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CHAPTER 1 INTRODUCTION
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INTRODUCTION World telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom connections. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry. The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc. Economical aspect of telecommunication industry: World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet. Present market scenario of world telecom industry: Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest.
GLOBAL SCENARIO Until the 1980s the world telecommunications systems had a simply istrative structure. The United States telephone service was supplied by a regulated monopoly, American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by the Western Union Corporation. In almost all other countries both services were the monopolies of government agencies known as PTTs (for Post, Telephone, and 2
Telegraph). In the United States beginning in 1983, AT&T agreed in a court settlement to divest itself of the local operating companies that provided basic telephonic service. They remained regulated local monopolies, grouped together into eight regional companies. AT&T now offers long distance service in competition with half a dozen major and many minor competitors while retaining ownership of a subsidiary that produces telephonic equipment, computers and other electronic devices. During the same period Great Britain’s national telephone company was sold to private investors as was Japan’s NTT telephone monopoly. For telegraphy and data transmission, Western Union was ed by other major companies, while many multinational firms formed their own telecommunications services that link offices scattered throughout the world. New technology also brought continuing changes in the providers of telecommunication. Private companies such as Comsat in the United States were organized to provide satellite communication links within the country. Around the world we are witnessing remarkable changes to the telecoms environment. After years of debate, structural separation is now taking place in many parts of the world including Hong Kong, New Zealand, Singapore and some European markets. Structural separation or at least full-blown operational separation is required to advance the entire industry and to create new business opportunities and innovations which will benefit our society, our economy and ultimately our industry. The focus is also shifting away from broadband to what it can actually achieve. Next Generation Telecommunications better describes this new environment and is essential for the emerging digital economy. Important services that depend on NGT include tele health, e-education, e-business, digital media, e-government and environmental applications such as smart utility meters. In order to meet this burgeoning consumer demand for NGT applications, we are seeing increasing investment in All-IP Next Generation Networks and fiber networks. A proper inventory of national infrastructure assets is required if we want to establish an efficient and economically viable national broadband structure for these services. In the developing markets, next generations telecoms will take the form of wireless NGNs (ie, LTE/WiMAX). 3
These are some of the elements of the broader ICT revolution that is unfolding before our very eyes. We are right in the midst of the transition from old communications structures (mainly one-way streets) to new structures that are fully-interactive and video-based. One of the drivers behind the industry changes are the declining revenues experienced by the telcos in their traditional markets. Over the past 10 years or so, fixed-line operators have been affected by deregulation, a severe industry downturn, declining prices and major inroads by mobile services. In addition, people are drifting to other forms of communication, such as email, online chat, and mobile text messaging instead of the traditional phone. This has also led to an increased need for bandwidth, which in turn has revived the submarine cable sector. In recent times there have been many cable build-out announcements around the world, and some major systems are again being constructed. Over 25 systems are expected to be built over the next two to three years and network upgrades are also on the agenda for some existing systems. It is clear that the mobile industry is also undergoing profound changes. The saturated developed markets are forcing the industry to find new revenue streams and we are now seeing other organizations such as media companies, content providers, Internet media companies and private equity companies becoming involved in this market. For the time being however, voice will remain the killer application for mobile with some data services included as services and niche market services. 4G (ie, WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the majority of mobile revenues will come from data. With the Internet economy, digital media and other telecommunications activities becoming further established, the need for modern and efficient infrastructure is becoming more critical.
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INDIAN OVERVIEW Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world with an addition of 9- 10 million monthly subscribers. The teledensity of the Country has increased from 18% in 2006 to 33% in December 2008, showing a stupendous annual growth of about 50%, one of the highest in any sector of the Indian Economy. The Department of Telecommunications has been able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. India has emerged as a major base for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. As a result common man today has access to this most needed facility. The reform measures coupled with the proactive policies of the Department of Telecommunications have resulted in an unprecedented growth of the telecom sector. The thrust areas presently are: 1. Building a modern and efficient infrastructure ensuring greater competitive environment. 2. With equal opportunities and level playing field for all stakeholders. 3. Strengthening research and development for manufacturing, value added services. 4. Efficient and transparent spectrum management 5. To accelerate broadband penetration 6. Universal service to all uncovered areas including rural areas. 7. Enabling Indian telecom companies to become global players. Recent things to watch in Indian telecom sector are: 1. 3G and BWA auctions 2. MVNO 3. Mobile Number Portability 4. New Policy for Value Added Services 5. Market dynamics once the recently licensed new telecom operators start rolling out 6. Services. 7. Increased thrust on telecom equipment manufacturing and exports. 5
8. Reduction in Mobile Termination Charges as the cost per line has substantially reduced 9. Due to technological advancement and increase in traffic. India's telecom sector has shown massive upsurge in the recent years in all respects of industrial growth. From the status of state monopoly with very limited growth, it has grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the people of India. This changing phase was possible with the economic development that followed the process of structuring the economy in the capitalistic pattern. Removal of restrictions on foreign capital investment and industrial de-licensing resulted in fast growth of this sector. At present the country's telecom industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone companies were present, fixed landlines were popular in most parts of the country, with government of India setting up the Telecom Regulatory Authority of India, and measures to allow new players country, the featured products in the segment came in to prominence. Today the industry offers services such as fixed landlines, WLL, GSM mobiles, CDMA and IP services to customers. Increasing competition among players allowed the prices drastically down by making the mobile facility accessible to the urban middle class population, and to a great extend in the rural areas. Even for small shopkeepers and factory workers a phone connection is not an unreachable luxury. Major players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchison Essar, BPL, Tata, Idea, etc. With the growth of telecom services, telecom equipment and accessories manufacturing has also grown in a big way. Indian Telecom sector, like any other industrial 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 make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers.
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SCOPE OF THE STUDY The scope of the study is limited to the post paid services offered by Reliance Communications. Study objective is to examine the various factors which play their part in customer buying behavior and the major dissatisfaction areas for the customers. The study considered the urban area of Lucknow city. The sample under consideration consisted of the existing customers of Reliance Communications.
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SIGNIFICANCE OF THE STUDY The project I chose was a study on customer awareness and satisfaction for reliance post paid products. The title is very much significant considering the present global scenario. The awareness level is the basic requirement for a company to sell its products in the market because if the customers are not aware of the products, there would be no sale. Along with the awareness, the companies have to keep a regular check on the satisfaction level of its customers to retain them. The survey helps to find out the loopholes is the area of service being offered by the company. Identifying those areas would help the company to minimize them and then they can go for increasing customers.
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OBJECTIVES OF THE STUDY The following are the objectives of the study. 1. To study the problems faced by the respondents with Reliance Postpaid service. 2. To study customer satisfaction level on Reliance services. 3. To find out consumer preferences. 4. To analyze the level of awareness about Reliance products. 5. To make suggestions in the light of the findings of the study.
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LITERATURE REVIEWED: •
Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its “Performance
Analysis of Companies (April-June 2008)” has analyzed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. With almost 5-6million subscribers are being added every month, and the country is witnessing wild momentum in the telecom industry, the Indian telecom industry is expected to maintain the same growth trajectory. •
Internet service providers in India, Rao (2000), provide a broad view of the
role of an Internet service provider (ISP) in a nascent market of India. Building local content,
foreknowledge
of
new
Internet
technologies,
connecting
issues,
competitiveness, etc. would help in their sustainability. •
The role of technology in the emergence of the information society in India,
Singh (2005), describes the role that information and communication technologies are playing for Indian society to educate them formally or informally which is ultimately helping India to emerge as an information society. •
T.H. Chowdary (1999) discusses how Telecom reform, or demonopolization, in
India has been bungled. Shaped by legislation dating back to the colonial era and post Second World War socialist policies, by the mid-1980s India realized that its poor telecommunications infrastructure and service needed reform. At the heart of the problem lay the monopoly by the government’s Department of Telecommunications (DOT) in equipment, networks and services. The National Telecom Policy 1994 spelt out decent objectives for reform but tragically its implementation was entrusted to the DOT. This created an untenable situation in which the DOT became policymaker, licenser, regulator, operator and also arbitrator in disputes between itself and licensed competitors. He discusses the question: ‘Why did India get it so wrong? and What India should do now? •
Thomas
(2007),
in
his
article
describes
the
contribution
made
by
telecommunications in India by the state and civil society to public service, this article aims to identify the state’s initial reluctance to recognize telecommunications provision as a basic need as against the robust tradition of public service aligned to 1 0
the postal services
and
finds
hope in
the renewal
of public service
telecommunications via the Right to Information movement. The article follows the methodology of studying the history of telecommunications approach that is conversant with the political economy tradition. It uses archival sources, personal correspondence, and published information as its research material. The findings of the paper suggests that public service in telecommunication is a relatively ‘‘new’’ concept in the annals of Indian telecommunications and that a deregulated environment along with the Right to Information movement holds significant hope for making public service telecommunications a real alternative. The article provides a reflexive, critical of public service telecommunications in India and suggests that it can be strengthened by learning gained from the continual renewal of public service ideals and action by the postal services and a people-based demand model linked to the Right to Information Movement. All studies done by the researcher suggests that the right to information movement has contributed to the revitalization of participatory democracy in India and to a strengthening of public service telecommunications.
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CHAPTER 2 INDUSTRY PROFILE
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INDUSTRY PROFILE The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010. India added 113.26 million new customers in 2008, the largest globally. In fact, in April 2008, India had already overtaken the US as the second largest wireless market. To put this growth into perspective, the country’s cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008, taking the telecom penetration to over 33 per cent. This means that one out of every three Indians has a telephone connection, and telecom companies expect this pace of growth to continue in 2009 as well. "We are extremely bullish that the growth will continue in 2009. This year, the number of additions will be in excess of 130 million," according to T.V. Ramachandran , Director General, Cellular Operators Association of India (COAI), an industry body that represents all Global System for Mobile communications (GSM) players in India. According to CRISIL Research estimates, eight infrastructure sectors, which include the telecom sector, are expected to draw more than US$ 345.28 billion investment in India by 2012. With the rural India growth story unfolding, the telecom sector is likely to see tremendous growth in India's rural and semi-urban areas in the years to come. By 2012, India is likely to have 200 million rural telecom connections at a penetration rate of 25 per cent. And according to a report tly released by Confederation of Indian Industry (CII) and Ernst & Young, by 2012, rural s will for over 60 per cent of the total telecom subscriber base. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million 1 3
mobile subscribers, ing for a tele-density of around 51 per cent by 2012. It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10.
GROWTH IN SEGMENTS According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. Fixed line capex is projected to be US$ 3.2 billion, and mobile capex is likely to touch US$ 9.4 billion. Further, according to a report by Gartner Inc., India is likely to remain the world's second largest wireless market after China in of mobile connections. According to recent data released by the COAI, Indian telecom operators added a total of 10.66 million wireless subscribers in December 2008. Further, the total wireless subscriber base stood at 346.89 million at the end of December 2008. The overall cellular services revenue in India is projected to grow at a CAGR of 18 per cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to 60.7 per cent from 19.8 per cent in 2007. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding a record 9.3 million new subscribers in January 2009, taking the total base to 267.5 million, according to the data released by COAI. However, this figure does not include the number of subscribers added by Reliance Telecom. In WiMax, India is slated to become the largest WiMAX market in the Asia-Pacific by 2013. A recent study sees India's WiMAX subscriber base hitting 14 million by 2013 and growing annually at nearly 130 per cent. And investments in WiMAX ventures are slated to top US$ 500 million in India, according to a report by US-based research and consulting firm, Strategy Analytics.
VALUE-ADDED SERVICES MARKET
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A report by market research firm IMRB stated that the mobile value-added services (MVAS) industry was valued at US$ 1.15 billion in June 2008, and is expected to grow rapidly at 70 per cent to touch US$ 1.96 billion by June 2009. Currently, MVAS in India s for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010. Mobile advertising, which is an important VAS segment, offers great potential to become an important revenue source. Marketers are increasingly using MVAS as a step ahead of SMS-based marketing to sell soaps and shampoos, banking, insurance products and also entertainment services, and rural markets are proving to be very receptive for such marketing. Further, Venture Capitalists like Canaan Partners, Draper Fisher Juvertson, Helion, and Nexus India are also innovating with services like mobile payment options, advertising, voice-based SMS and satellite video streaming. According to Venture Intelligence, there were nine deals worth US$ 41 million in 2007 in the mobile VAS space, and till August 2008, seven deals worth US$ 91 million had already been finalized. Presently, mobile VAS has a US$ 700 million market with a 20 per cent y-o-y growth, which is likely to touch US$ 3 billion by 2012.
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A DREAM COME TRUE The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life.
About Sh. Dhirubhai Ambani
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Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become India’s largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the
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initial investors in the Reliance stock, and creating one of the world’s largest shareholder families.
VISION “We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”
INDIA’S LEADING INTEGRATED TELECOM COMPANY Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading integrated telecommunication company with over 77 million customers. Our business encomes a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Our constant endeavor is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve. 1 8
Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. We endeavor to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society.
LOOKING BACK, LOOKING FORWARD Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses in of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest private sector information and Communications Company, with over 77 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies — Reliance Capital and Reliance Infrastructure — are widely acknowledged as the market leaders in their respective areas of operation.
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CHAIRMAN'S PROFILE Anil D. Ambani
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D. Ambani,48, is the chairman of all the listed companies of the Reliance ADA Group, namely Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), India’s largest private sector enterprise. Anil D Ambani ed Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and 2 0
bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997. He is a member of: •
Wharton Board of Overseers, The Wharton School, USA
•
Central Advisory Committee, Central Electricity Regulatory Commission
•
Board of Governors, Indian Institute of Management, Ahmedabad
•
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006. Awards and Achievements: •
Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards
•
Rated as one of ‘India’s Most ired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004
•
Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002
•
Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001
•
Selected by Asiaweek magazine for its list of ‘Leaders of the Millennium in Business and Finance’ and was introduced as the only ‘new hero’ in Business and Finance from India, June 1999.
CORPORATE GOVERNANCE
2 1
Organizations, like individuals, depend for their survival, sustenance and growth on the and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can… This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR philosophy of the Reliance – ADA Group. While we strongly believe that our primary obligation or duty as corporate entities is to our shareholders – we are just as mindful of the fact that this imperative does not exist in isolation; it is part of a much larger compact which we have with our entire body of stakeholders: From employees, customers and vendors to business partners, eco-system, local communities, and society at large. We evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social, economic and environmental costs and concerns. For us, being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of our business objectives and strategy. Because we believe that there is no contradiction between doing well and doing right. Indeed, doing right is a necessary condition for doing well.
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DEPARTMENTAL STRUCTURE
2 3
2 4
CHAPTER 3 RESEARCH METHODOLOGY
2 5
RESEARCH METHODOLOGY Methodology is an essential aspect of any project or research. It enables the researches look at the problem in a systematic, meaningful and orderly way. Methodology comprises the sources of data, selection of data, various designs and techniques used for analyzing the data. 1. Collection of data The primary data are collected through survey method. Survey method is undertaken to find the customer satisfaction and opinion. A survey was conducted among the people of Lucknow City by the aid of well structured questionnaire. The population for the study consists of people who are using cell phones in Lucknow City. The sampling unit for the study is 100, which includes the cell phone, fixed wireless phones and internet s in Lucknow City. The sampling size includes male and female s from different occupation, age. The sampling size was restricted to 100 because of the time constrains. Here, convenient sampling technique has been adopted for collecting the primary data.
2. Statistical tools For analyzing the data, statistical tables and percentages were used. 3. Limitations •
The study was restricted to only those clients who were related to Reliance
Communications’ products. •
The study was confined within specific regions of Lucknow city only. •
The sample size was limited so the results obtained from the study may not be
generalized for the whole population. •
The time period of the study was not sufficient to measure the consumers’
response effectively and reach to a more valid conclusion. •
Many of the respondents may not have given the correct information due to
personal bias. 2 6
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION
2 7
ANALYSIS AND INTERPRETATION Table: 1 Q. Age group of respondents
Age Group
Number of Respondents
Percentage
20-25
44
44%
25-35
32
32%
35-45
18
18%
Above 45
6
6%
Total
100
100%
above 45 15% 20-25 40%
35-45 16%
20-25 25-35 35-45 above 45
25-35 29%
Figure 1: Age group of the respondents
INTERPRETATION: •
44% of the respondents are between the age group 20 – 25.
•
32% of the respondents are between the age group 25 – 35.
•
18% of the respondents are between the age group 35 – 45.
•
6% of the respondents are above 45 years of age. 2
8
Table: 2 Q. Occupation of the respondents.
Occupation
Number of Respondents
Percentage
Students
34
34%
Business
52
52%
Govt. Services
10
10%
Professionals
4
4%
Total
100
100%
Professionals 4% Govt. Service 10%
Students 34%
Students Businessmen Govt. Service
Businessmen 52%
Professionals
Figure 2 : Occupation of the respondents
INTERPRETATION: •
34% of the respondents are Students.
•
52% of the respondents are Businessmen. 2
9
•
10% of the respondents are from Govt. Services.
•
4% of the respondents are Professionals.
Table: 3 Q. Phone/internet is being used for
Usage
No. of Respondents
Percentage
Business
54
54%
Official
10
10%
Personal
36
36%
Total
100
100%
P ers onal 36%
B us ines s B us ines s 54%
O ffic ial P ers onal
O ffic ial 10%
Figure 3 : Purpose of the use of phone/internet
INTERPRETATION: •
54% of the respondents are using Phone/internet for business purpose.
•
10% of the respondents are using Phone/internet for official purpose.
•
36% of the respondents are using Phone/internet for personal purpose.
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Table: 4 Q. Which of the reliance post paid products are customers aware of?
Products
No. of Respondents
RIM Post Paid FWP Broadband HSDC Total
100
92 60 74 47 100
Percentage 92% 60% 74% 47% 100%
RIM Post Paid, 92
90 80
Broadband, 74
70
FWP, 60
60
HSDC, 47
50
Series1
40 30 20 10 0 RIM Post Paid
FWP
Broadband
HSDC
Figure 4 : Awareness of the products
INTERPRETATION: •
92% of the respondents are aware of RIM Post Paid.
•
60% of the respondents are aware of FWP.
•
74% of the respondents are aware of Broadband.
•
47% of the respondents are aware of HSDC. 3
1
Table: 5 Q. How do you come to know about the products?
Medium
No. of Respondents
Television Print Sales Executives Friends and existing s Total
52 34 5 9 100
Friends and existing s 9% Sales Executives 5% Print 34%
Percentage 52% 34% 5% 9% 100%
Television Print Television 52%
Sales Executives Friends and existing s
Figure 5 : Medium through which customers came to know about the products
INTERPRETATION: •
52% of the respondents came to know about the products through television.
•
34% of the respondents came to know about the products through print.
•
5% of the respondents came to know about the products through sales executives.
•
9% of the respondents came to know about the products through friends and existing s. 3
2
Table: 6 Q. Which of the following products are you using?
Products
No. of Respondents
RIM Post Paid FWP Broadband HSDC Total
Percentage
13 41 20 26 100
HSDC 26%
13% 41% 20% 26% 100%
RIM Post Paid 13%
RIM Post Paid FWP
Broadband 20%
FWP 41%
Broadband HSDC
Figure 6 : No. of respondents using the products
INTERPRETATION: •
13% of the respondents were using RIM Post Paid.
•
41% of the respondents were using FWP.
•
20% of the respondents were using Broadband.
•
26% of the respondents were using HSDC.
Table: 7 3 3
Q. Are you satisfied with the service provided by the company?
Level
No. of Respondents
Fully Satisfied Partially Satisfied Not Satisfied Total
Percentage
38 51 11 100
Not Satisfied 11%
38% 51% 11% 100%
Fully Satisfied 38%
Fully Satisfied Partially Satisfied Not Satisfied
Partially Satisfied 51%
Figure 7 : Satisfaction level of the respondents
INTERPRETATION: •
38% of the respondents were fully satisfied with the services.
•
51% of the respondents were partially satisfied with the services.
•
11% of the respondents were not satisfied with the services.
Table: 8 3 4
Q. What are the major reasons for dissatisfaction?
Reasons
No. of Respondents
Percentage
Poor quality of signals/network Poor voice quality Higher cost Slow speed Billing errors Poor customer care service Total
Poor customer care service 22% Billing errors 19%
15 4 27 13 19 22 100
Poor quality of signals/network 15% Poor voice quality 4% Higher cost 27%
Slow speed 13%
15% 27% 13% 19% 22% 100%
Poor quality of signals/network Poor voice quality Higher cost Slow speed Billing errors Poor customer care service
Figure 8 : Major reasons for dissatisfaction
INTERPRETATION: •
15% of the respondents were dissatisfied by poor signals/network.
•
4% of the respondents were dissatisfied by poor voice quality.
•
27% of the respondents were dissatisfied by higher cost of services.
•
13% of the respondents were dissatisfied by slow speed.
•
19% of the respondents were dissatisfied by the billing errors.
•
22% of the respondents were dissatisfied by poor customer care service.
Table: 9 Q. Which of the following products does a sales executive tells you about when he 3 5
visits you?
Products
No. of Respondents
RIM Post Paid FWP Broadband HSDC Total
80
Percentage
73 59 41 46 100
73% 59% 41% 46% 100%
RIM Post Paid, 73
70 FWP, 59
60
HSDC, 46
50
Broadband, 41
40
Series1
30 20 10 0 RIM Post Paid
FWP
Broadband
HSDC
Figure 9 : Products told by sales executives to the respondents
INTERPRETATION: •
73% of the respondents were told about the RIM Post Paid by the visiting sales executives.
•
59% of the respondents were told about the FWP by the visiting sales executives.
•
41% of the respondents were told about the broadband by the visiting sales executives.
•
46% of the respondents were told about the HSDC by the visiting sales executives.
Table: 10 Q. What channel would you prefer to buy a telecom/internet service?
3 6
Channel
No. of respondents
Home delivery Customer care Online Franchisee & utility shops Total
Franchisee & Utility shops 16% Online 9%
Percentage
18 57 9 16 100
Home delivery 18%
18% 55% 9% 13% 100%
Home delivery Customer care Online
Customer care 57%
Franchisee & utility shops
Figure 10: Respondents’ preference of buying channels
INTERPRETATION: •
18% of the respondents would prefer to buy the service through home delivery.
•
57% of the respondents would prefer to buy the service through customer care.
•
9% of the respondents would prefer to buy the service online.
•
16% of the respondents would prefer to buy the service through franchisee & utility shops.
Table: 11 Q. Which of the following services you look before choosing the product?
Service
No. of respondents
Percentage 3
7
Price Connectivity Speed Value added service After sales service Total 90
84 46 51 23 62 100
84% 46% 51% 23% 62% 100%
Price, 84
80
After sales service, 62
70 60 Connectivity, 46
50
Speed, 51 Series1
40
Value added service, 23
30 20 10 0 Price
Connectivity
Speed
Value added service
After sales service
Figure 11: Features considered by the customers
INTERPRETATION: •
84% of the respondents consider price before choosing the product.
•
46% of the respondents consider connectivity before choosing the product.
•
51% of the respondents consider speed before choosing the product.
•
23% of the respondents consider value added services before choosing the product.
•
62% of the respondents consider after sales service before choosing the product.
Table: 12 Q. If price and mobility is not a concern, which of the following would a customer buy?
Product Land line phone Fixed wireless phone
No. of respondents 06 17
Percentage 6% 17% 3
8
Mobile based on GSM technology Mobile based on CDMA
77
77%
technology Total
0 100
0% 100%
Mobile based on CDMA technology, 0 Land line phone, 6 Fixed wireless phone, 17
Land line phone Fixed wireless phone Mobile based on GSM technology
Mobile based on GSM technology, 77
Mobile based on CDMA technology
Figure12: Customers' preferences
INTERPRETATION: •
6% of the respondents would buy land line phone, if price and mobility is not a concern.
•
17% of the respondents would buy fixed wireless phone, if price and mobility is not a concern.
•
77% of the respondents would buy mobile based on GSM technology, if price and mobility is not a concern.
•
0% of the respondents would buy mobile based on CDMA technology, if price and mobility is not a concern.
Table: 13 Q. Would a customer like to recommend reliance services to others?
Opinion Yes No Total
No. of respondents 63 37 100
Percentage 63% 37% 100% 3
9
no 37% yes no yes 63%
Figure 13: Opinion on recommending to others
INTERPRETATION: •
63% of the respondents would recommend reliance services to others.
•
37% of the respondents would not recommend reliance services to others.
Table: 14 (a) Q. Rate the following services on the basis of your satisfaction. 1) Network:
Satisfaction Level Excellent Very good Good
No. of respondents 11 18 21
Percentage 11% 18% 21% 4
0
Average Poor Total
32 18 100
32% 18% 100%
Excellent 11%
Poor 18%
Excellent
Very good 18%
Very good Good Average
Average 32%
Poor
Good 21%
Figure14-a: Satisfaction level for network
INTERPRETATION: •
11% of the respondents rated excellent for the network.
•
18% of the respondents rated very good for the network.
•
21% of the respondents rated good for the network.
•
32% of the respondents rated average for the network.
•
18% of the respondents rated poor for the network.
Table: 14 (b) 2) SMS Rates:
Satisfaction Level Excellent Very good Good Average Poor
No. of respondents 5 27 41 18 9
Percentage 5% 27% 41% 18% 9% 4
1
Total
100
Poor 9%
Average 18%
Excellent 5%
100%
Very good 27%
Excellent Very good Good Average Poor
Good 41%
Figure14-b: Satisfaction level for SMS rates
INTERPRETATION: •
5% of the respondents rated excellent for SMS rates.
•
27% of the respondents rated very good for SMS rates.
•
41% of the respondents rated good for SMS rates.
•
18% of the respondents rated average for SMS rates.
•
9% of the respondents rated poor for SMS rates.
Table: 14 (c) 3) New schemes and offers:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 6 20 27 34 13 100
Percentage 6% 20% 27% 34% 13% 100% 4
2
Poor 13%
Excellent 6%
Very good 20%
Excellent Very good Good
Average 34%
Average Poor
Good 27%
Figure 14-c: Satisfaction level for new schemes and offers
INTERPRETATION: •
6% of the respondents rated excellent for new schemes and offers.
•
20% of the respondents rated very good for new schemes and offers.
•
27% of the respondents rated good for new schemes and offers.
•
34% of the respondents rated average for new schemes and offers.
•
13% of the respondents rated poor for new schemes and offers.
Table: 14 (d) 4) Internet speed:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 4 7 21 8 6 46
Percentage 9% 15% 46% 17% 13% 100%
4 3
Poor 13%
Excellent 9%
Average 17%
Very good 15%
Excellent Very good Good Average Poor
Good 46%
Figure 14-d: Satisfaction level for internet speed
INTERPRETATION: •
9% of the respondents rated excellent for internet speed.
•
15% of the respondents rated very good for internet speed.
•
46% of the respondents rated good for internet speed.
•
17% of the respondents rated average for internet speed.
•
13% of the respondents rated poor for internet speed.
Table: 14 (e) 5) Cost:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 2 14 16 63 5 100
Percentage 2% 12% 16% 63% 5% 100%
4 4
Poor 5%
Excellent 2%
Very good 14%
Excellent
Good 16%
Very good Good Average
Average 63%
Poor
Figure14-e: Satisfaction level for cost
INTERPRETATION: •
2% of the respondents rated excellent for cost.
•
14% of the respondents rated very good for cost.
•
16% of the respondents rated good for cost.
•
63% of the respondents rated average for cost.
•
5% of the respondents rated poor for cost.
Table: 14 (f) 6) Customer care:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 0 14 23 31 32 100
Percentage 0% 14% 23% 31% 32% 100%
4 5
Poor 32%
Excellent 0%
Very good 14%
Excellent Very good Good
Good 23%
Average Poor
Average 31%
Figure14-f: Satisfaction level for customer care
INTERPRETATION: •
0% of the respondents rated excellent for customer care.
•
14% of the respondents rated very good for customer care.
•
23% of the respondents rated good for customer care.
•
31% of the respondents rated average for customer care.
•
32% of the respondents rated poor for customer care.
Table: 14 (g) 7) Recharge outlets:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 10 19 51 13 7 100
Percentage 10% 19% 51% 13% 7% 100%
4 6
Average 13%
Poor 7%
Excellent 10%
Excellent
Very good 19%
Very good Good Average Poor
Good 51%
Figure 14-g: satisfaction level for recharge outlets
INTERPRETATION: •
10% of the respondents rated excellent for recharge outlets.
•
19% of the respondents rated very good for recharge outlets.
•
51% of the respondents rated good for recharge outlets.
•
13% of the respondents rated average for recharge outlets.
•
7% of the respondents rated poor for recharge outlets.
Table: 14 (h) 8) Call Rates:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 7 11 59 33 0 100
Percentage 7% 11% 59% 33% 0% 100%
4 7
Average 30%
PoorExcellent Very good 0% 6% 10%
Excellent Very good Good Average Poor
Good 54%
Figure14-h: Satisfaction level for call rates
INTERPRETATION: •
7% of the respondents rated excellent for call rates.
•
11% of the respondents rated very good for call rates.
•
59% of the respondents rated good for call rates.
•
33% of the respondents rated average for call rates.
•
0% of the respondents rated poor for call rates.
Table: 14 (i) 9) Value added services:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 43 39 11 7 0 100
Percentage 43% 39% 11% 7% 0% 100%
4 8
Good 11%
Average Poor 0% 7% Excellent 43%
Excellent Very good Good Average
Very good 39%
Poor
Figure 14-i: Satisfaction level for value added services
INTERPRETATION: •
43% of the respondents rated excellent for value added services.
•
39% of the respondents rated very good for value added services.
•
11% of the respondents rated good for value added services.
•
7% of the respondents rated average for value added services.
•
0% of the respondents rated poor for value added services.
4 9
CHAPTER 5 FINDINGS AND RECOMMENDATIONS
FINDINGS AND RECOMMENDATIONS: •
The company should emphasize more on the spreading the awareness for their products because the level of awareness of their FWP, Broadband, HSDC is very low.
•
The sales executives should play a major part in spreading awareness because only 5% of the people came to know about the products through sales executives. Sales executives may also help the company generating prospects, hence sales for the company. 5
0
•
The RIM post paid has seen a major decline in its s because of the tough competition given by the prepaid services. Hence the company should now focus more on the internet services as there is a huge market for them to cover.
•
Around 2/3rd of the people are dissatisfied and majority of them reasons are poor customer care service, billing errors and higher cost. So the company should train their employees properly so that they have sufficient knowledge about the products and the bills should be made more transparent so that the customers could easily understand them.
•
The sales executives are not properly trained as they could not explain the schemes properly so they just try to tell to the customer about their RIM post paid service and not about other three services. This is the main reason for the lack in sales of their internet services.
•
A majority of the customers look for the price and after sales services before choosing the products. So the company should plan accordingly to increase their sales.
•
As seen from the survey results, more than 3/4th of the population prefer to buy a mobile based on GSM technology. So the newly launched GSM based mobile phones should be promoted accordingly.
•
Half of the population interviewed rated either average or poor for the network. So network can be improved by planting more towers in different parts of the city where the company does not have the signals.
•
More than 3/4th of the population does not like the new schemes and offers introduced by the company. So a proper survey should be conducted and more attractive and useful schemes must be introduced.
•
The cost of the products is too high for the customer to buy them. Moreover the major problem is that several packs are activated without any prior intimation and their price is included in the bills later, which is the major reason for dissatisfaction.
•
Around 2/3rd of the people gave average or poor ratings to the customer care and said that their complaints are either not heard or they are dealt very late.
•
The company should emphasize more on reducing the call rates and introducing attractive value added services which would help them improve their sales. 5
1
CONCLUSION: As there is a healthy competition given by the existing players in the industry, lack or degradation in any of the services may affect the company badly. With the excellent rural awareness and rural market share in telecom services, the company should also try to boost up their urban market share. This could only be done with the help of a team of properly trained and dedicated employees. Moreover there is a huge market for the internet sector which can be captured by giving the customer, the services according to their needs.
5 2
BIBLIOGRAPHY •
http://www.indiaonestop.com/fdi-telecom.htm
•
http://www.trai.gov.in/Default.asp
•
http://www.rcom.co.in/webapp/Communications/rcom/index.jsp
•
http://trak.in/Tags/Business/category/telecommunication/
5 3
ANNEXURE QUESTIONNAIRE PERSONAL DETAILS 1) 2) 3) 4) 5) 6)
Name: Age: Gender: Address: Number: Phone/Internet is used for following purpose: a) Business b) Official c) Personal 5
4
Q1. 1). 2). 3). 4).
Which of the following Reliance post paid products are you aware of? Reliance India Mobile (RIM Post Paid) Fixed Wireless Phone (FWP) Broadband High Speed Data Card (HSDC)
Q2. 1). 2). 3). 4). 5).
How did you come to know about the products? Television Print Sales Executives Friends and Existing s Other (Please Specify) ………………………………………
Q3. 1). 2). 3). 4).
Which of the following products are you using? Reliance India Mobile (RIM Post Paid) Fixed Wireless Phone (FWP) Broadband High Speed Data Card (HSDC)
Q4. 1). 2). 3).
Are you satisfied with the service provided by the subscriber? Fully Satisfied Partially Satisfied Not Satisfied
Q5. If your response to the above is partially satisfied or not satisfied, then what are the reasons for your dissatisfaction? 1). Poor Quality of Signals/Network 2). Poor Voice Quality 3). Higher Cost 4). Slow Speed 5). Billing Errors 6). Poor Customer Care Service 7). Any Other (Please Specify) ………………………………… Q6. When a sales executive comes to you, which of the following products does he frequently tells about? 1). Reliance India Mobile (RIM Post Paid) 2). Fixed Wireless Phone (FWP) 3). Broadband 4). High Speed Data Card (HSDC) Q7. 1). 2). 3).
What channel would you prefer to buy a telecom/internet service? Home Delivery Customer Care Online 5
5
4). Franchisee & Utility Shops Q8. 1). 2). 3). 4). 5). 6).
Which of the following service you look before choosing the product? Price Connectivity Speed Value Added Services After Sales Service Any Other (Please Specify) ……………………………..
Q9. If Price and mobility is not a concern, which of the following would you prefer to buy? 1). Land Line Phone 2). Fixed Wireless Phone 3). Mobile based on GSM Technology 4). Mobile based on CDMA Technology Q10. Would you like to recommend reliance services to others? 1). Yes 2). No 11). Rate the following services on the basis of your satisfaction. Services Network
Excellent
Very Good
Good
Average
Poor
SMS Rates New Schemes & Offers Internet Speed Cost Customer Care Recharge Outlets Call Rates Value Added 5 6
Services 12). Suggestions (If Any): ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… …………………………………………………………………………………………
5 7
1
INTRODUCTION World telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom connections. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry. The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc. Economical aspect of telecommunication industry: World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet. Present market scenario of world telecom industry: Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest.
GLOBAL SCENARIO Until the 1980s the world telecommunications systems had a simply istrative structure. The United States telephone service was supplied by a regulated monopoly, American Telephone and Telegraph (AT&T). Telegraph service was provided mainly by the Western Union Corporation. In almost all other countries both services were the monopolies of government agencies known as PTTs (for Post, Telephone, and 2
Telegraph). In the United States beginning in 1983, AT&T agreed in a court settlement to divest itself of the local operating companies that provided basic telephonic service. They remained regulated local monopolies, grouped together into eight regional companies. AT&T now offers long distance service in competition with half a dozen major and many minor competitors while retaining ownership of a subsidiary that produces telephonic equipment, computers and other electronic devices. During the same period Great Britain’s national telephone company was sold to private investors as was Japan’s NTT telephone monopoly. For telegraphy and data transmission, Western Union was ed by other major companies, while many multinational firms formed their own telecommunications services that link offices scattered throughout the world. New technology also brought continuing changes in the providers of telecommunication. Private companies such as Comsat in the United States were organized to provide satellite communication links within the country. Around the world we are witnessing remarkable changes to the telecoms environment. After years of debate, structural separation is now taking place in many parts of the world including Hong Kong, New Zealand, Singapore and some European markets. Structural separation or at least full-blown operational separation is required to advance the entire industry and to create new business opportunities and innovations which will benefit our society, our economy and ultimately our industry. The focus is also shifting away from broadband to what it can actually achieve. Next Generation Telecommunications better describes this new environment and is essential for the emerging digital economy. Important services that depend on NGT include tele health, e-education, e-business, digital media, e-government and environmental applications such as smart utility meters. In order to meet this burgeoning consumer demand for NGT applications, we are seeing increasing investment in All-IP Next Generation Networks and fiber networks. A proper inventory of national infrastructure assets is required if we want to establish an efficient and economically viable national broadband structure for these services. In the developing markets, next generations telecoms will take the form of wireless NGNs (ie, LTE/WiMAX). 3
These are some of the elements of the broader ICT revolution that is unfolding before our very eyes. We are right in the midst of the transition from old communications structures (mainly one-way streets) to new structures that are fully-interactive and video-based. One of the drivers behind the industry changes are the declining revenues experienced by the telcos in their traditional markets. Over the past 10 years or so, fixed-line operators have been affected by deregulation, a severe industry downturn, declining prices and major inroads by mobile services. In addition, people are drifting to other forms of communication, such as email, online chat, and mobile text messaging instead of the traditional phone. This has also led to an increased need for bandwidth, which in turn has revived the submarine cable sector. In recent times there have been many cable build-out announcements around the world, and some major systems are again being constructed. Over 25 systems are expected to be built over the next two to three years and network upgrades are also on the agenda for some existing systems. It is clear that the mobile industry is also undergoing profound changes. The saturated developed markets are forcing the industry to find new revenue streams and we are now seeing other organizations such as media companies, content providers, Internet media companies and private equity companies becoming involved in this market. For the time being however, voice will remain the killer application for mobile with some data services included as services and niche market services. 4G (ie, WiMAX/LTE) is the real solution for mobile data and by 2015 it is expected that the majority of mobile revenues will come from data. With the Internet economy, digital media and other telecommunications activities becoming further established, the need for modern and efficient infrastructure is becoming more critical.
4
INDIAN OVERVIEW Today the Indian telecommunications network with over 375 Million subscribers is second largest network in the world after China. India is also the fastest growing telecom market in the world with an addition of 9- 10 million monthly subscribers. The teledensity of the Country has increased from 18% in 2006 to 33% in December 2008, showing a stupendous annual growth of about 50%, one of the highest in any sector of the Indian Economy. The Department of Telecommunications has been able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the digital divide by extending connectivity to the unconnected areas. India has emerged as a major base for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its dream of providing affordable and effective communication facilities to Indian citizens. As a result common man today has access to this most needed facility. The reform measures coupled with the proactive policies of the Department of Telecommunications have resulted in an unprecedented growth of the telecom sector. The thrust areas presently are: 1. Building a modern and efficient infrastructure ensuring greater competitive environment. 2. With equal opportunities and level playing field for all stakeholders. 3. Strengthening research and development for manufacturing, value added services. 4. Efficient and transparent spectrum management 5. To accelerate broadband penetration 6. Universal service to all uncovered areas including rural areas. 7. Enabling Indian telecom companies to become global players. Recent things to watch in Indian telecom sector are: 1. 3G and BWA auctions 2. MVNO 3. Mobile Number Portability 4. New Policy for Value Added Services 5. Market dynamics once the recently licensed new telecom operators start rolling out 6. Services. 7. Increased thrust on telecom equipment manufacturing and exports. 5
8. Reduction in Mobile Termination Charges as the cost per line has substantially reduced 9. Due to technological advancement and increase in traffic. India's telecom sector has shown massive upsurge in the recent years in all respects of industrial growth. From the status of state monopoly with very limited growth, it has grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the people of India. This changing phase was possible with the economic development that followed the process of structuring the economy in the capitalistic pattern. Removal of restrictions on foreign capital investment and industrial de-licensing resulted in fast growth of this sector. At present the country's telecom industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone companies were present, fixed landlines were popular in most parts of the country, with government of India setting up the Telecom Regulatory Authority of India, and measures to allow new players country, the featured products in the segment came in to prominence. Today the industry offers services such as fixed landlines, WLL, GSM mobiles, CDMA and IP services to customers. Increasing competition among players allowed the prices drastically down by making the mobile facility accessible to the urban middle class population, and to a great extend in the rural areas. Even for small shopkeepers and factory workers a phone connection is not an unreachable luxury. Major players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchison Essar, BPL, Tata, Idea, etc. With the growth of telecom services, telecom equipment and accessories manufacturing has also grown in a big way. Indian Telecom sector, like any other industrial 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 make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers.
6
SCOPE OF THE STUDY The scope of the study is limited to the post paid services offered by Reliance Communications. Study objective is to examine the various factors which play their part in customer buying behavior and the major dissatisfaction areas for the customers. The study considered the urban area of Lucknow city. The sample under consideration consisted of the existing customers of Reliance Communications.
7
SIGNIFICANCE OF THE STUDY The project I chose was a study on customer awareness and satisfaction for reliance post paid products. The title is very much significant considering the present global scenario. The awareness level is the basic requirement for a company to sell its products in the market because if the customers are not aware of the products, there would be no sale. Along with the awareness, the companies have to keep a regular check on the satisfaction level of its customers to retain them. The survey helps to find out the loopholes is the area of service being offered by the company. Identifying those areas would help the company to minimize them and then they can go for increasing customers.
8
OBJECTIVES OF THE STUDY The following are the objectives of the study. 1. To study the problems faced by the respondents with Reliance Postpaid service. 2. To study customer satisfaction level on Reliance services. 3. To find out consumer preferences. 4. To analyze the level of awareness about Reliance products. 5. To make suggestions in the light of the findings of the study.
9
LITERATURE REVIEWED: •
Cygnus Business Consulting & Research Pvt. Ltd. (2008), in its “Performance
Analysis of Companies (April-June 2008)” has analyzed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. With almost 5-6million subscribers are being added every month, and the country is witnessing wild momentum in the telecom industry, the Indian telecom industry is expected to maintain the same growth trajectory. •
Internet service providers in India, Rao (2000), provide a broad view of the
role of an Internet service provider (ISP) in a nascent market of India. Building local content,
foreknowledge
of
new
Internet
technologies,
connecting
issues,
competitiveness, etc. would help in their sustainability. •
The role of technology in the emergence of the information society in India,
Singh (2005), describes the role that information and communication technologies are playing for Indian society to educate them formally or informally which is ultimately helping India to emerge as an information society. •
T.H. Chowdary (1999) discusses how Telecom reform, or demonopolization, in
India has been bungled. Shaped by legislation dating back to the colonial era and post Second World War socialist policies, by the mid-1980s India realized that its poor telecommunications infrastructure and service needed reform. At the heart of the problem lay the monopoly by the government’s Department of Telecommunications (DOT) in equipment, networks and services. The National Telecom Policy 1994 spelt out decent objectives for reform but tragically its implementation was entrusted to the DOT. This created an untenable situation in which the DOT became policymaker, licenser, regulator, operator and also arbitrator in disputes between itself and licensed competitors. He discusses the question: ‘Why did India get it so wrong? and What India should do now? •
Thomas
(2007),
in
his
article
describes
the
contribution
made
by
telecommunications in India by the state and civil society to public service, this article aims to identify the state’s initial reluctance to recognize telecommunications provision as a basic need as against the robust tradition of public service aligned to 1 0
the postal services
and
finds
hope in
the renewal
of public service
telecommunications via the Right to Information movement. The article follows the methodology of studying the history of telecommunications approach that is conversant with the political economy tradition. It uses archival sources, personal correspondence, and published information as its research material. The findings of the paper suggests that public service in telecommunication is a relatively ‘‘new’’ concept in the annals of Indian telecommunications and that a deregulated environment along with the Right to Information movement holds significant hope for making public service telecommunications a real alternative. The article provides a reflexive, critical of public service telecommunications in India and suggests that it can be strengthened by learning gained from the continual renewal of public service ideals and action by the postal services and a people-based demand model linked to the Right to Information Movement. All studies done by the researcher suggests that the right to information movement has contributed to the revitalization of participatory democracy in India and to a strengthening of public service telecommunications.
1 1
CHAPTER 2 INDUSTRY PROFILE
1 2
INDUSTRY PROFILE The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010. India added 113.26 million new customers in 2008, the largest globally. In fact, in April 2008, India had already overtaken the US as the second largest wireless market. To put this growth into perspective, the country’s cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008, taking the telecom penetration to over 33 per cent. This means that one out of every three Indians has a telephone connection, and telecom companies expect this pace of growth to continue in 2009 as well. "We are extremely bullish that the growth will continue in 2009. This year, the number of additions will be in excess of 130 million," according to T.V. Ramachandran , Director General, Cellular Operators Association of India (COAI), an industry body that represents all Global System for Mobile communications (GSM) players in India. According to CRISIL Research estimates, eight infrastructure sectors, which include the telecom sector, are expected to draw more than US$ 345.28 billion investment in India by 2012. With the rural India growth story unfolding, the telecom sector is likely to see tremendous growth in India's rural and semi-urban areas in the years to come. By 2012, India is likely to have 200 million rural telecom connections at a penetration rate of 25 per cent. And according to a report tly released by Confederation of Indian Industry (CII) and Ernst & Young, by 2012, rural s will for over 60 per cent of the total telecom subscriber base. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million 1 3
mobile subscribers, ing for a tele-density of around 51 per cent by 2012. It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10.
GROWTH IN SEGMENTS According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. Fixed line capex is projected to be US$ 3.2 billion, and mobile capex is likely to touch US$ 9.4 billion. Further, according to a report by Gartner Inc., India is likely to remain the world's second largest wireless market after China in of mobile connections. According to recent data released by the COAI, Indian telecom operators added a total of 10.66 million wireless subscribers in December 2008. Further, the total wireless subscriber base stood at 346.89 million at the end of December 2008. The overall cellular services revenue in India is projected to grow at a CAGR of 18 per cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to 60.7 per cent from 19.8 per cent in 2007. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding a record 9.3 million new subscribers in January 2009, taking the total base to 267.5 million, according to the data released by COAI. However, this figure does not include the number of subscribers added by Reliance Telecom. In WiMax, India is slated to become the largest WiMAX market in the Asia-Pacific by 2013. A recent study sees India's WiMAX subscriber base hitting 14 million by 2013 and growing annually at nearly 130 per cent. And investments in WiMAX ventures are slated to top US$ 500 million in India, according to a report by US-based research and consulting firm, Strategy Analytics.
VALUE-ADDED SERVICES MARKET
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A report by market research firm IMRB stated that the mobile value-added services (MVAS) industry was valued at US$ 1.15 billion in June 2008, and is expected to grow rapidly at 70 per cent to touch US$ 1.96 billion by June 2009. Currently, MVAS in India s for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010. Mobile advertising, which is an important VAS segment, offers great potential to become an important revenue source. Marketers are increasingly using MVAS as a step ahead of SMS-based marketing to sell soaps and shampoos, banking, insurance products and also entertainment services, and rural markets are proving to be very receptive for such marketing. Further, Venture Capitalists like Canaan Partners, Draper Fisher Juvertson, Helion, and Nexus India are also innovating with services like mobile payment options, advertising, voice-based SMS and satellite video streaming. According to Venture Intelligence, there were nine deals worth US$ 41 million in 2007 in the mobile VAS space, and till August 2008, seven deals worth US$ 91 million had already been finalized. Presently, mobile VAS has a US$ 700 million market with a 20 per cent y-o-y growth, which is likely to touch US$ 3 billion by 2012.
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A DREAM COME TRUE The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life.
About Sh. Dhirubhai Ambani
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Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become India’s largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the
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initial investors in the Reliance stock, and creating one of the world’s largest shareholder families.
VISION “We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”
INDIA’S LEADING INTEGRATED TELECOM COMPANY Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading integrated telecommunication company with over 77 million customers. Our business encomes a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Our constant endeavor is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve. 1 8
Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. We endeavor to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society.
LOOKING BACK, LOOKING FORWARD Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses in of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest private sector information and Communications Company, with over 77 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies — Reliance Capital and Reliance Infrastructure — are widely acknowledged as the market leaders in their respective areas of operation.
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CHAIRMAN'S PROFILE Anil D. Ambani
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D. Ambani,48, is the chairman of all the listed companies of the Reliance ADA Group, namely Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), India’s largest private sector enterprise. Anil D Ambani ed Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and 2 0
bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997. He is a member of: •
Wharton Board of Overseers, The Wharton School, USA
•
Central Advisory Committee, Central Electricity Regulatory Commission
•
Board of Governors, Indian Institute of Management, Ahmedabad
•
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006. Awards and Achievements: •
Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards
•
Rated as one of ‘India’s Most ired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004
•
Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002
•
Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001
•
Selected by Asiaweek magazine for its list of ‘Leaders of the Millennium in Business and Finance’ and was introduced as the only ‘new hero’ in Business and Finance from India, June 1999.
CORPORATE GOVERNANCE
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Organizations, like individuals, depend for their survival, sustenance and growth on the and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can… This ethical standpoint, derived from the vision of our founder, lies at the heart of the CSR philosophy of the Reliance – ADA Group. While we strongly believe that our primary obligation or duty as corporate entities is to our shareholders – we are just as mindful of the fact that this imperative does not exist in isolation; it is part of a much larger compact which we have with our entire body of stakeholders: From employees, customers and vendors to business partners, eco-system, local communities, and society at large. We evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social, economic and environmental costs and concerns. For us, being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of our business objectives and strategy. Because we believe that there is no contradiction between doing well and doing right. Indeed, doing right is a necessary condition for doing well.
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DEPARTMENTAL STRUCTURE
2 3
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CHAPTER 3 RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY Methodology is an essential aspect of any project or research. It enables the researches look at the problem in a systematic, meaningful and orderly way. Methodology comprises the sources of data, selection of data, various designs and techniques used for analyzing the data. 1. Collection of data The primary data are collected through survey method. Survey method is undertaken to find the customer satisfaction and opinion. A survey was conducted among the people of Lucknow City by the aid of well structured questionnaire. The population for the study consists of people who are using cell phones in Lucknow City. The sampling unit for the study is 100, which includes the cell phone, fixed wireless phones and internet s in Lucknow City. The sampling size includes male and female s from different occupation, age. The sampling size was restricted to 100 because of the time constrains. Here, convenient sampling technique has been adopted for collecting the primary data.
2. Statistical tools For analyzing the data, statistical tables and percentages were used. 3. Limitations •
The study was restricted to only those clients who were related to Reliance
Communications’ products. •
The study was confined within specific regions of Lucknow city only. •
The sample size was limited so the results obtained from the study may not be
generalized for the whole population. •
The time period of the study was not sufficient to measure the consumers’
response effectively and reach to a more valid conclusion. •
Many of the respondents may not have given the correct information due to
personal bias. 2 6
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION
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ANALYSIS AND INTERPRETATION Table: 1 Q. Age group of respondents
Age Group
Number of Respondents
Percentage
20-25
44
44%
25-35
32
32%
35-45
18
18%
Above 45
6
6%
Total
100
100%
above 45 15% 20-25 40%
35-45 16%
20-25 25-35 35-45 above 45
25-35 29%
Figure 1: Age group of the respondents
INTERPRETATION: •
44% of the respondents are between the age group 20 – 25.
•
32% of the respondents are between the age group 25 – 35.
•
18% of the respondents are between the age group 35 – 45.
•
6% of the respondents are above 45 years of age. 2
8
Table: 2 Q. Occupation of the respondents.
Occupation
Number of Respondents
Percentage
Students
34
34%
Business
52
52%
Govt. Services
10
10%
Professionals
4
4%
Total
100
100%
Professionals 4% Govt. Service 10%
Students 34%
Students Businessmen Govt. Service
Businessmen 52%
Professionals
Figure 2 : Occupation of the respondents
INTERPRETATION: •
34% of the respondents are Students.
•
52% of the respondents are Businessmen. 2
9
•
10% of the respondents are from Govt. Services.
•
4% of the respondents are Professionals.
Table: 3 Q. Phone/internet is being used for
Usage
No. of Respondents
Percentage
Business
54
54%
Official
10
10%
Personal
36
36%
Total
100
100%
P ers onal 36%
B us ines s B us ines s 54%
O ffic ial P ers onal
O ffic ial 10%
Figure 3 : Purpose of the use of phone/internet
INTERPRETATION: •
54% of the respondents are using Phone/internet for business purpose.
•
10% of the respondents are using Phone/internet for official purpose.
•
36% of the respondents are using Phone/internet for personal purpose.
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Table: 4 Q. Which of the reliance post paid products are customers aware of?
Products
No. of Respondents
RIM Post Paid FWP Broadband HSDC Total
100
92 60 74 47 100
Percentage 92% 60% 74% 47% 100%
RIM Post Paid, 92
90 80
Broadband, 74
70
FWP, 60
60
HSDC, 47
50
Series1
40 30 20 10 0 RIM Post Paid
FWP
Broadband
HSDC
Figure 4 : Awareness of the products
INTERPRETATION: •
92% of the respondents are aware of RIM Post Paid.
•
60% of the respondents are aware of FWP.
•
74% of the respondents are aware of Broadband.
•
47% of the respondents are aware of HSDC. 3
1
Table: 5 Q. How do you come to know about the products?
Medium
No. of Respondents
Television Print Sales Executives Friends and existing s Total
52 34 5 9 100
Friends and existing s 9% Sales Executives 5% Print 34%
Percentage 52% 34% 5% 9% 100%
Television Print Television 52%
Sales Executives Friends and existing s
Figure 5 : Medium through which customers came to know about the products
INTERPRETATION: •
52% of the respondents came to know about the products through television.
•
34% of the respondents came to know about the products through print.
•
5% of the respondents came to know about the products through sales executives.
•
9% of the respondents came to know about the products through friends and existing s. 3
2
Table: 6 Q. Which of the following products are you using?
Products
No. of Respondents
RIM Post Paid FWP Broadband HSDC Total
Percentage
13 41 20 26 100
HSDC 26%
13% 41% 20% 26% 100%
RIM Post Paid 13%
RIM Post Paid FWP
Broadband 20%
FWP 41%
Broadband HSDC
Figure 6 : No. of respondents using the products
INTERPRETATION: •
13% of the respondents were using RIM Post Paid.
•
41% of the respondents were using FWP.
•
20% of the respondents were using Broadband.
•
26% of the respondents were using HSDC.
Table: 7 3 3
Q. Are you satisfied with the service provided by the company?
Level
No. of Respondents
Fully Satisfied Partially Satisfied Not Satisfied Total
Percentage
38 51 11 100
Not Satisfied 11%
38% 51% 11% 100%
Fully Satisfied 38%
Fully Satisfied Partially Satisfied Not Satisfied
Partially Satisfied 51%
Figure 7 : Satisfaction level of the respondents
INTERPRETATION: •
38% of the respondents were fully satisfied with the services.
•
51% of the respondents were partially satisfied with the services.
•
11% of the respondents were not satisfied with the services.
Table: 8 3 4
Q. What are the major reasons for dissatisfaction?
Reasons
No. of Respondents
Percentage
Poor quality of signals/network Poor voice quality Higher cost Slow speed Billing errors Poor customer care service Total
Poor customer care service 22% Billing errors 19%
15 4 27 13 19 22 100
Poor quality of signals/network 15% Poor voice quality 4% Higher cost 27%
Slow speed 13%
15% 27% 13% 19% 22% 100%
Poor quality of signals/network Poor voice quality Higher cost Slow speed Billing errors Poor customer care service
Figure 8 : Major reasons for dissatisfaction
INTERPRETATION: •
15% of the respondents were dissatisfied by poor signals/network.
•
4% of the respondents were dissatisfied by poor voice quality.
•
27% of the respondents were dissatisfied by higher cost of services.
•
13% of the respondents were dissatisfied by slow speed.
•
19% of the respondents were dissatisfied by the billing errors.
•
22% of the respondents were dissatisfied by poor customer care service.
Table: 9 Q. Which of the following products does a sales executive tells you about when he 3 5
visits you?
Products
No. of Respondents
RIM Post Paid FWP Broadband HSDC Total
80
Percentage
73 59 41 46 100
73% 59% 41% 46% 100%
RIM Post Paid, 73
70 FWP, 59
60
HSDC, 46
50
Broadband, 41
40
Series1
30 20 10 0 RIM Post Paid
FWP
Broadband
HSDC
Figure 9 : Products told by sales executives to the respondents
INTERPRETATION: •
73% of the respondents were told about the RIM Post Paid by the visiting sales executives.
•
59% of the respondents were told about the FWP by the visiting sales executives.
•
41% of the respondents were told about the broadband by the visiting sales executives.
•
46% of the respondents were told about the HSDC by the visiting sales executives.
Table: 10 Q. What channel would you prefer to buy a telecom/internet service?
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Channel
No. of respondents
Home delivery Customer care Online Franchisee & utility shops Total
Franchisee & Utility shops 16% Online 9%
Percentage
18 57 9 16 100
Home delivery 18%
18% 55% 9% 13% 100%
Home delivery Customer care Online
Customer care 57%
Franchisee & utility shops
Figure 10: Respondents’ preference of buying channels
INTERPRETATION: •
18% of the respondents would prefer to buy the service through home delivery.
•
57% of the respondents would prefer to buy the service through customer care.
•
9% of the respondents would prefer to buy the service online.
•
16% of the respondents would prefer to buy the service through franchisee & utility shops.
Table: 11 Q. Which of the following services you look before choosing the product?
Service
No. of respondents
Percentage 3
7
Price Connectivity Speed Value added service After sales service Total 90
84 46 51 23 62 100
84% 46% 51% 23% 62% 100%
Price, 84
80
After sales service, 62
70 60 Connectivity, 46
50
Speed, 51 Series1
40
Value added service, 23
30 20 10 0 Price
Connectivity
Speed
Value added service
After sales service
Figure 11: Features considered by the customers
INTERPRETATION: •
84% of the respondents consider price before choosing the product.
•
46% of the respondents consider connectivity before choosing the product.
•
51% of the respondents consider speed before choosing the product.
•
23% of the respondents consider value added services before choosing the product.
•
62% of the respondents consider after sales service before choosing the product.
Table: 12 Q. If price and mobility is not a concern, which of the following would a customer buy?
Product Land line phone Fixed wireless phone
No. of respondents 06 17
Percentage 6% 17% 3
8
Mobile based on GSM technology Mobile based on CDMA
77
77%
technology Total
0 100
0% 100%
Mobile based on CDMA technology, 0 Land line phone, 6 Fixed wireless phone, 17
Land line phone Fixed wireless phone Mobile based on GSM technology
Mobile based on GSM technology, 77
Mobile based on CDMA technology
Figure12: Customers' preferences
INTERPRETATION: •
6% of the respondents would buy land line phone, if price and mobility is not a concern.
•
17% of the respondents would buy fixed wireless phone, if price and mobility is not a concern.
•
77% of the respondents would buy mobile based on GSM technology, if price and mobility is not a concern.
•
0% of the respondents would buy mobile based on CDMA technology, if price and mobility is not a concern.
Table: 13 Q. Would a customer like to recommend reliance services to others?
Opinion Yes No Total
No. of respondents 63 37 100
Percentage 63% 37% 100% 3
9
no 37% yes no yes 63%
Figure 13: Opinion on recommending to others
INTERPRETATION: •
63% of the respondents would recommend reliance services to others.
•
37% of the respondents would not recommend reliance services to others.
Table: 14 (a) Q. Rate the following services on the basis of your satisfaction. 1) Network:
Satisfaction Level Excellent Very good Good
No. of respondents 11 18 21
Percentage 11% 18% 21% 4
0
Average Poor Total
32 18 100
32% 18% 100%
Excellent 11%
Poor 18%
Excellent
Very good 18%
Very good Good Average
Average 32%
Poor
Good 21%
Figure14-a: Satisfaction level for network
INTERPRETATION: •
11% of the respondents rated excellent for the network.
•
18% of the respondents rated very good for the network.
•
21% of the respondents rated good for the network.
•
32% of the respondents rated average for the network.
•
18% of the respondents rated poor for the network.
Table: 14 (b) 2) SMS Rates:
Satisfaction Level Excellent Very good Good Average Poor
No. of respondents 5 27 41 18 9
Percentage 5% 27% 41% 18% 9% 4
1
Total
100
Poor 9%
Average 18%
Excellent 5%
100%
Very good 27%
Excellent Very good Good Average Poor
Good 41%
Figure14-b: Satisfaction level for SMS rates
INTERPRETATION: •
5% of the respondents rated excellent for SMS rates.
•
27% of the respondents rated very good for SMS rates.
•
41% of the respondents rated good for SMS rates.
•
18% of the respondents rated average for SMS rates.
•
9% of the respondents rated poor for SMS rates.
Table: 14 (c) 3) New schemes and offers:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 6 20 27 34 13 100
Percentage 6% 20% 27% 34% 13% 100% 4
2
Poor 13%
Excellent 6%
Very good 20%
Excellent Very good Good
Average 34%
Average Poor
Good 27%
Figure 14-c: Satisfaction level for new schemes and offers
INTERPRETATION: •
6% of the respondents rated excellent for new schemes and offers.
•
20% of the respondents rated very good for new schemes and offers.
•
27% of the respondents rated good for new schemes and offers.
•
34% of the respondents rated average for new schemes and offers.
•
13% of the respondents rated poor for new schemes and offers.
Table: 14 (d) 4) Internet speed:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 4 7 21 8 6 46
Percentage 9% 15% 46% 17% 13% 100%
4 3
Poor 13%
Excellent 9%
Average 17%
Very good 15%
Excellent Very good Good Average Poor
Good 46%
Figure 14-d: Satisfaction level for internet speed
INTERPRETATION: •
9% of the respondents rated excellent for internet speed.
•
15% of the respondents rated very good for internet speed.
•
46% of the respondents rated good for internet speed.
•
17% of the respondents rated average for internet speed.
•
13% of the respondents rated poor for internet speed.
Table: 14 (e) 5) Cost:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 2 14 16 63 5 100
Percentage 2% 12% 16% 63% 5% 100%
4 4
Poor 5%
Excellent 2%
Very good 14%
Excellent
Good 16%
Very good Good Average
Average 63%
Poor
Figure14-e: Satisfaction level for cost
INTERPRETATION: •
2% of the respondents rated excellent for cost.
•
14% of the respondents rated very good for cost.
•
16% of the respondents rated good for cost.
•
63% of the respondents rated average for cost.
•
5% of the respondents rated poor for cost.
Table: 14 (f) 6) Customer care:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 0 14 23 31 32 100
Percentage 0% 14% 23% 31% 32% 100%
4 5
Poor 32%
Excellent 0%
Very good 14%
Excellent Very good Good
Good 23%
Average Poor
Average 31%
Figure14-f: Satisfaction level for customer care
INTERPRETATION: •
0% of the respondents rated excellent for customer care.
•
14% of the respondents rated very good for customer care.
•
23% of the respondents rated good for customer care.
•
31% of the respondents rated average for customer care.
•
32% of the respondents rated poor for customer care.
Table: 14 (g) 7) Recharge outlets:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 10 19 51 13 7 100
Percentage 10% 19% 51% 13% 7% 100%
4 6
Average 13%
Poor 7%
Excellent 10%
Excellent
Very good 19%
Very good Good Average Poor
Good 51%
Figure 14-g: satisfaction level for recharge outlets
INTERPRETATION: •
10% of the respondents rated excellent for recharge outlets.
•
19% of the respondents rated very good for recharge outlets.
•
51% of the respondents rated good for recharge outlets.
•
13% of the respondents rated average for recharge outlets.
•
7% of the respondents rated poor for recharge outlets.
Table: 14 (h) 8) Call Rates:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 7 11 59 33 0 100
Percentage 7% 11% 59% 33% 0% 100%
4 7
Average 30%
PoorExcellent Very good 0% 6% 10%
Excellent Very good Good Average Poor
Good 54%
Figure14-h: Satisfaction level for call rates
INTERPRETATION: •
7% of the respondents rated excellent for call rates.
•
11% of the respondents rated very good for call rates.
•
59% of the respondents rated good for call rates.
•
33% of the respondents rated average for call rates.
•
0% of the respondents rated poor for call rates.
Table: 14 (i) 9) Value added services:
Satisfaction Level Excellent Very good Good Average Poor Total
No. of respondents 43 39 11 7 0 100
Percentage 43% 39% 11% 7% 0% 100%
4 8
Good 11%
Average Poor 0% 7% Excellent 43%
Excellent Very good Good Average
Very good 39%
Poor
Figure 14-i: Satisfaction level for value added services
INTERPRETATION: •
43% of the respondents rated excellent for value added services.
•
39% of the respondents rated very good for value added services.
•
11% of the respondents rated good for value added services.
•
7% of the respondents rated average for value added services.
•
0% of the respondents rated poor for value added services.
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CHAPTER 5 FINDINGS AND RECOMMENDATIONS
FINDINGS AND RECOMMENDATIONS: •
The company should emphasize more on the spreading the awareness for their products because the level of awareness of their FWP, Broadband, HSDC is very low.
•
The sales executives should play a major part in spreading awareness because only 5% of the people came to know about the products through sales executives. Sales executives may also help the company generating prospects, hence sales for the company. 5
0
•
The RIM post paid has seen a major decline in its s because of the tough competition given by the prepaid services. Hence the company should now focus more on the internet services as there is a huge market for them to cover.
•
Around 2/3rd of the people are dissatisfied and majority of them reasons are poor customer care service, billing errors and higher cost. So the company should train their employees properly so that they have sufficient knowledge about the products and the bills should be made more transparent so that the customers could easily understand them.
•
The sales executives are not properly trained as they could not explain the schemes properly so they just try to tell to the customer about their RIM post paid service and not about other three services. This is the main reason for the lack in sales of their internet services.
•
A majority of the customers look for the price and after sales services before choosing the products. So the company should plan accordingly to increase their sales.
•
As seen from the survey results, more than 3/4th of the population prefer to buy a mobile based on GSM technology. So the newly launched GSM based mobile phones should be promoted accordingly.
•
Half of the population interviewed rated either average or poor for the network. So network can be improved by planting more towers in different parts of the city where the company does not have the signals.
•
More than 3/4th of the population does not like the new schemes and offers introduced by the company. So a proper survey should be conducted and more attractive and useful schemes must be introduced.
•
The cost of the products is too high for the customer to buy them. Moreover the major problem is that several packs are activated without any prior intimation and their price is included in the bills later, which is the major reason for dissatisfaction.
•
Around 2/3rd of the people gave average or poor ratings to the customer care and said that their complaints are either not heard or they are dealt very late.
•
The company should emphasize more on reducing the call rates and introducing attractive value added services which would help them improve their sales. 5
1
CONCLUSION: As there is a healthy competition given by the existing players in the industry, lack or degradation in any of the services may affect the company badly. With the excellent rural awareness and rural market share in telecom services, the company should also try to boost up their urban market share. This could only be done with the help of a team of properly trained and dedicated employees. Moreover there is a huge market for the internet sector which can be captured by giving the customer, the services according to their needs.
5 2
BIBLIOGRAPHY •
http://www.indiaonestop.com/fdi-telecom.htm
•
http://www.trai.gov.in/Default.asp
•
http://www.rcom.co.in/webapp/Communications/rcom/index.jsp
•
http://trak.in/Tags/Business/category/telecommunication/
5 3
ANNEXURE QUESTIONNAIRE PERSONAL DETAILS 1) 2) 3) 4) 5) 6)
Name: Age: Gender: Address: Number: Phone/Internet is used for following purpose: a) Business b) Official c) Personal 5
4
Q1. 1). 2). 3). 4).
Which of the following Reliance post paid products are you aware of? Reliance India Mobile (RIM Post Paid) Fixed Wireless Phone (FWP) Broadband High Speed Data Card (HSDC)
Q2. 1). 2). 3). 4). 5).
How did you come to know about the products? Television Print Sales Executives Friends and Existing s Other (Please Specify) ………………………………………
Q3. 1). 2). 3). 4).
Which of the following products are you using? Reliance India Mobile (RIM Post Paid) Fixed Wireless Phone (FWP) Broadband High Speed Data Card (HSDC)
Q4. 1). 2). 3).
Are you satisfied with the service provided by the subscriber? Fully Satisfied Partially Satisfied Not Satisfied
Q5. If your response to the above is partially satisfied or not satisfied, then what are the reasons for your dissatisfaction? 1). Poor Quality of Signals/Network 2). Poor Voice Quality 3). Higher Cost 4). Slow Speed 5). Billing Errors 6). Poor Customer Care Service 7). Any Other (Please Specify) ………………………………… Q6. When a sales executive comes to you, which of the following products does he frequently tells about? 1). Reliance India Mobile (RIM Post Paid) 2). Fixed Wireless Phone (FWP) 3). Broadband 4). High Speed Data Card (HSDC) Q7. 1). 2). 3).
What channel would you prefer to buy a telecom/internet service? Home Delivery Customer Care Online 5
5
4). Franchisee & Utility Shops Q8. 1). 2). 3). 4). 5). 6).
Which of the following service you look before choosing the product? Price Connectivity Speed Value Added Services After Sales Service Any Other (Please Specify) ……………………………..
Q9. If Price and mobility is not a concern, which of the following would you prefer to buy? 1). Land Line Phone 2). Fixed Wireless Phone 3). Mobile based on GSM Technology 4). Mobile based on CDMA Technology Q10. Would you like to recommend reliance services to others? 1). Yes 2). No 11). Rate the following services on the basis of your satisfaction. Services Network
Excellent
Very Good
Good
Average
Poor
SMS Rates New Schemes & Offers Internet Speed Cost Customer Care Recharge Outlets Call Rates Value Added 5 6
Services 12). Suggestions (If Any): ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… …………………………………………………………………………………………
5 7
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