Professional Documents
Culture Documents
I highly thankful to Dr. Anoop K Sharma (Sr. Lecturer in Commerce) for their
moral support that influences us in the completion of the report.
Last but not the least I am also thankful to our parents and friends who provided me
with their full cooperation for successfully completion of my project.
Rajni
Kumari
2
PREFACE
I am lucky that I got an opportunity for making the project report on Tele
communication companies from my own interest. Case study has been carried
out to study the present scenario of the CDMA technology. I visited the various
concerns for two months and prepare our project report on the topic
“CONSUMER BEHAVIOUR REGARDING GSM CELLULAR PHONES V/S
CDMA CELLULAR PHONES” and the study is divided into various chapters to
get knowledge. I also considered some published material on the particular topic
as well as about the concern. This helps me in boosting up my confidence and
determination, which will help me to face the situation in coming years.
This report is written account of what I learnt and experienced during my survey.
I wish, those going through it will not only find it readable but also get as useful
Information.
The main limitation that I experienced was that I did not get the full and correct
Information from the market, as many of the respondents did not answer to my
Questionnaire correctly completely.
3
TABLE OF CONTENTS
Page No.
a) Acknowledgement (i)
b) Preface (ii)
w) Bibliography
x) Annexure
5
List of Charts
INTRODUCTIO
N
TO
THE TELECOM
7
INDUSTRY
Introduction
To
GSM
8
Chapter – 1.1
Meaning of G.S.M
(Global System for Mobile)
The Global System for Mobile Communications (GSM: originally from Grouped
Special Mobile) is the most popular standard for mobile phones in the world.
GSM service is used by over 2 billion people across more than 212 countries and
very common between mobile phone operators, enabling subscribers to use their
phones in many parts of the world. GSM differs significantly from its
predecessors in that both signaling and speech channels are Digital call quality,
system. This fact has also meant that data communication was built into the
Chapter1.2
History of GSM
international enterprises in action. Below you will find a brief history of GSM,
describing how it all comes about and how the Association was born, has grown
and evolved. We also include the many people who contribute to the
milestones along the way. This history is complete from 1987 through 1997, a
The ultimate out come of the battle for dominance between these two competing
cellular data transmission technologies may lie more in their history then their
respective merits ton understands the current prevalence of GSM, one need of a
foundation in the forces that converged to push one technology ahead of their
other.
One of the most contentions battles being waged in the wireless infrastructure
industry is the debate over the efficient use and allocation of finite airwaves. For
10
several year, the word’s two methods –Code Division Multiple Access (CDMA)
and Global System for Mobile Communications (GSM) –have divided the
access to the European market now controlled by global system for mobile
communications (GSM). The wireless world is now divided into GSM ( much of
Bad timings may have prevented the evolution of one, single global wireless
standard. Just two years before CDMA’s 1995 introduction in Hong Kong,
European carriers and manufacturers chose to support the first available digital
technology – Time division multiple access (TDMA). GSM uses TDMA as its core
technology. Therefore, since the majority of wireless users are in Europe and
Asia, GSM has taken the worldwide lead as the technology of choice.
Mobile handset manufacturers ultimately split into two camps, as Motorola, lucent
and Nextel chose CDMA, and Nokia and Ericsson eventually pushed these
Advantages of GSM:
Western Europe. CDMA will work in Asia, but not France, Germany, the
more stable network with robust features. CDMA is still building its
network.
• The availability of subscriber identity modules, which are smart card that
GSM has the highest cellular mobile subscriber base, worldwide (76%)
crossed one billion in Feb. 2004. one billion of the worlds 1.5 billion of mobile
phones are of the GSM system (fixed phones world-wide are 1.2 billion).
GSM services are available in 206 countries with a total of 616 GSM
networks.
12
subscriber base (by 2005, total mobile connections are likely to exceed total
fixed line connections in India). A total of 360 billion short message services
(SMS) messages were sent through GSM networks in the year 2002.
Advantages of GSM
• GSM is mature; this maturity means a more stable network with robust
features.
• GSM covers virtually all parts of the world so international roaming is not a
problem.
• Tools for unlocking GSM phones are widely available. Meaning it is easier
to keep the same phone and go with another carrier using the same
technology.
Chapter – 1.3
GSM Growth In India
The subscriber growth saw a phenomenal increase from 2002 onwards. This was
Mainly due to lowered call tariffs and full-scale implementation of SMS services
all over India. December 2002, where India touched the 10 million mark could be
Defined as a milestone for Indian wireless industry.
Subscriber growth continued from 2002-03 and there were close to 22 million
Subscribers as of December 2003.
Two main elements for this phenomenal growth are 1. Lowered call tariffs & 2.
15
Free incoming calls Consumers who were once reluctant to subscribe to mobile
subscriptions founded feasible and convenient to avail as now there was hardly
any difference between the monthly bills compared to fixed line, and mobility was
definitely a crucial element.
The above phenomena in India is taking shape because of the presence of huge
Middle class population. On an estimate there are some 300 to 350 million
people belonging to this group in India. Unlike a car or a television set (where
one is enough in the family) with the lowered call tariffs it became possible even
for family members to own a mobile phone each.
HUTCHISON TELECOM
SPICE
• Brand Name: SPICE
BSNL Mobile
• Brand Name: BSNL
Chapter -1.4
GSM ( Global System for Mobile communication ) Player in
Punjab.
AIRTEL
BSNL
HUTCH
SPICE
1.AIRTEL:
“ As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world
approximately 8.7 million mobile and approximately 765,000 fixed line customers
as of September 30,2004.
Business strategy:
focus on providing mobile services.” The company has developed the following
geographical coverage.
customer satisfaction.
efficiencies.
Businesses:
• Mobile services
• Fixed line
Competitive strengths:
Bharti Tele-ventures believes that the following elements will contribute to the
India and will provide the company with a solid foundation to execute its business
strategy:
22
business opportunities.
• The strong brand name recognition and a reputation for offering high
2. SPICE :
51:49 joint venture between spice corp. (India) – the flagship company of M-corp.
Global group that first introduced India to mobile phone services and has
Operations:
Launched over six years ago under the brand name of “ spice “ the company’s
cellular services have already built up a strong customer base of over 7,00,000 in
two of India’s most challenging and lucrative markets – Punjab and Karnataka.
During the course of time spice has assumed the position of a market leader in
both the circles of its operation. In both the circles spice retains its leadership
position and continues to grow at a fast pace. Recently, spice Punjab added
another feather in its cap by being declared the number one operator for having
During the course of time spice has assumed the position of a market leader in
both the circles of its operation. In both the circles spice retains its leadership
position and continues to grow at a fast pace. Recently, spice Punjab added
another feather in its cap by being declared the number one operator having the
Today, spice has distribution strengths of over 5000 retail points in every comer
of Punjab. Spice has further introduced innovative tariff packages tailor – made
to extend its reach to more than 5,00,000 subscribers in Punjab, covering 93% of
urban population, with support from a strong operational and billing network.
customers all over the state. The company’s roll out plan is on target as it has
present the service is operational in 46 key towns / cities with coverage of more
professionally qualified.
Spice has invested a sum of Rs. 1,616 crores on its operations in Punjab.
3. HUTCH:
Hutchison telecom, one of the world’s leading cellular service providers, brings
hutch to you. We are known for our innovative approach and world-class
technology. Our goal is to provide you superior products and services, anytime
and anywhere.
Corporate profile:
Hutchison established its presence in India in 1994, through a joint venture with
max India limited. In 1995, Hutchison max telecom became the first operator in
Today, Hutchison is the one of the largest providers of cellular services in India
with presence in all the major regions – orange in Mumbai and hutch in Delhi,
It is also the country’s largest roaming operator, with a more extensive network in
Wampum limited, a fortune 500 company, and one of the largest companies
listed on the Hong Kong stock exchange. Its operations span 41 countries across
the Asia pacific region, Europe and the Americas. Hutchison affiliates jointly
account for the largest number of cellular subscribers in India numbering over 6
million.
4. BSNL :
(BSNL). Today, BSNL is the No. 1 telecommunications company and the largest
public sector undertaking of India with authorized share capital of $ 3600 million
and net worth of $ 13.85 billion. It has a network of over 45 million lines covering
5000 towns with over 35 million telephone connections. With largest digital
switching technology like OCB, EWSD, AXE-10, FETEX, NEC etc. and
DWDM system up to 80 gbps, web telephony, DIAS, VPN, Broadband and more
than 4,00,000 data customers, BSNL continues to serve this great nation its
Today, with over 45 million line capacity, 99.9% of its exchange digital, nation
traffic and over 4,00,000 route kms of network, Bharat Sanchar Nigam Ltd. Is
name to reckon with in the world of connectivity. Along with its vast customer
base, BSNL’s financial and asset bases too are vast and strong. Consider the
• The telephone infrastructure alone is worth about Rs. 1,00,000 crore (US
$ 21.2 billion)
CONCLUSION:
because of its good network coverage availability and reliability of services and
effective Customers care support. I also come to know that majority of people
have post paid connection because there is no any hidden cost involved in it.
Mostly customers have facing the problem with companies Airtel, Spice, Hutch,
and BSNL because of their network problem faced by them. Distortion and delay
in value added services from these reasons customers are not using these
services. Mostly customers have considered Airtel is one of the best services
provided in Himachal & Punjab Zone because other fast and efficient services.
28
INTRODUCTIO
N
TO
CDMA
29
Chapter – 2.1
Meaning of C.D.M.A
(Code division multiple access)
multiple access that divides up a radio channel not by time, nor by frequency
instead by using different pseudo-random code sequences for each user. CDMA
CDMA also refers to digital cellular telephony systems that make use of this
including the Global Positioning System and in the OmniTRACS satellite system
Chapter 2.2
History of CDMA
Code Division Multiple Access (CDMA) is both a modulation
And multiple access schemes.
Chapter 2.3
CDMA Segment overview
• Offered by 6 operators
Chapter 2.4
CDMA growth drivers
• Nationwide roaming
• Aggressive launch
33
There was a big debate in India just before the launch of CDMA services that will
it
Succeed or not? Recent trends reveal that CDMA is here to stay, but that doesn't
mean that it is going to overpower GSM.
The call tariffs over CDMA were initially lower as compared to GSM but today
CDMA and GSM call tariffs are moreover same.
The calls are tariffed again on the distance parameter, which is already explained
earlier.
Reliance Infocomm was the first private operator to start with the CDMA services
in India. However, BSNL and MTNL offered CDMA before Reliance they were
unable to tap subscribers.
Reliance’s strategic alliance with LG and Samsung to offer their handsets along
with their subscriptions proved to be a catalyst in the process. Tata Indicomm,
which was the second private operator to offer CDMA services initially, failed to
attract consumers but since early 2004, it has revived its strategy and has been
able to gain some market share.
6414047
34
Reliance TATA
Chapter 2.5
CDMA OPERATERS
Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a
place in the global fortune 500 lists the 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.
Dhuribhai was not just firmly rooted in traditional Indian values, but was also a
quintessentially modern man – the man of the new millennium. This was clearly
reflected in his passion for mega-sized projects, the most advanced technology
and highest level of productivity.
The corporate philosophy he followed was short simple and succinct- “Think big.
Think differently. Think fast. Think ahead. Aim for the best.” He inspired the
Reliance team to do better than the best not only in India but also in the world.
Dhirubhai Ambani, Founder & Chairman of the Reliance Group, had an acute
sense that education alone empowers people. He was the great communicator.
He communicated to inspire, to guide, to educate and to motivate.
often say: “make the tool of infocomm available to people at an affordable cost,
they will overcome the handicaps of illiteracy and lack of mobility.”
INFOCOMM BUSINESS
This makes the beginning of Reliance’s dream of ushering in the digital revolution
in India by becoming a major catalyst in improving quality of life and changing the
face of India. Its aim to achieve this by putting the power of information and
communication in the hand of the people of India at affordable costs.
Reliance Infocomm will extend its efforts beyond the traditional value chain to
develop and deploy telecom solution for India’s farmers, businesses, hospitals,
government and public sector organizations.
38
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 infocom 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. An investor family of over 3.1 million - India’s largest, trusts
reliance.
Reliance Industries Ltd. - India's largest private sector company
Reliance Industries Limited (RIL) is India's largest private sector company on all
major financial parameters with gross turnover of Rs 74,418 crore (US$ 17
billion), cash profit of Rs 9,197 crore (US$ 2.1 billion), net profit of Rs 5,160 crore
(US$ 1.2 billion), net worth of Rs 34,452 crore (US$ 7.9 billion) and total assets
of Rs 71,157 crore (US$ 16.3 billion).
RIL emerged as the only Indian company in the list of global companies that
create most value for their shareholders, published by Financial Times based on
a global survey and research conducted by Price water house Coopers in 2004.
RIL features in the Forbes Global list of world's 400 best big companies and in
FT Global 500 list of world's largest companies.
One out of every four investors in India is a Reliance shareholder. With globally
competitive capital and operating cost positions, Reliance Group dominates the
rapidly growing Indian market deriving over 80% of its revenues from the
domestic market.
International Roaming was implemented from 1st December 2003 in all RTL
circles, except Assam and North East where there is a restriction on international
roaming. Roaming with more than 300 operators across the globe has been
opened up through sponsor network using the signaling and billing solution from
Roam ware.
40
TATA INDICOM
• Brand Name: TATA or TATA Indicom
TATA INDICOM
Tata Teleservices is part of the INR 64,350 Crore (US$14.3 billion) Tata Group,
that has over 90 companies, over 210,000 employees and more than 2.16 million
shareholders. With an investment of over INR 9,000 Crore (US$ 2 billion) in
Telecom, the Group has a formidable presence across the telecom value chain.
The Tata Group plans an additional investment of around INR 9000/- Crore (US$
2 billion) in this sector in the next two years.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now
renamed Tata Teleservices (Maharashtra) Limited] in December 2002, the
company has swung into expansion mode. Tata Teleservices operates in 20
circles i.e. 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. The company has a customer base of over 3 million.
The investment in the company as of March 2004 totals INR 5995 Crore (US$
1200 million).
Tata Teleservices has recently, marked its entry into the Prepaid segment by
launching 100 % Sacchai True Paid, across all its existing 20 circles. With the
latest initiative, Tata Indicom has opened up new frontiers for the Indian prepaid
customers by offering 1-second pulse and 100 % talktime on True Paid.
42
The company will be shortly launching a new service for Corporate called Push-
To-Talk™ (first across the world to partner with Qualcomm for BREW Chat). This
service will be available for the masses across the country. Tata Indicom has
also launched a collection of 1000 mobile games one of the largest collections of
mobile games in the world.
The company has launched prepaid FWP and public phone booths, new
handsets, expand Wi-Fi across public hotspots, new voice & data services such
as BREW games, picture messaging, polyphonic ring tones, interactive
applications like news, cricket, astrology, etc.
Today, the company serves more than 3 million customers in over 824 towns.
With an ambitious rollout plan both within existing circles and across new circles,
Tata Teleservices will offer world-class technology and user-friendly services to
over 1000 cities in 20 circles by March 2005.
43
Chapter 3
SWOT Analysis of Telecom Industry
Strengths
Weakness
Opportunity
• M-Commerce
Threats
• Political instability
• Regulatory interference
45
Chapter – 4
Growth of GSM & CDMA Till 2007
46
47
Chapter – 5.1
Objective of the Research
Chapter 5.2
Scope of the Study
Scope defines the units to be covered and the practical implications of the study.
To get good results there must be a specific area and a respondent to which
yours study is concerned. There fore we covered following areas for our study-
Una
Nangal
Santoshgarh
I met the peoples of all ages groups with any type of demographical profiles
because mobile is today a service which is used by everyone for convenience of
the study. I divided the respondents in following segments.
Students
Businessman
Serviceman
Youth
GSM
Airtel
BSNL
Hutch
Spice
CDMA
Reliance infocom
Tata indicom
The finding of the survey will be useful for the above mentioned service
providers. They will be able to know about where they stand in the market and
how to reposition themselves to gain a differential advantaged.
49
Chapter – 5.3
Research Methodology
Sampling Design
Sampling design is a definite plan, which is determined before any data are
actually collected for obtaining a sample from a given population. I have used
Sampling unit
Students
Businessman
Serviceman
Youth
Sample Size
Sample size refers to the number of times to be selected from the universe to
constitute a sample. It should be optimum and must lead to the population so that
it leads to reliable results. In our study the sample size of respondent I have
150 peoples.
50
industry.
Chapter – 5.4
Analysis and interpretation
Mobile Subscriber
160
140
120
100
80 Series1
60
40
20
0
Yes No
In my survey of 150 peoples I find that 96% people have mobile and rest of 4%
have no mobile. So I can say that today all most people have mobile.
52
Market Share
CDMA
6%
GSM
CDMA
GSM
94%
By the analysis of the market I come to know that 94% peoples are using GSM
Service. And the rest 4% using CDMA. So I can say that GSM is ruling our
Spice
17%
Airtel
38% Airtel
BSNL
Hutch
Hutch Spice
33% BSNL
12%
By the analysis of market I come to know that Airtel is leading in the market
with the market share of 38%. Hutch is at second place with the market share of
33%. And the other two major players Spice and BSNL have market share of
Q3.(b)
Ans IN CDMA service……….
TATA
33%
Reliance
TATA
Reliance
67%
In case of CDMA service provider in Punjab there are only two major player are
Postpaid
27%
Prepaid
Postpaid
Prepaid
73%
for each operator but on an estimate 60-70% of the subscribers (of all the
Operators) are prepaid customers. The reasons for prepaid being so successful
in India are:
•During the days when incoming calls were not free, it was difficult to control the
Individual expense limit which prepaid easily solved.
•To avail a postpaid connection one needed documentation like address proof
etc.
•Teenage users whose parents wanted them to exercise restrain, founded easier
Research Says
Prepaid mobile service in both case GSM & CDMA have a great share in the
market. In my research I have found that the 73% of the mobile are using the
Connection of prepaid basis and the rest 27% peoples are using the post paid
Connections. But one another thing I have find that those peoples are the
Ans .
11%
18%
Cost
Service
17% Reg conn
Reloded value
Choice
3% 25% Advertisment
5% Friends
4% Family
17%
There are many factors which affect the preference the preference of the
Cost
Service
Regular connectivity
Reloaded with fixed value
Choice of handset
Advertisement
Friends & peer groups
Among all these factors I have realized that the customer is affected most by
58
the service of the service provider then after the cost customer gave preference
to the cost and then after this customer gave preference to the regular
connectivity and there is also a big effect of friends & pear groups on customer
choice. Other factor have also effect on the consumer choosing but they have
Ans
Series1
In my survey I have find that the most of the peoples are using mobile from
Attrection in Services
SMS
MMS
9% 6% GPRS
4% 34% Internet
3%
Roam service
10% Tariff plan
VAS
12% 5%
7% 10% Handset
Cus Care
Any Other
As shown in this chart I have also studded that which service attract the
Customer more and we have found that the most liked service by the customer is
SMS service and the other services are also attract the customer like GPRS,
But other services like VAS, Handset choice less attract the customer.
Q8. Mark the point on scale indicating the overall satisfaction level?
61
Ans.
C u s to m e r S a tis fa c tio n L e v e l
Values
S e rie s 1
1. Excellent 5%
2. Good 52%
3. Average 27%
4. Poor 8%
5. Very Poor 3%
Chapter – 5.5
63
“ Consumer is a king”
Some customers face problems relating to delivery. The problem is non-time delivery
and because of that problem it put stress on customers to take info products of some other
brands.
Some customer face problems relating to replacement of spare parts because of this they
never gives order of mobile to the main dealer or distributor, which will also affected the
goodwill of the distributor or dealer. And customers and distributors place the order of
some other brands or switch to other technology cellular phones.
Mostly customers have the same complaints regarding the schemes. Firstly, they don’t
get the information about new schemes of the products. Secondly, the schemes material is
not provided to them in time.
64
Chapter – 5.6.Recommendation
population especially in rural market there fore the marketers should try to
penetrate the rural market. To cover the rural market marketers should
educate the rural peoples about the services, which are provided by the
service provider. And market should realized the rural peoples the need
and the benefits of the telecommunication so that they attract toward their
services.
Most of the service user is prefer the best services and they shift to the
company, which provide them better service than other. So it is the big
weapon for the service provider that in order to increase their market
share
they have to provide the more as well as better services than the other
Competitors.
The other thing, which influences the service user more, is the cost of the
service. Indian consumer is very cost concisions and like to prefer the
Services which are more economical for them so service provider should
The other thing I found that the family & friends of a consumer
are also effects the choice of the consumer about choosing a particular
Other thing which I have found that the heavy user would like to prefer
the post paid connection and the light user like to choose the prepaid
Connection.
I have also find that the GSM service in popular among peoples those
are using mobile for general purpose and the business class like to use
SMS service is the most popular service among the mobile users and
other services like Roaming service, Tariff plans, customer care and
Present service user of mobile are looking almost satisfied from the
The new tariff plans which are launched time to time by the telecom
Chapter – 5.7
LIMITATIONS OF THE STUDY
The project study is limited to Una, Nangal, and Santoshgarh and hence
generalization of findings cannot be done.
BIBLIOGRAPHY
Research Methodology
- by C.R. Kothari
Internet Websites
- www.goggle.com
- www.tataindicom.com
- www.relianceinfo.com
- www.hutch.co.in
- www.tekesindiamobilestudy.com
68
QUESTIONNAIRE
Name:
Age:
Occupation:
Phone No. :
Address:
YES
NO
GSM
CDMA
GSM CDMA
I. Airtel I. Reliance
II. BSNL II. TATA Indicom
III. Hutch
IV. Spice
69
I. Cost
II. Service
III. Regular Connectivity
IV. Reloaded with fixed value
V. Choice of handset
VI. Advertisement
VII. Friends or Pear groups
VIII. Family
GSM
CDMA
Both
I. 0-3 Months
I. SMS
II. MMS
III. GPRS
IV. Internet
V. Roaming Service
VIII. Handset
X. Any other
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[I thank you for your kind cooperation, valuable inputs and time]
71
72