satisfaction survey of brand mts

7/31/2019 Satisfaction Survey of Brand Mts

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SUMMER TRAINING PROJECT REPORT

ON

SATISFACTION SURVEY

OF BRAND MTS

SUBMITTED TO: SUBMITTED BY:.

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ACKNOWLEDGEMENT

Summer training is an important part of Masters Degree in Management program

and I would like to express my heartfelt gratitude towards department of management

studies for giving me this opportunity. Initially I would like take the privilege to express

my deep sense of gratitude to, HOD Prof Mr. P.C Kavidyal for giving me an opportunity

to have a practical experience of job.

I also thankMr. Jitesh Bhashin(MTS Barielly) and Mr. Sunil(MTS Haldwani) for his

able guidance, constructive criticism, and the right amount of personal touch, which enable

the project in its present state.I would also like to thank My parents and all my Colleague for their Co-operation and

support throughout the development process of this report.

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CONTENTS

S.no Topic Page no

1 Introduction 5 A brief of telecom industry 5-27

MTS 27-30

2 Services Of MTS 31-41

3 Objectives of the study 42

4 Research Methodology 43-44

Scope of the study 45

Nature of the Study 46

Research instrument 47-49

5 Data Analysis 50

Graphs 51-52

SWOT Analysis 53

6 Limitation 54

7 Suggestions 55

8 Conclusion 569 Biblography 57

10 Annexure 58-63

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INTRODUCTION

A Brief of telecom industry:

1. INDUSTRYOVERVIEW

1.1 Background

The Indian Telecommunications network is the third largest in the world and the second

largest among the emerging economies of Asia. Today, it is the fastest growing market in

the

world. The telecommunication sector continued to register significant success during the

year and has emerged as one of the key sectors responsible for Indias resurgent Indias

economic growth.

1.1.1 Growth

This rapid growth has been possible due to various proactive and positive decisions of the

Government and contribution of both by the public and the private sector. The rapid strides

in the telecom sector have been facilitated by liberal policies of the Government that

provide

easy market access for telecom equipment and a fair regulatory framework for offering

telecom services to the Indian consumers at affordable prices.

1.1.2 Wireline Vs Wireless

It has also undergone a substantial change in terms of mobile versus fixed phones and

public

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versus private participation. The preference for use of wireless phones has also been

predominant in the sector.

Participation of the private entities in the telecom sector is rapidly increasing rate there by

presenting the enormous growth opportunities. There is a clear distinction between the

Global Satellite Mobile Communication (GSM) and Code Division Multiple Access

(CDMA)

technologies used and the graph below shows the divide between the two.

1.2 Segment wise Status

1.2.1 Wireline Services

With increasing penetration of the wireless services, the wireline services in the country is

becoming stagnant.

On the other hand, Broadband demand has picked up and promises to stabilise fixed line

growth.

1.2.2 GSM Sector

In terms of the Global System for Mobile

Communication (GSM) subscriber base this

now places India third after China and

Russia.China had 401.7 million GSM

subscribers.

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1.2.3 CDMA Services

CDMA technology was introduced in India as a limited mobility solution. The introduction

of CDMA services has created competition, lowered tariffs and offered many citizens

access

to communication services for the first time

1.2.4 Internet Services

Internet services were launched in India

on August 15, 1995. In November 1998

the government opened up the sector to

private operators. A liberal licensing

regime was put in place to increase

internet penetration across the country.

The growth of IP telephony or grey market is also a serious concern.

Government loses revenue, while unlicensed operation by certain operators violates the law

and depletes licensed operators market share.

New services like IP-TV and IP-Telephony are becoming popular with the demand likely

to

increase in coming years. The scope of services under existing ISP license conditions are

unclear.

1.3 Manufacture of Telecom Equipment

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Rising demand for a wide range of telecom equipment, particularly in the area of mobile

telecommunication, has provided excellent opportunities to domestic and foreign investors

in the manufacturing sector. The last two years saw many renowned telecom companies

setting up their manufacturing base in India. Ericsson has set up GSM Radio Base Station

Manufacturing facility in Jaipur. Elcoteq has set up handset manufacturing facilities in

Bangalore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of

manufacturing GSM mobile phones near Pune.

The Government has already set up Telecom Equipment and Services Export Promotion

Forum and Telecom Testing and Security Certification Centre (TETC). A large number of

companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in

India. With above initiatives India is expected to be a manufacturing hub for the telecom

equipment.

2 POLICY AND INITIATIVES

2.1 Regulatory Framework

The Telecom Regulatory Authority of India (TRAI) was set up in March 1997 as a

regulator

for Telecom sector. The TRAIs functions are recommendatory, regulatory and tariff

setting

in telecom sector.

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Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in

May,

2000. TDSAT has been empowered to adjudicate any dispute

between a licensor and a licensee

between two or more service providers

between a service provider and a group of consumers

hear and dispose of appeal against any direction, decision or order of TRAI

Tariffs for telecommunication services have evolved from a regime where tariffs were

determined by Telecom Regulatory Authority of India to a regime where tariffs are largely

under forbearance. TRAI intervenes by regulating the tariffs for only those services, the

markets of which are not competitive.

Universal Service Obligation Fund (USOF) exclusively for meeting the Universal Service

Obligation was established in April, 2002. The Universal Service Levy is presently 5 per

cent

of the Adjusted Gross Revenue (AGR) of all telecom service providers except the pure

value

added service providers like Internet, Voice Mail, E-Mail service providers etc. Indian

Telegraph Act has been amended in October2006 to provide support for all telegraph

services including mobile and broadband to bridge the digital divide.

With the introduction of the Unified Access Licensing Regime, operators can offer telecom

access services to consumers in a technology neutral manner, subject to fulfilling certain

conditions. Introduction of this regime has also broken the legal/regulatory impasse

between

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the cellular and basic service providers. Issuance of Intra-Circle Merger and Acquisition

Guidelines provide investors an opportunity to take stakes in existing telecom operations.

2.2 Government Initiatives

The Government has taken the following main initiatives for the growth of the Telecom

Sector:

All telecom services have been opened up for free competition for unprecedented

growth.

217 (Information Technology Agreement) ITA-I items are at zero Customs Duty.

Specified capital goods and all inputs required to manufacture ITA-I, items are at zero

Customs Duty

Availability of low cost mobile handsets

The international Long Distance Services (ILDS) opened with effect from April 2002.

Calling Party Pays (CPP) regime was implemented with effect from 1st May

Guidelines for Unified Access Service License regime were issued in November 2003,

27 licenses out of 31 Basic Service Licenses were converted to Unified Access Service

Licenses

In April 2004, license fee for Unified Access Service Providers (UAS) was reduced by 2

per cent

License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of the

Adjusted Gross Revenue and spectrum charges between 2 to 4 per cent in June 2004

Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry

fee for ILD reduced to Rs. 2.5 Crore from Rs. 25 Crore

Lease line charges have been reduced to make the bandwidth available at competitive

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prices to facilitate growth in IT enabled services

One India plan i.e. single tariff of Re. 1/-per minute to anywhere in India was

introduced from 1st March 2006 by the Public Sector Undertakings. This tariff was

emulated by most of the private service providers also. This scheme has led to death of

distance in telecommunication and is going to be instrumental in promoting National

Integration further

The robust telecom network has also facilitated the expansion of BPO industry that is

having 500,000 employees now and adding 400 employees per day.

Annual license fee for National Long Distance (NLD), International Long Distance

(ILD), Infrastructure Provider-II, VSAT commercial and Internet Service Provider

(ISP) with internet telephony (restricted) licenses was reduced to 6 per cent of

Adjusted Gross Revenue (AGR) with effort from Jan 2006.

The Governments policy is neutral on use of technology by telecom service providers

subject to availability of scarce resources such as spectrum etc.

Licence Fees 6-10 per cent of Adjusted Gross Revenue (AGR)

2.3 Foreign Direct Investment Policy

Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the

telecom manufacturing segment in 1991 - when India embarked on economic liberalisation.

FDI is defined as investment made by non-residents in the equity capital of a company. For

the telecom sector, FDI includes investment made by Non-Resident Indians (NRIs),

Overseas Corporate Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs),

American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) etc.

Present FDI Policy for the Telecom sector:

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In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value

Added Services and Global Mobile Personal Communications by Satellite, FDI is

limited to 49 per cent (under automatic route) subject to grant of licence from the

Department of Telecommunications and adherence by the companies (who are

investing and the companies in which investment is being made) to the licence

conditions for foreign equity cap and lock-in period for transfer and addition of equity

and other license provisions.

Foreign Direct Investment up to 74 per cent permitted, subject to licensing and

security requirements for the following:

- Internet Service (with gateways)

- Infrastructure Providers (Category II)

- Radio Paging Service

FDI up to 100 per cent permitted in respect to the following telecom services:

- ISPs not providing gateways (Both for satellite and submarine cables)

- Infrastructure Providers providing dark fibre (IP Category I)

- Electronic Mail

- Voice Mail

The above is subject to the following conditions:

- FDI up to 100 per cent is allowed subject to the condition that such

companies would divest 26 per cent of their equity in favour of Indian public

within 5 years, if these companies are listed in other parts of the world.

- The above services would be subject to licensing and security requirements,

wherever required.

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- Proposals for FDI beyond 49 per cent shall be considered by Foreign

Investment Promotion Board (FIPB) on a case-to-case basis.

In the manufacturing sector 100 per cent FDI is permitted under the automatic

route.

In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile

Personal Communications by Satellite, FDI is permitted up to 49 per cent (under

automatic route) subject to grant of license from Department of Telecommunications

Foreign direct investment up to 74 per cent permitted, subject to licensing and

security requirements for the Internet Service (with gateways), Infrastructure

Providers (category-II), Radio Paging Service

FDI up to 100 per cent permitted in respect of

- ISPs not providing gateways (both for satellite and submarine cables),

- Infrastructure Providers providing dark fibre (IP Category I);

- Electronic Mail; and

- Voice Mail

FDI up to 49 per cent is also permitted in an investment company, set up for making

investment in the telecom companies licensed to operate telecom

services. Investment by these investment companies in a telecom

service company is treated as part of domestic equity and is not set of

against the foreign equity cap.

Manufacturing - 100 per cent FDI is permitted under automatic route.

FDI is subject to the following conditions

FDI up to 100 per cent is allowed subject to the conditions that such companies

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would divest 26 per cent of their equity in favour of Indian public in 5 years, if these

companies are listed in other parts of the world.

The above services would be subject to licensing and security requirements,

Wherever required.

Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case

Basis.

3. COMPETITION OVERVIEW

3.1 Major Players

Bharat Sanchar Nigam Limited (BSNL)

Year of Establishment 2000

Company Profile Bharat Sanchar Nigam Ltd. is World's 7th

largest Telecommunications Company

providing comprehensive range of telecom

services in India: Wireline, CDMA mobile,

GSM Mobile, Internet, Broadband, Carrier

service, MPLS-VPN, VSAT, VoIP services, IN

Services etc. Within a span of five years it has

become one of the largest public sector unit in India.

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Global Presence/ Marketing It has a network of over 45 million lines covering

5000

Network towns with over 35 million telephone

connections.

Future Prospect BSNL plans to expand its customer base from

present 47 millions lines to 125 million lines and

infrastructure investment plan to the tune of Rs. 733

crores (US$ 16.67 million) in the next three years.

Mahanagar Telephone Nigam Limited (MTNL)


Company Profile MTNL was set up by the Government of

India

to upgrade the quality of telecom services,

expand the telecom network, introduce new

services and to raise revenue for

telecom development needs of Indias key

metros. MTNL with a market share of about

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13% of the National telecom Network has a

customer base of 5.92 million. The Govt. of

India currently holds 56.25% stake in the

company.

Acquisitions / Strategic Alliances MTNL has formed a Joint Venture company

in Nepal by the name of United Telecom Ltd.

(UTL) in collaboration with Telecom

Consultants India Limited (TCIL) in 2001 for

providing WLL based basic services in

Nepal. MTNL has set up its 100% subsidiary.

Mahanagar Telephone Mauritius Limited.

(MTML) in Mauritius, for providing basic,

mobile and international long distance.

Videsh Sanchar Nigam Limited (VSNL)


Company Profile The Videsh Sanchar Nigam Limited (VSNL)

a wholly Government owned corporation.

Thecompany operates a network of earth

stations, switches, submarine cable systems,

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and value added service nodes to provide a

range of basic and value added services and

has a dedicated

work force of about 2000 employees. VSNL's

main gateway centers are located at Mumbai,

New Delhi, Kolkata and Chennai.

Global Presence/ Marketing Network The company has 52 subsidiaries in 21

countriesas well as operations across four continents.

Acquisitions / Strategic Alliances VSNL acquired Nasdaq-listed Teleglobe

International Holdings Ltd for $239 million

in 2005 Videsh Sanchar Nigam Ltd acquired

Tyco Global Network, submarine cable

system, for USD 130 million in 2005

Future Prospect The company plans to expand its wholesale

voices services across the EU, to effectively

enable enterprise customers and retail voice

carriers to connect to India. VSNL is adding

its capacity to meet the overwhelming

demand for connectivity to India in the

wholesale voice services domain. The

company is also offering

flexible agreements and charging methods to

meet the growing demands of the wholesale

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voice market

Reliance Communication


Company Profile Reliance Telecom's cellular services are

available in 340 towns within its eight-circle

footprint. Reliance Infocomm also offered for

the first time in India, mobile data services

though its RWorld mobile portal. This portal

leverages the data capability of the CDMA

1X network. Reliance Infocomm offers a

complete range of telecom services covering

mobile and fixed line telephony including

broadband, national and international long

distance services, data services and a wide

range of value added

services and applications aimed at enhancing

productivity of enterprises and individuals.

Global Presence/ Marketing Network Reliance Communications has IP-enabled

connectivity infrastructure comprising over

150,000 kilometers of fiber-optic cable

systems

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in India, the US, Europe, Middle East, and

the

Asia Pacific region.

Acquisitions / Strategic Alliances International wholesale telecommunications

Service provider, FLAG Telecom

amalgamates with Reliance Gateway, a

wholly owned subsidiary of Reliance

Infocomm in 2004.

Tata Teleservices


Company Profile Tata Teleservices is a part of the $12 billion

Tata Group, which has 93 companies, over

200,000 employees and more than 2.3

million

shareholders. Tata Teleservices bouquet of

telephony services includes Mobile services,

Wireless Desktop Phones, Public Booth

Telephony and Wireline services. Other

services

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include value added services like voice

portal,

roaming, post-paid Internet services, 3-way

conferencing, group calling, Wi-Fi Internet,

USB Modem, data cards, calling card

services

and enterprise services.

Global Presence/ Marketing Network Tata Teleservices has presence in across 19

circles that includes Andhra Pradesh,

Chennai,

Gujarat, Karnataka, Delhi, Maharashtra,

Mumbai, Tamil Nadu, Orissa, Bihar,

Rajasthan,

Punjab, Haryana, Himachal Pradesh, Uttar

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

Kolkata, Madhya Pradesh and West Bengal.

Acquisitions / Strategic Alliances Tata Teleservices has acquired Hughes

Tele.com (India) Limited [now renamed Tata

Teleservices (Maharashtra) Limited] in 2002

Future Prospect The company is also expanding its footprint,

and has paid Rs. 4.17 billion ($90 million) to

DoT for 11 new licenses under the IUC

(interconnect usage charges) regime.

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Vodafone

Name Vodafone

Year of Establishment Acquired majority stake in Hutch Essar in

India,

by buying out complete stake of Hutch in

2007, Essar is still minority stakeholder in

company

Company Profile Vodafone Essar in India is a subsidiary of

Vodafone Group Plc and commenced

operations in 1994 when its predecessor

Hutchison Telecom acquired the cellular

licence

for Mumbai. Vodafone Essar now has

operations in 16 circles covering 86% of

India's

mobile customer base, with over 45.78

million

customers. Vodafone Essar, under the Hutch

brand, has been named the 'Most Respected

Telecom Company', the 'Best Mobile Service

in

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the country'

and the 'Most Creative and Most Effective

Advertiser of

the Year'.

Global Presence/ Marketing Network It has operations in 25 countries across

partner networks with over 200

million

customers worldwide.

Future Prospect Vodafone Essar is expecting to touch over 35

million customers across 400,000 shops and

thousand of hutchs own employees along

with

employees of its business associates.

Idea

Name Idea


Company Profile Idea Cellular is part of the Aditya Birla

Group,

which is India's first truly multinational

corporation. Aditya Birla Nuvo Ltd. holds

35.7

per cent, Birla TMT Holdings Ltd. 44.9 per

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cent, Grasim 7.5 per cent, and Hindalco 10.1

per cent in Idea.

Global Presence/ Marketing Network Has a customer base of over 17 million,

IDEA

Cellular has operations in Delhi,

Maharashtra,

Goa, Gujarat, Andhra Pradesh, Madhya

Pradesh, Chattisgarh, Uttaranchal, Haryana,

UP West, Himachal Pradesh and Kerala.

Acquisitions / Strategic Alliances Merged with Tata Cellular Limited in 2001,

thereby acquiring original license for the

Andhra

Pradesh Circle Acquired RPG Cellular

Limited

and consequently the license for the Madhya

Pradesh (including Chattisgarh) Circlein

2001 In

2004 acquired Escotel, incumbent cellular

service provider in Haryana, UP(W) &

Kerala

and new licensee in HP Acquired Escorts

Telecommunications Limited (subsequently

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renamed as Idea Telecommunications

Limited)

in 2006 Merger of seven subsidiaries with

Idea

Cellular Limited in 2007

Future Prospect Idea also plans to enter rural and neglected

circles as a strategy to gain subscribers. Other

advancements in the telecom industry will

help

it cut costs - use of e-mail to send bills to

customers; sharing cell sites; smaller base

transmission stations that will mean lesser

infrastructure requirements and expenses and

independent tower operators. Along with its

plan to go for a national long distance

licence, it

will also look at international long distance in

the near future.

Bharti airtel

Year of establishment 1985

Company Profile Bharti Tele-Ventures Limited was

incorporated

on July 7, 1995 for promoting investments in

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telecommunications services. Its subsidiaries

operate telecom services across India.

Bhartis

operations are broadly handled by two

companies: the Mobility group and the

Infotel

group.

Global Presence/ Marketing Network The mobile business provides mobile & fixed

wireless services using GSM technology

across

23 telecom circles while the Airtel Telemedia

Services business offers

broadband & telephone services in 94 cities.

Acquisitions / Strategic Alliances Bharti Telecom and British Telecom formed

A 51%:49% joint venture, Bharti BT Internet

forproviding Internet services, in 1998 Bharti

Tele-Ventures acquired an effective 32.36%

equity interest in Bharti Mobile(formerly JT

Mobiles), the cellular services provider in

Karnataka and Andhra Pradesh circles in

1999.

Bharti Telesonic entered into a joint venture,

Bharti Aquanet, With SingTel for

establishing a submarine cable landing

station at Chennai in 2001

A 50:50 joint venture between Bharti and

SingTel, to undertake the largest

infrastructure

project between Singapore and Indian

companies in 2001

Future Prospect Bharti Airtel company is planning to set up

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3000 more towers as part of enhancing their

rural coverage and will now focus on rural

and semi-urban areas.

MTS

ABOUT SSTL (SISTEMA SHYAM TELESERVICES)

Sistema Shyam TeleServices:

Sistema Shyam TeleServices Ltd (SSTL) is the fastest growing telecom company in the

competitive Indian market, with over 11 million voice subscribers and over 7 lakh mobile

broadband customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema

company of Russia, to bring the globally acclaimed telecom brand MTS to India.

Millward Brown in its 2011 report on Most Valuable Global Brands has ranked MTS 80th

with a brand value of $10.9 billion.

Sistema Shyam TeleServices Ltd. (SSTL) is a joint venture between Sistema {LSE: SSA}

of Russia, the Russian Federation and the Shyam Group of India. The Russian Federation

holds a 17.14% stake in the company. Sistema is the majority shareholder with a 56.68%

stake, Shyam Group holding a 23.98% stake and the remaining 2.2% being held by the

public.

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HISTORY

MTS was established in October 1993 by Moscow City Telephone Network (MGTS), T-

Mobile Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens

AG (Siemens) and several other shareholders. In late 1996, Sistema JSFC acquired a

majority stake in MTS and has remained the primary owner ever since.

MTS was the first company to launch GSM services in the Moscow region in 1994. In

subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of

smaller independent players and became the leading national mobile operator.

MTS initiated its international expansion in 2002 through the establishment of Mobile

TeleSystems LLC, a joint venture with Beltelecom, the national fixed line operator in

Belarus.

In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in

Ukraine, the biggest CIS market outside of Russia.

MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone

operator in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash

Communications Technologies, Inc., the number one operator in Turkmenistan.

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In September 2007, MTS continued its international expansion through the acquisition of

the leading mobile operator in Armenia, K-Telecom.

In December 2008, MTS started to expose its brand outside the CIS borders. MTS and

Shyam Telelink Limited, JSFC Sistema's telecommunications subsidiary in India,

announces the agreement to allow shayam telelink to use

MTS brand in India. The decision to introduce the brand to India is reflective of the brands

success in the Companys markets of operation since its launch in May 2006. In April

2008, MTS brand was recognized as one of the BRANDZ Top 100 Most Powerful

Brands, a ranking published by the Financial Times and Millward Brown, a leading global

market research and consulting firm.

Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS.

MTS is a multinational corporation of a new type, based in a high-growth emerging market

and simultaneously entering other developing markets with a unified brand. Having been

recognized internationally for corporate governance and transparency, MTS is not only a

leading Russian blue-chip company, but a truly global organization.

MTS Brand

MTS is the global telecom brand of Mobile TeleSystems (MTS) OJSC (NYSE: MBT) of

Russia. In December 2008, Sistema Shyam TeleServices Ltd, a joint venture between

Sistema (LSE-SSA) of Russia and Shyam Group of India, brought the MTS brand into

India under a brand license agreement with Mobile TeleSystems (MTS) OJSC. This

extended the brand of MTS beyond the CIS countries.

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As part of the 2011 Millward Brown report on Most Valuable Global Brands MTS is

ranked 80th with a brand value of $10.9 billion. In 2008, MTS became the first and only

Russian brand to enter BRANDZ Top 100 Most Powerful Brands, a ranking published

by the Financial Times and Millward Brown.

Brand MTS was launched in 2006 in Russia and got built based on its reputation as the

leading telecommunication group offering world class telecom services in Russia, Eastern

Europe and Central Asia.

In India, brand MTS offers voice & data services to over 11 million subscribers and

operates across all 22 telecom circles of India. MTS launched the high-speed mobile

broadband service, MBlaze, in November 2009 and has seen tremendous market

acceptance with over 7 lakh satisfied mobile broadband customers. The high speed mobile

broadband service has been made available in more than 150 towns (Including all Metros)

across the country. In April 2010, MTS is also credited to have launched its LIVE TV and

Video on demand service, aptly called MTS TV for all MBlaze customers.

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SERVICES OF MTS

Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a

multinational corporation of a new type, based in a high-growth emerging market and

simultaneously entering other developing markets with a unified brand.

The decision to introduce the brand to India is reflective of the brands success in the

Companys markets of operation since its launch in May 2006. In April 2008, MTS brand

was recognized as one of the BRANDZ Top 100 Most Powerful Brands, a ranking

published by the Financial Times and Millward Brown, a leading global market research

and consulting firm. In INIDIA MTS provides both voice and data services including tele

and internet services.

TELECOM SERVICES.

DATA SREVICES.

HIGH SPEED INTERNET.

TELECOM SERVICES

In INDIA MTS has launched its CDMA service only providing customers with CDMA

handsets and CDMA sims card. Being a CDMA service provider the voice clarity and

connectivity of MTS is more than just good. This can be justified as MTS has over 11

million subscribers all over INDIA.

Under telecom services MTS provides handsets, sim cards ,paper recharge and E-top

ups .The handsets provided by MTS are bundled with a sim card or MTS connection.

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Separate sims are also provided by MTS. The handsets bundled with sim cards are only

compatible MTS handsets only and they range from Rs599 to Rs5000.

The most popular handset of MTS provided to the retailer is the Rs599

one. The handsets sold along with the sim cards are called H.B.O or hand set bundled offer

below is the scheme offered to the retailer for H.B.Os.

Cost of the handset Rs 654

Billed To the customer Rs 599

F.R.C Rs 85

Reverse to the retailer Rs 180

I.D Claim Rs 10

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Thehandset is billed to the retailer for Rs 654 and he sells it for Rs 599 to the customer on

which the retailer also fills a n FRC or first recharge of Rs 85.This FRC provides the

customer 900 free minutes of call time for three months, these 900 minutes are not

provided to the customer at a single go but are given according to the given break ups.

For three months customer gets per month 300 minutes out of which 200

minutes are allotted for MTS to MTS only (on net) and 100 minutes for MTS to other

providers (off net).

At first look it seems that the retailer is at loss, buying the handset for Rs 654

and selling it at Rs 599 however after filling the FRC of Rs 85 the retailer gets a reverse e-

topup fill of Rs 180 on his MTS sim and also he receives Rs 10 as the ID claim bringing

down his cost to Rs 549.

The other scheme is for non HBO sims(without handsets).

Cost of sim to MTS Rs 30

Cost to the retailer Rs 50

Billed to the customer Rs 100

FRC Rs 251Cash back as e-top up Rs 221

ID Claim Rs 10

In non HBO schemes only sim cards are sold(CDMA sim cards only) which are

billed to the retailer at Rs 50 each. The retailer sells it to the customer at Rs 100, and fills

an FRC of Rs 251,through this FRC the customer gets a total of 2700 minutes for three

months. The breakup of these 2700 minutes is as follows:

For three months the customer will receive 900 minutes (for each month) out of

these 900 minutes, 600 minutes will be for MTS to MTS calling (on net) and 300 minutes

will be for MTS to other (off net).The retailer gets Rs 221 as reverse e-top up fill for the

FRC of Rs 251 and Rs 10 for each ID claim.

REQUIREMENTS FOR ACQUIRING MTS CONNECTION:

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Step 1: The document checklist

Passport-sized Photograph that has been self-attested

A copy of Proof of Identification (POI):

PAN Card or

Drivers License or

Voters ID Card or

Passport

And also a copy of Proof of Address (POA):

Ration Card or

Drivers License or

Voters ID Card or

Passport

Step 2: MTS PROVIDES TWO OPTIONS TO ITS

CUSTOMERS.

1. MTS CONNECTION WITH HANDSET : Being a CDMA company MTS

provides its connections with handsets varying in range from Rs.599 to Rs

5000.The Rs.599 variant being the most popular as it is one of the cheapest

handset available along with connection in the market.

2. MTS connection without the handsets : MTS also provides open sim cards

which can be used on a CDMA mobile phone providing greater flexibility

to its customers

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MTS Tariff guide

For paper and other E-Recharge various denominations are offered by MTS below is the

complete tariff guide of MTS.

Lifelong Validity * (till 24th Jan 2028) Rates (Rs.)

SIM 49

Talk Value# 0

Call Charges (Rs./min)

Local

MTS Mobiles 1paisa/ second

Other Mobiles & Landlines 1paisa/ secondSTD

All Mobiles and Landlines 1paise/ second

Message Charges (Rs./SMS)

SMS

Local Re.1

National Rs. 1.5

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International Rs.5

*Minimum of Rs.200 cumulative recharge over a period of 6 months. #As per

first recharge (FRC)

MTS OFFERS for New Customers - First Recharge Coupons

FRC 203


MRP 203

Talktime 50*

ST 18.96

All Local & STD Calls 1p/2sec#

Validity 6 months

Message Charges (Rs./SMS)

SMS

Local Rs.1

National Rs.1.5

International Rs.5

FRC 55

Call Charges (Rs./min)MRP Rs. 55

Talktime Rs. 0

Validity 365 Days

Offer

Every time 25% extra Talk Value of recharged RCV

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FRC 97


MRP Rs. 97

Talktime Rs. 0

Service Tex Rs.9.06

Processing Fee Rs. 87.94

Validity 6 months

MTS - MTS Local 1p/4s

MTS Others 1p/2s

MTS - All STD 1p/s

Top UP's

MRP Rs.

Service Tax

Rs.

Processing Fee Rs. Talktime Rs. Remarks

10 0.93 0 9.07 Core Validity





Top Up 150


MRP Rs. 150

Talktime Core TT Rs. 100 + Promo TT Rs.100

Promo TT Validity 30 Days

Service Tex Rs. 14.01


Top Up 80


MRP Rs. 80

Talktime Promo TalkTime Rs.100

Promo TT Validity 30 Days

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Service Tex Rs.7.47


STV Type MRP Validity Benefit

SMS offer 29 30 Days100 local/ national SMS per

day

On net offer 79 30 Days Unlimited

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HIGH SPEED INTERNET

MBlaze combines the convenience of USB Modems with great utility value. MBlaze

Premium USB modems also functions as your data storage device. Choose your MBlaze,

and just plug it in to start surfing.

MBlaze is a highspeed wireless broadband service using CDMA 1x RTT network

or EVDO data network it can provide a speed upto 3.1 mbps.

CHARACTERSTICS OT M BLAZE:

Plug & Play

Just plug your MBlaze USB modem and hit the Welcome Page.

On the Welcome Page you can view:

Your account balance

Shortcuts to your favorite websites

You can also recharge your account or opt for the MBlaze of your choice

Choose your Top-Up

All circle specific voice tops applicable.

Available on e-recharge and web recharge

Charges to be deducted from your existing MBlaze account balance

Roaming charges: No roaming charges on MTS network.

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OBJECTIVES OF THE STUDY

The objective of the study aims to cover the following aspects of the project.

The main objective of SUMMER INTERNSHIP PROGRAM was to find out the

causes for hindrance of MTS and to find out the demand of retailers and also get

feedbacks from them regarding the service of MTS.

The project aims to study the process used by sales executives of MTS to service

the retailers.

To check the specific need of retailers regarding services.

To find out he customer preference.

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods/techniques but also the methodology. Researchers not only need to know

how to develop certain indices or tests, how to calculate the mean, the mode, the median or

the standard deviation or chi-square, how to apply particular research techniques, but they

also need to know which of these methods or techniques, are relevant and which are not,

and what would they mean and indicate and why. Researchers also need to understand the

assumptions underlying various techniques and they need to know the criteria by which

they can decide that certain techniques and procedures will be applicable to certain

problems and others will not. All this means that it is necessary for the researcher to design

his methodology for his problem as the same may differ from problem to problem. For

example, an architect, who designs a building, has to consciously evaluate the basis of his

decisions, i.e., he has to evaluate why and on what basis he selects particular size, number

and location of doors, windows and ventilators, uses particular materials and not others and

the like. Similarly, in research the scientist has to expose the research decisions to

evaluation before they are implemented. He has to specify very clearly and precisely what

decisions he selects and why he selects them so that they can be evaluated by others also.

From what has been stated above, we can say that research methodology has many

dimensions and research methods do constitute a part of the research methodology. The

scope of research methodology is wider than that of research methods. Thus, when we talk

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of research methodology we not only talk of the research methods but also consider the

logic behind the methods we use

in the context of our research study and explain why we are using a particular method or

technique and why we are not using others so that research results are capable of being

evaluated either by the researcher himself or by others. Why a research study has been

undertaken, how the research problem has been defined, in what way and why the

hypothesis has been formulated, what data have been collected and what particular method

has been adopted, why particular technique of analysing data has been used and a host of

similar other questions are usually answered when we talk of research methodology

concerning a research problem or study

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SCOPE OF THE STUDY

The scope of the study has been limited to sample size of 150 respondents due to the time

and cost constraints. However, the scope of the study with respect to geographical area is

restricted to the city of Haldwani, Nainital including or out off city limits like Lalkuan

,Bhowali, Bhimtal.

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NATURE OF STUDY

It was an exploratory research and the basic aim of exploratory research is to gain

familiarity with the phenomena or to achieve new insights into it. So the study has tried to

find, who have the maximum influence on the decision making of the retailers and the

various methods through which the sales of MTS could be increased.

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RESEARCH INSTRUMENT:

As we know there are three ways of collection of data:

1. EXPERIMENTAL RESEARCH METHODS

2. OPINION BASED RESEARCH METHODS

3. OBSERVATIONAL RESEARCH METHODS

EXPERIMENTAL RESEARCH METHODS

The first method is the straightforward experiment, involving the standard practice of

manipulating quantitative, independent variables to generate statistically analyzable data.

Generally, the system ofscientific measurements is interval or ratio based. When we talk

about scientific research methods, this is what most people immediately think of, because

it passes all of the definitions of true science. The researcher is accepting or refuting the

null hypothesis.

The results generated are analyzable and are used to test hypotheses, with statistics giving a

clear and unambiguous picture.

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This research method is one of the most difficult, requiring rigorous design and a great deal

of expense, especially for larger experiments. The other problem, where real life organisms

are used, is that taking something out of its natural environment can seriously affect its

behavior.

It is often argued that, in some fields of research, experimental research is too accurate. It

is also the biggest drain on time and resources, and is often impossible to perform for some

fields, because ofethical considerations.

OBSERVATIONAL RESEARCH METHODS

Observational research is a group of different research methods where researchers try to

observe a phenomenon without interfering too much.

Observational research methods, such as the case study, are probably the furthest removedfrom the established scientific method. This type is looked down upon, by many scientists,

as quasi-experimental research, although this is usually an unfair criticism. Observational

research tends to use nominal or ordinal scales of measurement.

Observational research often has no clearly defined research problem, and questions may

arise during the course of the study. For example, a researcher may notice unusual behavior

and ask, What is happening? or Why?

Observation is heavily used in social sciences, behavioral studies and anthropology, as a

way of studying a group without affecting their behavior. Whilst the experiment cannot be

replicated orfalsified, it still offers unique insights, and will advance human knowledge.

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Case studies are often used as a pre-cursor to more rigorous methods, and avoid the

problem of the experiment environment affecting the behavior of an organism.

Observational research methods are useful when ethics are a problem.

OPINION BASED RESEARCH METHODS

Opinion based research methods generally involve designing an experiment and collecting

quantitative data. For this type of research, the measurements are usually arbitrary,

following the ordinal or interval type.

Questionnaires are an effective way of quantifying data from a sample group, and testing

emotions or preferences. This method is very cheap and easy, where budget is a problem,

and gives an element of scale to opinion and emotion. These figures are arbitrary, but at

least give a directional method of measuring intensity.

Quantifying behavior is another way of performing this research, with researchers often

applying a numerical scale to the type, or intensity, of behavior by definition, this

experiment method must be used where emotions or behaviors are measured, as there is no

other way of defining the variables.

Whilst not as robust as experimental research, the methods can be replicated and the results

falsified.

Questionnaire Method:

This Method of data collection is quite popular, particularly in case of big enquiries. In this

method a questionnaire is provided to a person concerned with the request to answer the

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question and return the questionnaire. A questionnaire consists of number of printed or

typed in definite form or set of forms. In observation method only the effect can be

observed while the case remains unknown.

More ever observation method requires special observational skill on the part of the

Researcher where as through questionnaire asking to the people who are thought to have

the desired information collection of data becomes easy. Questionnaire is set of question

with some space for answer. The questionnaire for the report consists of open ended, closed

ended type of questions.

TYPE OF RESEARCH

Exploratory research is also known as qualitative research. This type of research is used to

discover new relationship. It looks of hypothesis tentative answers to questions that solves

as a guide for most research project. This project is also exploratory in nature. I have

conducted research with the help of questionnaire. I have also taken personal interview

with different retailers and customers who provide key information about their level of

satisfaction and grievances. There were 8 different questions in my questionnaire which

focused problem solving seeking objective. This report is prepared on the basis of answer

given by various retailers.

1. Type of research: Exploratory research

2. Data Source: Primary Data

3. Data Collection Techniques: Questionnaire Method and personal interview.

4. Contact Method: Personal Interview

5. Sample Size: 150

6. Sampling Procedure: Convenience Sampling and Random sampling.

PRIMARY DATA

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Primary Data is the data which is directly taken by the company in this case however the

data is collected from various retailers of Nainital, Bheemtal, Bhowli, Haldwani and

lalkuan.

DATA ANALYSIS:

Total 70

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Total 28

Total 33PRC(Paper recharge coupon):-

Inferences:

From these graphs it is clearly defined that the number of paper recharge coupon and sim

card is less compare to others E-top up and handsets some reason are:-

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1. These are CDMA sims so the customer need to have special kind of mobile which

supports CDMA sim as well thats why retailer not prefer to have the sim.

2. The reason for paper recharge coupon to be less is that the retailer get only profit as form

of E-top up so they dont prefer PRC.

SWOT ANALYSIS

Following is the SWOT Analysis for MTS

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STRENGTHS

Focused on telecom.

Good voice clarity.

High speed internet connectivity.

Pan India presence.

WEAKNESS

Lack of advertisements.

Lack of retailer education.

Slow and irregular distribution channel.

Weak market presence.

OPPORTUNITIES

Attractive schemes and cheap handsets are

attracting customers.

MTS can capitalize on the sloppy CDMA

market of India with attractive schemes and

network.

THREAT

Biggest threat is the weak and disruptive

distribution channel especially in the hillyareas which makes the retailers skeptic about

the company.

Threat from already existing CDMA

companies. Especially those companies which

provide CDMA as well as GSM services.

Cheap hand sets maybe attracting customers

but they lack in performance, which leads to

customer dissatisfaction,there by tarnishing the

companies image in the market.


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LIMITATIONS:

Every market survey faces certain limitations so is true with this satisfaction survey which

faces two major limitations

1. Validity

2. Reliability

VALIDITY: This survey does not involve the whole population only a part of the

population is taken for survey which comprises the sample size. This satisfaction survey is

only true to the sample size that has been covered, the preferences satisfaction

dissatisfaction and feedback may vary with different sample sizes and a complete

conclusion of the whole population cannot be drawn with this satisfaction survey.

RELIABILITY: The satisfaction survey is only true for a particular period of time as with

time the taste and preferences of the people tend to change thus limiting the scope of the

survey.

Suggestion:

1. Increase the market promotion to aware more and more customers about the

CDMA networks.

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2. Using an aggressive marketing approach would prove more beneficial in solidifying

the image of MTS.

3. Improvement in the network reception especially in outskirts of the city.

4. Retailers want the monetary benefit on sale of handsets and sim rather than the

increase in e-top-up.

5. CDMA market is slowly becoming obsolete.

6. Sales promotion activities should be encourage more and more in the region of

haldwani, bhimtal and bhowali.

7. To improve the Brand image of MTS, company should support and sponsor the

local tournaments.

8. Company should have the proper distribution channel.

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BIBLOGRAPHY:

Market Management By Philip Kotl;er

www.google.com

www.mtsindia.co.in

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satisfaction survey of brand mts

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