LETTER OF TRANSMITTAL

DEPARTMENT OF BUSINESS ADMINISTRATION,

ALIGARH MUSLIM UNIVERSITY (AMU), MALAPPURAM CENTRE
KERALA, INDIA

DATE: 21st July, 2014

Mr. Ashish Tiwari,

S.D.E Marketing,
BSNL, Aligarh

RE: Summer Project Report

Dear Sir,

Attached herewith is a copy of my summer project report “Impact of 3G on Mobile Value

Added Services”, which I am submitting in order to mark the completion of a 6-week summer
project at your organization. This report was used by me using the best of practices and
summarizes the work performed on the project and is being submitted in partial fulfillment of the
requirements for award of degree.

I would like to mention that the overall experience with Marketing Division, BSNL Aligarh was
very good, and helped me to know how work is carried out in real practice with the help of your
esteemed organization. I feel honored that I got an opportunity to train with BSNL. I hope I did
justice to the project and added some value to the organization. Suggestions/comments would be
appreciated.

Sincerely,

Mohd Kamran Rais Khan

i
 DECLARATION

I hereby declare that the report titled “Impact of 3G on Mobile Value Added Services”is a
bona-fide record of the summer project done by me for BSNLfrom 9th June to 21st July 2014 as
part of my MBA programme at Department of Business Administration, Aligarh Muslim
University,Malappuram Centre. This study has been undertaken for partial fulfillment of award
of degree of MBA.

I also declare that this report has not been submitted in full or part thereof, to any other
university or institutions for the award of any degree or diploma fellowship or for similar titles or
prizes.

Mohd Kamran Rais Khan

Roll No. 13-MBAK-33

ii
 TO WHOM IT MAY CONCERN

This is to certify that project entitled “Impact of 3G on Mobile Value Added Services” has

been undertaken by Mr. Mohd Kamran Rais Khan during summer internship in our

organization for 6 weeks from 9th June to 21st July 2014 which is being submitted in partial

fulfillment of the requirements for the award of the degree of Master of Business Administration

of Aligarh Muslim University, Malappuram Centre, Kerala, is a record of candidate’s own work

carried out by him under my supervision and guidance. The matter embodied in this project

report is original piece of work and has not been submitted for the award of any other degree.

Mr. Ashish Tiwari

S.D.E Marketing
BSNL, Aligarh

iii
 ACKNOWLEDGEMENT

Gratitude, they say, cannot be seen. I feel, it cannot be expressed either, for words are not
adequate to bring out the reverential feelings of gratitude and indebtedness that is there in my
heart for my esteemed mentor, Mr. Ashish Tiwari, S.D.E Marketing who guided me during my
summer training at BSNL, Aligarh.

The completion of this work gives me the opportunity to express my deep sense of gratitude for
my mentor for their scholarly guidance and constructive criticism. I take this opportunity to
thank them for the immense care in going through this work and for bearing with my
inadequacies.

I am deeply thankful to the faculty, Department of Business Administration, AMU, Malappuram

Centre for their sincere guidance in finalizing the project and giving suggestions which has
helped me in completion my project.

As people say you‘re what your friends let you be. I take this opportunity to thank all my friends
for their valuable support and cooperation.

Whatever I‘m today is all because of my family. I am extremely grateful to my family for their
valuable support and encouragement throughout the course of my life.

Above all I am thankful to Almighty the one n only Allah for giving me the desire, ability and
zeal to complete this project.

Mohd Kamran Rais Khan

iv
 EXECUTIVE SUMMARY

Traditionally, speed has been considered as limiting factor in growth of value added services.

The ongoing roll-out of 3G service could potentially address this gap.

Today everybody is holding a mobile phone and almost everyone with internet connection 2G or

3G. There is huge diversification in the mobile phone users on the basis of age, sex, student,

working class people, teachers etc. They are adopting MVAS according to their need and utility.

Though current MVAS adoption is limited to select set of services, but this combination of age,

class and people’s preferences or utility or need promises a great future.

Through this market research it is been revealed that there are about 80% smartphone users

among mobile phone users and almost all of them are using an internet connection. Most of them

are having a 3G connection to experience the luxury of high speed of internet and to use it for

prompt results.

The main aim of this research was to determine how much people are using MVAS with invent

of 3G. It is found that almost everybody is using MVAS either very less or very frequently. The

most popular MVAS are as follows

1. Videos and Music

2. Social Networking

3. News

4. E-mail

In future the usage of these services may rise a little or will be maintained but there are other

services like mCommerce are going to be adopted or used very frequently by a lot of people.

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People are also getting used to navigation with the high speed of internet, phone backup and

security services.

It was found during the study that network operators are trying their best to get the customers

aware of these services and holding stores of applications to address the demand of various kinds

of customers. Not only network operators but mobile manufacturers also host these application

stores. The application store hosts application which can deliver variety of MVAS directly to

consumers. The applications are tied to operating systems of the mobile handsets. With the

invent of 3G smartphone users has increased rapidly which ultimately increased the use of

MVAS in the recent time and it is going to increase with time.

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 CONTENTS

S.No. Title Page No.

CHAPTER 1 1.1 About BSNL 1

1.2 Vision 2
1.3 Mission 2
1.4 Objectives 3
1.5 Board of Directors 4
1.6 Services 5
1.7 Aspiration 7
1.8 Growth Plan 7
CHAPTER 2 2.1 About 3G 10
2.2 MVAS 12
CHAPTER 4 4.1 Research Methodology 13
a. Objective 13
b. Research Design 13
c. Data Collection and Analysis 13
CHAPTER 5 Findings 15

CHAPTER 6 Conclusion 42

CHAPTER 7 Recommendations 44

CHAPTER 8 Limitations 45

Bibliography 46

Questionnaire for Customers 47

vii
 ABOUT BSNL

Bharat Sanchar Nigam Ltd. was incorporated on 15th September 2000. It took over the business
of providing of telecom services and network management from the erstwhile Central
Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with
effect from 1st October 2000 on going concern basis. It is one of the largest & leading public
sector units providing comprehensive range of telecom services in India.

BSNL has installed Quality Telecom Network in the country & now focusing on improving it,
expanding the network, introducing new telecom services with ICT applications in villages &
winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity,
8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM
BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of
microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages.

BSNL is the only service provider, making focused efforts & planned initiatives to bridge the
rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat
its reach with its wide network giving services in every nook & corner of the country & operates
across India except New Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier or
North-Eastern regions of the country, BSNL serves its customers with a wide bouquet of telecom
services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service,
MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc.

BSNL is numerouno of India in all services in its license area. The company offers wide ranging
& most transparent tariff schemes designed to suit every customer. BSNL has 90.09
million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to
all 2G connections of BSNL. In basic services, BSNL is miles ahead of its rivals, with 24.58
million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that
provides convergent services like voice, data & video through the same Backbone & Broadband
Access Network. At present there are 8.09 million broadband customers.

1
The company has vast experience in planning, installation, network integration & maintenance of
switching & transmission networks & also has a world class ISO 9000 certified Telecom
Training Institute.

During 2010-11, turnover of BSNL was around Rs. 29,700 Crores.

VISION
 Be the leading telecom service provider in India with global presence.
 Create a customer focused organization with excellence in customer care, sales and
marketing.
 Leverage technology to provide affordable and innovative telecom. Services/products across
customer segments.

MISSION
Be the leading telecom service provider in India with global presence.
 Generating value for all stakeholders - employees, shareholders, vendors & business
associates
 Maximizing return on existing assets with sustained focus on profitability
 Becoming the most trusted, preferred and admired telecom brand
 To explore International markets for Global presence

Creating a customer focused organization with excellence in customer care, sales&

marketing.
 Developing a marketing and sales culture that is responsive to customer needs mere care,
sales& marketing
 Excellence in customer service-”friendly, reliable, time bound, convenient and courteous
service”

Leveraging technology to provide affordable and innovative products/ services across

customer segments

2
 Offering differentiated products/services tailored to different service segments
 Providing reliable telecom services that are value for money

Providing a conducive work environment with strong focus on performance

 Attracting talent and keeping them motivated
 Enhancing employees skills and utilizing them effectively
 Encouraging and rewarding individual and team/group performance

Establishing efficient business processes enabled by IT

 Changing policies and processes to enable transparent, quick and efficient decision making
 Building effective IT systems and tools

OBJECTIVES
 To be the Leading Telecom Services provider by achieving higher rate of growth so as to
become a profitable enterprise.
 To provide quality and reliable fixed telecom service to our customer and thereby increase
customers confidence.
 To provide customer friendly mobile telephone service of high quality and play a leading
role as GSM operator in its area of operation.

Strategy for:
 Rightsizing the manpower
 Providing greater customer satisfaction>/li>

Contribute towards:
 Broadband customers base of 20 Mn in India by the end of 2011-12 as per broadband policy
2004.
 Providing telephone connections in villages as per Government policy.

3
 BOARD OF DIRECTORS
The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time Directors;
2 Government Nominee Directors and 4 Non-official Part Time Directors. The present
composition is as under

Chairman & Managing Director Director - Consumer Fixed

Shri A.N Rai Access(CFA)
ShriN.K.Gupta

Director - Consumer Mobility(CM)

ShriAnupamShrivastava Director – (Enterprise) and HRD
Shri A.N. Rai

ShriShahbaz Ali, Govt. Director ShriAjaiVikram Singh Director

 MS. RITA A. TEOATIA,

Govt. Director
 Director - HR - Vacant

Prof. N. Balakrishnan Director  Director - Finance - Vacant

4
 SERVICES

BSNL provides almost every telecom service in India. Following are the main telecom services
provided by BSNL:

1. Optical Infrastructure and DWDM: BSNL owns the biggest OFC network in India.
Also the DWDM network is one of the biggest in the world. The DWDM equipments
purchased in open tender at BSNL are mainly of United Telecoms Limited (UTL) make,
which was declared lowest cost in competitive bidding. Rest DWDM equipments are
from Huawei. The SDH equipments are mainly from Huawei, ZTE, ECI, UT STAR etc.

2. Market Share: As of 30 November 2013, BSNL had 12.9% market share in India and
stands as 5th Telecom Operator in India and 67% market share in ADSL Services.

3. Managed Network Services: BSNL is providing complete Telecom Services Solution to

the Enterprise Customers i.e. MPLS Connectivity, Point to Point Leased
Lines and Internet Leased Lines.

4. Universal Telecom Services: Fixed wireline services and landline in local loop (WLL)
using CDMA Technology called bfone andTarang respectively. As of 30 June 2010,
BSNL had 75% market share of fixed lines.

5. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile

Telephone services using GSM platform under the brand name Cellone& Excel (BSNL
Mobile). As of 30 June 2010 BSNL has 13.50% share of mobile telephony in the
country. It has 95.54 million customers using BSNL mobile.

6. WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop) service is a

service giving both fixed line telephony & Mobile telephony.

7. Internet: BSNL provides Internet access services through dial-up connection (as
Sancharnet through 2009) as Prepaid, NetOneas Postpaid and ADSL broadband as BSNL

5
 Broadband BSNL held 55.76% of the market share with reported subscriber base of 9.19
million Internet subscribers with 7.79% of growth at the end of March 2010.Top 12 Dial-
up Service providers, based on the subscriber base, It Also Provides Online Games via
its Games on Demand (GOD)

8. Intelligent Network (IN): BSNL offers value-added services, such as Free PhoneService
(FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual
Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access
Number (UAN).

9. 3G:BSNL offers the '3G' or the'3rd Generation' services which includes facilities like
video calling, mobile broadband, live TV, 3G Video portal, streaming services like
online full length movies and video on demand etc.

10. IPTV:BSNL also offers the 'Internet Protocol Television' facility which enables
customers to watch television through internet.

11. FTTH:FibreTo The Home facility that offers a higher bandwidth for data transfer. This
idea was proposed on post-December 2009

12. Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for
their services.

13. VVoIP: BSNL, along with SaiInfosystem - an Information and Communication

Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol
(VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or
IP phone anywhere in the world, provided that the requisite video phone equipment is
available at both ends.

6
 14. WiMax: BSNL has introduced India's first 4th Generation High-Speed Wireless
Broadband Access Technology with the minimum speed of 256kbit/s. The focus of this
service is mainly rural customer where the wired broadband facility is not available.

ASPIRATION
 Be the leading Telecom Service Provider in India with global presence.
 Create a customer focused organization with excellence in sales, marketing and customer
care.
 Leverage technology to provide affordable and innovative products/services across customer
segments
 Provide a conducive work environment with strong focus on performance
 Establish efficient business processes enabled by IT

GROWTH PLAN
BSNL has continued its growth story ever since its formation and presently it is one of the
largest & leading public sector units in India, providing a bouquet of telecom services: Wireline,
GSM mobile, CDMA mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP,
IN Services, etc. BSNL has customer base of 121.65 million as on 31st March, 2013 and further
plans to increase it to 189 million with 165.47million wireless customers by March, 2017.

New services introduced/planned by BSNL

3G Services: BSNL has covered 1259 cities with 3G services across the country and all 2G
customer have been enabled for 3G facilities.

Broadband services: The shift in demand from voice to data has revolutionized the very nature
of the network. BSNL is poised to cash on this opportunity & has planned for extensive
expansion of Broadband services. BSNL has increased minimum download speed to 512 Kbps.
BSNL has covered more than 1.69 lakh villages with Broadband services. The Broadband

7
customer base of BSNL has reaches to 10.13 Million customers in March, 2013 & further BSNL
plan to increase Broadband customer to 17.50 million by March, 2017.

Value Added Services: BSNL is focussing on provision of value added services/features to

attract high end customers and to double its revenues from VAS.

Fibre to Home (FTTH): To meet demand for high bandwidth services, BSNL has rolled out
FTTH services (GPON & GE-PON) in 2010 for the first time in the country. FTTH services
have already been launched in more than 160 cities.

Mobility in WLL: BSNL is planning to provide full mobility on its WLL network from March
2010.

Important projects under implementation

 BSNL is augmenting its GSM Network by 15 Million lines to meet its capacity requirement,
through Phase VII GSM expansion project.
 Augmentation of broadband Network by additional 3.2 Million ports
 Migration of Wireline customers from legacy Network to Next Generation Network (NGN).
 Augmentation of Optical Fibre network.
 Implementation of Enterprises Resource Planning ( ERP) system country vide in BSNL
 Executing DoT’s work of building alternate communication infrastructure for Defence(NFS).
 Executing BBNL’s part work/project of high Speed Broadband connectivity to Panchayat
(NOFN).
 6731 Base Station rural phase-II WiMax Project for 52000 CSCs covering all Telecom
Circles except Kerala &A&N.

8
International long distance

Undersea Cable: BSNL is participating/member of the following submarine cable systems:

Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific direction
from India.

Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar, France, Libya,
Egypt, Saudi Arabia, Djibouti, Oman & UAE.

Millennium Cable System: It is joint venture with MTNL to lay Millennium Cable System in
two directions as follows:-
 Millennium Cable Sub-System East (MCSS-E) connecting the East Coast of India to South
East Asia (Malaysia and Singapore) with optional branches to Port Blair (Great Andaman
Island), Bangladesh, Myanmar, Indonesia and Thailand.
 Millennium Cable Sub-System West (MCSS-W): connecting the West Coast of India to the
Middle East (United Arab Emirates) and Djibouti with optional branches to Pakistan, Oman
and Yemen.

SEMEWE4: Connecting towards Trans-Atlantic as well as Trans-Pacific direction.

International MPLS-VPN: BSNL has made arrangements for providing International MPLS
VPN services in about 400 cities and 150 countries.

With the above expansion plans and introduction of new services, the turnover of the company is
expected to grow from Rs. 35800 crore in March 2009 to Rs. 52,000 crores by March 2014.

9
 3rd GENERATION
(3G)
3G, short form of third Generation, is the third generation of mobile telecommunications
technology. This is based on a set of standards used for mobile devices and mobile
telecommunications use services and networks that comply with the International Mobile
Telecommunications-2000 (IMT-2000) specifications by the International Telecommunication
Union. 3G finds application in wireless voice telephony, mobile Internet access, fixed
wireless Internet access, video calls and mobile TV.

3G telecommunication networks support services that provide an information transfer rate of at

least 200 kbit/s. Later 3G releases, often denoted 3.5G and 3.75G, also provide mobile
broadband access of several Mbit/s to smartphones and mobile modems in laptop computers.
This ensures it can be applied to wireless voice telephony, mobile Internet access, fixed
wireless Internet access, video calls and mobile TV technologies.

3G technology is the result of research and development work carried out by the International
Telecommunication Union (ITU) in the early 1980s. 3G specifications and standards were
developed in fifteen years. The technical specifications were made available to the public under
the name IMT-2000. The communication spectrum between 400 MHz to 3 GHz was allocated
for 3G. Both the government and communication companies approved the 3G standard. The first
pre-commercial 3G network was launched by NTT DoCoMo in Japan in 1998, branded
as FOMA. It was first available in May 2001 as a pre-release (test) of W-
CDMA technology. The first commercial launch of 3G was also by NTT DoCoMo in Japan on 1
October 2001, although it was initially somewhat limited in scope; broader availability of the
system was delayed by apparent concerns over its reliability.

Nepal Telecom adopted 3G Service for the first time in Asia. However its 3G was relatively slow
to be adopted in Nepal. In some instances, 3G networks do not use the same radio frequencies
as 2G so mobile operators must build entirely new networks and license entirely new
frequencies, especially so to achieve high data transmission rates. Other Countries delays were
due to the expenses of upgrading transmission hardware, especially for UMTS, whose
deployment required the replacement of most broadcast towers. Due to these issues and

10
difficulties with deployment, many carriers were not able to or delayed acquisition of these
updated capabilities.

In December 2007, 190 3G networks were operating in 40 countries and 154 HSDPA networks
were operating in 71 countries, according to the Global Mobile Suppliers Association (GSA). In
Asia, Europe, Canada and the USA, telecommunication companies use W-CDMA technology
with the support of around 100 terminal designs to operate 3G mobile networks.

Roll-out of 3G networks was delayed in some countries by the enormous costs of additional
spectrum licensing fees. (See Telecoms crash.) The license fees in some European countries
were particularly high, bolstered by government auctions of a limited number of licenses
and sealed bid auctions, and initial excitement over 3G's potential.

The 3G standard is perhaps well known because of a massive expansion of the mobile
communications market post-2G and advances of the consumer mobile phone. An especially
notable development during this time is the smartphone (for example, the iPhone, and
the Android family), combining the abilities of a PDA with a mobile phone, leading to
widespread demand for mobile internet connectivity. 3G has also introduced the term "mobile
broadband" because its speed and capability make it a viable alternative for internet browsing,
and USB Modems connecting to 3G networks are becoming increasingly common.

11 December 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data
services by Government owned Mahanagar Telephone Nigam Ltd MTNL in Delhiand later
in Mumbai. MTNL becomes the first 3G Mobile service provider in India. After MTNL, another
state operator Bharat Sanchar Nigam Ltd. (BSNL) launched 3G services on 22 Feb 2009
in Chennai and later launched 3G as Nationwide. The auction of 3G wireless spectrum was
announced in April 2010 and 3G Spectrum allocated to all private operators on 1 September
2010.

11
 MOBILE VALUE ADDED SERVICE

(MVAS)

A value-added service (VAS) is a popular telecommunications industry term for non-core

services, or in short, all services beyond standard voice calls and fax transmissions. However, it
can be used in any service industry, for services available at little or no cost, to promote their
primary business. In the telecommunication industry, on a conceptual level, value-added
services add value to the standard service offering, spurring the subscriber to use their phone
more and allowing the operator to drive up their ARPU. For mobile phones, technologies
like SMS, MMS and data access were historically usually considered value-added services, but
in recent years SMS, MMS and data access have more and more become core services, and VAS
therefore has begun to exclude those services.

Major Value Added Services

 Mobile TV & OTT Services

 Ring Back Tone(RBT & RRBT)
 Music Tracks Play, download and Ring Tones
 Sports and Infotainment Services
 Location Based Services
 Missed Call Alerts and Voice Mail Box
 Online Gaming
 Live Streaming
 Devotional Applications
 Mobile Money & M-commerce based services
 Mobile Advertisements
 Contests & Voting
 Phone Backup and Security Services
 Outbound Dialer Services
 WAP content downloads
 Utility Services

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 RESEARCH METHODOLOGY
Title of Research
Impact of 3G on Mobile Value Added Services.

Research Objectives
1. To determine the present usage and how much people spend on mobile value added
services with invent of 3G.
2. To analyze the future prospects of these services.

Research Design:
A Research design specifies the methods and procedures for conducting a particular study. It is a
map or blue print to which the research is to be conducted.

Exploratory Research

Exploration is particularly useful when researchers lack a clear idea of the problems they will
meet during study. Through exploration researchers develop concepts more clearly, establish
priorities, develop operational definitions, and improve the final research design. Despite its
obvious value, researchers and managers alike give exploration less attention than it deserves.

It was exploratory research in nature which was subjected to the basic information required by
research objectives. A preliminary study and findings was further consolidated, after detailed
conclusion study had been carried out.

I tried to explore different aspects during the study and analyzed to come on specific conclusion
and certain recommendations for improving services to customers.

Data Collection and Analysis

Primary Data
Primary data was collected through questionnaire and other sources. A brief questionnaire
focused to collect the relevant information was prepared. The respondents were asked to fill up

13
this questionnaire. The data gathered through these questionnaires were analyzed using different
descriptive statistical tools to judge the target audience opinion and other major factors.

Secondary Data
Secondary data was collected mainly company brochures, internet.

Sampling
Sampling technique used was Convenience sampling, which is a non-probability sampling
method. The convenience factors were the availability and approachability of the respondents.
The following retail shops for mobile recharge and SIM card connection were selected for
respondents:

1. Faiz Communication
2. Tameer Service
3. New Mobile Recharge
Google Docs: I also make use of Google Docs to take responses as many as possible.

Sample Size
A total of 350 responses have been taken through a questionnaire consisting of queries related to
the study of research.

Research Instrument
The survey was conducted with the help of questionnaire and informal talks. A structured
questionnaire has been used as a research instrument tool which consisted of various types of
questions.

Statistical Instrument
The statistical tools used for analyzing and representing data are MS Excel and SPSS.

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 DATA ANALYSIS AND FINDINGS
Question 1
Are you using a smartphone?
Frequencies
Statistics
Smartphone Users
Valid 350
N
Missing 0

Smartphone Users
Frequency Percent Valid Cumulative
Percent Percent
No 76 21.7 21.7 21.7
Valid Yes 274 78.3 78.3 100.0
Total 350 100.0 100.0

15
 Smartphone Users

Yes
22% No

78%

This was the very first question asked in the questionnaire and it is found that 78 percent of the
mobile phone users are using smartphones.

This was asked because now a days many applications for value added services are coming
attached with the operating system of the smartphones built in by the mobile manufacturers. Also
many new mobile value added services and applications are coming for smartphone platforms
and all the smartphones are 3G enabled.

In short smartphones support a lot of applications providing many options to the users for mobile
value added services compared with other phones. And phones other than smartphones are not
all 3G enabled.

16
 Question 2
Which network operator's SIM are you using?
Frequencies
Statistics
Network Operator
Valid 350
N
Missing 0

Network Operator
Frequency Percent Valid Cumulative
Percent Percent
Airtel 126 36.0 36.0 36.0
BSNL 70 20.0 20.0 56.0
Docomo 58 16.6 16.6 72.6
Valid Idea 34 9.7 9.7 82.3
Reliance 41 11.7 11.7 94.0
Vodafone 21 6.0 6.0 100.0
Total 350 100.0 100.0

17
 Users of Different Network
Operators
BSNL
6%
10% 20% Airtel
Reliance
16% Docomo
Idea

12% 36% Vodafone

This question was asked because in the field of telecom there are many players providing
services. All of them provide services with different quality and prices and today all the network
operators are providing 3G service. Different people are using SIM of different companies for
different reasons and 3G plays an important role in it.

After the survey it was found that Airtel users are in the majority and then BSNL users. It was
the feedback of the Airtel users that it is the best in 3G service and network. BSNL is also good
at providing a good quality of 3G service with reasonable prices. Docomo users are opting
Docomo because it is providing services with minimum prices but many said that it is not having
a good network. Reliance and Vodafone users are also there but having a less share in the market
as compared with Airtel, BSNL and Docomo.

18
 Question 3
Are you using a 3G connection?
Frequencies
Statistics
3G Customer
Valid 350
N
Missing 0

3G Customer
Frequency Percent Valid Cumulative
Percent Percent
No 77 22.0 22.0 22.0
Valid Yes 273 78.0 78.0 100.0
Total 350 100.0 100.0

19
 3G Customers

Yes
22% No

78%

This was very important to know whether the respondent is using a 3G connection or not as this
study is being done to know the impact of 3G on MVAS. And after the study it is found that 78
percent of the mobile phone users are using a 3G connection which is a very big figure. And the
reason behind using it is the high speed of internet enabling the user to browse and download fast
and giving him prompt results and saving his/her time.

The introduction of 3G has affected and attracted many customers towards mobile internet other
services. There were mobile internet users before 3G but everyone was facing the problem of
slow connection, all these users upgraded to 3G connection along with new customers of 3G and
experiencing a better quality of service.

20
 Question 4
Are you aware of the benefits of 3G services like video call, live streaming
video, broadband internet speeds?

Frequencies
Statistics
Awareness
Valid 350
N
Missing 0

Awareness
Frequency Percent Valid Cumulative
Percent Percent
I am keenly following 179 51.1 51.1 51.1
the 3G updates
Have seen it in promos 117 33.4 33.4 84.6
Valid and news articles
Don’t really know, does 54 15.4 15.4 100.0
not concern me
Total 350 100.0 100.0

21
 Awareness About Benefits of 3G

I am keenly following
15%
the 3G updates

Have seen it in
promos and news
51% articles
34% Don’t really know,
does not concern me

3G is rolled out in the market years ago but how many people know about it and its benefits.
Majority of the people using 3G are following the updates of it very keenly on a regular basis, a
little less quantity of users are following 3G updates on some timely basis not regularly.

Some people have limited usage of internet on mobile so they do not follow the 3G updates; they
just need a high speed internet connection and nothing else.

There are a number of customers who are not using 3G connection this may be because of
improper advertising.

22
 Question 5
What is monthly spending on your mobile bills?

Frequencies
Statistics
Monthly Mobile Bill
Valid 350
N
Missing 0

Monthly Mobile Bill

Frequency Percent Valid Cumulative
Percent Percent
Less than Rs. 350 140 40.0 40.0 40.0
Rs. 350 to Rs. 700 175 50.0 50.0 90.0
Rs. 700 to Rs. 1500 28 8.0 8.0 98.0
Valid
Rs. 1500 and 7 2.0 2.0 100.0
Above
Total 350 100.0 100.0

23
 Monthly Mobile Bill
2%

8% Less than Rs. 350

Rs. 350 to Rs. 700

40% Rs. 700 to Rs. 1500

Rs. 1500 and Above

50%

Different people have different usage of mobile and expenditures. It is quite evident from the pie
chart and the bar graph that forty percent of the respondents spend less than Rs. 350 monthly, the
reason behind this may be that the basic function and purpose of keeping a mobile phone is to
connect with others over voice calls. But now a days there a number of features available with
the phones enabling the users to use their phone more which incur expenses that is why fifty
percent of the respondents responded to Rs. 350 to Rs. 700 monthly. It simply shows that not
much but a considerable amount is spent on other services on mobile phones.

And a very little quantity of users spend above Rs. 700, may be some people are using their
phones for most of the services available on it for a easy way out for everything.

24
 Question 6
Of this bill amount, how much money is spent on VAS such as news,
railway, astrology, cricket, ring tones etc.?

Frequencies
Statistics
VAS Expenditure
Valid 350
N
Missing 0

VAS Expenditure
Frequency Percent Valid Cumulative
Percent Percent
Less than 20% 77 22.0 22.0 22.0
20-35% 126 36.0 36.0 58.0
Valid 35-50% 91 26.0 26.0 84.0
Above 50% 56 16.0 16.0 100.0
Total 350 100.0 100.0

25
 VAS Expenditure
Less than 20% of Mobile
Bill
16%
22% 20-35% of Mobile Bill

35-50% of Mobile Bill

26% Above 50% of Mobile

Bill
36%

Today people are getting used to those services which make their lives easy and they are ready to
pay for it according to their ability. There is a vast diversity in the society on the basis of income
and expenditure. Seeing the pie chart it is apparent that all the respondents are using MVAS and
spending some amount on it either less or more. Clearly it is there that thirty six percent that is
majority is spending between 20 to 35 percent of monthly mobile bill, this may be because of
limited usage and selected set of services.

After them comes those people who spend less than 35 to 50 percent of their monthly mobile bill
amount on MVAS may be due to moderate usage or more different kind of services.

And the quantity of those spending above 50 percent is the minimum and a little bit more
respondents responded to less than 20 percent.

26
 Question 7
Where do you get information about VAS in general?

Frequencies
Statistics
VAS Information Sources
Valid 350
N
Missing 0

VAS Information Sources

Frequency Percent Valid Percent Cumulative
Percent
Print Advertisements 21 6.0 6.0 6.0
Electronic Advertisements 98 28.0 28.0 34.0
Friends/Relatives/Neighbors 14 4.0 4.0 38.0
Valid
Retailers 14 4.0 4.0 42.0
Internet 203 58.0 58.0 100.0
Total 350 100.0 100.0

27
 Percentage of People Acquiring
Information from different Sources

6% Print Advertisements

Electronic Advertisements
28%

Friends/Relatives/Neighbors
58%

Retailers
4%
4%
Internet

This was very important to ask as if the customers come to know about any service then only
they will think to use it. There are various sources from which people get information about
MVAS. The majority get the information through internet or electronic media such as television,
mobile advertisements. Other sources retailers, print advertisements, friends/relatives/neighbors
comprise only a little percentage to this.

Out of all these services internet has the largest share as today people are getting used to internet
so much that it is becoming a necessity. So internet is a good media to reach more and more
people. Also television is good mode to reach a lot of people at a time. Every source should be
used properly to create awareness about any product or service among the prospect customers.

28
 Question 8
Rate those mobile value added services which you use according to how frequently you use in
your day to day life.

Question 9
With roll out of 3G telecom players which mobile value added services you are ready to use or
adopt in future?

A comparison of results of these two questions is shown in the form of graphs as follows.

Question 8 gives the present picture about the usage of mobile value added services while the
result of question 9 tells about future adoption of these services.

In the following graphs on X-axis

1 - Least Frequently
2 - Less Frequently
3 - Frequently
4 - More Frequently
5 - Most Frequently

On Y-axis

Number of Users

29
 NEWS
140
120
100
No. of Users

80
60
40
20
0
1 2 3 4 5
Present 27 44 84 77 56
Future 20 29 79 79 117

Present Future Sample Size

Total number of users 288 324 350
82.28% 92.57%

In the bar chart shown above it is clear that NEWS is an extensively used service at present. As
we move to the right of the chart the frequency of usage is increasing and comes to a maximum
at the middle and then start decreasing but by a little amount.

If we talk of its future picture with 3G more of the users are shifting towards higher frequency of
usage and more new users will added to the present ones. Most frequent users have surged to
more than double of the present.

Since news is like a need for everyone to stay updated and news on phone will serve to fulfill
this need with the ease of time and place according to the user, this will cause the high utility of
the news app on phone in future. Almost everyone will be using news as a MVAS.

30
 E-MAIL
140
120
100
No. of Users

80
60
40
20
0
1 2 3 4 5
Present 19 29 71 95 62
Future 21 24 71 97 119

Present Future Sample Size

Total number of users 276 332 350
78.85% 94.85%

It is evident from the bar chart that E-MAIL is used by about 79% of the sample size at present.
Frequencies of usage are also shown which are increasing towards right reaches maximum at 4
on X-axis and then decreased.

Similarly the future usage frequencies are also increasing towards right and reaches maximum at
the last. All the respective frequencies are almost equal except the last one that is most frequent
users will be almost double of present.

Since e-mail plays an important role in communicating with others its usage will definitely
increase, many new users will added to this service as it is providing ease of access to
communicate.

31
 mCommerce
120

100

80
No. of Users

60

40

20

0
1 2 3 4 5
Present 18 38 87 31 9
Future 10 20 107 82 37

Present Future Sample Size

Total number of users 183 256 350
52.28% 73.14%

It is quite apparent as shown in the chart that presently only about 50% people are using
mCommerce, may be due to some security reasons, also the frequency of usage is maximum at
the middle only and most frequent users are very less.

The future usage frequencies show a slightly different scenario, users are shifting towards the
more frequent area and the number of users will be increased greatly up to 73%.

Since mCommerce is an important application, time saving, easy to access bank account details,
online money transfers, online orders etc. it has wide recognition but many people don’t go for it
because of some security reasons. But near future these security issues will be addressed and its
users will increase.

32
 RAILWAY
140
120
100
No. of Users

80
60
40
20
0
1 2 3 4 5
Present 37 93 37 30 23
Future 31 61 119 41 41

Present Future Sample Size

Total number of users 220 293 350
62.85% 83.71%

It’s obvious from the chart and the values shown below it that presently a lot of people are going
for RAILWAY service on mobile phone but if we see frequencies of usage most of the people
are using it less frequently may be due to slow connection.

In future its users will be increasing because of ease and time saving. And the maximum number
users will be using it frequently with 3G giving a fast connection.

Today about 45% of the railway reservation are being done online, it also includes checking pnr
status, seat availability etc. all these things can be done online on mobile phone and people are
going for it. Online reservation has some problems but soon they will be sorted out and its usage
will be increasing.

33
 Videos and Music
140
120
100
No. of Users

80
60
40
20
0
1 2 3 4 5
Present 13 32 60 98 121
Future 24 19 57 112 127

Present Future Sample Size

Total number of users 324 339 350
92.57% 96.85%

It’s noticeable from the chart and the values shown below it that presently 90% people are using
VIDEOS AND MUSIC for entertainment on mobile phone and the frequencies of usage of most
of the users lie at right most part of the chart i.e. more and most frequently.

Its future users also show the almost the same pattern in terms of frequencies and there is rise in
the number of users and soon it will be 100%.

Videos and music is the widely and mostly used service for entertainment on mobile phone.

34
 NAVIGATION
100
90
80
70
No. of Users

60
50
40
30
20
10
0
1 2 3 4 5
Present 40 34 67 52 20
Future 39 56 69 93 41

Present Future Sample Size

Total number of users 213 298 350
60.85% 85.14%

It is visible in the chart and figures that presently around 60% people are using NAVIGATION
for moving here and there. If we look onto the frequencies they are showing an irregular pattern.

But in future the frequencies are showing an increasing pattern up to 4 on X-axis and then a
sudden decrease.

Navigation is a kind of app which people normally don’t use frequently may be because in a city
they are familiar with the routes or may be because of slow connection speed. With 3G people
are getting used to it and in future it will be used much and it will make life easier.

35
 SOCIAL NETWORKING
140
120
100
No. of Users

80
60
40
20
0
1 2 3 4 5
Present 12 26 43 133 99
Future 16 14 54 131 106

Present Future Sample Size

Total number of users 313 321 350
89.42% 91.42%

It’s discernible that presently SOCIAL NETWORKING is being extensively used application
among MVAS which connects people with each other. Most of the users use it as frequently as
possible to talk and share things with others.

There is not much change in present and future users in terms of numbers as well as frequency.

Social networking is a kind of platform which people use for many things like to connect, share,
promote, popularize, to reach a large number of people etc. which everyone needs today.

36
 SPORTS
120

100

80
No. of Users

60

40

20

0
1 2 3 4 5
Present 18 41 57 96 32
Future 10 30 69 108 54

Present Future Sample Size

Total number of users 244 271 350
69.71% 77.42%

It is clear in the chart that presently SPORTS as an MVAS is being liked by many users. Many
people are sports lover and they want to remain updated about it and they use it according to how
much they love it. As we move towards the right its frequency is increasing and shows an abrupt
decrease at the end.

There is a change in present and future users in terms of numbers and frequency pattern is
similar to the present one.

Many people are getting interested in sports and there so much cricket lovers in India. And India
is doing good in Olympics, Common Wealth Games, Women Hockey etc. all these events are
contributing to increase sports usage as an MVAS.

37
 MOBILE TV
70
60
50
No. of Users

40
30
20
10
0
1 2 3 4 5
Present 46 24 32 17 10
Future 30 38 62 34 15

Present Future Sample Size

Total number of users 129 179 350
36.85% 51.14%

GAMES
80
70
60
No. of Users

50
40
30
20
10
0
1 2 3 4 5
Present 31 26 43 19 14
Future 40 10 67 52 20

Present Future Sample Size

Total number of users 133 189 350
38% 54%

38
 ASTROLOGY
40
35
30
No. of Users

25
20
15
10
5
0
1 2 3 4 5
Present 7 9 22 13 3
Future 6 9 34 27 9

Present Future Sample Size

Total number of users 54 85 350
15.42% 24.28%

ONLINE CONTESTS
60

50

40
No. of Users

30

20

10

0
1 2 3 4 5
Present 37 23 15 10 6
Future 24 48 33 18 14

Present Future Sample Size

Total number of users 97 137 350
27.71% 39.14%

39
 PHONE BACKUP AND SECURITY
70
60
50
No. of Users

40
30
20
10
0
1 2 3 4 5
Present 19 31 44 16 9
Future 14 32 64 44 24

Present Future Sample Size

Total number of users 119 178 350
34% 50.85%

Other Utilities
80
70
60
No. of Users

50
40
30
20
10
0
1 2 3 4 5
Present 14 19 49 33 9
Future 18 31 68 47 24

Present Future Sample Size

Total number of users 124 188 350
35.42% 53.71%

40
Now come those services which are adopted by a small percentage of people as compared to
services discussed before. It includes games, mobile TV, astrology, online contests, phone
backup and security services and other utilities such as weather updates, ringtones, latest
softwares etc. These services have not much usage or interest of the majority of the customers.

The present usage of these services in the chart and its quite evident from it that number of user
is very low and frequency of usage showing an increasing and then decreasing pattern in case of
games, astrology, phone backup and security and other utilities. The frequency pattern for mobile
TV is irregular and decreasing for online contests.

In future the usage frequency will show an increasing and decreasing pattern for all the services
except for games may be because it is a kind of app which needs free time which will be hard to
find in future.

Every service has its own importance and utility. The usage of mobile TV may be increasing
highly as it is an entertainment on demand service with the ease of time and place. Phone backup
and security services will also find its place as today many people want a backup of their
contacts and other data like photos. Other services’ usage will also be increasing but may be by a
little amount.

41
 CONCLUSION

MVAS is any service over phone besides core services i.e. voice call, SMS, MMS. These
services are in the market for the past few years and its list is increasing with time. People are
getting used to them as they are making their life easier and entertainment services are being
used widely.

Technology is accelerating the pace of development today. There have been pockets of strong
effort by various agencies, both government and private, to tap into the power of MVAS to reach
consumers with essential information and services.

3G is a well-known service and doesn’t require any introduction, everyone using mobile phone
knows about it. Almost all network operators are providing 3G service and it is one of the
technologies which have accelerated the speed of internet and has enabled consumers to get
access quickly to many new applications and geared the usage of the old ones and made their life
fast and easier.

Various telecom operators have launched application stores which house applications from
entertainment to commerce. While the focus today is largely on entertainment applications, this
is a ready platform for hosting applications which can serve the larger needs of the community.

Today the most popular MVAS are videos and music, social networking, news, e-mail. People
are getting used to other services also such as mCommerce, navigation etc.

Today about 80 percent of mobile phone users are using smartphones and day by day they are
increasing, in near future everyone will be using a smartphone. The application store hosts
application which can deliver variety of MVAS directly to consumers. Many applications are
tied to operating systems of the mobile handsets.

Future adoption relates closely to the current awareness levels of consumers. Trends depict a
growing demand for entertainment services like listening to music and watching movies over
mobile. These are followed by high potential information based VAS such as news updates and
e-mail services over phone.

42
Following were the major conclusions of the research:
1. Majority of the customers surveyed, preferred these MVAS Videos and Music, Social
Networking, News, E-mail because they are the necessities of the people today and everyone
wants entertainment on demand.

2. Almost everyone is aware about 3G and MVAS but the level of awareness of different
people differ according to their usage and interest. And sources of awareness also differ with
people.

3. Today around 80% people are using smartphones because of many new applications are
supported by them which makes life easier. And everyone wants easiness with speed which
is addressed by 3G on mobile. Almost all operators are providing 3G service to preserve their
customers. About 80% of the customers are using a 3G connection.

4. About 50% of the customers spend Rs. 350 to Rs. 700 on monthly mobile bill, 40% below
Rs. 350 and the rest above Rs. 700. And 22%, 36%, 26%, 16% of the people spend less than
20%, 20-35%, 35-50%, above 50% of monthly mobile bill respectively.

5. If we see the comparative picture of different services than usage of all the services is going
to increase in future.

43
 RECOMMENDATIONS

1. The very first recommendation is that all MVAS providers should create an extensive
awareness about benefits of the services through every possible media to reach customers
like retail outlets of SIM card, mobile recharge points, through internet, social media,
hoardings on road, railway stations, bus stands, advertisement posters on vehicles, and
advertisements in the cinema halls.
2. All network operators should try to maintain and improve the quality of 3G by providing a
continuous high speed and fluctuations or any discrepancies in the speed should be checked
regularly. Too much variation in the speed should not be there otherwise it will cause
customer dissatisfaction. Also the benefits of 3G should be communicated to the customers
so as to make them aware of it.
3. As the usage of MVAS is increasing day by day new services should introduced such as
a. M-Health, health solution such as personal apps, patient monitoring systems, update
and alerts etc.
b. M-Education, training and learning content for organizations, educational institutions
etc. through mobile applications over SMS, WAP, USSD.
c. M-Governance, strategy and utilization of all kinds of wireless and mobile technology
services, applications and devices for improving the delivery of effective governance
services for all citizens. For example Kerala’s m-governance initiative.
d. M-Agriculture consists of agriculture related services that disseminate information,
aid in decision making and potentially implement the decision.
4. M-Commerce, retail, banking and other transactions over mobile phone, it is in use but not
by much people because of some security reasons. I would recommend that BSNL should
introduce an application through which people can pay small payments (Rs. 100 – Rs. 500),
such as for movie tickets through their mobile balance. Over a period of time people will get
used to it and then they won’t hesitate in adopting M-Commerce services.

44
 LIMITATIONS

1. The biggest limitation of my research is the area covered. I had taken responses from

Aligarh only but the topic was so general and vast that responses should be taken across all

boundaries.

2. Second biggest limitation is that I was unable to take responses from the customers of all the

network operators.

3. Respondents sometime may not give, true information while filling questionnaire due to

reasons like inability, unwillingness, unawareness, miss-understanding, casual approach

towards questions.

4. Inability of surveyor to extract true and correct information from respondents.

5. The sample size may not be the representative of the whole or majority of the population.

6. All the respondents in this survey were not selected at random. Self-selection is likely to

introduce a bias into the results.

7. Intentional deception, poor memory, or misunderstanding of the questions can all contribute

to inaccuracies in the data.

45
 BIBLIOGRAPHY

For collecting the data for the project we have taken the help of some websites & brochures.

I am also grateful to all the staff of BSNL, Aligarh who devoted their precious time for my
project and gave their guidance for making of the project successful.

1. Brochures of BSNL

2. www.bsnl.co.in

3. http://en.wikipedia.org/wiki/3G

4. http://en.wikipedia.org/wiki/Value-added_service

5. Business Research Methods, Donald R Cooper, Pamela S Schindler

6. Philip Kottler, Principles of Marketing

46
 IMPACT OF 3G ON MOBILE VALUE ADDED SERVICES

Voice calls, SMS and MMS are core services provided by telecom service providers on mobile
phones. Services other than these services such as news, e-mail, sports, music, videos, games,
weather updates, latest apps/softwares etc. are called mobile value added services. This research
is aimed to explore the usage of these services in your day to day life with the roll out of 3G.
And what are their future prospects and usage in your future life.

1. Are you using a smartphone?

a. Yes
b. No

2. Which network operator’s SIM are you using?

a. BSNL
b. Airtel
c. Reliance
d. Others, specify__________

3. Are you using a 3G connection?

a. Yes
b. No

4. Are you aware of the benefits of 3G services like video call, live streaming video,
broadband internet speeds?
a. I am keenly following the 3G updates
b. Have seen it in promos and news articles
c. Don’t really know, does not concern me

5. What is monthly spending on your mobile bills?

a. Less than Rs. 350
b. Rs. 350 to Rs. 700
c. Rs. 700 to Rs. 1500
d. Rs. 1500 and Above

6. Of this bill amount, how much money is spent on VAS such as news, railway, astrology,
cricket, ring tones etc.?
a. Less than 20%
b. 20-35%
c. 35-50%
d. Above 50%

47
 7. Where do you get information about VAS in general?
a. Print Advertisements
b. Electronic Advertisements
c. Friends/Relatives/Neighbors
d. Retailers
e. Internet

8. Rate those mobile value added services which you use according to how frequently you
use in your day to day life.
Least frequently Most frequently
Service/Rating 1 2 3 4 5
News
Email
Railway
mCommerce
Games
Videos and Music
Navigation
Others__________

9. With roll out of 3G telecom players which mobile value added services you are ready to
use or adopt in future?
Least Adoption Highest Adoption
Service/Rating 1 2 3 4 5
News
Email
Railway
mCommerce
Games
Videos and Music
Navigation
Others__________

Respondent Information

1. Name……………………….
2. Age…………………………
3. Occupation………………....

48