1.1 Introduction To Aircel
1.1 Introduction To Aircel
1 Introduction to Aircel:
The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. During this period, the company gained a foothold in 9 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal. The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility company in Businessworlds List of Best Mid-Size Companies in 2007. Additionally, Tele.net recognised Aircel as the best regional operator in 2008. With over 10 million customers in the country, Aircel, the fastest growing telecom company in India, has revved up plans to become a full-fledged national operator by 2009.
1.1.3 Recent corporate history In 2002, Maxis purchased Timecel, a rival mobile service provider, from TimedotCom Berhad. Prior to the purchase, Maxis offered phone numbers beginning with 012, and TimeCell 017. Now, subscribers can choose between the two. In 1999, Maxis introduced the popular pre-paid brand "Hotlink", which currently has 6.3 Million customers. On April 27, 2007, an offer was made to buy out Maxis and privatise the company in preparation for expansions into the Indonesian and Indian markets. The deal was offered by Ananda Krishnan, who pledged Maxis RM17.46 billion (US$5.1 billion) in exchange for all remaining shares of the company. The offer is to be formally made by Usaha Tegas, a company owned by Krishnan, on May 3, 2007, while the Kuala Lumpur Stock Exchange suspends trading of the company's shares until May 3. 1.1.4 Majority shareholders Maxis Communications is part of Ananda Krishnan's business empire. In 1996, the company launched Malaysia's first two satellites; MEASAT 1, 2 and 3. A fourth satellite, MEASAT 1R, is currently under construction. Saudi Telecom Company bought 25% of Maxis. 1.1.5 Maxis 3G Maxis officially launched its 3G services on July 1, 2005 (the 3G datacard service was soft-launched earlier in February 2005). The 3G service is available in selected regions of the country since nationwide coverage does not make economic sense (due to the high CAPEX involved). The main coverage areas include:
The Klang Valley (including large part of Kuala Lumpur and Selangor) - the initial launch in July 2005 Penang - Dec 2005 Johor Bahru - Jan 2006 Kuantan - Sept 2006
Maxis appears to be adopting a "thick coverage" strategy for 3G. This means 3G service will be rolled out only in areas where data traffic is heavy, or with strategic importance (example, Putrajaya which is the government's administrative centre). The rest of the country will be served by 2.5G (GPRS; nationwide coverage) which is progressively being upgraded to 2.75G (EDGE or E-GPRS). The key "shouting points" for Maxis 3G appear to be:
video call & videomail packet-switched video streaming services (including live channels, video-ondemand & video clip downloads) Traffic Check (Maxis claims to have 50 video cameras installed around Klang Valley, Penang & Johor Bahru) Full-track music download 3G datacard
In Sept 2006, Maxis launched 3.5G (HSDPA) as part of the "wireless broadband modem" service which is targeted at "mass market consumer/home" users (instead of business or corporate). Maxis is progressively upgrading its entire 3G network to 3.5G capability. As of Dec 2006, the entire Penang island, and part of Klang Valley/JB/Kuantan are already 3.5G-capable.
In addition to hospitals, Apollo operates Nursing and Hospital Management colleges, pharmacies, diagnostic clinics, medical transcription, third-party administration and telemedicine. Through its wholly owned subsidiary, Apollo Health and Life Science Limited, the Apollo Group has set up a chain of nearly 60 branded day-to-day retail clinics on a franchised basis across India and the Middle East. This is the first time healthcare delivery has been successfully franchised in India. Apollo Group companies
Apollo Pharmacies Apollo Health and Lifestyle Limited Apollo Health Street Incorporated Medvarsity Online Ltd Apollo Telemedicine Networking Foundation Apollo Hospitals Education & Research Foundation
Apollo Pharmacies Apollo Health and Lifestyle Limited Apollo Health Street Incorporated Medvarsity Online Ltd Apollo Telemedicine Networking Foundation Apollo Hospitals Education & Research Foundation
1.1.3.2 Aircel Postpaid: Aircel offers you postpaid plans which are tailor-made to suit your calling needs. You can now explore the world of limitless possibilities by subscribing to an Aircel postpaid plan!
India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of telecom revenues to GDP is 2.1 percent as compared with over 2.8 percent in developed economies (CRISIL, www.ibef.com). Indian telecom sector has undergone a major process of transformation through significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing being opened for private sector and were later followed by National Telecom Policy (NTP) in 1994 and NTP'1999. Historically, the telecom network in India was owned and managed by the Government considering it to be a natural monopoly and strategic service, best under state's control. However, in 1990's, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. Policy reforms can be broadly classified in three distinct phases
" The Decade of 1980's saw private sector being allowed in telecommunications equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed and a Telecom Commission was set up to give focus to telecommunications policy formation.
" In 1990s, telecommunications sector also benefited from the general opening up of the economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector.
o
Universal service covering all villages and one PCO per 500 persons in urban areas at the earliest (targeted to be achieved by 1997) Telecom services at affordable and reasonable prices World standard quality of services
o o
" NTP 1999 brought in the third generations of reforms in the Indian telecommunications sector. Telecommunication Services
1.1.2
1.1.2.1 Fixed Service Providers(FSPs) Fixed line services consist of basic services, national or domestic long distance and international long distance services. The domestic market (i.e. excluding international revenues), has been growing more than 5 per cent annually during the past three years, and has a current market size of Rs 30,164 crores, with a base of 43 million lines. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in 18 circles, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. As a result, averagerevenues-per-user (ARPU) of private operators are more than twice those of the stateowned service providers. The main revenue contributing value added services were NLD and ILD. The reduction in NLD and ISD tariffs punctured the potential of the key revenue streams. Internet telephony for ISD worsened the potential. Added to it was the phenomenal growth rate in cellular services. Growth Drivers The Government has allowed unlimited competition in the basic sector. Considering the inherent advantage of scale that the incumbent state operators have, the private companies are setting their networks very selectively and targeting corporate clients with value added services. The government has introduced unified license for fixed and
mobile service providers. This allows all phone companies to become mobile operators by offering cellular and landline/WLL-M services under a single authorization, ending service-specific licensing. Indian fixed line network is likely to expand as the current low level of telephone penetration is very low coupled with the unmet demand for connections. India's fixed line telecom network is estimated to expand to about 47 million by March 2005 from 43 million in March 2004 (ICRA report, http://www.trade.uktradeinvest.gov.uk). The rate of growth in services revenues is however, likely to be lower in comparison with the pace of increase in the number of fixed lines. 1.2.3.2 Cellular Services: There are 25 private companies providing Cellular Services in 19 Telecom Circles and 4 Metro cities, covering 1500 towns across the country. Presently, there are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment. Several GSM cellular service companies are climbing the EDGE bandwagon. Hutch has already started and Bharti has made test calls on the EDGE platform and the company is in talks with Siemens for EDGE-enabling some of its circles. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent. Previously, they were only allowed to buy companies outside their circle. Regulatory Structure The lack of clarity in the regulatory structure has made it difficult to predict the prospects for this industry. This uncertainty has best been typified by the issuance of a fourth license and the controversies with reference to limited mobility players. The Cellular Services was thrown open for third & fourth Service providers in 2002. The number of service providers increased to 68 in the year 2002-03 from 42.
Growth Drivers Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. 1.2.3.3 Internet Service Provider Internet has become very easily accessible with cyber cafes /kiosks increasing their density, not only in the metro towns but also in semi-urban towns. There is no restriction on the number of internet companies and more than 185 companies are operational. Internet telephony has been allowed officially from 1 April 2002. The growing demand of corporates for applications such as Electronic Commerce, internet leased lines, ISDN, VPN etc is driving the growth of the internet services market. However, the industry continues to face a number of bottlenecks in terms of regulatory treatment of ISPs, high bandwidth prices, low PC penetration, high cost of telephone access etc.
1.1.3 History
On 24 May 1844, Samuel Morse sent his first public message over a telegraph line between Washington and Baltimore, and through that simple act, ushered in the telecommunication age. Barely ten years later, telegraphy was available as a service to the general public. In those days, however, telegraph lines did not cross national borders. Because each country used a different system, messages had to be transcribed, translated and handed over at frontiers, then re-transmitted over the telegraph network of the neighbouring country. Given the slow and unwieldy nature of this system, many countries eventually decided to establish arrangements which would facilitate interconnection of their national networks. However, because such arrangements were managed by each country at a national level,
setting up telegraph links often required a huge number of separate agreements. In the case of Prussia, for example, no less than fifteen agreements were required for the link between the capital and the frontier localities bordering other German States. To simplify matters, countries began to develop bilateral or regional agreements, so that by 1864 there were several regional conventions in place. The continuing rapid expansion of telegraph networks in a growing number of countries finally prompted 20 European States to meet to develop a framework agreement covering international interconnection. At the same time, the group decided on common rules to standardize equipment to facilitate international interconnection, adopted uniform operating instructions which would apply to all countries, and laid down common international tariff and accounting rules. On 17 May 1865, after two and a half months of arduous negotiation, the first International Telegraph Convention was signed in Paris by the 20 founding members, and the International Telegraph Union (ITU) was established to facilitate subsequent amendments to this initial agreement. Today, some 140 years later, the reasons which led to the establishment of ITU still apply, and the fundamental objectives of the organization remain basically unchanged. 1.2.3.1 A New Industry Evolves Following the patenting of the telephone in 1876 and the subsequent expansion of telephony, the International Telegraph Union began, in 1885, to draw up international legislation governing telephony. With the invention in 1896 of wireless telegraphy the first type of radiocommunication and the utilization of this new technique for maritime and other purposes, it was decided to convene a preliminary radio conference in 1903 to study the question of international regulations for radiotelegraph communications. The first International Radiotelegraph Conference held in 1906 in Berlin signed the first International Radiotelegraph Convention, and the annex to this Convention contained the first regulations governing wireless telegraphy. These
regulations, which have since been expanded and revised by numerous radio conferences, are now known as the Radio Regulations. The year 1920 saw the beginning of sound broadcasting at the improvised studios of the Marconi Company, and in 1927, the International Radio Consultative Committee (CCIR) was established at a conference held in Washington D.C. The International Telephone Consultative Committee (CCIF, set up in 1924), the International Telegraph Consultative Committee (CCIT, set up in 1925), and the CCIR were made responsible for coordinating the technical studies, tests and measurements being carried out in the various fields of telecommunications, as well as for drawing up international standards. The 1927 International Radiotelegraph Conference also allocated frequency bands to the various radio services in existence at the time (fixed, maritime and aeronautical mobile, broadcasting, amateur and experimental), to ensure greater efficiency of operation in view of the increase in the number of radiocommunication services and the technical peculiarities of each service. At the 1932 Madrid Conference, the Union decided to combine the International Telegraph Convention of 1865 and the International Radiotelegraph Convention of 1906 to form the International Telecommunication Convention. It was also decided to change the name of the Union to International Telecommunication Union. The new name, which came into effect on 1 January 1934, was chosen to properly reflect the full scope of the Unions responsibilities, which by this time covered all forms of wireline and wireless communication. 1.2.3.2 A Modern Approach In 1947, after the Second World War, ITU held a conference in Atlantic City with the aim of developing and modernizing the organization. Under an agreement with the newly created United Nations, it became a UN specialized agency on 15 October 1947, and the headquarters of the organization were transferred in 1948 from Bern to Geneva. At the same time, the International Frequency Registration Board (IFRB) was established to coordinate the increasingly complicated task of managing the radio-frequency spectrum;
the same year, the Table of Frequency Allocations, introduced in 1912, was declared mandatory. In 1956, the CCIT and the CCIF were merged to form the International Telephone and Telegraph Consultative Committee (CCITT), in order to respond more effectively to the requirements generated by the development of these two types of communication. The following year was marked by the launch of the first artificial satellite, Sputnik-1, and the beginning of the space age. In 1963, the first geostationary communications satellite (Syncom-1) was put into orbit following the suggestion, made by writer Arthur C. Clarke in 1945, that satellites could be used for the transmission of information. In order to meet the challenges of new space communications systems, in 1959 CCIR set up a study group responsible for studying space radiocommunication. In addition, an Extraordinary Administrative Conference for space communications was held in 1963 in Geneva to allocate frequencies to the various space services. Subsequent conferences made further allocations and put in place regulations governing the use, by satellites, of the radio-frequency spectrum and associated orbital slots. In 1992, allocations were made for the first time to serve the needs of a new kind of space service using nongeostationary satellites, known as Global Mobile Personal Communications by Satellite (GMPCS). The same year, spectrum was identified for IMT-2000, the ITU-developed next-generation global standard for digital mobile telephony. Due for commercial implementation early in this new millennium, IMT-2000 will harmonize the incompatible mobile systems currently in use around the world while providing a technical foundation for new, high-speed wireless devices capable of handling voice, data and connection to online services such as the Internet. 1.2.3.3 The Developing Role of the Union In 1989, the Plenipotentiary Conference held in Nice recognized the importance of placing technical assistance to developing countries on the same footing as its traditional activities of standardization and spectrum management. To this end, it established the
Telecommunication Development Bureau (BDT) to step up efforts being made to improve communications in the developing regions of the world. At the same time, against a background of increasing globalization and the gradual liberalization of world telecommunication markets, the Nice Plenipotentiary Conference initiated a re-evaluation of the Unions structures, operation, working methods and the resources allocated to enable it to achieve its objectives. The conference established a committee of experts whose task was to make recommendations on changes which would ensure that the Union continued to respond effectively to the needs of its members. In 1992, a plenipotentiary conference, known as the Additional Plenipotentiary Conference, took place in Geneva and dramatically remodelled ITU, with the aim of giving it greater flexibility to adapt to todays increasingly complex, interactive and competitive environment. As a result of the reorganization, the Union was streamlined into three Sectors, corresponding to its three main areas of activity Telecommunication Standardization (ITU-T), Radiocommunication (ITU-R) and Telecommunication Development (ITU-D). The new system also introduced a regular cycle of conferences to help the Union rapidly respond to new technological advances. 1.2.3.4 Into the Next Millennium The Kyoto Plenipotentiary Conference in 1994 adopted the first-ever strategic plan for ITU, which advocated a more client-oriented approach and a programme of activities centred around the changing roles, needs and functions of ITU members. In addition, the Kyoto conference identified a need for a forum where members engage in broad, informal discussions on global telecommunication policies and strategies. It thus established the World Telecommunication Policy Forum (WTPF), an ad hoc meeting which encourages the free exchange of ideas and information on emerging policy issues arising from the changing telecommunication environment. The first WTPF was held in Geneva in 1996 on the theme of global mobile personal communications by satellite, the
second in Geneva in 1998, on trade in telecommunication services, and the third in 2001, also in Geneva, on Internet Protocol (IP). The Unions most recent plenipotentiary conference, held in Marrakesh from 23 September to 18 October 2002, endorsed the organizations Strategic Plan. In the period 2004-2007, the priority actions to be undertaken by the Union will seek to achieve the goals set out in the plan, which include bridging the international digital divide by facilitating development of fully interconnected and interoperable networks and services and taking a leading role in the preparations and follow-up of the World Summit on the Information Society. It also specifies that ITU develop tools, based on contributions from members, to safeguard the integrity and interoperability of networks. The Conference also stressed the need for Internet Domain Names to reflect the geographical and functional nature of the Internet with an equitable balance of interests of all stakeholders. Recognizing that access to Internet should be available to all citizens on a non-discriminatory basis, the Conference resolved that the management of Internet Domain Names and addresses should be of concern to both governments and the private sector and requested ITU to take a significant role in the domain name debate. Given ITUs role in the development of IP standards and protocols for IP-based networks, the Conference called for greater partnerships with Internet standardization organizations, governments, private sector and for a greater outreach to developing countries. ITU will continue to review and adjust its priorities and its working methods to ensure it remains relevant and responsive in the face of rapid changes in the global telecommunication environment. As the world becomes ever more reliant on telecommunication technologies for commerce, communication and access to information, ITUs role in standardizing emerging new systems and fostering common global policies will be more vital than ever before.
course or instruction. Responses to exam or quiz items may also be considered a type of instructional product. Use product analysis to gain insight, assess changes in instructional practice, or measure the effects of instruction. Suggested uses of product analysis:
Determining whether you are communicating learning objectives Determining whether assignments are teaching learning objectives Identifying skills, concepts, and resources students use when creating a product Assessing strengths and weaknesses of assignments or products Identifying possible changes to student products Measuring the effects of an instructional change or innovation as part of a quasiexperimental design
Not suitable for assessing individual student performance May not reveal reasons for poor quality work or failure to meet learning objectives May be difficult to clearly define criteria Analysis is complex and time-consuming
1.2.4.2 Resource requirements Product analysis requires minimal resources, although training and experience in content analysis is helpful. The collection, analysis, and assessment of products require a medium to high time commitment. 1.2.4.3 Plan your product analysis STEP 1. Describe the context Include the age, majors, educational background, motivation level, and skill levels of students. Also consider central goals of the course, your ability to implement changes,
and how the instructional setting impacts your course. A worksheet is available to help you document your instructional context. STEP 2. Identify stakeholder needs and develop central questions Identify what is most essential for students, your needs, and any organizational priorities that impact your course. Central questions, informed by these needs, specify what you want to learn from an assessment. For example, "Are students effectively using online technology in my course?" A worksheet is available to help you identify stakeholder needs and develop central questions. STEP 3. Determine the purpose of the product analysis Establish clear, focused goals that specify which areas of learning or instruction you will evaluate and which products you will examine. The analysis should include questions about the instructional purpose of the products, how you and students are using them, and how they are contributing to learning. For formative evaluation, product analysis helps you assess students' learning and address misunderstandings, ambiguities, or deficiencies. For summative evaluation, product analysis helps you assess the quality of instruction or learning after the course is over. A worksheet is available to help you develop and refine your studys purposes. STEP 4. Determine how you will use results How you intend to use results should also guide the focus of your product analysis. If analyzing a particular product will not guide course or program content or instruction, choose a different product or consider another assessment method. A worksheet is available to help exemplify how to use results after determining the purpose of a study. STEP 5. Develop product analysis criteria To decrease bias, establish clear criteria before you analyze products and define ratings such as "excellent," "meets criteria," and "needs improvement." If some criteria are
valued more than others, specify their relative importance or weight. Refer to the teaching assessment planning process for additional help in developing your criteria
Review of literature: Debevoise and et al (1989) had studied that the urgent need for developing countries to reform national telecommunications policies is addressed. Some promising options for telecommunications policy and structure, particularly regarding strategies to mobilize new sources of entrepreneurship and funds for infrastructure development, are examined. These are tentative propositions drawn from the author's experience in several major developing countries that are presently undergoing rapid reforms. The options considered include new financing and management structures, the encouragement of competition, and the creation of an independent policy-making and regulatory function Chwee-huat (1992) had studied that the Singapore Public Sector Divestment Committee has recommended privatization of public enterprises, including profit-making monopolies such as Telecom, airport, port authority and broadcasting. Reviews preparation to privatize Singapore Telecom. Examines Telecom's diversification strategy to enhance its visibility and international competitiveness. By maintaining its impressive profitability record, Telecom can be assured of a favourable reception by domestic and foreign investors when its shares are floated in 1993. Being the first statutory board to be privatized, its transformation is closely observed by others in the pipeline. Jain (1994) had studied that ThaiChurn management is a perennial issue in the telecom industry of Pakistan. The two telecommunication service providers selected for this study are Telenor and Ufone. The aim of the research is to provide an insight into the rapidly emerging issue of churn in the telecom sector of Pakistan, describe the relevant aspects of churn management strategies and gauge their effectiveness in customer retention. Purposive sampling has been adopted such that 100 subscribers, with 50, each of Ufone and Telenor, constitute the sample. The sample profile comprises of 100 male post-paid
subscribers, of age range 3045 years, employed in the middle management level of the corporate sector and users of either Telenor or Ufone. The survey method has been adopted, and a comparison has been drawn between the churn rates of the two service providers through the application of T-test. Analysis reveals that subscribers' dissatisfaction with any dimension of price, voice quality and network coverage are the main reasons for customer churn at both Ufone and Telenor. Ufone has, however, adopted comparatively better churn management strategies than Telenor to retain its customers. Bank and et al (1996) had studied that the extent and pace of change throughout British industry has been increasingly dramatically, resulting in major job losses, and the remaining employees or survivors of such change often experience the effects as deeply as those who are made redundant. Notes that, although many organizations invest time and resource in exiting people, they do little to help those who stay, and yet the successful transformation of organizations relies heavily on managing these people through the transitions. Examines data from a case study of British Telecom and survey data from the financial services sector. Illustrates, from the combination of case and survey data, the impact of such organizational change on the survivors. Indicates that few organizations appear to provide structured help at the appropriate level and intensity. Suggests that organizations will have to do more for their survivors to establish a new psychological contract. Kumar (1998) had studied that a framework for achieving a sustainable corporate growth strategy for the Indian telecom sector. One sector in India where there is huge potential for sustainable growth is the telecom sector. Generally a monopoly, the sector is technologically intensive and is characterized by decreasing costs of operation with increasing scale and scope economies. Strategies for sustainable growth should be rooted on sensible strategic analysis based on the firms' distinctive capabilities and competencies. Based on this analysis, the appropriate implementation sequence has to be identified. The success and failure of the sequence of initiatives should provide valuable learning which acts as the most important ingredient in the organisational building
activities. This learning is also essential in pointing out the errors made in strategic analysis as well as identification of core capabilities. Rameshan (1999) had studied that analysis of the study has been done in the background of the telecom and other reforms initiated in India since 1991.The study attempts to evaluate the financial and operational performance of three public sector telecom companies TCIL, MTNL and VSN, during the reform period up to 1997-98.The evaluation is based on certain selected parameters. The basic objective is to see how far the reforms have affected their performance favorably or unfavorably .It appears from the analysis that the various performance parameters of these companies have been affected in both ways and these companies have not exhibited any consistency in their performance after 1990-1991.The implication of this may be as follows. The operations of these companies may already be getting affected or marginal. In the coming days when competition in the telecom sector becomes a real and intensive ,it may be essential for them to improve their service quality, cost-effectiveness and customer responsiveness. Henten and et al (2003) had studied that the multiple rationales for telecom, IT, media convergence regulation, on the one hand, and multisector utility regulation, on the other, and the practical questions of implementation they pose, with a view to contributing to informed policy and regulatory decisions. Both options involve substantive as well as procedural issues, not necessarily separable. The conditions that may affect the creation of convergence and multi-sector regulation, ranging from underlying commonality of inputs and the behaviour of regulated firms to considerations that are specific to the regulatory process such as scarcity of regulatory resources and safeguards for regulatory independence, are examined. It is concluded that ICT and media convergence issues are primarily about improving the efficiency of market economies, and how changes in regulation can facilitate this process. Multi-sector regulation issues are primarily about establishing the efficiency and effectiveness of regulation, so it can be a catalyst for network and economic development. They arise from an initial diagnosis of different problems, and represent different priorities and pathways to achieving a very similar set of development objectives.
Jamali (2003) had studied that traditionally, telecommunications was one of the economic sectors with the highest level of state ownership and activity. However, overwhelming pressures for change in this field have rendered old institutional arrangements and practices increasingly obsolete. As such, various countries have opted for a mix of policies including institutional restructuring, liberalization, and privatization. In Lebanon, since the end of the civil war in 1990, the government has been trying to restructure and modernize its telecommunications sector. The goal of the government was not simply to fix what was damaged by the war but rather to restructure and reform the telecommunications landscape, allowing the country to leapfrog into the twenty-first century and the information age. This paper assesses the Lebanese post-war experience with telecom reform. An overview of global trends in telecom reform is first presented. The performance of the Lebanese telecom sector is then examined and the main reform constraints identified. A comparative assessment against international benchmarks is also conducted. Finally, conclusions and recommendations for improving this sectors performance are outlined. Umar and Tahir (2005) had studied that it has provided extensive information about how this boom occurred gradually in Pakistan, present circumstances and situations of the sector and future prospects of this segment in Pakistan. It has also provided information about how Government institutes and policies are playing their role for the growth of the telecom sector in Pakistan? We have revealed the new businesses that are now running in Pakistan due to the rapid growth of Telecom sector. We have also presented the impacts of telecom boom on the existing businesses and how these businesses are being benefited due to easy access of telecom services to a common person. Then we presented the analysis of our questionnaire that how this boom of telecom sector has changed and affected the Pakistani culture. We have analysed that it is of worth importance to understand these cultural values and social set ups before entering to a new market. Fernando (2006) had studied that the role of the telecommunications regulator in Sri Lanka and assesses the effectiveness of its interventions in attracting foreign direct
investment (FDI) into the telecommunications sector from a management point of view. The study finds that despite Sri Lanka has responded to globalization by liberalizing the telecommunications sector and timely establishing a regulator to monitor the industry, the interventions of the Telecommunications Regulatory Commission (TRC) have been only partially successful particularly in terms of meeting its full potential of FDI into the sector. Interventions of TRC have been reviewed in terms of creating environment for market entry and competition, management of scarce resources, tariff regulation and independence of the regulator, and revealed its inability to create sustainable investment climate for private investors. In conclusion, we argue that it is time to investigate whether the current regulatory model is the most appropriate arrangement for the prevailing economic, social and cultural circumstances in Sri Lanka. Jabeen and Jahanzeb (2007) studied that Churn management is a perennial issue in the telecom industry of Pakistan. The two telecommunication service providers selected for this study are Telenor and Ufone. The aim of the research is to provide an insight into the rapidly emerging issue of churn in the telecom sector of Pakistan, describe the relevant aspects of churn management strategies and gauge their effectiveness in customer retention. Purposive sampling has been adopted such that 100 subscribers, with 50, each of Ufone and Telenor, constitute the sample. The sample profile comprises of 100 male post-paid subscribers, of age range 3045 years, employed in the middle management level of the corporate sector and users of either Telenor or Ufone. The survey method has been adopted, and a comparison has been drawn between the churn rates of the two service providers through the application of T-test. Analysis reveals that subscribers' dissatisfaction with any dimension of price, voice quality and network coverage are the main reasons for customer churn at both Ufone and Telenor. Ufone has, however, adopted comparatively better churn management strategies than Telenor to retain its customers.
CHAPTER4 RESEARCH
METHODOLOG Y
Research
Research is a common parlance which refers to search for knowledge. It is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedures, and technical rather philosophical means for getting and ordering the data prior to their logical analysis and manipulating different type of research designs is available depending upon the nature of research project, availability of manpower and circumstances. According to D. Slesinger and M. Stephenson research may be defined as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in the construction of theory or in the practice of an art. Thus it is original contribution to the existing stock of knowledge of making for its advancement. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research.
1.
RESEARCH DESIGN
Research Design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy on procedure. The Research problem having been formulated in clear-cut term helps the researcher to prepare a research design. The preparation of such a design facilitates in conducting it an efficient manner as possible. it is a blue Print for the fulfillment of objectives and answering questions. This research was descriptive. A) Descriptive research: As the project is product Analysis of Telecom sector in which data is collected for Analysis, the research is Descriptive Research.
4.2 Information Collection: In this survey secondary data has been used for information collection: Secondary Data: Secondary Data are those which have already been collected by someone else and which have already have been passed through the statistical process. In this research project secondary source used were various books, website of the company, journals, magazines, web sites company Records
CHAPTER 5
IN-HOUSE OF COMPETITORS DATA
COLLECTION
Table 5.1: Cellone (BSNL) Post paid Plans: PARTICULARS PLAN PLAN PLAN PLAN PLAN PLAN PLAN 100 Intial one Time Payment (Rs.) Registration Amount Activation Charges Security Deposit for local 500 100 500 500 100 500 1000 500 100 500 1000 500 100 500 1000 500 100 500 1000 500 100 500 1000 500 100 500 1000 225 299 325 525 725 550
Security Deposit for local+ 1000 STD Security Deposit for 2000
2000
2000
2000
2000
2000
2000
Local+STD +ISD Security Deposit for Local + 5000 STD + ISD+ International 5000 5000 5000 5000 5000 5000
Roaming Fixed Monthly Charges in 100 Rs. Free Monthly Charges in Rs. 0.00 60 60 0.00 60 125 15 300 15 0.00 60 0.00 60 225 299 325 525 725 550
Pulse Rate (for STD/Local 60 calls) Local calls (Rs/min) To GSM(own network) To GSM(Other network) To Fixed 1 1
/WLL(Own 1
Network) To Fixed /WLL (Other 1 0.90 0.60 0.80 0.80 0.40 0.60
netwok) STD Calls To GSM(own Network) To GSM(Other network) To Fixed 1.20 1.00 1.20 1.20 1.20 1.00 1.00 1.00 1.00 1.20 1.00 1.00 1.00 1.00 0.40 1.00 0.40 1.00 1.00 1.00
/WLL(Own 1.20
Network) To Fixed /WLL (Other 1.00 1.20 1.00 1.20 1.00 1.00 1.00
network)
ISD Calls(Rs./min) USA,CANADA,UK, SRILANKA Europe,Singapore,Malaysia, Indonesia,Hongkong, Kuwait,Brahrain,UAE,Oma n and Qatar Rest of World 12.00 SMS charges Local 0.50 National 1.00 International 5.00 National Roaming Charges(Rs./min) Outgoing Callswithin 1.00 Visited LSA Outgoing Calls visited LSA Incoming Calls Charges 1.00 1.00 1.00 1.00 1.00 0.65 1.00 beyond 1.50 12.00 0.40 0.80 5.00 1.00 1.50 12.00 0.40 0.80 5.00 1.00 1.50 12.00 0.40 0.80 5.00 1.00 1.50 12.00 0.40 0.80 5.00 1.00 1.50 10.00 0.00 0.40 5.00 1.00 1.50 12.00 0.40 0.80 5.00 1.00 1.00 9.60 9.60 9.60 9.60 9.60 8.00 9.60 7.20 7.20 7.20 7.20 7.20 6.00 7.20
It Shows all the Cellone post paid plans available in Jammu and Kashmir circle. This shows all the details of each plan i.e. call rates, Rentals, security deposits etc. Another scheme that cellone is providing is that the call charges of one Cellone local number and BSNL fixed line local number is 20 paise/minute. The number is chosen by the user.
GPRS Services Particulars Option-I Activation Charges Nil Monthly Rental in Rs. 49 Free Usage 5 MB Volume based usage charges beyond free Re 0.01
usage per KB N.A KB Volume based usage Re 0.02 Re 0.02 Re 0.02 per charges on Roaming MMS Services Calling Party Downloader to Pay per KB per KB KB
The Table above shows the GPRS plans available in all Cellone Postpaid Plans with different Tariffs. It also shows the MMS service plan.
Particulars Intial SIM Charges Free Talk Value Call Charges a) Local Calls(Rs./Min) Pulse Rate(Second) Own Network Other i) To GSM Network Own Network Other ii) To fixed / WLL b) STD Calls(Rs./Min) Network Own Network Other
One India
1.20
To GSM/Fixed/WLL Network 1.50 c) International Calls(Rs./min) USA,CANADA,UK, SRILANKA 7.20 Europe, Singapore, Malaysia, Indonesia, Hongkong, Kuwait, Bahrain, UAE, Oman, and Qatar Rest of world SMS Charges Local National International GPRS Service Activation Charges Volume based usage charges per KB in Rs. 9.60 12.00 0.80 1.20 5.00 0.00 0.02
The above table shows the initial price of the SIM and Traiff of the prepaid Connection with GPRS facility. Table 5.4: BSNL Recharges
Recharge (in Rs.) 50 100 150 200 300 500 One India Recharge 799
The table above shows the Recharge with validity. The recharges equal to 300 and above are given more talk value(Except One India Recharge)
Table 5.5: BSNL (Excel) Top-ups Top-up (in Rs.) 10 20 50 100 200 500 Talk Value (in Rs.) 8 16 50 100 200 500
In the above tables these are the Top-ups which are without validity. The Top-ups equal to 50 and more are given full talk value.
Table 5.6.1: AIRTEL Post Paid Plans: Plan Super Benefit Plan 140 New India New Home Plan 299 India Roam Plan 399 Activation Charges Nil 750 Security Deposit Monthly Rental Rentals CLIP Rental Total Rental Call Charges Local (Rs.) Day Night (10p.m6am)/ Sunday Airtel to Airtel 0.80 p/min 1/ 2 min 1/ 2 min 0.60 p/mi n 0.30 p/min 90 50 140 299 0 299 399 0 399 399 0 399 Nil 750 Nil 750 Nil 750 Airtel Night Plan
1/min
0.60 p/mi n
0.30 p/min
Airtel to Landline
1/min
1/min
1/min
1/mi n
0.50 p/min
STD(Rs.) Airtel to Airtel 1.5 /min 1/min 1/2 min Airtel to GSM 1.5 /min 1/min 1/min 1.5 / 1.20/min min 1.5 / 1.20/min min Airtel to WLL/LL 1.5 /min 1/min 1/min 1.5 / 1.20/min min ISD(Rs.) Band1(USA,Canada,Europe (Fixed Line),Australia,Singapore,Hongk ong,Thailand,Malaysia,Indonesia, New Zealand) Band2(Gulf,Europe(Mb.)SAARC Countries,Africa and Rest of the world) 9.2/min 9.2/min 9.2/mi n 9.2/mi n 9.2/min 6.4/min 6.4/min 6.4/mi n 6.4/mi n 6.4/min
ROW(Cuba,Soa
Tome
and 40/min
40/min
Principe,GuineaBissau,Diego Garcia,Nauru,Solomon Island,Vanualu,Cook Island,Tuvalu,Tokelau,Norfolk Island,Sakhalin SMS(Rs./SMS) Local STD ISD Roaming(Rs./Min) Incoming Local Outgoing STD 1/min 1/min 1.5 /min 1/min 1/min 1.5 /min 1/min 1/min 1.5 /min 1/min 1/min 1.5 /min 1/min 1/min 1.5 /min 1 1.5 5 1 1 5 1 1 5 0.3 1.5 5 FREE 1 5
In ISD In roaming tariffs GSM operator you roaming tariffs of GSM operator you
choose to operat
roam with
Table 5.6.2: AIRTEL post paid plans: Plan Airtel Call New @1 Plan Airtel y Plan Activation Charges Nil 750 Security Deposit Monthly Rental Rentals CLIP Rental Total Rental 599 0 599 995 0 995 2499 0 2499 3999 0 3999 Nil 750 Aitel National Plan Nil 1500 Nil 1500 Airtel Global Advantage Plan
Communit Calling
Call Charges Local (Rs.) Airtel to Airtel Airtel to Other Mobile Airtel to Landline STD(Rs.) Airtel to Airtel Airtel to GSM Airtel to WLL/LL ISD(Rs.) Band1(USA,Canada,Europe (Fixed Line),Australia,Singapore,Hongk ong,Thailand,Malaysia,Indonesia, New Zealand) Band2(Gulf,Europe(Mb.)SAARC Countries,Africa and Rest of the world) ROW(Cuba,Soa Tome and 40/min 40/min 40/min 40/min 9.2/min 9.2/min 9.2/min 9.2/min 6.4/min 6.4/min 6.4/min 100 min free then @6.4/min 1/min 1/min 1/min 0.00/min 2 1.00/min 1.00/min 0.00/min 4 0.00/min 4 0.00/min 4 0.00/min 8 0.00/min 8 0.00/min 8 1/min 1/min 1/min 0.00/min 1 1.00/min 1.00/min 0.00/min 3 0.00/min 3 0.00/min 3 0.00/min 7 0.00/min 7 0.00/min 7
Island,Sakhalin
1 5
1 5
0.00 6 5
0.00 10 5
100 free
STD
1/min
1.00/min
ISD
In of GSM
roaming of
tariffs
1 2
4000 mins free local Airtel to Airtel then @ Re1.00/min 1000 min Free STD Airtel to Airtel Mobile then @ Re.1.00/min 3 4000 mins free local then @ Re. 1.00/min 4 2000 mins Free STD then @ Re.100/min 5 500 mins free Roaming (Incoming +outgoing) then @Re 1.00/min 6 5000sms(Local +National) free then @Re.1 /min 7 4000 mins free locall then @Re.1.00/min 8 2000 mins free STD then @Re 1.00/min 9 500 mins freeRoaming(Incoming+Outgoing) then @ Re.1.00/min 10 5000 sms (Local + National) free then @Re 1/sms The Above tables 5.6.1 and 5.6.2 shows the post paid Plans of Airtel. There are various plans for different type of users according to their requirements like Airtel Global Advantage plan which is used by those who frequently go foreign countries. Table 5.7 : Airtel Prepaid Details Dugna fyda SIM Pulse Rate Price of Pack Free Airtime on Pack Incoming Calls 60 150 20 FREE Other GSM/CD MA Airtel 99 Local Rates STD Rates SMS(Rs.) Local National International ISD Band1(USA,Canada,Europe(Fixed Line),Australia,Singapore,Hongkong, Paise/min 1.50/min 1.00 1.5 5.00 6.4/min Digit) 99 Paise/min 1.50/min (10 Landline/W LL 99 Paise/min 1.50/min
Thailand,Malaysia,Indonesia, New Zealand) Band2(Gulf,Europe(Mb.)SAARC Countries, Africa and Rest of the world) ROW(Cuba,Soa Tome and Principe,GuineaBissau, Diego Garcia,Nauru,Solomon Island, Vanualu,Cook Island,Tuvalu, Tokelau,Norfolk Island,Sakhalin 40/min 9.2/min
The above Table shows the price of intial SIM and Traiff to the customer on purchasing the prepaid connection. Table 5.8: Airtel Recharges Recharge Rs.) 500 300 200 599 786 899 (in Talk value 500 250 50 599 786 599 Validity 2 Months 1 Month 1 Month 3 Months 3 Months 1 Month
Table 5.9: Airtel Top-up Scheme Talk Top-up (inRs.) 375 Rs.) 375 Value(in
The above table shows the available Airtel Top-ups without validity in the Market. It only contains the Talk value.
Table 5.10: Airtel Value Vouchers Talk value Recharge (Rs.) Offer Airtel 20FREE Validity to Airtel 7 days
Local 20Calls,SMS 65 47
Airtel Local
to
Airtel 50 25 14 days to
Paise
other local 50 paise 1 Month All Local Calls 50 Paise 1 Month All Local Mobile Calls 50 Paise Local Airtel Airtel 50 paise 1 Month to 1 Month
9 21 55 35
SMS PACK 0 21 local SMS 0 100 local SMS 0 555 local SMS STD PACK 0 STD @ Re1/min
The above table shows the value vouchers in which Special schemes are there.There are different schemes like Reduced STD call Rates, Free sms , Reduced Local call rates. Table 5.11: Airtel Non-stop 299 Pulse Rate Price of Pack Free Airtime on Pack Incoming Calls 60 299 10 Free Other GSM/CD MA Local Rates STD Rates SMS(Rs.) Local National Airtel 1/min 1.5/min 1.00 1.5 (10 Landline/W LL 1/min 1.5/min Digit) 1/min 1.5/min
International ISD Band1(USA,Canada,Europe (Fixed Line),Australia,Singapore, Hongkong,Thailand,Malaysia, Indonesia,New Zealand) Band2(Gulf,Europe(Mb.) SAARC Countries,Africa and Rest of the world) ROW(Cuba,Soa Tome and Principe,GuineaBissau, Diego Island, Vanualu,Cook Island,Tuvalu,Tokelau, Norfolk Island,Sakhalin Garcia,Nauru,Solomon
5.00
6.4/min
9.2/min
40/min
Customer will get an initial validity of 3 months and talktime worth Rs10/ and before 72 hours of validity expiry auto deletion of Re1 will be done for 1 month validity and the same will be followed every month. Non stop 299 Recharge shall be offered till 15th November,2008. The Benefit of one month validity by auto deduction of Re.1 shall not be extended to the customer beyond 22nd january,2009
BSNL sells the SIM to the Distributor at Rs.110 and further the Distributor sells the SIM to Retailer at Rs.140 and sells to the customer at Rs.200. BSNL gives the commission of 5 percent to the Distributor in which the distributor retains 2 percent and gives 3 percent to the retailer.
CHAPTER 6 FINDINGS
6. Findings of the Report: 6.1 There are Value Vouchers in Airtel Prepaid which makes the plan cheaper according to customer requirement and value vouchers are not present in BSNL prepaid. 6.2 The commission of each recharge given to the Distributor given by BSNL is more than Airtel. 6.3 There are schemes in Airtel for users whose usage of National and International Roaming is more. 6.4 There are plans like 299 in Airtel which gives validity of 1 Month by deducting only one rupee from the account and is activated by recharging the account by Rs.299, the scheme till 22 January. 6.5 The Initial BSNL Prepaid SIM have more benefits than Airtel SIM to the Distributor. 6.6 The recharge scheme of BSNL is more beneficial to the customers as Compared Airtel. 6.7 The Commission given in BSNL on Initial SIM is more than Airtel.
6.8 Top-up scheme of BSNL is better than Airtel because they give full talk value of topups equal to Rs.50 and above and Airtel gives full talk value above Rs.100.
CHAPTER 7
CONCLUSION
AND RECOMMENDATIONS
7.1 Conclusion: Product analysis is the systematic examination of instructional products, such as student created objects, portfolios, assignments, or writings, to assess the effectiveness of the course or instruction. Responses to exam or quiz items may also be considered a type of instructional product. Use product analysis to gain insight, assess changes in instructional practice, or measure the effects of instruction. A framework for achieving a sustainable corporate growth strategy for the Indian telecom sector. One sector in India where there is huge potential for sustainable growth is the telecom sector. Generally a monopoly, the sector is technologically intensive and is characterized by decreasing costs of operation with increasing scale and scope economies. Strategies for sustainable growth should be rooted on sensible strategic analysis based on the firms' distinctive capabilities and competencies. Based on this analysis, the appropriate implementation sequence has to be identified. The success and failure of the sequence of initiatives should provide valuable learning which acts as the most important ingredient in the organizational building
activities. This learning is also essential in pointing out the errors made in strategic analysis as well as identification of core capabilities. the research is to do the product analysis of products of Telecommunication Operators (BSNL, AIRTEL) to get the knowledge about the present services and products offered by the competitors in the Market of Jammu and Kashmir state. Product Analysis is also needed in order to know about the plans introduced by the competitors in the state. Product Analysis is done to know what benefits the competitors are offering to the customers and the intermediaries
7.2 Recommendations: Aircel should introduce plans which are competent enough after studying the competitors plans. Aircel should give more attractive value vouchers after studying the Airtel value vouchers. Aircel should give more benefits to the Distributors Aircel should give the Initial SIM with attractive price and offers.
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