RESEARCH REPORT

ON

SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE

AWARD FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:

MR. NEERAJ SHUKLA AMIT KUMAR SINGH
ASST. MANAGER RETAIL- BIG MBA3rd SEMESTER
TATATELE SERVICES,
LUCKNOW N.I.E.C., LUCKNOW

1
Partial knowledge is an important suffix to theoretical knowledge; one

can not merely rely upon the theoretical knowledge. Classroom make

the fundamental concept clear, but practical study in a industry has

significant role to play In a subject of business management to

develop managerial skills, it is necessary that they combine their

classroom learning with the knowledge of real business environment .

I am extremely happy to present this research report before the

esteemed teachers/ management entitled “STUDY OF RETAIL

TCOMPETITION IN TELECOMMUNICATION SECTOR IN U.P.

EAST CIRCLE”

It has not only helped me to enhance my knowledge about Retail

sector and responsibilities towards customer’s welfare but also gave

new dimension to knowledge about psychology and attitude of

customers towards the companies excusive retail units.

2
 “One who is learning to walk seeks assurance in the several hands that are

there to hold him against faltering and several voices that cheer him on. I have

drawn this analogy to script my gratitude towards several people who have

facilitated my summer internship.”

Firstly I would like to express my deepest sense of gratitude and sincere thanks

to Mr. Neeraj Shukla (ASST. MANAGER-BRANDED RETAIL-BIG) for giving

me a golden opportunity to do my summer training at Tata Indicom TATA

TELESERVICES LTD. (TTSL) I am highly indebted to the whole staff of TTSL,

Lucknow for their continuous support, guidance and encouragement in spite of

his procurement.

I would also like to express my special gratitude towards Prof. DR. C.R

BHAROLE , N.I.E.C, and Lucknow. Whose guidance helped lay the foundation of

this project AMIT KUMAR SINGH

Tata Teleservices

3
Tata Teleservices is part of 98 co the Rs. 119,000 Crore (US$ 29

billion) Tata Group that has over mpanies, over 289,500 employees

and more than 2.9 million shareholders. With a committed

investment of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY

2006), the Group has a formidable presence across the telecom

value chain.

Tata Teleservices spearheads the Group’s presence in the telecom

sector. Incorporated in 1996, Tata Teleservices was the first to

launch CDMA mobile services in India with the Andhra Pradesh

circle.

Starting with the major acquisition of Hughes Tele.com (India)

Limited [now renamed Tata Teleservices (Maharashtra) Limited] in

December 2002 the company swung into an expansion mode. With

the total Investment of Rs. 19,924 Crore, Tata Teleservices has

created a Pan India presence spread across 19 circles that include

Andhra Pradesh, Chennai, Gujarat, Karnataka, Delhi, Maharashtra,

Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana,

Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala,

Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 2000 1x technology platform in India,

Tata Teleservices has established a robust and reliable 3G ready

telecom infrastructure that ensures quality in its services. It has

4
partnered with Motorola, Ericsson, Lucent and ECI Telecom for the

deployment of a reliable, technologically advanced network.

The company, which heralded convergence technologies in the

Indian telecom sector, is today the market leader in the fixed

wireless telephony market with a total customer base of over 3.8

million.

Tata Teleservices’ bouquet of telephony services includes

Mobile services, Wireless Desktop Phones, Public Booth

Telephony and Wire line services. Other services include

value added services like voice portal, roaming, post-paid

Internet services, 3-way conferencing, group calling, Wi-Fi

Internet, USB Modem, data cards, calling card services and

enterprise services.

Some of the other products launched by the company include

prepaid wireless desktop phones, public phone booths, new

mobile handsets and new voice & data services such as

BREW games, Voice Portal, picture messaging,

polyphonic ring tones, interactive applications like news,

cricket,astrologyetc.

5
Tata Indicom redefined the existing prepaid mobile market in

India, by unveiling their offering – Tata Indicom ‘Non Stop

Mobile’ which allows customers to receive free incoming

calls. Tata Teleservices today has India’s largest branded

telecom retail chain and is the first service provider in the

country to offer an online channel http://www.i-choose.in/ to

offer postpaid mobile connections in the country.

Tata Teleservices has a strong workforce of 6000. In

addition, TTSL has created more than 20,000 jobs, which will

include 10,000 indirect jobs through outsourcing of its

manpower needs.

Today, Tata Teleservices Limited along with Tata

Teleservices (Maharashtra) Limited serves over 25 million

customers in over 5000 towns. With an ambitious rollout plan

both within existing circles and across new circles, Tata

Teleservices offers world-class technology and user-friendly

TELECOM INDUSTRY PROFILE

The telecommunications industry has made its mark in history.

Telecom Industry is one of the fastest growing sectors in the country.

Telecommunications has been zooming up the growth curve at a

6
feverish pace in the past few years. It is the transmission of signals

over a distance for the purpose of communication. Today,

telecommunication is widespread and devices that assist the process,

such as the television, radio and telephone, are common in many parts

of the world. Indian telecommunication firms added 6.3 million new

subscribers in February 2007, taking the total user base above 203

million. Wireless service providers continued to dominate user growth

by adding 6.23 million subscribers in February, while 67,000 new fixed-

line users signed up.

The call rates of as low as 2-3 US cents a minute are luring customers

in the world's fastest-growing wireless services market. Britain’s

Vodafone paid more than US$ 11 billion for controlling a major chunk

of the fourth-largest mobile operator Hutchison Essar. In March, Indian

GSM mobile phone service providers signed up a record 6.1 million

customers, taking total users to 121.4 million, The March increase was

the highest-ever monthly rise and compared with 4.9 million new users

in February.

The combined revenue of all operators from mobile businesses would

be more than double to US$ 33.1 billion by 2010, from about US$ 12.8
billion in 2006. The total revenue of all telecom operators is also set to
nearly double to US$ 43.6 billion in four years, from US$ 22.5 billion in
2006. The revenue share of mobile business would rise to 76 per cent
in the same period, from 57 per cent currently.
7
India, which is adding over six million mobile subscribers every month,
had recently surpassed Russia to become the third largest mobile
market in the world after China and the US. The total mobile subscriber
base in the country is likely to reach 425 million by March 2010 With
Bharti Airtel (GSM) and Reliance (CDMA and GSM) emerging as the top
two mobile operators in terms of number of subscribers the total
mobile subscriber base in the country is likely to reach 425 million by
March 2010.

With the Government’s decision to increase the foreign direct

investment (FDI) to 74% in this sector has generated interest among
global investors. The share of telecom in FDI rose from 3-4 per cent to
12-15 per cent in the calendar year 2006. UK-based Intec Telecom
Systems, which offers operational support, access billing and retail
billing services for telecommunications operators worldwide, has lined
up a US$ 12 million expansion plan for its Bangalore office.

Cellular service provider Aircel has planned to expand its network to

double its subscriber base of 5 million over 18-24 months. Swedish
telecom equipment giant Ericsson announced an investment of US$
100 million every year in India with an option to enhance it depending
upon the growth.

Cisco is starting a trial factory in Chennai for making Internet protocol-

based phones, as part of its US$ 1.1-billion investment plan for the
country. India offers an unprecedented opportunity for telecom service
operators, infrastructure vendors, manufacturers and associated
services companies. Indian cellular operators have lined up
investments of about US$ 20 billion over the next two years to bring
over 80 per cent of the population under mobile coverage. The planned

8
investment for the next couple of years is 50 per cent higher than what
has been invested in the last 12 years.

The total mobile subscriber base in the country is likely to reach 425
million by March 2010 with Bharti Airtel (GSM) and Reliance (CDMA and
GSM) emerging as the top two mobile operators in terms of number of
subscribers.

Telecommunication network is the backbone of Communication sector.

It is difficult to predict the future of telecommunications technologies,
services, and applications that have not yet been invented.

The monthly addition to the mobile phone network is shown in the

Appendix (TABLE 1.1). Also Growth of the telecommunication network
from April 2006- February 2007 is shown in the TABLE (1.2).

9
 LATEST NEWS ABOUT INDIAN TELECOM INDUSTRY

The telephone subscriber base in India has crossed 200 million. The GSM has
more than half of this subscriber base - that is 115.3 million. Total subscriber
base (mobile and fixed) of CDMA (code division multiple access) mobile group
is has already crossed the 200-million-mark. The total phone subscriber base
was more than 196 million.

While Bharti Airtel continues to be the industry leader with 35.4 million users
and a 30.74% of the GSM market share, the gap between the second and the
third players is marginal. The state-run Bharat Sanchar Nigam Ltd (BSNL) as
the second biggest GSM player has 25.4 million subscribers (22.07% share),
and the third largest GSM player Hutchison Essar has 25.3 million users
(21.98%).

MTNL's GSM subscriber base in Delhi and Mumbai touched 2.578 million,
while Spice Telecom has also over 2.5 million subscribers. Aircel's user base
in February stood at 5.094 million, followed by Reliance Telecom's 4.11
million subscribers.

The number of Internet subscribers grew at 25 per cent, while broadband

users grew from 0.18 million to 1.32 million in 2005-06. The number of
broadband and Internet subscribers in India is expected to reach 20 million
and 40 million respectively by 2010.

With the addition of nearly 70 million subscribers, the financial year

witnessed the highest ever increase in subscribers base during a financial
year after the opening up of telecom sector for competition, says the
Telecom Regulatory Authority of India (TRAI). According to TRAI, the
subscriber base for telephony services continues its growth during March
2007 with 3.93 million subscribers being added during the month. A total of
66.51 millions subscribers have been added during the financial year 2006-
2007 as compared to 41.91 millions in 2005-06, registering an increase of
58% in annual growth.

Wireless services subscriber base increased by 3.53 million in March 2007 as

10
compared with 6.21 million in February 2007. This lower growth in the month
of March 2007 can be attributed to insistence by the Government to ensure
verification of subscribers. The total wireless subscribers at the end of March
2007 are 166.05 million as compared to 98.78 million in March 2006
registering an annual growth of around 68%.

In the Wireline segment a total of 0.40 million subscribers were added during
March 2007 as compared to a decline of 0.02 million in February 2007. With
this the total subscriber base of wireline reached 40.78 million in March 2007
as compared to 41.54 million in March 2006 registering a decline 1.82%.

The gross subscriber base reached 206.83 million at the end of March 2007.
The teledensity is 18.31% at the end of March 2007 as compared to 12.80 at
end of the March 2006 registering an increase of 43%.

The Broadband connections (>256 Kbps download) in the country have

touched 2.30 millions at the end of March 2007 as compared to 1.35 millions
in March 2006 registering a growth of 70%. The broadband subscribers were
2.21 million in February 2007 and thus there is addition of 0.09 million
broadband subscribers in March 2007.

11
1. Preface 1

2. Acknowledgement 2

3. Executive Summary 3

4. Table of Content 4

5. Problem Definition 5

6. Research Objective 6

7. Company Profile (TATA Group) 8

8. Company Profile (TTSL) 12

9. TATA TELE SERVICE (TTSL) 17

7. Research Methodology 25

8. Data Analysis 34

9. Findings 44

10 Recommendations 46

11. Limitations of the Project 50

12. .Bibliography 53

13. Annexure 54

12
This project report is on the topic “STUDY OF RETAIL COMPETITION IN

TELECOMMUNICATION SECTOR IN U.P. EAST CIRCLE”

In this report, I have tried my best to find out the retail competition in U.P. East

circle on the basis of survey in a clear and understandable manner.

I have taken a sample size of 75 each for exclusive retail showroom of company

and retail mini stores of Lucknow city. Although this sample size is very small to

represent the whole market but there was no choice because of time constraint,

yet I have to cover every type of consumer.

I have demonstrated the data gathered through various charts. During my

survey I visited the exclusive showrooms of all the telecom companies working in

UP-East circle and analyzed Value Added Services (VAS) and their schemes

with respect to its competitor’s.

13
 The purpose of research is to discover answers to question through the

application of scientific procedure. The main aim of research is to find out the

truth which is hidden and which has not been discovered as yet. Though each

research study has its own specific purpose, I may think of research objectives

as falling into a number of following broad groupings:

1 .To find-out the information about exclusive retail unit.

2. To find-out the information about the frequency of customer walk- in in

each unit.

3. To find-out the no. of retail unit of different company.

4. To find out retail space/ layout specification.

5 .To analysis the respondents views about us Tata Indicom (RBU)

Research objective of my project is” study of retail competition in u.p. circle”

TATA TELESERVICES (TTSL).

14
15
Tata Group profile

“Leadership with trust”

The Tata Group comprises 93 operating companies in seven business sectors:

information systems and communications; engineering; materials; services;

energy; consumer products; and chemicals. The Group was founded by Jamsetji

Tata in the mid 19th century, a period when India had just set out on the road to

gaining independence from British rule. Consequently, Jamsetji Tata and those

who followed him aligned business opportunities with the objective of nation

building. This approach remains enshrined in the Group's ethos to this day.

The Tata Group is one of India's largest and most respected business

conglomerates, with revenues in 2004-05 of $17.8 billion (Rs 799,118 million),

the equivalent of about 2.8 per cent of the country's GDP, and a market

capitalization of $45.1 billion. Tata companies together employ some 215,000

people.

16
The Group's 32 publicly listed enterprises — among them standout names such

as Tata Steel, Tata Consultancy Services, Tata Motors and Tata Tea — have a

combined market capitalization that is the highest among Indian business houses

in the private sector, and a shareholder base of over 2 million. The Tata Group

has operations in more than 40 countries across six continents, and its

companies export products and services to 140 nations.

The Tata family of companies shares a set of five core values: integrity,

understanding, excellence, unity and responsibility. These values, which have

been part of the Group's beliefs and convictions from its earliest days, continue to

guide and drive the business decisions of Tata companies. The Group and its

enterprises have been steadfast and distinctive in their adherence to business

ethics and their commitment to corporate social responsibility. This is a legacy

that has earned the Group the trust of many millions of stakeholders in a

measure few business houses anywhere in the world can match.

17
 Tata Indicom

The Tata Group's commitment to building a substantial presence in India's

telecom industry has seen it play a leading role in the development of the

country's communications infrastructure. The telecom services of the Group are

offered under the brand name Tata Indicom, and cover all segments, from retail

and enterprise to wholesale and international. The objective is to make Tata

Indicom the preferred telecommunications choice of customers across the

country.

The Tata Indicom Enterprise Business Unit (TIEBU) is the central, specialized

enterprise sales and marketing unit for the Tata Group's telecom initiatives. The

unit is the benchmark telecom player in the enterprise space and was formed

with a view to providing customized, end-to-end voice and data solutions to

customers across India. It delivers cost-effective, integrated solutions that are

designed to fulfil the most complex communication needs.

The Tata Group's telecom initiatives are currently spread over four enterprises:

Tata Teleservices and its subsidiaries, namely Tata Teleservices (Maharashtra),

Tata Communications and Tata Power Broadband, a division of Tata Power. The

vision is to ensure that the business operates seamlessly across these entities,

while offering customers a one-stop solution.

18
Tata Teleservices
Profile

Tata Teleservices (TTSL) was India's first provider of CDMA-based

telecommunications services. The company provides the full range

of telecom services spanning mobile, wireless, wireline, public booth

telephony and internet services, including service portals and

handsets.

Incorporated in 1996, the company along with its subsidiary Tata

Teleservices (Maharashtra) (TTML) serves 25 million customers in

over 5,000 towns in India. It was the first to launch CDMA mobile

services in India with the Andhra Pradesh circle. Today it has a pan-

India presence across 19 circles that include Andhra Pradesh,

Chennai, Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil

Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal

Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata,

Madhya Pradesh and West Bengal.

TTSL has a 3G-ready telecom infrastructure in partnership with

Motorola, Ericsson, Lucent and ECI Telecom. The company, which

heralded convergence technologies in the Indian telecom sector, is

19
today the market leader in the fixed wireless telephony market with

a total customer base of over 3.8 million.

Areas of business

TTSL's bouquet of telephony services includes mobile services,

wireless desktop phones, public booth telephony and wireline

services. It also provides value added services such as a voice

portal, roaming, post-paid internet services, three-way conferencing,

group calling, wi-fi internet, USB modem, data cards, calling card

services, enterprise services and new voice and data services such

as BREW games, voice portal, picture messaging, polyphonic ring

tones, interactive applications like news, cricket, astrology, etc.

It has India’s largest branded telecom retail chain and is the first

service provider in the country to offer an online channel

http://www.i-choose.in/ to offer postpaid mobile connections in the

country.

20
Tata Teleservices is part of the Rs. 120,000 Crore (US$ 29 billion) Tata Group,
that has over 87 companies, over 330,000 employees and more than 2.8 million
shareholders. The Group has a formidable presence across the telecom value
chain.

Tata Teleservices (Maharashtra) Limited (TTML) spearheads the Tata Group's

presence in the Indian telecom sector by being the premier telecom service
provider, licensed to provide services in Maharashtra (including Mumbai) and
Goa.

Tata Comm. is India's leading international telecom service provider. It is today

part of the Tata Group. It started as a successor to the erstwhile Overseas
Communication Services, and went on to become the premier provider of
international voice and data services.

21
 TATA TELISEVIES LTD (TTSL)

Business Unit
Functions

1) Consumer Market Business Unit (C.M.B.U) Prepaid

2) High Network Individual Busi. Unit (H.N.I.B.U) Postpaid
3) Access Business Unit (A.B.U) Rural P.C.O & Tel. Booth
4) Retail business Unit (R.B.U) Circle Retail Head

1) Finance
2) Supply Chain Management (S.C.M)
3) Human Resource (H.R)
4) Facility Management and Support Service (F.M.S.S)
5) Risk
6) Business Excellence (B.E)
7) Marketing Communication (Mar. Com)
8) Enterprise Business Solution (E.B.S)
9) Information Technology (IT) by (T.C.S)

22
 R etail B usiness U nit

Classification of retail business unit (R.B.U) of

Tata TeleService limited-:

1) TRUE VALUE SHOP-

(i)Prepaid Town- prepaid RCV, Handsets, and Accessories.

• Security- 55 +30 thousand

In 55 thousand 40 thousand is refundable and 15
thousand is no in refundable.
• Area- 130-132 sq feet
• Type- franchisee
• Prepaid RCV Commission- 4.5%
• Accessory- 30%
• Furniture with installation
• Providing Glow Sine Board (G.S.B)

23
(ii) High Network Individual (H.N.I) Town-

• Prepaid & Postpaid only.

• SECURITY- 1.25 laks. 1 laks refundable and 25 thousand is
nonrefundable.
• AREA- 150-250 sq feet.
• TYPE- Franchisee.
• COMMISSION – 4.5%

2) TRUE VALUE HUB- (T.V.H)

• Prepaid, postpaid & all.

• SECURITY- 3 lack 2.5 lack refundable,50 thousand
nonrefundable.
• Furniture, 3-pc. 1 laptop.
• COMMISSION – 4.5%.
• Franchisee Retail Management System. (F.R.M.S)

24
3) NEIGHBOUR HOOD STORES-

• Rural Area.
• Glow sine Board Central Table.
• 25 thousand 30 thousand extra as per demand.
• Handset service centre support point.
• AREA- 70-100 sq feet.
• COMMISSION – 4.5%.

4) RETAIL MANAGEMENT SYSTEM-

(I) T.V.S.COCO-(Company On Company Store)- Headed

by company’s zonal executive.

• AREA- 300 sq feet.

(ii) T.V.H. COCO (Company On Company Store)-

Head by company’s manager.

25
 TTSL’s COMPETITORS

IDEA Company Information

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock

Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to

operate in all 22 Service Areas. Presently, operations exist in 11 Service Areas

covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,

Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East,

Rajasthan and Kerala. With a customer base of over 26 million, IDEA Cellular's

footprint currently covers approximately 60% of India's telecom population.

A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the

distinction of offering the most customer friendly and competitive Pre Paid

offerings, for the first time in India in an increasingly segmented market.

Customer Service and Innovation are the drivers of this Cellular Brand. A brand

known for their many firsts, Idea is only operator to launch GPRS and EDGE in

the country. Idea has received international recognition for its path-breaking

26
innovations when it won the GSM Association Award for "Best Billing and

Customer Care Solution" for 2 consecutive years.

IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with

a market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by

an extraordinary force of over 100,000 employees belonging to 25 different

nationalities, over 50% of its revenues flow from its overseas operations. The

Group has been adjudged ‘The Best Employer in India and among the Top 20 in

Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.

The combined holding of the Aditya Birla Group companies in IDEA stands at

around 57 per cent. With ambitious future plans, the company is poised for rapid

growth across the whole country.

Our Service Areas

The Indian telecommunications market for mobile services is divided into 22

"Service Areas" classified into "Metropolitan", Category "A", Category "B and

Category "C "service areas by the Government of India. These classifications are

based principally on a Service Area’s revenue generating potential.Our

operational 11 Service Areas are broken up into Established and New Service

Areas.

Established Service Areas

The established service areas are Delhi, Andhra Pradesh, Gujarat and

Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West).

27
Licenses for the Maharashtra and Gujarat Service Areas were awarded in

December 1995, with network rollout and commercial launch achieved in 1997.

In January 2001 the mobile operations in Andhra Pradesh Service Area were

integrated with IDEA through a merger with Tata Cellular Limited. In June 2001,

the mobile operations in Madhya Pradesh Service Area were fully integrated with

IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the

license for Delhi Service Area was acquired during the fourth mobile license

auction, with network rollout and commercial launch in November 2002. In

January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was

acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh

(West) and Kerala. All these Service Areas were re-branded and integrated with

IDEA in June 2004.

New Service Areas

The New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal

Pradesh.

Licenses for these New Service Areas were acquired through the acquisition of

Escotel (Escorts Telecommunications Limited). Following significant investment

in the roll-out of network in the New Service Areas, amounting to approximately

Rs. 4,678 million upto September 30, 2006, a full commercial launch of mobile

services was achieved in the New Service Areas between September and

November 2006 in a manner which also met the network roll-out requirements of

the licenses in 2007.

28
Classification of retail business unit of IDEA

Cellular ltd.

My Idea –

• Type – Franchisee.
• 5 Franchisee units in Lucknow.
• Average staff per unit- 3 employees.

• Average monthly walk in per unit - 4 thousand.

• AVARAGE PER DAY WALK IN- 35-45 .
• AREA- 300 sq feet.
• COMMISSION – 4.5%.

29
Vodafone Essar Limited

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and

commenced operations in 1994 when its predecessor Hutchison Telecom

acquired the cellular licence for Mumbai. Vodafone Essar now has

operations in 16 circles covering 86% of India's mobile customer base, with

over 49.1 million customers*.

Over the years, Vodafone Essar, under the Hutch brand, has been named the

'Most Respected Telecom Company', the 'Best Mobile Service in the

country' and the 'Most Creative and Most Effective Advertiser of the Year'.

Vodafone is the world's leading international mobile communications

company. It now has operations in 25 countries across 5 continents and 40

partner networks with over 260 million customers worldwide. Vodafone has

partnered with the Essar Group as its principal joint venture partner for the

Indian market.

30
The Essar Group is a diversified business corporation with interests

spanning the manufacturing and service sectors like Steel, Energy, Power,

Communications, Shipping & Logistics and Construction.

Classification of retail business unit of Vodafone

(1) Vodafone exclusive stores –

• Average man power-6

• Average walk in per day- 50
• Prepaid & postpaid
• Total 3 results found in - "lucknow"
Chintels Vodafone Store
Shahnajaf Vodafone Store
Waves Vodafone Store

(2) Mini stores-

Total 23 results found in - "lucknow"

• Average man power-3

• Average retail space- 150sq feet.
31
AIRTEL

Sunil Bharti Mittal or SBM as he is called, has at the age of 43

created a Telecom Giant in India. It has risen from humble

beginnings in 1970’s as a bicycle parts manufacturer, knitwear and

stainless steel utensils in Ludhiana, Punjab state. Together with

other foreign companies he has raised $ 1.5 billion of which $ 800

million is still in the bank.

Bharti happens to be India’s premier telecom company in the field of

telecom terminals and technology tie ups with world leaders like

“Siemens, Goldstar, Tatacom and Casio. It is the first company in

India to export telephones to U.S.A and has finalized plans to

manufacture GSM terminals in India.

The success story of Bharti Enterprises can be acknowledged from

the fact that Bharti has acquired 44% of stake of British Telecom,

which was up till now one of the partners with Bharti Enterprises for

$140.2 joint venture. The transaction was worth 100 million pounds.

Bharti Enterprises controls about 20 % of the Total Telecom market

in India. As he puts it , it was a mixture of Vision , good luck and

hard work by a team of about 10 –12 senior people. The early

32
beginnings in 1985 were in manufacturing telephone handsets. They

did not have the expertise to do telephone exchanges, jelly -filled

cables had become a commodity and their capital investment was

high.

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for

promoting investments in telecommunications services. Its

subsidiaries operate telecom services across India. Bharti Tele-

Ventures is India's leading private sector provider of

telecommunications services based on a strong customer base

consisting of approximately 11.50 million total customers which

constitute, approximately 10.66 million mobile and approximately

836,000 fixed line customers, as of January 31, 2005.

• Bharti Teletech

Bharti Teletech deals with telecom equipment manufacturing. Bharti

teletech has 2 subsidiaries “Siemens Telecom and Bharti Duraline.

Siemens Telecom is a joint venture between the global giants

Siemens AG and Bharti Telecom. This alliance has brought to the

Indian market the unmatched technology of Siemens and the

manufacturing strength of Bharti Telecom. Siemens Telecom

markets its product under the brand names of “Siemens” and “

Beetel”. The Siemens range of telephones includes electronic push

button phones, feature phones ans the latest GSM cellular phones.

33
 “Beetels commitment to quality, value and durability has made it the

largest selling cordless phone in India.

Bharti Duraline – Bharti Duraline is a translation of Bharti’s

commitment to serve the growing telecom market in India. This joint

venture with Duraline Corp of U.S.A manufactures and markets high

quality SILCORE TM HDPE telecom ducts. Duraline USA gas

prestigious customers like AT&T, Lucent technologies, Sprint MCI,

Ericsson, etc

• Bharti Telecom

In the past few decades the telecom industry across the world has

gone through a sea change and India has not been away from the

technological revolution. Bharti Telecom the flagship company of

Bharti Enterprises has continuously introduced world-class telecom

products and services.

From the introduction of push button telephones backing telephones

to answering machines from cordless telephones to cellular services

Bharti is breaking new grounds with host of new brands like Airtel

and Beetel. Bharti Telecom has emerged as India’s finest Telecom

Company.

Incorporated in 1985 Bharti Telecom is one of the largest Telecom

companies in the country.

Bharti Telecom provides various basic /cellular services, Internet

services and VSAT’s etc. through its several subsidiaries and joint

34
ventures. The two subsidiaries of Bharti Telecom are “Bharti

Televenture” and “Bharti Telepatial”.

Bharti Televenture

Bharti Televenture Ltd. was incorporated on 7th July 1995. BTVL

has been floated by Bharti Telecom Ltd. as Telecom operator to hold

equity stake and to wide management services to cellular and fixed

line Telecom Projects in India.Bharti Televenture is a holding

company for Bharti Cellular and Bharti Telenet.

Bharti Cellular

Bharti Cellular Ltd offers cellular service under the brand name of

Airtel.

Bharti Telenet

Bharti Telenet offers fixed line services in M.P. (Indore) and cellular

services in H.P. the company the first private operator to provide

fixed line services under the country. It launched its fixed lines

services on 4th June 1998 in Indore, and as developed the customer

based of over 35,000. The company as a market share of 80% in

H.P. for its cellular services.

Bharti Telespatial

35
Bharti Telespatial provides Internet services and VSAT’s. It has

gain two subsidiaries “Bharti BT” and “Bharti BT Internet”.

Bharti BT

Bharti BT has a licensed to provide VSAT services in India. The

company is second largest service provider in the shared hub and

fastest growing VSAT service provider in the country.

Identifying the core relevance of satellite communication, the joint

venture is expanding the VSAT market through service leadership

and product innovation, offering fast, secure and reliable telecom

solutions for all times. BT helps its customers meet there short term

goals and long term communications strategies.Taking advantage of

its leading edge in technology, Bharti BT offers customized TDMA,

VSAT solutions, PAMA services. The flexibility to integrate these

services also enables the company to provide hybrid V-SAT services

to meet the diverse requirement of the customers.

Bharti BT Internet:- Bharti BT Internet has a licensed to provide

Internet services in Mumbai, Delhi and Bangalore. The service

became operational from May 99 under the brand name “Mantra On

Line”.

36
Classification of retail business unit of Airtel-

1) AIRTEL RELATIONSHIP CENTRE- (A.R.C)

• NUMBER- In U.P. There are 52 ARC.

• AVERAGE WALK IN PER DAY- 40.
• STAFF- 30 Employee per A.R.C.
• AREA- 600 sq mt.
• COMMISSION – 4.5%.

37
RELIANCE COMMUNICATION

Reliance Communications Ltd. is a part of the Reliance group founded

by Shri Dhirubhai H. Ambani. Reliance Communications (formerly

Reliance Infocomm) was originally incorporated on July 15, 2004, under

the Companies Act, 1956 as Reliance Infrastructure Developers Private

Limited. The status of the Company changed from private limited to

public limited on July 25, 2005. Further the name of the Company

changed to Reliance Communication Ventures Ltd with effect from

August 3, 2005. The name has since been changed to its present

name, viz. Reliance Communications Limited, under Fresh Certificate of

Incorporation consequent on change of name dated June 7, 2006.

Reliance Communications is one of India's largest integrated

communications service providers in the private sector. According to

National Stock Exchange data, Anil Ambani controls 66.75per cent of

the company, which accounts for more than 136 crore shares of the

company. Reliance Communications is the flagship company of the Anil

Dhirubhai Ambani Group (ADAG) of companies. Listed on the National

Stock Exchange and the Bombay Stock Exchange, it is India’s leading

38
integrated telecommunication company with over 25 million

customers.

The Reliance – Anil Dhirubhai Ambani Group is among India’s top three

private sector business houses on all major financial parameters, with

a market capitalization of Rs 100,000 crore (US$ 22 billion), net assets

in excess of Rs 31,500 crore (US$ 7 billion), and net worth to the tune

of Rs 27,500 crore (US$ 6 billion).

All businesses today are dependent on telecom to continue their day-

to-day operations. The range and quality of services that can be

provisioned is determined by the quality of the network deployed.

Today everything is digitalized for clearer and better transmission. Now

the transmission of information happened much faster than we can

imagine. This is what Reliance communication is offering to their

customers. With fibre optic network it provides high quality

transmission and faster information flow.

The Reliance Communications network consists of 60,000 kilometers of

optical fibre cables spanning the length and breadth of India. These

cables can carry thousands of billions of bits per second and can

instantly connect one part of the country with another. This physical

network and its associated infrastructure will cover over 600 cities and

towns in 18 of the country's 21 circles, 229 of the nation’s 323 Long

39
Distance Charging Areas (LDCAs) and broadband connectivity to over

190 cities. This infrastructure will be backed by state-of-the-art

information management systems and a customer-focused

organization.

An interesting aspect of the network is the manner in which these

fibres are interconnected and deployed. Reliance's architecture is so

fault-tolerant that the chances of failure are virtually nil. Reliance's ring

and mesh architecture topology is the most expensive component to

implement, but assures the highest quality of uninterrupted service,

even in the event of failure or breakage in any segment of the network.

Reliance has 77 such rings across the country with at least three

alternative paths available in metros. Connected on this topology, the

service has virtually no chance of disruption in quality performance.

Access networks determine the services that can finally be delivered to

customer. Reliance Communications network has wireline access

technologies based on fibre as well as copper. Fibre in the access

network makes broadband services easy to deploy. The wireless

access network deployed for CDMA 1X is spectrum efficient and

provides better quality of voice than other networks and higher data

rates. CDMA 1X also provides an up gradation path to future

enhancements.

40
Classification of retail business unit of reliance
communication-

1) RELIANCE WEB WORLD-

There are four Reliance Web Worlds in Lucknow; these are

Company on Company outlet. (Coco).

• Retail space- 700 sq feet.

• Man Power- customer care-8, broadband services-2.

• Other ser vices- customer care, sales, personnel finance

services desk
Bill payment, hand set assoriess,

2) RELIANCE EXPRESS-

There are many Retail outlets of Reliance Company named as

Reliance express, these are franchisee its Retail business unit.

• MAN POWER- Four employee.

41
 • SECURITY- 1.25 LAKS, 25 Thousand Non Refundable.
• Average walk in- 35-45 per day.

BSNL

COMPANY PROFILE

When it comes to connecting the four corner of the nation and

much beyond one solitary name lies embedded at the pinnacle.

BSNL. A company that has gone past the number games and quest

to attain the position of leader. It is working round the clock to take

India into the future by providing world class Telecom service for

the people of India. Driven by the very best of Telecom

Technology from chosen global Leaders it connects each inch of

the nation to the indefinite corners of the globe to enable you to

step into tomorrow.

42
BSNL formed in Oct 2000 is worlds 7th largest Telecommunication

company providing comprehensive range of Telecom Services in

India: Wire line, CDMA Mobile, GSM Mobile, Internet,

Broadband, Carrier Service, MPLS-VPN, VSAT, VoIP Service, IN

Service etc. within a span of 5 years it has become one of the

largest Public Sector Unit in India.

BSNL has installed quality Telecom Network in the country and

now focusing on improving it, expanding the network, introducing

new Telecom services with ITC applications in villages and wining

customer’s confidence. Today it has about 47.3 million basic

Telephone capacities, 4 million WLL capacities, 20.1 million GSM

capacity, more than 37,382 fixed exchanges, 18000 BTS, 287

satellite stations, 4, 80,196 RKM of OFC cable, 63,730 RKM of

Microwave Network connecting 602 districts, 7330 cities/ town

and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and

planned initiatives to bridge the Rural- Urban digital divide ICT

sector. Infact there is no Telecom operator in the country to beat

43
it’s reach with it’s wide network giving services in every nook and

corner of the company and operates across India except Delhi and

Mumbai. Whether it is inaccessible area of Siachen Glacier and

North Eastern reason of the country. BSNL serves it’s customer

with its wide bouquet of Telecom services.

BSNL is numero uno operator of India in all services in its license

area. The company offers wide ranging and most transparent tariff

schemes designed to suite every customer. BSNL cellular service,

Cellone has more than 17.8 million cellular customers, garnering

24% of all mobile user as it’s subscribers. That means that almost

every 4 Mobile user in the country has a BSNL connection. In

basic services BSNL is mile a head of its Rivals with 35.1 million

basic phone subscribers i.e. 85% share of the subscriber base and

92% share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million

internet customer who access internet through various modes i.e

Dial up, Leased line, DIAS, Account less internet. BSNL has been

adjudged as the number one ISP in the country. BSNL has set up a

44
world class multi- gigabit, multi-protocol convergent IP

infrastructure that provide convergent services like voice, data and

video through the same back bone and broad band access network.

At present there are 0.6 million data one broadband customer.

The Company has vast experience in planning, installation,

network, integration and maintenance of switching and

transmission networks and also has world class ISO-9000 certified

Telecom Training Institute. Scaling new heights of success the

present turn over of BSNL is more than Rs 3, 1,820 million with

net profit to the tune of Rs 99,390 million for last financial year.

The infrastructure asset on Telephone is worth about Rs 63, 0000

million.

BSNL expanded it’s customer base from present 47 millions lines

to 125 million lines by December 2007 and infrastructure

investment plan to the tune of Rs 733 crores in the next 3 years.

The turnover, nation wide coverage, reach, comprehensive range

of Telecom services and the desire to excel has made BSNL

number one Telecom Company of India.

45
value added services

 Voice Mail service

 Short Message Service(SMS)

 All India Roaming

 Call Forwarding

 Call Conferencing

 Call Waiting and Call Holding Facility

 Wireless Application Protocol: surf WAP enabled websites

on internet using this service.

 Unified Messaging Services: integrate your Mobile phone

with the internet and access your E-mails, Faxes, and Voice

Mail etc on your mobile phone.

46
Classification of Retail Business Unit of B.S.N.L

B.S.N.L has oniy single type of retail business unit in whole Lucknow city

named as B.S.N.L SHOPEE.

There are only five B.S.N.L SHOPEE in lucknow city .

• AVARAGE STAFF MEMBER- 6

• AVARAGE RETAIL SPACE- 500 SQ FEET.

• AVARAGE WALK-IN PER DAY- 5-6

• AVERAGE SALE OF PRODUCTS-
a) Postpaid- 2-3 per month.
b) Prepaid- 5-6 per day.

• OTHER SERVICES- BROAD BAND CONNECTION, DATA

CARD.

47
Ques: Number of exclusive showrooms of TTSL and its
competitors.

30

25

20

15
10

0
RELIANCE TTSL VODAFONE BSNL IDEA AIRTEL

INFERENCE:

• Reliance communication is the market leader .

• TTSL and Vodafone comes second and third
respectively.

48
Ques: Average staff members in each of the exclusive
showrooms of TTSL and its competitors.

10
9
8
7
6
5
4
3
2
1
0
RELIANCE VODAFONE BSNL AIRTEL IDEA

INFERENCE:
• Reliance has the largest gang of staff in a particular city.

49
Ques: Average Retail outlet space of TTSL and its competitors.

500

400

300

200

100

0
RELIANCE TTSL VODAFONE BSNL IDEA

INFERENCE:
• RELIANCE HAS THE LARGEST OUTLRT SPACE
FOLLOWED BY TTSL

50
Ques: Average walk-in per day of TTSL and its competitors.

70
60
50
40
30
20
10
0
TTSL VODAFONE RELIANCE AIRTEL IDEA BSNL

INFERNCE:
• TTSL has the largest waik-in but not in positive direction
due to regular queries of customers for the problems in
handsets and services.
• In positive direction Vodafone and Reliance has the
largest.

51
Ques:Which company offers you the best value added services?

30%
25%
20%
15%
10%
5%
0%
RELIANCE AIRTEL IDEA TTSL VODAFONE BSNL

INFERENCE:

Reliance is leading in good value added services by 29%

followed by airtel as 25% and IDEA as 18%.

Q 11. ABOUT TATA TELE SERVICES SERVICESES.

52
 s a t is fa c t o r y
50 , 48
40
3 0 ve ry g o o d ,
22 e x e lle n t , 1 8
20
good , 12
10
0
ve r y g o o d s a t is fa c t o ry

INFERENCE:

There are many types of responses in which only

22% are in favor of very good service, 48% are in favors of

satisfactory ,18% excellent and 12% in favors good services.

53
 1) It was found that most of respondents of the RBU’s were not
much keen to reveal the retail information.
2) It was found that most of respondents have approximate data
about our queries.
3) Staff of franchisee units usually dirtects us to their regional
offices.

54
 The company should increase its reach to all area’s of

Lucknow.

1) The company should see that the consumers are charged only

by reasonable price with respect to it’s competitors.

2) The company should go to the consumers by adopting

different type of marketing strategy to attract them towards it’s

services.

3) The company should provide more services.

4) The company should take some measures related to increase

its value added services.

5) The company should have to increase its retail outlet space so

that the customers may not feel congested and messy.

6) The customer queries should be met with some satisfactory

solutions.

7) The company should adopt differential price strategy for

different markets so that company can achieve huge market

share and able to increase it’s profit.

55
In my survey I found that consumer wants more attractive scheme

and more facilities. Mostly they purchase on the basis of schemes,

so the company should take the necessary steps and expand their

network to rural market extensively.

I found that few services needs improvements and consumers

wants best service from the company. They want better schemes.

There are plus point for the company in the market.

The study indicates that the consumer of TTSL want a better

connectivity and more attractive scheme. So the company should

take proper and immediate action on it

56
Sample Size limitation: This report consists of the study

conducted with the survey of a sample of 10 retail business unit

only. This does not cover the entire market and the decision is

taken on the surveyed sample only.

Geographic limitation: The survey was conducted in the

Lucknow city so the results and suggestions have maximum

reliability pertaining to this area only.

Time limitation: The project has the time constraint of 8 weeks.

So, it was not possible to visit all the area under this time limit.

There was a problem encountered while collecting the data in the

questionnaires. Most of the respondents were reluctant to answer the

questions and who ever answered had to be cajoled. There was a lot

of bias in the answers and there was a request from most of them not

to reveal their identity.

57
PHILIP KOTLER: MARKETING MANAGEMENT

C.R. KOTHARI: RESEARCH METHODOLOGY

G.C.BERI: MARKETING REASERCH

Besides this I have used TATA websites and so many Business Magazines,

which had helped me a lot.

www.tatateleservises.com

www.google.com

Questionnaire

STUDY OF RETAIL COMPETITION IN TELECOMMUNICATION SECTOR IN

58
 U.P. CIRCLE

Dear Sir/ Madam,

I am a Student, perusing MBA from NIEC. I AM doing a

project on retail competition in telecom in u.p. east circle. I request you to
provide me the relevant data as per the questionnaire:-

Ques.1:- How many exclusive showroom do you have: - -------------------------

Ques.2: - Average staff members in each of the above given

Exclusive showroom :- ------------------------

Ques 3: - What are the types of retail unit/showroom :-

(1) ----------------- (a) -------------- (b) -------------- (c)

(2) ----------------- (a) ------------- (b) -------------- (c)
(3) ----------------- (a) -------------- (b) -------------- (c)

Ques 4:- what is the average retail space of the units/showroom:-

(1) ----------------- (a) -------------- (b) -------------- (c)

(2) ----------------- (a) ------------- (b) -------------- (c)
(3) ----------------- (a) -------------- (b) -------------- (c)

Ques .5 :- What is average walk-in:-

(1) ----------------- (a) -------------- (b) -------------- (c)

(2) ----------------- (a) ------------- (b) -------------- (c)
(3) ----------------- (a) -------------- (b) -------------- (c)

Ques.6:- Average sale of products :-

59
 (a) Postpaid ----------------------------
(b) Prepaid ----------------------------
(c) Handsets ---------------------------
(d) Accessories -----------------------
(e) ---------------------------------------
(f) ----------------------------------------
(g) ---------------------------------------

Ques.7:- Other services provided by the company to the customer:-

(a) ----------------------------------
(b) ----------------------------------
(c) ----------------------------------
(d) ----------------------------------

Ques.8:- VAS promotion

(a) --------------------------------
(b) -------------------------------
(c) --------------------------------
(d) ------------------------------

Name:-
----------------------------

Signature:-
----------------------------

60