Final project Report

On

Customer loyalty in telecom sector (Gsm)

Submitted To

Jagan Institute of Management Studies (Rohini)

Rishabh Kapoor
20 March, 07

1
 Student’s undertaking

The project is submitted to Jagan Institute Of management Studies New

Delhi, as a summer training project for Post Graduate Diploma in Business
Management 2004-2006.

Project guides

Faculty Mrs.Manjot

Student name
R
ishabh-Kapoor

2
 Contents

1. Acknowledgement (pg 4)
2. Abstract (pg 5)
3. Objectives (pg 6)
4. Research Methodology pg7

5. what is customer loyalty (pg 8-11)

6. overview of industry(gsm) (pg 12 -16)

7. Companies profile( pg 16 -20)
8. Competitor analysis (pg 21 -22)
9. Market segmentation and target market (pg 23-25)
10. Prepaid and post paid comparisons (pg26-36)

11. ) Analysis of Survey (pg 37- 71)

12. SWOT Analysis (pg 72-75)
13. Conclusion (pg 76)
14. Recommendation( pg 77-78)

15. bibliography (pg 79)

16. appendices (pg 80-82)

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 ACKNOWLEDGEMENT

My special gratitude are for MRS Manjot Bhatia my mentor, for her
valuable guidance and moral support in enabling me to address the project
work in proper prospective focusing on the issues in particular with special
emphasis on finding alternative solutions to the problems which are practical

I would also like to thank DR J.K Goyal (Director, PGDBM) and all the
faculty members of the Institute who helped me in some way or the other to
successfully complete this project.

The discussion with Professor M.S Verma on the problems arising during
project as could not be anticipated were not only useful but also instrumental
in reviewing approach towards visiting the problem in right direction

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 Abstract

Globalization is the crux reality of 21st century. We are in an era of innovations, fast changing
technology, good customer service and proactive smart marketing. All this and more pave an
organization’s way to global success in this highly competitive world economy. Marketing is
indeed one of the most important aspects of organizational success.

As a young aspiring marketer I undertook a project which was all about understanding reasons for
customer loyalty in telecom industry (gsm) I learned on what grounds where different brands are
holding competitive advantage over others. In what ways their offerings are converting into
customer delight in turn leading to customer loyalty .Swot analysis of each brand helped me in
analyzing the areas where different brands needs to focus proactively for customer retention.
Beside reasons for customer loyalty I also got an understanding of brand switching behavior in
this industry. Survey from end users helped in understanding customer expectations. Survey
from gsm distributors helped me in understanding the degree of penetration of each brand in the
market which gsm brand is having high monthly sales. Customer preferences, distributors as
company member in building customer loyalty. It helped in drawing a conclusion the future
trend of this industry from customer loyalty prospective. .

5
 Objectives

1 TO Understand reasons for customer loyalty in telecom industry (gsm).

2 To understand on what grounds different brands are holding

competitive advantage over others to build customer loyalty.

3 To understand in what ways their offerings are converting into

customer delight in turn leading to customer loyalty.

4 To focus on the areas where different brands needs to focus proactively

for customer retention and building customer loyalty.

5 To understand future trend of this industry from customer loyalty

Prospective.

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 RESEARCH METHODOLOGY

The perspective of the research is to understand customer loyalty in telecom sector

(GSM) potential its future spare. The focus was concentrated in Delhi. The study is based
upon exploratory research.

To fulfill the objective certain information was gathered by.

1. primary source
2. secondary source

Research Approach

1. Exploratory

Research Instrument
1. Questionnaire

Sample plan
Sample unit: -Delhi
Sample size: -100 for end users
Sample size -50 for distributors

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 Chapter 1

Customer Loyalty

Customer loyalty describes the tendency of a customer to choose one business

or product over another for a particular need. In the packaged goods industry,
customers may be described as being "brand loyal. Note the use of the word
"choose" though; customer loyalty becomes evident when choices are made and
actions taken by customers. Customers may express high satisfaction levels with
a company in a survey, but satisfaction does not equal loyalty. Loyalty is
demonstrated by the actions of the customer; customers can be very satisfied and
still not be loyal.

Customer Loyalty has become a catch-all term for the end result of many
marketing approaches where customer data is used. You can say Relationship
Marketing or Database Marketing or Permission Marketing or CRM,. Increased
customer loyalty is the end result, the desired benefit of these programs. All of
the above approaches have two elements in common - they increase both
customer retention and the Lifetime Value of customers.

Customer loyalty is the result of well-managed customer retention programs;

customers who are targeted by a retention program demonstrate higher loyalty to
a business. All customer retention programs rely on communicating with
customers, giving them encouragement to remain active and choosing to do
business with a company.

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Stairs of Customer Loyalty

Many companies follow the same formulas for bringing them closer to what they think

their customers really want. Concepts like "customer focus" and "customer satisfaction"

are warmly embraced. Today, who isn't focusing on satisfying customers?

However, in today's ultra-competitive marketplace, if you're doing what everybody else is,

you'll never get to where you want to be. It is incumbent for companies to set themselves

apart from the rest of the competition. If your company is going to be a leader in your

market, you are going to have to really practice things like "customer intimacy", "customer

interaction", "customer loyalty" and perhaps more important - "customer partnership".

Partnership is a single-thread relationship. It is being" one." Such a relationship is built

upon a mutually agreed-upon plan that reflects the nature and needs of all parties

involved. This is not a re-wording of old terminology or a re-defining of the same, tired

concepts of "sales and service". Instead, it is a paradigm shift, moving away from

transactional customer satisfaction and towards permanent customer loyalty.

In order to achieve success in the New Economy, your company must develop the needed

skills to develop long-term relationships with their best customers. Too often, however,

the constant push to increase sales and market share leads companies away from their

current customers and, instead, towards finding new ones. Such a strategy is a terrible

waste of time and money. The most effective way to assure the growth in profitability that

every company wants is to turn their already-existing customers into "apostles".

Finding the Right Prospects and Avoiding the Wrong Prospects

Possessing the right marketing skills is crucial in properly identifying the right kinds of

prospects for a company. Smart companies accomplish this responsibility by profiling the

top twenty percent of their current customers who typically provide eighty percent of their

profits. Criteria like profitability, frequency of purchase, after-sales service required,

9
revenue, and loyalty potential are quantified and used as measuring devices in

determining the most important characteristics of a company's best, most potentially loyal

customers.

Looking for new business is very expensive. Therefore, companies need to avoid the

wrong kinds of prospects for them. Just as it is critical in distinguishing the attributes of

the right prospects, a company needs to outline the characteristics that make-up the

bottom twenty percent of their customer base. Anybody in business can easily recognize

whom the complainers, price-grinders, and transaction-oriented clients are. By clearly

understanding the bad traits of those bottom twenty-percent, companies can much easier

avoid the wrong prospects and focus their resources on the upper twenty-percent instead.

The "20/80 Rule" works at the bottom of the customer base as well. That is, twenty percent

of a company's customers more than likely cost more to handle than they're worth. These

customers give more grief; chew up more time with requests and complaints; and,

generally, cause the most stress for a company.

The Steps to Successful Sales

When a company is ready to make contact with the right type of prospect, three face-to-

face steps are used to move to the next stair, "making the sale". Each step requires

particular selling skills that are necessary to "close the sale". A successful sale is like

building a pyramid; each step depends upon the success of the previous ones, and no

step can be omitted without creating disaster.

Exploring Needs

The exploring step of sales gives you the chance to get deeply involved with your

prospects to determine exactly how your product or service can help them. It's where the

partnering process begins. The purpose of exploring is to get enough information from the

client to enable you to recommend appropriate options. This step is epitomized by the

guiding principle of Collaborative Selling, "Prescription before diagnosis is malpractice."

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Collaborating Solutions

After you've worked with your prospects to identify needs and concerns, the next step is

to determine whether or not your product or service will solve a problem or seize an

opportunity for them. Usually there are several different ways you can put your product or

service together to meet the needs of your prospects. The collaborative selling way is

much less adversarial and much easier. You actually involve your prospects in deciding

which one of your options makes the most sense for them.

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)

Overview of telecom industry(gsm

What is GSM :

GSM stands for Global System for Mobile Communications. Developed in the 1980s, GSM was
first deployed in 7 European countries in 1992. Operating in the 900MHz & 1.8GHz bands in
Europe and the 1.9GHz PCS band in the U.S.A., GSM defines the entire cellular system, not just
the air interface (TDMA, CDMA, etc.). By the year 2000, there were over 250 million GSM
users, which is more than half of the world's mobile phone population.

GSM technology provides a short messaging service (SMS) which enables text messages up to
160 characters in length to be sent to and from a GSM phone. GSM phones also supports data
transfer at 9.6 Kbps to packet networks, ISDN & POTS users. GSM is a circuit-switched system
that divides each 200 kHz channel into eight 25 kHz time slots.
Today's second-generation GSM networks deliver high quality and secure mobile voice and data
services (such as SMS/Text Messaging) with full roaming capabilities across the world.
Today's GSM platform is a hugely successful wireless technology and an unprecedented story of
global achievement. In less than ten years since the first GSM network was commercially
launched, it became the world's leading and fastest growing mobile standard, spanning over 200
countries.
Today, GSM technology is in use by more than one in six of the world's population and it is
estimated that at the end of Jan 2004 there were over 1 billion GSM subscribers across more than
200 countries of the world.
The growth of GSM continues unabated with more than 160 million new customers in the last 12
months. Since 1997, the number of GSM subscribers has increased by a staggering 10 fold.
The progress hasn't stopped there. Today's GSM platform is living, growing and evolving and
already offers an expanded and feature-rich 'family' of voice and data enabling services.
Nevertheless, it was clear there would be an escalating demand for a technology that facilitated
flexible and reliable mobile communications.
As far as GSM is concerned, it's always been a risky business getting into the prediction game.
Growth has invariably outstripped even the most incautious speculation. However, it's safe to
assume that by the end of the century GSM will have over 150 million customers and be a major
influence across every continent on the planet.
The future of GSM technology is happening all around us. As the technology advances, it is
essential that user demand for applications plays as significant role in determining development
as does technological potential. Just because it can be done does not necessary mean that it should
be done.
Equally important is that, in the near future, one of the keys to ensuring GSM maintains its
market position lies in the provision of advanced customer care. It's not simply a case of
attracting new customers, but holding on to them. Already significant steps have been taken to

12
establish consistent standards across the networks. The aim should now be to engender a culture
of customer care rather than simply the means of responding to customer complaints. For
example, it's easy to envisage a future in which if a GSM phone is not performing, as it should,
the network's care center contacts the user and offers to replace the faulty device.
Global roaming has always been the cornerstone of GSM's success. Users are coming to demand
ubiquitous coverage and seamless mobility. For this reason, work is already well advanced on the
development of multi-band terminals. These products will enable the user to roam freely between
two, and ultimately all three, of the 900/1800/ 1900MHz GSM-related frequencies. Genuinely
global coverage is next. A number of satellite network operators already have rapport their
membership of the MoU, and development is under way of terminals that integrate both GSM
and satellite networks. Such phones will operate as ordinary GSM mobiles at their usual tariffs
when the user is within a GSM coverage area. When they move out of coverage, their calls will
travel by satellite. "The advent of GSM is not seen as so significant a factor that the traditional
cellular market growth trends will alter dramatically."

GSM MARKET IN INDIA:~

GSM India was the first regional interest group to be formed for a single country. It is
currently chaired by Umang Das, Spice Communications, and India.
With a population of around 1 billion growing at roughly 1.7 per cent a year, India is
potentially one of the most exciting GSM markets in the world. After two rather difficult
years, the past 12 months have seen the region's promise beginning to come to fruition.
Much of this success can be attributed to the stabilization of the licensing and regulatory
environment.
India's telecommunications have undergone a steady liberalization since 1994 when the
Indian government first sought private investment in the sector. More significant
liberalization followed in 1996 with the licensing of that has had the most radical impact
on the development of GSM services. 'The policy's mission statement is 'affordable
communications for all', There is a genuine commitment to creating a modern and
efficient communications infrastructure that takes account of the convergence of telecom,
IT and media. In addition, the policy places significant emphasis on greater competition
for both fixed and mobile services.
Competition in the mobile sector has already had a visible impact on prices with calls
currently costing less than 9 cents per minute. This means that service costs have fallen

13
by 60 per cent since the first GSM networks became live in 1995. It also helps explain
why a recent Telecom Asia survey revealed that more than 70 per cent of Indian mobile
subscribers felt that prices were now at a reasonable level.
One of the challenges facing GSM operators in India is the diversity of the coverage
regions -from remote rural regions to some of the most densely populated metropolitan
areas in the world. India has more than 40 networks, which cover the seven largest cities,
over 600 towns and several thousand villages. Such depth of coverage has required
enormous investment from India's operators. It is estimated that more than Rs150 billion
had been invested in India's GSM industry by mid-2000, a figure that is set to be
supplemented by a further Rs200 billion over the next five years.
The good news is that subscriber growth is beginning to look healthy. With India's low
PC penetration and high average Internet usage -at 14-20 hours a month per user it is
comparable to the US -the market for mobile data and m-commerce looks extremely
promising. WAP services have already been launched in the subcontinent and the first
GPRS networks are in the process of being rolled out. In the year ahead, GSM India will
work with its members to realize the potential of early packet services in anticipation of
the award of 3GSM licenses in 2003/04.

COMPARISON BETWEEN GSM AND CDMA:~

Cellular is one of the fastest growing and most demanding telecommunications

applications. And the continuous advancement in this technology has provided
many options to a consumer. Today, the two alternatives that face the mobile world
are - GSM and CDMA technology. First of all, let’s comprehend the meaning and
functionality aspects of these technologies.

Global Service for Mobile Communications (GSM):~

During the 80s, when the cellular system was introduced, each nation had its own system.
As a result, a couple of problems arose. Firstly, the equipment was limited to operate only
within the boundaries of a country and secondly, the market for mobile equipment was
also limited. In order to overcome these problems, the conference of European Posts and
Telecommunications (CEPT) formed the Group Special Mobile (GSM) to create a
common European mobile telephone standard.

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The GSM later came to be known as Global Service for Mobile communications (GSM).
At the end of 1997, GSM was made available in more than 100 countries. Today it has

Become the global standard in Europe and Asia. GSM operates in 900-MHz – 1800MHz.
If one has to connect to the specific service provider in different countries, GSM-users
simply need to switch Subscriber Identification Module (SIM) cards. As per GSM
technology, a mobile unit logs on to the network after being switched on. The mobile unit
tries to contact a nearby BTS, which then transmits all the frequencies of the neighboring
BTS’ to the mobile unit, which identifies the frequency on which the reception is the best
and passes on the information to the BTS.
The BTS then transmits the information to the BSC which has the deciding power as to
which BTS should the mobile unit be assigned.

Code Division Multiple Access (CDMA):~

Developed by Qualcomm for the US Military, Code Division Multiple Access is a system
that enables many users to share the same frequency band at the same time.
CDMA is a spread spectrum technology whereby multiple users share the same time and
frequency allocation in a given band. Each speech signal is modulated (spread) across an
entire band. The respective receiver demodulates and interprets the signal using relevant
code that is embedded in the signal. The final signal contains only the relevant
conversation.
The CDMA based mobile technology was introduced in India to provide WLL services,
as the GSM was the choice for full mobility. CDMA based WLL operators were given
license of operation as fixed line operators. As CDMA can very well connect large
geographical area, WLL operators were given the rights to provide "limited mobility"
whereby a WLL operator could allow network coverage to the boundary of a Short
Distance Charging Area (SDCA).

15
Differences:~
 While TDMA and FDMA are the types of multiplexing in GSM, CDMA works on
spread spectrum. However the bandwidth available is same for both the technologies,
which is 800, 1800 and 1900 MHz.
 While GSM cannot add more than a fixed number of subscribers in a cell, the
capacity of the system is not rigid in CDMA.
 The biggest advantage with GSM is its widespread network in Europe and Asia,
whereas CDMA is predominant in US and South Korea.
 The user of GSM is enabled an easy international roaming. As far as SMS, gaming
and Internet is concerned, both GSM and CDMA score an equal point.
 GSM has already set a standard in India. Being a patented technology, all CDMA
equipment’s and handsets require a royalty to be paid.
The Choice: is determined by the service used by those whom you call most
frequently. When mobile telephony was introduced in India, CDMA was an emerging
technology. Hence GSM was the only choice. But today’s scenario calls for an
evaluation of the alternatives.

16
 COMPANY PROFILE
Hutchison Essar in India

Hutchison established its presence in India way back in 1994 by acquiring the cellular
license for Mumbai. It launched cellular service in the city of Mumbai on a GSM 900
network under the brand name Max Touch in the year 1995. It became synonymous with
being the first ‘service brand’ in telecom by making innovations both in customer service
and technology. In early 2000, Orange was launched in Mumbai.
In 2000, Hutchison did a joint venture with Essar to expand its presence in
the country. Hutchison Essar acquired the cellular licenses in Delhi, Kolkata
and Gujarat in 2000 to become one of the largest cellular businesses in the
country.
Hutchison Essar won the bid to operate as the 4th cellular service provider in Chennai,
Karnataka and Andhra Pradesh in 2001 on GSM 1800 network.
It now has operations in ten circles – Delhi, Calcutta, Gujarat, Karnataka, Andhra
Pradesh, Chennai, Haryana, Rajasthan, UP (E) and of course Mumbai. It has a customer
base of over 5 million people and is committed to providing the best in service and
technology to its customers.

Hutchison Essar is a part of the internationally acclaimed Hutchison Whampoa group, a

diversified, multinational conglomerate with its origins dating back to 1828 in Hongkong.
The parent company, Hutchison Whampoa Limited, is a part of the Li Ka- shing group of
companies. It is one of the largest companies listed on the Hong Kong stock exchange.
The Group operates five core businesses in 41 countries and employs around 1,50,000
people worldwide. It is one of the most profitable businesses in Asia.

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AirTel comes to you from Bharti Cellular Ltd. A consortium of giants in the
telecommunication business.
AirTel launched it's services in Delhi on November 14,1995. It has at present over four
Lac fifty thousand subscribers. in it's three years of pursuit of greater customer
satisfaction, AirTel has redefined the business through marketing innovations, continuous
technological upgradation of the network, introduction of new generation value added
services and the highest standard of customer care.
AirTel has consistently set the benchmarks for the Indian cellular industry to follow.
First to launch cellular service in Delhi on November 1995.
First operator to revolutionize the concept of retailing with the inauguration of AirTel
Connect (exclusive showrooms)in 1995. Today AirTel has 17 Customer Care Touch
Points and over 300 dealers in Delhi and NCR towns.
First to expand it's network with the installation of second mobile switching center in
April, 1997 and the first in Delhi to introduce the Intelligent Network Platform First to
provide Roaming to its subscribers by forming an association called World 1 Network.
First to provide roaming facility in USA. AirTel has the largest automatic roaming
service "SMART ROAM"- National in 350 cities in india and "SMART ROAM" -
International in over 60 countries and 95 networks all over the world.
AirTel's pre-paid card, Magic has consistently held a dominant position in the market and
has played a major role in popularizing cellular services.

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IDEA

Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group and AT&T
(through Birla AT&T- Maharashtra, Gujarat) and the Tata Group (through Tata Cellular-
Andhra Pradesh) came together to set up cellular networks.

In 2000, the historic path-breaking merger and the subsequent acquisition of RPG
Cellular - (Madhya Pradesh circle) helped take their aims even further and led to the
formation of Birla Tata AT&T Limited.
Since then, there has been no looking back for Birla Tata AT&T (Idea Cellular). In its
very first financial year, Idea Cellular recorded the fastest growth among all cellular
operators at a 135% increase in subscriber base. The company BTAL (now Idea Cellular)
also ranked No. 1 in customer satisfaction among all operators (as per the NFO MBL
survey), a testimony to the quality of the company's services and subscribers.

19
MTNL

MTNL with world class vision, has introduced GSM Cellular Mobile
Service with a capacity of 100,000 subscribers in each of the two metro
cities of Delhi and Mumbai under the brand name dolphin. The service was
launched on Feb. 7, 2001 in Delhi and on Feb. 27, 2001 in Mumbai. The
cellular network supports Intelligent Network Services such as prepaid,
autoroaming (National as well as International), free phone, premium rate
service etc.
MTNL has been licensed to operate cellular services in the National Capital
Region (NCR) of Delhi ( including its four satellite towns of Ghaziabad,
NOIDA, Faridabad & Gurgaon ) and Mumbai ( including Navi Mumbai &
Kalyan).
MTNL, with its state-of-the-art cellular network at airtime rates like never
before, has brought the world class cellular mobile connectivity within
everybody’s reach.
Prepaid Service under the brand name “TRUMP’ has been launched simultaneously in
Mumbai and Delhi on 14.1.2002. Already we have achieved a landmark of more than
200,000 Dolphin Mobile connections. MTNL is preparing to offer GSM services with 32
K SIM cards.

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COMPETITIOR ANALYSIS

1. Range of network: Airtel, Idea and MTNL service providers have been into this
cellular industry from a very long time and have developed a complete and vast
network in Delhi and around the remote areas. All the operators have vast no. of
towers to cover Delhi, Faridabad, Ghaziabad, Noida and Gurgaon.
While MTNL has only ten towers in Delhi with a radius of 10- 12 km and not being
able to provide proper service in other remote areas.

2. Number of subscribers: All the Players Airtel, Idea and MTNL have a cutthroat
competition to the capital. Trying to add more customers to its service with Airtel as
the market leader has 14,5,000 subscribers to the capital within 40% of them having
cash cards.
While Idea cellphone, as compared to Airtel has only 5,50,000 subscribers in Delhi,
while Idea having 35% of them are cash card subscribers.
Whereas, Hutch has only 11,00,000 connections at the moment.
Value Added Services (VAS): Let me first take up the common value added services,
which all the player offers:

 Call Line Identification: Presentation (CLIP): Clip gives you the power to know
the phone number of the calling party even before you answer the call. This
gives you the flexibility to either reject the call or answer the call. Also, the name
of the calling party will flash on the handset screen if the same is available in the
Handset Phone Book.

 Call Waiting: This feature helps the second sender to wait for the call if the
receiver is busy with the first call.

 Call Hold: This feature helps the receiver to put on hold the first call to enable
him to listen to second call.

21
 Call Divert forward the call to: This feature helps the sender to receive his calls
on other number even landline if his mobile is busy.

 Call Roaming: The user can roam anywhere in the country where the roaming
facility is available.

 Smart Mail: Smart Mail for Airtel is the most advanced voice mail service. It
keeps you in touch with your caller’s even when you are busy or outside the
coverage area of Airtel or your cellular phone is switched off. Your calls are
diverted to your SmartMail box. You can retrieve the messages left for you, at
your convenience.

 Call Conference: Airtel’s Call Conference service enables you to carry out a
Tele- conference with 6 different people simultaneously. Infact you can set up a
conference, even if the other five are using the PSTN land- line.

 Cell Surf: The easy way to access the Internet. You can now get the latest
information, direct on your handset from the web.

 Remised billing: Keep track of your calls through a detailed account at the
end of each month.

Whether one is on prepaid or postpaid, one can enjoy a wide range of affordable
value added services. From getting flight updates to mobile banking to sending voice
messages and more, one can access all that he wants, right from the gsm phone. (Hutch
airtel and idea)
(Gsm network)one also enjoys a host of benefits including free incoming calls from
anywhere in the network. All the more useful because the Hutchison network covers
places that one is most likely to get his calls from, more frequently. Including all the four
metros.

22
MARKET SEGMENTATION CAPTURED BY EACH
PLAYER :`

Companies Delhi (in Lakhs)

1405334 (4.97)*
Airtel
Hutch 1223510 (4.46)*

Idea Cellular 514271 (2.93)*

MTNL 426372 (1.27)*

Customer base of co.'s in Delhi

1500000
Bharti
Customer base

Hutch
1000000
Reliance
Idea Cellular
500000
MTNL
TATA Indicom
0

Companies
23
 According to the above table Airtel is the leader in user base, followed by
Hutch, , Idea, MTNL. This data also include the cash card users/ prepaid and
post paid.

Growth path of only GSM Services provider in Delhi

City/Circl
Operators Dec'01 Dec '02 Dec '03 March '04 April '05 Mar '06
e
Metros - - - - - -
Bharti
Delhi 484850 834269 1331003 1366113 1390201 1405334
Cellular
Hutchison
- 343241 580328 1026077 1202345 1217407 1223510
Essar
- MTNL 45408 129809 156501 170089 174423 182053

- IDEA NIL 128306 420828 501693 508254 514271

Delhi - 873499 1672712 2934409 3240240 3290285 3325168

24
Market Share of Cellular Players in India :~

Group Company Wise Cumulative

S. No. Name of Company Total Sub Figres % Market Share
1 Bharti 6504314 24.89%
2 BSNL 5229145 20.01%
3 Hutch 5148048 19.70%
4 IDEA 2732689 10.46%
5 BPL 1882754 7.21%
6 Spice 1208890 4.63%
7 Escotel 989084 3.79%
8 Aircel 1026377 3.93%
9 Reliance 790529 3.03%
10 MTNL 360550 1.38%
11 Hexacom 257053 0.98%
All India 26129433 100.00%

TARIFF STRUCTURE OF EACH PLAYER:

PREPAID Delhi & NCR / Hutch

Plan Total Talk Validity Outgoing Outgoing STD Pulse
Nam MRP(Rs.) Time (Days) local airtime airtime rate cell to (sec)
e (Rs.) rate cell to (Rs./min.)
(Rs./min.)

25
 Cell
WL WLL to
L/ / WLL/
WLL/ Cell Lan Lan Land Inc Out
Cell landli pho dlin dline line omi goin
ne nes e 200- abov ng g
<20 500k e
0km m 500k
m
Hutch
Prepa
299.00 150.00 10 2.49 2.99 2.99 2.99 3.99 4.99 60 60
id
299
Rech
arge
54.00 25.00 3 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
108.00 75.00 0 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
108.00 50.00 7 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
216.00 115.00 14 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
324.00 150.00 30 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
360.00 183.00 30 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
550.00 359.00 30 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
1,080.00 850.00 60 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech 1,550.00 1,285.00 90 2.49 2.99 2.99 2.99 3.99 4.99 60 60

26
arge
Vouc
her
Rech
arge
2,150.00 1,841.00 120 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
Rech
arge
3,240.00 2,700.00 365 2.49 2.99 2.99 2.99 3.99 4.99 60 60
Vouc
her
0 --- If you run out of balance on your prepaid, but still have some validity left, this
recharge coupon is ideal for you. Because whenever you recharge your prepaid with this
coupon you get Rs. 75 talk time, while current validity on your card remains the same.

PREPAID Delhi & NCR / AirTel

Outgoing local
Outgoing STD airtime Pulse
airtime rate cell
rate cell to (Rs./min.) (sec)
to (Rs./min.)
Talk Validit WLL WLL/ Cell to
Plan Total Cel
Time y / Landli WLL/ In Ou
Name MRP(Rs.) WLL/ l
(Rs.) (Days) Lan ne Landli co tg
Cell landlin ph
dline 200- ne mi oin
e on
<200 500k above ng g
es
km m 500km
*Rechar
ge 2.9
324.00 150.00 60 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
*Rechar
ge 2.9
360.00 183.00 60 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
*Rechar
ge 2.9
540.00 350.00 60 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
*Rechar
ge 2.9
1,080.00 850.00 60 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s

27
*Rechar
ge 1,850. 2.9
2,160.00 120 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 00 9
s
*Rechar
ge 2,700. 2.9
3,240.00 366 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 00 9
s
Prepaid
2.9
Regular 299.00 50.00 10 2.49 2.99 3.49 3.99 4.99 60 60
9
Pack
Rechar
ge 2.9
54.00 25.00 3 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 2.9
108.00 50.00 7 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 2.9
216.00 115.00 14 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 2.9
324.00 150.00 30 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 2.9
360.00 183.00 30 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 2.9
540.00 350.00 30 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 2.9
1,080.00 850.00 60 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 9
s
Rechar
ge 1,850. 2.9
2,160.00 120 2.49 2.99 3.49 3.99 4.99 60 60
Voucher 00 9
s
Rechar 3,240.00 2,700. 366 2.49 2.99 2.9 3.49 3.99 4.99 60 60
ge 00 9
Voucher

28
s
Smart 2.9
299.00 50.00 10 2.49 2.99 3.49 3.99 4.99 60 60
Pack* 9
This facility provides customers stay connected with any three local nos of their choice at
just Rs 2.40/min
*The Recharge Coupon for this pack starts from 324 demonitaion only

SMS
SMS Local Rs.1.50
SMS National Rs. 2.00

PREPAID Delhi & NCR / Idea

Outgoing local
Outgoing STD airtime Pulse
airtime rate cell
rate cell to (Rs./min.) (sec)
to (Rs./min.)
Valid
Talk Cell to
Plan Total ity WLL/ WLL/
Time WLL/ Inc
Name MRP(Rs.) (Day Cell Land Landli Ou
(Rs.) WLL/ Landli o
s) Cell pho line ne tgo
landline ne mi
nes <200 200- ing
above ng
km 500km
500km
Chit 2.9
299.00 150.00 10 1.99 2.49 2.99 3.99 4.99 60 60
Chat 9
Rechar
ge 2.9
100.00 70.00 0 1.99 2.49 2.99 3.99 4.99 60 60
vouche 9
r
Rechar
ge 2.9
108.00 60.00 10 1.99 2.49 2.99 3.99 4.99 60 60
vouche 9
r
Rechar
ge 2.9
216.00 120.00 20 1.99 2.49 2.99 3.99 4.99 60 60
vouche 9
r
Rechar
ge 2.9
324.00 180.00 30 1.99 2.49 2.99 3.99 4.99 60 60
vouche 9
r
Rechar 360.00 219.60 30 1.99 2.49 2.9 2.99 3.99 4.99 60 60
ge 9

29
vouche
r
Rechar
ge 2.9
540.00 420.00 30 1.99 2.49 2.99 3.99 4.99 60 60
vouche 9
r
Rechar
ge 1,000. 2.9
1,080.00 60 1.99 2.49 2.99 3.99 4.99 60 60
vouche 00 9
r
Rechar
ge 3,000. 2.9
3,240.00 365 1.99 2.49 2.99 3.99 4.99 60 60
vouche 00 9
r

PREPAID Delhi & NCR / MTNL (TRUMP)

Outgoing local
Outgoing STD airtime Pulse
airtime rate cell
rate cell to (Rs./min.) (sec)
to (Rs./min.)
Valid
Talk Cell to
Plan Total ity Cel WLL/ WLL/
Time WLL/ In Ou
Name MRP(Rs.) (Day l Land Landli
(Rs.) WLL/ Landli co tg
s) Cell ph line ne
landline ne mi oin
one <200 200-
above ng g
s km 500km
500km
Plan
250.00 250.00 15 2.1 2.6 2.9 2.9 3.4 3.9 60 60
250
Recharg
e 2.9
100.00 75.00 7 2.10 2.60 2.90 3.40 3.90 60 60
Coupon 0
100
Recharg
e 1,000.
1,000.00 120 2.1 2.6 2.9 2.9 3.4 3.9 60 60
Coupon 00
1000
Recharg
e 2,000.
2,000.00 360 2.1 2.6 2.9 2.9 3.4 3.9 60 60
Coupon 00
2000

30
Recharg
e
300.00 300.00 30 2.1 2.6 2.9 2.9 3.4 3.9 60 60
Coupon
300
Recharg
e
500.00 500.00 60 2.1 2.6 2.9 2.9 3.4 3.9 60 60
Coupon
500

Postpaid plans details

POSTPAID Delhi & NCR / Hutch

Charges Outgoing
(Rs./mont local from Pulse
STD rates (per min) from cell to
h) cell To (sec)
Plan
(Rs./min.)
Nam
WLL/ WLL/
e WLL/ WLL/ Inc Out
Landline Landline
Rental Cell Landl Cell Landline omi goin
200- above
ine <200km ng g
500km 500km
TAL
K 150/0 1.99 2.49 2.99 2.99 3.99 4.99 60 60
150
Talk
599/0 2.4 1.3 2.4 2.99 3.99 4.99 60 60
599
Talk
300/0 2.49 2.49 2.99 2.99 3.99 4.99 60 60
Zero

POSTPAID Delhi & NCR / AirTel

Charges Outgoing
(Rs./mont local from Pulse
STD rates (per min) from cell to
h) cell To (sec)
Plan
(Rs./min.)
Nam
WLL/ WLL/
e WLL/ WLL/ Inc Out
Landline Landline
Rental Cell Landl Cell Landline omi goin
200- above
ine <200km ng g
500km 500km
<200k
m Rs.
Airtel 1.99
99/250 1.00* 2.29** 2.99 3.99 4.99 60 60
012 >200k
m Rs.
2.99
Airtel 0/0 2.40* 2.70** <200k 2.99 3.99 4.99 60 60

31
 m Rs.
Happ 1.99
y >200k
Plan m Rs.
2.99
Sach
in
Invita
<200k
tion
m Rs.
Plan
1.99
/ 99/51 1.99 2.49 2.99 3.99 4.99 60 60
>200k
Total
m Rs.
Free
2.99
dom
150
Plan
<200k
Total m Rs.
Free 1.99
99/1600 0.40* 0.90** 2.99 3.99 4.99 60 60
dom >200k
1699 m Rs.
2.99
<200k
Total m Rs.
Free 1.99
99/150 1.49* 2.29** 2.99 3.99 4.99 60 60
dom >200k
249 m Rs.
2.99
<200k
Total m Rs.
Free 1.99
99/500 0.50* 1.30** 2.99 3.99 4.99 60 60
dom >200k
599 m Rs.
2.99
<200k
Total m Rs.
Free 1.99
99/900 0.50* 1.05** 2.99 3.99 4.99 60 60
dom >200k
999 m Rs.
2.99
* Applicable for WLL also
** Applicable for Landline only

POSTPAID Delhi & NCR / Idea

32
 Charges Outgoing
(Rs./mont local from Pulse
STD rates (per min) from cell to
h) cell To (sec)
Plan
(Rs./min.)
Nam
WLL/ WLL/
e WLL/ WLL/ Inc Out
Landline Landline
Rental Cell Landl Cell Landline omi goin
200- above
ine <200km ng g
500km 500km
Adva
nced
Rent 150/0 1.99 2.49 2.99 2.99 3.99 4.99 60 60
al
Plan
BUZ
Z 1399/0 0.4 0.9 2.99 2.99 3.99 4.99 60 60
1399
BUZ
Z 169/0 1.99 1.99 2.99 2.99 3.99 4.99 60 60
169
BUZ
Z 1699/0 0.4 0.9 2.99 2.99 3.99 4.99 60 60
1699
BUZ
Z 249/0 0.99 2.29 2.99 2.99 3.99 4.99 60 60
249
BUZ
Z 499/0 0.99 1.29 2.99 2.99 3.99 4.99 60 60
499
BUZ
Z 599/0 0.5 1.3 2.99 2.99 3.99 4.99 60 60
599

POSTPAID Delhi & NCR / MTNL (Dolphin)

Charg
Outgoing
es
local from Pulse
(Rs./m STD rates (per min) from cell to
cell To (sec)
onth)
Plan (Rs./min.)
Nam
WLL
e WLL/ WLL/ WLL/
/ Inco
Landlin Landline Landline Outg
Rental Cell Lan Cell min
e 200- above oing
dlin g
<200km 500km 500km
e
BUD 100/0 1.9 1.9 0- 1.9 2.9 3.9 60 60
GET 200:1.90/

33
 201-
500:2.30/
>501: 2.50
0-
ECO 200:1.90/
NOM 300/0 1.9 1.9 201- 1.9 2.9 3.9 60 60
Y 500:2.30/
>501: 2.50

0-
200:1.90/
PLAN
250/0 1.6 1.9 201- 1.9 2.9 3.9 60 60
A
500:2.30/
>501: 2.50
0-
200:1.90/
PLAN
375/0 1 1.5 201- 1.9 2.9 3.9 60 60
B
500:2.30/
>501: 2.50
0-
200:1.85/
PLAN
550/0 0.4 0.9 201- 1.85 2.8 3.8 60 60
C
500:2.25/
>501:2.45
0-
200:1.80/
PLAN
1000/0 0.3 0.6 201- 1.8 2.6 3.6 60 60
D
500:2.20/
>501:2.40

INTER - COMPARISON OF TARIFF

STRUCTURE:

Prepaid Inter-Comparison

34
Compa Plan Total Talk Validit Outgoing Outgoing STD airtime Pulse (sec)
nies Name MRP Time y local airtime rate cell to (Rs./ min)
(Rs.) (Rs.) (Days) rate cell to
(Rs./min)

Cell WL Cell WL WL WL Inco Outg

L/ pho L/ L/L L/ ming oing
landl ne Lan andl Lan
ine dlin ine2 dlin
e<2 00- >50
00 500 0
km km km

Rechar 324.0 150.0 30 2.49 2.99 2.9 2.9 3.9 4.9 60 60

Hutch ge 0 0 9 9 9 9
Vouche
r

Rechar 324.0 150.0 60 2.49 2.99 2.9 3.4 3.9 4.9 60 60

Airtel ge 0 0 9 9 9 9
Vouche
r

Idea Rechar 324.0 180.0 30 1.99 2.49 2.9 2.9 3.9 4.9 60 60
ge 0 0 9 9 9 9
Vouche
r

MTNL/ Rechar 300.0 300.0 30 2.10 2.60 2.9 2.90 3.4 3.9 60 60
Trump ge 0 0 0 0 0
Coupon

The above tariff comparison of all the players in Delhi shows a very different and
more attractive to the pocket of a middle class person. In the above tariff collected
from the sources the comparison is only for the recharge voucher of Rs. 324 only
whereas there are other denominations vouchers available with all the players. The
major players like Hutch, Airtel, Idea and having the same Recharge Voucher of
Rs.324 but the talktime offering by Hutch and Airtel is same but as Idea is new to
the market and want to capture the customer base they are offering a talktime little

35
more in compare to others. The talktime which Idea offering is Rs. 180 whereas the
talktime offered by Hutch and Airtel on the denomination voucher of Rs. 324 is only
Rs. 150.
MTNL is standing alone in the market with the denomination of Rs. 300 recharge
voucher. MTNL is still the life of Delhi as for the middle class people. They are
offering Rs. 300 on the recharge voucher of Rs. 300. But still there customer base is
quite low as compare to other players due to many reasons.
The second column of the above prepaid tariff inter-comparison chart is about the
validity. Here Airtel tries to capture the market by offering double the validity as
compare to other players even MTNL. Airtel is offering 60 days validity whereas the
other are offering only 30 days.
The outgoing local airtime rate from cell to cell is more lucrative of Idea as they are
offering Rs. 1.99 whereas each Hutch, Airtel and Reliance are offering Rs. 2.49 per
call. Even in the case of mobile to WLL/ Landline the Idea rates are more
economical as compare to others.
All the players are not offering very much competition in rates in STD to cell/ WLL/
Landline even when the call is for more than 500 kms.
The pulse rate of all the players even MTNL are 60 seconds.

Analysis of survey
Q1 which gsm connection you are using?

)Airtel ( b) idea ( c) hutch ( d) trump

36
 Survey Resultsof Number of User Of Different
Service Providers

16%
33%

22%

29%

Airtel Hutch Idea Trump

Out of sample size of 100 users Airtel is the market leader having 33 % users. It is
taking benefit of first mover advantage. Users of Hutch are 29% close to Airtel .
22% of users are captured by Idea. and number of users for Trump are very
nominal just 16%the above graphs is the clear indicator that still Airtel is still most
preferred brand.

Q2 Are you a prepaid or post paid user?

37
 Comparative Analysis Of Prepaid Vs Postpaid Users

31%

69%

Prepaid Post paid

out of 100 users surveyed 69% are prepaid users while 31% of the users still
prefers post paid plans(billing)reasons for more number of prepaid users are
transparency in calling and no hidden charges. The graph includes users of all the
four brands()Airtel ( b) Idea ( c) Hutch ( d) Trump)

Q3 For how many years are you using the gsm connection?

0-1 yrs 1-3 yrs 3yrs or more

38
 Data Analysis of Users
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Us 5
1

Us 9

Us 1

Us 3

Us 7

Us 9

Us 1

Us 3

Us 5

Us 7

Us 9

Us 1
33
1

3
er

er

er

er

er

er

er

er

er

er

er

er

er

er

er

er

er
Us

Us

Us

Us

Us

o-1 1-3 yrs

Users3yrs or more

Out of the sample size of 100 airtel has (33%) of the users. Out of 33 users 7 users
are using Airtel connection between 0-1 year while 15 users are using between 1-3
years. The period between 1-3 years is reflecting Satisfaction level. As it indicates
approximately 47% users of airtel are continuing with a number 1-3 yrs.11 users are
using connection for 3 years and above. Means 35% users are using for 3years and
above. It is a true indicator of high customer satisfaction which later turns into
customer loyalty.

Hutch

39
 Analysis

1.2

0.8

0.6

0.4

0.2

0
User User User User User User User User User User User User User User User User User User User User User User User User User User User User User
1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Users

0-1 1-3yrs 3yrs or more

Out of the sample size of 100 Hutch has 29% users. Out of 29 users 9 users are using
Hutch connection between 0-1 years. While 11 users are using between 1-3 years. The
period between 1-3 years is reflecting Satisfaction level. As it indicates
approximately 40% users of hutch are continuing with a number for 1-3 yrs. 9 users
are using connection for 3 years and above. Means 31% users are using for 3years and
above. This is a true indicator high customer satisfaction which later turns into
customer loyalty.

Idea

40
 Analysis

1.2

0.8

0.6

0.4

0.2

0
10

11

2
1

r5

r1

r1

r1

r1

r1

r1

r1

r1

r2

r2

r2
r

r
se

se

se

se

se
se

se

se

se

r
se

se

se

se

se

se
se

se

se

se

se

se

se
U

U
Users

0-1yrs 1-3yrs 3yrs or more

Out of the sample size of 100 Idea has 22% users. Out of 22 users 9 users are using
idea connection between 0-1 years. While 11 users are using between 1-3 years. The
period between 1-3 years is reflecting Satisfaction level. As it indicates approximately
50% users of are continuing with a number for 1-3 yrs.2 users are using connection
for 3 years and above. Means 10% users are using for 3years and above. The numbers
of users in 3years and above are way behind from Hutch and Airtel.

Trump

41
 Analysis
1.2

0.8

0.6

0.4

0.2

0
User User User User User User User User User User User User User User User User
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Users

0-1yrs 1-3yrs 3yrs and above

Out of the sample size of 100 Trump has 16% users. Out of 16 users 7 users are
using trump connection between 0-1 year (45%) while 7 users (45%) are using
between 1-3 years. 2 users are using for 3years and above. (10%) The number of
users in 3years and above is way behind from hutch and airtel idea it means people
often discontinuing with services within three years.

Q4what reason persuaded you to go for a gsm connection?

(a)Good network ( b) Attractive call plans ( c) other services

42
 Analysis of Service Provided by Airtel

26%

54%
20%

good network attractive call plans value added services

Out of the sample size of 100 airtel has 33%users .out of 33 users 54 % users
bought airtel connection due to good network. While 20%bought for being
economical and 26%bought it due to value added services. Major reasons for airtel
preference is good network .while only few of the users finds it economical.

HUTCH

43
 Analysis of Service Provided by Hutch

22%

48%

30%

good network attractive call plans value added services

Out of the sample size of 100 Hutch has 29%users .out of 29 users 48 % users
bought hutch connection due to good network. While 30%found it to be economical
and 22%bought it due to value added services.. Major reasons for hutch preference
is good network. As compare to airtel hutch is preferred on the grounds of
attractive call plans as well(30)%It means preference for hutch is not only confined
to one aspect (network) .Call plans of hutch are more attractive then airtel.

IDEA

44
 Analysis of Service Provided by Idea

15%
33%

52%

good network attractive call plans value added services

Out of the sample size of 100 Idea has 22%user’s .out of 22 users 15 % users
bought connection due to good network. While 52%bought for being economical
and 33%bought it due to value added services. Major reasons for idea preference is
attractive call plans and value added services. As compare to Airtel and Hutch
purchases are more on the grounds of attractive call plans (52. %) While network as
reason to purchase is far behind from Airtel and Hutch

45
 Trump

Analysis of service provided by Trump

15% 20%

65%

good network attractive call plans value added services

Out of the sample size of 100 Trump has 16%users .out of 16 users 20 % users
bought connection due to good network. While 65%found bought it for being
economical and 15%bought it due to value added services. Major reasons for trump
preference are attractive call plans. As compare to Airtel Hutch and Idea .purchases
are more on the grounds of attractive call plans (65) %. As it offers more talk time
then other players. While network as reason to purchase is far behind Airtel and
Hutch but better then Idea. Value added services are far behind from all the other
players.

46
Q5 are you satisfied with existing connection ?

(a)Excellent ( b) very good ( c) good ( d) poor ( e) very

• Airtel

Satisfaction level of Airtel Users

6%
12% 27%
Excellent
Very Good
Good

21% Poor
Very Poor
34%

Out of 33 users 27 % users rate satisfaction level excellent this is the ideal position
where a brand is in a position to develop unconditional loyalty of customer towards
it. While 34 % rate satisfaction level very good its is a position where customers
likes a brand and not willing to change unless extremely good services are offered.
While 21% rate satisfaction level good. In this position customer likes the brand but
likely to switch even with a slightly better offer. 12% user’s rate satisfaction level
poor .it is a position where customers are willing to change their brand.6% people
rate their satisfaction very poor. In this position customer is desperately looking for
change

Airtel loyalty status

27% users are unconditional loyalty

34% users not willing to change unless extremely good services are offered
21% users likes the brand but likely to switch even with a slightly better offer.
12% users willing to change their brand
6% users desperately looking for change

47
 Satisfaction level of Hutch Users

3% 10%
30% Excellent
Very Good
Good
Poor
37%
Very Poor
20%

Out of 29 users 30 % users rate satisfaction level excellent this is the ideal position
where a brand is in a position to develop unconditional loyalty of customer towards
it. While 20 % rate satisfaction level very good its a position where customers likes a
brand and not willing to change unless extremely good services are offered.
While 37% rate satisfaction level good. In this position customer likes the brand but
likely to switch even with a slightly better offer. 3% user’s rate satisfaction level
poor .it is a position where customers are willing to change their brand.10% people
rate their satisfaction very poor. In this position customer is desperately looking for
change

Hutch loyalty status

30% users are unconditional loyalty

20% users not willing to change unless extremely good services are offered
37% users likes the brand but likely to switch even with a slightly better offer.
3% users willing to change their brand
10% users desperately looking for change

48
 Idea

Satisfaction Level of Idea Users

9% 14%
14% Excellent
Very Good
Good
27% Poor
Very Poor
36%

Out of 22 users 14 % users rate satisfaction level excellent this is the ideal position
where a brand is in a position to develop unconditional loyalty of customer towards
it. While 27 % rate satisfaction level very good its is a position where customers
likes a brand and not willing to change unless extremely good services are offered.
While 36% rate satisfaction level good. In this position customer likes the brand but
likely to switch even with a slightly better offer. 14% user’s rate satisfaction level
poor .it is a position where customers are willing to change their brand.9% people
rate their satisfaction very poor . in this position customer is desperately looking for
change

Idea loyalty status

14% users are unconditional loyalty

27% users not willing to change unless extremely good services are offered
36% users likes the brand but likely to switch even with a slightly better offer.
14% users willing to change their brand
9% users desperately looking for change

49
 Trump

Satifaction Level Of Trump Users

13% 6%
13%
Excellent
19% Very Good
Good
Poor
Very Poor
49%

Out of 16 users 6 % users rate satisfaction level excellent this is the ideal position
where a brand is in a position to develop unconditional loyalty of customer towards
it. While 13% rate satisfaction level very good its is a position where customers likes
a brand and not willing to change unless extremely good services are offered.
While 49% rate satisfaction level good. In this position customer likes the brand but
likely to switch even with a slightly better offer. 19% user’s rate satisfaction level
poor .it is a position where customers are willing to change their brand.13% people
rate their satisfaction very poor . in this position customer is desperately looking for
change

Trump loyalty status

6% users are unconditional loyalty

13% users not willing to change unless extremely good services are offered
49% users likes the brand but likely to switch even with a slightly better offer.
19% users willing to change their brand
13% users desperately looking for change

50
51
Q6 Briefly state reason for your satisfaction or dissatisfaction?

Airtel

14%
31%
24%
network
economical
responsiveness at customer care
geographical reach
17% 14%
other services

From the above graph majority of the users are satisfied from Airtel due good
network(31%)and geographical reach.
. (24%) while satisfaction on responsiveness at customer care is (17%). Very few
users finds it to be economical.(14%)most of the users finds it to be costly.

52
 Hutch

network

17% 20% economical

14%
responsiveness at
customer care
22% geographical reach
27%
other services

from the above graph majority of the users are satisfied from hutch due to
responsiveness at customer care(27%) . It indicates the complaint mechanism at
hutch is very fast. Many users finds it economical as well as compare to airtel.(22%)
while network satisfaction( 20 %) a bit behind airtel. (17%) are satisfied due to
value added services .the lowest rating on satisfaction is geographical reach just
(14%) this is one of the main reasons of dissatisfaction from most of the users.

53
 Idea

network

14% economical
27%

responsiveness at
customer care
4% geographical reach
37%
18%
other services

Above figure shows that most of the users are satisfied from idea for being
economical( 37%) particularly in prepaid . on this ground it is way ahead of airtel
and hutch. Customer satisfactions are also high on the ground of value added
services as it regularly introduces different schemes. Satisfaction on responsiveness
at customer care is (17%) far behind then that of Hutch and almost equals with
airtel.Satisfaction on network is not high only (14%) far behind airtel and hutch.
most of the users finds connectivity problem. satisfaction on geographical reach is
low just (4%) way behind airtel.

54
 Trump

Reasons for Dissatisfaction

network

11% 19%
7% economical

responsiveness at
customer care
15%
geographical reach
48%
other services

Above figure shows that most of the users are satisfied from Trump for being
economical (48%) ahead of all gsm players as it offers more talk time. Satisfaction
on network is (19%) which is behind Airtel and Hutch but better then Idea
responsiveness at customer care is (15%) means it is behind all the brands on this
aspect .satisfaction on other services is also low just (11%) means it is behind all the
brands on this aspect geographical reach is( 7%) which is behind Airtel and Hutch
but better then Idea

55
Q8 according to you wher your brand holds advantage over other brands?

(a)Good network ( b) economical ( c) responsiveness at customer care centre

(d)geographical accessibility ( e)other value added service (specify)

Airtel

14%
31%
24%
network
economical
responsiveness at customer care
geographical reach
17% 14%
other services

from the above graph majority of the users thinks that Airtel holds advantage over
other brands on good network(38%)and geographical reach(24%)
While responsiveness at customer care is (17%). Very few users finds it to be
economical. (14%) most of the users finds that other brands holds advantage over it
on this aspect.

56
 Hutch

network

17% 20% economical

14%
responsiveness at
customer care
22% geographical reach
27%
other services

from the above graph majority of the users thinks Hutch holds advantage over
other brands due to responsiveness at customer care(27%) . it indicates the
complaint mechanism at Hutch is very fast. Many users finds it economical as
compare to airtel.(22%) here it holds advantage over airtel.
While network satisfaction ( 20 % )a bit behind Airtel. (17%) thinks it hold
advantage on other services on airtel and trump. while in geographical reach airtel
holds advantage over it .but it holds advantage over Idea and Trump.

57
 Idea

network

14% economical
27%

responsiveness at
customer care
4% geographical reach
37%
18%
other services

Above graph shows that most of the users thinks Idea holds advantage over other
brands for being economical (37% )particularly in prepaid . On this ground it is
way ahead of Airtel and hutch but behind Trump. It also holds advantage over
other brands on value added services as it regularly introduces different schemes.
Responsiveness at customer care is (17%) far behind then that of Hutch therefore
hutch holds advantage over it and it holds advantage over Trump . Advantage on
network is not high only (14%) far behind airtel hutch and trump. most of the users
finds connectivity problem. satisfaction on geographical reach is low just (4%) way
behind all the brands.

58
 Trump

Reasons for Dissatisfaction

network

11% 19%
7% economical

responsiveness at
customer care
15%
geographical reach
48%
other services

above graph shows that most of the users thinks trump holds advantage over other
brands for being economical (48%) as it offers more talk time. Advantage on
network is (19%) which is behind airtel and hutch but holds advantage over idea
.Responsiveness at customer care is (15%) means all brands holds advantage over it
on this aspect .Satisfaction on other services is also low just( 11%) means all the
brands holds advantage on it on this aspect. geographical reach is ( 7%) which is
behind airtel and hutch but holds advantage over idea.

59
Q9 Rate your satisfaction level on the dimensions of satisfied , dissatisfied, highly
satisfied ?
Network
Responsiveness at customer care centre
Attractive call plans
Value added services

airtel

16
14
12 Satisfied
10 Highly Satisfied
8
6 Dissatisfied
4 Dissatisfied
2
0
Network

Reponsiveness

Attractive call

Value added
at customer
care centre

services
plans

out of 33 users 14 are satisfied with network while 12 users are highly satisfied
with network while 7 users are dissatisfied with network. On responsiveness at
customer care 11 users are satisfied while 10 users highly satisfied and 11 users are
dissatisfied. On Attractive call plans 11 users are satisfied while 8 are highly
satisfied and 14 are dissatisfied . it means most of the users finds airtel costly. On
value added services 13 users are satisfied 7 are highly satisfied 13 are dissatisfied.

60
 Hutch

14
12
10 Satisfied
8 Highly Satisfied
6 Dissatisfied
4
2
0
Attractive call
Reponsiveness

Value added
Network

at customer

services
care centre

plans

Out of 29 users 10 are satisfied with network while 8 users are highly satisfied with
network while 9 users are dissatisfied with network. On responsiveness at customer
care 10 users are satisfied while 12 users highly satisfied and 7users are dissatisfied.
On Attractive call plans 12 users are satisfied while 8 are highly satisfied and 9 are.
On value added services 11 users are satisfied 9 are highly satisfied 9 are
dissatisfied.

61
 Idea

12

10 Network

8 Reponsiveness at
customer care centre
6
Attractive call plans
4
Value added services
2

0
Satisfied Highly Dissatisfied
Satisfied

Out of 22 users 6 are satisfied with network while 6 users are highly satisfied with
network while 10 users are dissatisfied with network means most of the users finds
connectivity problem.. On responsiveness at customer care 8users are satisfied while
6 users highly satisfied and 8users are dissatisfied. On Attractive call plans 7 users
are satisfied while 11 are highly satisfied and 4 are dissatisfied it means most of the
users finds idea to be very economical. On value added services 7 users are satisfied
10 are highly satisfied and 5 are dissatisfied. It means idea regularly offers new
schemes to customers.

62
 TRUMP

9
8
7
6 Satisfied
5
Highly Satisfied
4
3 Dissatisfied
2
1
0
Attractive call
Reponsiveness

Value added
Network

at customer

services
care centre

plans

Out of 16 users 4 are satisfied with network while 6 users are highly satisfied with
network while 6 users are dissatisfied with network. Means connectivity is not good
as compare to hutch and airtel but better then idea. On responsiveness at customer
care 3users are satisfied while 5 users highly satisfied and 8users are dissatisfied. On
Attractive call plans 4 users are satisfied while 8 users are highly satisfied and 4 are
dissatisfied it means most of the users finds Trump to be very economical as it offers
more talk time. On value added services 4users are satisfied 4 are highly satisfied
and 8 are dissatisfied. It means Trump does not offers new and attractive schemes
to customers.

Distributor analysis

63
Q1 Which gsm connection do you stock?

airtel idea hutch truimp

GSM Connection Stocked

60
40
Series1
20
0
Airtel Idea Hutch Trump
out of sample size of 50 distributors. All distributors stock s airtel idea hutch .while
only 40 distributors stocked trump .it means Airtel Idea Hutch have more
penetrated market then Trump.

Q2 According to you which is the most preferred brand by customer and why?

Most preferred brand

40
30
20 Series1
10
0
Airtel Hutch Idea Trump

out of sample size of 50 distributors 50 distributors says that airtel is the most
preferred brand because of good network and geographical reach while 30
distributors says along with airtel hutch is also preferred because of responsiveness
at customer care network economical as compare to airtel.25 distributors says along
with airtel and hutch idea is most preffered because of attractive call plans.15
distributors says trump is most prefferd brand as it offers more talk time.

64
Q3 Which brand has a higher monthly sales ?

50
45
40
35
30
25
Series1
20
15
10
5
0
Airtel Hutch Idea Trump

( 45) distributor says that airtel has the higher monthly sales while 43 distributors
says along with Airtel hutch is also having equal sales .while 33 distributors says
along with airtel and hutch idea are also having higher sales. 15 distributors says
Trump is is also having higher sales .

note (most of the distributors were giving more then a single reason for high sales

65
Q4 What are the main reasons for higher monthly sales?

good network better margins attractive call plans low cost connection

Reasons for Higher Sales of

Airtel
Attractive
call plans
Reasons

Series1
network
Good

0 20 40 60
Values

47 of the distributors thinks good network is the main reason for higher sales
while 40 distributors along with good network says better margin is also the reason
for higher sales while 25says along with good network and better margin attractive
call plans is also the reason for higher sales. Very few dealers consider airtel as low
cost connection.

note (most of the distributors were giving more then a single reason for high sales

66
 Reasons for Higher Sales of
Hutch
Series1
Attractive
call plans
Reasons

network
Good

0 20 40 60

Values

40 distributors says good network is the main reason for higher sales ,while 25
distributors along with good network says attractive call plans is also a reasons for
high sales.20 along with good network attractive call plans ,better margin is also a
reasons for higher sales.20 distributors along with good network attractive call
plans ,better margin , low cost of connection is also a reasons for higher sales

note (most of the distributors were giving more then a single reason for high sales

67
 Idea

reasons for higher sales

40
35
30
25
reasons

20
Series1
15
10
5
0
Good network Better margin Attractive call Low cost
plans connection
values

35 distributors says attractive call plan is the major reason for higher sales. While
30distributors says along with attractive call plans better margin and low cost
connection is also a major reason for higher sales while very few just 10
distributors also considers good network as a reason for higher sales

note (most of the distributors were giving more then a single reason for high sales

68
 Reasons for Higher Sales of
Trump

Series1
Attractive
call plans
Reasons

network
Good

0 10 20

Values

15distributor says attractive call plans and low cost connection is the major reason
for higher sales while 10 distributors says along with attractive call plans and low
cost connection better margin and good network are also reasons for higher sales.

note (most of the distributors were giving more then a single reason for high sales

69
Q5 according to you which company is already having solid distribution
channel?
airtel idea hutch truimp

60

50

40

30
Series1
20

10

0
Airtel Hutch Idea Trump

50 the distributors says that airtel is already having solid distribution

channel .while 45 distributors along with airtel also says that hutch already having
solid distribution .along with airtel and hutch even idea is also having solid
distribution channel. while 10 distri butors thinks all the brands are having a solid
distribution channel.

70
Q6 Which company involves you as a member to retain customer and build
customer loyalty?

Airtel Idea Hutch Trump none of them

60

50

40

30 Series1

20

10

0
Airtel Hutch Idea Trump

all distributors (50) says Airtel Hutch and Idea involves distributor as a member to
retain customer and build customer loyalty .while just 10 distributor says along
with other brand even trump involves distributor as a member to retain customer
and build customer loyalty .

Q7 In what ways you contribute in building customer loyalty?

Most of the distributor says they are expected to give clear information about value
added plans and providing convenience of depositing their bills with them and also
providing facility of flexi recharge.(recharging your mobile number through sms.)

71
 SWOT Analysis
Airtel

STRENGTH WEAKNESS
• 1st telecom company in the world • Not having unified GRPS tariff in the
to receive ISO 9000: 2001 from country.
the British Standard Institute • Expensive among the three.
• Strong connectivity.
• 28 million customer , the
maximum among the three
• Available in the north eastern
state
• Deployment of multi brand
features in a wireless network foe
efficient usage of spectrum.
OPPORTUNITY THREAT
• Disney Mobile Theater • Increasing competition
• 1ST telecom to provide Microsoft • Inconsistency in the special offers.
Windows configuration in
Mobiles.
• Introduction of song catcher.
• Submarine landing station At
Chennai connecting to Singapore
where Indian immigrant are high

72
 Hutch
STRENGTH
• Lowest in cost of promotion.
• Most professional employees and
active complaint mechanism
• Visual radio
• Over all balanced services in all
aspects.
• Fair billing for postpaid users.
OPPORTUNITY
• Can open up operation in the
eastern and north eastern states.
• Having strong financial pocket-
the global company.
WEAKNESS
• Very low physical Evidence
• Advertisement is not understood
by many people.
• GPRS roaming is not available
for the customers in Maharashtra
, Goa, Kerala and Tamil Naidu
• Poor Geographical accessibility
THREAT
• Airtel and idea can grab the
Hutch market.
73
SWOT Analysis of IDEA
STRENGTH
• Lowest call rate .
• The balance promotion.
• Provides free out going calls in
night.
OPPORTUNITY
• Option to tap rural market
for being ecnomical
• Low cost connection can help
them to penetrate
WEAKNESS
• Weakest network as compare to
air tel and hutch
• Poor Geographical accessibility
• Slow complaint mechanism. at
customer care
.
THREAT
• False or Hidden cost may lead to
the drop outs.
• Market share likely to be
snatched by hutch for being
economical then airtel and better
network then idea
74
 TRUMP
STRENGTH
• Low call rate .
• More talktime then other players
• Fair billing for postpaid users
OPPORTUNITY
• Option to tap rural market
for being ecnomical
• Low cost connection can help
them to penetrate
• Carries the brand name of
mtnl which has position it self
to be the most economical
brand in consumer mindset.
WEAKNESS
• Weakest network as compare to
air tel and hutch
• Poor Geographical accessibility
• Slow complaint mechanism. at
customer care
• Very limited value added services
• Not much penetrated as compare
to airtel idea and hutch.
• Limited focus on promotion.
.
THREAT
• Market share likely to be
snatched by hutch airtel and idea
on the grounds of network ,
customer care and value added
sevices.
75
.

Conclusion
Each Gsm brand (Airtel, Idea, Hutch and Trump) is holding competitive
advantage over each other on different aspects. So customer loyalty does exist but
still tendencies of brand switching behavior has been observed .No brands holds
large number of customers having unconditional loyalty which is the ideal indicator of
customer loyalty, because every brand lacks in some or the other aspects .Now market is
getting competitive each day. As big fish Vodafone is all to set to enter Indian market. So
existing players have to focus proactively on the areas they need to work on because in
future customer loyalty will exist only on those brands who will offer a complete package .
(Good network. proactive customer care pocket friendly and flexible call plans ,attractive value
added services and complete geographical accessibility)

76
 Recommendations for building customer loyalty

Airtel
1 should introduce more attractive call plans.
2should focus on fair billing for post paid users.
3 should provide unified gprs tariff in the country.
4 should have proactive complaint mechanism at customer care

Hutch

1 should make efforts to improve network and geographical reach. equivalent to

airtel
2 should develop a strong physical Evidence ,

3should provide more attractive value added services and attractive call plans
equivalent to idea.

IDEA

1 should improve network equivalent a to airtel and hutch

2 should improve their Geographical accessibility
3Should improve complaint mechanism. At customer care

Trump
1 Should improve network equivalent to airtel and hutch
2should improve Geographical accessibility

77
3 Should improve complaint mechanism. at customer care
4 should provide more value added services equivalent to other brands
5 should focus on market penetration equivalent to airtel idea and hutch.
6 should focus proactively on promotions

The future outlook of the service provider in building customer

loyalty.
 Each mobile provider aims to have stronger connectivity.

 Focusing in the rural region as there are many potential customers.

 Reduce the number of network congestion to minimum.

 Reduce operating costs by employing advanced remote maintenance and

diagnostics capabilities.

 Providing many facility free of cost like free call to same service provider,
free SMS, and free additional facility.

 Redefine true, carrier-class design for maximum fault tolerance and

zero downtime

78
 BIBLIOGRAPHY:~

Websites
www.airtelworld.com
www.hutch.co.in
www.ideacellular.com
www.mtnl.net.in

Books
Marketing Management by Philip Kotler, 2003

79
 APPENDICIES

I am the student of “ JAGAN INSTITUTE OF MANAGEMENT STUDIES ”

conducting a marketing survey on “ Customer loyalty in telecom industry(gsm)
”. I assure you that the
information furnished by you would be kept confidential and will be used for
research purposes only.

1 Specimen of end users questionnaire

Q1 which gsm connection are you using?

(a)Airtel ( b) idea ( c) hutch ( d) trump

Q2 which post paid plan or repaid recharge you use every month and why?

Q3 for how many years rre you using the gsm connection?

0-1 yrs 1-3 yrs 3yrs or more

Q4 what reason persuaded you to go for a gsm connection?

(a)Good network ( b) attractive call plans ( c) other services

Q5are you satisfied with existing connection ?

(a)Excellent ( b) very good ( c) good ( d) poor ( e) very poor

80
Q6 briefly state reason for your satisfaction or dissatisfaction ?

Q7 according to you wher your brand holds advantage over other brands?

(a)Good network ( b) economical ( c) responsiveness at customer care centre

(d)geographical accessibility ( e)other value added service (specify)

Q8 rate your satisfaction level on the dimensions of satisfied , dissatisfied, highly

satisfied ?
Network
Responsiveness at customer care centre
Attractive call plans
Value added services

Distributors questionnaire

!Q1 which gsm connection do you stock?

airtel idea hutch truimp

Q2 according to you which is the most preferred brand by customer and why?

Q3 which brand has a higher monthly sales ?

airtel idea hutch truimp

Q4 what are the main reasons for high monthly sales?

Good network better margins attractive call plans low cost connection

Q5 according to you which company is already have a solid distribution

81
 channel?

airtel idea hutch truimp

Q6 which company involves you as a member to retain customer and build

Customer loyalty?

airtel idea hutch truimp none of them

Q7 in what ways you contribute in building customer loyalty?

82