Académique Documents
Professionnel Documents
Culture Documents
Why Customer
Preference for
“Postpaid Connection”
Industry Overview
Telecom Industry in India
Telecom industry in India has a big market potentiality and is a fast growing sector.
Government of India is eager to reconstitute this telecom industry by enacting effective policies
for more investments from foreign companies, which results in a very competitive and
The sector ranks second in the world, with over 509.03 million telephone subscriptions
by Sep 2008 end. The fast track growth of the Indian telecom industry has made it a key
contributor to India’s progress. India adopted a phased approach for reforming the telecom
sector right from the beginning. Privatization was gradually introduced, first in value-added
services, followed by cellular and basic services. An independent regulatory body, Telecom
Regulatory Authority of India (TRAI), was established to deal with competition in a balanced
manner.
This gradual and thoughtful reform process in India has favored industry growth. Today,
there are more than 509 million telecom subscribers in India. Every month, 10-14 million new
subscribers are added. Upcoming services such as 3G and WiMax will help to further augment
the growth rate. Furthermore, the Indian economy is slated to sustain its 7-9 per cent growth
rate in the near future. This is supported by the political stability that the country is experiencing
currently. India’s demographic outlook makes it one of the largest markets in the world.
There exists enormous business potential for telecom companies on account of the country’s
low tele-density, which is close to 19 per cent presently. Indian Telecom sector, like any other
sector in the country, has gone through many phases of growth and diversification. Starting from
telegraphic and telephonic systems in the 19th century, the field of telephonic communication
has now expanded to advanced technologies like GSM, CDMA, and WLL to the much awaited
India's growth story in the telecom space shows no signs of slowdown. The country
added 113.26 million new customers in 2008, the largest globally. To put this growth into
perspective, the country’s cellular base witnessed around 48.50 per cent growth in 2008, with
an average 9.5 million customers added every month. The country had 471.7 million mobile
phone users as of September 2009 compared to 346.89 million in the corresponding period a
year ago and the total number of telephone connections (wireless and wireline) is 509.03 million
as of September end, taking the telecom penetration to over 36 per cent. It implies that one out
The Indian telecom industry has been growing rapidly at a CAGR of 40.63 per cent from
2003 to 2008. Telecom sector contributed 3.4 per cent to India’s gross domestic product in for
the year 2008 and is expected to contribute 5.4 per cent by 2010. There is still a big room for
further growth. The growth will primarily driven by the rise in communications demand from semi
urban and rural India. The teledensity in rural areas being a little more than 10 per cent against
the national average of 33.23 per cent, there is huge untapped potential for mobile phone
The total Broadband subscriber base has reached 7.21 million by the end of September
2009 as compared to 6.98 million by the end of August 2009. Even there is a huge potential in
broadband segment.
The growth in 2008 was led by Bharti Airtel, the country’s largest communications
provider. Bharti had 110.51 million customers as of September end, Vodafone had 82.84 million
and BSNL of about 53.35 million. In fact, Bharti has more customers than the state-owned
Sensitive market and has lowest tariff rates in the world .Presence of 14 Cellular service
Providers makes into a highly competitive Market, The growth engine for Indian cellular service
provider is rural market in coming years, Which is highly price sensitive market due to vendors
will continue to focus on below $25 cost handset. Indian mobile connection market continues to
be dominated by prepaid subscribers. Prepaid connections accounted for more than 89 per cent
of all mobile connections in 2007 and are expected to grow to more than 92 per cent of the
The total services revenue for prepaid connections is expected to grow at 18.9 per cent
CAGR for the period 2008 - 2012 and the total services revenue for postpaid connections is
expected to grow at 15 per cent CAGR during the same forecast period. By 2012, the prepaid
subscriber base will cross 683 million and postpaid subscriber base will exceed 53 million
subscribers. Prepaid subscribers are expected to adopt data services faster than the post-paid
segment. Data revenues for the prepaid segment are projected to grow at 29 per cent CAGR
during the forecast period as compared to 22 per cent CAGR for the post paid subscribers
monthly bill at the end of the month is a Postpaid mobile connection. In this mobile
connection one uses the SIM card to pay monthly bill based on rentals, plan charges and the
usage charges. In the case of a prepaid mobile connection a person first pay by card and then
uses the phone for general utility. While on the other hand postpaid accounts are referred as
In a Postpaid connection one can find two types of components: The first component is
the monthly rental that the subscriber pay to the mobile service provider and the other
component is the usage charges. The uses charges generally vary from the kind of that have
Competitive plans are very evenly introduced by the service providers so as to attract
the maximum number of customers. An engagement with corporate for closed user group
connections allow for subsidized calls to the other group members. For this purpose generally
lower tariffs on monthly rentals and usage fees are taken. Why people choose to have a
Postpaid Plan? Generally because of the reason that the benefits of a prepaid connection are
very limited. In prepaid one pays the advance for a specific number of minutes, once the time
run-out of hands the phone is needed to be recharged for the next number of days and the due
balance is needed to be increased in amount. While in case of a postpaid plan one is needed to
pay after the end of the month. There is no time limit in case of a postpaid plan. No contract is
signed for any particular period of time and one can talk endless without giving an account to
the balance remaining-due. The prepaid mobile bills are just the formalities as voucher cards
while the post-plans are bill like, where one pays after the end of month for all the minutes which
one has used. Most of the postpaid mobile plans connection provides unlimited minutes for
talking whether one is talking just on nights or only on nights and weekends.
RESEARCH METHODOLOGY
The primary data collected through well designed questionnaire. The questionnaire
through which data was gathered and collected consisted of questions which were mostly
objective in nature.
The secondary data for the study got from visiting Cellular service Providers outlets and
gathering informative materials and published information. Current information regarding the
subject and company will be getting from newspapers, business magazines, customer care
executives, journals, internet, and by referring certain books on Indian Telecom Sector.
Method of sampling
Sampling technique
Sampling procedure: Probability convenience sampling method
Method of sampling
The method used for sample technique was non Probability convenience sampling
method. This method is used because it is known previously as to whether a particular person
will be asked to fill the questionnaire. Convenient sampling is used because only those people
will be asked to fill the questionnaires who were easily accessible and available to the
researcher.
Analysis. The data was to be analyzed by using Statistical Program for Social Sciences (SPSS)
software.
Type of Study
The study conducted is a conclusive descriptive statistical study; by this study I come to
the decision which is precise and rational. The study is conclusive because after doing the study
I come to a conclusion regarding the position of the mobile connections in the minds of
respondents of different groups. The study is statistical because throughout the study all the
similar samples are selected and group together. All the similar responses are taken together as
Thus, this, conclusive descriptive statistical study is the best study for this purpose as it
Postpaid 7 8 4 2 21`
Total 97 69 21 13 200
Inference: From the table it be shown that about 90 out of 97 are spending less
than Rs.500 and have Prepaid connection and just 7 out of 97 are spending less than and
have Postpaid connection.
Network availability
Mobile
Connection Total
type Very Good Satisfied bed Very bed
in Bareilly good
Prepaid 22 62 79 11 5 179
Postpaid 1 6 10 2 2 21`
Total 23 68 89 13 7 200
Inference: From the table it be shown that about 79 out of 89 are satisfied with
Network availability and are having prepaid connection and 10 out of 89 have postpaid
connection.
Mobile Connection type in Chennai and Customer Profession type Cross tabulation
Mobile Customer profession type
Connection
type Total
in Bareilly Service Business man Student House wife
person
Prepaid 100 21 52 6 179
Postpaid 11 1 9 0 21
Inference : From the table it be shown that about 100 out of 111 are service
Professional with having prepaid connection and 11 out of 111 are having postpaid
connection.
Mobile Connection type in Chennai and Rating on Call charge rate Cross tabulation
Postpaid 3 3 13 1 1 21`
Inference : From the table it be shown that about 89 out of 102 are satisfied with
the charge rates with having prepaid connection and 13 out of 102 are having postpaid
connection.
Prepaid 96 70 9 4 179
Postpaid 11 7 1 2 21`
Inference : From the table it be shown that about 96 out of 107 are opting the
particular connection with having prepaid connection and 11 out of 107 are having
postpaid connection.
Findings:
It is found that Aircel is the Market Leader in Chennai with 32% market share and
It is found that majority of respondents about 89.5 % using prepaid connection and just
10.5% of the respondents is using Postpaid connection in Chennai among the respondents.
It is found that more than 50% of the respondents believe that the customer care
Executives Behavior is Warm and Helpful and just 1.5 % of the Respondent believes that they
It is found that about 44.5 % of the respondents are satisfied with the customer care
More than 49 % of the respondents spend Less than 500 Rupees per month and just 6.5
It is analyzed that about 44.5 % of the respondents are satisfied with the Network
It is found that more than 50% of the respondents are service Professionals and second
About 52% of the respondents are satisfied with their service providers call rates and
More than half of Respondents ( 53%) are using their particular connections to
It is found that about 67 % of the overall respondents are satisfied with their
service providers and just 2.5% says they are not happy with their service providers.
It is found that about 69 % of the respondents prefer GSM Technology service providers.
It is found that 56% of the respondents uses their connections for 1-2 years and there
are 1.5% of the respondent uses the same number for more than 3 years.
It is found that about 40% of the respondents are satisfied with the Value added services
services so there is room for improvement in the customer care services for cellular services as
the customer care services are the pillars which play a very vital role in the cellular
services, the company which provide the best customer service will the winner at the
end.
It is seen that about 49% of the respondent spend less than Rs 500 on the cellular
service , that is the reason that ARPU (Average Revenue Per User ) of the Cellular service
Providers are very Low now , so to increase the ARPU , the cellular service providers needs to
It is observed that about only 45% of the respondent are satisfied with the network
availability by their service provider , the network quality is one of the primary reason of the
Aircel being a market leader in Tamil Nadu , so for competing with aircel other service
It is observed that just 40% of the respondent is satisfied with the value added services
provided by their service providers it means there is still a lot of room for the new innovative
VAS services which can increase the service providers revenue and attracting new
subscribers.
Conclusion
Thus, Based on the literature findings, it is possible to prepare an instrument to measure the
preference of customer in term of prepaid and postpaid connections .Customer service and Value
added Service (VAS) are Critical in Mobile services which act as a differentiator for Service Provider
and help customer in deciding about the mobile connections type ,Total cost of Ownership (TCO) is
a major factor in deciding about the type of connection and that is the Reason that Mostly customer
prefer Prepaid connection as the TCO is less in prepaid compared to Postpaid connection . With the
launch of the 3G Technology the VAS will be the dominant factor in future to decide about the type
of connection that will be chosen by the customer. People Prefer Mostly the GSM Technology
because of the facility to change the SIM Frequently whereas this facility is not available in CDMA.
The high ARPU (Average Revenue per User) can be achieved only by Providing the new innovative
services like Nokia Weather service for Farmers in India which cost just Rs.2 / Per day only which
1. Bharti Airtel
Bharti Airtel retained its leading position among telecom service
providers and posted a growth of five per cent to end 2009-10 fiscal with
into four strategic business units -- mobile, telemedia, enterprise and digital TV. The company
has with operations in 18 countries with a footprint covering 1.8 billion people. Sunil Bharti Mittal
In March 2011, Bharti Airtel bought the African operations of Kuwait-based Zain Telecom
for $10.7 billion. Recently, it has joined a consortium of global telecom operators to announce
the launch of the EASSy cable system -- the 10,000 km undersea cable connecting Africa to
Europe.
2. BSNL
Bharat Sanchar Nigam Limited saw a drop in its revenue for the
drop of 14 per cent, even though it retained the number two position among telecom players.
BSNL offers both fixed line and mobile services with broadband connections. With over 71.68
million subscribers, BSNL currently is the largest wire line service provider in India.
The company has reported around 6 crore (600 million) 2G connections and 9,73,378
3G connections since February 2010. All major towns and cities are covered through BSNL
network. Gopal Das is the new chairman and managing director of BSNL.
3. Vodafone Essar
The Indian subsidiary of Vodafone Group, Vodafone Essar recorded 13.7 per cent
growth to emerge as the third largest player with revenue of Rs 23,200 crore (Rs 232
billion).The company commenced operations in 1994 when its predecessor Hutchison Telecom
acquired the cellular license for Mumbai. It has operations across the country with over 106.34
million customers. It is the world's leading international mobile communications group with
approximately 347 million proportionate customers as on 30 June 2010 and has around 40
Vittorio Colao is Vodafone chief executive, and Marten Pieters is managing director and
4. Reliance Communications
growth of 3.5 per cent with revenue of Rs 22,130 crore (Rs 221.3 billion). It is India's largest
private sector information and communications company, with over 100 million subscribers.It
(voice, data and video) digital network, to offer services spanning the entire infocomm value
chain.
5. Idea Cellular
Idea Cellular is part of the Aditya Birla Group and has bagged fifth position with a
revenue of Rs 11,390 crore (Rs 113.9 billion).It is a leading GSM mobile services operator in
India with 67 million subscribers. Idea offers both prepaid and post paid services. It is a pan-
India operator with services being made available in all parts of the country. Idea was the first
cellular service provider to launch General Packet Radio Service (GPRS) and Enhanced Data
6. Tata Communications
leverages its advanced solutions capabilities and domain expertise across its global and pan-
India network to deliver managed solutions to multi-national enterprises, service providers and
Indian consumers. The Tata Global Network includes one of the most advanced and largest
submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries
across 400 PoPs, and nearly 1 million square feet of data center and collocation space
worldwide.
7. Tata Teleservices
Tata Teleservices spearheads the Tata Group's presence in the telecom sector. It has
posted revenue of Rs 6,900 core (Rs 69 billion).Established in 1996, Tata Teleservices, one of
the 96 companies of Tata Group, has its network in 20 circles. It is the first company to launch
CDMA mobile services in India. It launched mobile operations in January 2005 under the brand
name Tata Indicom. It enjoys a pan-India presence through existing operations in all of India's
22 telecom circles. Tata Teleservices operates under five different brands -- Tata Indicom
(CDMA services), Tata DOCOMO (GSM services), Virgin Mobile, Tata Wacky (which is the
brand for fixed wireless phones), Tata Photon (the company's brand that provides a variety of
Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves nearly 70
million customers in more than 450,000 towns and villages across the country.
8. Aircel
Aircel recorded the highest growth of 37.2 per cent among operators in 2009-10.The
company posted a revenue of Rs 4,700 crore (Rs 47 billion) to move to the number eight slot. It
is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities
Investments Private Limited, whose current shareholders are the Reddy family of Apollo
Hospitals Group of India. Aircel commenced operations in 1999 and became the leading mobile
operator in Tamil Nadu. It emerged a market leader in Assam and in the North Eastern
Today, the company has a foothold in 21 circles including Chennai, Tamil Nadu, Assam,
North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala,
Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East), Maharashtra & Goa , Mumbai, Madhya
MTNL
highest among the top 10 players -- to Rs 3,650 crore (Rs 36.5 billion).The company has
achieved a customer base of 8.06 million in the two metro cities of Delhi and Mumbai. The
government currently holds 56.25 per cent stake in the company. Today it has more than
The company was in the forefront of technology induction by converting 100 per cent of
TTML
The third Tata group company is this arena, Tata Teleservices Maharashtra Limited
(TTML) is ranked number 10, among the top ten telecom players in India, with revenues of Rs
2,300 crore (23 billion. This helped the group's earning go past the Rs 20,000 crore (Rs 200
billion) mark. TTML leads the Tata group's presence in the telephony sector in the telecom
circles of Maharashtra and Goa, including Mumbai. TTML commenced landline operations in
1998 and has the largest wire line base in Mumbai and Maharashtra amongst all private
where IT and telecommunications merge. Rapid technological convergence has already implied
today’s IT is ‘telecom writ large’, it flourishes on the telecom-network and in turn permits modern
There is a legacy vision derived from export-success of India’s software that has given
rise to optimism regarding India’s growing pre-eminence in global IT canvas. Such a vision
builds on a much larger vision of all round development of IT that pervades wide cross-section
of Indian economy and society. Deeper analysis shows that there is need for a comprehensive
IT development strategy to ensure India’s durable presence in the global software market. As
discussion in the subsequent paragraphs will show, ‘enclave’ type development of software with
exclusive focus on export can not bring about desired benefits if such a strategy ignores the
linkages between export and the domestic market. Vision 2020, therefore, is a much larger
vision.
Competition Policy
Countries often differed in pattern of sequencing and the speed of liberalization. Competition
has been controlled within limit by state policy through licensing of limited number of market
Heterogeneity of routes to sectoral reforms, as seen from the examples of some of the Asian
countries, classified into different combination of policies and approaches to telecom reform, are
presented below:
1. Competition in the fixed line segment with state owned incumbents: China, India and
Korea.
granted to private investors: Hong Kong, Indonesia, Malaysia, Pakistan and Singapore.
4. Opening up of local market to competition first: Hong Kong, India and Singapore.
5. Opening up of competition in the international services first: Korea, Malaysia and the
Philippines.
Introduction of second domestic long distance carrier first: China
The sector ministry exercises regulatory functions: China, Indonesia, Japan, Korea,
1. Separate regulator with the responsibility for interconnection lying with the dominant
operator while regulator is responsible for arbitration of disputes: Hong Kong, Pakistan
and Philippines.
In most countries, restricting the number of licensees or imposing geographic limitations
has limited competition. In India, for instance, competition in cellular telephony was allowed in a
duopoly mode. This was gradually increased to licensing of four operators in each of the four
metros and thirteen circles. Basic service in India is still limited to one private operator
competing with state owned incumbents in the circles. Though private sector has been licensed
and they are laying infrastructure, metros are still in the grip of public sector monopoly and it will
take a while before private competition takes place. Differences in modes of privatization have
been observed in other countries. In Thailand, private entry was allowed through Build Operate
and Transfer (BOT) mode while the network was controlled by the state. In Vietnam, network
was publicly managed with foreign operators participating in provision of training, equipment
and supervision through Business Cooperation Contracts (BCCs). China did not allow private
entry in the telecom sector and limited competition between state-owned entities of the
ministries. Many countries in Asia restricted foreign equity participation. For example, China,
India, Indonesia, Korea, Malaysia, the Philippines and Thailand limited foreign equity below fifty
per cent.
It is interesting to note that competing technological standards have also limited
competitions. Countries are divided in their technical options for mobile networks. While Europe
predominantly opted for Global System for Mobile communications (GSM) technology and USA
for Code Division Multiple Access (CDMA), within Asia, China, India, Indonesia and Malaysia
have opted for GSM in cellular mobile network, whereas Hong Kong, Korea, the Philippines,
However, several countries are now opting for more than one standards. For example, in
USA, ‘Companies like AT&T and Cingular are increasingly moving to GSM’. ‘China is going with
some CDMA as well.’ India is using CDMA in Wireless in Local Loop (WLL). Multiple
technological standards fragment market rendering base stations purchased from one company
unworkable with switches bought from another company potentially limiting the scope of
The Government has taken the following main initiatives for the growth of the Telecom
Sector:
• All telecom services have been opened up for free competition for unprecedented
growth
• 217 (Information Technology Agreement) ITA-I items are at zero Customs Duty. Specified
capital goods and all inputs required to manufacture ITA-I, items are at zero Customs Duty
The international Long Distance Services (ILDS) opened with effect from April 2002. Calling
Party Pays (CPP) regime was implemented with effect from 1st May 2003
• Guidelines for Unified Access Service License regime were issued in November 2003, 27
licenses out of 31 Basic Service Licenses were converted to Unified Access Service Licenses
• In April 2004, license fee for Unified Access Service Providers (UAS) was reduced
by 2 per cent.
• License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of the Adjusted
Gross Revenue and spectrum charges between 2 to 4 per cent in June 2004.
• Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry fee for ILD
• Lease line charges have been reduced to make the bandwidth available at competitive prices
• One India plan i.e. single tariff of Re. 1/- per minute to anywhere in India was introduced from
1st March 2006 by the Public Sector Undertakings. This tariff was emulated by most of the
private service providers also. This scheme has led to death of distance in telecommunication
• The robust telecom network has also facilitated the expansion of BPO industry that is having
• Annual license fee for National Long Distance (NLD), International Long Distance (ILD),
Infrastructure Provider-II, VSAT commercial and Internet Service Provider (ISP) with internet
telephony (restricted) licenses was reduced to 6 per cent of Adjusted Gross Revenue (AGR)
• The Government’s policy is neutral on use of technology by telecom service providers subject
Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the
telecom manufacturing segment in 1991 - when India embarked on economic liberalisation. FDI
is defined as investment made by non-residents in the equity capital of a company. For the
telecom sector, FDI includes investment made by Non-Resident Indians (NRIs), Overseas
Corporate Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs), American
• In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value Added
Services and Global Mobile Personal Communications by Satellite, FDI is limited to 49 per cent
(under automatic route) subject to grant of licence from the Department of Telecommunications
and adherence by the companies (who are investing and the companies in which investment is
being made) to the licence conditions for foreign equity cap and lock-in period for transfer and
• Foreign Direct Investment up to 74 per cent permitted, subject to licensing and security
• FDI up to 100 per cent permitted in respect to the following telecom services:
- ISPs not providing gateways (Both for satellite and submarine cables)
- Electronic Mail
- Voice Mail
- FDI up to 100 per cent is allowed subject to the condition that such companies would divest 26
per cent of their equity in favour of Indian public within 5 years, if these companies are listed in
- The above services would be subject to licensing and security requirements, wherever
required.
- Proposals for FDI beyond 49 per cent shall be considered by Foreign Investment Promotion
• In the manufacturing sector 100 per cent FDI is permitted under the automatic route.
• In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile Personal
Communications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subject
requirements for the Internet Service (with gateways), Infrastructure Providers (category-II),
- ISPs not providing gateways (both for satellite and submarine cables),
- Voice Mail
• FDI up to 49 per cent is also permitted in an investment company, set up for making
domestic equity and is not set of against the foreign equity cap.
FDI up to 100 per cent is allowed subject to the conditions that such companies would divest 26
per cent of their equity in favour of Indian public in 5 years, if these companies are listed in other
required.
• Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case basis.
Major Players
The telecom sector has been one of the fastest growing sectors in the Indian economy in
the past 4 years. This has been witnessed due to strong competition that has brought down
tariffs as well as simplification of policy environment that has promoted healthy competition
among various players. Due to this reason, telecom density in the country has risen to over 12
per cent at the end of January 2006, from 3.6 per cent in March 2001.
The mobile sector alone has been growing rapidly and has emerged as the fastest
growing market in the whole worlds. Currently of a size nearing 70 million (GSM and CDMA),
this sector is expected to reach a size of nearly 200 million subscribers by financial year 2008.
5.28 million mobile subscribers additions were registered in July 2006, compared to 4.78 million
in June and 4.25 million in May. More than 200 million subscribers addition is expected by July
2007.
The government has eased the rules regarding inter circle and intra circle mergers. This
has led to a slew of mergers and acquisitions in the recent past. Also as the sector is moving
closer to maturity, further consolidation is a reality and this will lead to the survival of more
steps to develop this sector with the help of the various players in this segment. For this
purpose, the use of broadband technology is being mooted and this will go a long way in
improving the productivity of the Indian economy as well as turn out to be the next big
Non-voice services and VAS are the gold mines. The big takeoff is expected with the rollout of
3G services in early 2007, once the spectrum issues are sorted out. Internet users base fast
reaching near the English speaking population base. Local language and content required for
further growth.
Infrastructure equipment cost is down to a fraction of what prevailed just a few years
Increased viability for the operators to expand to semi-urban and rural markets, hence,
It’s not without reason that India is tipped to be the world’s third-larges economy by
outside developed economies that are marked by saturated telecom market and lower GDP
growth rates.
At a time when global telecom majors are struggling to cope with their losses and the
rollout of 3G networks, which has been a non-starter for close to a year now; India, with its
telecom success story, represents an attractive and lucrative destination for investment.
CHAPTER II
Aircel
Introduction to Aircel
Aircel group is a mobile phone service provider in India. It offers both prepaid and
postpaid GSM cellular phone coverage throughout India. Aircel is a joint venture between Maxis
Communications of Malaysia and Apollo Hospital Enterprise Ltd of India. UTSB has a 74%
stake in Aircel and the remaining 26% is with Apollo Hospitals. It is India’s Seventh largest GSM
mobile service provider with a subscriber base of over 51.83 million, as of January 31, 2011. It
has a market share of 6.72% among the GSM operators in the country. As on date, Aircel is
present in all 23 telecom circles (including Andhra Pradesh, Assam, Bihar & Jharkhand,
Chennai, Delhi & NCR, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka,
Kerala, Kolkata, Madhya Pradesh, Mumbai, North East, Orissa, Punjab, Rajasthan, Rest of
Maharashtra & Goa, Rest of Tamil Nadu, Rest of West Bengal, Uttar Pradesh East, Uttar
Pradesh West) as per the company plans to become a pan-India operator by 2010. Additionally,
Aircel has also obtained permission from Department of Telecommunications (DoT) to provide
International Long Distance (ILD) and National Long Distance (NLD) telephony services. It also
Malaysia (74% equity) and Apollo Hospital Enterprise Ltd of India (26% equity). It is a
The Aircel Group, formed in 1994, offers affordable and outstanding mobile services to a vast
subscriber base in India. Aircel has a vision of delighting its customers by giving them the
respect they deserve. Our goal is to provide our customers with exemplary service and
building our foundations in the southern part of the country, and soon emerged as the regional
market leaders. We worked hard and achieved that success by remaining focused on growth
opportunities. Soon after our company began with its expansion in 2005 and has now set its
sight on becoming a pan India operator. Our project pipeline is robust, allowing for sustainable
long-term growth.
In addition to our leadership position in Tamil Nadu, Aircel met with extraordinary success in the
Eastern frontier circles. We pride ourselves on customer satisfaction and managed to emerge
as the market leaders in Assam and North Eastern states within 18 months of operations.
During this period, our company gained a strong foothold in 10 circles, to provide better access
to our customers. Today, Aircel operates in 18 telecommunication circles and the company is
ready to embark on a dynamic expansion plan, swiftly rolling out in new circles in the near
future.
Aircel recognizes the tremendous growth in its customer base. We have also got an
authorization from the Department of Telecommunications for ILD and NLD telephony services
and are now on track to realize our dream of becoming a nationwide player by the year 2010.
Aircel offers its customers, services and products that are easy to understand and use. All
offerings are stimulating and at the same time extremely unique as Aircel continues to re-invent
itself constantly to deliver the best and most up-to-date services. The brand instils a felling of
pride, confidence and reliance among all stakeholders by anticipating their desires and fulfilling
With our foundations deeply set on our brand vales of simplicity, creativity, trust and excitement,
we will continue to deliver superior services to our customers and will do our best to live up to
The Aircel Group is a result of alliance between Maxis Communications Berhad of Malaysia
(74% equity) and Apollo Hospital Enterprise Ltd of India (26% equity). It is a partnership of two
The Aircel Group, formed in 1994, offers affordable and outstanding mobile services to a vast
subscriber base in India. Aircel has a vision of delighting its customers by giving them the
respect they deserve. Our goal is to provide our customers with exemplary service and
building our foundations in the southern part of the country, and soon emerged as the regional
market leaders. We worked hard and achieved that success by remaining focused on growth
opportunities. Soon after our company began with its expansion in 2005 and has now set its
sight on becoming a pan India operator. Our project pipeline is robust, allowing for sustainable
long-term growth.
In addition to our leadership position in Tamil Nadu, Aircel met with extraordinary success in the
Eastern frontier circles. We pride ourselves on customer satisfaction and managed to emerge
as the market leaders in Assam and North Eastern states within 18 months of operations.
During this period, our company gained a strong foothold in 10 circles, to provide better access
to our customers. Today, Aircel operates in 18 telecommunication circles and the company is
ready to embark on a dynamic expansion plan, swiftly rolling out in new circles in the near
future.
Aircel recognizes the tremendous growth in its customer base. We have also got an
authorization from the Department of Telecommunications for ILD and NLD telephony services
and are now on track to realize our dream of becoming a nationwide player by the year 2010.
Aircel offers its customers, services and products that are easy to understand and use. All
offerings are stimulating and at the same time extremely unique as Aircel continues to re-invent
itself constantly to deliver the best and most up-to-date services. The brand instils a felling of
pride, confidence and reliance among all stakeholders by anticipating their desires and fulfilling
With our foundations deeply set on our brand vales of simplicity, creativity, trust and excitement,
we will continue to deliver superior services to our customers and will do our best to live up to
Technology related business solutions are an indispensable part of trade and commerce
in today’s marketplace. These business solutions aim at generating value for consumers by
Today every company needs unique technology related solutions specific to their individual
environment. Keeping the same in mind, Aircel offers a comprehensive range of business
related applications to empower every aspect of your business. Our business enhancement
solutions are aimed at generating profitable results for your enterprise. Our products ranging
from premium internet services, E-Conferencing, MPLS VPN and Smart Stream provide a
Let us assist you in implementing innovative business solutions customized to your needs and
make your day to day business processes more efficient by simplifying your busy world.
Aircel Services
My aircel.
Pocket Internet
Dialer Tunes
Music on demand
Pocket learing
Movie partner
Voice station
MMS
Blyk on aircel
Doctor on call
Job alert
Live astrology
Chapter III
computer. Then the task of drawing inferences was accomplished with the help of percentage and
graphic method. Different suggestions given by me to the Company after analyzing the views of
Keeping in mind the objectives of the study, the survey was being done and following
A MALE 39 78%
B FEMALE 11 22%
90%
Male
80% Femal
e
70%
60%
50%
40%
30%
20%
10%
0%
INTERPRETATION: The graphical representation of the table shows that out of 50
A 15-25 21 42%
B 25-35 18 36%
C 35-45 6 12%
D Above 45 5 10%
INTERPRETATION: The graphical representation of the table shows that out of total
respondents 42% were of age 15-25, 36% 25-35, 12% 35-45, and rest were above 45.
A Matriculate 8 16
B Intermediate 17 34
C Graduation 19 38
D Post-Graduation 56 12
INTERPRETATION: The graphical representation of the table shows that out of total
postgraduate.
A Aircel 14 28
B Vodafone 25 50
C Other 11 22
Aircel
INTERPRETATION The 14 person were used Air Tel and 25 person were used vodaphone
Aircel
S.NO. PARTICULARS NUMBER %AGE
B 6 to 12 months 3 21%
Vodafone
S.NO. PARTICULARS NUMBER %AGE
B 6 to 12 months 3 12%
INTERPRETATION The one person were used since six months and three were used since
Other
S.NO. PARTICULARS NUMBER %AGE
B 6 to 12 months 2 18%
Aircel
S.NO. PARTICULARS NUMBER %AGE
A Recommended by 5 36%
friend and relative
B Recommended by 2 14%
retailer
C Brand image 1 7%
D Advertisement 6 43%
INTREPRETATION: Five were recommended by friends and relative and two were
by retailer and one was by brand image and six were by advertisement .
Vodafone
S.NO. PARTICULARS NUMBER %AGE
A Recommended by 6 24%
friend and relative
B Recommended by 2 8%
retailer
C Brand image 8 28%
D Advertisement 10 40%
INTREPRETATION: Six were recommended by friends and relative and two were
by retailer and seven were by brand image and ten were by advertisement.
Other
S.NO. PARTICULARS NUMBER %AGE
A Recommended by 2 18%
friend and relative
B Recommended by 2 18%
retailer
C Brand image 6 55%
D Advertisement 1 9%
INTREPRETATION: Two were recommended by friends and relative and two
were by retailer and six were by brand image and one was by advertisement
A Yes 42 84%
B No 8 16%
INTERPRETATION: The forty two people were saying yes and eight were says no.
B Radio 0 0%
C Newspaper 11 22%
D Magazine 8 16%
A Aircel 21 42%
B Vodafone 24 48%
Aircel
C Undecided 6 12%
INTERPRETATION: The 22 person says very well and 12 person says some
11. How well did the advertisement of Vodafone catch your attention ?
C Undicided 6 12%
A Yes 34 68%
B No 12 24%
C Undecided 4 8%
INTERPRETATION: The 34 person says yes and 12 person says no and 4 person
were no response .
A Yes 38 76%
B No 7 14%
C Undecided 5 10%
INTERPRETATION: The 38 person says yes and 7 people says no and 5 person
were no response.
A Yes 42 84%
B No 8 16%
INTERPRETATION: The forty two person were saying yes and eight were says no
B Dealer 8 16%
C Advertisement 25 50%
D Magazine 4 8%
constraints that we underwent during the study. The following points in this direction
1. During the study, on many occasions the respondent groups gave us a cold
holder.
2. The respondents from whom primary data was gathered any times displayed
complete ignorance about the complete branded range, which was being studied.
study.
7. Some retailers did not answer all the questions or do not have time to answer.
CONCLUSIONS
the following Books, Magazines/Journals and Web Sites have been referred. All the
material detailed below provides effective help and a guiding layout while designing this
text report.
Books:
Websites:
www.Aircelworld.com
www.google.com
www.india.com
www.Vodafone.in
QUESTIONNAIRE
Dear Sir/Madam
I am the student of MBA-4th Semester at Northern India Engineering College doing a
project “THE IMPACT OF ADVERTISING ON BUYER BEHAVIOUR: - A
STUDY ON AIRCEL V/S VODAFONE ” Please co-operates to fill this questionnaire.
1. Name_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2. Sex:
(a) Male (b) Female
3. Age:
(a) 15-25 (b) 25-35
4. Education:
(a) Matriculate (b) Intermediate
a) Aircel
b) Vodafone
c) Any other
a) Yes
b) No
11. How well did advertisement of the Aircel catch your attention?
a) Very well
b) Somewhat well
C) Undecided
d) Not at all.
12. How well did the advertisement of the Vodafone catch your attention?
a) Very well
b) Somewhat well
C) undecided
d) Not at all
13. Do you think that advertisement made by company informs you about there products?
.a) Yes
b) No
C) Undecided
14. Do you collect any information search before making purchase?
Yes
No
a) Magazines
b) Dealers
c) Operators references
d) Advertisement
e) Reference from friends and relatives
f) Any other