U Fone

FINAL PROJECT A STUDY ON CELLULAR PHONE USAGE
EXECUTIVE SUMMARY
“Level of customer satisfaction for Ufone

Compared to other cellular phone services”
Hypothesis
o Ufone received a favorable response from consumers at its
launch
o Customer satisfaction for Ufone is higher compared to other
cellular phone services
Introduction
Mobile phone usage in Karachi has increased with an abnormally
high rate in the recent years. In short duration, the concept of mobile
phones has evolved from being a luxury to being considered as a
necessity. Mobile Phone Service Providers compete actively in this
highly profitable and growing market, thus making the obtaining of a
mobile phone account very simple, and reasonable. This research
study takes an outlook which recognizes the fact that, presently, more
than obtaining an account, the debate lies in how satisfied the large
number of service users are in this growing market.
1
PAF – Karachi Institute of Economics & Technology
Introduction
The communication industry has experienced an amazingly high rate of growth in
Pakistan in the last couple of years. This includes internet communication, telephony
communication and other means of wireless communication.
Further classifying this huge industry, usage of cellular phones has experienced the
highest growth rate. According to official statistics, four cellular companies, Mobilink,
Instaphone, Paktel, and Ufone, share more than three million phones among
themselves. The cellular phones saw a 142% growth in 2001 and 67% in 2002.
Pakistan's 149 million people, who for years, had been waiting for the privilege of a
phone, multiplied cellular phone demand and the company profits as soon as mobiles
were introduced. Seeing this huge boom, and potential to make money, the
government launched its own cellular company; Ufone which is wholly owned by the
PCTL.
This research study takes an outlook which recognizes the fact that, presently, the
cellular communication industry is a highly attractive one, requiring huge
investments but what factors led to the unexpectedly quick success of Ufone in this
growing market.
2
COMPANY BACKGROUND
Launched on January 29, 2001, Ufone is a new cellular operator in Pakistan. Ufone
services are offered to you by Pak Telecom mobile Ltd., which is a 100% owned
independent subsidiary of Pakistan Telecommunications Corporation Ltd.
Ufone has been a highly successful venture both in terms of subscriber uptake and
coverage. Touching 100,000 subscribers in less than four months of operation.
With fastest expanding coverage, unmatched product leadership, and consistent focus on
customers, Ufone has emerged to be the most prominent player in the market in the short
span of its operations.
Based on its never ending commitment to provide innovative quality and convenient
accessibility, it offers online access to Ufone services. Customers can now access
information regarding services offered by Ufone, whenever they desire, just by a simple
click.
The company means it when it says “Ufone-last to enter, First to venture-Every time”
SERVICES Messaging
o Internet Access o MMS

o Online Bill Payment o SMS
o Power Sim o Web 2 SMS Chat
o WAP o Global SMS
o International Roaming o Email Over SMS
o Internet via SMS o Urdu SMS
o Call Management o Voice Mail
3
Objectives
1. What are the attributes responsible for developing consumer preference in the
case of Ufone?
2. What response did Ufone receive from consumers at its launching?
3. What is the level of customer satisfaction for Ufone compared to other cellular
phone services?
4
Research Methodology
The research methodology we will use in conducting this research is Causal-
Comparative Research. It is the study that investigates a cause and effect
relationship between two or more variables. Some of all the variables involved in a
case-comparative study maybe qualitative i.e. they cannot be expressed in any
standard numerical scale. Independent variables are also involved in a casual-
comparative study.
Research Design
The steps of the involved in the research process are:
 Define the research problem

 Scope and limitation
 Setting of hypothesis
 Identification of target population
 Sample design
 Collection of data
 Processing of data
 Analysis of data
 Testing of hypotheses
 Conclusion
 Research report
5
Scope and limitations

Considering the large number of users, efficient limits must be applied on the
research, which also benefit the scope of the project. The research is being
conducted for Ufone , to obtain a most appropriate access of GSM network users,
who comprise the majority of mobile phone users.
The research will try to concentrate on the most popular factors that are responsible
for acquiring a Ufone connection. On the basis of such factors, the degree of
satisfaction would be determined. The research would be conducted, keeping in mind
the cost and time constraints that apply on the research.
Although the sample population may be expanded to further authenticate and refine
the research, primarily university students will be the sample for this research.
6
Hypotheses
1. Ufone received a favorable response from consumers at its launch
2. Customer satisfaction for Ufone is higher compared to other cellular
phone services
Sampling
A sample is a subset of the population that represents the entire population. In reality, a
sample size decision is usually a compromise between what is theoretically perfect and
what is practically feasible. There is no significant relationship between the size of a
sample and its representatives of the population, from which it is drawn. It is the selection
method (according to the elements of the population), which determines a sample’s
representative ness.
Instead of determining representative ness, the size of a sample affects the accuracy of
results. The accuracy of a sample is a measure of how closely it reports the true values of
the population it represents.
In the Research process we have utilized Convenience Sampling method.

The respondents targeted were people outside Ufone and Mobilink customer care centres
in Gulshan-e-Iqbal.
Sample Size 60 respondents
Primary Data
7
Primary Data is the Data that is gathered directly and is specific to the research and thus
it serves an important purpose in the research process and reliable primary data is in fact
a base of a reliable research.
In the research process the main source for collecting data has been questionnaires.
Analysis Of Questionnaire
The basic purpose of this questionnaire is to determine the satisfaction level of the
mobile phone service availed by you. It is designed to survey your opinions and attitudes
regarding the various factors of the mobile phone service that you use.
Please respond to all questions, and feel free to ask for assistance wherever required.
Question 1: Do you use cellular services?
a. Yes
b. No
Purpose:
The question was posed in order to discriminate between the total population and the
target population for the research.
Yes No
60 0
Analysis
This question allowed us to differentiate out target population from the whole.
8
Question 2. For what purpose do you use the cellular service?
a. Business
b. Personal
c. Other (Please Specify) _______
Purpose
The question was used to find out, what was the major purpose of using the cellular
connection by the people.
35
30
25
20 Businee s
Pe rsonal
15
O ther
10
Business Personal Other

29 23 8
Analysis
The responses to this question show that most of the people are using their cellular phone
connections for business and personal purposes. The other major purpose was socializing
9
which somewhat comes under personal. This shows the company that the cellular phone
usage is important towards the customer as he or she is using it for business and personal
purposes.
Question 3. Which sort of mobile set technology do you prefer?
a. Analog
b. GSM
Purpose
The purpose of this question was to find out which technology attracts the customer more
either “gsm” or “analog”.
60
50
40
30 GSM
20 Analog
10
0
Analog GSM
12 48
Analysis
The response to this question indicates that the target population prefers to use GSM
technology. This is a positive finding Ufone as it uses the same technology.
10
Question 4. Which company’s cellular service do you use?
a. Ufone c. Paktel
b. Mobilink d. Instaphone
Purpose
The purpose was to find out which service is most popular amongst the respondent’s.
30
Ufone Mobilink Paktel Instaphone
25
20 28 6 6
20 Ufone
Mobilink
15
Paktel
10 Instaphone
5
Analysis
The responses to this question show that Ufone is the market challenger i.e: it has the
second highest market share.
11
Question 5. Why do you use cellular services?
a. Convenience d. WAP
b. Price e. Roaming Services
c. SMS f. Other
Purpose
The purpose of this question was to find out which offers of the company are preferred
most by the respondents. At the same time it leads us to find out on which factors the
company should emphasize more in order to keep their customers satisfied.
60
50
O the r
40
Roaming Se rvices
30 WAP
SMS
20 Price
Conve nie nce
10
0
Convenience Price SMS WAP Roaming Services Other
50 12 25 5 10 5
(The total of this chart is 107 as people were allowed to select more than one response for
this question)
Analysis
The result of this question shows that most people use cellular service for convenience
but other factors is also important. The response shows that 4.7% of the responses
12
received used cellular service for WAP services. This service is only available in Ufone
and therefore Ufone has an advantage here.
Question 6. How satisfied are you with the mobile phone services available?
+1 -1
+2|_____________|_________________|__________________|_________________|-2
Very Satisfied Satisfied Neither/nor Dissatisfied Very Dissatisfied
Purpose
This question is one of the most important questions. This is because it is directly related
to one of our hypothesis and carries the highest weight in decided whether the hypothesis
should be accepted or rejected.
17% 3%
25% Very Satisfied
7% Satisfied
Neither/Nor
Dissatisfied
Very dissatisfied
48%
a. Mobile Banking c. Easy Billing
b. Web services d. Others _______ (Please specify)
Purpose
The purpose of this question was to gather data about which additional features and
services should be added to their cellular connection.
13
35
30
25
Mobile Banking
20
Web Services
15
Easy Billing
10 Others
5
Mobile Banking Web Services Easy Billing Other

12 30 14 4
Analysis
Analysis of this question shows that customers would really like the companies to
increase their web based services, mobile banking and easy billing. One other important
feature which came out was the demand of gaming over cellular networks.
Question 8. Payment of your bills is done through:
a. Personal Means c. Organization
b. Parents d. Others
14
Purpose
The purpose of this question is to find out how the users finance their cellular connection
expenses. This will enable Ufone to analyze its tariffs and be able to design better tariff
plans for its customers.
35
30
25
Personal means
20 Parents
15 Organization
10 Others
Personal Means Parents Organization Other

34 18 8 0
Analysis
The analysis of this question showed that more than half of the respondents use their
personal means to pay their bills. When the customers are paying themselves they will
want the best return on their money and would want excellent service. The company can
use this information to modify its tariffs accordingly.
Question 9. Is SMS, a high involvement factor?
15
|_____________|_______________|_______________|______________|_____________|
0% 20% 40% 60% 80% 100%
Purpose
The purpose of this question to analyze the involvement of the customer with SMS.
Involvement In SMS
18
16
14
12
10
8
6
4
2
0
0-20% 21-40% 41-60% 61-80% 81-100%
0-20% 21-40% 41-60% 61-80% 81-100%

5 13 16 20 6
Analysis
The analysis of this question shows that people consider SMS as a very important factor.
The importance of SMS shows the company that it can use this to its advantage by
offering various kinds of services on SMS.
Question 10. What purpose do you use SMS? ( You may tick ( ) more than one)
16
a. Friends/Socializing c. Chatting
b. Sending News /Jokes d. Others
Purpose
The purpose of this question is to identify why cellular phone users use SMS.
40
35
Friend/Socializing
30
25 Sending
news/Jokes
20
Chatting
15
10 Others
5
0
Friends/Socializing Sending News/ Jokes Chatting Other

35 6 16 3
Analysis
The analysis of this question shows that people are mainly using the SMS for socializing
and messaging friends.
Question 11. What is the most dissatisfying factor of your mobile phone service?
a. Network congestion b. Price

17
c. SMS charges e. Less coverage
d. Weak reception f. Others________(Please Specify)
Purpose
This question serves the purpose of finding out what weaknesses of the company is
dissatisfying customers. The company can work on its weaknesses and improve its
service to reduce dissatisfaction.
25
Network
20 congestion
Price
15
SMS charges
10
5
Weak Reception
0 Less coverage
Network Weak
Congestion Price SMS charges Reception Less Coverage
21 10 13 14 2
Analysis
The responses to this question show that customers are not happy about the network
congestion and weak reception of the cellular phone service. About 17% of the customers
were also not satisfied because of the price and as price is an important factor the
company should consider working on this weakness. Some of them were also not happy
about charges on international SMS.
Question 12. Are you using Pre paid service?
a. Yes b. No
18
Purpose
The question leads us to find what kind of connection our target users are using and
which service do they prefer more either prepaid or postpaid.
Prepaid Vs Postpaid Service
45
40
35
30
25 Yes
20 No
15
10
5
0
Yes No
45 15
Analysis
This shows that majority of users use prepaid service and that the company should also
try to increase its post-paid customers.
Question 13. Do you think Pre paid services are designed for low-income groups and
students?
a. Yes b. No
19
Purpose
This question was included to find out about the positioning of the target population for
the prepaid service.
45
40
35
30
25 Yes
20 No
15
10
5
0
Yes No
46 14
Analysis
From the above results we can say that prepaid services are preferred by most of the
youth and low income group.
Question 14. Which service characteristic you consider most important
a. Connectivity Time c. Geographical Coverage
b. Voice Clarity d. Other_________(Please Specify)
20
Purpose
The purpose of this question is find out which feature customers value most, this will
enable the company to focus on those characteristics and make sure that they are
improved to provide more value.
25
20
Connectivity Time
15
Voice Clarity
10 Geographical Coverage
Other
5
Connectivity Time Voice Clarity Geographical Coverage Other

18 17 24 1
Analysis
The response to this question shows that cellular phone service users consider
coverage as an important factor and therefore the company should make sure that
there is no deficiency in coverage as this will cause the most dissatisfaction among
customers
Question 15. Your monthly charges range between.
a. Less 500 b. 500 - 1500
21
c. 1500 – 3000 d. More than 3000
Purpose
The purpose was to judge the spending power of the users and how many users fall into
each expenditure bracket, so that the company can utilize this information to plan and to
decide their offers and packages accordingly.
25
20
Less than 500
15
500-1500
10 1500-300
More than 3000
5
Less than 500 500 - 1500 1500 - 3000 More than 3000
25 17 14 7
Analysis
According to the above results, we can judge that there is a low volume of people who
are spending more than Rs.3000 monthly so the company can use this information to
provide incentives to people to spend more on there cellular service.
Testing of Hypothesis
1. Ufone received a favorable response from consumers at its launch
22
The data collected from our questionnaire shows that Ufone is popular among cellular
phone users and also received a favourable response at its launch. Our findings
confirm this as it shows that the number of users of Ufone are fast catching up to the
number of users of Mobilink, which has the highest number of users in the industry.
Therefore we accept this hypothesis based on our analysis of the data collected.
2. Customer satisfaction for Ufone is higher compared to other cellular

phone services
A thorough and rigorous analysis of each question of the questionnaire has been
conducted. Based on this analysis, and with additional emphasis to the responses of some
key questions, we, to the best of our abilities and understanding, accept this hypothesis
and conclude that the hypothesis stands valid.
FINDINGS
• Research shows that cellular phone are no longer a commodity for people rather
they have become a necessity.
• Cellular phones with GSM technology are far more popular than Analog cellular
phones
• Mobilink has the leading market share and Ufone has the second highest market
share
23
• Mostly students use cellular phones for their personal usage and consider it a
necessity because of lack of law and order in cities like Karachi.
• Students prefer Pre paid packages because these packages are affordable to them
and convenient to use. No hassle of billing in excess of their resources.
• Research shows that range of pocket money/extra allowance of Students who use
GSM service is between RS 600 and RS 15000. These college going students
belong to upper middle and upper income group families.
• Parents pay the bills of their children by giving them extra allowances for cellular
service for the purpose of convenience.
• Around 73% of the respondents are either satisfied or very satisfied with their
cellular phone service
• SMS is a high involvement factor and is an important means of communication

for respondents for socializing.
• 50% of the respondents wanted to use web services and therefore companies
which use Analog technology are at a loss as their network cannot support web
services.
• Respondents were most dissatisfied because of network congestion due to which

they have to try several times before their call is connected. This dissatisfaction
was mostly noted in customers of Mobilink and Instaphone
• Prepaid cards are popular because they have no hassle of payment of bills and
people who have a low number of outgoing calls find it cheaper to use prepaid
cards.
24
• GSM service gives better reception and service as compare to Analog service.
• Customers think that there is no future of Analog service but Analog service
providers are making their service digital but still they cannot come with par with
GSM network that gives convenience, low cost, Value added features etc.
• Students need more WAP services added to their cellular network to remain in
touch with latest updates and entertainment stuff.
• As SMS is a high involvement factor, respondents were very happy with the inter-
network SMS introduced recently.
RECOMMENDATIONS
• SMS is a high involvement factor for consumers and the majority of them use it
for Socializing and communication with friends. Therefore Ufone should allow
them to make a ‘Friends group’ in which it would cost them less to send SMS
within the group. This way the company would increase satisfaction of its
customers and also increase its preference against competitors.
• Research shows that customers would like ‘Easy billing’ facility to be added.
Therefore Ufone should take the first step in this regard and become the first
25
company in Pakistan allowing consumers to pay their bills and recharge their pre-
paid accounts from its website.
• The convenience in pre-paid cards has increased consumers but at the same time
customers spend less because of the six-month validity of cards. Our research
shows that about 42% of the people spend less than Rs. 500 monthly on their
cellular phone service. The company should therefore try to give incentives to
people to use more cellular phone services so that it can increase its income from
sale of pre-paid cards.
• Some of the services that customers want are available in Ufone and the voice
clarity of Ufone is considered to be better than others. Therfore there are many
people who would like to switch to Ufone from their current cellular service
provider, but cannot do so because Ufone is not offering new connections at the
moment. Therefore the company should consider offering new connections as this
would increase its customers.
• Ufone is the only cellular service provider in Pakistan which is offering WAP
services at the moment. Research shows that customers are interested in using
WAP services and therefore the company should promote its WAP services as a
competitive edge over its competitors to attract customers away from the
competition.
26
BIBLIOGRAPHY
• Moven, John C., Consumer Behavior (Third Edition)

• Pakistan Economist – Feburary 2003 issue
• www.Ufonegprs.com
27

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FINAL PROJECT A STUDY ON CELLULAR PHONE USAGE

“Level of customer satisfaction for Ufone

o Internet Access o MMS

2. What response did Ufone receive from consumers at its launching?

 Define the research problem

Scope and limitations

In the Research process we have utilized Convenience Sampling method.

Sample Size 60 respondents

Question 1: Do you use cellular services?

target population for the research.

Question 2. For what purpose do you use the cellular service?

c. Other (Please Specify) _______

connection by the people.

Business Personal Other

Question 3. Which sort of mobile set technology do you prefer?

either “gsm” or “analog”.

technology. This is a positive finding Ufone as it uses the same technology.

Question 4. Which company’s cellular service do you use?

second highest market share.

Question 5. Why do you use cellular services?

b. Price e. Roaming Services

company should emphasize more in order to keep their customers satisfied.

and therefore Ufone has an advantage here.

should be accepted or rejected.

a. Mobile Banking c. Easy Billing

b. Web services d. Others _______ (Please specify)

services should be added to their cellular connection.

Mobile Banking Web Services Easy Billing Other

Question 8. Payment of your bills is done through:

a. Personal Means c. Organization

plans for its customers.

Personal Means Parents Organization Other

use this information to modify its tariffs accordingly.

Question 9. Is SMS, a high involvement factor?

0-20% 21-40% 41-60% 61-80% 81-100%

offering various kinds of services on SMS.

b. Sending News /Jokes d. Others

Friends/Socializing Sending News/ Jokes Chatting Other

and messaging friends.

a. Network congestion b. Price

c. SMS charges e. Less coverage

d. Weak reception f. Others________(Please Specify)

service to reduce dissatisfaction.

about charges on international SMS.

Question 12. Are you using Pre paid service?

which service do they prefer more either prepaid or postpaid.

Prepaid Vs Postpaid Service

try to increase its post-paid customers.

the prepaid service.

youth and low income group.

Question 14. Which service characteristic you consider most important

a. Connectivity Time c. Geographical Coverage

b. Voice Clarity d. Other_________(Please Specify)

improved to provide more value.

Connectivity Time Voice Clarity Geographical Coverage Other

Question 15. Your monthly charges range between.

a. Less 500 b. 500 - 1500

c. 1500 – 3000 d. More than 3000

decide their offers and packages accordingly.

provide incentives to people to spend more on there cellular service.

2. Customer satisfaction for Ufone is higher compared to other cellular

and conclude that the hypothesis stands valid.

• SMS is a high involvement factor and is an important means of communication