Growth of Broadband subscriber in India
Chart:1.9
Broadband subscribers
6.22
3.87
2.34
1.35
0.18
Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Source [38]: http://www.trai.gov.in/annualreport
The total broadband subscriber was 6.22 million as on 31st March, 2009. It was 3.87
million in the previous year. So the growth rate is 60.72 percent over the last year.
1G.4.6 Growth of Tele density at India
Chart:1.10
Growth of Teledensity in India
40
36.98
30
26.22
20 18.23
12.86
10 9.08
7.04
0
Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Source[38]: http://www.trai.gov.in/annualreport
The tele density was 36.98 percent at the end of March, 2009. In the last year it was
26.22 percent. It has been increased by 10.76 percent.
NEWGATE INDIA, Bangalore Page 28
29. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.4.7 Growth of Wireless (GSM and CDMA) Services
. Chart:1.11
300
250
200
Axis Title
150 GSM
CDMA
100
50
0
Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Axis Title
Source[38]: http://www.trai.gov.in/annualreport
There were 297.26 (75.88%) million [GSM] and 94.50 (24.12%) millions of [CDMA]
subscribers at the end of the financial year 2008-2009. Around 130.69 million
subscribers were added during the financial year 2008-2009 and it shows the
growth rate of 50.06 percent over the last year.
1G.5 Future Projections
1G.5.1 Revenue & Market Share
There would be a rise in worldwide Industry telecom Revenue to 5163.6
billion by 2020 which around an increase in 64%
There will be increase in Indian telecom revenue to 3742 billion by 2020
which will around increase in 116%
Growth of telecom industry is higher in case of India compared to growth at
global level.
By 2020 India alone will constitute 72% of the shares in the telecom sector.
Tele density will substantially increase in exponential pattern with both
increase in population and national income in India
Private sector will take over public sector in terms of number of subscribers.
NEWGATE INDIA, Bangalore Page 29
30. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.5.2 GDP and Employment
Telecom sector will contribute to 3.65% of [GDP] by 2015
Direct Employment will substantially rise to 5,00,000 above in next 5 years
The major provider of telecom sector will be from Private companies
1G.5.3 Future Technology
The most common technology that will evolve will be
4G ( 4th generation of telecom sector)
Umbrella technology
Shorter Towers with wider coverage
Broad [GSM]
[RFID] & [GPRS] technology in lined with each other
3G is the abbreviation of Third Generation. It will be the next growth wave in
the telecom sector.
[WiMAX] provides seamless connectivity with a high speed more than 4
Mega bit per second . 4G is the abbreviation of Fourth Generation. It will be the
future technology used in telecom sector. It is upgrade version of [3G].
It will have download speed at 100 Mega bit per second and 1 Giga bit per
second for low mobility communication. It will provide all [IP] based mobile broad
band solution to laptop, smartphones with high security[35].
Many companies have taken self-serving definition and distortions about 4G
to suggest they have 4G already in existence today, such as several early trails and
launches of [WiMAX]. Other companies have made prototype systems calling those
4G.
It is possible that some current demonstrated technologies may become part
of 4G, until 4G standards have been defined.
The international telecommunication regulatory and standardization bodies
are working for commercial deployment of 4G networks roughly in the 2012-15
time scale. At that point it is predicted that even with current evolutions of the 3G
networks, these will tend to be congested [20][21].
NEWGATE INDIA, Bangalore Page 30
31. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.6 Major Market players in world market
AM Stereo
In 1959 Petition was filled with [FCC] to adopt AM stereo standards. In 1970
Magnavox,Motorala,Harris, Belar & Kaln started competing In 1980 Magnavox was
allowed In 1982FCC declared “let the market decide” .Later General Motors
Electronic division picked the Motorola AM stereo system.It was not cost effective.
Digital Wireless Phone
Europe with a standard war in US. Europe adopted widely [GSM] (Global system
mobile communication.US adopted [GSM], [TDMA], [CDMA] Now some say that US is
5 years behind Europe in wireless technology but some say [CDMA] technology was
superior. Ericson: champion [TDMA].Qualcomm: Created [CDMA].Motorala had
disappeared: created [FDMA] .Switching to other technology needed to but new
handsets that was expensive Users of one system could make call to other system
they could come up with handset where they could use both [GSM] & [CDMA]
technology. [24]
Rockwell Lucent
The battle lines were drawn between Rockwell/Lucent & U.S. Robotics over the
advent of the path breaking 56k modem.56k modems was an epoch making
innovation. The existing 28.8 kbps modem had been in place for long & observers
believed that there can be no advancement in the near future. [ISDN] was not the
savior everyone expected it to be. The concept of asymmetric flow of information
(downloading) lead to the advent of 56k.Consumers were unhappy with the limited
speed offer by 28.8k
AT&T
In 1913, telegraph was popular way of communication. [AT&T] commits to dispose
its telegraph stocks and agreed to provide long distance connection to
independence telephone system.Bell System grew more under the name of [AT&T].
Many of today’s companies face such issues as faced [AT&T] hundred years ago. In
1956 the final judgment limited the BELL system to common carrier
communications and government projects but preserving the long-standing
relationship between the manufacturing, researches and operating arms of the Bell
system. In this judgment [AT&T] retained bell laboratories and western Electric
Company.[24]
NEWGATE INDIA, Bangalore Page 31
32. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.7 Major Market players in Indian market
Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom
services providers with operations in India and Sri Lanka. Bharti Airtel since its
inception, has been at the fore front of technology and has pioneered several
innovations in the telecom sector. The company is structured into four strategic
business units – Mobile, Telemedia, Enterprise and Digital TV. The mobile business
offers services in India and Sri Lanka. The Telemedia business provides broadband,
[IPTV] and telephone services in 95 Indian cities. The Digital TV business provides
Direct-to-Home TV services across India. The Enterprise business provides end-to-
end telecom solutions to corporate customers and national and international long
distance services to telcos [25].
The Aircel group is a joint venture between Maxis Communications Berhad of
Malaysia and Sindya Securities & Investments Private Limited, whose current
shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis
Communications holding a majority stake of 74%. Aircel commenced operations in
1999 and became the leading mobile operator in Tamil Nadu within 18 months. In
December 2003, it launched commercially in Chennai and quickly established itself
as a market leader – a position it has held since[54].
Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. The company now has operations across the country with over
85.82 million customers. Over the years, Vodafone Essar, under the Hutch brand,
has been named the ‘Most Respected Telecom Company’, the ‘Best Mobile Service in
the country’ and the ‘Most Creative and Most Effective Advertiser of the Year’.
Vodafone is the world’s leading international mobile communications group with
pproximately 315 million proportionate customers as on 30 June 2009 [26].
NEWGATE INDIA, Bangalore Page 32
33. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
IDEA Cellular is a leading [GSM] mobile services operator in India with over 53
million subscribers, under brand IDEA. It is a pan India integrated [GSM] operator
covering the entire telephony landscape of the country. A front runner in
introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering
the most customer friendly and competitive Pre-Paid offerings, for the first time in
India, in an increasingly segmented market. From basic voice & [SMS] services to
high-end value added & [GPRS] services such as Blackberry, Data card, Mobile TV,
Games etc. – IDEA is seen as an innovative, customer focused brand [29].
BPL Mobile has had the privilege of serving the communications needs of the
financial capital of India for the last 13 years. BPL Mobile has been rebranded as
Loop Mobile in Mumbai. New identity, Loop Mobile, represents growth with
continuity. While they constantly work towards giving their subscribers a better
network, innovative products and a superior mobile telephony experience.,
Spice Telecom, the brand name of Spice Communications Limited is presently
operating Cellular Phone Services in the states of Punjab and Karnataka [53].
A new mobile operator, with a localized approach to the Indian market. They
combine the force of India’s second largest real estate company, Unitech Ltd and
Norway-based Telenor, the 6th largest mobile communications group in the world.
Now they are bringing their services and innovation in communications to India
[55].
NEWGATE INDIA, Bangalore Page 33
34. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Tata DOCOMO is Tata Teleservices Limited’s [TTSL] telecom service on the [GSM]
platform-arising out of the Tata Group’s strategic alliance with Japanese telecom
major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India
license to operate [GSM] telecom services, under the brand .Tata DOCOMO and has
also been allotted spectrum in 18 telecom Circles. [TTSL] and has already rolled out
its services in various circles. The launch of the Tata DOCOMO brand marks a
significant milestone in the Indian telecom landscape, as it stands to redefine the
very face of telecoms in India [56].
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.Their
business encompasses a complete range of telecom services covering mobile
telephony and data services along with an exhaustive range of value-added services
and applications.RTL(Reliance Telecom Ltd.) is one of the oldest licensees of
CMSP.Its license dates back to 12.12.1995.[RTL] launched its [GSM] services during
October 1997.With the merger of RISL now [RTL] is operating in 8 Telecom
circles[50].
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest
Telecommunications Company providing comprehensive range of telecom services
in India: Wire line, [CDMA] mobile, [GSM] Mobile, Internet, [BB], Carrier service,
[MPLS]-[VPN], [VSAT], [VoIP] services etc. Presently it is one of the largest & leading
public sector unit in India. [BSNL] is the only service provider, making focused
efforts and planned initiatives to bridge the Rural-Urban Digital Divide [ICT] sector.
In fact there is no telecom operator in the country to beat its reach with its wide
network giving services in every nook & corner of country and operates across India
except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and
North-eastern region of the country[27].
NEWGATE INDIA, Bangalore Page 34
35. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Etisalat DB India Pvt. Ltd has been awarded the Unified Services Access License in
15 circles including Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala,
Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu (including Chennai), Uttar
Pradesh (East), Uttar Pradesh (West), Madhya Pradesh and Bihar.These licenses
enable the Company to provide a full spectrum of telecom services covering a
population of over 900 million across India. The services will include national &
international long distance telephony solutions, full range of prepaid & postpaid
products, national & international roaming and Value Added Services which
includes Voice Mail, Audiotex services, Video Conferencing, Videotex, E-Mail, Closed
User Group. Under the license the Company can also provide Internet Telephony,
Internet Services and Broadband Services [56]
Datacom Solutions Pvt Ltd. offers telecommunication services. The company is
based in India. Datacom Solutions Pvt Ltd. operates as a subsidiary of Videocon
Industries Ltd [56]
India’s privately owned STel Ltd. is planning to roll out its mobile phone services in
India. STel is in “final negotiations” to outsource its network and technology
requirements and is also in talks with various tower companies to share
infrastructure. New telecom service providers in India opt to share passive
infrastructure such as telecom towers and outsource non-core activities such as
network and technology management, to reduce costs and roll out services
faster.STel has licenses to provide mobile phone services in the eastern states of
Bihar and Orissa, the northern states of Jammu & Kashmir and Himachal Pradesh,
India’s northeastern region and the state of Assam [52].
NEWGATE INDIA, Bangalore Page 35
36. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.8 Market Share
1G.8.1 Market Share of GSM service in India
Currently - Airtel, Reliance, Vodafone, Tata, [BSNL], Idea, Aircel stand in top 6. It is
importnat to see what happens after [MNP] - Mobile Number Portability. [MNP]
analysis takes time for official release from Trai.Revenue Market share.. One good
strategy about Airtel is Grow consolidate and then back to the Growth cycle and the
spiral continues.
Bharti Airtel has 24.3% customer market share and 33.8% revenue market
share.
Vodafone India has 18.8% customer market share and 20.7% revenue market
share.
Idea Cellular has 11.2% subscribers market share and 12.1% revenue market
share
[BSNL] has subscriber share of 12.7% and mere 10.2% of revenue share
Reliance Communications is the worst performer with 18.9% customer market
share and pathetic 11.5% revenue market share.
Chart:1.12
Sources [48] : http://www.gobroadband.in
NEWGATE INDIA, Bangalore Page 36
37. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.8.2 Market Share regional basis in World
World telecom Industry is an uprising industry, proceeding towards a goal of
achieving two third of worlds telecom connections. Over the past few years’
information and communications technology has changed in dramatic manners
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 telecom industry is expected to grow by 11%
The total revenue earned from this industry is 3% of the gross world
economy
16.9% of the world population has access to internet.
Chart:1.13
Market Share Region Wise in World
Source [48] : http://www.trai.gov.in/annualreport
NEWGATE INDIA, Bangalore Page 37
38. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
1G.8.3 Market Share Regional basis in India
The Indian telecom services with 203 million connection is the 3 rd largest Telecom
network in the world & 2nd largest among the emerging economies of Asia. Today, it
is one of the fastest growing markets in the world. The Telecommunication sector
continued to register significant success during the year and has emerged as one of
the key sectors responsible for India’s economic growth
Telecom sector in India comprises 3% of India’s [GDP] alone. Likely to be
double by 2012.
Telecom services contribute 30% of India’s Total Tax revenue.
Indian Telecom sector gives direct employment to more than 4, 00,000
people compared to 6, 00,000 people in china.
Chart:1.14
Market Share Region Wise in India
Source [48]: http://www.trai.gov.in/annualreport
[Note: Market share calculated as per this research is mentioned in Appendix: F.2/
Chart 4.7 ; Table:4.4]
NEWGATE INDIA, Bangalore Page 38
39. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Chapter - 2
Review of Literature
2A. Research papers reviewed
Jeewon Choi, Hyeonjoo Seol, Sungjoo Lee, Hyunmyung Cho, Yongtae Park,
(2008) . In their research paper they have said that the purpose of this paper is to
distinguishes features of mobile-commerce from those of e-commerce and identify
factors to influence customer satisfaction (mobile-satisfaction) and loyalty (mobile-
loyalty) in mobile-commerce by empirically-based case study. The paper finds that
m-commerce is partially similar in factors like “transaction process” and
“customization” which lead customer satisfaction after connecting an m-commerce
site, but it has unique aspects of “content reliability”, “availability”, and “perceived
price level of mobile Internet (m-Internet)” which build customer's intention to the
m-commerce site.
Through the m-satisfaction model, “content reliability”, and “transaction
process” are proven to be significantly influential factors to m-satisfaction and m-
loyalty. The paper meets the needs to focus on customer under the fiercer
competition in Korean m-commerce market. It can guide those who want to initiate,
move or broaden their business to m-commerce from e-commerce. The paper
develops a revised ACSI model to identify individual critical factors and the degree of
effect.
References [8]: Jeewon Choi, Hyeonjoo Seol, Sungjoo Lee, Hyunmyung Cho, Yongtae
Park, (2008) "Customer satisfaction factors of mobile commerce in Korea", Internet
Research, Vol. 18 Iss: 3, pp.313 – 335
URL Link: http://www.emeraldinsight.com/journals.htm?issn=1066-243&volume=
18&issue=3 &articleid= 1729308 & show=abstract
Hsin Hsin Chang, Hsin-Wei Wang, (2011) . The purpose of this research is to
examine the impact of e-service quality, customer perceived value, and customer
satisfaction on customer loyalty in an online shopping environment. The study
demonstrated that e-service quality and customer perceived value influence
customer satisfaction, and then influence customer loyalty. In addition this study
found that customers with a high perceived value have a stronger
NEWGATE INDIA, Bangalore Page 39
40. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
relationship.between satisfaction and customer loyalty than customers with a low
perceived value. there are emotional and rational routes influencing customer loyalty
in the online shopping process. This will contribute to other research that clarifies
the influencing process of online shoppers' motivation and behavior. In the pre-
purchase stage, online retailers should focus on attracting consumers by the quality
of e-service. In the purchase stage, online retailers should address the emotional
factors, such as customer satisfaction.
In the post-purchase stage, rational factors – such as customer perceived value
play important roles because they can strengthen the relationship between
satisfaction and loyalty. In the pre-purchase stage, online retailers should focus on
attracting consumers by the quality of e-service. In the purchase stage, online
retailers should address the emotional factors, such as customer satisfaction. In the
post-purchase stage, rational factors – such as customer perceived value – play
important roles because they can strengthen the relationship between satisfaction
and loyalty.
References [9]: Hsin Hsin Chang, Hsin-Wei Wang, (2011) "The moderating effect of
customer perceived value on online shopping behaviour", Online Information Review,
Vol. 35 Iss: 3, pp.333 – 359
URL Link: http://www.emeraldinsight.com/journals.htm?issn=0887-6045& volume
=25&issue=1&articleid=1906302&show=abstract
Paul Williams, Earl Naumann, (2011), This research study aims to examine the
relationships between customer satisfaction and a variety of company performance
metrics at the firm-level of analysis. It was found that there are significant, and
moderate-to-strong associations between satisfaction levels and a firm's financial
and market performance. More specifically, there are strong links between customer
satisfaction, and retention, revenue, earnings per share, stock price, and Tobin's q.
The main implication of this study is that the longitudinal findings demonstrate a
strong consistent link between customer attitudes and financial performance at the
firm level. The study is clearly limited to one firm, from one industry sector, but
offers future researchers a wealth of replication opportunities.
Numerous experts have noted that marketing needs to document the financial
impact of marketing activities. Unlike most studies in this area, this study
investigated these associations at the firm level, rather than at the aggregate or
industry level where some relationships are potentially masked. The study also
investigated the links between satisfaction and financial performance in the
business-to-business services sector, rather than in business-to-customer services.
NEWGATE INDIA, Bangalore Page 40
41. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Finally, the firm provided access to large samples of real customer attitude data over
a five-year period, rather than from a cross-sectional study.
References [10]: Paul Williams, Earl Naumann, (2011) "Customer satisfaction and
business performance: a firm-level analysis", Journal of Services Marketing, Vol. 25 Iss:
1, pp.20 - 32
URL Link: http://www.emeraldinsight.com/journals.htm?issn=0954-478X&volume=1
&issue=2&articleid=841345&show=abstract
Pingjun Jiang, Bert Rosenbloom, (2005), In his research paper Jiang says that the
purpose is to compare & emphasize that in service quality of online marketing,
much less work has been done on the role of price perception, service attribute-level
performance and satisfaction that unfolds over time, and their effects on customer
retention. This paper seeks to fill this gap in the literature. The findings of this study
indicate that after-delivery satisfaction has a much stronger influence on both
overall customer satisfaction and intention to return than at-checkout satisfaction,
and that price perception, when measured on a comparative basis, has a direct and
positive effect on customer overall satisfaction and intention to return.This paper
concludes that excellence pre-sales service is not necessarily an advantage that
allows e-tailers to develop customer retention. In fact, e-tailers might command
higher customer retention through providing good performance in after-delivery
service and continuously generating favorable price perceptions among customers
because both have a strong and positive influence on return intention. This research
conceptualizes and explores different aspects of satisfaction that unfold over time,
regarding customers' whole shopping experience with a particular e-retailer. It is a
pioneer work that empirically investigates the relative contribution of at-checkout
and after-delivery satisfaction in generating intention to return to an e-tailer.
References [11]: Pingjun Jiang, Bert Rosenbloom, (2005) "Customer intention to
return online: price perception, attribute-level performance, and satisfaction unfolding
over time", European Journal, Vol. 39 Iss: 1/2, pp.150 - 174
URL Link: http://www.emeraldinsight.com/journals.htm?issn=0309-0566&volume
=39&issue=1/2&articleid=1463187&show=abstract
NEWGATE INDIA, Bangalore Page 41
42. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
Li-Wei Wu, (2011), Purpose of this research is empirically studying and
investigating the antecedents of customer loyalty typically focusing on satisfaction.
This study aims to develop and test a more comprehensive model of the antecedents
of customer loyalty, including satisfaction and inertia. In addition, this study also
considers how the effects of satisfaction and inertia on customer loyalty vary with
differing levels of the zone of tolerance (ZOT), and how these are likely to change
due to customers' alternative attractiveness. The results show that a wider level of
the ZOT strengthens the positive effect of inertia on customer loyalty, while also
reducing the positive effect of satisfaction. The results also indicate that the negative
moderating effect of the ZOT on the relationship between satisfaction and customer
loyalty will reduce as alternative attractiveness increases. In contrast, the positive
moderating effect of the ZOT on the relationship between inertia and customer
loyalty will reduce as alternative attractiveness increases.
This study is a first attempt to integrate the ZOT to determine the relative
importance of satisfaction and inertia in determining customer loyalty. In addition,
this study suggests that customers with higher perceptions of alternative
attractiveness are more likely to experience changes in the influence of the ZOT on
their loyalty decisions
References [12]: Li-Wei Wu, (2011) "Satisfaction, inertia, and customer loyalty in
the varying levels of the zone of tolerance and alternative attractiveness", Journal of
Services Marketing, Vol. 25 Iss: 5, pp.310 – 322
URL Link: http://www.emeraldinsight.com/journals.htm?issn=0887-6045&volume
=25&issue=5&articleid=1941501&show=abstract
2B. Articles reviewed
Mike Asher, (2006) , In his article Mike says that to maintain the competitive edge,
organizations must move quickly to identify and then meet customer satisfaction.
Examines methods of identifying customer satisfaction, measuring and using the
results to improve the quality of products and services. Sees customer satisfaction as
the end product. Advises on how to identify and implement a quality improvement
programme. Contends that complete customer satisfaction is only possible when
there is full information about customer requirements in the hands of all and
everyone who has influence on how they are met. Concludes that, by getting it right
first time, the whole customer/supplier chain focuses on meeting the needs of the
external customer, and providing customer satisfaction
NEWGATE INDIA, Bangalore Page 42
43. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
References [13]: Mike Asher, (2006) ,” Measuring Customer Satisfaction “,The TQM
Magazine, Vol. 1, Issue: 2
URL Link: http://www.emeraldinsight.com/journals.htm?issn=0887-6045&volume
=25&issue=1&articleid=1906302&show=abstrac
Rade B. Vukmir, (2006), This article paper seeks to present an analysis of the
literature examining objective information concerning the subject of customer
service, as it applies to the current medical practice. Hopefully, this information will
be synthesized to generate a cogent approach to correlate customer service with
quality. There is a significant lack of objective data correlating customer service
objectives, patient satisfaction and quality of care. Patients present predominantly
for the convenience of emergency department care. Specifics of satisfaction are
directed to the timing, and amount of “caring”. Demographic correlates including
symptom presentation, practice style, location and physician issues directly impact
on satisfaction. It is most helpful to develop a productive plan for the “difficult
patient”, emphasizing communication and empathy. Profiling of the customer
satisfaction experience is best accomplished by examining the specifics of
satisfaction, nature of the ED patient, demographic profile, symptom presentation
and physician interventions emphasizing communication – especially with the
difficult patient.
The current emergency medicine customer service dilemmas are a complex
interaction of both patient and physician factors specifically targeting both efficiency
and patient satisfaction. Awareness of these issues particular to the emergency
patient can help to maximize efficiency, minimize subsequent medicolegal risk and
improve patient care if a tailored management plan is formulated.
References [14]: Rade B. Vukmir, (2006) "Customer satisfaction", International
Journal of Health Care Quality Assurance, Vol. 19 Iss: 1, pp.8 – 31
URL Link: http://www.emeraldinsight.com/journals.htm?issn=0952-6862&volume
=19&issue=1&articleid=1541773&show=abstract
NEWGATE INDIA, Bangalore Page 43
44. [ MARKET RESEARCH REPORT] JAN 2010 - 2012
2C. Case studies reviewed
Kasina V. Rao, (2011). In his case study he says that it is best suited to teach
undergraduates and graduates in the areas of rural marketing, agri-business
management, service management and information and communication technology
for development.
Case overview – India is changing with great pace by inclusive growth on espousal
of technology into the mainstream. Indian farmers are wholly depending even now
on traditional methods for decision making on entire agriculture supply chain. The
constant decision making provides middle men with a chance to exploit and
empower themselves on the returns produced by farmers. Technology is creating
waves providing an opportunity for farmers to benefit by adopting information and
technology to solve their basic livelihood problems. The Thomson Reuter group
launched a SMS-based mobile information service to support India's 250-million-
strong agricultural community. The service, named Reuters Market Light (RML), is
trying to provide a missing link by providing required information in the quickest
possible time to farmers; user need-based services are critical to this. How far RML
services are delivering in this context is quizzed by some analysts. Thomson
Reuter's service started with the global climb down in commodity prices, coupled
with increased risk of natural disasters as per experts. The competitors providing
similar services at price which differ with RML wondered about the success,
scalability and sustainability of its venture.
Expected learning outcomes – This is a practical view of how these interventions
can be better looked at and can get into policy for a framework for rural areas'
socio-economic development.
References [15]: Kasina V. Rao, "RML: market intelligence in India with mobile SMS
intervention", Emerald, (2011). Title – RML: market intelligence in India with mobile
SMS intervention.
URL Link: http://www.emeraldinsight.com/case_studies.htm?issn=2045-0621&
articleid=1917184&show=abstract
NEWGATE INDIA, Bangalore Page 44