Tata Teleservise LTD Project
Tata Teleservise LTD Project
CHANNELS
Submitted To:-
PROF. GANDHI
Submitted By:-
MBA
(2016-2018)
Ahmedabad
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TABLE OF CONTENTS:
A COMPANY OVERIEW 3
C RESEARCH PROPOSAL 5
2. OBJECTIVES OF STUDY 14
3. SCOPE OF STUDY 14
4. RESEARCH DESIGN 14
6. RESEARCH METHODOLOGY 15
7. SAMPLING PLAN 15
8. TIME LINE 15
9. EXPECTED CONTRIBUTION 16
11. LIMITATIONS 17
12. QUESTIONNAIRE 18
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1. BRIEF LITERATURE REVIEW:
Customer Satisfaction:
According to Kotler & Keller (2009), Satisfaction is a persons feeling of pleasure or disappoint/
unhappiness, resulting from comparing a products perceived performance (Outcome) in relation
to his or her expectation. Tse and Wilton (1988) and Oliver (1997) have supported this
definition.
According to Solomon (1996), Wells & Prensky (1996), Hansemark &Albinsson (2004),
customer satisfaction as the feeling or attitude of the customers towards a product or service
after it is used.
Oliver (1993), Mittal, Kumar, & Tsiros (1999), Westbrook & Oliver (1991), Banker, Potter &
Srinivasan (2000) in their study on customer satisfaction, they have mentioned that When
perceived performance of product or service matches or exceeds expectations of customer, the
customer get satisfied. Consequently, the perceived performance of product or service is below
the customer expectations then the customers get dissatisfied.
In their study on customer satisfaction Aakar & Fornell in 1992 and Despensa & Oliver in 1997,
have found that repeat purchase can be enhance through satisfied customers. Besides this they
have mentioned that a satisfied customer can be brand loyal and disseminate positive word of
mouth publicity which can result in enhancement of sales of the organization.
Leelakulthanit & Hongcharn, (2011) in their study have investigated the determinants of
customer satisfaction by conducting interview of 400 cell phone users in Thailand. They found
that promotional offers, quality of customer service at retail outlets or shops and corporate image
of the company play the significant role in determining customer satisfaction.
Sadia, Tasneem, and Khan (2011) found out the customer loyalty in the telecom industry in
Pakistan, using 146 mobile phone users. The study revealed that customer loyalty is shaped
mainly by: trust, service quality, employee loyalty, and switching cost. The results of this study
agree, partially, with a study by Boohene & Agyapong (2011) of 460 customers of Vodafone
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Company in Ghana. This study they found that satisfaction does not necessarily promote to
customer loyalty, on the other hand service quality was found strongly and
positively correlated with loyalty. If customers are satisfied with product and services of service
provider, perceive service quality of customer is positive.
The importance of service quality in the choice decision for a mobile phone operator was also
emphasized by Rahman, Haque, and Ahmad (2011) who conducted a study of 400 mobile phone
users from major cities in Malaysia. This study found that network signal quality is one of the
important determinants in building overall service quality. Besides, service quality, the study
also concluded that price plays significant role in the selection criteria for mobile phone
operators in Malaysia.
Omotayo & Joachim (2011) in their study have mentioned that the service quality has an impact
on customer satisfaction. To conduct this study they have selected 148 users of major telecom
service providers in Nigeria. The result of the study revealed that service quality has a positive
impact on customer satisfaction and customer loyalty
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ARTICLE 2. An Overview Of Indian Telecom Sector
India's teledensity has improved from under 4% in March 2001 to around 75.23% by the end of
March 2014. Cellular telephony continues to be the fastest growing segment in the Indian
telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from
under 2 m at the end of FY00 to touch almost 932 m at the end of March 2014. Tariff reduction
and decline in handset costs has helped the segment to gain in scale. The cellular segment is
playing an important role in the industry by making itself available in the rural and semi urban
areas where teledensity is the lowest
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ARTICLE 3. Satisfied with Quality Yet Wants to Switch:
Case of Satisfied Customer in Telecom Services
Service Quality
Customer loyalty is derived from the customers perception and feelings regarding the quality,
resulting in her satisfaction (Bertrand, 1989). Positive relationship of service quality with
customer satisfaction has been indicated by many researches (Cronin and Taylor, 1992; Danaher
and Mattsson, 1994; Kim et al., 2004). Similarly service quality is also positively associated
with customer preference (Ranaweera and Neely, 2003); profitability (Fornell, 1992;
Danaher and Rust, 1996), and competitiveness, (Rapert and Wren, 1998). To an extreme, it has
been argued that customer satisfaction should lead to customer delight (Oliver, 1999) and
deliver superior value (Parasuraman & Grewal, 2000) by means of quality of the product or
services. Customer delight and superior value are argued to be two means to attain customer
loyalty. Retaining of existing customers is also associated with customer satisfaction (Brown &
Gulycz, 2001). Customers perception of quality or value gets influenced by switching cost
(Fornell, 1992; Lee et al., 2001; Oliver,
1999; Neal, 1999; Woodruff, 1997). Perceived value as comprehensive assessment of the
benefits that the customer gets (Zeithaml, 1988), includes the total price paid.
Switch Intention
How does the assumption hold in a highly competitive service industry? The act of switching
service providers could be due to the influence of past behavior, wherein customer switches due
to habit only. If the context is similar and if the behavior is recurring; then the future response
could be automatic due to habit but if the context is different or the behavior is not well learned,
then the decision making becomes conscious (Ouellette and Wood, 1998; Danner et al., 2008).
Past behavior in such case influences intent, which guides the behavior. If intentions are stable,
past behavior does not relate to subsequent action (Sheeran, et al., 1999), but if intentions are
unstable, past behavior is close predictor of future action. So on what factors the intention to
switch would correlate more in case of telecom industry?
Relationship between customer satisfaction and loyalty is not without debate. Questions have
been raised about the relationship (Mittal and Lassar, 1998) and research indicates that as much
as fifty percent of the satisfied customers switch. The explanation being the extension of quality
dimensions by technical quality and functional quality.
The satisfaction from technical quality is of low contact, whereas satisfaction from functional
quality is of high contact; high contact satisfaction may indicate a lower switch intention.
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There could be intrinsic and extrinsic incentives to switch brands (Mazursky et al, 1987).
Extrinsic motivations (marketing promotions) induced customers to switch inspite of high level
of satisfaction, but it may not be significant for repurchase intention. Intrinsic incentives (desire
to try a new brand) could contribute to lesser degree for a switch
intention.
ARTICLE 4. Porter Five Forces Analysis of the Leading Mobile Cellular Telephony
Service Provider in India
So far very little analysis is done on telecom sector using Porter five forces model. Analysis
indicates that although to meet competition the top service provider is struggling hard but the
presence of strong rivals has put a challenge. From above discussion, we may conclude that the
presence of rivals is the main area that needs companys management serious attention.
Company may follow the strategy of horizontal integration by taking the decision of merger or
acquisition with any of its one or two rivals. The leader should offer special packages for
students / education sector since they are the main service users
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ARTICLE 5. Comparative Study of Major Telecom Providers in India
After a detailed comparison of the telecom service provider companies in India, it was found out
that Airtel outdoes its rest of the competitors in the case of all the three business matrices used
which are Net Sales, Profit after Tax Reduction and Market capitalization. Also the level of
satisfaction of the customers of Airtel is higher than that of other customers. As the analysis done
in this paper is totally based on thedata collected from the online survey, therefore the data
collection could be biased as mostly young people in the age group of 15 to 35 years use the
internet.
Therefore responses of users more than 35 or say 40 years may not have been recorded. To
overcome this limitation, a paperback form of the questionnaire can be used and data can be
collected by personally going to users from all age groups. Secondly, the scope of the research
done in this paper is limited to the Bhopal region. So, the results achieved show the LOS and
LOA of the mobile users in Bhopal region only. This scope could be widened to cover whole of
India to get a nationwide picture.
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ARTICLE 6. Comparative Study on Performance of Public Sector and Private Sector
Telecommunications With reference to wireless Services in India
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2. OBJECTIVES OF STUDY:
1. To study the positive and negative impact of brand extension on the Parent brand image
and vice-verse.
2. To study the impact of brand extension on the brand equity of Parent brand.
3. To examine how perceive quality of brand play role for successful extension.
4. To determine the role of brand extension and product image.
3. SCOPE OF STUDY:
The scope of the study for Telecom Industry is limited to the issue in spectrum allocation
in Ahmedabad.
4. RESEARCH DESIGN:
The research is done in basic Analytical and conclusive ways. The data is being collected
on primary basis. Histograms ,bar charts ,pie charts ,line charts are being used to analyse
and interpret the data. field research is done and data being collected by DSEs of A Star
Enterprises by Questionnaire method.
Research design is the plan and structure of investigation so conceived as to obtain answers
to research questions. The activities and time based plan is made for the better evaluation of
activities and how we must conduct them.
There are two sources of data for research, namely primary and secondary data.
The primary data is relevant to the present study and usually collected by the researcher through
communication methods or interaction with respondents and observation methods. For this kind
of data, survey techniques were used to answer the research questions, which were based on a
structured questionnaire.
Secondary data is gathered from previous studies through various sources such as articles,
internet, organizations database, websites etc. The advantage of secondary data is time saving
and inexpensive in comparison with primary data.
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For this research, primary data was collected in accordance with research phenomenon. The
approach was from the customers perceptions; thus, it required interaction with customers. The
use of questionnaire was suitable in order to interact with respondents to get structured
information and find out consumer satisfaction level from their perspectives. Data collection was
conducted through questionnaire and interactive interviews with customer.
6. RESEARCH METHODOLOGY:
This report follows a two way data collection. First part of data collection is primary and it is
the main data gather through survey done by us .which actually support the industry trend and
purely give idea about what really going in market and what company really need to focus.
Second part of Data collection is entirely based on secondary data, which deals with current
global trend and business scenario in wireless broadband industry. This is required as part of
this research because it will give proper idea to the reader or who so ever is willing to read
about broadband industry.
After collecting data from various sources regarding the four objective. It was then enter in
excel and was organized in such a manner to limit the no of table so that comparison becomes
easy for all the objectives.
For Benchmarking all the data regarding Tariff plans and device price was in single tabular
format so that ratio comparison on data and price of tariff could be done.
And for reaming all three objective percentage conclusion was done to get different
interpretation of survey data.
1.Primary Data:
Data (on tariff plans) from official website of competitors were taken and it include following
competitors.
MTS
Airtel
Vodafone
RCOM (Reliance communication)
Idea
BSNL
Also data regarding OTF (Retailers margin On FRC), MOP and hardware margin were taken
from various retailers. 30-35 retailers were contacted for this purpose.
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To know customer requirement Vis a Vis product offered in market-
Sample questionnaire were used to get data from past and current customers. Questions were
mainly focusing on user data requirement, uses of internet based on time, type of tariffs plan
used by them. 90 (potential customers) and 40 (current customers) respondents were taken for
this purpose.
2. Secondary data:
Secondary data was taken from website and publish journal or article. Data regarding various
aspect of broadband industry such as penetration level, Growth, top ten countries in
broadband market globally Etc.
7. SAMPLING PLAN:
Sample Segment:
People of Ahmedabad City
Sample Size:
The total sample size of project is 50.
Sampling method:
Convenient sampling method is used
8. TIME LINE:
9. EXPECTED CONTRIBUTION:
The expected contribution for this research project in Tata Teleservices Ltd is based on your
knowledge and how you implement that knowledge and skills to sustain with lead in the
Telecom Sector which are as under:
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Focus will be on SME sector, where we have to visit SME Organizations and extract
data from them for the survey purpose through the questionnaire provided to us.
Also we have to ensure profiling of available base and marketing survey and run various
campaign on it.
We will have to figure out actual need of existing and potential customers and their
mindset with telecom industry and which is helpful to understand the customer in a better
way.
This research consists of 8 chapters, such as Research Methodology, Industry profile, Company
profile, Introduction of the topic, Research Proposal, Data Analysis and interpretation, Findings,
Recommendations and Conclusion.
11. LIMITATIONS:
There were certain limitations of this study that are enlisted below:
The Geographical area of target population is of people of Ahmedabad City only.
Time of submission, due to academic schedule, limited time frame is available to
complete this research.
The findings of the current study were applicable only to the 200 respondents.
Resources for the project, as the customers are spread all over the Country; a large
amount of financial resources is required.
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CHAPTER 2
INDUSTRY PROFILE
The year 2016 is a landmark year in the Indian telecoms industry. The much awaited sector
consolidation set-in. Some of the key drivers for market consolidation include increasing
pressure on profitability, hyper-competition, spectrum trading and sharing guidelines and
favourable M&A policy. In addition, the sector also witnessed a number of spectrum trading and
sharing deals.
In August 2016, spectrum auction took place with the largest quantum of spectrum being made
available by the Government of India. However, the auctions witnessed muted response,
primarily on account of high reserve prices. Of the 2,355 megahertz (MHz) total spectrum across
seven bands put up for auction, only 40% of the spectrum got sold with no activity seen in
700MHz and 900MHz band. Telecom operators bid selectively to plug coverage gaps and
enhance spectrum portfolio, especially for 4G services.
In another significant development, 2016 saw the entry of a Greenfield 4G operator, introducing
aggressive tariff plans, with free voice calls and low-cost data. It is expected to usher in
exponential growth in data. Leading operators have launched 4G services in select circles, which
would further boost data growth.
The Indian telecoms sector has traditionally been voice driven. Commoditizing voice calls and
offering tiered data tariffs would shift the business model from a voice to a data centric one.
India is already one of the largest smartphone markets in the world in terms of volume.
According to Ovum, Indias smartphone penetration stood at 24% of total connections in 2015.
The average handset price for smartphones has been declining, with an entry-level 4G
smartphone available for INR2,999. Prices are expected to further reduce helping drive data
usage.
The average data consumption per user is increasing, with increased adoption of smartphones
and availability of content. For example, 3G data consumption per user has grown to 753
MB/month in 2015 as compared to 338 MB/month in 2011. The overall network traffic growth is
expected to mirror the increases in average data consumed on a handset as more people start
using advanced data services. The overall data traffic grew by 50% y-o-y in 2015, driven by an
85% surge in 3G data traffic, according to the Nokia Mobile Broadband Index.
Mobile banking transactions are on the rise due to increased smartphone adoption. Between
FY13 and FY16, mobile banking transaction volume and transaction value have increased at a
CAGR of 90% and 306%, respectively. This reflects that wireless smart devices are becoming a
preferred medium for banking transactions.
In addition, the digital payments ecosystem is growing by leaps and bounds in India. This is
largely possible as India is transitioning to a digital economy. Digital wallets witnessed
exponential growth in the back of the recent demonetization drive by the Government of India.
The proportion of mobile wallet transaction volume to total payment transactions has increased
from 0.4% in FY13 to 4% in FY16, and is expected to grow significantly in future. Further, with
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the launch of Payments Bank by a leading operator in 2016, financial inclusion for the unbanked
would get a major boost.
Mobile tariff in the sector - How is it going to impact sector in 2017?
For a large part of 2016, mobile tariffs remained steady. However, with the disruptive entry of a
new operator, the sector witnessed innovative tariff structures. The biggest impact is the advent
of unlimited voice calls along with tiered data plans for a fixed rental.
The entry level unlimited voice call tariff (primarily on-net and in few cases all call) is similar
for most of the operators and range between INR145 and INR 149. Along with unlimited voice,
300 MB of mobile data is bundled. This price point is expected to resonate with a majority of the
population, as it is closer to the monthly average revenue per user (ARPU) for access services at
INR141 (for quarter ending June 2016) and that of operator voice ARPU. For INR345 to
INR350, most of the operators are offering unlimited voice calls to all networks. The year 2016
ushered in bundled voice and data integrated plans. Increasingly, this is going to be the norm in
2017, with more innovative and segmented packages in the offering.
Headline mobile data tariffs have largely remained stable, but operators have increased data
allowance significantly. Effectively, the price per GB is declining. For higher data
denominations over 2GB, the price cuts had been up to 67%, while for data recharges of 1GB or
lower, price cuts of up to 45% had been initiated. In the short term, mobile data revenue growth
is likely to be affected, due to the lower tariff.
However, in the long term lower tariffs are not sustainable, with high spectrum fees and ongoing
capex requirements. To put it into perspective, the cumulative bid in spectrum auctions since
2010 amounted to INR3.5 lakh crore, which is quite significant considering sector revenue of
approximately INR2.6 lakh core (FY16). As a result, the sector debt level has increased to
approximately INR4.2 trillion after the 2016 spectrum auctions.
Moreover, the financial distress of operators and continuous pressures on profitability have set-in
sector consolidation. The Indian telecoms sector is likely to stabilize to a five to six players in the
long term. Further decline in data tariffs and erosion of domestic voice revenue would impact
operators' profitability and sustainability.
As compared to developed and emerging telecoms market, India boasts of one of the lowest data
tariffs. For instance, data rate for 1 GB data in India before tariff revision was priced at US$3.5.
In comparison, the cost of 1 GB data equates to: US$30 in Japan; US$18 in Korea; US$15 in
UK, China and Germany; US$10 in the US; US$7,5 in Spain; US$6 in South Africa.
What is the level of pressure on telcos margin due to dip in tariff?
Considering that wireless voice revenues accounted for approximately 65% of the total circle
revenues in India in FY16, offering free voice is likely to have the biggest impact on operator
revenue. Going forward, data revenues are likely to cannibalize voice revenues as well. This is
adversely going to impact margins of operators. Customer acquisition cost would increase for
operators owing to increased competition. In addition, operators are likely to face increased
pressures to retain customers, offering freebies and larger allowances, adversely impacting
margins.
With prevalent pricing pressures due to free offers and lower tariffs, operators are likely to
witness stagnant EBITDA growth for the next six to eight quarters. It is going to be impacted by
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near-term decline in wireless data revenue growth. Data revenue growth is likely to decline to
2% q-o-q and 13% y-o-y by 4Q17, as compared to 50% y-o-y growth in 4Q16. In addition, voice
and data realization are expected to drop significantly over the next few quarters. Overall,
margins are expected to decline by 250 to 300 basis points in 2017 and remain under pressure in
2018 as well.
With lower incremental revenue and stagnating EBITDA, profitability of operators is expected to
remain subdued. A lot would depend on the data volume growth of all operators, once the sector
EITDA is stabilized.
Telecom is one of the fastest-growing industries in India. Today India stands as the second-
largest telecommunications market in the world. The mobile phone industry in India would
contribute US$ 400 billion in terms of gross domestic product (GDP) of the country in
2014. This sector which is growing exponentially is expected to generate about 4.1 million
additional jobs by 2020, as per Groupe Speciale Mobile Association (GSMA).
In the period April 2000 to January 2014, the telecom industry has got in foreign direct
investments (FDI) of about US$ 59,796 million, which is an increase of 6 per cent to the total
FDI inflows in terms of US$, as per report published by Department of Industrial Policy and
Promotion (DIPP).
Indias global system for mobile (GSM) operators had 4.14 million rural subscribers as of
January 2014, bringing the total to 285.35 million.
Data traffic powered by third generation (3G) services grew at 146 per cent in India during 2013,
higher than the global average that saw usage double, according to an MBit Index study by
Nokia Siemens Networks (NSN).
India's smartphone market grew by 171 per cent in 2013, to 44 million devices from 16.2 million
in 2012, as per research firm IDC India. The increasing popularity of bring-your-own-device
(BYOD) in the workplace is further adding momentum to the smartphone market.
Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to 74% in June
2013. This great leap in both number of consumers as well as revenues from telecom services
has not only provided sufficient contribution in Indian GDP growth but also provided much
needed employment to India youth.
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CHAPTER 3
COMPANY PROFILE
COMPANY INTRODUCTION :
Tata Teleservices Limited spearheads the Tata Groups presence in the telecommunication
sector. It is one of Indias leading mobile telecom service providers delivering mobile
connectivity and services to consumers across the country. The company has been at the
forefront of redefining the telecom experience in India, launching innovative products and
services, playing an enabling role in simplifying consumer lives and expanding digital inclusion.
Tata Teleservices Limited, along with Tata Teleservices Limited has a wide presence across key
geographies, spanning over 19 telecom circles and operations in towns and villages across the
country. The company offers integrated telecom solutions to its customers across wireline and
wireless networks on GSM, CDMA & 3G platforms.
In 1996, Tata Teleservices Limited was the pioneer of the CDMA technology platform in India.
It embarked on a growth path after the acquisition of Hughes Tele.com (India) Limited by the
Tata Group in 2002. Being a part of the Tata Group, where customer-centricity is a way of life,
the company revolutionised mobile voice calling through its philosophy of pay per use in 2009.
This initiative has been widely hailed as one of the biggest customer centric initiatives by any
telecom operator in India. In November 2010, Tata Teleservices Limited became the first private
telecom operator to launch 3G services in India. Over the years, Tata Teleservices Limited has
been a key driver of the telecom revolution in the country.
Tata Teleservices Limited is one of the most reliable telecom service providers for its integrated
voice and data services and is also a key player in mobile data usage segment. Additionally,
TTSL commands significant customer loyalty in the large screen data space with its Tata Photon
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family of CDMA, 3G and Wi-Fi products. In non-voice services, the company through its wide
range of pioneering offerings such as e-Governance, Machine to Machine (M2M) and m-
Remittance (m-Rupee) services, has helped in improving citizen services, public safety and
governance.
Tata Teleservices Limited is a market leader in the Enterprise space with a wide range of
products and services, and numerous innovations across business verticals. It provides next
generation Voice, Data and Managed solutions to large and small medium enterprises through its
wide optic fiber network, channel partner network, dedicated sales and service teams.
Tata Teleservices Limited has won numerous national and global awards. TTSL was named The
Best Emerging Markets Carrier by Telecom Asia and received 8 awards at the World HRD
Conference, most notably the 5th Best Employer in India Award. The company also received 3
awards at the Telecom Operator Awards 2010 from Telenet; Best Company, CEO of the Year,
Best Quality of Service and the Business Standard Award for 'Most Innovative Brand of the
Year'. Tata Docomo has also been recognised as the best Utility VAS Service Provider and
Best Mobile Broadband Service Provider by Frost & Sullivan.
Tata Teleservices is one of the most awarded brands in India for marketing excellence. Its
brands, Tata Docomo and Tata Photon, have consistently been recognized at the most prestigious
marketing forums like Abbys, Effies and Emvies for the outstanding creative and digital
marketing programs.
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BRANDS OF TATA TELESERVICES LTD:
Tata Teleservices is one of the most awarded brands in India for marketing excellence. Its
brands, Tata Docomo and Tata Photon, have consistently been recognized at the most prestigious
marketing forums like Abbys, Effies and Emvies for the outstanding creative and digital
marketing programs.
TATA DoCoMo usually referred to as DoCoMo (not to be confused with NTT DoCoMo), is
an Indian cellular service provider on the GSM and platform-arising out of the strategic joint
venture between Tata Teleservices (subsidiary of Indian conglomerate Tata Group) and
Japanese telecom giant NTT DoCoMo (subsidiary of Nippon Telegraph and Telephone) in
November 2008. It is the country's sixth largest operator in terms of subscribers (including
both GSM and CDMA)
Tata DoCoMo received a license to operate GSM telecom services in 19 telecom Circles and has
been allotted spectrum in 18 of these circles, under the brand "TATA DoCoMo". Tata DoCoMo
launched GSM services on 24 June 2009. It first launched in South India and currently operates
GSM services in 18 of 22 telecom circles. It has license to operate in Delhi but has not been
allocated spectrum from the Government. DoCoMo provides services throughout India. Tata
DOCOMO offers both prepaid and postpaid cellular phone services. It has become very popular
with its one second pulse especially in semi-urban and rural areas.
On 5 November 2010, Tata DOCOMO became the first private sector telecom company to
launch 3G services in India. Tata DOCOMO had about 42.34 million users at the end of
December 2010.
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On 20 October 2011, Tata DoCoMo brought its brands - GSM, Photon, and INTERNET
TATADOCOMO Walky - under the Tata DoCoMo name. All subscribers to these services
were migrated to the DoCoMo brand on 20 October 2011.
Rebranding
On 20 October 2011, Tata DoCoMo brought its brands - CDMA, GSM, Walky (Fixed
Wireless Phone), Photon, INTERNET - under the Tata DoCoMo name. All subscribers to
these services were migrated to the Tata DoCoMo brand on 20 October 2011.
The companys other brands - Virgin Mobile and T24 - are not part of the rebranding and will
retain their names.
VALUES
Fairness through meritocracy.
Trust based on Accountability.
Tenacity for results.
Pioneering Spirit.
Excellence in Execution.
Leadership with Humility
MISSION
To empower every Indian to connect with the world affordably
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12.QUESTIONNAIRE
6. Industry type:
Agriculture
Automobile
Banking & insurance
Manufacturing
Services
IT
Engineering & construction
Media & Entertainment
Fashion & textile
Other
7. Designation:
IT
Finance
Administration
Marketing & Sales
Management
HR
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Other
11. If yes, than which of the following telecom services does your organization currently
use?
Dongle
Broadband
Lease Line
PRI
SIP Trunk
Mobile apps
Audio Conference
Cloud Based Services
Toll Free Services
MPLS
Other
12. From Which Source You get Information About Tata Docomo Business Services?
Website
Social media
Salesperson
Advertisement
Hoardings
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Others
14. What is the most important factor for you as a customer for considering a Internet
services provider?
Network
Minimum Downtime
Pricing
Smooth Connectivity
Services
Service Level Agreement(SLA)
16. What are your expectations from Tata Docomo Business Services?
Good Quality
Services
Connectivity
Network
Other
17. How would you rate your organization in terms of leveraging technology as a business
enabler?
Current: 1 2 3 4 5
Near Future: 1 2 3 4 5
Low Extremely high
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18. For each of the following dimensions, please indicate your perception by selecting any
one option.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
____________________________
13.INTRODUCTION OF INDUSTRY
Telecom is one of the fastest-growing industries in India. Today India stands as the second-
largest telecommunications market in the world. The mobile phone industry in India would
contribute US$ 400 billion in terms of gross domestic product (GDP) of the country in
2014. This sector which is growing exponentially is expected to generate about 4.1 million
additional jobs by 2020, as per Groupe Speciale Mobile Association (GSMA).
In the period April 2000 to January 2014, the telecom industry has got in foreign direct
investments (FDI) of about US$ 59,796 million, which is an increase of 6 per cent to the total
FDI inflows in terms of US$, as per report published by Department of Industrial Policy and
Promotion (DIPP).
Indias global system for mobile (GSM) operators had 4.14 million rural subscribers as of
January 2014, bringing the total to 285.35 million.
25
Data traffic powered by third generation (3G) services grew at 146 per cent in India during 2013,
higher than the global average that saw usage double, according to an MBit Index study by
Nokia Siemens Networks (NSN).
India's smartphone market grew by 171 per cent in 2013, to 44 million devices from 16.2 million
in 2012, as per research firm IDC India. The increasing popularity of bring-your-own-device
(BYOD) in the workplace is further adding momentum to the smartphone market.
Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to 74% in June
2013. This great leap in both number of consumers as well as revenues from telecom services
has not only provided sufficient contribution in Indian GDP growth but also provided much
needed employment to India youth.
BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent
market share. Next is Bharti Airtle at 10.9% followed by Tata and Reliance at 5% and 4.1%
respectively.
BSNL as a company is growing and showed annual revenues of approximately $4.5 billion as of
2014. BSNL is serving more than 125 million customers across the country and is catalyst in
checking the price point for telecom services.
Also, with the government intensifying its rural focus, only BSNL can turn into reality the next
wave of rural telecom penetration.
BSNL is a 100% Central Government entity and employees with BSNL are entitled to get
salaries and perks as decided by Government of India and not by BSNL
However both, MTNL and BSNL are plagued by declining revenues coupled with high costs.
BSNL has massive infrastructure, manpower, systems, and 80 per cent of landlines and 90 per
cent of broadband connections in India are operated by it.
Vodafone is investing nearly US$ 3 billion over the next two years in India in expanding its
network infrastructure and distribution channel in the country, as per Vittorio Colao, CEO,
Vodafone Plc.
BlackBerry plans to set up enterprise solutions centres to educate corporate customers about
various BlackBerry Enterprise Service (BES) 10 solutions. "India is one of the fastest growing
markets in terms of smartphone and mobile data adoption, said according to Sunil Lalvani,
Managing Director (MD), BlackBerry India.
Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the country in
the next two years.
Booming sectors
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The tide has turned for the telecom sector in India, as growth and profitability has accelerated in
recent times. Tower companies are reaping benefits of a turnaround in the sector as operators
have started investing in networks to boost data penetration.
However it is in the countrys booming mobile segment in which the major battles are being
fought. Three major private players Bharti, Reliance and Vodafone - with a formidable 54%
share of the market between them, lead a large field of mobile operators. State-owned enterprises
BSNL and MTNL have also been making their presence felt with a combined market share of
12%.
A look ahead
According to Craig Wigginton, vice chairman and U.S. Telecommunications leader, Deloitte &
Touche LLP, the big challenge for the telecom industry in 2014 which also presents a major
growth opportunity for the sector is that consumers are getting addicted to connectivity and
speed.
The ongoing expansion of the mobile ecosystem, coupled with demand for high-bandwidth
applications and services such as video and gaming, is keeping pressure on the industry to
increase the availability and quality of broadband connectivity.
What does this mean for players in the sector? Carriers will continue to pursue technological
advancements to handle demand, including offloading some mobile bandwidth needs to Wi-Fi,
which is proving an effective complement to mobile networks. At the same time, long-term
spectrum availability, spectrum efficiency, small cells and continued backhaul improvements are
likely to be a key focus to assure continued mobile broadband momentum.
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14.PESTEL ANALYSIS OF TELECOMMUNICATION INDUSTRY
The telecommunication industry has gone through a lot of changes to stand out in the
competitive business world. The telecommunication industry has experienced a steady GDP
growth during the last five years. The subcontinents economy is expected to grow momentarily
over the next five years. A great PESTEL analysis of the telecommunication industry is one of
the great strategies that have helped understand the industry for many interested investors. The
main categories that define the PESTEL analysis are political, economic, social and
technological factors. Other factors are categorized on legal and environmental basis.
Approximately 20% world population has access to internet today. The industry is vast and offer
widespread career opportunities and this has helped develop world economy. Development in the
industry include functional jobs in the mobile telephony, wireless communication, GPRS, GSM,
CDMA technology, VoIP AND optical network amongst others. Besides all these developments
in the telecommunication industry, many investors have problems figuring how to succeed in this
industry.
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3. Social factors
The common social factors that are associated with telecommunication industry are all about
career attitude and safety. Many companies rely on telecom industry to carry out conference
calls, instant messaging, emailing and for daily phone calls.
4. Technological factors
There has been matchless advancement in the technological sector. New phone models and
communication are being produced on daily basis and this clarifies that all companies are
focused on new technologies in the market.
5. Legal factors
Legislation issues have always impacted the telecommunication industry. There market has also
opened doors for imports and exports a move that has increased the number of new technological
devices in the market. Employment laws have also impact the industry and this has increased
productivity in the market.
6. Environmental factors
These are the environment related factors that surround the telecommunication sector.
Companies need to consider public opinions in order to have a great way to excel in the market.
Global warming and climate change are a few things that many companies have to look at and
work their way out.
Majority of the telecommunication companies operate under competitive and rapidly changing
environments. For any company or investor to excel in the field, it is wise to keep with the
changing environment. Any telecommunication company should also be able to facilitate its
customers with exceptional and quality material at lower prices than its competitors. The
products and services should also keep up with customer wants and the society in general.
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