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A Comparative Study of customer satisfaction for cellularservice providers B.S.N.L, Airtel, Idea & Vodafone in
AMBEGAON of Pune city.
Project Report Submitted to University of PuneIn Partial Fulfillment of Requirement for the Award of Degree of
MASTER OF BUSINESS ADMINISTRATIONBy
SHIRLEY CHATTERJEE (6)
SHUBHAM KESARI
Under the guidance ofProf. MANJULA DHULIPALA
SKN SINHGAD SCHOOL OF BUSINESS MANAGEMENT
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AMBEGAON ,PUNE
DECLARATION
We, the undersigned, hereby declare that the Project entitleA ComparativeStudy of customer satisfaction for cellular service providers B.S.N.L, Airtel, Idea &
Vodafone in Ambegaon of Pune city.
written and submitted by us to the University of Pune, in partial fulfillment of
requirement for the award of degree of Master of Business Administration under the
guidance of Prof. Manjula Dhulipala is OUR original work and the conclusions drawn
therein are based on the material collected by ourself.
Place:-
Date:-Rajesh KumarMo. Shakil PathanPraveen Kumar
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ACKNOWLEDGEMENT
It gives us indeed a great pleasure to present this project based onA ComparativeStudy of customer satisfaction for cellular service providers B.S.N.L, Airtel, and Idea &
Vodafone in Ambegaon of Pune city.to the university of Pune.
We are really very thankful to the university to give us such an opportunity to present
this project.
we express my sincere gratitude to all the individual customers who have provided me
an opportunity to understand their buying structure the way of purchasing and for the
timely and immediate assistance which was needed and required during the course of
project and while completing the project
we express my sincere and grateful thanks to our project guide Prof. Manjula Dhulipala
who has guided us throughout the project for continuous guidance and co operation
without which we would have hardly been able to complete the project.
We are also thankful to the THE DIRECTOR,THE DEAN AND ALL LECTURERS of
college who gave us an opportunity to undertake this project work, for their full co
operation, guidance and assistance in project work
Date:
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Place: Pune
INDEXCh No. Particulars Page No
I Introduction 06
II Company Profile 08
III Objectives Of Study 11
IV Research Methodology 13
V Data Analysis 20
VI Recommendation & Suggestions 30
VII Conclusion 34
VIII Bibliography 36
IX Appendix/Annexure 38
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Introduction
Cellular Industry in IndiaCellular services are a part of the telecommunication sector of India. It was launched
in 1999 with the adoption of New National Telecom Policy by Telecom regulatory
authority of India (TRAI). Cellular services are further divided into two categories,
namely GSM (Global System for Mobile Communications) and CDMA (Code DivisionMultiple Access).GSM segment consists of players like Airtel, Vodafone, Idea and
BSNL. Whereas, CDMA segment consists of players like Reliance, Tata, etc the
telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for
rapid growth and modernization of various sectors of the economy. It has achieved a
phenomenal growth during the last few years and is poised to take a big leap in the
future also.
Status of Telecom Sector
The Indian Telecommunications network with 911 million connections (as on Feb. 2012)
is the third largest in the world. This rapid growth is possible due to various proactive
and positive decisions of the Government and contribution of both by the public and the
private sectors. The rapid strides in the telecom sector have been facilitated by liberalpolicies of the Government that provides easy market access for telecom equipment
and a fair regulatory framework for offering telecom services to the Indian consumers at
affordable prices.
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Performance of telecom equipment manufacturing sectorAs a result of Government policy, progress has been achieved in the manufacturing of
telecom equipment in the country. There is a significant telecom equipment-
manufacturing base in the country and there has been steady growth of the
manufacturing sector during the past few years. The figures for production and export of
telecom equipment are shown in table given below:
(Rs. in crore)
Year Production Export
2002-03 14400 4022003-04 14000 250
2004-05 16090 400
2005-06 17833 1500
2006-07 23656 1898
2007-08 41270 8131
2008-09 48800 11000
2009-10
50000
(projected @ 18%)
13500
(projected @ 25%)
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History of CellularTelephony in India
Year1992 Telecommunication sector in India liberalized to bridge the gap
through government spending & to provide additional resources forthe nations telecom target. Private sector allowed participating
1993 The telecom industry gets an annual foreign investment Rs 20.6
million
1994 License for providing cellular mobile services granted by the
government of India for the Metropolitan cites of Delhi, Mumbai, and
Kolkata & Chennai. Cellular mobile service to be duopoly (i.e. not
more than two cellular mobile operators could be licensed in each
telecom circle), under a fixed license fee regime for 10 years.
1995 19 more telecom circles get mobile licenses
1995(August) Kolkata became the first metro to have a cellular network
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1997 Telecom Regulatory Authority of India is set up
1998 Annual foreign investment in telecom stands at Rs 17,756.4 million.
1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7
million
1999 Tariff rebalancing exercise gets initiated
1999(March) National Telecom Policy is announced.
2000(June) FDI inflow drops further down to Rs 918 million coming
2000 (January) Amendment of TRAI Act.
Change in the Prices of Services
Before 1999, call rates were Rs 16.80/min for both outgoing &
Incoming calls for all the operators.
For Airtel, call rates to fixed, WLL & cellular
operators were Rs 5.40/min each & Rs 3.96 for incoming calls. In
2003, call rates for fixed line fell down to Rs 2.80/min & Rs 2.40
for cellular calls.
Incoming calls were made free in 2003.
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Objective of the study
To conduct a survey and ascertain / identify various types of services whicheffect retailers satisfaction and there operations.
To determine the market share of all the telecom service providers. To determine and analyze the results of the survey along with the various
relationships between factors.
To study the impact of competition introduced through deregulation on the pricesof services provided by Bharti (Airtel), Vodafone, Idea and BSNL.
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To study the impact of competition introduced through deregulation on theservices provided Bharti (Airtel), Vodafone, Idea and BSNL.
Company Profile
Major ServiceProviders In India
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Sunil Mittal founded the Bharti Group. In 1983,
Mittal was in an agreement with Germany's Siemens to manufacture push-button
telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom
Limited (BTL), and his company became the first in India to offer push-button
telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal
had also launched the country's first fax machines and its first cordless telephones. In
1992, Mittal won a bid to build a cellular phone network in Delhi.
In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and
launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh.
In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular
operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky
cell Communications, in Chennai. In 2001, the company acquired control of Spice Cell
in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on
Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular
phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired
control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to
Andaman and Nicobar. This expansion allowed it to offer voice services all across India.
In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel
acquired the African operations of the Kuwait basedZainTelecom.In March 2012,Airtel
launched a mobile operation in Rwanda.
Today, Airtel is the largest cellular service provider in India and the fourth largest in the
world.
On 26 February 2013, Airtel announced that it had deployedEricssons Mobile
Broadband Charging (MBC) solution and completely modernized its prepaid services for
http://en.wikipedia.org/wiki/Zainhttp://en.wikipedia.org/wiki/Zainhttp://en.wikipedia.org/wiki/Zainhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Zain -
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Coverage map of Bharti Airtel across 20 countries
Airtel is the first largest mobile operator in the world in terms of subscriber base and has
a commercial presence in 20 countries and theChannel Islands.
According to the latest update of September 2012 Bharti Airtel is the leading player
in the mobile telephony market with 185.92 million subscribers all over India, hence
covering 28% of the total market. It is followed by Vodafone Essar with 152.46 million
subscribers covering 23% of the market. This makes it to be the second-largest cellular
company in India.
http://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/File:Bharti-Airtel-Country-Map.PNGhttp://en.wikipedia.org/wiki/File:Bharti-Airtel-Country-Map.PNGhttp://en.wikipedia.org/wiki/File:Bharti-Airtel-Country-Map.PNGhttp://en.wikipedia.org/wiki/File:Bharti-Airtel-Country-Map.PNGhttp://en.wikipedia.org/wiki/Channel_Islands -
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Group Company wise % market share (Subscribers) as of November2012
Airtel, 27.66
Vodafone, 22.71
IDEA, 17.20
BSNL, 14.64
Aircel, 9.84
Uninor, 6.12
Videocon, 0.60 MTNL, 0.77Loop, 0.46
All India, 0 , 0
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Idea Cellular
Idea Cellular is an Aditya Birla Group Company, Indias first truly multinational
corporation. The group operates in 25 countries, and is anchored by over 1, 30,000
employees belonging to 30 nationalities. The Group has been adjudged the 6th Top
Company for Leaders in Asia Pacific Regionin a survey conducted by Hewitt
Associates, in partnership with The RBL Group, and Fortune. The Group has also been
rated The Best Employer in India and among the Top 20 in Asia by the Hewitt -
Economic Times and Wall Street Journal Study 2007.
Idea Cellular is a publicly listed company, having listed on the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE) in March 2007.
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IDEA Cellular has operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh,
Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh
and Kerala. As a leader in Value Added Services, Innovation is central to IDEA's VAS
Factory. It is the first cellular company to launch music messaging with 'Cellular Jockey',
'Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of
Mobile Email Services.
Bharat sanchar nigam limited
BSNL, Bharat Sanchar Nigam Limited (known as BSNL, India Communications
Corporation Limited) is a public sector communications company in India. BSNL is
India's largest Telco and one of the largest Public Sector Undertakings with estimated
market value of $ 100 Billion. BSNL has installed Quality Telecom Network in the
country and now focusing on improving it, expanding the network, introducing new
telecom services with ICT applications in villages and wining customer's confidence.
VISION
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To become the largest Telecom Service Provider in Asia.
MISSIONTo provide world class State-of-art technology telecom services to its
Customers on demand at competitive prices.
To provide world class telecom infrastructure in its area of operation
and to contribute to the growth of the country's economy.
ChallengesDuring the financial year 200809 (from April 1, 2008 to March 31, 2009) BSNL has
added 8.1 million new customers in various telephone services taking its customer base
to 75.9 million. BSNL's nearest competitorBharti Airtel is standing at a customer base of
62.3 million. However, despite impressive growth shown by BSNL in recent times, the
fixed line customer base of BSNL is declining. In order to woo back its fixed-line
customers BSNL has brought down long distance calling rate under One India plan,
however, the success of the scheme is not known. However, BSNL faces bleak fiscal2009-2010 as users flee.
Presently there is an intense competition in Indian Telecom sector and various Telcos
are rolling out attractive schemes and are providing good customer services. But
situation as on 2012 BSNL will be third largest operator (Service) and No 1 access
operator among country. As Trai Report 2011-12 BSNL became most trustworthy brand
due to its loyalty towards customers and its rule.
Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for
provide service in non-lucrative areas especially rural areas) has been slashed by 20%
byTRAI, w.e.f. April 1, 2009.The reduction in ADC may hit the bottom lines of BSNL.
http://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/TRAIhttp://en.wikipedia.org/wiki/TRAIhttp://en.wikipedia.org/wiki/TRAIhttp://en.wikipedia.org/wiki/TRAIhttp://en.wikipedia.org/wiki/Bharti_Airtel -
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BSNL has started 3G services in 290 cities and acquired more than 6 Lakh customers.
It has planned to roll out 3G services in 760 cities across the country in 2010-11.
According to users and big sources BSNL's 3G data speed is much higher than other
operator and also it is competitively cheap.
Broadband services: The shift in demand from voice to data has revolutionized the very
nature of the network. BSNL is poised to cash on this opportunity and has planned for
extensive expansion of the Broadband services. The Broadband customer base of 3.56
Million customers in March'2009 is planned to be increased to 16.00 million by March
2014. On 13 June 2012.
Vodafone India
Timeline1992: Hutchison Whampoa and MAX group establish Hutchison Max2000: Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujaratmarkets through Essar acquisition
2001: Won auction for licenses to operate GSM services in Karnataka, Andhra Pradeshand Chennai
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A 'You and I' print advertisement of Hutch featuringCheeka (dog)
2003: Acquired AirCel Dig link (ADILESSAR Subsidiary) which operated inRajasthan, Uttar Pradesh East and Haryana telecom circles and rebranded it 'Hutch'.2004: Launched in three additional telecom circles of India namely Punjab, UttarPradesh (West) and West Bengal.
2005: Acquired BPL Mobile operations in 3 circles. This left BPL with operations only inMumbai, where it still operates under the brand 'Loop Mobile'.
2007: Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. Thecompany is renamed Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.
2008: Vodafone acquires the licenses in remaining 7 circles and has starts its pendingoperations inMadhya Pradeshcircle, as well as in Orissa, Assam, North East and
Bihar.
2011: Vodafone Group buys out its partner Essar from its Indian mobile phone
business. It paid $5.46 billion to take Essar out of its 33% stake in the Indian subsidiary.
It left Vodafone owning 74% of the Indian business.
Vodafone India covers 16 telecom circles in India. Despite the official name being
Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and
postpaid GSM cellular phone coverage throughout India and is especially strong in the
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major metros.
Offering voice and data services in 16 of the country's 23 license areas.
OwnershipVodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%.
On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held
by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, piping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion.
Research methodology
SOURCES OF DATA:1. Primary Data: The Primary data will be collected using survey as a mode of datacollection.
To conduct surveys separate sets of structured questionnaire would be prepared
for Consumers.
2. Secondary Data: The secondary data shall be collected from variousPublications of Apparel and Telecom Regulatory Authority of India. The facts, figures
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and statistics on Telecom Industries explored through Books, Magazines, Journals,
Periodicals and internet.
DATA ANALYSIS & INTERPRETATION
1.) Uses of mobile phoneUSER 96%
NON USER 4%
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INFERENCE: It has been observed that there are 96% mobile users and 4% non users.
2.) service provider companys SIM cards uses.BSNL 15%
AIRTEL 35%VODAFONE 27%
IDEA 20%
OTHERS 3%
Yes96%
No
4%
Percentage of Mobile Users
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INFERENCE: It has been observed that there are 35% customers are Airtel SIM cardusers.
It shows that Airtel is the top level in the market.
3.) type of connection by service providers
Prepaid 70%
Postpaid 15%
BSNLAirtel
VodafoneIdea
Other
15
35
27
20
3
Sim card user's
Sim card user's
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Bothe 15%
INFERENCE: It has been Observed that there are 70% prepaid users,15% postpaidusers & Both (prepaid & postpaid) 15%.
4.) satisfied with the with network performance, reliability and
Availability
Prepaid70%
Postpaid15%
Both15%
SIM connections
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a) Highly dissatisfied b) Satisfied
c) Dissatisfied d) Highly Satisfied
INFERENCE: It has been observed that there are maximum numbers of users aresatisfied.
4.) the satisfied with billing performance of your cellular service provider
AIRTEL 55%
VODAFONE 65%
IDEA 35%
0
10
20
30
40
50
60
Airtel Vodafone Idea BSNL
Highly dissatisfied
Satisfied
Dissatisfied
Highly Satisfied
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BSNL 30%
INFERENCE: It has been observed that in Airtel, Vodafone, Idea and BSNL, there are55%, 65%, 35%, and 30% users are satisfied respectively.
6.) think about call rate
LOW 30%
Highly dissatisfied
SatisfiedDissatisfied
Highly Satisfied
0
10
20
30
40
50
60
70
Highly dissatisfied
Satisfied
Dissatisfied
Highly Satisfied
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HIGH 70%
INFERENCE: There are 70% mobile users who say that the call rate is high.
7.)service providers scheme of call rates attracts Consumer more
IDEA 26%
AIRTEL 32%
BSNL 16%
VODAFONE 26%
High70%
LOW30%
Percentage of call rate
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INFERENCE:According to users, and market survey Airtel schemes of call rate attractsmore to customer.
8) Supplementary and value added services provided from cellular service provider
Service provider Talk time Free SMS Free Internet None
Airtel32%
Vodafone26%
BSNL16%
Idea
26%
Percentage of call rates schemes thatattracts the users
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BSNL 50 10 30 10
IDEA 20 25 25 30
VODAFONE 15 55 25 15
AIRTEL 20 40 30 10
9.) From period consumer are using this companys service.
Services provider Last 5 to 7 yr. Last 2 to 4 yr. Last 1 yr. Last 4 to6 yr.
BSNL 50 30 15 5
Airtel
Vodafone
Idea
BSNL
20
15
20
50
40
55
25
10
30
25
25
30
10
15
30
10
Value added services
Talk time Free SMS Free Internet None
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IDEA 30 40 20 10
VODAFONE 25 45 15 15
AIRTEL 20 40 30 10
10.The satisfied with overall service quality of service provider.
Airtel
Vodafone
Idea
BSNL
20
25
30
50
40
45
40
30
30
15
20
15
10
15
10
5
Period of SIM uses, by the users
Last 5 to 7 yrs. ) Last 2 to 4 yrs Last 1 year Last 4 to 6 months
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Service provider Highly
dissatisfied
satisfied dissatisfied Highly satisfied
AIRTEL 10% 40% 20% 30%
VODAFONE 20% 30% 40% 10%IDEA 5% 45% 30% 20%
BSNL 30% 30% 20% 20%
0
5
10
15
20
25
30
35
40
45
50
Airtel VODAFON IDEA BSNL
Highly dissatisfied
Satisfied
Dissatisfied
Highly Satisfied
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11.) Consumer will be continue with this service provider.
Service provider continue Not continue
AIRTEL 90% 10%
VODAFONE 70% 30%
IDEA 75% 25%
BSNL 40% 60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Airtel Vodafone IDEA BSNL
NO
YES
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Recommendation and suggestions
Should focus more on new rural area where tele density is very low andcompetition is less.
Make strategic alliance with equipment supplier so that become a market leaderin the terms of technology.
Since tele density is still around 21% therefore telecom companies have to try tothose market which is still untapped by the other telecom companies.
Keep their technology up to date so that they should always offer something newto their existing customer and also new customer.
Should provide better customer service through better customer relation so thatold customer doesn't left.
Indian telecom companies should invest more in self Research & Developmentactivity rather than depending upon foreign suppliers to tackling the threats of
substitute.
Keep the price lowest in market.
Actively participate in research and development activities to offer newtechnology.
Try to maintain the uniqueness of product as long as possible. Try to be market leader in product and service range offerings.
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Try to eliminate the intermediaries involved in providing products and services toreduce the cost
Indian telecom industry should make alliance with foreign supplier and investjointly in Research & Development activity.
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CONCLUSION1. Improved product and process quality of Cellular service provider.2. Incorporates lessee learned and best practices from global telecom industries.3. Cellular providers giving the attractive schemes and value added services to the
customers.
4. Provides a quality system network.5. Thus the level of customer satisfaction is maintained by the service providers
specially Bharti Airtel, and there is more scope for them in the INDIAN market
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BIBLIOGRAPHY
Books:
Research Methodology
News Papers:
Times of India. Economic Times. Finical Express
Web Sites:
www.wikipedea.org studygalaxy.com
asiancorrespondent.com Vodafone. in
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Questions
A Comparative Study of customer satisfaction for cellular service
providers B.S.N.L, Airtel, Idea & Vodafone in Warje region of Pune
city.
QUESTIONNAIRE
Customer Details: Date:Name: __________________________________________Age__________
Address: ______________________________________________________Contact No: ___________________________________
Gender: Male Female
1.) Do you have a mobile phone?
a) Yes b) No
2.) Which service provider companys sim card are you using?
a)Airtel b) Vodafone c) BSNLd) Idea e) if Other _________________
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3.) Which type of connection are you using?
a) Postpaid b) Prepaid c) Both
4.) Are you satisfied with the with network performance, reliability and
Availability?
a) Highly Dissatisfied b) Satisfied
c) Dissatisfied d) Highly Satisfied
5.) Are you satisfied with billing performance of your cellular service provider?
a) Highly dissatisfied b) Satisfied
C) Dissatisfied d) Highly Satisfied
6.) What do you think about call rate?
a) High b) Low
7.) Which service providers scheme of call rates attracts you more?
a) Airtel b) Vodafone c) BSNL
d) Idea
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8) What are supplementary and value added services you get from your cellular
service provider?
a) Talk time b) Free SMS c) Free Internet
d) None
9.) From last how much period are you using this companys service?
a) Last 5 to 7 yrs. b) Last 2 to 4 yrs.
c) Last 1 year d) Last 4 to 6 months
10. Are you satisfied with overall service quality of your service provider?
a) Highly dissatisfied b) Satisfied
C) Dissatisfied d) Highly Satisfied
11.) Will you continue with this service provider?
a) Yes b) No
i) If yes/No then why?
............................................................................................................................................
......................................................