sandeep singh monga

7/31/2019 Sandeep Singh Monga

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Sistema Shyam Teleservices (SSTL )

A PROJECT REPORT

TO STUDY CURRENT TREND AND MARKET SHARE IN

WIRELESS INTERNET

AICTE APPROVED

LEXICON INSTITUTE OF MANAGEMENT EDUCATION, WAGHOLI,

PUNE

PUNE UNIVERSITY, PUNE

SUPREVISED: SUBMITTED BY:

SANDEEP MONGA

Submitted in Partial Fulfilment of the Required Research Project

MASTER IN DUSINESS MANAFEMENT (MBA)

RESEARCH METHODOLOGY

2011-2013


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DECLARATION

We, hereby declare that the project work entitled CURRENT STUDY AND MARKET SHARE IN WIRELESS INTERNET which is submitted toPUNE university is a record of an original work done by us ,under theguidance of Ms. Rimpy GoyaL ,a faculty member and this project work

has not perform for the basis of the award of any degree or diploma/association ship/fellowship and similar project if any.

BY:

MR.SANDEEP MONGA

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

MS.RIMPY GOYALDR.AVANEESH JUMDE


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SR. NO CONTENTS PAGENO

1 Executive Summary

2 Introduction

3 Company Profile

4 Research Methodology

5 Data Analysis

6 Recommendation

7 Conclusions

8 Bibliography

9 Annexure

10 Questionnaire


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ACKNOWLEDGEMENT

First of all I would like to thank the Management at SistemaShyamTeleservices LTD. (MTS) for giving me the opportunity to do mytwo month project training in their esteemed organization.I am highlyobliged to

Mr. Arun Vajpai

(Area Sales Manager) who has provided me guidance, inspiration,

perspective and stimulating discussion, through the project. His constantreview and excellent suggestions through out the project are highlycommendable. A study like this cannot be completed without help fromother persons and therefore I would like to express my gratitude to

Prof. Rachita Bhattacharya to provide me crucial guidance in theanalytical part of this project. My heartfelt thanks to all executives whohelped me gain knowledge about the actual working and the processesinvolved in various departments .Finally I would like to thank our friendsand family member for giving me constant support and encouragement.Jyoti A.Gohil

MBA Marketing


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Chapter 1


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1.1 Introduction

MTS was established in October 1993 by Moscow City TelephoneNetwork (MGTS), T-Mobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a majority stake inMTS and has remained the primary owner ever since.

MTS was the first company to launch GSM services in the Moscowregion in 1994. In subsequent years, MTS has expanded rapidly inRussia largely through the acquisition of smaller independent playersand became the leading national mobile operator.

MTS initiated its international expansion in 2002 through theestablishment of Mobile TeleSystems LLC, a joint venture withBeltelecom, the national fixed line operator in Belarus.

In 2003, MTS continued to expand in the CIS by acquiring the leadingoperator UMC in Ukraine, the biggest CIS market outside of Russia.

MTS entered Central Asia in 2004 through the acquisition of the leadingmobile phone operator in Uzbekistan, Uzdunrobita. In June 2005, theCompany acquired Barash Communications Technologies, Inc., thenumber one operator in Turkmenistan.

In September 2007, MTS continued its international expansion throughthe acquisition of the leading mobile operator in Armenia, K-Telecom.

In December 2008, MTS started to expose its brand outside the CISborders. MTS and Shyam Telelink Limited, JSFC Sistema'stelecommunications subsidiary in India, announces the agreement toallow Shyam Telelink to use MTS brand in India. The decision tointroduce the brand to India is reflective of the brands success in theCompanys markets of operation since its launch in May 2006. In April2008, MTS brand was recognized as one of the BRANDZ Top 100Most Powerful Brands, a ranking published by the Financial Times andMillward Brown, a leading global market research and consulting firm.

Today, Mobile TeleSystems is the largest mobile phone operator inRussia and the CIS. MTS is a multinational corporation of a new type,
http://annualreview2008.mtsgsm.com/


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based in a high-growth emerging market and simultaneously enteringother developing markets with a unified brand. Having been recognizedinternationally for corporate governance and transparency, MTS is notonly a leading Russian blue-chip company, but a truly global

organization .

Mobile Tele Systems OJSC ("MTS") is the leading telecommunicationsgroup in Russia, Eastern Europe and Central Asia, offering mobile andfixed voice, broadband, pay TV as well as content and entertainmentservices in one of the world's fastest growing regions. Including itssubsidiaries, as of December 31, 2011, the Group serviced over 100million mobile subscribers in Russia, Ukraine, Uzbekistan, Armenia andBelarus, a region that boasts a total population of more than 230 million.The Groups fixed business, as of December 31, 2011, had a total of 11.433 million households passed, 2.152 million broadband Internet and2.987 million pay-TV subscribers.

MTS has been listed on the New York Stock Exchange since July 2000and trades under the ticker MBT. The Companys shares have beenlisted locally on Moscow Interbank Currency Exchange (MICEX) sinceNovember 2003 under the symbol MTSI.

The free float of the Companys shares is approximately 49.2%. MTS is50.8% majority-owned by Sistema, the largest public diversified financialcorporation in Russia and the CIS.

MTS Brand

MTS launched its current brand in 2006, building on the reputation asthe leader and highest quality operator in the region. The brand wasdeveloped to attract customers in a variety of cultural, socio-geographicand income segments with the consistent message of quality andleadership.

The strength of the brand was recognized internationally in 2008, whenMTS became the first and only Russian company to enter BRANDZTop 100 Most Powerful Brands, a ranking published by the FinancialTimes and Millward Brown, a leading global market research andconsulting firm.


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In December 2008, MTS extended its brand outside the CIS borders.MTS and Shyam Telelink Limited, JSFC Sistema's telecommunicationssubsidiary in India, announced the agreement to allow Shyam Telelink touse MTS brand in India. The decision to introduce the brand to India isreflective of the brands success in the Companys markets of operationsince its launch in May 2006.

MTS primary goal is to maintain its position as a leading mobile operator in Eastern Europe and Central Asia. The Company seeks to takeadvantage of opportunities to expand its network coverage in theRussian Federation and other countries where natural synergies can befound, particularly within the CIS.

In 2008, MTS continued to develop its redefined approach to customersthrough the promotion of its brand and the introduction of new productsand services. During the year, the Company launched HSPA-enabled3G networks and a number of initiatives to promote VAS in many of itscountries of operation, and will continue to do so during 2009.

This paper summarizes alternative approaches for estimating thenumber of households that have dropped their landline connection in

favour of a wireless connection.1 The paper provides a methodology for esti mating the number of cord -cutters for local areas. From a nationalperspective, evidence clearly points to the growing number of cordcutters. This trend notwithstanding, there has been little research intothe demand for wireless only access.

Further, there is limited information ongeographic distribution of wireless- only households. The trend towardscell-only households is important because it impacts a number of regulatory issues ranging from the discussion and measurement of localloop competition to the funding of universal service obligations.Infrastructure planning and investment decisions are also affected bytrends in wireless only households. Finally, the number of wireless onlyhouseholds enters any discussion on the demand for triple-play or quad-play services. What are the drivers for the demand for wireless onlyaccess? Previous studies have pointed to the value of mobility and theability to make free long -distance calls. According to the PEW internetProject (2006) another striking impact of mobile technology is that


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Americans are using their cell phones to shift they way they spend their time. According to the PEW survey, some 41% of cell phone owners saythey fill in free time when they are travelling or waiting for someone bymaking phone calls. And 44% say they wait to make most of their cellcalls for the hours when they do not count against their anytimeminutes in their basic calling plan. Furthermore, when it comes to thefeatures Americans would like to add to their cell phones, the desire for maps tops the charts by a clear margin. Fully 47% of cell owners saythey would like this feature and 38% say they would like to have instantmessages from select friends sent to their cells. Some 24% of cellowners say they would like to use their phones to conduct searches for services such as movie listings, weather reports, and stock quotes. Anda similar 24% of cell owners would like to add email to their mobile-phone functionality.

The growth of wireless telephony with the increasingset of features and capabilities included in wireless services raises anumber of issues. The first concerns the nature of intermodalcompetition and regulation. The second focuses on understanding thedemand for telephony services. The study of both issues requires the

ability to estimate the size of the wireless-only market. There arenational estimates of wireless-only households. However, we argue thatthese have limited value since competition is inherently a local issue.National estimates are derived from face-to-face interviews. Theexpense of this type of data collection limits sample sizes. And thesesample size limitations restrict the ability to project cell-only householdpenetration rates at local geographies such as counties or telecomgeographies such as wire centers.


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Definition,

Market Share Definition and Examples

Market share is the percentage of a companys sales of a particular product or service in a given area. It can be calculated in terms of revenue or of units sold. Knowledge of a companys share is useful for investors, since businesses with a large share usually have lower

operating expenses and are therefore more profitable than smaller competitors. Business owners can also benefit from reading the changesin share, in order to determine their competitive strength in comparisonto other companies in the same sector, and assess performance fromyear to year.

There are four basic ways to enhance market share. You can improveyour product, lower the price or offer special discounts and sales.Furthermore, you can find new means of distribution so your product canreach more places and people, as well as advertise and promote your product. Reasons to increase share may include economies of scale (ahigher volume can help develop a cost advantage), sales growth in astationary industry (when the industry is in a stalemate, sales can begiven a boost by increasing share), reputation and influence However,increased share might be a counterproductive endeavor if it isassociated with expensive advertising or a big price decrease that wouldrender it unprofitable. Also, an increased share may bring about ademand for huge investments in new equipment and employees that acompany may not be able to meet. It is even possible to benefit from adecreased share if lower costs enhance profitability. Managing marketshare is a delicate subject with many factors and concepts to beconsidered.

The company with the biggest market share is the market leader, andusually has the highest marketing expenditures, distribution, price

changes, and new product innovations. Market challengers are thecompanies working to increase their share. The leader must constantly


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survey the market because the challengers are consistently trying tocapture share. The market leader has three options to preserve itsmarket position: expand the total market, protect share, or expandshare. Developing more usage, new uses, or users increases markets.Leaders can protect share by observing their position and quicklyalleviating any weaknesses. Constant innovation is the best way toprotect share. When leaders become complacent with their products or services, the challengers find it easier to make progress.

The market challenger must try to take share away from the leader. Thechallenger must have some viable competitive edge to attack theleaders share. The challenger can attack other competitors through a

direct attack by altering price, promotion, or distribution, or indirectly bydiversifying or catering to untapped segments. Market share is readilycomprehended by the majority of managers, employees, andshareholders; hence, it is frequently used to measure success. It isessential to understand market share, how it is used to identify marketplayers, and how the different participants use it to determine their market strategy.

Why example of why study of market share.One company's marketshare is integral when you are looking to invest in a company. Marketshare calculation can often be misleading and companies caneasilymanipulateit .Market share is the percentage a company has of anoverallmarket. For instance, if they sell "widgets," market share will tellyou what percentage of all "widgets" made in the world they sell. If acompany is growing market share, that is positive. Losing market share

intheotherotherisnegative.

Why is calculation of market shares so important?

Calculation of market share is important to give the clear image if thecompa nys market share has the growing tendency or it should beavoided because it has negative trend. To get precise answer, its thebest to answer on three important questions Market potential - "How

many dollars are there in this market for my concept?"


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Market share - "How much of the potential in the market do I capture?"

Market opportunity - "Which markets offer the greatest opportunity for growth?"

Also, after that ask yourself few useful questions about Products or services sold and Market size.Products and services sold

Do I calculate in dollars or units?

Do you take into account booked orders or delivered orders?

If I calculate in dollars (or any other currency - pardon my Canadian

biases), do I compare real dollars year to year or do I adjust withinflation?

How do I incorporate sales from subsidiaries?

Market size

How do I define my market? As Ben Bidwell, who headed marketing atFord Motor Co., once said, "Define your market, don't let it define you."

Do I include all countries or only the ones where I am active?

Do I include taxes?

Do I include the service component?

After determining your priorities, you can proceed to define your marketand calculate market shares.It can be done through few steps:

First you have to define your market before you can calculate anything,including shares. This means that the sales of one big company are amuch smaller wedge than sales of its products. So, basically try tospecify the market you are trying to calculate first.

Second, search for the total number of items sold in your market. Few


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sites like Thestreet.com or Yahoo! Finance are great places to learnsales figures of large corporations. You simply have to look at their quarterly and yearly findings about the product(s) you are interested in.For instance, if you look for Apple check the number of how many iPods and iPhones the company has sold, how many has intention tomanufacture, to expand, etc. Of course, dont forget to find the number for every company that competes in the space in your market.

Your next step should be dividing the number of units that your company(or the company that you are interested in precisely) has sold by thenumber of total units in the space.

Next, you should calculate the percentage of market share. The mostsimple equation would be if your company for example sold 10 widgetsand the industry sold 100 widgets in total. Its easy then to calculate thatyour company would have a 10 percent of market share. Includenumbers youve got in previous steps and you should be sure about your shares and was your investment wise. But that kind of evaluation can bedone after the last step.

In the last step, you should determine if the market share is growing or shrinking. Earnings coupled with a growth for sure propel a stock higher.So basically if your company is gaining market share over competitors ina so called hot market, then it may make it an attractive investment. Youshould always consult your broker or do your own due diligence beforebuying. Conversely if it is losing market share, then you might want tolook at the competitor who is stealing it.

Also, dont overlook this:

How to obtain market share when there is no data available Bottom-up:

Track the number of units sold and the number of contracts awardedthrough press releases and articles;

Create a database (Excel works well usually) to add them up;

Assuming that one is never able to track all contracts awarded,extrapolate using what you know of the total market size


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Players revenues:

Gather information from annual reports and company information about

the total revenue in a particular market; Add revenues from mainplayers; Extrapolate for smaller players based on number of employees,or estimate of revenues Demographics Go back to statistics anddemographics; Assume a penetration percentage; Calculate volume inunits; Apply price/cost per unit. Similar market Select a similar market toyours (in size or in behavior); Extrapolate from a market you know well,or where more information is available; Adapt the number obtained for particularities of the market; Use an estimate of market size, and not a

precise number.

As a conclusion

It is now understandable how misleading a market share calculation canbe and how companies can easily manipulate them. In order for you touse market shares effectively:

Always write down your assumptions and make sure you compare"apples with apples."

Always beware of market-research reports which often lack explanationsof how the market calculation was done. In fact, you should almost

Always pick up the phone and talk to the person who originated thecalculation, to check his/her assumptions


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CHAPTER1. 2

LITRATURE REVIEW


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1.2.1 . LITERATURE REVIEW

The telecommunication has been part of a larger class of industries,public utilities, with similar technological, economic and public servicecharacteristics by tradition. According to Melody (2001) public utilities isderived from the law in any country. Where the demand for a good or service is considered a common necessity for the public at large and thesupply conditions are such that the public may not be provided withreasonable service at reasonable prices.

Service is a form of attitude which is related to satisfactionand also leads to consumer loyalty (Johnson and Sirikit, 2002) andfuture purchase. In particular consumers prefer service quality when theprice and other cost elements are held constant (Boyer and Hult, 2005).It has become a distinct and important aspect of the product and serviceoffering (Wal et al., 2002). According to Leisen and Vance (2001)service quality helps to create the necessary competitive advantage bybeing an effective differentiating factor. Service quality was initiated inthe 1980s as the worldwide trend when marketers realized that only aquality product could not guaranteed to maintain competitive advantage(Wal et al., 2002). Competitive advantage is a value-creating strategy,simultaneously which is not implemented by any existing or potentialcompetitors (Barney, 1991). Moreover, according to them, a competitiveadvantage also sustained when other companies are unable to duplicatethe benefits of this strategy.

Service quality is essential and important for atelecommunication service provider company to ensure the quality


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service for establishing and maintaining loyal and profitable customer (Zeithaml, 2000; Leisen and Vance, 2001). Conversely, Johnson andSirikit (2002) stated that service delivery systems have the ability toallow managers of company to identify the real customer feedback andsatisfaction on their telecommunication service. Since, quality reflectsthe customers' expectations about a product or service. Lovelock (1996)stated that this customer driven quality replaced the traditional marketingphilosophies which was based on products and process. Service qualityis different from the quality of goods. Since, services are intangible,perishable, produced and consumed simultaneously and heterogeneous(Zeithaml and Bitner, 2000). So, it is a major problem for thetelecommunication service providers, especially for the mobiletelecommunication service providers to deliver quality serviceconsistently. According to Wang and Lo (2002) in marketing andeconomics quality often depends on the level of product attributes. Theyalso mentioned that there are two primary dimensions for quality inoperation management. At first, fitness of use, which refers to product or services that is supposed to do and possess features to meet thecustomer needs. Another one is reliability, which represents the productthat is free from deficiencies. Accordingly, it is important for a companyto understand how customers perceive their service quality.Consequently, Rust and Oliver (1994) pointed out that companies needto measure consumers' satisfaction with their products and services.Generally, service and product quality is in the mind of the consumer.So, it is necessary for the mobile telecommunication service provider totalk with the consumers for measuring quality. Since, quality reflects theextent to which a product or service meets or exceeds consumers'expectations (Wal et al., 2002). Wang and Lo (2002) studied oncomprehensive integrated framework for service quality, customer value,and customer satisfaction and behavior intentions of customers inChina's mobile phone sector. In this study, they conceptualized factorswith service quality as antecedents to customers' overall evaluation of service quality rather than dimensions or components of the construct.Herein, they found that the competition between two mobile phoneservice providers is more intense than ever. This competition is not onlyin network quality by a large amount of investment in network extensionand upgrading but also in customer retention and acquisition by direct


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and indirect price reduction.

H1: Service quality has a significant influence on consumer perceptionregarding choice mobile telecommunication service provider.

Price

Price competition has become cutthroat in mobile telecommunicationindustry. Trebing (2001) mentioned that are two sets of strategies for pricing behavior. The first is limit entry pricing, which is used for

protection of the market position of the firm; second is the high accesscharges for new entrants, and the third one is tie-in sales to write off oldplant or standard investment against captive customers. According tohim limit entry pricing involves setting low prices in highly elastic marketsto attract or retain large customers with monopolistic buying power, whilemaintaining high prices in inelastic markets.

Price plays a vital role in telecommunication market especially for the

mobile telecommunication service providers (Kollmann, 2000). It'sincluded not only the purchase price but also the call and rental charges.Generally, a price dominated mass market leads to customers havingmore choice and the opportunity to compare the pricing structures of different providers. Therefore, the company that will offer lower charges,the more customers will commit themselves to the telephone networks,so more call minutes will achieved. According to Kollmann (2000)income from the number of call minutes determine the basic commercial

success for the network providers. He also added that the success of thetelecommunication sector in market place is depend on continuingusage and pricing policies, which need to be considered on severallevels. That is right from the beginning when purchasing the end-user set. Since, a common strategy for a company extending their product or service is to differentiate their offerings vertically (Draganska and Jain,2003).

H2: Price has a significant influence on consumer perception regardingchoice mobile telecommunication service provider.


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Product Quality and Availability

Consumer's perception of product quality is always an important aspectof a purchasing decision and in market behavior. Since, consumersregularly face the task of estimating product quality under conditions of imperfect knowledge about the underlying attributes of the various

product offers with the aid of personal, self-perceived quality criteria(Bedeian, 1971 adapted by Sjolander, 1992). According to Sjolander (1992), the consumer behavior in modern market is different from thetheoretical case of consumer decision making in free markets.Generally, free and competitive markets are composed of buyers andsellers each of whom possesses: Perfect information about all possibleproducts and their respective utilities; A well defined and explicit set of performances; The ability to determine optimal combination of various

products given their budget constraints; A knowledge of prices, whichdoes not affect the subjective wants or satisfactions of the consumer.(Monroe and Petroshius, 1973 adapted by Sjolander, 1992).

In fact, it is necessary to define quality before it can be measured. Although, there is no global definition of quality exists (Sebastianelli andTamimi, 2002). It can be defined in a variety of ways. Yoon and Kijewski(1997) pointed out that quality can be categorized into two perspectives.

One is the marketer's perspective, which is typically product-based or manufacturing-based and another one is consumer's perspective, whichis typically user-based or value-based. Generally, product quality fromthe marketer's perspective is associated with specific feature, function or performance of a product. On the other hand, product quality from theconsumer's perspective is associated with the capacity of a product tosatisfy consumer needs (Archibald et al., 1983). According to Lambert(1980) consumers often attribute quality to branded products on the

basis of price, brand reputation, store image, market share, productfeatures and country of manufacture. So, price is an indicator to


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measure the product quality, which is based on the theory that quality isa measure of the utility, or the want-satisfying capacity of products(Sjolander, 1992). He also added that the more quality a productpossesses the more utility it contains, and the higher price it will obtain inan open market exchange. That means similar products offered to themarket at different price, contain different amounts of utility, and thatthere is a direct relationship between quality and price. The actual price-quality relationship is a complex interaction between price, brand name,store image, product features, and brand awareness (Lambert, 1980;Gerstner, 1985).

Overall, the quality of a product is also related to the availability of theproduct's main functional features on one hand and the consumer'sexperience-in-use of the other auxiliary features on the other hand (Yoonand Kijewski, 1997). A product's main functional features are thesources of the primary benefits that the consumers expect to obtainwhen purchasing a product. In general, consumers' evaluations of aproduct's overall quality are related to the availability of these features incomparison with the competition (Lambert, 1980; Nowlis and Simonson,1996). Hence, it is necessary to talk to the consumers for measuring thequality. Since, quality reflects the extent to which a product or servicemeets or exceeds consumers' expectations (Wal et al. 2002). So, thesuccess of the telecommunication sector in market place is alsodepending on product quality and availability.

H3: Product quality and availability has a significant influence onconsumer perception to choose mobile telecommunication serviceprovider.


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1.2.2 PURPOSE OF THE STUDY

The purpose of this study is to develop concepts to describe,conceptualise and analyse the emerging software component marketfrom the point of view of the industrial buyer. In other words, in thisstudy, existing concepts and theoretical models describing markets areexplored and brought into the specific context of industrial purchasing inemerging software components. The research includes preliminarytheory building. The theory building in this study is about using theexisting conceptualisations and theoretical models, and on the basis of these, compiling a conceptualisation that is applicable in the specificindustry setting. The building of the theoretical conceptualisation of themarket from the buyers perspective is conducted through applying theexisting literature, due to the fact that there exists a lot of knowledge onthe phenomenon of market in the literature. This knowledge, however, isscattered across various streams of research and thus it needs to begathered and elaborated in such a form that it can be applied inanalysing the research phenomenon under study in this research. Theexisting knowledge needs to be brought into the industrial purchasingperspective in the software component market setting.

* The purpose of this research is to investigate how the consumer areinflenuced by brand while buying MTS Product.

* To analyze the seven factor of brand loyalty such as brandname,product quality,price,style,promotion,services quality and store

environment with respect to consumer loyalty towards branded products

* To evaluate the personal views of different consumer regardingchoices among various branded wireless product.

* To identified which branded wireless internet is mostly preferred bypeople.

* To study about current trend and market share in wireless internet.

* To investigate brand loyalty of consumer towards product of the com


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1.2.3 IMPORTANCE OF THE STUDY

The growth rate in the Malaysian telecommunication sector had beenaffected badly over the last decade by economic crisis of the late 1990's.Thereafter, it was potential for exponential market growth attracted newplayers to this business, which turns lead competition to dramaticallyincreases.

Nowadays they are trying to attract customer by offeringaggressive price promotion. As competition is increasing among thecompanies, it is necessary for them to know about the consumers'perception about the price, promotion, product and the other importantfactors that are playing a vital role to choose the telecommunicationservice providers. This study aims to find out what are critical factorsthose are playing an important role to select the telecommunicationservice provider. Result provides a comprehensive analysis of theimportant factors for playing an important role for the customer to selectthe telecommunication service provider.

The analysis confirms the significant positive relationship of price, service quality, product quality and availability, and promotionaloffer for consumer perception. These factors are expected to have agreat role during the time to choose telecommunication service provider.In conclusion, practitioners can be deriving a better understanding of theactivities that are being played a vital role for the consumer perception.

Business growth lead to necessary growth of MTSsIT infrastructure and higher complexity of the infrastructuremanagement. The MTS information technologies team faced thechallenge of reducing capital and operating expenditures for maintenance of the billing systems in the regions where the company ispresent.


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In 2008, MTS began a project to virtualize applicationservers of the OSS Foris billing system. The project covered nine timezones in the territory of Russia.

MTS chose to deploy virtualization technologies by VMware andimplement VMware Professional Services without involving the companysolution partners.

MTS has been using VMware products since the year 2004, and thispositive experience proved the high quality and reliability of the vendor,says Valery Shorzhin, information technologies director at MTS. In view

of the high importance of virtualization deployment for MTS businessdevelopment, we made a decision to carry out the project with thevendor. This vendor has the deepest knowledge of the product, testedmethodology and access to best practices in the area, all around theworld.

The first and most complex part of the project covered theMoscow region. The results and the experience of this projectimplementation was the model for the solutions in the other regions


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1.2.4 STATEMENT OF THE PROBLEM

Many of the customer not willing to buy this product.Not properlyawareness not know about the brand and the their product itself, Theprice is another important determinant proven to be statistically result wecan conclude that price has significant negitive impact on consumer perception choice regarding telecommunication service provider.

The result regarding product quality and availabilityshowed that it has positive impact on consumer perception regardingchoice telecommunication service provider. Hence, product quality fromthe marketer's perspective is associated with specification, feature,function, or performance of a product.

In general, consumer's post-purchase or after-useevaluation of a product's overall quality is positively related to theavailability of the product's main functional features on one hand and theconsumer's experience-in-use of other auxiliary features on the other

hand. A product's main functional features are the sources of the primarybenefits that the consumers expect to obtain when purchasing product.


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1.2.5 LIMITATION

Publication HeraldDate 11th July 2012Headline MTS enhances MBlaze

benefits by about 200%

Publication Gomantak TimesDate 27th July 2012Headline MTS strengthens

product portfolio


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CHAPTER 2


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2.1 CURRENT STATUS OF THE COMPANY

Wireless Broadband Service (MTS MBlaze)

MTS launched EVDO Rev A based high-speed mobile broadbandservice, MBlaze, in November 2009 and has seen tremendous marketacceptance with over 5,00,000 (As per February 2011 Data) customersin a short span of time. In April 2010, MTS launched MTS TV for MTSMBlaze customers. MTS MBlaze have its coverage in 100+ cities as of February 2011. MTS has also announced pan-India roaming for its usersin April May 2010. MTS also provides MBrowse which is CDMA-1xtechnology based internet service. According to Vsevolod Rozanov,President & CEO, MTS India, With a view to enhance customer experience, MTS has prepared a blue print to take the mobile broadbandusage in the country to the next level. In a phased manner, MTS will belaunching seamless HSD services across some of the busiest highwaysin the country.

The National Broadband Plan envisages provision of 160 million broadband connections including 60 million wirelessbroadband connections by the year 2014 . Hence, there is a hugeopportunity for the growth and proliferation of High Speed MobileBroadband services in the country. MTS is rapidly expanding its highspeed data (HSD) network and currently addresses over 92% of datapotential across India.

On September 5, MTS India announced thecommercial availability of its EVDO Rev B Phase 2 network which iscapable of offering peak downlink of 9.8 Mbit/s. Started with Jaipur, asShyam Group's home town MTS MBlaze Ultra will be rolled out in topmetros and other cities of India very soon.

National Telecom Award

MTS, the mobile telephony brand of Sistema-Shyam Teleservices(SSTL) has been conferred National Telecom Award for being the

fastest growing data operator in India. Mr. Vsevolod Rozanov, CEO,


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Sistema Shyam TeleServices Ltd. received the award on behalf of thecompany from Mr J S Sarma, Chairman, Telecom Regulatory Authorityof India and Mr P J Thomas, Secretary, Department of Telecom,Government of India.

The award is recognition of MTS establishing itself as afastest growing data operator in the market. MTS has close to one lakhmobile broadband subscribers in less than six months, for its high speedmobile broadband service, MBlaze . Within a short span time, thecompany has launched its services in 15 telecom circles(UP East andWest is the latest circle) across the country and has already achieved aoverall subscriber base of 8 million customers.

MTS India Offices

At present, MTS India present in 17 circles out of 22 telecom circles of India.

Andhra Pradesh Assam Bihar - Jharkand Delhi [7] Gujarat Haryana Kanpur Karnataka [8] Kerala Kolkata Madhya Pradesh - Chhattisgarh Maharashtra - Goa

Mumbai Rajasthan Tamil Nadu Uttar Pradesh East Uttar Pradesh West - Uttarkhand West Bengal - Sikkim
http://en.wikipedia.org/wiki/Telecom_Regulatory_Authority_of_Indiahttp://en.wikipedia.org/wiki/Telecom_Regulatory_Authority_of_Indiahttp://en.wikipedia.org/wiki/Telecom_Regulatory_Authority_of_Indiahttp://en.wikipedia.org/wiki/Telecom_Regulatory_Authority_of_Indiahttp://en.wikipedia.org/wiki/MTS_MBlazehttp://en.wikipedia.org/wiki/MTS_MBlazehttp://en.wikipedia.org/wiki/MTS_MBlazehttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Jharkandhttp://en.wikipedia.org/wiki/Jharkandhttp://en.wikipedia.org/wiki/Jharkandhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttarkhandhttp://en.wikipedia.org/wiki/Uttarkhandhttp://en.wikipedia.org/wiki/Uttarkhandhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Sikkimhttp://en.wikipedia.org/wiki/Sikkimhttp://en.wikipedia.org/wiki/Sikkimhttp://en.wikipedia.org/wiki/Sikkimhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Uttarkhandhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Jharkandhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/MTS_MBlazehttp://en.wikipedia.org/wiki/Telecom_Regulatory_Authority_of_Indiahttp://en.wikipedia.org/wiki/Telecom_Regulatory_Authority_of_India


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2.2FUTURE PLAN OF THE COMPANY

MTS

MTS is the only CDMA-only operator in India (Tata and Reliance haveCDMA as well as GSM networks). MTS has said that it will bid for CDMAspectrum only and won't jump on to the GSM bandwagon, despite GSMbeing more popular in India. So, in case the company decides toparticipate in the auction process it will have no competition and willtherefore likely win spectrum.

On the other hand, MTS is facing a lot of troubletoo. The government of India has hiked the price for CDMA spectrum inthe 800 MHz band by 1.3 times, which MTS claims is unfair given thatthere is no competition for this spectrum. So, even if MTS were to payonly the base price for spectrum it will have to pay Rs 17,200 crore.While GSM operators will have as much for Rs 14,000 crore (thoughthey are likely to face bidding and therefore might need to pay more for a

pan India network). MTS is also complaining about GSM players gettingliberalised spectrum that can be used to offer any wireless service, whileCDMA spectrum can only be used for 2G services.
http://www.themobileindian.com/glossary/GSMhttp://www.themobileindian.com/glossary/MHzhttp://www.themobileindian.com/glossary/MHzhttp://www.themobileindian.com/glossary/GSM


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The spokesperson of MTS remained non committal on questions of whether the company will bid or not, saying that it will depend on therules of auction. He said the company does want to continue doingbusiness in India.MTS has also challenged the cancellation of its license saying that it hadasked for CDMA spectrum and since it was the only company to ask for this spectrum there was no possibility of it having jumped the queue or of any other wrongdoing. The case is queued for hearing but no datehas been declared yet. The government of India has contested thatauction cannot be the only route for natural resource allocation, whichthe Supreme Court has till date not given a verdict on. If the court agreeswith the government then MTS will have better chances of winning the

case. But MTS cannot depend on it.Given the aggressive marketing that MTS has been involved in, and alsothe number of subscribers that it already has there is a high probabilityof the company's participation in the bidding process, which if it does, itwill in all likelihood win as there is no other player bidding for CDMAspectrum (at least nobody till now has showed interest).


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2.3 COMPANY PROFILE

The 1990s

1993:

MTS receives first license to provide mobile phone services usingthe GSM standard

1994:

MTS begins offering mobile phone services in Moscow and thesurrounding region

1997:

MTS expands operations into Russian regions

The 2000s

2000:

Initial Public Offering (IPO) of MTS securities on the New YorkStock Exchange (NYSE)

2002:

MTS introduces pre-paid Jeans brand and begins expansion intoneighboring CIS countries through joint venture in Belarus

2003:

MTS acquires UMC, a leading mobile phone operator in Ukraine2004:

MTS receives additional licenses in Russia to extend its licensecoverage to include all but two regions of the country

MTS enters Uzbekistan through the acquisition of Uzdunrobita, thecountrys largest mobile phone operator

2005:


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MTS enters Turkmenistan by acquiring Barash CommunicationTechnologies, Inc. (BCTI), the leading telecommunicationsoperator in the country

2006: MTS appoints new CEO and CFO MTS launches new brand identity MTS adopts 3+1 Strategy MTS creates Group organizational structure

2007:

MTS launches 3+2 Strategy MTS enters Armenia through acquisition of leading operator, K-

Telekom (VivaCell) Allocation of 3G licenses in Russia, Uzbekistan and Armenia Countrywide rebranding of operations in Ukraine Launch of mobile broadband in Ukraine

2008:

Mikhail Shamolin appointed as President & CEO MTS named as one of the Worlds 100 Most Powerful Brands MTS launches 3G networks in Russia and Uzbekistan MTS signs strategic partnership with Vodafone

The leading mobile phone operator in Russia and CIS

A top 10 global mobile operator

One of the 100 most powerful brands in the world*

A growing base of over 95 million subscribers within a market populationof 230 million

MTS, together with its subsidiaries, expanded its total subscriber base toover 95 million as at December 31, 2008

The Russian regions, together with Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, in which MTS and its associates and subsidiaries

are licensed to provide GSM services, constitute a total population of more than 230 million people


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Continued development of our value-added services (VAS) and high-speed networks

MTS is focused on delivering the highest-quality products and servicesto its customer base, including VAS services such as:

Voicemail

Text

SMS and MMS

Internet (mobile broadband)

News

Entertainment

Email

Ring-back tones

Mobile advertising

Other data and content services

The Groups products, services and VAS are enabled by GSM, CDMAand 3G/HSPA networks, with 3G services already available in 20 citiesacross Russia, in five cities in Uzbekistan, in three cities in Armenia andnationwide in Ukraine through a CDMA-450 network (as of April 2009)

Strong history of delivering shareholder value

MTS completed its IPO and listed its Level-III ADRs on the NYSE in July2000, under the symbol MBT the second-ever Russian company to liston the NYSE

The Companys shares have been listed locally on MICEX sinceNovember 2003, under the symbol MTSI

The free float of the Companys shares is approximately 46.7%*

MTS is 52.8% majority-owned by Sistema, the largest diversified publiccorporation in Russia and the CIS


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The Company became SOX-compliant in 2007

MTS has been ranked as one of the most transparent companies inRussia by Standard & Poors

MTS was named winner of the Best Investor R elations by a RussianCompany Award at the 10th annual IR Magazine Continental Europe

Awards 2008

Garnering international recognition for our corporate accomplishmentsand the strength of our brand

In January 2008, MTS became the first Russian company to receive anomination in the 13th Annual Global Mobile Awards hosted by the GSM

Association (GSMA), the global trade association for the mobile industry

In April 2008, MTS became the first Russian brand to be named amongthe top 100 most powerful brands in BRANDZ 100, a rankingpublished by the Financial Times and Millward Brown

In May 2008, MTS was included in the InfoTech 100 ranking of the best-performing technology companies by BusinessWeek

In June 2008, MTS was recognized by Readers Digest as the Mos tTrusted Brand among mobile operators in Russia

In September 2008, MTS received three nominations for the WorldCommunications Awards 2008. The Company made the shortlist in theBest Brand, Best Mobile Operator and Best Project Managementaward categories

In October 2008, MTS became the first and only Russian company to

join the Mobile Marketing Association


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2.4 Financial position of the company

SSTLSistema Shyam TeleServices Ltd (SSTL) is an Indian mobileoperator with spectrum in 22 license circles, which include all 28administrative states and 7 union territories in India with totalpopulation of approximately 1.16 billion people.

Ownership and Management

The President of SSTL is Vsevolod Rozanov and the Chairman of theBoard of Directors is Ron Sommer.Business overview Company website: http://www.mtsindia.in SSTL is a CDMA based Mobile Telephony & Wireless BroadbandServices Provider and offers Voice, data and VAS (Value AddedServices) products. At present, the company is commerciallyoperational in 22 circles and has pan-India footprints under the Brandname "MTS".SSTL is strongly focused on "Data Centric, Voice Enabled" strategy toprovide mobile broadband services to customers across India. In ashort span of time, MTS in India has secured over 16 million wirelesssubscribers and provides mobile broadband services to more than 1.5million customers in over 400 cities across the country.SSTL is one of the fastest growing telecom companies in thecompetitive Indian market as well as one of the top three data service

Company Effective ownership

SSTL 56.7%
http://www.mtsindia.in/http://www.mtsindia.in/http://www.mtsindia.in/http://www.mtsindia.in/


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providers in India. SSTL also has secured the position of secondlargest CDMA operator worldwide after China Telecom in terms of monthly net additions. Being a customer centric organization, SSTLtends to reach consumers with integrated marketing communications

that include a mix of traditional and new media as well as creativepromotional activities.In 2011, SSTL successfully launched the world's first CDMA EV-DORev. B Phase II network. The network has been launched in the cityof Jaipur, with more cities to follow subsequently. SSTL has alsostarted a phased roll-out of HSD services on major highways acrossthe country and was the first telecom operator in India to launchSeamless High Speed Connectivity on Delhi-Jaipur and Chennai-Bangalore national highways.

Growth strategy SSTL has a pan-India presence and consolidating its position byproviding diversified services in mobile broadband telephony. Thecompany has tried to stay true to data centric-voice enabled strategyto provide innovative telecom solutions to customers whilemaintaining the company's commitments to its values and toupholding the highest ethical standards in its business dealings.SSTL aims to be "a step ahead" in innovation at all times be itproducts, services or business practices in order to secure itsleadership position in data services.SSTL plans to actively promote sales of Blackberry and Android smartphones in different price categories, including smart phones under theMTS brand, and offer content services targeted at corporatesubscribers and the mass market. The company intends to launch arange of new value- added services aimed at retail subscribers(mCommerce, mAdvertising, Location Based Services, MTS TV) andcorporate users, which should provide a steady revenue growth in theupcoming years.

As part of its growth strategy SSTL also intends to assess strategicpartnership options with other telecom operators in the event of potential consolidation in the Indian telecommunications market, andmay seek a public listing on the Indian market.SSTL will continue to develop strategies that will help it to becomemore customer centric and better positioned to capture growthopportunities in the market place, and will continue to buildcapabilities, scale up the global engagement model, and its fullservices offerings


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ABSTRACT

This Article provides a framework for the analysis of the potential effectsof the recent AOL/Time Warner merger on the markets for broadbandInternet access and broadband Internet content. We consider twoanticompetitive strategies that a vertically integrated firm such as AOLTime Warner, offering both broadband transport and portal services,could in theory profitably pursue. First, an integrated provider couldengage in conduit discrimination insulating its own conduit from

competition by limiting its distribution of affiliated content and servicesover rival platforms. Second, an integrated provider could engage incontent discrimination insulating its own affiliated content fromcompetition by blocking or degrading the quality of outside content. After examining the competitive conditions in the broadband portal andtransport markets, we evaluate the post-merger incentives of AOL TimeWarner toengage in either or both forms of discrimination.

BY DANIELL.RUBINFELD AND HAL J.SINGER*

The developing countries have lately experienced a surge in mobilephone adoption. New investment into the telecom sector has enablednetwork roll-out, and increasingly innovative business models havedriven down network operation costs and customer acquisition &retention costs, enabling pricing to be lowered significantly (Samrajiva,2009). The result is that people who, just a few years ago were unable toafford any form of telephone are now purchasing mobile phones andSIM cards and using them to make calls and send SMS. Given thedearth of fixed access networks, developing nations, especially those inSouth Asia, depend mobile phones to take their citizens online. All thesenew consumers are naturally creating increased demand for Internetcapacity. At the same time, the demand for Internet access capacity isincreasing because many South Asian countries (particularly India, andto a less extent others such as Sri Lanka) have been at the forefront of


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attracting a significant share of the booming market for business processoutsourcing.


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2.5COMPANY INFORMATION

MTS Russia Demand for wireless communication services in Russia hasgrown rapidly over the last ten years. On December 31, 2007, overallwireless telecommunications penetration in Russia stood at 119% (or 173 million subscribers) versus 105% (or 152 million subscribers) at theclose of 2006, according to AC&M-Consulting.

Key growth factors include

A rapidly growing economy Rising disposable incomes and a growing middle class Relatively low fixed-line penetration Prevalence of multi SIM card usage

In recent years competition has evolved to exist primarily between MTSand two other major players, each of which provides significant coveragethroughout Russia. In addition, MTS competes with local GSM, D-AMPSand CDMA operators in several Russian regions.Competition in the market is based upon:

Local tariff prices Network coverage and quality


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Brand perception Level of customer service provided Roaming and international tariffs Value-added services

MTS Mblaze postpaid internet

Currently MTS offers postpaid internet packages in the states of Haryana, Karnataka, Kerala, Maharashtra, Rajasthan, Tamilnadu andDelhi (U. T). To check your city coverage, The available postpaidschemes are listed below:

Postpaid Package Monthly Rental (In Rs) Free Usage Limit

Mblazer 1 598 1 GBMblazer 2 698 2 GB

Mblazer 3 798 3 GB

Mblazer 6 898 6 GB

Mblazer 10 1050 10 GB

Mblazer 15 1500 15 GB

Mblazer Night 499 10 GB (11 pm to 7 am)

All the above schemes will have extra usage charges of 40paise/MB(valid for 30 days). Service charges and other government taxes will becharged extra to the monthly rental.Listed below are 3 add-on packages for users who are already havingMBlazer 1,2,3,6, or 10 postpaid internet.


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Package Monthly Rental(In Rs) Free Usage Limit

Combo MBlazer LiteNight 99 3 GB Night (11 pm to 7 am)

Combo Mblazer HeavyNight 199 10 GB Night (11 pm to 7 am)

Combo MBlazer DelightWeekend 199

10 GB Night (11 pm Friday to7 am Monday)

MTS Mblaze prepaid internet

MTS offers custom prepaid internet packages for the statesof Bihar,Delhi, Haryana, Jharkhand, Karnataka, Kerala, Maharashtra, Rajasthan,Tamil Nadu and West Bengal. To check for your city coverage,MBlaze Unlimited @ Rs 999 MBlaze Unlimited internet package is available for Rs 999 and havevalidity period of 30 days. Two recharge vouchers are available: MBlazer

Unlimited 999 RCV (Recharge Coupon Voucher) worth Rs 999 andMBlazer Unlimited 999 FRC (First Recharge Coupon) worth Rs 999

MTS appoints new CEO and CFO

MTS launches new brand identity

MTS adopts 3+1 Strategy

MTS creates Group organizational structure2007:

MTS launches 3+2 Strategy

MTS enters Armenia through acquisition of leading operator, K-Telekom(VivaCell)

Allocation of 3G licenses in Russia, Uzbekistan and Armenia

Countrywide rebranding of operations in Ukraine


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Launch of mobile broadband in Ukraine

2008:

Mikhail Shamolin appointed as President & CEO

MTS named as one of the Worlds 100 Most Powerful Brands

MTS launches 3G networks in Russia and Uzbekistan

MTS signs strategic partnership with Vodafone

2.6 Definition,

Market Share Definition and Examples

Market share is the percentage of a companys sales of a particular product or service in a given area. It can be calculated in terms of revenue or of units sold. Knowledge of a companys share is useful for investors, since businesses with a large share usually have lower operating expenses and are therefore more profitable than smaller competitors. Business owners can also benefit from reading the changes

in share, in order to determine their competitive strength in comparisonto other companies in the same sector, and assess performance fromyear to year.

There are four basic ways to enhance market share. You can improveyour product, lower the price or offer special discounts and sales.Furthermore, you can find new means of distribution so your product canreach more places and people, as well as advertise and promote your

product. Reasons to increase share may include economies of scale (ahigher volume can help develop a cost advantage), sales growth in astationary industry (when the industry is in a stalemate, sales can begiven a boost by increasing share), reputation and influence However,increased share might be a counterproductive endeavor if it isassociated with expensive advertising or a big price decrease that wouldrender it unprofitable. Also, an increased share may bring about ademand for huge investments in new equipment and employees that a

company may not be able to meet. It is even possible to benefit from adecreased share if lower costs enhance profitability. Managing market


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share is a delicate subject with many factors and concepts to beconsidered.

The company with the biggest market share is the market leader, and

usually has the highest marketing expenditures, distribution, pricechanges, and new product innovations. Market challengers are thecompanies working to increase their share. The leader must constantlysurvey the market because the challengers are consistently trying tocapture share. The market leader has three options to preserve itsmarket position: expand the total market, protect share, or expandshare. Developing more usage, new uses, or users increases markets.Leaders can protect share by observing their position and quickly

alleviating any weaknesses. Constant innovation is the best way toprotect share. When leaders become complacent with their products or services, the challengers find it easier to make progress.

The market challenger must try to take share away from the leader. Thechallenger must have some viable competitive edge to attack theleaders share. The challenger can attack other competitors through adirect attack by altering price, promotion, or distribution, or indirectly bydiversifying or catering to untapped segments. Market share is readilycomprehended by the majority of managers, employees, andshareholders; hence, it is frequently used to measure success. It isessential to understand market share, how it is used to identify marketplayers, and how the different participants use it to determine their market strategy.


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2.7Why example of why study of market share .

One company's market share is integral when you are looking to investin a company. Market share calculation can often be misleading andcompanies can easily manipulate it.

Market share is the percentage a company has of an overall market.

For instance, if they sell "widgets," market share will tell you whatpercentage of all "widgets" made in the world they sell. If a company isgrowing market share, that is positive.

2.8 Why is calculation of market shares so important?

Calculation of market share is important to give the clear image if thecompanys market share has the growing tendency or it should beavoided because it has negative trend.

To get precise answer, its the best to answer on three importantquestions

Market potential - "How many dollars are there in this market for myconcept?"

Market share - "How much of the potential in the market do I capture?"

Market opportunity - "Which markets offer the greatest opportunity for

growth?"

Also, after that ask yourself few useful questions about Products or services sold and Market size.

Products and services sold

Do I calculate in dollars or units?

Do you take into account booked orders or delivered orders?


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If I calculate in dollars (or any other currency - pardon my Canadianbiases), do I compare real dollars year to year or do I adjust withinflation? How do I incorporate sales from subsidiaries?

Market size

How do I define my market? As Ben Bidwell, who headed marketing atFord Motor Co., once said, "Define your market, don't let it define you."

Do I include all countries or only the ones where I am active?

Do I include taxes?

Do I include the service component?

After determining your priorities, you can proceed to define your marketand calculate market shares .

It can be done through few steps :

First you have to define your market before you can calculate anything,including shares. This means that the sales of one big company are a

much smaller wedge than sales of its products. So, basically try tospecify the market you are trying to calculate first.

Second, search for the total number of items sold in your market. Fewsites like Thestreet.com or Yahoo! Finance are great places to learnsales figures of large corporations. You simply have to look at their quarterly and yearly findings about the product(s) you are interested in.For instance, if you look for Apple check the number of how many iPods

and iPhones the company has sold, how many has intention tomanufacture, to expand, etc. Of course, dont forget to find the number for every company that competes in the space in your market.

Your next step should be dividing the number of units that your company(or the company that you are interested in precisely) has sold by thenumber of total units in the space.

Next, you should calculate the percentage of market share. The mostsimple equation would be if your company for example sold 10 widgets


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and the industr y sold 100 widgets in total. Its easy then to calculate thatyour company would have a 10 percent of market share. Includenumbers youve got in previous steps and you should be sure about your shares and was your investment wise. But that kind of evaluation can bedone after the last step.

In the last step, you should determine if the market share is growing or shrinking. Earnings coupled with a growth for sure propel a stock higher.So basically if your company is gaining market share over competitors ina so called hot market, then it may make it an attractive investment. Youshould always consult your broker or do your own due diligence beforebuying. Conversely if it is losing market share, then you might want tolook at the competitor who is stealing it.

Also, dont overlook this: How to obtain market share whenthere is no data available Bottom-up: Track the number of units sold andthe number of contracts awarded through press releases and articles;Create a database (Excel works well usually) to add them up; Assumingthat one is never able to track all contracts awarded, extrapolate usingwhat you know of the total market size

Players revenues :

Gather information from annual reports and company information aboutthe total revenue in a particular market; Add revenues from mainplayers; Extrapolate for smaller players based on number of employees,or estimate of revenues Demographics Go back to statistics anddemographics; Assume a penetration percentage; Calculate volume inunits; Apply price/cost per unit.

Similar market

Select a similar market to yours (in size or in behavior);

Extrapolate from a market you know well, or where more information isavailable;


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Adapt the number obtained for particularities of the market;

Use as an estimate of market size, and not a precise number.

As a conclusion

It is now understandable how misleading a market share calculation canbe and how companies can easily manipulate them. In order for you touse market shares effectively:

Always write down your assumptions and make sure you compare"apples with apples."

Always beware of market-research reports which often lack explanationsof how the market calculation was done. In fact, you should almost

Always pick up the phone and talk to the person who originated thecalculation, to check his/her assumptions


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CHAPTER 3


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3.1 METHODOLOGY

Since the purpose of the study is to know the consumers perception to

choice the mobile telecommunication service provider in Malaysia, a self structure questionnaire was developed to collect data from theconsumers, whereby it has served as primary data to answer theresearch questions and objectives.

The survey questionnaire consists of 5 distinct sections,each of which contains questions pertaining different parts of the study.Questionnaire was distributed utilizing a convenience sampling from

walk-in customers at market places, educational institutions, andgovernment and privet institutions. A convenience sampling method isused to collect data in view of time and cost constraints and because of large population of mobile telecommunication services users in thecountry. Even though the sampling method adopted in this study haslimitations in terms of generalisibility as compared to other method of sampling, it is assumed that the sample represent the whole populationof mobile telecommunication services users in Malaysia. There is

enough similarity amongst the elements within the population toconclude that a few of the elements which adequately represent thecharacteristics of the total population (Page and Meyer, 2000). Primarydata was collected randomly from the consumers as a conveniencesample from Kuala Lumpur, Gombak, Cyberjaya, Purrajaya, Serdang,Subangjaya, Penang, Johor, Melaka, Pahang, and Perlis.

The survey was conducted mainly via face-to-facecustomer survey. Apart from the ability to reach large number of

respondents and inexpensive way to conduct the survey, the surveythrough e-mail also enabled to collect data. Respondents are asked toassess items of different constructs such as factors viewed asantecedents of service quality, price, and product quality in terms of their perceptions based on five-point scales. The descriptors range fromstrongly disagree, disagree, neither agree/nor disagree, agree andstrongly agree. This study collected data from existing customers whohad previously used mobile telecommunication services at least for one

day. Total 670-sample sizes are found to be valid for this study, of which


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615 questionnaires were received. Each of the response received wasscreened for errors, incomplete and missing responses. Efforts werealso taken to contact the affected respondents through e-mail for clarification and corrections, especially for missing or blanks responses.However, those responses that had more than 25% of the questions inthe survey questionnaire that have been left unanswered or incorrectlyanswered were discarded from data analysis. After the screeningprocess was carried out, only 583 responses were considered completeand valid for data analysis. This represents a success rate of 94%,which is considered to be good in view of time and cost constraints.

Factor analysis was performed to identify thesalient attributes that have impact on consumers' perception to evaluatethe mobile telecommunication service provider. Since, Factor analysisrepresents an analytical process of transforming statistical data (asmeasurements) into linear combinations of variables. It is a statisticalmethod used for combining a large number of data into a considerablysmaller number of factors with a minimum loss of information (Hair, etal., 1992). In addition, Regression analysis is used to investigate therelationship among the variables which influence the consumers'perception choice regarding telecommunication service provider.


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Research Design And Methodology

3.2 Research Design

This study is concerned with narration of facts and characteristics concerningindividual, group or situation in the wireless internet broadband connectionmarket. Hence descriptive research method is used for the study. The major purpose of descriptive study is description of the state of affairs as it exists at present. Sometimes the term Ex post factoresearch is used for descriptive research study. It includes attempts byresearchers to discover causes even when they cannot control the variables.The design is very rigid and not flexible.

3.2 Sampling Design

The universe selected for the study is finite in nature as it includes all the peoplewho are the internet users. The working individuals in the field of IT,engineering, etc, stock brokers, students pursuing their education in professionalcourses forms the sampling unit for the study. Sampling frame considered forstudying the consumer behavior are the people dwelling in city of Pune and whointernet users. In this study there scope for estimating the probability that eachitem in the population has been included in the sample. Hence, non-probabilitysampling technique is preferred for study, as the samples are deliberately chosenfrom the huge population. Thus since unrestricted sampling technique of element selection is used the sampling technique usedfor the study can bedefined as convenience sampling. Since the research design selected is such thatit makes provision for protection from any kind of error while selecting thesample and maximize the reliability; there very less chances of sampling errors.Also while selecting the sample for study, due care is taken to minimize the costas much as possible.

3.3 Source and Methods of Data Collection

For analyzing the problem both primary and secondary data is required. Varioustechniques of data collection are used to collect the data. The techniques usedfor collecting primary data are questionnaire and schedules .Also telephonicinterviews were conducted for the purpose of collecting the data. Thequestionnaire consisted of 13 questions which collected all the information

required forth the study. The questions asked were multiple choice questionswith 4 to 5 options. Also some close ended questions were asked. In the


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questionnaire Likert-type scale was used to measure the respondents attitudetowards a particular feature. For collecting secondary data several websites andblogs were searched like MTS corporate site, economic times website, etc.Some books related to consumer buying behavior and basic marketing concepts

were referred while carrying out the research study marketing managementPhilip Kotler 13 th edition, consumer behavior by Aaker, Kumar and Day, etc.All sources used for the study are listed out in the bibliography atthe end of thereport.

3.4 Source and methods of Data collection

Sources of Primary Data collection Observation,

Field Observation Interview schedule, Questionnaire,

Discussion


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Chapter IV


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4.2 RESULTS AND DISCUSSION

Reliability coefficient tested by using Cronbach's alpha (??)analysis. Since, to measure the reliability for a set of two or more

construct Cronbach alpha is a commonly used method where alphacoefficient values range between 0 and 1 with higher values indicatinghigher reliability among the indicators (Hair, et al., 1992). Hence, 1 is thehighest value that can be achieved (Table 1). According to Cronbachalpha test the total scale of reliability for this study vary from .9778 to.9974, indicating an overall higher reliability factor. The reliability of thisstudy is substantial, as the highest reliability value that can be achievedis 1.0.

4.2 FactorAnalysis

The results th at were obtained from 583 respondents have beenthoroughly analyzed and the outputs of the results are clearly explainedin this section. Applying SPSS the principal component analysis (PCA)was carried out to explore the underlying factors associated with 20items. The constructs validity was tested applying Bartlett's Test of Sphericity and The Kaiser-Mayer-Olkin Measure of Sampling adequacyanalyzing the strength of association among variables. The Kaiser--Mayer-Olkin measures of sampling adequacy (KMO) was first computedto determine the suitability of using factor analysis. It helps to predictwhether data are suitable to perform factor analysis of not. KMO is usedto assess which variables to drop from the model due to multicollinearity.The value of KMO varies from 0 to 1, and KMO overall should be .60 or higher to perform factor analysis. If not then it is necessary to drop thevariables with lowest anti image value until KMO overall rise above .60.Result for the Bartlett's Test of Sphericity and the KMO reveal that bothwere highly significant and concluded that this variable was suitable for

Thefactoranalysis Deciding the number of factors retains indifficult but initial runs based on eigenvalues showed 4 factors. Todetermine the minimum loading necessary to include an item in itsrespective constructs, Hair et. al. (1992) suggested that variables with

loading greater than 0.30 is considered significant, loading greater than0.40 more important, and loading 0.50 or greater are very significant. For


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this study, the general criteria were accepted items with loading of 0.60or greater. Not a single factor had been dropped out under thiscircumstance (Table 3).

The values of following (Table 4) indicate the affiliation of the items to afactor. Generally, the factor is the natural affinity of an item for a group.The higher loading (factor) indicates the stronger affiliation of an item toa specific factor. The findings of this study indicate that each of the four dimensions (Service quality, Price, Product quality, and Promotion) washomogeneously loaded to the different factors. That means each of thefive dimensions that loaded into four different factors all are related Toconsumersneed.


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Chapter 5.


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Research findings after assessing the scenario what came in picturewas as follows:

A comparatively late entrant in the telecommunications

industry, MTS has nevertheless managed to carve a distinctive niche for itself in the telecom market in spite of not having the advantage of yearsthat some telecom companies have enjoyed. MTS has a more or lessurban market and enables internet as a wireless facility. The mostpopular service made available by MTS is MTS Mblaze . MTSBroadband as realised through MTS Mblaze; this is further madeavailable as two services, MTS Mblaze Standard and MTS MblazePremium . MTS Mblaze Standard offers speed up to 3.1 Mbps and

fastest upload speed up to 1.8 Mbps; this is the case with MTS MblazePremium too, the two distinguishing features setting it apart from theformer being a Micro SD card slot and a swivel based structure.

This means that MTS Mblaze Premium also enablesmemory storage and is much more portable than the standard variant.MTS Mblaze, whether standard or premium, is premised on datacards . MTS Data Cards are basically USB modems and, like data cardsas such, highly portable. MTS Mblaze plans offer sufficient variety.

Again, like most other wireless, data card services, they are structuredlike recognisable 2G CDMA and GSM services as both post-paid andpre-paid. The upshot of the postpaid plan is that it offers an unlimiteddownloading plan, thus overcoming the feature of regular rechargingwhich prepaid obliges one to and the fear of overshooting one's budgetwhich all postpaid plans, no matter how well chosen and regulated, areexposed to. However, what is special about MTS Mblaze is that it alsooffers a variety of unlimited downloading options with prepaid as well,from a day to sixty days, for rentals from rupees ninety-six to rupees onethousand eight hundred and ninety-eight. wireless internet for personal

5.2 SUGGESTION AND RECOMMENDATIONS
http://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htmhttp://www.connectindia.in/data-cards/mts-mblaze-data-card/details/14323.htm


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The most preferred characterstics while purchasing broadband is mostcomfortability. Advertsiding play a crucial role in selling of wireless dongle as shows

of consumer are affected by advertisement. Celebrities should be used for advertising the brand. A company should offer more discount to customer to attract toward their different wireless internet. A new range regarding different brand give special terrif regardingdifferent brand. computers through a wireless USB modem which can be easilyattached and removed through USB ports. MBlaze USB modemsoffer speeds up to 3.1 Mbps and have various prepaid and

postpaid internet schemes available

5.3 LIMITATION AND DIRECTION TO FUTURE RESEARCH

This research has been applied successfully what we have learnt in theservice market literature of the mobile telecommunication industry withevidence from Malaysia. The outcome of this research showed acomprehensively integrated framework for us to understand the dynamicrelationships among dimensions of service quality, price, product qualityand availability, and promotion to understand the consumers' perception.However, further research is needed to examine these factors inMalaysia with additional samples before generalization can be made.Moreover, it is also needed to extend behavior intensions of consumersabout mobile telecommunication service providers.

5.4 LIMITATION AND DIRECTION TO FUTURE RESEARCH

This research has been applied successfully what we have learnt in the


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service market literature of the mobile telecommunication industry withevidence from Malaysia. The outcome of this research showed acomprehensively integrated framework for us to understand the dynamicrelationships among dimensions of service quality, price, product qualityand availability, and promotion to understand the consumers' perception.However, further research is needed to examine these factors inMalaysia with additional samples before generalization can be made.Moreover, it is also needed to extend behavior intensions of consumersabout mobile telecommunication service providers.

5.5 Bibliography

Journals

Beatty, S.E. and Smith, S.M. (1987). External search effort: Aninvestigationacross several product categories.


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Journal of Consumer Research , 14 (1), 83-95

Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer informationsearch revisited.

Journal of Consumer Research , 23 (4), 263-277.

Alba, J.W., and Hutchinson, J.W. (2000). Knowledge calibration:Whatconsumers know and what they think they know.

Journal of Consumer Research , 27 (September),123-156

Coupey, E., Irwin, J.R. and Payne, J.W. (1998). Product categoryfamiliarityand preference construction.


Chernev, A. (2003). When more is less and less is more: The role of ideal pointavailability and assortment in consumer choice.

Journal of Consumer Research ,30 (2), 170-183.

Solomon, M.R. (2001). Consumer Behavior. Buying, Having, and Being . 5thed.NJ: Prentice-Hall.

Bockenholt, U. and Dillon, W.R. (2000). Inferring latent brand dependencies. Journal of Marketing Research , 37 (1), 72-87.

Swait, J. and Adamowicz, W. (2001). The influence of task complexityonconsumer choice: A latent class model of decision strategy switching.


Press Release of IDC India Ltd. Dated September 18, 2009.

Websites

http://www.cybermedia.co.in/press/pressrelease137a.html

http://www.mtsindia.in/corporate/about -sstl.html


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http://www.mtsindia.in/corporate/about -mts.html

http://www.eurojournals.com/ejsr_28_4_03.pdf

Books

Kothari C. R., Research Methodology , 2nd Edition, New Delhi, New Age International (P) Ltd.Publishers, 2004

Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, Marketing Management ,13 th Edition, New Delhi, Pearson Education, 2008

Leon G. Schiffman, Leslie Lazar Kanuk, Consumer Behavior, 9 th Edition,New Delhi, Prentice Hall of India Pvt. Ltd.,2007

Newspapers

The Times of India

The Economics Times

Business Standard

5.6 QUESTIONNAIRE

1).Organisation name:


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Ad

sandeep singh monga

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