CHAPTER 1: INTRODUCTION OF THE STUDY

Pay per second is one of the revolutions in the telecom sector. This revolution is
started by joint move, of Japanese telecom major DOCOMO along with TATA,
and has struck the market share like a thunderbolt. For the first time, all the major
players including airtel, reliance, bsnl, idea etc. Were made not only to notice but
to run for cover as DOCOMO within two weeks made astonishing nmber of
subscriber cutting into the market share of some major players. With that started
the price war. Every company brought down its tariffs and started “pay per
second” plans. And watching this war up high from a comfortable chair sits
laughing – “The Indian Customer”. He now does not need to keep a check on his
clock to stop himself from jumping to the next minute and at the same time keep
trying to make full use of the 60 seconds he was paying for, as now he has to pay
just for seconds and not the minutes. And as they say “money saved is money
earned”, so he will surely be earning few bucks more, so why shouldn’t he be
happy?

Clearly, it’s a win-win situation for the customer, but what about the companies?
Will they be able to keep making the same profits and boast proudly about their
big revenues? Well what seems as of now is, the revenues are surely going to go
down as the “pay per minute” model is going to take a serious beating from the
“pay per second” plan. The average earning per minute will fall and thus there will
be a decline in the revenues. And to add to the misery, because of this serious
cutthroat competition the STD and Roaming rates have also fallen into the trap of
“pay per second”- another blow to the revenues. In a highly saturated Telecom
Market this situation doesn’t seem so good.

So, in short term, it seems that companies will lose their revenues and this new
model of billing will get better of them. But as they say there is a bright side to
everything, with a period of time the sheer volume of subscribers will increase.
They will feel more free and inclined to make calls than before and the revenues
will soar again. As Shakespeare once said – “The Show Must Go On”, well, so it
will. The equal competitors are coming up with their new tariffs, plans, special

1
packs and their varying services to prove themselves to be much competitive and
trying to anchor them firmly in this mobile sector. Still many new operators are yet
to launch their services in days to come but existing ones don’t seem to leave a
bit of it. They convinced the people by their VAS plans and tariffs too. Currently
the Tata Docomo came up with its services with an all new tariff scheme of pay
per second which has brought out a massive revolution in the market. DOT’s
mandatory urged every operator to go with pay per second scheme. on 30th Oct
the leading mobile service provider Bharti Airtel launched their much awaited
“Pay Per Second” tariff all throughout India. And now days almost all the service
provider introduces pay per second scheme. Service provider like- aircel, airtel,
bsnl, tata docomo, idea, loop mobile, mtnl, mts, relisance, tata indicom, virgin
mobile, Vodafone etc. are providing pay per scheme.

Choose a Operator

CHAPTER 2: DATA ANALYSIS AND INTERPRETATION

2
1) Are you using pay per second scheme?
 Yes  No

YES NO
59 21

70
59
60

50

40

30
21
20

10

0
Yes No

Generally, the purpose of using pay per second is cost reducing. So, we can say
that the new trend towards the pay per second is in improving stage. There are
many kind of different schemes are available in the market. The high margin of
people is using pay per second in the present. In our survey, the 75% of the
people (total sample) using pay per second. Now, 25% of the people are using
different type of schemes.

2) Which company pay per second service are you using?

 TATA DOCOMO  AIRTEL  RELIANCE

3
  VODAFONE  IDEA  BSNL ___________

TATA DOCOMO AIRTEL RELIANCE VODAFONE IDEA BSNL TOTAL

11 12 7 12 11 6 59

14
12 12
12 11 11

10

8 7
6
6

0
TATA DOCOMO Airtel Reliance Vodafone Idea BSNL

There are many companies providing pay per second scheme. The most favorite
like TATA DOCOMO in the all comparative brands. Generally, the TATA
DOCOMO, AIRTEL, VODAFONE, IDEA are the most selected brand in network.
So, there are all people have different choice towards the brand selection. In the
present the competition is growing very fast. In our sample pay per second using
of TATA DOCOMO, AIRTEL, VODAFONE, IDEA are same. BSNL & RELIANCE
not too much popular among the people.

3) From when are you using this service?

 Less than 2 Month  Between 2 months to 4 Months

4
  Between 4 to 6 Month  More than 6 Month

LESS THAN 2 MORE THAN 6

2 TO 4 MONTH 4 TO 6 MONTH
MONTH MONTH
14 21 13 11

25
21
20

15 14
13
11
10

0
< 2 Month 2 to 4 Month 4 to 6 Month > 6 Month

Pay per second is a new scheme came in the last few months. We can say that
the most of the people are using the pay per second scheme in last few months.
TATA DOCOMO, VODAFONE, AIRTEL etc came into existence in providing a
scheme. The category of dividing people into using pay per second in period of
time is helpful to know the awareness of the people. The last 2-4 months, we can
say that the number of the people arise due to advertising or marketing of
different companies.

4) Is there any change in numbers of calls?

 Increase  Decrease  No change

5
 INCREASE DECREASE NO CHANGE
49 4 6

60

49
50

40

30

20

10 6
4

0
Increase Decrease No change

The question of reducing cost becomes formality itself. The change in number of
calls increase due to using pay per second. Generally the unnecessary second
we can remove it. To save 1 paisa and use it into other calls, it becomes a
common purpose of the every people. We can say that in our sample, more than
80% of the people are in the favor of the increase of number of calls.

5) By using this scheme, is there any cost reduction in your usage?

 Yes  No

6
 Yes No
47 12

50 47
45
40
35
30
25
20
15 12
10
5
0
Yes No

The 80% of the people in our sample believes that the cost reduction is possible.
To pay the rate for 1 minute is now become a costly. The 20% of the people are
not agree, because of they using other schemes like 50 paisa per minute, 25
paisa per minute, roaming charge, SMS, CDMA free talk time etc are the reason
for not using a pay per second scheme. There are a many chance of cost
reduction. The most of the people are in the favor of the reduction in cost or
rates.

6) Is there any reduction in the usage of other scheme like massages?

 Yes  No

7
 Yes No
39 20

45
39
40
35
30
25
20
20
15
10
5
0
Yes No

There are different schemes available in the market. The person can get the
advantage of using more than one scheme. The scheme of 75paisa per minute is
become a costly. The pay per second provides 60 paisa per minute. If person use
only 20 second to talk then the rate charged is only 20 paisa. So, it is very less in
compare to previous charge. The SMS scheme is now become a common. 1
paisa per SMS is now in recent period. The 60% of the people believes that in the
reduction of using other scheme.

7) Mark your experience with regard to following parameters.

PERTICULAR Very Good Natural Poor Very TOTAL

8
 Good Poor
Confirmed Response 21 28 9 -- 1 59

Minimum Balance
20 23 14 1 1 59
Required

Time saving Due to

16 18 15 5 5 59
less Talking

30
C onfirm ed
25 R es pons e

20

15
M inim um
B alanc e
10
R equired
5

0 Tim e
V ery Good Good Natural Poor V ery Poor
s aving
Conf irmed Res pons e 21 28 9 0 1
D ue to
Minimum Balanc e Required 20 23 14 1 1 les s
Time s av ing Due to les s Talking 16 18 15 5 5 Talk ing
Confirmed response suggests that by using pay per second scheme consumer
are getting confirmed response from other side. In this we can say those
consumers are satisfied with this scheme in case of confirmed response.

Minimum balance required for using this scheme is 10 paisa while for other
scheme it is more then that. Consumers response for with regard to this is like 20

9
very good, 23 good, 14 neutral and only 1 in poor and in very poor. It shows
satisfaction of consumer by this scheme.

Time saving due to less talking, in this case there is mix reply of consumer 16 are
saying that they have saved time by using this scheme. While in good category it
is 18, in neutral it is 15, and in poor and very poor it is 5-5. This shows mix reply
of consumer.

8. If no, why you are not using this scheme. Rank the parameter.
 Using Post paid  currently using other scheme

 Long Talk  Costlier than current scheme

Using Currently using other Costlier than current

Post paid scheme Long Talk scheme
5 5 6 5
4 8 4 5
5 3 8 5
7 5 3 6

10
9
8 8 Using P os t paid
8
7
7
6 6
6
5 5 5 5 5 5 5 Currently us ing
5 other s chem e
4 4
4
3 3
3 Long Talk
2
1
0 Costlier than
Using Post paid Currently using Long T alk Costlier than c urrent s chem e
other scheme current scheme
Why you are not using pay per second? The answer is very simple. The using of
other scheme is very improving in cost reduction. The post paid schemes provide
various types of rate. The bill discount is one of them. The long talk time in CDMA
is one of the reasons. The night calling, free talk time and many more other
scheme available in the market. It might be costlier than current schemes. So, we
can say that the most of the people are also using the different scheme without
the pay per second.

11
CHAPTER 3: FINDING

In our marketing research purpose we can say that the 75% of the people using pay per
second schemes. The number of people increasing for use of pay per second. Generally,
the TATA DOCOMO, AIRTEL, VODAFONE, IDEA are the most selected brand in
network. Pay per second is a new scheme came in the last few months. We can say that
the most of the people are using the pay per second scheme in last few months. The
80% of the people in our sample believes that the cost reduction is possible. So,
we can say that the result of findings is reducing cost. No pay for whole minute. Now it is
in a growing stage. Most of the us are also want to use pay per second.

CHAPTER 4: CONCLUSION

For the first time, all the major players including AIRTEL, RELIANCE, BSNL, IDEA etc.
were made not only to take notice but to run for cover as DOCOMO within two weeks
made astonishing number of subscribers cutting in to the market share of some major
players. Clearly, it’s a win-win situation for the customer, but what about the companies?
Will they be able to keep making the same profits and boast proudly about their big
revenues? Well what seems as of now is, the revenues are surely going to go down as
the “pay per minute” model is going to take a serious beating from the “pay per second”
plan So, in short term, it seems that companies will lose their revenues and this new
model of billing will get better of them. But as they say there is a bright side to
everything, with a period of time the sheer volume of subscribers will increase.

In this, we can say that the consumer is winner. Company reducing their cost and the
benefit goes to customers.

12
BIBLIOGRAPHY

marketing research by naresh malhotra, 2nd edition, pearson publication.

www.cellbharat.com

www.trai.com

13
 ANNEXURE

A PROPOSAL ON STUDY OF EFFECTIVENESS OF PAY

PER SECOND SCHEME

INTRODUCTION

The past months has seen some hectic activity in the Indian Telecom Sector. It’s
amazing how a little competition always keeps everyone on their feet. Each business
enterprise looking at the market as if through the eyes of a hawk for the next big
business opportunity .Each company trying to seduce the prospective customer with its
products. India, the future to be world’s largest mobile telephony market is now going
through a massive upheaval. Market leaders no longer have it easy and with the
introduction of the per second billing model, the competition has only gotten more cut
throat.

Plan after plan requiring you to remember how much you’d have to pay if you spoke for a
minute. How much to a phone using a rival’s network, how much for STD, how much for
ISD, etc.

All that has changed with the entry of Tata Docomo in the Indian market. Docomo got
the ball rolling by offering the per second model charging 1 paisa per second.

The competition and I mean everybody; Airtel, Vodafone, Reliance, BSNL, Idea
Cellular, Airtel and the smaller operators too have now begun offering the pay/second
model.

The activity in the TRAI (Telecom Regulatory Authority of India) offices with
regard to this matter has taken place at lightning speed.

14
The recommendation has been passed approving the model and immediately the
companies have launched the scheme to attract customers. Tata Docomo has
barely had the time to blink at the success of their initial few weeks in the Indian
markets!

15
In the short term this is a model which is going to hurt telecom operators with
their revenue. As much as a 15-20% loss in revenue is expected as a result of
the pay per second model

Are pay-per second plans for everyone?

Not really. Most operators have introduced per-second tariffs for only pre-paid
subscribers. And, you may have to forgo the freebies that come with other plans.

There is an obvious benefit in per-second billing, but the question is how much?
We already had plans, such as the 50-paise-per-minute ones, that cost less than
1 paisa per second. These work out cheaper for those who make longer calls.
per-second billing has worked wonders for new operators like Tata DoCoMo, who
can use the price difference to attract new subscribers.

So, if you are a post-paid subscriber, will it make sense to switch to per-second
plans? The answer lies in your usage pattern. While your monthly bill might come
down by 15 per cent, you will miss the special promotional services offered by
other tariff plans.

16
Hypothesis

H0:- pay per second scheme is not effective

H1:- pay per second scheme is effective

Research design
Exploratory research design

Sampling plan

Target population: - All mobile user in vidyanagar

Sampling unit: - User of pay per second scheme

Sample size: - 80

Sample method: - convenience non-probability sampling method

Scope of the study

 It will help us in gaining a practical knowledge

 It will help us in taking decision while purchasing this scheme

17
Data collection
Data will be collected through structured non disguised questionnaire

Data preparation and analysis

Data will be analyzed in the form of tables and graphs

Time scheduling, budget and cost

Time scheduling:-

Data collection 5 days

Data entry 2 days

Preparing table and graphs 1 days

Data analysis 1 days

Report preparation 4 days

Total 13 days

18
Cost:-

Stationary and photocopying Rs.150

Traveling expense Rs. 100

Miscellaneous expense Rs. 100

Total Rs. 350

QUESTIONNAIRE

Respected Respondent

We are students of MBA at G.H Patel Post Graduate Institute MBA Programme.
As part of our curriculum we are conducting a market survey for our project
titled,” To study on EFFECTIVENESS OF PAY PER SECOND SCHEME”. All
information from the survey will be used only for academic purpose. We want
your valuable time and response for this study. We request you to kindly fill in the
questionnaire and help us with our objective.

Name:

Occupation: Sex:

Age Group:  Below 20 Year  30 to 50 Year

19
  20 to 30 Year  More than 50 Year

1) Are you using pay per second scheme?

 Yes  No

if No, go to question no. 7

2) Which company pay per second service are you using?

 TATA DOCOMO  Airtel  Reliance

 Vodafone  Idea  Any other ___________

3) From when are you using this service?

 Less than 2 Month  Between 2 month to 4 Month

 Between 4 to 6 Month  More than 6 Month

4) Is there any change in numbers of calls?

 Increase  Decrease  No change

5) By using this scheme, is there any cost reduction in your usage?

 Yes  No

If No, Give your suggestion _____________________________________

___________________________________________________________

6) Is there any reduction in the usage of other scheme like massages?

 Yes  No

7) Mark your experience with regard to following parameters.

Very Good Good Average Poor Very Poor

Particular

Confirmed
Response

Minimum Balance
Required

20
Time saving Due
to less Talking

Others,
____________

8) If no, why you are not using this scheme. Rank the parameter.
 Using Post paid  Currently using other scheme

 Long Talk  Costlier than current scheme

 Any Other Reason: __________________________

21