Service Quality of Various Telecom Service Providers

PROJECT REPORT
ON
“Analysing the Service Quality of Telecom Sector in

Jalandhar City”
Submitted to Lovely Professional University

In partial fulfilment of the requirements for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by: Supervisor:

Akhlak Khan 10804816 RR1809B54 Ms. Reeta Kumari
Anand Mani 10810852 RR1809B56 Lect.
Ankit Malhotra 10810844 RR1809B57 LSB
Vimal Saini 10808749 RR1809B58
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA
(2010)
1
TO WHOMSOEVER IT MAY CONCERN
This is to certify that the project report titled “analysing the service quality of telecom sector in
Jalandhar city” is carried out by Akhlak khan, S/o Sh. Hamid Khan has been accomplished under
my guidance & supervision as a duly registered MBA student of the Lovely Professional University,
Phagwara. This project is being submitted by them in the partial fulfilment of the requirements for
the award of the Master of Business Administration from Lovely Professional University.
This dissertation represents their original work and are worthy of consideration for the award of the
degree of Master of Business Administration.
___________________________________
(Name & Signature of the Faculty Advisor)
Title: ______________________________
Date: ______________________________
2
Jalandhar city” is carried out by Ankit Malhotra, S/o Sh. Naveen Malhotra, has been accomplished
under my guidance & supervision as a duly registered MBA student of the Lovely Professional
University, Phagwara. This project is being submitted by them in the partial fulfilment of the
requirements for the award of the Master of Business Administration from Lovely Professional
University.
___________________________________
Title: ______________________________
Date: ______________________________
3
Jalandhar city” is carried out by Anand Mani, S/o Sh. Arun Kumar Singh, has been accomplished
under my guidance & supervision as a duly registered MBA student of the Lovely Professional
University, Phagwara. This project is being submitted by them in the partial fulfilment of the
requirements for the award of the Master of Business Administration from Lovely Professional
University.
___________________________________
Title: ______________________________
Date: ______________________________
4
Jalandhar city” is carried out by Vimal Saini,S/o Sh. Rattan lal has been accomplished under my
guidance & supervision as a duly registered MBA student of the Lovely Professional University,
Phagwara. This project is being submitted by them in the partial fulfilment of the requirements for
the award of the Master of Business Administration from Lovely Professional University.
___________________________________
Title: ______________________________
Date: ______________________________
5
DECLARATION
I, "Akhlak Khan” hereby declare that the work presented herein is genuine work done originally by
us and has not been published or submitted elsewhere for the requirement of a degree programmed.
Any literature, data or works done by others and cited within this dissertation has been given due
acknowledgement and listed in the reference section.
_______________________
(Student's name & Signature)
_______________________
(Registration No.)
Date:__________________
6
7
DECLARATION
I, "Anand Mani” hereby declare that the work presented herein is genuine work done originally by
_______________________
_______________________
(Registration No.)
Date:__________________
8
DECLARATION
I, "Ankit Malhotra” hereby declare that the work presented herein is genuine work done originally
by us and has not been published or submitted elsewhere for the requirement of a degree
programmed. Any literature, data or works done by others and cited within this dissertation has been
given due acknowledgement and listed in the reference section.
_______________________
_______________________
(Registration No.)
Date:__________________
9
DECLARATION
I, "Vimal Saini” hereby declare that the work presented herein is genuine work done originally by
_______________________
_______________________
(Registration No.)
Date:__________________
10
Acknowledgement
Heartily thanks to all those who supported us ………
Acknowledging any one in mere words is a very difficult job. We would like to pay our sincere
thanks to all those people who helped us during this project work with their guidance and invaluable
advice.
The process of preparing this report on “Analysing the service quality of telecom sector in
Jalandhar City.” was a learning experience for us. During the course of our preparation of this
report we had to delve deeply into many details and thus were able to enlighten ourselves.
Foremost of all, We express our sincere indebtnessc to the Almighty for bestowing us with
favourable circumstances and keeping us in the high spirits. This project is the end product of
valuable contribution of the many persons to whom, we remain indebted.
We are thankful to Ms Reeta Kumari, lecturer & guide in Lovely School of Business, for her
support and encouragement throughout the completion of our project. We are thankful for her active
co-operation and her keen involvement in our project. We are indebted to her for understanding and
appreciating our problems, which emerged during the course of our project.
We are highly privileged to all the people, related directly or indirectly and the respondents for
being cooperative and sparing a few moments from their busy schedule; without their help this
project wouldn’t have proven meaningful.
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Table of Contents
S.No Chapters
1 Introduction
1.1 Industry profile
1.2 TRAI
1.3. Basic Structure of Indian Telecom Sector.
1.4 Indian Market
1.5 Growth of Telecom Network (2009)
1.6 Network Expansion
1.7 Major players in telecom sector
• Airtel
• Idea
• Reliance
• Vodafone
• BSNL
2. Review of literature
3 Need, Objective, Scope
4 Research Methodology
• Area
• Sample Type
• Sample size
• Data Collection Tools
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• Data Analysis Tools (Chi-Square, Frequency and Mode)
5 Analysis of Service Quality of Telecom Sector in Jalandhar
6 Summary, Conclusion, Limitations & Recommendations
7 References
8 Appendix (Questionnaire)
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EXECUTIVE SUMMARY
The research conducted is descriptive in nature. Jalandhar region is surveyed to attain certain
results. The survey is conducted to analyze that with the increasing competition in telecom services,
higher level of customer satisfaction with affordable prices and improved quality of services being
achieved or not. The survey is conducted to find out how much the customers are satisfied about
their operators & to find out the factors which influence the buying decision of the customer. This
would also help us to understand the service providers who are expected to become more sensitive
and responsive to the customer needs and choices and endeavour to give great satisfaction.
With these above objectives in mind, a survey is conducted in the city of Jalandhar and its nearby
areas. Questionnaire method is used to obtain the required information. Random sampling will be used
as the mode of conducting the survey. Care would be taken that the respondents would be as
diversified as possible, with all the regions being given equal weight age and the sample size being
suitably divided among various regions. A sample size of about 400 people is taken for this purpose
form various parts of Jalandhar. At the interim level 30 respondents have been surveyed and results
are interpreted and analyzed accordingly. After the completion of survey, the remaining data to be
analyzed on the chosen parameters would later be converted into various forms of graphs such as pie-
chart, bar graphs, and frequency tables. This would make results easily comprehensible by anyone
going through the report. Thus would make it easy to draw conclusions based on the research and
provide a presentable format of the report.
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CHAPTER # 1
INTRODUCTION
The customers are very important and play a crucial role in any process of marketing. Today,
customers are the kings of the market because the customer loyalty and customer preference are built
by the products and the services offered to the customers and they seek for the more benefits and
money’s worth for the amount they spend. That is where the concept of customer preference and
consumer behavior comes because the customers make the marketers to rethink about designing the
products and services.
They have to think about the market segmentation, market strategies, consumer behavior, consumer’s
preferences, and consumer’s lifestyle etc . Many marketers are smart enough to understand
consumers’ needs, wants and demands and perform beyond their expectations i.e. they delight them.
It provides them growth, profitability and creativity with lot of inventions.
1.1....INDUSTRY PROFILE
Today the Indian telecommunications network with over 375 Million subscribers is second largest
network in the world after China. India is also the fastest growing telecom market in the world with
an addition of 9- 10 million monthly subscribers. The Department of Telecommunications has been
able to provide state of the art world-class infrastructure at globally competitive tariffs and reduce the
digital divide by extending connectivity to the unconnected areas. India has emerged as a major base
for the telecom industry worldwide. Thus Indian telecom sector has come a long way in achieving its
dream of providing affordable and effective communication facilities to Indian citizens. As a result
common man today has access to this most needed facility. The reform measures coupled with the
proactive policies of the Department of Telecommunications have resulted in an unprecedented
growth of the telecom sector.
15
According to TRAI, by the end of February, the total number of subscribers had reached 413 million.
Of this, 91% were mobile phone subscribers. The rising number of subscribers has pushed the tele-
density to 35.62% showing a stupendous annual growth of about 50%, one of the highest in any
sector of the Indian Economy. Also industry estimates show that telecom industry in India will
witness a compound annual growth rate (CAGR) of 26% to reach 3, 44,921 crore by 2012. It is set to
generate employment opportunities for close to 10 million.
India’s telecom sector has shown massive upsurge in the recent years in all respects of industrial
growth. From the status of state monopoly with very limited growth, it has grown in to the level of an
industry. Telephone, whether fixed landline or mobile, is an essential necessity for the people of
India. This changing phase was possible with the economic development that followed the
process of structuring the economy in the capitalistic pattern. Removal of restrictions on foreign
capital investment and industrial de-licensing resulted in fast growth of this sector.
At present the country’s telecom industry has achieved a growth rate of 14 per cent. Till 2000,
though cellular phone companies were present, fixed landlines were popular in most parts of the
country, with government of India setting up the Telecom Regulatory Authority of India, and
measures to allow new players country, the featured products in the segment came in
to prominence.
16
Indian Telecom sector, like any other industrial sector in the country, has gone through many phases
of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century,
the field of telephonic communication has now expanded to make use of advanced technologies
like GSM, CDMA and WLL to the great 3G Technology in mobile phones. Day by day, both
the Public Players and the Private Players are putting in their resources and efforts to improve
the telecommunication technology so as to give the maximum to their customers.
The huge potential offered by the untapped rural market will help push growth for telecom operators in
the years to come. At present, rural India accounts for just 27% of the country’s cellular base, though
it constitutes 70% of the population.
The list of telecom operators operating in India with their market share is detailed a s under:
17
Recent things to watch out in Indian telecom sector are:
1. 3G and BWA auctions
2. MVNO
3. Mobile Number Portability
4. New Policy for Value Added Services
5. Market dynamics once the recently licensed new telecom operators start rolling out
6. Services.
7. Increased thrust on telecom equipment manufacturing and exports.
8. Reduction in Mobile Termination Charges.
9. Due to technological advancement and increase in traffic
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1.2.....Telecommunications Regulatory Authority of
India (TRAI)
The Telecommunications Regulatory Authority of India or TRAI (established in 1997) is the

independent regulator established by the Government of India to regulate the telecommunications
business in India. Notwithstanding anything contained in the Indian Telegraph Act, 1885, the
functions of the Authority shall be to-
(a) Make recommendations, on a request from the licensor, on the following matters, namely:
(i) Need and timing for introduction of new service provider;
(ii) Terms and conditions of license to a service provider;
(iii) Revocation of license for non-compliance of terms and conditions of license:
(iv) Measures to facilitate competition and promote efficiency in the operation of telecommunication
services so as to facilitate growth in such services.
(v) Technological improvements in the services provided by the service providers.
(vi) Type of equipment to be used by the service providers after inspection of equipment used in the
network.
(vii) Measures for the development of telecommunication technology and any other matter relatable to
telecommunication industry in general;
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(b) Discharge the following functions, namely:-
(i) Ensure compliance of terms and conditions of license;
(ii) Not withstanding anything contained in the terms and conditions of the license granted before the
commencement of the Telecom Regulatory Authority (Amendment) Ordinance,2000, fix the terms
and conditions of inter-connectivity between the service providers;
(iii) Ensure technical compatibility and effective inter-connection between different service providers.
(iv) Regulate arrangement amongst service providers of sharing their revenue derived from providing
telecommunication services;
(v) Lay down the standards of quality of service to be provided by the service providers and ensure the
quality of service and conduct the periodical survey of such service provided by the service providers
so as to protect interest of the consumers of telecommunication services;
(vi) Lay down and ensure the time period for providing local and long distance circuits of
telecommunication between different service providers;
(vii) Maintain register of interconnect agreements and of all such other matters as may be provided in
the regulations;
(viii) Keep register maintained under clause (viii) open for inspection to any member of public on
payment of such fee and compliance of such other requirement as may be provided in the regulations;
(ix) Ensure effective compliance of universal service obligations:
(c) Levy fees and other charges at such rates and in respect of such services as may be determined by
regulations.
(d) Perform such other functions including such administrative and financial functions as may be
entrusted to it by the Central Government or as may be necessary to carry out the provisions of this
act.
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Provided that the recommendations of the Authority specified in the clause (a) of this sub-section shall
not be binding upon the Central Government:
Provided further that the Central Government shall seek the recommendations of the Authority in
respect of matters specified in sub-clauses (i) and (ii) of clause (a) of this sub-section in respect of
new license to be issued to a service provider and the Authority shall forward its recommendations
within a period of sixty days from the date on which that Government sought the recommendations:
Provided also that the Authority may request the Central Government to furnish such information or
documents as may be necessary for the purpose of making recommendations under sub-clauses (i)
and (ii) of clause (a) of this sub-section and that Government shall supply such information within a
period of seven days from receipt of such request:
Provided also that the Central Government may issue a license to a service provider if no
recommendations are received from the Authority within the period of specified in the second
provision or within such period as may be mutually agreed upon between the Central Government
and the Authority.
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1.3....BASIC STRUCTURE OF INDIAN TELECOM
Ministry of Communication & Information Technology
Licensor
Dept of Telecom Unified License Operators
Fixed Line Operators

Regulator
Telecom Regulatory National Long Distance Operators
Authority of India
CDMA
International Long Distance Operators 1800Mhz
Judiciary
Telecom Dispute Settlement
Wireless Operators
Appellate Tribunal
GSM
900 &
1800
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1.4.…THE INDIAN MARKET – BASIC DEMAND
TRENDS
Demand for Telecom services is interesting for a variety of reasons. Before catering to this market,
service providers must consider unmet needs, price sensitivity, diversity in consumer profiles, and the
skew in urban-rural markets.
1. Unmet needs
Current Indian teledensity is 11.43 (i.e. only 11.43 phones both cellular and fixed line exist per 100
people) While that points to a staggering ~ 125mn phones already in the market, it also points to a
large unmet demand. Specifically, peer countries have much higher teledensity. China has a mobile
teledensity of 28.3 while in Malaysia, that number is 77. If India is to attain China’s teledensity in 5
years – up from its current penetration of ~ 7%, this implies an almost 4x increase in the number of
phones. This would lead to demand for about 210mn additional phones in that time.
2. Young, growing, consuming market
More than 95% of India’s population is under the age of 65.70% of the country’s citizens are below
the age of 36, and half of those are under 18. (Bharadwaj etal, 2005; Wikipedia; Census Maps;
Answers.com). Further, the standard of living has been increasing: only 26% of the population is
below the poverty line now, compared to over 50% in the mid-70s. (Sinha, Jayant, 2005) Thus, the
young, mobile segment of the population is quite large and more connected than any previous
generation. In addition, it earns more and is more willing to spend on convenience products than
previous generations. In fact, in some instances, consumer products like cell phones now have are a
symbol of status. Young consumers are willing to buy new phones and are constantly looking for
good deals and the opportunity to “trade up” to better products.
3. Value sensitivity
The Indian consumer is also very price sensitive. Product managers have found that consumers in
India will not buy products unless there is a clear value proposition – at the lowest possible price. For
instance, Nokia successfully introduced a customized version of their 1100 phone with features
23
uniquely tailored to India – dust-resistant body and a built-in flashlight – making it very popular
among truck drivers (Bharadwaj et al, 2006). The phone itself retails for about $40. Indians also
expect a high quality of services at the lowest possible tariff rate. Thus, tariffs in India for voice
services are among the lowest in the world. While average American carrier charges about 30-40
cents per minute, the corresponding rate for an Indian carrier is only about 2 cents per minute.
(Cingular, T- Mobile, TRAI Dec 2006).
4) Pre-paid rules
Indian consumers choose plans and tariff structures that minimize monthly expenditure. Further, they
also choose tariff plans that let them switch easily – especially since they shop on price. Thus pre-
paid SIM cards are the dominant method of revenue generation. With this scheme, consumers buy a
SIM card to use in their phones with a set amount of money on it (say ~$10).
In addition, since receiving calls in India is free, very often consumers will only receive calls on their
phones. And almost every cellular company has also introduced free incoming plans for 1-2years &
lifetime free incoming plans. Thus, revenues per user are low, with pre-paid users contributing ~$5.6
per month. While the average post-paid user spends much more – contributing ~$19 per month – this
is a small segment of the market in India. In 2006, for example, over 95% of new phone additions
were pre-paid plans. (TRAI Dec 2006)
5)Rural vs. Urban Market
While growth in India is significant, there is a large difference between urban and rural markets.
Teledensity varies wildly. For example, cities like Mumbai, Delhi, Chennai, and Kolkata have a
teledensity around 49% while Circles B and C (which include far-less urban states) see a penetration
of 2.6%. Also, service providers pay Access Deficit charges to subsidize the (mainly government
run) players that serve the unprofitable rural markets. However, as network operators run into an
increasingly saturated market in cities, they are slowly turning to rural areas to grow. To enter these
markets, carriers will have to make large capital investments, create low introductory pricing, and
only offer a basic level of services. Although growth in rural markets will be slower and require a
larger investment per
24
customer, with no guarantee of the same amount of revenue, the thirst for communication and poor
landline infrastructure makes rural India a unique opportunity for growth.
Consequently, operators are dropping prices to ensure they get their hands on the expanding
customer pie and the large untapped market means that revenues from the voice market will drive the
growth for the next few years.
6. Demographics
The expected growth in the Indian GDP, 6-7 percent annually from 2005 to 2007, is a good
indicator of the increased purchasing power of the population (Asian Development Bank – 2005). A
greater percentage of the Indian population has higher levels of disposable income with which to
purchase products and services. Along with lower connectivity costs and cheaper handsets, the
mobile market in India is seeing a huge influx of subscribers who can now afford basic
coverage.India is also experiencing changing demographics that have contributed to the explosion in
the mobile market. Approximately 70 percent of India’s 1.1 billion population is between the ages of
15 and 40 (U.S Census Bureau-International Database, 2003). As a result, telecom players are
looking at a young population with increased pay scales and more job opportunities. Furthermore, a
high percentage of these Indians are still living at home and saving their salaries. Thus, this
generation is able to spend a large percentage of their income on the purchase of entertainment and
consumer electronics, including cell phones.
7. Role of Government
The Indian government has played a significant role in setting the stage for growth in mobile
telecommunications. Through the oversight of the Telecom Regulatory Authority of India (TRAI),
the government has made many changes to regulations and policies to remove hurdles and spark
growth. First, the Indian government introduced the Unified Licensing Regime in 2003. This regime
allows operators to offer any service through the technology of their choice, in any area in which they
currently operate. Thus, all telecom services (including voice, data, cable TV, and radio
broadcasting) can now be delivered through a single medium and are covered by a single license.
Unified licensing shifted operator behavior and caused operators to start focusing on converged
services and networks for cost efficiency – which, in turn, allows them to offer pricing conducive to
rapid growth. In addition, the Indian government has raised the maximum foreign direct investment
25
(FDI) limit from 49 percent to 74 percent in Telecom Sector. The government also enacted the
Access Deficit Charge (ADC) policy, which requires that a share of call revenue be paid to the
government to assist in funding network expansion into rural areas.
As of early 2005, several regulations were imminent. First, the launch of an “All India” license
would give operators the right to provide all forms of service throughout India with one license. This
structure would initiate the next phase of market consolidation, with the result likely being five to six
main players. The players would have greater scale which would lead to higher cost efficiency and,
ultimately, more flexibility, and allow even fixed line users to switch to mobile services seamlessly –
possibly increasing competition in the market. Finally, the government needed to decide how to
increase spectrum capacity, since 2G networks are nearing full capacity (“2G” stands for second
generation cellular technologies, which are circuit-based, voice technologies deployed in the 1990s.
This standard is being replaced around the world with “3G” networks that are faster .
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1.5....GROWTH OF TELECOM NETWORK (2009)
With a strong population of over 1.1 Billion, India has become one of the most dynamic and promising
Telecom markets of the world. In recent times, the country has emerged as one of the fastest growing
telecom markets in the world. It has third largest telecom network and the second largest wireless
network in the world.
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1.6.....NETWORK EXPANSION
● The total number of telephones has reached 4297.25 lakh as on March 31, 2009 as compared
to3004.92 lakh as on March 31, 2008.
● While 1292.33 lakh connections were added during the twelve months of 2008-09, about 108 lakh
connections were added every month during the current fiscal year.
● The tele density, as given in the following graph, has shown a sustained increase during last few
years.
It increased from 26.22% in March 2008 to 36.98% in March 2009.
Tele density graph
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1.7.....MAJOR PLAYERS IN TELECOM
SECTOR
Bharti Airtel is one of Asia’s leading providers of telecommunication services with presence in all
the 22 licensed jurisdictions (also known as Telecom Circles) in India, and in SriLanka. We served an
aggregate of 96,649,487 customers as of March 31, 2009; of whom 93,923,248 subscribe to our GSM
services and 2,726,239 use our Telemedia Services either for voice and/or broadband access delivered
through DSL.
The company is the largest wireless service provider in the country, based on the number of
subscribers as of March 31, 2009. Airtel also offers an integrated suite of telecom solutions to our
enterprise customers, in addition to providing long distance connectivity both nationally and
internationally. The company has recently forayed into media by launching our DTH and IPTV
Services.
All these services are rendered under a unified brand “Airtel”. The company also deploys, owns and
manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel
Limited.
29
Idea Cellular Limited is a publicly listed company, having listed on BSE and NSE in March 2007. It
has licenses and spectrum to operate in all 22 service areas of India, with commercial operations
currently in 15 service areas. With a customer base of 43 million as on March 31st, 2009,the footprint
currently covers approximately 80% of India’s potential telecom market.
IDEA was the first company in India to commercially launch next generation EDGE technology in
Delhi in 2003. It has been a leader in the introduction of value added services. From basic voice and
SMS services to offering high end VAS such as Mobile TV, Games etc, IDEA is seen as an
innovative, customer focused brand. IDEA has received international recognition for its path-breaking
innovations when it won the GSM Association Award for “Best Billing and Customer Care Solution”
for 2 consecutive years.
IDEA Tariff plans are customer friendly and cater to unique needs of different segments. IDEA
‘Women’s Card’ caters to the special needs of the women on move, and ‘Youth Card’ covers
emerging youth segment. IDEA ‘My Gang’ – the widely popular closed user group product recently
bagged the prestigious ‘Golden Peacock Award 2008’ under the Most Innovative Product category at
the “19th World Congress on Total Quality”. IDEA Cellular is part of the Aditya Birla Group, India’s
first truly multinational corporation. The Group is anchored by an extraordinary force of over 125,000
employees, belonging to 25 different nationalities, and is in the League of Fortune 500 companies.
30
Reliance Telecom Limited (RTL) is a wholly-owned subsidiary of the Reliance Communication
Limited, a member of Reliance ADA Group. Reliance ADA Group’s flagship company. Reliance
Telecom Limited (RTL) began operations in 1997-98. It provides GSM based Mobility services, Value
Added Services & Applications in 8 telecom circles covering 15 Indian states.
RTL has undertaken a major expansion and increased its coverage to 6,300 towns. This has enabled
RTL to significantly scale up subscriber base to 11.5 million as of March 31, 2009. RTL is in the
process of further expanding its coverage to 12,000 towns under its licensed areas.
RTL’s Business has been further strengthened and complimented by its parent company’s GSM
expansion to remaining 14 Circles across various Indian states. Parent Company’s rapid and successful
ramp up in GSM based Mobile services has provided an added advantage to RTL of a bigger in-house
ecosystem.
31
Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994
when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now
has operations across the country with 68.76 million customers (as of March 31, 2009). 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 currently has
equity interests in 27 countries across 5 continents and more than 40 partner networks with over 289
million proportionate customers Worldwide. The Essar Group is Vodafone’s principal partner in India.
32
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications
Company providing comprehensive range of telecom services in India: Wireline, CDMA
mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP
services, IN Services etc. Presently it is one of the largest & leading 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 ICT applications in villages
and wining customer's confidence. Today, it has about 46 million line basic telephone capacity,
8 million WLL capacity, 52 Million GSM Capacity, more than 38302 fixed exchanges, 46565
BTS, 3895 Node B ( 3G BTS), 287 Satellite Stations, 614755 Rkm of OFC Cable, 50430 Rkm
of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.6 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned initiatives to bridge the
Rural-Urban Digital Divide 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 country and
operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen
glacier and North-eastern region of the country. BSNL serves its customers with its wide
bouquet of telecom services.
BSNL is numero uno operator of India in all services in its license area. The company offers
vide ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3G
customers as on 30.11.2009. In basic services, BSNL is miles ahead of its rivals, with 35.1
million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent
share in revenue terms. BSNL has more than 2.5 million WLL subscribers and 2.5 million
Internet Customers who access Internet through various modes viz. Dial-up, Leased Line,
DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in
the country. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure that provides convergent services like voice, data and video through the same
Backbone and Broadband Access Network. At present there are 0.6 million DataOne
broadband customers. The company has vast experience in Planning, Installation, network
33
integration and Maintenance of Switching & Transmission Networks and also has a world
class ISO 9000 certified Telecom Training Institute.Scaling new heights of success, the present
turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune
of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on
telephone alone is worth about Rs.630,000 million (US $ 14.37 billion). The turnover,
nationwide coverage, reach, comprehensive range of telecom services and the desire to excel
has made BSNL the No. 1 Telecom Company of India.
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TATA TELESERVICES LIMITED (TTSL)
Tata Teleservices is part of the INR Rs. 96723 Crore (US$ 22 billion) Tata Group, that has over
96 companies, over 250,000 employees and more than 2.8 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 1995,
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 20 circles that includes 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 3G1x technology platform in India, Tata Teleservices has
established a robust and reliable 3G ready telecom infrastructure that ensures quality in its
services. It has 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 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.
35
Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves
over 20 million customers (with 75% increase in FY 2007 over March 06-sub base) covering
over 3400 towns. With an ambitious rollout plan both within existing circles and across new
circles, Tata Teleservices is targeting to achieve 100 million subscribers by 2011 offering
world-class technology and user-friendly services in 20 circles.
TECHNOLOGY
Tata Indicom CDMA Mobile
TATA Indicom is India’s most affordable Mobile
The easy entry price of Rs. 999 only, inclusive of initial handset payment and activation fees
First to offer free incoming calls, with no airtime charges in the country
STD calls at local call charges, from TATA Indicom Mobile to CDMA mobile phones.
Within the first 400 free local calls every month, as specified in the tariff plan chosen by
customer. Normal STD call charges will apply thereafter.
STD call charges reduced from Rs. 9 to Rs. 3.00 per minute for distances over 500 km with
no airtime charges on top.
36
CHAPTER # 2
REVIEW OF LITERATURE
ARNOLD, GLENN (2010), states that, Customer Relationship Management

(CRM) applications have been around for more than 10 years, but only recently have
they become commonplace in business. As the technology and capabilities continue to
expand, CRM tools will be integral to any business with customers. Generally, CRM
applications help companies improve their interactions with customers and prospects.
These applications can automate and improve sales, customer service and marketing, and
amass customer intelligence to build more effective marketing and customer service
strategies. The demand for CRM applications has been driven by several factors,
especially the Internet. The Internet has brought a surge in new companies trying to
create a sustainable brand. This deluge of marketing messages and increased choices has
fractured consumers' attention and buying
Chaudhary.A(2010), states that, Indian telecom companies are following the trend of
global telecom companies such as France Telecom, AT&T and Vodafone to capitalise on
the excitement in the mobile applications space—mobile service provider Aircel has
partnered Infosys Technologies to launch the first mobile application sector in the Indian
telecom sector. Also, Airtel is considering partnering software company IBM to launch
app stores in 2010. This signals the increasing recognition among operators in the Indian
telecom sector that the way ahead for mobile technology lies with independent
developers.In another development in the Indian telecom sector, Tata Teleservices Ltd
(TTSL) has partnered Novatium Solutions Ltd to launch what is said to be the country’s
first cloud computing service over wireless broadband , ‘Nova Navigator'. The Navigator
is being described as a ‘zero maintenance' access device with features such as 3G support
and plug and play printer support and multimedia support.
37
Mitra. R (2010) Technological modernization is increasingly viewed as a
premeditated necessity in today's era of growth and prosperity for any country.
Telecommunications has entered a new age of development with advanced
technology and increased competition with established players. The technological
advances in the telecommunication sector are associated with an uninterrupted growth
of the mobile sector. The prime focus of the service providers is to create a loyal
customer base by benchmarking their performances and retaining existing customers
in order to benefit from their loyalty.
Sharma.S.A (2010), states that, The switch to 4G directly may further delay the
launch of mobile broadband by a year or so, but I think that the Indian consumer is
willing to wait as long he gets the quality of service with higher bandwidth and lower
latency. Already many are using the GPRS or the EDGE network for accessing emails
and web surfing and they could continue to do that provided there is assurance that
better services are in the offing. Also 4G data cards can replace the broadband at
home, thus helping in increasing the broadband penetration in India. But all this could
very well be a dream unless the government responds and starts the process quickly
and show to the world that India is one of the fastest developing countries in the world
in terms of telecommunications too.
Thakur.B.A(2010), states that, India is now the fastest growing wireless market in
the world. The penetration of mobile phones is expected to reach 50% by the middle
of this year. It is obvious that there is much more room for growth as far as the voice
market is concerned. But the bigger untapped market is data. While EDGE has been
around for many years, people are waiting for the 3G services. It is a well known fact
to all those who follow the telecom industry in India that the 3G auction has been
delayed by almost 3 years and given the past, nobody would be surprised if the
auction does not take place by the now advertised timeline of mid 2010. This means
that the services would reach the consumer only by 2011. Two government run
companies started providing 3G services in select markets last year but they have a
low market share. The bitter fact is that both consumers and businesses are on the
38
losing side because of the auction delay which can be blamed on bureaucracy and
inter-ministerial disputes. Thus many including yours truly believe that it makes sense
for the industry to directly endorse 4G and skip 3G.
Dublin - Research and Markets(2009), Customer Relationship Management

(CRM) applications manage and automate business in the telecom industry. These
CRM applications include sales automation, marketing automation, contact center,
customer service and analytic applications.
Ojha.S (2009), conducted a study on “Consumer Awareness of VAS of Telecom

Sector of India”. She analyzed the contribution of the mobile phone services not only
at the national or state level, but also its involvement in an individual's life. She found
out that the less number of users are aware of all the VAS provided by the service
providers and thus the companies should focus on the awareness campaign.
Power.J.D (2009), conducted a study on “Customers increasingly want telecom

services and products to be bundled” based on responses collected from 11,911
customers nationwide and examined the overall customer satisfaction on six factors –
customer service, reliability, billing, image, cost of service, offers & promotions.
Whittle (2009), states that, Many companies attribute customer-service problems to

front-line employees with poor interpersonal skills; they may train employees to be
friendlier, but do nothing to change organizational cultures and systems. From Britain
comes an innovative new approach, based on Total Quality principles, that weaves
service quality into the fabric of the organization. Interest in service quality is on the
rise. For some time, many successful companies have recognized that service
quality is critical to long-term commercial success. External and internal
pressures require both public- and private-sector organizations to become more
market-responsive and customer-oriented and to develop companywide service-
quality programs.
39
Bajaj(2008), states that, The telecom lobbies represented by the private telecom
players, both domestic and foreign, have succeeded in their central objective of
weakening government-controlled operators such as the Bharat Sanchar Nigam
Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) in order to share
the lucrative Indian market among themselves. India's WTO commitments do not
prevent BSNL from entering into public-private partnerships through franchisees. By
adopting this model BSNL could franchise up to 30,000 rural telephone exchanges,
which could create employment for a vast pool of technically skilled, retired
employees of the company. An excellent example of such public-private partnerships
are the franchised PCOs, which have created livelihoods for more than a million
families and account for about 30 per cent of BSNL's revenue. BSNL tried to give the
user the ‘95' facility as a substitute for the ‘91' facility.
Ganguli.S.R (2008), conducted a study on “Drivers of Customer Satisfaction in

Indian Cellular services Market “in which he discussed the impact of service quality
and features on customer satisfaction from the cellular users viewpoint.
Rick (2008),in his study found that companies with sound customer strategies can use
that ultimate loyalty program as a differentiator in an increasingly muddled market. In
an increasingly competitive market, customer loyalty efforts can play a major part in
the attraction of new customers and the retention of current ones. As consumers'
choices expand, the importance of a sound customer relationship strategy becomes
more and more important for the success of the company.
Seth.R (2008), in their study titled “Managing the Customer Perceived Service
Quality for Cellular Mobile Telephone: an Empirical Investigation” analyzed that
there is relative importance of service quality attributes and showed that
responsiveness is the most importance dimension followed by reliability, customer
perceived network quality, assurance, convenience, empathy and tangibles. This
would enable the service providers to focus their resources in the areas of importance.
The research resulted in the development of a reliable and valid instrument for
assessing customer perceived service quality for cellular mobile services.
40
Seth.A (2007), in his study on “Quality of service parameters in cellular mobile
communication” developed a model of service quality and a set of dimensions for
comparative evaluation which could provide useful directions to regulators and
service providers.
Taneja.G & Kaushik.N (2007), conducted a study on “Customers perception

towards Mobile service providers: An analytical study” aims to deduce the factors that
customers perceive to be the most important while utilizing the services of a mobile
service provider.
Kalavani.C (2006),in their study analyzed that majority of the respondents have
given favourable opinion towards the services but some problems exist that deserve
the attention of the service providers. They need to bridge the gap between the
services promised and services offered. The overall customers’ attitude towards cell
phone services is that they are satisfied with the existing services but still they want
more services to be provided.
Kalpana and Chinnadurai (2006), in their study titled “Promotional Strategies of

Cellular Services: A Customer Perspective” analyzed that the increasing competition
and changing taste and preferences of the customer’s all over the world are forcing
companies to change their targeting strategies. The study revealed the customer
attitude and their satisfaction towards the cellular services in Coimbatore city.
Chalam.G.V (2005), This study deals with growth, working and types of services
provided by the Andhra Pradesh Telecom circle in macro environment with special
reference to Guntur district. In this context, an attempt is made to collect the opinions
of telecom users in Guntur district to assess the quality of services rendered by the
telecom department. The findings of the study reveal that the expectations of the
telecom users are high among the subscribers of recent times because of their sense of
41
time vs. money value and awareness of their rights. Finally, the study concludes that
almost 94% of the subscribers are satisfied with the overall quality of services
provided by the telecom department in Guntur district. The basic motto of the telecom
department is to provide ultimate services to its customers against the present
competition from the private sector. In this direction, it is doing its best to acquire and
retain its new and old customers.
Samuvel.P (2004), in his research entitled,” customer satisfaction for cellular

services, a study with a reference to BPL and Aircel mobile phones and services”, a
published M.Phil. Dissertation, submitted to Bharathiar university, Coimbatore,
December 2002, has analysed that, the service quality of their brand is directly linked
with the satisfaction level of the customers.
42
CHAPTER #3
NEED AND SCOPE OF THE STUDY
As our study is about analysing the service quality of telecom sector in Jalandhar, so we have
decided to briefly analyse the consumer behaviour also because it is somehow related with the
quality of services provided by telecom sector and with the help of that study we will be able
to identify the service quality of telecom sector in Jalandhar, the consumers satisfaction level
and also the market scenario of Jalandhar telecom industry. Services provided by telecom
sector to customers are satisfying the customers’ needs and wants or not.
Current Indian teledensity is 11.43 (i.e. only 11.43 phones both cellular and fixed line exist
per 100 people) While that points to a staggering ~ 125mn phones already in the market, it
also points to a large unmet demand. Specifically, peer countries have much higher
teledensity. China has a mobile teledensity of 28.3 while in Malaysia, that number is 77. If
India is to attain China’s teledensity in 5 years – up from its current penetration of ~ 7%, this
implies an almost 4x increase in the number of phones. This would lead to demand for about
210mn additional phones in that time.
The Indian consumer is also very price sensitive. Product managers have found that consumers
in India will not buy products unless there is a clear value proposition – at the lowest possible
price. For instance, Nokia successfully introduced a customized version of their 1100 phone
with features uniquely tailored to India – dust-resistant body and a built-in flashlight – making
it very popular among truck drivers (Bharadwaj, 2006). The phone itself retails for about $40.
Indians also expect a high quality of services at the lowest possible tariff rate. Thus, tariffs in
India for voice services are among the lowest in the world. While average American carrier
charges about 30-40 cents per minute, the corresponding rate for an Indian carrier is only
about 2 cents per minute. (Cingular, T- Mobile, TRAI Dec 2006).
43
Objectives of the Study
We have decided to set the following objectives for my study:-
To assessing the service quality of telecom sector.
To understand the improvement and customer preferences in telecom sector.
To study about various service providers and their service quality in telecom sector.
To study the customer satisfaction and current market scenario in telecom sector.
44
CHAPTER # 4
Research Methodology
Area Jalandhar
Location Jalandhar city and outskirts
Sampling Type Convenience Sampling
Sample Size 400 Users
Data Type Primary and Secondary data both
Data Collection Tool Questionnaire and personal interview
Data Presentation Tool Pie charts and Tables
Data Analysis tools used MS Excel (Frequency), SPSS (Chi-square, mode and
Z-Test)
Sources of Data
Primary data
The study undertaken is mainly based on the primary data i.e. structured questionnaire
and personal interview for gathering the information
Secondary data
The study also contains secondary data i.e. data from books, authenticated websites
and journals for the latest updates just to gain an insight for the views of various
experts.
45
Methodology & Presentation of Data
The data collected will be coded in the tables to make the things presentable and more effective.
The results will be shown by tables & pie- charts which will help us out in easy and effective
presentation of results.
Research Design
The design for this study is Descriptive and Convenience sampling.
Data Collection
The data is collected randomly irrespective of the category of the people in the form of
questionnaire and the sample size is 400 respondents.
46
CHAPTER #5
Analysis of service Quality of telecom sector in
Jalandhar
Q no.1:- What type of connection would you prefer?
Type of Connection
Frequency Percent
Valid Prepaid 280 70.0
Postpaid 120 30.0
Total 400 100.0
type.of.connection
prepaid
postpaid
47
Interpretation:- Out of the total respondents of 400 we came to know that, 70% people are
using pre-paid connection and 30% people are using post-paid connection. This shows that
most of the people prefer prepaid as it is easily available and the is no problem for bill
payment.
48
Q no. 2:- Whose services are you rendering now?
service.render
Frequency Percent
Valid Bsnl 80 20.0
Vodafone 60 15.0
Reliance 100 25.0
Airtel 120 30.0
Idea 20 5.0
Tata 20 5.0
Total 400 100.0
service.render
bsnl
vodafone
reliance
airtel
idea
tata
Interpretation:- The above chart analysis reveals that majority of the people are using Airtel
because their network connectivity, free talk time, VAS and STV have helped to gain the
market share while the least are interested in using TATA & Idea because of their less VAS
services and connectivity problem
49
50
Q no.3:- Which technology would you prefer?
technology.prefer
Frequency Percent
Valid gsm 300 75.0
cdma 80 20.0
both 20 5.0
Total 400 100.0
technology.prefer
gsm
cdma
both
Interpretation :- As per the data it can be analyzed that GSM has earned a huge market share
of 75% while only 20% people prefer CDMA. Moreover there are only 5% people who are
willing to use both the technologies. As GSM is the user-friendly and easy to access
51
Q no.4:- How long have you been using this connection?
time.duration.of.usage
Frequency Percent
Valid less than 3 months 100 25.0
3-6 months 40 10.0
6-12 months 60 15.0
more than 1 year 200 50.0
Total 400 100.0
time.duration.of.usage
less than 3
months
3-6 months
6-12 months
more than 1
year
Interpretation:- From the above analysis it can be found that 50% of the total people have
kept their connection for more than 1 year. Whereas only 10% people prefer to keep their
52
connection for 3-6 months. The reason for this could be that most of the respondents were
business class so they can’t change their number every now and then.
Q no.5:- . What kind of expectations do you have from your service

provider?
Expectations
Frequency Percent
Valid low price tariff 120 30.0
voice quality 80 20.0
network coverage 160 40.0
Scheme 40 10.0
Total 400 100.0
epectations
low price tariff

voice quality
network coverage
scheme
Interpretation:- As per this study most of the people are inclined towards network coverage
of their service providers followed by the low tariff plans. Here the price not only includes
the amount of pre-paid or post paid connection but include different tariff plans etc.
53
54
Q no.6:- How much do you spend per month on your mobile connection?
Spending on mobile
Frequency Percent
Valid upto500 120 30.0
500-1000 160 40.0
1000-1500 80 20.0
more than 1500 40 10.0
Total 400 100.0
spend.on.mobile
upto500
500-1000
1000-1500
more than 1500
Interpretation:- Above graph, shows that 70% of respondents have their spending less than
Rs 1000 this is because of low tariff offered by the various service providers, the company
offering lowest tariff plans is reliance followed by Tata and Vodafone.
55
Q no. 7:- . How do you find the behaviour of customer care executives of
your service provider?
Behaviour.of.execitive
Frequency Percent
Valid professional and prompt 240 60.0
warm and helpful 100 25.0
lazy and slow 20 5.0
not responding 40 10.0
Total 400 100.0
behaviour.of.execitive
professional and prompt

warm and helpful
lazy and slow
not responding
Interpretation:- Acceptance or rejection of any product is largely dependent on the services

provided by the customer care which is also known as after sales service or CRM (Customer
Relationship Management). As per the survey it was found out that 60% of the surveyed
people feel that the executives are professional and prompt in their approach. While 10%
customers are not happy with the services which means customer care are not responding to
them properly. This shows the empathy of the service provider.
56
57
Q no.8:- Given a choice with same number, which service provider will you
select?
no. portability
Frequency Percent
Valid airtel 160 40.0
reliance 80 20.0
vodafone 80 20.0
idea 40 10.0
tata 20 5.0
bsnl 20 5.0
Total 400 100.0
no.portability
airtel
reliance
vodafone
idea
tata
bsnl
Interpretation:- As the above chart suggests and as per the findings, it can be seen that in
majority of the case customers prefer to have Airtel with an inclination of 43%, followed by
58
Reliance & Vodafone with an penchant of 20% and 18% respectively. Only 6% of people
fancy using TATA.
59
Q9. Rank Order
quick customer care less easy bill credit full value value added
activation services formalities payment services charge services
N Valid 400 400 400 400 400 400 400
Missing 0 0 0 0 0 0 0
Mode 1.00 4.00 2.00(a) 2.00(a) 3.00 5.00 6.00
a Multiple modes exist. The smallest value is shown
Quick activation
Frequency Percent
Valid quick activation 160 40.0
customer care service 40 10.0
net formality 40 10.0
easy bill paymant 40 10.0
credit services 40 10.0
full value recharge 40 10.0
value added services 40 10.0
Total 400 100.0
Customer care services
Frequency Percent
Valid 1.00 20 5.0
2.00 80 20.0
3.00 60 15.0
4.00 120 30.0
5.00 20 5.0
7.00 100 25.0
Total 400 100.0
less formalities
Frequency Percent
60
Valid 1.00 60 15.0
2.00 80 20.0
3.00 80 20.0
4.00 40 10.0
5.00 80 20.0
6.00 20 5.0
7.00 40 10.0
Total 400 100.0
easy bill payment
Frequency Percent
Valid 1.00 40 10.0
2.00 80 20.0
3.00 40 10.0
5.00 80 20.0
6.00 80 20.0
7.00 80 20.0
Total 400 100.0
credit services
Frequency Percent
Valid 1.00 20 5.0
2.00 80 20.0
3.00 100 25.0
4.00 40 10.0
5.00 40 10.0
6.00 60 15.0
7.00 60 15.0
Total 400 100.0
full value recharge
Frequency Percent
Valid 1.00 40 10.0
2.00 40 10.0
61
3.00 20 5.0
4.00 80 20.0
5.00 100 25.0
6.00 80 20.0
7.00 40 10.0
Total 400 100.0
62
Value added services
Frequency Percent
Valid 1.00
60 15.0
2.00
20 5.0
3.00
40 10.0
4.00
80 20.0
5.00
40 10.0
6.00
120 30.0
7.00
40 10.0
Total
400 100.0
Interpretation:- From the above statistics we can conclude that 40 percent of respondents
have given rank 1 to quick activation , 35 percent of respondents have given easy bill
payments and less formality as rank 2, 5 percent of respondents have given credit services
rank 3, 5 percent of respondents have given customer care services rank 4, 10 percent of
respondents
63
Q10 Service Provider * call charges
Crosstab
call charges Total

Very Good Good Average
service.provider bsnl Count 40 40 0 80
% within call charges 25.0% 18.2% .0% 20.0%
vodafone Count 20 40 0 60
reliance Count 60 20 20 100
% within call charges 37.5% 9.1% 100.0% 25.0%
airtel Count 40 80 0 120
idea Count 0 20 0 20
% within call charges .0% 9.1% .0% 5.0%
tata Count 0 20 0 20
% within call charges .0% 9.1% .0% 5.0%
Total Count 160 220 20 400
% within call charges 100.0% 100.0% 100.0% 100.0%
The above table shows that 37.5% of respondents of reliance rate call charges services
as very good followed by 25% of Airtel
Chi-Square Tests
Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 131.818(a) 10 .000
Likelihood Ratio 145.988 10 .000
Linear-by-Linear Association 14.427 1 .000
N of Valid Cases
400
a 4 cells (22.2%) have expected count less than 5. The minimum expected count is 1.00.
64
Service Provider * sms scheme
Crosstab
sms scheme Total

Very good good Poor 1.00
service.Provider Bsnl Count 20 40 20 80
% within sms scheme 11.1% 25.0% 33.3% 20.0%
% within sms scheme 22.2% 50.0% .0% 30.0%
% within sms scheme 11.1% .0% .0% 5.0%
% within sms scheme 11.1% .0% .0% 5.0%
Total Count 180 160 60 400
Here again Reliance has maximum number of satisfied customers i.e 33.3%, followed by airtel at second
place with 22.2%
Chi-Square Tests
Value Df Asymp. Sig. (2-sided)

N of Valid Cases
400
65
Service Provider * net working connectivity
Crosstab
net working connectivity Total

Very
Good Good Poor Bad 1.00
Service bsnl Count 0 60 20 0 80
provider % within net working
.0% 27.3% 14.3% .0% 20.0%
connectivity
vodafone Count 0 40 20 0 60
% within net working
.0% 18.2% 14.3% .0% 15.0%
connectivity
reliance Count 0 60 40 0 100
.0% 27.3% 28.6% .0% 25.0%
connectivity
airtel Count 20 40 40 20 120
100.0% 18.2% 28.6% 100.0% 30.0%
connectivity
idea Count 0 20 0 0 20
.0% 9.1% .0% .0% 5.0%
connectivity
tata Count 0 0 20 0 20
.0% .0% 14.3% .0% 5.0%
connectivity
Total Count 20 220 140 20 400
100.0% 100.0% 100.0% 100.0% 100.0%
connectivity
Chi-Square Tests

N of Valid Cases
400
66
Service Provider * billing system
Crosstab
billing system Total

Very Good Good Poor 1.00
Service bsnl Count 20 40 20 80
provider % within billing system 25.0% 25.0% 12.5% 20.0%
% within billing system 25.0% .0% 25.0% 15.0%
% within billing system .0% 37.5% 25.0% 25.0%
% within billing system .0% 37.5% 37.5% 30.0%
% within billing system 25.0% .0% .0% 5.0%
% within billing system 25.0% .0% .0% 5.0%
Total Count 80 160 160 400
% within billing system 100.0% 100.0% 100.0% 100.0%
Chi-Square Tests

N of Valid Cases
400
67
Service Render * quick easy recharge
Crosstab
quick easy recharge Total

Provider % within quick
.0% 33.3% 14.3% 20.0%
easy recharge
% within quick
.0% .0% 42.9% 15.0%
easy recharge
% within quick
50.0% 11.1% 28.6% 25.0%
easy recharge
% within quick
50.0% 44.4% .0% 30.0%
easy recharge
% within quick
.0% .0% 14.3% 5.0%
easy recharge
% within quick
.0% 11.1% .0% 5.0%
easy recharge
Total Count 80 180 140 400
% within quick
100.0% 100.0% 100.0% 100.0%
easy recharge
Chi-Square Tests

N of Valid Cases
400
a 2 cells (11.1%) have expected count less than 5. The minimum expected count is 4.
68
Service Provider * internet service
Crosstab
internet service Total

Very
provider % within internet
40.0% 12.5% 16.7% .0% 20.0%
service
% within internet
.0% 25.0% 16.7% .0% 15.0%
service
% within internet
60.0% .0% 16.7% 100.0% 25.0%
service
airtel Count 0 80 40 0 120
% within internet
.0% 50.0% 33.3% .0% 30.0%
service
% within internet
.0% 12.5% .0% .0% 5.0%
service
% within internet
.0% .0% 16.7% .0% 5.0%
service
Total Count 100 160 120 20 400
% within internet
100.0% 100.0% 100.0% 100.0% 100.0%
service
Chi-Square Tests

N of Valid Cases
400
69
Service Provider * call performance
Crosstab
call performance Total

Very
Provider % within call
.0% .0% 44.4% .0% 20.0%
performance
% within call
.0% 14.3% 22.2% .0% 15.0%
performance
% within call
33.3% 28.6% 11.1% 100.0% 25.0%
performance
% within call
66.7% 42.9% 11.1% .0% 30.0%
performance
% within call
.0% 14.3% .0% .0% 5.0%
performance
% within call
.0% .0% 11.1% .0% 5.0%
performance
Total Count 60 140 180 20 400
% within call
100.0% 100.0% 100.0% 100.0% 100.0%
performance
Chi-Square Tests

N of Valid Cases
400
70
Service Provider * value added service
Crosstab
value added service Total

Provider % within value
100.0% 22.2% 10.0% 20.0%
added service
% within value
.0% 22.2% 10.0% 15.0%
added service
% within value
.0% 22.2% 30.0% 25.0%
added service
% within value
.0% 22.2% 40.0% 30.0%
added service
% within value
.0% 11.1% .0% 5.0%
added service
% within value
.0% .0% 10.0% 5.0%
added service
Total Count 20 180 200 400
% within value
100.0% 100.0% 100.0% 100.0%
added service
Chi-Square Tests

N of Valid Cases
400
71
Service Provider * talk time and validity
Crosstab
talk timt and validity Total

Very Good Good Poor Bad 1.00
Provider % within talk timt
50.0% 18.2% 20.0% .0% 20.0%
and validity
% within talk timt
50.0% 9.1% 20.0% .0% 15.0%
and validity
% within talk timt
.0% 27.3% 20.0% 50.0% 25.0%
and validity
% within talk timt
.0% 27.3% 40.0% 50.0% 30.0%
and validity
% within talk timt
.0% 9.1% .0% .0% 5.0%
and validity
% within talk timt
.0% 9.1% .0% .0% 5.0%
and validity
Total Count 40 220 100 40 400
% within talk timt
100.0% 100.0% 100.0% 100.0% 100.0%
and validity
Chi-Square Tests

N of Valid Cases 400
72
Service Provider * brand image and adds
Crosstab
brand image and adds Total

Provider % within brand
27.3% 12.5% .0% 20.0%
image and adds
% within brand
9.1% 25.0% .0% 15.0%
image and adds
% within brand
27.3% 25.0% .0% 25.0%
image and adds
% within brand
27.3% 25.0% 100.0% 30.0%
image and adds
% within brand
.0% 12.5% .0% 5.0%
image and adds
% within brand
9.1% .0% .0% 5.0%
image and adds
Total Count 220 160 20 400
% within brand
100.0% 100.0% 100.0% 100.0%
image and adds
Chi-Square Tests

N of Valid Cases
400
73
Service Provider * attitude of customer
Crosstab
attitude of customer Total

Very
Good Good Poor Bad Very Bad 1.00
Service bsnl Count 0 40 40 0 0 80
Provider % within
attitude of .0% 18.2% 50.0% .0% .0% 20.0%
customer
vodafon Count 20 40 0 0 0 60
e % within
attitude of 50.0% 18.2% .0% .0% .0% 15.0%
customer
reliance Count 20 40 20 20 0 100
% within
attitude of 50.0% 18.2% 25.0% 50.0% .0% 25.0%
customer
airtel Count 0 80 20 0 20 120
% within
attitude of .0% 36.4% 25.0% .0% 100.0% 30.0%
customer
idea Count 0 20 0 0 0 20
% within
attitude of .0% 9.1% .0% .0% .0% 5.0%
customer
tata Count 0 0 0 20 0 20
% within
attitude of .0% .0% .0% 50.0% .0% 5.0%
customer
Total Count 40 220 80 40 20 400
% within
attitude of 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
customer
74
Chi-Square Tests

N of Valid Cases
400
Service Provider * quality of information provided
Crosstab
quality of information provided Total

Very Very
Good Good Poor Bad Bad 1.00
Service Bsnl Count 0 40 20 20 0 80
Provider % within quality
of information .0% 20.0% 33.3% 33.3% .0% 20.0%
provided
Vodafo Count 20 40 0 0 0 60
ne % within quality
of information 33.3% 20.0% .0% .0% .0% 15.0%
provided
reliance Count 20 40 0 40 0 100
% within quality
of information 33.3% 20.0% .0% 66.7% .0% 25.0%
provided
Airtel Count 20 60 40 0 0 120
% within quality
of information 33.3% 30.0% 66.7% .0% .0% 30.0%
provided
Idea Count 0 20 0 0 0 20
% within quality
of information .0% 10.0% .0% .0% .0% 5.0%
provided
Tata Count 0 0 0 0 20 20
% within quality
of information .0% .0% .0% .0% 100.0% 5.0%
provided
75
Total Count 60 200 60 60 20 400
% within quality
of information 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
provided
Chi-Square Tests
Value df Asymp. Sig. (2-sided)

N of Valid Cases 400
Interpretation:
• From the study from the respondents we came to know that the call charges of Airtel
is much better as compare to its other competitors and customers are very much
satisfied with the call charges of Airtel, but the customers are not so satisfied from
tata and idea in context to their call charges because they think that the STD call
charges of tata and idea are high and it does not suite their income level.
• According to the customers the quick recharge of Airtel,reliance,BSNL and Vodafone
is very good because they have their retailers all over Jalandhar, but idea and tat are
very bad in this attributes, so they should have to increase their retailer base in
jalandhar.
• According to the study the billing system of Airtel,BSNL,Vodafone and Reliance are
very good because they are using online billing system, but idea and tata is not using
that system so they lacks this content.
• According to the research conducted by us, the network connectivity is the best
provided by Airtel in Jalandhar, people of Jalandhar are very happy with the network
connectivity of Airtel, Vodafone BSNL and reliance, But they are very much
dissatisfied with the network quality of idea and tata.
76
• According to the data, we are able to to find out that the SMSscheme of Airtel are
best and very cheap as compare to its competitors it is only of Rs. 28 and Idea and tata
is again at a lower side
• From the study conducted from respondents, we can conclude that Airtel is having the
highest pedestal in customer satisfaction and preference since they provide best
features with value added services.
• Whereas Vodafone & Reliance is having the second & third highest pedestal in
customer satisfaction as they possess strong competition to Airtel in terms of Local
talk time, good availability, voice clarity etc.
• Finally apart from having different schemes BSNL is the laggard in meeting the
customer satisfaction and preference due to lack of certain attributes in its wing
Q11. Do you think the overall time taken to resolve your concern was
over.all.time.taken.to.resolve
Cumulative
Frequency Percent Valid Percent Percent
Valid Acceptable 200 50.0 50.0 50.0
better than expectation 100 25.0 25.0 25.0
too long to resolve the issue
25.0
100 25.0 25.0
100.0
Total 400 100.0 100.0
77
over.all.time.taken.to.resolve
acceptable
better than expectation
too long to resolve the
issue
Interpretation:- As per the study we came in to conclusion that, time taken to resolve the
problem is very much acceptable to the customers, they are very much satisfied with the time
taken to resolve the problem by customer care executives. During this tenure we came to
know that the behaviour of customer care executive officers are very good.
78
Q12. Are you satisfied with service provider
satisfaction
Frequency Percent Valid Percent Cumulative Percent

Valid yes 260 65.0 65.0 65.0
no 140 35.0 35.0 100.0
Total 400 100.0 100.0
satisfaction
yes
no
Interpretation: About 65% of the total respondents are satisfied with there service provider.
The reason for satisfaction is the various VAS services provided by them. Those who are
dissatisfied state that their service provider has poor network coverage and was unable to
handle their queries during any sort of technical problem.
79
Chapter # 6
Suggestions and Recommendations
Companies should focus on more prepaid schemes, as the customer base of prepaid is
large as compare to postpaid.
Companies like TATA and IDEA should come up with more innovative VAS schems to
enhance their service quality and customer base.
New emerging players should focus on network coverage, as most of the customers in
Jalandhar are more incline towards network celerity.
As it has been found that most of the customers are using Airtel because of its service
quality, so other players like, Vodafone, BSNL and others should have to come up with
superior networks and VAS services.
Maximum People in Jalandhar prefer quick activation of their connection so the
companies should have to decrease the lead time for activation of new connections.
To increase the market share and to increase more competition in Jalandhar segment
companies like Vodafone, TATA and BSNL should focus on sales promotions and
advertisements.
The companies will have to decrease the prices of Mobile office i.e. Internet pack so that,
common person can access internet on mobile.
80
The telecom companies in Jalandhar should provide better customer care services though
relationship centers to increase their service quality and relation ship with their
customers.
New services like 3G and 4G will have to be implemented as soon as possible, so as to
attract more and more customers towards using that.
The companies like Vodafone, TATA and Reliance will have to concentrate on rural
market by providing rural VAS to the customers.
81
REFERENCES
BOOKS :
• Alagiri Dhanpat “Telecommunication in India – Emerging Scenario”
ISBN: 81-314-1171-5, ICFAI University Press
• Chalam G.V “Quality of Services in Telecom Sector: Users’
Perception- An Assessment”, ICFAI University Journal of
Managerial Economics, 2005
• Mukherjee Arindham “Mobile Service providers – Perspective &
Practises” ISBN: 978-81-314-2126-0264, ICFAI University Press
• Schiller Jochen “Mobile Communication” Second Edition 2006 TMH,
India
• Sisodia Amit & Rao Janardhan “Global Telecommunication – Issues
& Perspectives” ISBN : 978-81-314-1709-6 ,Mar 2009
• Taher Nasreen “Indian Telecom Industry- Trends & Cases” ISBN:81-
7881-421-8, ICFAI University Press
MAGAZINE & JOURNAL:
• Goyal Vatsal 2007 “ The Indian Telecom Industry”, IIM Calcutta,

• Singh ,Yashvendra May ( 2009 ) Telecom Sector “Business India” -
Survey pg:109-111
82
WEBSITES:
i. http://en.wikipedia.org/wiki/Customer_satisfaction
ii. www.dot.gov.in
iii. www.trai.gov.in
iv. http://www.coai.com/service_providers.php
v. http://www.rediff.com/money/2004/apr/22mobile.html
vi. www.indiastudychannel.com/.../101635-Airtel-Postpaid-mobile-Bill-Payment-from-
Mobile.aspx
vii. http://www.papers.ssrn.com/sol3/papers.cfm?abstract_id=1078985
viii. http://www.businesstoday/2006/may/kalavani.htm
ix. http://www.monytoday.com/2008/june/information.html
x. http://www.businesstoday/2009/june/telecom.html
xi. http://www.economywatch.com/world-industries/telecommunications/
xii. http://www.airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+Airtel/Co
ntact+Us/?WCM_Page.ResetAll=TRUE&CACHE=NONE&CONTENTCA
CHE=NONE&CONNECTORCACHE=NONE&SRV=Page
xiii. http://www.scribd.com/doc/23966428/Marketing-Strategies-of-Airtel
xiv. http://www.business-standard.com/pdf/bharti_280110_01.pdf
xv. http://www.vodafone.in/Pages/index.aspx
xvi. http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
xvii. http://blog.taragana.com/index.php/archive/tata-indicom-broadband-
connection-review/
xviii. http://www.vodafone.com/start/media_relations/news/local_press_releases/in
dia/vodafone_essar_press/vodafone_karnataka.html
xix. http://www.vodafone.com/start/responsibility.html
xx. http://www.vodafone.in/existingusers/pages/careers_search.aspx
xxi. http://www.ideacellular.com/IDEA.portal
83
ANNEXTURES
QUESTIONNIARE
We hereby, declared that the questionnaire which you are going to fill is only for
academic purpose and the information given by you should be kept secret.
1. Which type of connection do you prefer?

Pre-paid Post-paid
2. Whose service(s) are you rendering now?

BSNL Vodafone Reliance Airtel Idea TATA
3. Which technology do you prefer? CDMA GSM Both

4. How long have you been using this connection of your service provider?
Less than 3 months 3-6 months
6-12 Months More than 1year
5. What kind of expectations do you have from your service provider?
Low Price Tariff

Voice quality
Network Coverage
Schemes
6. How much do you spend per month on your mobile connection?
Up to Rs. 500
Rs. 501- Rs. 1000
84
Rs. 1001- Rs. 1500
More than Rs. 1500
7. How do you find the behavior of customer care executives of your service
provider?
Professional & prompt
Warm & helpful
Lazy & slow
Not responding
8. Given a choice with same number, which service provider will you select?
Airtel
Reliance
Vodafone
Idea
TATA
BSNL
9. According to you rank the key benefits influencing your purchasing power?
(Rank 1 being the highest & 7 the lowest)
a. Quick activation
b. Customer care services
c. Less formalities
d. Easy bill payment
e. Credit services
f. Full value recharge.
g. Value added services.
10. How will you rate the following attributes for your service providers? Please
85
tick (√) the appropriate:-
S.No. Attributes Very Good Average Poor Very

Good poor
1) Call charges
2) SMS Schemes
3) Networking/
Connectivity
4) Billing system
5) Quick Easy
Recharge
6) Internet
Service/GPRS
7) Call
performance
8) Value added
services
9) Talk time &

validity
10) Brand
image & Ads
11. Attitude of customer care executive?
a) Excellent b) Good c) Satisfactory d) Poor e) Bad
86
12. Quality of information provided by Customer care executive?
a) Excellent b) Good c) Satisfactory d) Poor e) Bad
13. Do you think the overall time taken to resolve your concern was?
a) Acceptable. b). Better than the expectation. c). Too long to resolve the
issue.
14. Are you satisfied with service provider?
a) Yes b) No
15. Any suggestion for improvement...............................................................................
......................................................................................................................................
Name:-………………………………………..
Age: - …………………………………………
Gender: - ……………………………………..
Occupation: - ………………………………...
Signature:- …………………………………...
THANKS FOR YOUR PRECIOUS TIME

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PROJECT REPORT

“Analysing the Service Quality of Telecom Sector in

Submitted to Lovely Professional University

Submitted by: Supervisor:

(Name & Signature of the Faculty Advisor)

LOVELY PROFESSIONAL UNIVERSITY

(Name & Signature of the Faculty Advisor)

LOVELY PROFESSIONAL UNIVERSITY

(Name & Signature of the Faculty Advisor)

LOVELY PROFESSIONAL UNIVERSITY

(Name & Signature of the Faculty Advisor)

LOVELY PROFESSIONAL UNIVERSITY

(Student's name & Signature)

(Student's name & Signature)

(Student's name & Signature)

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Heartily thanks to all those who supported us ………

1.1 Industry profile

1.3. Basic Structure of Indian Telecom Sector.

1.4 Indian Market

1.5 Growth of Telecom Network (2009)

1.6 Network Expansion

1.7 Major players in telecom sector

3 Need, Objective, Scope

• Data Collection Tools

5 Analysis of Service Quality of Telecom Sector in Jalandhar

6 Summary, Conclusion, Limitations & Recommendations

1. 3G and BWA auctions

3. Mobile Number Portability

4. New Policy for Value Added Services

7. Increased thrust on telecom equipment manufacturing and exports.

8. Reduction in Mobile Termination Charges.

9. Due to technological advancement and increase in traffic

The Telecommunications Regulatory Authority of India or TRAI (established in 1997) is the

(i) Need and timing for introduction of new service provider;

(ii) Terms and conditions of license to a service provider;

(iii) Revocation of license for non-compliance of terms and conditions of license:

(v) Technological improvements in the services provided by the service providers.

(i) Ensure compliance of terms and conditions of license;

(ix) Ensure effective compliance of universal service obligations:

Ministry of Communication & Information Technology

Fixed Line Operators

2. Young, growing, consuming market

5)Rural vs. Urban Market

It increased from 26.22% in March 2008 to 36.98% in March 2009.

Tele density graph

Tata Indicom CDMA Mobile

TATA Indicom is India’s most affordable Mobile

ARNOLD, GLENN (2010), states that, Customer Relationship Management

Dublin - Research and Markets(2009), Customer Relationship Management

Ojha.S (2009), conducted a study on “Consumer Awareness of VAS of Telecom

Power.J.D (2009), conducted a study on “Customers increasingly want telecom

Whittle (2009), states that, Many companies attribute customer-service problems to

Ganguli.S.R (2008), conducted a study on “Drivers of Customer Satisfaction in

Taneja.G & Kaushik.N (2007), conducted a study on “Customers perception

Kalpana and Chinnadurai (2006), in their study titled “Promotional Strategies of

Samuvel.P (2004), in his research entitled,” customer satisfaction for cellular

We have decided to set the following objectives for my study:-

To assessing the service quality of telecom sector.

To understand the improvement and customer preferences in telecom sector.

Location Jalandhar city and outskirts

Sampling Type Convenience Sampling

Sample Size 400 Users