“Assessme nt Of Distributio n Network For IDEA In Ahmedaba d” [ INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH Ahmedabad]] Neeraj Gupta 2 A Project Report On INDIAN TELECOM INDUSTRY WITH REFRENCE TO IDEA Submitted as partial fulfillment of the curriculum of Masters of Business Administration TO Institute of Business Management and Research Ahmedabad Developed By NEERAJ GUPTA Internal Guide VISHAL DAHIYA 3 COVER PAGE INDIAN TELECOM INDUSTRY WITH REFRENCE TO IDEA By NEERAJ GUPTA A project report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration of Sikkim Manipal University,INDIA Sikkim-Manipal university of Health, Medical and technological sciences Distance education wing Syndicate house Manipal- 576 104 4 DECLARATION I here by declare that the project report entitled Perception about “INDIAN TELECOM INDUSTRY WITH REFRENCE TO IDEA”Submitted in partial fulfillment of the requirements for the degree of Masters business Administration to Sikkim-Manipal University , India, is our original work and not submitted for the award of any degree, diploma, fellowship,or any other similar title or prizes. Place : Ahmedabad NEERAJ GUPTA Date : 31 -03- 2009 ( 520783248) 5 University study centre certificate This is to certify that the project entitled Perception about “INDIAN TELECOM INDUSTRY WITH REFRENCE TO IDEA” Submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration of Sikkim- Manipal University of Health, Medical and technological sciences. NEERAJ GUPTA Has worked under my supervision and guidance and that no part of their report has been submitted for the award of any other degree, Diploma, Fellowship or other similar titles or prizes and that the work has not been published in any journal or magazine. Certified VISHAL DAHIYA 6 Examiner’s Certification The project report of INDIAN TELECOM INDUSTRY WITH REFRENCE TO IDEA By NEERAJ GUPTA Is approved and is acceptable in quality and form. Internal Examiner VISHAL DAHIYA 7 ACKNOWLEDGEMENT First of all we would like to extend our sincere feelings towards this institute who has given us the opportunity to explore ourselves to impart our knowledge and skills in this report. We are highly grateful to our project guide VISHAL DAHIYA for his kind approach, continuous guidance and support during the entire period to make this project a success. Last but not least we would like to express our thanks those who are directly or indirectly responsible for making this project a great success . 8 Index Sr. No. Particulars Page No. 1 INTRODUCTION 4 2 INDUSTRY PROFILE 5 • Over View • Indian telecom industry at a glance • Major players 3 COMPANY PROFILE Products of Idea 25 Five force model 4 RESERCH DESIGN 43 5 Data Analysis & Interpretation 46 6 LIMITATIONS & SCOPE 86 7 Findings 87 8 Recommendation 88 9 Questionnaire 90 10 Bibliography 98 11 Glossary 99 INTRODUCTION 9 The topic of the project is the Assessment of distribution network for Idea in Ahmedabad. In such project actually we try to analyze the strength of the idea cellular with other competitors in the market. The objective of this project was to assess market share, to analyze effectiveness of idea’s representative, to study and analyze the reach of Idea’s distribution network vis-à-vis other competitor. For such the survey of 100 retailers had been made and with filling up of the questionnaires, try to analyze the distribution effectiveness and the distribution reach and its depth in the Ahmedabad. With the use of different types of the charts and the statistical tool, we try to analyze the facts of the Ahmedabad for all companies. An assessment of the Distribution Network of idea’s services will help the company in knowing the strength and weaknesses of the distribution network in Ahmedabad vis-à-vis competitor. After the project, we are able to give suggestions to the company on the basis of field survey and its result. INDUSTRY PROFILE 10 Telecommunications is the one of the fastest growing service industries of the word. While the accent of growth on the value added services, such as email, cellular phones etc in the developed countries, the thrust is on improving basic role in spurring growth, especially industrial and services, in any economy. The last two decades has witnessed a restructuring of the entire sector across the globs, in terms of privatization and competition. Opening up of economies and privatization in the developing countries has triggered an influx of foreign capital and technology into the telecom sector. HISTORY OF WIRELESS… The cell phone is one of the most significant technological advances of the 20 th century; however, the neat little gadget is not the first to communicate without wire. Smoke signals and tribal drums were used 11 to communicate over short distances without wires. Later, although there was a form of mobile telephone service available in the late 1940s, its capacity was limited to 12 simultaneous callers. WORKING OF WIRELESS… Cell phones use low- energy FM radio waves to transmit voice to the nearest antenna site connected with the local phone network. The call goes through either a regular phone line, or by radio signal to another cell phone, depending on the service. Wireless technology uses individual radio frequencies over & over by dividing service areas into different geographic zones called “cells”. Each has its own radio transmitter and receiver antenna linked to Mobile Telephone Switching Offices (MTSOs). As the caller moves from one place to the next, the call is handed off by the MTSO to the next cell site, providing a consistent, high quality signal. When a subscriber travels of a service area, “roaming” on the systems of other wireless carriers can still make calls. These carriers take up the call signal and allow calls to be made or received within their coverage area. 12 DEFINING CELLULER SERVICES: Cellular Service is a service, which enables two-way, mobile, wireless communication via a portable handset. Area covered by the service provider is divided into cells, each with a Radio Base Station (RBS) connected to a Central Switching Center (CSC) which monitors the entire system. In the midst of a call, if a subscriber moves across cells, CSC ensures handing over of the call between the adjacent RBS and the call is uninterrupted. Cellular Technology: The technology that gives a person the power to communicate anytime, anywhere – has spawned an entire industry in mobile growth, success and efficiency of any business/ economy. The most prevalent wireless technology in the world today, is GSM. The GSM association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communication. The Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European Standard, the Group Special Mobile as it was then called, soon came to represent Global System for mobile communications as it achieved the status of a worldwide standard. The GSM membership has grown exponentially since 1992. 13 14 • Overview – The Indian Telecommunication Industry- Past, Present & The Future… 15 The journey so far… 1994 was a watershed year in the history of the Indian telecom sector, which ranked sixth in the world after USA, China, Japan, Germany, and France in terms of number of installed fixed lines. The government of India introduced the New Telecom Policy (NPT) that year that envisaged a vast change in Indian Telecom Scenario and reflected the Government’s desire to bring the Indian telecom at par with the rest of the world. It was followed up by the introduction of NTP 1999. The various policy changes also reflected the Government’s realization that the huge funds needed to undertake gigantic and extensive upgrade of telecom infrastructure in all the three segments of wire line, wireless and data services, would require active participation of private sector. As soon as the telecom industry opened to private sector investment beginning 1994, a large number of Indian companies entered the segment with varying force, different strategies, and assorted aspirations. There were ten key strategic dimensions along which these new entrants positioned themselves in this sector. How we stand today… The Indian telecommunication network with 69 million telephone connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. With tele-density approaching 6.9 per hundred, the target to achieve 15 per hundred by 2010 looks well within reach. India's total mobile subscriber base (both cellular and wireless in local loop-mobile) has reached 27 million. About 85% of the villages have village public telephones (VPTs)- 5,16,887 VPTs exist in India. The remaining 15% that includes 88,970 villages are yet to be covered. Accordingly, India's 10th Five- year plan 2002-07 projects £25 billion worth of 16 investments in 50 million fixed lines, 30 million cellular lines and 20 million Internet connections. The factors behind the wireless revolution in India are no different from those prevailing globally and can be listed as follows: 1. Industry deregulation & liberalization has ushered in increased competition & led to growth The Indian telecom industry has come of ages in the field of regulations. It started with the NTP in 1994. Between the years 1994 & 1998 TRAI was established as an independent regulatory body, the wireless licenses were allotted to private operators and the wire line services were opened up to competition. Between 1999 & 2002 new telecom policy was introduced and there was entry of third & fourth operators in the wireless services.