INDEX

Executive Summary 2

Chapter 1 3

• Introduction

Chapter 2 8

• Major Player in Telecom Industry

Chapter 3 32

• Mobile Phones Trends and Impact

Chapter 4 39

• Research Methodology

Chapter 5 45

• Analysis & Finding

Conclusion 58

Bibliography 60

1
 EXECUTIVE SUMMARY
India's telecommunications market is among the highest-potential markets globally, marked by

deregulation and rapid growth. Its cellular market alone is growing at 60% annually. This

demand will only accelerate as new technologies emerge to make new services possible. Essar

plans to grow its telecom business both in terms of geographical reach and in terms of the

products and services we will offer.

Almost all the respondents are in favor of mobile phone. They would like to have more

information available on the cell phone. They wanted services like local information on the cell

phone.

While completing this project I found out that word of mouth was also an important factor to

know consumers preference among landline and mobile phone.

For the study, both primary data and secondary data were required. The primary data was

collected based on a survey research, using a structured questionnaire with closed end

questions. The sampling procedure was probability sampling. Since the sample units were to

be cellphone subscribers, a stratified random sample was used. The mode of survey was of

personal interview, where the respondents filled up the questionnaires. The secondary data was

collected from business newspapers, magazines, company brochures,

journals and the internet.

2
CHAPTER -1
INTRODUCTION

3
 COMMUNICATION MARKET IN INDIA:
An Overview

The Indian telecommunications Network with 77 million telephone connections is the fifth

largest in the world and is the second largest among the emerging economies of Asia. Today it is

the fastest growing market in the world and represents unique opportunities for UK companies in

the stagnant global scenario. Tele-density, which was languishing at 2% in 1999, has shown an

impressive jump to 7% in 2003 and is set to increase to 20% in the next five years beating the

Govt target by three years. Accordingly, India requires incremental investments of USD 10-15

bn for the next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India.

With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine

of the Indian telecom industry. Given the current growth trends, cellular connections in India will

surpass fixed line by late 2004/early 2005.Intense competition between the four main private

groups - Bharti, Hutch, Tata and Reliance and with the State sector incumbents-BSNL and

MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phone

charges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the

consumers.

4
HIGHLIGHTS OF TELECOM SECTOR

 Indian Telecom services industry accounts for 1.5 per cent of GDP, with revenues

amounting to USD 11.7 billion during FY2001-02.

 Telecom services market is growing at 20 per cent per annum.

 Cellular segment growing at 70 per cent.

 Policy framework for this segment governed by the National Telecom Policy (NTP).

NTP 1994 allowed private participation. NTP 1999 set target of tele-density of 15

telephone connections per 100 persons by 2010. NTP 1999 moved from license fee to

revenue sharing.

5
SIZE OF THE MARKET:

India has one of the fastest growing telecommunication systems in the world expanding

annually at more than 20% over the last four years. The Indian communications services

industry has achieved the 5,00,000 (£6579) million mark in revenues and the cellular industry

is all set to cross Rs 1,00,000 (£1316) million in FY 2003-04. According to Ernst and Young

Study, telecom subscriber base is expected to reach 203 million by 2007 and revenues are

expected to triple to $23-25 billion by 2007 compared to $9 billion in 2002. The mobile phone

sector in 2003-04 registered three times higher growth than what was reported in 2002-03. The

industry added 21 million mobile connections in a year.

MARKET SEGMENTATION:

Telecom services in India have been divided into following segments - Basic (fixed line),

National Long Distance (NLD), and International Subscribers Dialing (ISD) and Cellular

Mobile services. Basic, NLD and ISD services, up until the 1990s were provided by the state

owned enterprise, Department of Telecommunications (DOT) (now corporatised as Bharat

Sanchar Nigam Limited (BSNL)), together with Mahanagar Telephone Nigam Limited

(MTNL) in Delhi and Mumbai. This sector was open to private participation in 1994. The ISD

sector is monopolized by the Videsh Sanchar Nigam Limited (VSNL).

6
Fixed Service Provider (FSPs):

The Government has allowed unlimited competition in the basic sector. Considering the

inherent advantage of scale that the incumbent state operators have, the private companies are

setting their networks very selectively and targeting corporate clients with value added

services. The government has introduced unified license for fixed and mobile service

providers. This will allow all phone companies to become mobile operators by offering cellular

and landline/WLL-M services under a single authorization, ending service-specific licensing.

Full unification is expected to take place soon when operators will be able to offer any service

using any technology.

Cellular Mobile Telephone Service (CMTS):

There are 25 private companies providing Cellular Services in 19 Telecom Circles and 4 Metro

cities, covering 1500 towns accross the country. Presently, there are five private service

operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber

base belongs to the pre-paid segment.

7
CHAPTER -2

8
MAJOR PLAYERS IN TELECOM INDUSTRY:
The competition varies across segments but the current players include state owned operators

as well as private operators, operating on the basis of 'level playing field'. The limited mobility

issue has made an exit and whether it is CDMA or GSM, it is all mobile now. Reliance has

emerged as the largest cellular service provider with 22 % market share followed by Bharti

with 20% market share. BSNL, Hutch and Idea follow suit. In the fixed line segment, the two

public sector incumbents, BSNL and MTNL continue to dominate the market with a combined

market share of 95%. Tata Tele services has emerged as the leading private fixed line operator

with a 2% market share followed by Bharti and Reliance.

9
10
11
 LANDLINE SEGMENT

In the bad old days, it was very hard to make phone calls in India, except from your own land-

line. Coin-operated pay phones were rare, and mostly didn't work.

And, even if one worked, it would not do long distance calls. One booked a trunk call from home

and waited for the operator to get through.

Then came a time when STD or ISD calls were a rip-off. The State monopolies charged prices

like Rs 75 per minute for these rarities. There was a complex maze of different prices for calling

different cities, different prices at different times of the day, etc.

In that environment, in 1987, a brilliant idea wad devised-- the STD/ISD booth. DoT forced

standardization of the equipment at every STD booth, so you were assured that calls would be

metered and priced correctly.

It is striking to see how this industry sprang up from nowhere, and suddenly it is a substantial

employer. There are perhaps 1 to 1.5 million people employed in the STD booths. This is a

significant number even by the enormous standards of the Indian labour market. The details

about the Indian PCO market are:

12
 RELIANCE INDUSTRIES LIMITED
Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a place in the

Global Fortune 500 list. This achievement is even more significant due to the fact, that the entire

growth was achieved in an organic manner and in a span of just 25 years.

 The group founded by him is India's largest business house with total revenues of over Rs

99,000 crore (US$ 22.6 billion), cash profit of Rs 12,500 crore (US$ 2.8 billion), net

profit of Rs 6,200 crore (US$ 1.4 billion) and exports of Rs 15,900 crore (US$ 3.6

billion).

 The Group's activities span exploration and production (E&P) of oil and gas, refining and

marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial

services and insurance, power, telecom and Infocomm initiatives. The Group exports its

products to more than 100 countries the world over. Reliance emerged as India's Most

Admired Business House, for the third successive year in a TNS Mode survey for 2003.

Reliance Group revenue is equivalent to about 3.5% of India's GDP. The Group

contributes nearly 10% of the country's indirect tax revenues and over 6% of India's

exports. Reliance is trusted by an investor family of over 3.1 million - India's largest.

Credited with a number of financial innovations in the Indian capital markets, today, the

Reliance Group has one of the largest family of shareholders in the world.

13
Reliance's Next Generation WLL CDMA Network

Reliance's Wireless Telecom Infrastructure comprises of Radio Base Stations, spread across

the country. These Radio Base Stations are interconnected to their respective Base Station

Controllers and Telecom Switches for voice communication over Reliance's own state-of-the-

art Optical Fibre Network thereby assuring reliability and high quality of voice.

Vision of the company:

Reliance Infocomm envisions a digital revolution that will sweep the country and

bring about a New Way of Life. A digital way of life for a New India.

With mobile devices, netways and broadband systems linked to powerful digital networks,

Reliance Infocomm will usher fundamental changes in the social and economic landscape of

India.

Technology:

New generation technologies, the future of communication, make wireless communication

seamless. Crystal clear voice communication, coupled with highspeed data, is now possible.

And Reliance Infocomm is bringing such a communication to you through its digital

communication network.

Spread across 60,000 km, covering over 600 cities and towns in India, Reliance's state of the

art fibre optic infrastructure combines with the next generation CDMA (Code Division

Multiple Access) 1X technology platform to bring you neverbefore wireless communication

quality and a range of services that you could only have imagined till now.

14
 COMPANY IN STUDY-TOUCHTEL
Touchtel has been one of the strong players in the telecom industry and in the PCO segment

specifically. From integrated telephony solutions for corporates and small business enterprises to

user friendly plans for homes, they have offered innovative, cost-effective solutions to cater to

different needs.

VISION OF THE COMPANY:

"We are here to make a positive impact on society and to make people's lives better - through

high quality products and services. Our focus is to seek out the best technology in the world and

put it in service of its ultimate users - our customers."

Bharti Infotel Limited has been at the forefront of technology and has revolutionised

telecommunications with its world-class products and services. Established in 1985, Bharti has

been a pioneering force in the telecom sector with many firsts and innovations to its credit,

ranging from being the first cellular service in Delhi, first private basic telephone service

provider in the country, first Indian company to provide comprehensive telecom services outside

India in Seychelles and first private sector service provider to launch National Long Distance

Services in India.

Touchtel offers it's customers a gamut of services on a superior technology platform. It provides

complete telephone services and solutions ranging from basic Landline connectivity, DSL

Broadband Internet access, Leased Lines, ISDN services, VPNs to One-Stop Messaging

Solutions, on a state of the art high speed communication network, capable of handling voice,

data and video. Touchtel marks a new beginning in the delivery of integrated end-to-end fixed

line communication solutions.

15
Bharti has expanded its services sector businesses to include nationwide cellular, broadband and

long-distance networks, with a fast growing fixed-line

operation. The group has entered into license agreement to operate cellular networks in select

telecom circles within the Country. Bharti has recently launched national long distance services

by offering data transmission services and voice transmission services for calls originating and

terminating on most of India's cellular networks.

16
 COMPANY IN STUDY--TATA INDICOM
Tata Indicom is a brand that looks increasingly bewildered at the speed of events in the rapidly

changing Indian telecom market. Tata Teleservices is the telecom venture of the Tata Group and

Tata Indicom is the brand name for the products and services offered by this company. The Tatas

are a large reputed group in India and have been closely linked to the infrastructural development

of the nation. The foray into telecom is seen as a natural progression emerging from their core

business focus.

The Tata name counts for a lot in terms of quality, affordability and integrity. Known for a slow,

measured and sure approach the Tatas are a steady group that adds to their equity with each

project they take on. However it is not known whether Tata Indicom will add further stature to

the Tata brand. The brand seems to be a little uncomfortable in the riotous mass-market melee

that the Indian telecom business resembles today.

India is the second largest country in the world in terms of population and offers enormous

potential to any brand that caters to the masses. It's only been about seven years since basic

services were opened up to the private sector after years of being purely a public sector domain.

Even more recently the state run fixed line giants have entered the cellular services business that

has been the preserve of the private sector players. The telecom market is full of opportunity but

while most of the big players are licking their lips in anticipation of huge gains Tata Indicom

seems to be licking its lips apprehensively.

17
 M.T.N.L. I B.S.N.L

MTNL was set up on 1st April, 1986 by the Government of India to upgrade the quality of

telecom services, expand the telecom network, and introduce new services and to raise revenue

for telecom development needs of India's'key metros - Delhi, the political capital and Mumbai,

the business capital of India. In the past 17 years, the company has taken rapid strides to emerge

as India's leading and one of Asia's largest telecom operating companies. Besides having a strong

financial base, MTNL has achieved a market share of 13% of the Indian telecommunication

network with a customer base of over 4.98 million lines.

MISSION:

To remain market leader in providing world class Telecom and IT related services and to become

a global player.

18
 MOBILE SEGMENT
RELIANCE INDUSTRIES LIMITED

• Reliance Industries, the country's largest private sector company, expects its exploration and

production (E&P) business to contribute to 10-15 per cent to total revenues within next three to

four years. Anil Ambani, vicechairman and managing director of Reliance disclosed this

information at a analyst meet held to discuss the company's second quarter results.

• The company expects its E&P efforts to gross around Rs 10,000 crore in revenues within the

same period. 'The earning before interest depreciation and tax margins would be around 40-50

per cent and the payback period will be around 3-4 years', said Anil Ambani.

• 'The capital expenditure would be funded through internal cash accruals and debts' he added.

The company has strong cash flow of around Rs 7,500 crore. According to Ambani, this

money is sufficient to fund its capex plans related to E&P, retail marketing and infocomm etc.

Moreover, the company enjoys a low leverage ratio (Debt Equity Ratio) of 0.59 and high

interest coverage ratio of 17.3.

• Commenting on the results, Ambani said,'Robust demand for petrochemical products, high

capacity utilisation, improved product mix with focus specialised products and lower interest

cost led to robust performance'. The company reported improvement in OPM and NPM, which

stood at 13.5 per cent (13.2 per cent) and 7 per cent (6 per cent), respectively.'

• Earlier in the day, Reliance declared its second quarter results. The company reported a

26 per cent rise in net profit to Rs 1,263 crore for the second quarter ended September 30, 2003,

compared to Rs 1,002 crore in the corresponding period last fiscal. The gross turnover has gone

up to Rs 18,036 crore from Rs 16,206 crore. For the six months ended September 30, 2003, the

19
 company has reported net profit of Rs 2,367 crore, as against Rs 1,920 crore for the corresponding

period last year. The gross turnover rose to Rs 35,202 crore from Rs 31,782 crore.

• The company has increased its refining capacity to 31 MMTPA from 27 MMTPA and the

company plans to increase it to 31 MMTPA by March, 2004. The company expects its refinery

margins to remain robust in the balance two quarters.

Talking about the petrochemical cycle, he said, that the industry pundits have forecast upsides in

the petrochemical cylce for the year 2005-06 and we are at start of it now.

Retail outlets

The company plans to open 1,500 retail outlets by second quarter next financial year. The roll

out would be in a phased manner and the company claims the outlets will be 2 to 3 times more

productive in throughput terms compared to present industry norms/average.

• The company has permission to built and operate 5,800 retail outlets. About the disinvestment of

HPCL, Ambani said HPCL is a strategic asset of the country and acquisition of existing assets

always offers various advantages. In this regard, he cited the example of IPCL, which RIL

acquired earlier.

• Reliance Infocomm, a Reliance group company, is likely to report a profit in its very first year of

operation. 'Reliance Infocomm has become number one mobile operator in five months of

operation and it has already achieved cash break even,' said Anil Ambani, vice-chairman and

managing director of Reliance Industries Ltd in Mumbai. Reliance Industries holds 45 per cent

stake in the telecom company.

• The company, with its hungama offer, managed to lure a sizeable chunk of the telecom pie,

which made it the number one mobile provider in the country. Currently, the company enjoys 21

20
 per cent market share (CDMA and GSM combine) with 4.9 million subscribers. Bharat Sanchar

Nigam Ltd and and Bharti Tele are the other major players with 19 per cent market share each.

• The company currently operates in 480 cities and plans to take this number to 693 cities by next

financial year.

• According to Ambani, of every two new mobile connections (incremental demand) added, one is

of Reliance Infocomm. The robust growth in the subscriber base would make Reliance

Infocomm self-sufficient and won't require external funding from RIL, or any other source.

'Reliance Infocomm will be in position to finance its own operations, based on its own strength

of cash flows,' Ambani added.

• The company would be 'shortly' launching its prepaid mobile services and believes that it would

give a big boost to its subscriber base and help it to increase the current robust run rate. 'Prepaid

services are more popular in the market and comprise of higher share, compared to post paid

card. We expect our prepaid services to increase current growth rates after the launch,' said

Ambani.

• Currently, each subscriber, on an average, contributes Rs 400-500 to revenues (average user

revenue).

• Reliance Infocomm with total capital expenditure plan of Rs 18,000 crore ($3.9 billion) has

already committed Rs 9,600 crore ($2.10 billion). The company does not have any plans to

access equity market.

21
 NOKIA
Nokia was set up in 1865, when a Finnish mining engineer, Fredrik Idestam

established a wood pulp mill on the banks of the Nokia river in southern Finland to manufacture

paper.

In 1967, three companies, the Nokia Forest Products company, Finnish Cable Works and Finnish

Rubber Works merged. As Cable Works had expertise in power transmission cables and phone

lines, Nokia decided to start an electronics division to diversify into telecom products in 1960.

The decision to move into electronics was well timed. Semi conductor technology was just

evolving and Nokia, dsespite being a newcomer, was not seriously handicapped in any way. It

was Bjorn Westerlund, president of Cable Works who mooted the idea.

Westerland tied up with colleges and universities and hired technically competent people to

implement the project.

In the early 1970s, Nokia began developing a switch equipped with computer software and

Intel's microprocessors. Called the DX 200, the switch evolved into a multifaceted platform, still

the basis of Nokia's network infrastructure. The leadership of Kari Kairamo, who became

Nokia's CEO in 1977, played a crucial rote in Nokia's evolution as a leader in mobile phones.

Kairamo, himself had little knowledge of the business, having been associated with the forest

products division. He, however, showed extraordinary initiative, by recruiting outside talent and

empowering the young engineers in the electronics division.

In 1981, the Scandinavian countries came together to set up a multinational cellular network,

called Nordic Mobile Telephony (NMT). Many other countfies also accepted NMT. The system

offered competitive prices, and international roaming facilities, and quickly gained popularity the

world over. While Swedish company Ericsson rapidly emerged as the global leader in the

22
cellular network equipment business, Nokia gradually strengthened its capabilities in the mobile

handsets segment. Soon mobile phones began to evolve as an affordable communication medium

even for the common man.

In the late 1980s, the European conference of Postal and Telecommunications Administration

(CEPT) decided to develop a common standard for digital mobile telephony. This standard came

to be known as GSM* (Global System for Mobile Communications). Nokia committed itself to

GSM technology very early on and signed agreements to supply GSM networks to nine other

European countries.

Recent Developments

Nokia struggled in the late 1980s as the mobile phones business continued to make losses. To

worsen matters, the collapse of the Soviet Union in 1991 resulted in the loss of a strategically

important market. Nokia also faced intense competition from Motorola, which had much

stronger manufacturing capabilities. In 1991, as the situation looked gloomy, a bank which held

the largest shareholding in Nokia, made an unsuccessful attempt to sell its stake to Ericsson. The

turning point for Nokia came in February 1990, when Jormia Ollila was put in charge of the

mobile phones business. Ollila recalled the instructions he had received from seniors in the

company1: "Look, you get six months to make a proposal on whether we sell it or what we do

with this business." Ollila

replied after four months that the business was worth retaining.

Ollila streamlined Nokia's R&D activities, divested non core operations and invested heavily in

brand building. The R&D centre in UK designed a phone that was small and light and could

compete with small analog phones already available in Japan. Nokia also came up with a big

screen and built several PC like capabilities into its phones. Nokia's 2100 series, shipped in 1993,

23
became a runaway success. Its digital technology was a big hit in the US2. The way Nokia

managed the project gave it tremendous confidence in its global capabilities. Coordinated from

UK, but with inputs from different parts of the world, especially strategically important markets

like Japan, the product development efforts had a truly transnational approach. In 1994, Nokia

became the first manufacturer to launch mobile phones for all major digital systems: GSM, GSM

1800 (PCN), TDMA3 and Japan Digital. In 1997, Nokia also began to offer phones conforming

to CDMA4 and GSM 1900 standard.

In the mid 1990s, Nokia sharpened its focus, selling its cable industry operations and its

television business1. In the late 1990s, Nokia took note of the growing popularity of wireless

Internet access. The company increased its commitment to Wireless Application Protocol

(WAP) phones capable of surfing the Internet. Other areas which Nokia has been exploring

in recent times include: wireless Internet connections for cars, high bandwidth2 wireless

connections inside homes and offices and wireless videophones.

Nokia has entered some of these businesses by buying startups in the US. Phones available

• Nokia 2100

• Nokia 7250

• Nokia 6600

• Nokia 6610

• Nokia 3660

• Nokia 3315

• Nokia 8250

• Nokia 2600

• Nokia 7710

24
 Sony Ericsson Mobile Communications
Sony Ericsson Mobile Communications is a global manufacturer of mobile multimedia consumer

products including feature-rich phones and accessories, PC cards and M2M solutions. The

products, based on powerful technology for mobile imaging, ommunications and entertainment,

combine an enticing brand With leading, innovative ways of using multimedia communications

while mobile.The net result is that Sony Ericsson creates compelling business opportunities for

its operator customers and desirable, fun products for its end users.

Sony Ericsson Mobile Communications was established in October 2001 by telecommunications

leader Ericsson and consumer electronics powerhouse

Sony. The company is owned equally by Ericsson and Sony and announced it first joint products

in March 2002.

The Sony Ericsson product portfolio is exciting, diverse and appeals to a wide audience. In the

past year the company has launched flagship innovative products for the 2G and 3G platforms

and also enhanced its offerings to entry level markets. The success of Sony Ericsson products

lies in their tangible differentiation in the key areas of imaging, design and applications.

By combining leading expertise from Sony in digital imaging, components and experience in the

Japanese market with Ericsson's leading mobile platform, Bluetooth and infrastructure

technologies, Sony Ericsson consistently achieves 'Best in Class' for picture quality, the latest

example of this is the S700 1.3 Megapixel 'swivel design' camera phone.

In industrial design, Sony Ericsson has quickly established itself as a world leader and has

received countless accolades. The iconic T610 has attracted the most industry and consumer

awards so far and in 2004 the 'premini' for NTT DoCoMo became the first ever mobile phone to

win a 'Good Design Gold Prize' from the Japan Industrial Design Promotion Organization. Sony

25
Ericsson continues to innovate in design and newly launched products such as the S700 and

K700i dual-fronted camera phones continue to strengthen its reputation as a design leader. In

addition, the company strives to be a cutting edge provider of applications, forging partnerships

with software developers and content providers.

Sony Ericsson employees approximately 5,000 employees worldwide. It undertakes product

research, design and development, marketing, sales, distribution and customer services. Global

management is in London, and R&D is in Sweden, Japan, China, the US and UK. The

management team consists of President Miles Flint, a former senior executive of Sony Europe,

and Corporate Executive Vice President and Head of Global Sales and Marketing Jan Wareby, a

former senior executive of Ericsson.

Digital networks

GSM

Global System for Mobile Communications (GSM) is one of the leading digital cellular systems.

GSM uses narrowband TDMA, which allows eight simultaneous calls on the same radio

frequency. GSM was first introduced in 1991. By the end of 1997, the GSM service was

available in more than 100 countries. It has become the de facto standard in Europe and Asia.

Considered the most advanced digital cellular technology, GSM networks are leaders in many

typically "digital" services including Short Message Service (SMS), Over the air (OTA)

configuration and GSM positioning. Thanks to its technology and presence both in the Americas

and the rest of the world, GSM is well positioned for global roaming. Many new GSM phones

are called "global phones" because they can be used in virtually any country. The SIM card

("Subscriber Identification Module") is a unique and essential component of GSM phones.

26
Where GSM is used:

• GSM 900 (transmitting on the 900 MHz frequency band) is Europe's main digital

network. It's also used in the Asia-Pacific region.

• GSM 1800 (transmitting on the 1800 MHz frequency band) is also used in Europe and

Asia, but has not been as widely adopted as GSM 900.

• GSM 1900 (transmitting on the 1900 MHz frequency band) is the GSM system used

mainly in the Americas and Canada.

TDMA

Time Division Multiple Access (TDMA) delivers digital wireless service using time-division

multiplexing (TDM). A radio frequency is divided into time slots, then slots are allocated to

multiple calls. In this way, a single frequency can support multiple, simultaneous data channels.

TDMA is used by the GSM digital cellular system.

One of the oldest digital cellular technologies, TDMA is also considered the least advanced

digital technology, partly because of its comparative lack of flexibility. TDMA is used primarily

in the USA, but also in Latin America, New Zealand, parts of Russia and the Asia-Pacific region.

CDMA

Short for Code-Division Multiple Access, this is a digital cellular technology that uses spread-

spectrum techniques. Unlike competing systems that use TDMA, such as GSM, CDMA does not

assign a specific frequency to each user. Instead, every channel uses the full available spectrum.

Individual conversations are encoded with a pseudo-random digital sequence. Many

conversations are carried simultaneously by sending all communications in groups of bits mixed

together, and tagging each group belonging to a specific communication with a different code.

27
Each communication can therefore be reassembled in the correct order at the other end, using the

unique codes attached to particular groups of bits.

CDMA is the most common and most recent digital cellular technology in North America.

Handsets available

 K 500i

 D K500c

 F 500i T 630

 T 628 P900

 T238 T230

 T 608

 P 910c

 T 610

28
 LITERATURE REVIEW
Several researchers have followed William's approach to understanding technology. These

researchers seek to understand how people make sense of the technology and its place in

everyday life. How communication technologies reflect the social and cultural world in which

they are situated are not new research questions. Marvin (1988) analyses these questions in her

study about the introduction of electricity and the telephone in the late 19th century. She explores

the mystification and fears surrounding these technologies.

Marvin argues that communities use new technologies to try and solve old problems of managing

time and space in communicative relationships. In that process, users of new technologies alter

customary social distances among citizens. To manage the anxieties that result from these shifts,

they must invent new conventions of social trust appropriate to these new technologies.

Sarch (1993) explores technology as a site of struggle in her examination of the social uses and

effects of telephones by single women in dating relationships. She argues that the telephone is a

site for the negotiation and cultural construction of gender and power.

An analysis of the use of the technology allows Sarch to gain valuable insights into how her

subjects construct their gender, their ideal gender, as well as, how these women think men

perceive their gender (see also Umble 1996, Pool ed. 1977, Fischer 1992, Hopper 1992, and Katz

1999 for further discussions of the uses and effects of the telephone).

Other cultural studies researchers have also explored the uses and effects of technology.

Du Gay et al's (1997) study of the Walkman provides a helpful account of how to approach

technology as a cultural artifact. They suggest that by studying a technology's "story" one can

learn about the culture which produces and consumes such a technology.

29
Spigel (1992) raises questions about how television was appropriated and situated within the

American domestic sphere. Spigel examines how television as a "mass medium develop[ed] in

relation to its social context and how subjective responses to it can help create a milieu of ideas

that help to shape its cultural forms" (10). She notes both the idealization and anxiety over

television's entrance into the home, but suggests that every new communication technology is

met with both fear and hope. Spigel also makes the important distinction between studying the

effects of a technology and peoples' expectations for effects. These expectations help shape how

the technology is ultimately used in everyday life.

McCarthy (2001) furthers Spigel's analysis of the television by examining its appropriation in

public spaces. She suggests that the placement of televisions within public spaces informs us

about social processes functioning within society. Despite the television's traditional home

within the domestic sphere, McCarthy argues that the placement of the television in public

spaces is not just the `privatization of public space'.

Though much of the research in the social uses and effects of technology have been historical

analyses, this approach is particularly important when studying emerging technologies. People

map social relations onto new technology. Before technology can have an effect on society it

must first be used. When people first use a technology they take what they know of social

relations and incorporate it into their appropriation of the technology. Because the US is behind

in cellphone penetration, it is a particularly interesting time to study cellphone usage in this

context. This is not to say that cellphones have had no effects in the McLuhan sense. That is, the

medium itself does inevitability affect the interaction, but in understanding the greater usage

patterns, it's important to have a cultural and social context.

30
Some researchers have sought to explore technologies as they are first emerging. Just as

computers were making their way into organizations, Zuboff (1984) explored the social Zuboff

analyzed the psychological and organizational experience of the newly computerized work place.

She suggests that technological innovations do not lead to discrete effects, but instead alter the

social and organizational fabric of our world. The effects of new technologies are not direct, but

negotiated through people's construction and use of them. The adoption of new communication

technologies can change the landscape on which we perform our social lives. These changes in

the social landscape can have transformative implications for the way we live. As Zuboff writes,

"it is here in the realm of choice that technology reveals its indeterminacy. Though it redefines

the possible, it cannot determine which choices are taken up and to what purpose" (388).

New technologies offer new choices for social organization, but it is the negotiated appropriation

of these technologies which ultimately determines the technologies' effects on society.

31
CHAPTER -3

32
 Mobile Phones: Trends and Impact
Availability of mobile phones all around the locality (mainly in urban and suburban areas) has

provided people with an opportunity for communication that is beyond imagination. Many

people of Sitakund work and live abroad. Localities named as 'London'i Para' and 'Dubai Para'

are occupied by kin of these emigrants. Families' dependent on them often need to communicate

with them. People were earlier forced to travel a long distance and spend more money just to

make a call because of no-availability of digital phone and poor analog connection. It was

impossible for women to travel as mobility restrictions on them are quite severe. With available

mobile phones, calling centers have now grown even inside the remote villages. People now do

not have to travel all the way from village to the municipality to make a call inside or outside the

country. A number of the rural calling centers consist of just one mobile phone, a table and a

bench. Mobile phones used commercially have certainly created a new self-employment

opportunity for people. Many people have now generated a source of income by buying a mobile

with some small loans from NGOs or other sources.

It has also enabled people to keep the communication system personal. Because in earlier times

while making a call through landline at home and especially from shops, the phone set could not

be moved and people could not talk personal matters over the phone without others hearing it.

But now they can take the mobile set in their hand and move to a private distance and 'do

mobile'. This is the term that people often use here, 'doing mobile'.

Majority of the people having mobile phones use prepaid phone. It is because of the uncertain

monthly phone bill and an expensive line charge. This costs them more than the postpaid

33
facility, Often people call from shops even when they have their own mobile phone to save

some money. With a pre-paid mobile one has to pay Taka.6.90 per minute. This high cost has

gradually led towards a new trend that is often termed as 'Miss Call culture'. People have found

out the way of using missed calls so innovatively that it has almost turned to a culture.

Through this means, communications carries on effectively and no cost at all.

Mobile phones often result in new types of relationships. The fact that the people

communicating over the phone can remain unknown allows them to form new relationships

with unknown people more easily. For instance, people feeling close and dependent on others

whom they have never seen in their lives and do not know anything about except their names.

On the other hand, the new ,, behaviors emerging for new modes of communication may just

strengthen existing values. For instance, girls may be criticized for talking to strange men or

'`boys may not be given money for personal expenditure. It is interesting also to note that more

than the use of the phone its 'face value' is very high almost making it a fetish.

"Mobile phone is a very important aspect in a person's social status. The person who has a

mobile has a much higher position in various gossip, occasions or games. Moreover, if the

person's phone set is more valuable his position is much higher.”

Possession of this powerful digital tool can give people a sense of power as it is something not

every person can afford in rural places. It can bring about changes in peoples' personal and social

behavior. The same way it can change behavior towards the people who own it.

As a local researcher reports, people's view on a person who has acquired a mobile phone

recently

34
The Communication Divide

As often other literature points out there exists a divide between people who have access to

means of communication and information and those who do not. From this perspective, the

nations that do not have appropriate facility to get connected with the information superhighway

through modern telecommunication system are information poor. The digital divide is not

limited to computers only as it also includes other communication technologies. In the world 8%

of the people have never made a phone call (Digital Dividends, 2001). In Bangladesh there are

only 4 phone connections for every 1000 people. However, New York has more telephone

connections than all of rural Asia.

To have communication facility is a citizen's right in most of the countries. The spread of

telecommunication facility widens the scope of information access and dissemination in society

that in turn plays a vital role in social development. The powerful role of mobile phones in the

Sitakund area was discussed above. The right to have information is recognized by our

constitution and Universal Declaration of Human Rights. But telecommunication is yet to be

35
recognized as a condition of human right by the Government and non-government sectors of

Bangladesh. Billions of dollars have been spent through both Government and non-government

channels but poverty reduction has been less than 1 % per annum. Also, till now neither the

Government nor non-government sectors have introduced any programme considering

telecommunication a citizen's right. The present government has established telecommunication

network in some subdistricts and a few unions level. Companies such as Grameen, Aktel,

Citicell, Sheba and BRTA have begun cellular and fixed phone service.

Pacific Bangladesh Telecom Ltd. was first to introduce mobile phone service named 'Citicell' in

1991. They introduced in the market a total of 7500 cellular phones during 1991 to 1997. At that

time mobiles phones were sold for about hundred thousand taka as the company enjoyed a

monopoly in the market. Mobile phones used to be solely in the hands of rich people as a symbol

of status and power. The second phone company 'Grameen' broke this monopoly market of

'Citicell' in 1996. There came a momentum in the use of mobile phones after 'Grameen' was

given the license to vend mobiles. The cellular phone earlier costing hundred thousand taka

dropped down to the range of 5-6 thousand taka. The fashion and status consciousness of well-

off people went astray and mobile phones found its place in the hands of middle class, lower

middle class and even lower income class. At present there are around 1.5 million mobile

phones' in Bangladesh. The other two mobile companies are Sheba and Aktel. On the other hand

fixed telephones of BTTB, BRTA and Sheba range around 9 hundred thousand.

Yet a severe discrimination prevails in both Government and non-government

telecommunication services. At the beginning of this paper it was mentioned that the blessings of

mobile telecommunication system has reached the far corners of rural Bangladesh. But as seen

below this is only one side of the coin. The mobile telecommunication system is totally captured

36
and controlled by the corporations where the issues mainly relate to business and profit making.

Although according to the International Telecommunication Union's guidelines, 10% of the

phones should be at village level but it is no way a reality here. But there are many plans to

increase teledensity in cities.

There needs to be a move from looking at technology and asking, "What can we do with this?" to

looking at peoples needs and asking, "Which technology might help here?" (Norrish, P. 1998

FAO)

In this context it may be interesting to learn from other experiences. Mamun Goldar of Bhola

district started his computer related business along with a printing press business in the year

2000. At the same time he also started his alternative telecommunication service among the

telecom deprived people of Bhola. This alternative telecommunication system has now expanded

to 500 growth centers of Bhola. As it expanded through antennas made of Bamboo they call it

Bamboo telecommunication. At the beginning other entrepreneurs established this kind of

telecentre with the help of Mamum Goldar. Afterwards, the entrepreneurs of village centers

started providing teleservice at their own initiative. At the early stage one antenna would be at

Bhola district and the other one at a distance of 30-35 kms. Two common machines would be set

up at both ends. At present the connection has expanded from Bhola district Shodor to

Borhanuddin and many other areas. The telemodel of Bhola is now spreading in other parts of

the country.

Communication and means for communication are quite strongly intertwined with social life and

social relationships in any society. This also includes issues of social status. So when we talk

about introducing new means of communication there is always a potential for many significant

changes in practices and values - this is to some extent proved by the experience of mobile

37
phones. When we talk about bridging the digital divide through projects then some kinds of

telecommunication may be overlooked. The attention tends to be more on computers, radios and

other hi-tech gadgets. But the approach should be integrated considering the socio-cultural

implications the communication system with any of its aspects is able to create. There is always

a temptation to address the digital divide through introducing new technologies and hoping that it

would produce some positive result but the focus should be more concentrated to looking at

people's needs & finding out which technology may help in that particular geographic and

social-cultural situation. This is particularly important when we view communication in the

context of development and poverty alleviation.

38
CHAPTER -4

39
 RESEARCH METHODOLOGY
According to American Marketing Association " Market Research is the function which links the

customer, and public to the market through information used to identify and define marketing

opportunity and problem; generates defines and evaluate marketing actions , monitor marketing

performance and improve understanding as a process.

Market research specify the information regarding to address three issues; design the methods for

collection process ; analysis the result and communicate the finding and the implementation.

In other words research means search for knowledge and research methodology is a systematic

way to solve the research problem. It is a science of studying how the search is actually done. It

presents the sources of data collection, the sampling procedures and tools of investigation and

limitations of the study. My research project has a specified framework for collecting the data in

an effective manner. Such framework is called `research design'.

40
RESEARCH METHODOLOGY CONSISTS OF THE FOLLOWING:

OBJECTIVES.

The objectives of the project are as follows:

•:• To know the consumers preference regarding landline and mobile phone.

•:• To know the usage of landline and mobile phone.

•:• Consumer expectations from landline phone.

•:• Consumer dissatisfaction from landline phone.

SCOPE OF THE PROJECT

The study covers the following

Telecom sector

In Delhi market

The research methodology which was followed by me, consisted of the following steps:

DEFINING THE RESEARCH PROBLEM AND RESEARCH OBJECTIVES:

The definition of the problem includes the study of the topic Comparative study of mobile

service providers in Delhi.

DEVELOPING THE RESEARCH PLAN:

The development of research plan has the following steps-

DATA SOURCES: The two types of data were taken into consideration ie primary data and

secondary data. But major emphasis was given on gathering primary data. The secondary data

has been used for making things more clear.

The sources of information are:

1. Primary data:- primary data is defined as the data which is collected for the first time. It is

new in nature. This type of data is collected directly from the source of information. The

41
techniques, which were involved in collecting the primary data, are personal interview,

surveys, questionnaire etc.

2. Secondary data:- secondary data is that data which somebody else had collected and which

had already been passed through the statistical process. This indirect information is collected

from Newspapers, Journals, Business manuals, Pamphlets, Magazines etc.

 RESEARCH APPROACH: Surveys are best suited for descriptive research. Surveys are

undertaken to learn about people's knowledge, beliefs, preferences, satisfaction and so

on and to measure these magnitudes in the general public. Therefore I have done this

survey for the descriptive research process.

 RESEARCH INSTRUMENT: A close-ended questionnaire was constructed for my

survey. A questionnaire considered a set of questions was presented to CUSTOMERS.

 SAMPLING PLAN: The sampling plan calls for three decisions:

(a) SAMPLING UNIT: is "who is to be surveyed"? The target population must be defined that's

to be sampled it is necessary so as to develop sampling frames so that everyone in the target

population has an equal chance of being sampled. I have completed my survey in Delhi.

(b) SAMPLE SIZE: Sample size is how many people have to be surveyed?

Generally, large samples give more results than the smaller samples. The sample refers to the

number of respondants from the universe. My sample size was 100. I had to survey 20 users of

all the service providers.

(c) CONTACT METHOD: Once the sampling plan has determined , the question is how the

subject should be contacted, ie by telephone, mail or personal interviews. Here, in this survey I

have collected information from the respondents by way of personal interviews, questionnaire.

42
 SAMPLE TECHNIQUE: It is a plan for obtaining the sample. Due to constraints of time

convenient sampling was used. This sampling method involves purposive or deliberate selection

of particular units of the universe for constituting a sample, which represents the universe. In this

population elements are selected for inclusion in the sample based on the ease of access.

 ANALYSE THE INFORMATION: The next step is to extract the pertinent findings

from the collected data. In this report the collected data is tabulated and developed frequency

distribution. Thus frequencies; and percentages were prepared to render impact of the study.

Tabulation method was used. The data was converted into the absolute figures thus, making

comparison very easy as to different data can be compared relative to each other.

43
 LIMITATIONS
In market survey, there is a chance of high level biased responses, which the respondent

knowingly or unknowingly does not want o give to the researcher.

 Due to time and cost constraints, the sample size was limited to 100 consumers.

 Few respondents left out certain questions due o which sample size for certain analyses

has been reduced.

 The sample size taken for the study is quite small and it therefore doesnot represent the

whole population.

 Time and other factors, which are beyond the human limitations, have also a bearing on

the study.

 Since only limited number of customers have been selected which donot represent the

whole of the customers in Delhi.

 The respondents were discussing the questions prior to reply thus their could be biasness.

 Different promotional schemes offered by different companies were not known by the

respondent

44
CHAPTER -5
ANALYSIS AND FINDINGS

45
 Landline
4

Mobile 36

Both 40

INTERPRETATION

It is clear from the graph only 5% people have only landline phone,45%

people use only mobile phone and 50% people use both phones. The above data

shows that people have more interest to use mobile phone rather than landline

phone.

46
Mobile 70
Landline 10

INTERPRETATION

It is clear from the graph that 88% people's first preference is mobile phone. Only 12%

interested to use landline phone rather than mobile phone.

47
 More than 5 times a day 26

Between 1 and 5 times a day 20

More than 5 times a week 12

Once a week 12

Once a fortnight 6

Never 4

INTERPRETATION

The graph shows that 33% people use mobile phone more than 5 times a day, 25%

people use mobile phone between I and 5 times a day. Only 5% people say that they

never use mobile phone for conversation. These data shows that people are more

dependent on mobile phone w.r.t landline phone.

48
 Give you the convenience of calling 8

It make you easily accessible 4

It is easy to communicate 12

All of above 56

INTERPRETATION

It is clear from the graph that people use mobile because it gives convenience of

calling, easily accessible, privacy and easy to communicate. 70% people use mobile

for the above mentioned reasons.

49
 More
3 times a day 26
than
More
once a day 16
than
More
3 times a week 20
than
Less than once a week 12

Never 4

How often do you use landline phone for conversation

With friends and family

INTERPRETATION

The above graph show that 33% people use landline phone more than 3 times a day,

20% said that they use more than once a day and 15% said that they use less than 3

times a week. This study shows that people have less interest in landline phone.

50
 Cheap call rate 16

Message facility 12

Stylish and fashionable 8

Prepaid services 8

More feature 8

All of above 26

INTERPRETATION

I asked my next question, what do you more expect from landline phone 20% people

said that they want cheap call rate, 8% say that they want message facility and 22%

people want al above mentioned facility.

51
Yes 30

No 50

INTERPRETATION

Only 15 people said that they consider the cost of call when ringing landline from

mobile phone and 25 people don't bother about that.

52
 Everybody around you had one cell
34
with them

You wanted to buy it 8

Status symbol 14

Convenience 20

Business purpose 32

All of above 30

INTERPRETATION

I asked my next question that what factor/s motivate you to purchase a mobile. 26%

people said that everybody around them had one cell with them, only 11% people

said that they purchased for status symbol.

53
 Not allowed 4

Not required 2

Costly 2

Don't want connectivity 4

All of above 2

INTERPRETATION

I asked people why you don't have mobile with them, 29% people said that they don't

want connectivity. These people are mostly working in corporate on high

designation. 29% people said that they are not allowed by their parents. These

people are student and not allowed by their parents. 14% people said that it is costly

and they can't afford it.

54
 Calling your friends 20

Calling home 4

Business work 24

All of the above 50

INTERPRETATION

I asked from people that why you use the phone landline as well as mobile phone.

25% people said that they use phone to call their friends, 55% people said that they

use the phone for above mentioned reason in the graph .

55
 Totally agree 54

Somewhat agree 14

Neither agree nor disagree 6

Somewhat disagree 4

Totally disagree 2

INTERPRETATION

I asked my next question, is mobile is necessity for you, 68% people said that they are

totally agree with the statement. Only 2% said that they are totally disagree with the

statement. This shows that mobile become necessity today.

56
 Costlier than mobile phone 22

No privacy 26

No message facility 12

Low coneectivity 20

No carrying facility 14

All of the above 16

INTERPRETATION

The above graph show that 18% people said that it is costlier than mobile phone, 22%

dissatisfied because of privacy reason, 22% said that it has no carrying facility and 8%

are dissatisfied for all above mentioned reason.

57
 CONCLUSION
The following conclusions can be drawn from the project that I have completed

1. The consumer's first preference is mobile phone rather than landline phone.

2. Mobile phone provides many services like message facility, cheap call rate,

privacy etc, so consumer preferred mobile phone rather than landline phone.

3. Usage of mobile by the consumers is three times more than landline phone (in

average).

4. Consumer are dissatisfied with landline phone because it does not provide

facilities as like mobile phone.

5. Mobile become a necessity for every individual, they can not live without mobile

phone.

6. Consumer is unhappy with the connectivity of landline phone.

7. Mobile phone has become a status symbol in our society.

8. People use mobile phone more while calling to friends, home and business

related works.

9. Usage of mobile phone by the youth and teenagers are more than professionals.

58
ANNEXURE

59
 BIBLIOGRAPHY

• Philip Kotler, "Marketing Management",

• Eleventh Edition; Printace Hall, India.

• Harper W. Boyd Jr, Westfall & Stanley; "Marketing Research"; Seventh Edition;

AITBS.

• C.R.Kothari, "Research Methodology", Twenty second Edition; Wishwa

Prakashan.

60