Professional Documents
Culture Documents
India with a strong population of over 1.1 Billion, it has become one of the most dynamic and promising telecom markets of the world. In recent times, the country has emerged as one of the fastest growing telecom markets in the world. India's telecom Industry has shown massive upsurge in the recent years in all respects of industrial growth. During 2003-2007, the country witnessed the number of phones increasing more than triple and total teledensity rising from 5.1% to 18.2%. From the status of state monopoly with very limited growth, it has grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the people of India. This changing phase was possible with the economic development that followed the process of structuring the economy in the capitalistic pattern. Removal of restrictions on foreign capital investment and industrial de-licensing resulted in fast growth of this sector. Till 2000, though cellular phone companies were present, fixed landlines were popular in most parts of the country. With government of India setting up the Telecom Regulatory Authority of India, and measures to allow new players country, the featured products in the segment came in to prominence. Today the industry offers services such as fixed landlines, WLL, GSM mobiles, CDMA and IP services to customers. Increasing competition among players allowed the prices drastically down by making the mobile facility accessible to the urban middle class population, and to a great extends in the rural areas. Even for small shopkeepers and factory workers a phone connection is not an unreachable luxury. Major players in the sector are BSNL, MTNL, Bharti Teleservices, Vodafone-Essar, BPL, Tata, Idea Cellular, etc. Today, The Indian telecom sector has repeatedly has throwing up strong numbers over the past few years. This has been the outcome of reduction in
tariffs, availability of cheaper handsets, micro prepaid cards, the overall growth in the economy, and favorable demographics amongst others generally affirmative factors. While more sector-specific measures like a well crafted telecom policy and its timely execution has catapulted the telecom story on a high growth trajectory. We have been witness to how mobile phones, from being luxuries during the initial years of their launch, have changed to being a necessity in the urban and semi urban areas. As a consequence, Indian telecom companies have been rapidly growing in size and expanding their reach. During this turbo-changed growth, we still have a long way to go in terms of increasing coverage and teledensity. Owing to sheer size, growth potential and high growth of Indian telecom market, sector has been attracting and continues to attract the attention of not just the Indian conglomerates but also foreign players as is evident from number of bidders that have lined up to pick up a stake in the on going Hutch-Essar sale. The sector is expected to continue to be a star performer owing to the congenial environment within which it thrives. The targets as set out by the Department of Telecommunications (DOT) for total number of subscribers also seem well within the reach at the moment with the Indian Cellular Mobile Services Providers (CMSPs) adding about 6m subscribers each month. The Indian Telecommunications network crossed 261 million mark In March 2008 and it is now 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 U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by large numbers 400 million in 2009. The wireless subscriber base has jumped from 33.69 million in 2004 to 261 million in FY2008. Consequently, wireless now accounts for 60% of the total telephone subscriber base, as compared to only 40% in 2003. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are
primarily 9 GSM* and 5 CDMA* operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. Expectedly there will be a market shift in the composition of the subscriber base with rural telephony market expected to contribute to the growth than the urban market. Owing to the lower teledensity, the net add's in the rural markets is expected to out number those of the urban areas going forward.
MAJOR PLAYERS
There are three types of players in telecom services: - State owned companies (BSNL and MTNL) - Private Indian owned companies (Reliance Infocomm, Tata Teleservices) - Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Idea Cellular, BPL Mobile, Spice Communications)
BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now Indias largest public sector undertaking. It has 20.1 Million GSM Capacity and 35.1 million Basic Phone subscribers. BSNL cellular service, Cell-One, has more than 17.8 million cellular customers, garnering 24 percent of all mobile users as its subscribers.. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base.
BHARTI AIRTEL
Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the
country with its products and services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.
MTNL
MTNL was set up on 1st April, 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of Indias key metros Delhi, the political capital and Mumbai, the business capital of India. In the past 20 years, the company has taken rapid strides to emerge as Indias leading and one of Asias largest telecom operating companies. Besides having a strong financial base, MTNL has achieved a customer base of 5.92 million as on 31st March 2006.The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digitalmode.The Govt. of India currently holds 56.25% stake in the company.
RELIANCE INFOCOMM
Reliance Infocomm is the outcome of the late Dhirubhai Ambani's (19322002) dream to herald a digital revolution in India by bringing affordable means of information and communication to the doorsteps of India's vast population. Dhirubhai Ambani charted out the mission for Reliance Infocomm in late 1999. it resulted in Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, that is a part of Reliance Communications Ventures (RCoVL) and is one of India's largest providers of integrated communications services. The company is using CDMA technology and has more than 20 million customers and serves individual consumers, enterprises, and carriers, providing wireless, wireline, long distance, voice, data, and internet communications services through a number of operating
subsidiaries. The company sells communications and digital entertainment products and services through its chain of Reliance WebWorld retail outlets. The also. company's Reliance Infocomm subsidiary provides wireless communications services throughout India. It has started using GSM technology
TATA TELESERVICES
Tata Teleservices is a part of the USD $29 billionTata Group, which has 93 companies. Tata Teleservices provides basic (fixed line services), using CDMA technology in 20 circles. It has over 24 million subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as well. The company is also expanding its footprint. The company, which heralded convergence technologies in the Indian telecom sector, is today the market leader in the CDMA telephony market with a total customer base of over 3.8 million. Tata Teleservices bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other services 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.
VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, 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. The company provides international and Internet services as well as a host of value-added services. Its revenues have declined from Rs. 70.89 billion ($1.62
billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic long distance services and is launching broadband services. For this, the company is investing in Tata Telservices and is likely to acquire Tata Broadband.
VODAFONE
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 Hutchs presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995. Between 2000 and March 2004, Hutch acquired further operator equity interests or operating licences. With the completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now operates in mobile services in 16 of the 23 defined license areas across the country. it had over 44.1 million customers.
IDEA CELLULAR
Idea Cellular is a wireless telephony company operating in various states in India. It initially started in 1995 as a join venture between the Tata, Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh, UP West, Rajasthan and Tata Cellular as well as Birla AT&T CommunicationsThe company is controlled by Indian industrial manufacturing conglomerate Aditya Birla Group. Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player. initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,
Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and Delhi (inclusive of NCR).IDEA operates now in eleven telecom circles. . IDEAoffers contract and pre-paid cellular service options in addition to a number of value-added services such as mobile Web browsing, video streaming, and multimedia messaging. Totaling to 13,625,355 or 11.8% of the total 105,425,183 mobile connections in India.
Airtel(GSM) Reliance (CDMA + GSM) Vodafone Essar(GSM) BSNL(GSM) IDEA(GSM) Tata (CDMA) others Total (All India)
CDMA figures include WLL services
m a rk e t s h a re a s o n 3 1 /05 /2 0 0 8
A irte l(G S M ) 24%
o) Ta ta (C D M A th e rs 8% 9% ID E A (G S M ) 10% B S N L (G S M ) 14%
V o d a fo n e E s s a r(G S M ) 17%
Net 4 India
Net4 is a leading IP Communication services and solutions company, focused on providing services to businesses. It has a PAN Indian presence, encompassing a wide array of IP solutions and services like Data Center services, Web Hosting Services, Corporate Email/Messaging solutions, VoIP services & solutions and Networking & IT Hardware products & integration Net4, pioneered the VoIP call shop model in India under the brand Phonewala, with an aim to take low cost international calling to masses. It now operates over 3000 Internet telephony call shops across 45 cities. Phonewala provides International calls to as many as 44 countries at Re.1 per minute.
World Phone
One of the most significant players in Internet Services, it provide a clear edge in services ranging from Internet bandwidth, Internet Telephony (VoIP) and related services for corporate as well as domestic users. India's premier VoIP solutions provider, World Phone is a Category "A" Internet Telephony Service Provider licensed by the Department of Telecommunications (DoT), Government of India. Backed by the US based multinational TI Investment Services, we bring communication commensurate with world standards to India. We offer a myriad of services that you can choose from. We provide VoIP call solutions to over 30 countries-at ISD call rates less than a rupee, call center solutions, broadband Internet solutions and international calling booth solutions.
Introduction to company
TATA GROUP
Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of which 61 per cent is from business outside India. The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The Group's 27 publicly listed enterprises have a combined market capitalisation of some $60 billion, among the highest among Indian business houses, and a shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications. The Groups major companies are beginning to be counted globally. Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the worlds second largest manufacturer of soda ash. Tata Communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Businessweek ranked the Group sixth amongst the Worlds Most Innovative Companies and the 10
Reputation Institute, USA, recently rated it as the Worlds Sixth Most Reputed Firm. Founded by Jamsetji Tata in 1868, the Tata Groups early years were inspired by the spirit of nationalism. The Group pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Groups pioneering spirit has been showcased by companies like Tata Consultancy Services, Indias first software company, which pioneered the international delivery model, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, for commercial launch by end of 2008. The Tata Group has always believed in returning wealth to the society it serves. Two-thirds of the equity of Tata Sons, the Tata Groups promoter company, is held by philanthropic trusts which have created national institutions in science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the Trusts and the companies amounts to around 4 per cent of the Groups net profits. Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 is ranked the worlds fourth fastest. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its share employees and wider society
11
Information Technology
Automotive
Metals
Tata Consultancy Services Tata Technologies Tata Elxsi Tata Interactive Systems
Tata Steel
The Indian Hotels Company Limited (Taj Hotels Resorts and Palaces) Tata Realty and Infrastructure
Communications Engineering Products & Services Tata Teleservices Tata Communications Tata Sky Voltas Tata Projects
Composites
Financial Services
12
Services
Tata Communication
Global communications solutions company, Tata Communications, provides voice data and next-generation services to carriers, enterprises and consumers. Renamed Tata Communications after due approvals, the company has 13
undergone a rapid transformation since it became a part of the Tata Group in February 2002. Tata Communications has now evolved into a leading international provider of diversified communications solutions from an Indiacentric international voice wholesaler. The company now operates in over 30 countries with a total workforce of over 4,000 people, a quarter of which are located outside India. It has achieved this transformation through a mix of organic growth and global acquisitions, including the acquisition of the global submarine cable network of Tyco in 2005 and Teleglobe, a global wholesale provider, in 2006. The company is headquartered in Mumbai and its significant international operations are in New Jersey, Montreal, Singapore and London. Tata Communications businesses are structured along three global business units.
14
domain knowledge of its solution architects. Tata Communications also manages the Tata Groups telecommunications relationship with the largest enterprises on behalf of the various group telecom companies, including Tata Teleservices, Tata Internet Services and TataNet. Tata Communications is a leading provider of bandwidth and IP connectivity services to service providers globally. As the owner of one of the worlds most extensive and advanced submarine cable networks and a Tier-1 ISP, Tata Communications is well positioned to serve the connectivity needs of service providers across all continents. It is further leveraging its skills in network engineering, operations and management to provide such services on an outsourced basis to other telecom companies, enabling them to achieve significant improvements in performance, quality and cost.
Investments
Tata Communications has made investments in joint ventures in Nepal, Sri Lanka and South Africa. In South Africa, it is the strategic partner in the countrys second national operator, Neotel with an effective stake of 26%. Neotel has
15
launched its wholesale and enterprise services and is expected to enhance its network and retail presence during 2008.
Infrastructure
Tata Communications is one of the worlds largest owners of submarine cable bandwidth, with its own cables connecting four continents and all major countries. Tata Communications also has a vast terrestrial fiber network in India that includes over 40,000 route kilometers of inter-city network and metro-area networks in all major cities. The companys IP network has over 200 points of presence, in addition to a global MPLS and Ethernet network. Tata Communications global network is managed through multiple network and services operation centers in Mumbai, Chennai, Montreal and New Jersey. Its investment in state-of-the-art IT operations support, business support and network management systems give it a competitive edge in the marketplace. It has obtained several industry certifications such as the TL 9000, ISO 14001, BS 7799 and Sunstone certifications. The company has been recognized by its peers at the World Communications Awards 2006 as the Best Wholesale Provider and at the Global Wholesale Telecommunications Awards in 2006 and 2007 as the Best Pan-Asian Wholesale Provider. Tata Communications was also identifed by the Boston Consulting Group (BCG) as one of the top 100 global challengers, companies from rapidly developing economies that were most likely to challenge and change the world.
16
The Company has a fair, transparent and ethical governance practices. The Company has adopted a Code of Conduct for its employees including the Managing Director. In addition, the Company has adopted a Code of Conduct for its Non-Executive Directors. Both these Codes are available on the Companys Website. The Company believes that total business risk elimination is never possible but can be minimized by consistently developing and following the best practices of Corporate Governance. To this end, the Company focuses on developing and implementing higher standards of accountability to enable optimum returns to all stakeholders. The Company is installing new state-of-the art systems including integrated financial accounting and budgeting systems and through a systematic process of training and development has increased the quality of its personnel. The Companys operations and accounts are audited at three levels: an internal audit; a statutory audit by an India accounting firm under Indian accounting requirements and their restatement by an internationally recognized accounting firm according to US GAAP. The Company is incompliance with the requirements of the revised guideline son corporate governance stipulated under Clause 49 of the Listing Agreements with the Stock Exchanges. Besides, the Company being listed on the New York Stock Exchange, it has to comply with the stringent rules and regulations of the Sarbanes-Oxley Act, 2002 (SOX). The Company believes that achieving SOX compliance will inter-alia enhance its financial reporting structure. The Company communicates regularly with its shareholders through bulletins, presentations and meetings with analysts and investors.
OVERVIEW
The global reach and industry expertise of Tata Communications drives and delivers a new world of communications. The company leverages its Tata Global Network, vertical intelligence and leadership in emerging markets to deliver value-driven, globally managed solutions.
17
Tata Communications Ltd. unites the industry and market expertise of VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit, VGSL and CIPRIS to become the leading integrated provider of telecommunications solutions. Fortune 1000 and mid-size enterprises, service providers and consumers rely on our Global Network, encompassing one of the most advanced and largest submarine cable networks, a Tier-1 IP network, and connectivity to more than 200 countries across 300 PoPs. Our comprehensive portfolio includes transmission, IP, converged voice, mobility, managed network connectivity, data centers, communications solutions and business transformation services for global and Indian enterprises and service providers, as well as broadband and content services to Indian consumers. Tata Communications serves its customers from offices in 80 cities across 40 countries, reflecting the diversity of the customers and markets we live in and serve. Our unique market and industry expertise enables us to deploy a comprehensive portfolio of communications solutions to customers in existing and emerging markets worldwide. With a strategic investment in the South African operator Neotel, Tata Communications possesses a strong anchor to build an African footprint. Tata Communications Ltd. is part of the $29 billion Tata Group; it is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange (NYSE: TCL).
OUR CULTURE
Where adding value to the markets, customers and communities we serve is business as usual.
Our People
18
Our global office holds talent from six continents. Our vast pool of expertise in the communications and technology sectors embody our commitment to conduct ethical and sustainable business. Tata Communications continues a tradition of developing and deploying innovative solutions for existing and emerging markets worldwide. Our international team reflects the dynamic and diverse market Tata Communications serves.
Our Values
Service and business at Tata Communications is guided by a commitment to ethical and responsible conduct.
19
Vision
Deliver a new world of communications to advance the reach and leadership of our customers.
Commitment
Invest in building long-lasting relationships with customers and partners and lead the industry in responsiveness and flexibility.
Strategy
Build leading-edge IP-leveraged solutions advanced by our unmatched global infrastructure and leadership in emerging markets.
20
LEADERSHIP PROFILE
Srinath Narasihhan
Managing Director & CEO, Tata Communications
Srinath Narasimhan is the Managing Director and CEO of Tata Communications (formerly VSNL), part of the $29 billion Tata Group.Mr. Srinath has over 20 years experience within theTata Group, having held various positions in project management, sales and marketing, as well as significant corporate functions in several Tata companies. Mr. Srinath has been responsible for spearheading new projects in high-technology areas such as process automation and control, computers and telecommunications and was an instrumental figure early in the launch of the Tata Group's CDMA services. Mr. Srinath previously served as Executive Assistant to the Chairman for Tata Industries, a position he held until 1992. He worked with a strategic team to set up Tata Information Systems, which later became Tata IBM. Throughout his tenure here, he accepted a number of assignments in sales and marketing. In 1998, Mr. Srinath returned to Tata Industries as General Manager, Projects and worked with Tata Teleservices in this capacity for a year. In 1999, he moved to Hyderabad as Chief Operating Officer responsible for all the operations of Tata Teleservices. In late 2000, Mr. Srinath took over as Chief Executive Officer of Tata Internet Services, a position he held until February 2002, when he moved to VSNL as Director (Operations). He subsequently became Executive Director for VSNL.
21
In 2006, Mr. Srinath was honored with the Telecom Asia 'CEO of the Year' award in recognition of his role in transforming VSNL from a domestic monopoly to a major global telecommunications company in just four years. During this time, VSNL's business model was reinvented and the company entered several new businesses, both in India and abroad. Mr. Srinath holds a degree in Mechanical Engineering from the Indian Institute of Technology, Chennai and an MBA from the Indian Institute of Management, Kolkata, specializing in marketing and systems.
Vinod Kumar
President, Global Communications Data and Mobility Solutions, Tata
22
As President of Global Data & Mobility Solutions for Tata Communications, part of the $29 billion Tata Group, Mr. Kumar is responsible for expanding Tata Communications' roadmap and charter into the global communications market. Enhancing the service capabilities and customer-facing activities in strategic markets beyond the shores of India, in a nutshell, sums up his mandate. In addition to heading these strategic initiatives, Mr. Kumar is also responsible for the Wholesale Data, Global Mobile and International Enterprise lines of business, and for meeting the company's ambitious targets. Mr. Kumar is also a Director on the Board of Tata Communications Limited. Mr. Kumar has a wide range of cross-functional experience in the
telecommunications industry. He also has an impressive track record in developing business strategies and creating fast growth organizations. He was previously Senior Vice President of Asia Netcom, responsible for all aspects of generating top-line growth, including strategy formulation, product marketing and sales. He was actively involved in all aspects of the financial restructuring and eventual asset sale of Asia Global Crossing to China Netcom, resulting in the formation of Asia Netcom. In 1999, Mr. Kumar joined WorldCom Japan as Chief Executive Officer. Prior to that, he held various senior positions at Global One in the United States and Asia where he had major responsibilities in market management, sales, marketing, product management, multinational account management, and operations. Mr. Kumar graduated with honors in Electrical and Electronic Engineering at the Birla Institute of Technology and Science in India.
23
Michel Guyot
President, Global Voice Solutions, Tata Communications
Michel Guyot is President of Global Voice Solutions for Tata Communications, part of the $29 billion Tata Group. In this position, he is responsible for worldwide voice activities for the group, encompassing the management of local wholesale voice operations in India.Mr. Guyot has more than 25 years of international telecommunications experience and has held a number of key
24
executive positions at Teleglobe. Prior to taking on his current position, Mr. Guyot was Teleglobe's Vice President of International Markets, responsible for the company's International Sales organization and commercial activities for Europe, the Middle East, Africa and Asia-Pacific. Among other positions, Mr. Guyot has also served as Teleglobe's Executive Director of Marketing as well as Vice President Europe. He played a leading role when Teleglobe moved to a competitive environment in Canada and was a key member of the executive team during the 2002 restructuring process. Mr. Guyot is Chairman of the Board of Directors for the Telecommunications Executive Management Institute of Canada, and has served as the Canadian Representative and Council Member for Canada at the Commonwealth Telecommunications Organization. Mr. Guyot holds a Bachelor of Commerce Degree from L'cole des Hautes Etudes Commerciales (HEC), Universit de Montral, and is a member of the Certified General Accounting Association of Canada.
Rajiv Dhar
Chief Financial Officer, Tata Communications
Rajiv Dhar is the Chief Financial Officer for Rajiv Dhar Chief Financial Officer, Tata Communications .Rajiv Dhar is the Chief Financial Officer for Tata Communications, a member of the $29 billion Tata Group. With over two decades of experience, 12 years of which he served in various positions within the Tata Companies, he has successfully led and managed teams handling M&A, corporate strategy,
25
corporate finance, accounting, cost control, treasury and taxation. Throughout his tenure, he has worked in telecommunication, oil and gas, construction and manufacturing industries. Mr. Dhar, a Chartered Accountant, joined Tata Communications from Tata Industries Ltd. in June 2005. He holds a Bachelors Degree with Honors from Delhi University.
26
group of individuals. To overcome the last mile connectivity problem, your Company is rolling out its own wireless networks based on Wi-Max technologies
INDUSTRY ANALYSIS
The Indian telecom industry has changed significantly over the last decade with all its segments opening to competition. This market is now highly competitive, complex and evolving rapidly, with numerous services Offerings of different kinds, including fixed-line, mobile, Internet, long distance and various data services. Indias telecom market is growing rapidly and by 2010, telecom is expected to be a Rs.1380 billion sector, contributing 5.4% to Indias gross domestic product (GDP). According to the latest figures from the Telecom
27
Regulatory Authority of India (TRAI), during 2006-07 Indias mobile subscriber base increased approximately 68%, from 98.78 million to 166.05 million, while the fixed subscriber base declined approximately 1.82% from 41.54 million to 40.78 million. During the year, the broadband subscriber base grew 70%, from 1.35 million to 2.30 million. STD charges fell substantially after the announcement of new Interconnect Usage Charges (IUCs see below) with effect from 1 March 2006, while international private leased circuit charges dropped by about 10-20% and broadband tariffs fell by 30%. The rapid growth in this market offers a vast potential demand for VSNLs various services. Effective 1 April 2007, the TRAI revised the access deficit charge (ADC - a component of the IUC that makes up for below-cost monthly rentals and local call charges for fixed telephones). The ADC was reduced on incoming International Long Distance (ILD) calls from Rs.1.60 per minute to Rs.1.00 per minute and on outgoing ILD calls from Rs.0.80 per minute to nil. The additional revenue share of 1.5% of the adjusted gross revenue (AGR) towards ADC was also reduced to 0.75% for all operators including international long distance operators. Recently, the Department of Telecom (DoT) further relaxed the licence conditions in respect of security related obligations for provision of VPN services for international and national long distance services, and more new entities have been licensed to provide NLD/ILD services.
28
Sales Department Technical Department Retention and Revenue Department Customer service Department
FIBER
MR.Ashish Narula (In charge of installation and Maintenance Team) Installation and Collection Maintenance Team Team
29
30
The
Tata
Communications
brand
integrates
the
former
VSNL,
VSNL
International, Teleglobe, Tata Indicom Enterprise Business Unit (TIEBU) and Cipris brands worldwide. "We are tremendously pleased with the launch of the new brand," said N Srinath, CEO and managing director of Tata Communications. "The Tata Group has a long and highly respected history of achievement and contribution to the many markets, industries, and communities it serves. Tata Communications will continue to build on our track record of successes, strong global investment strategy, and India and emerging markets strengths to grow globally in its targeted segments." "In the past few years, it is with great anticipation that we have sought to bear the Tata name as it is a mark of our commitment to quality and ethics for our enterprise customers worldwide," says Vinod Kumar, president, Global Data and Mobility Services, Tata Communications. "We are extremely excited to have a more direct affiliation through our brand across all of the different industries in which the Tata Group leads, and to bring that expertise to each and all of our enterprise customers." "The next trillion dollars to be made in global communications will depend heavily on emerging markets where Tata Communications is already a leading player," said Camille Mendler, vice president of research at Yankee Group. "There is grand ambition, but also integrity in how the company executes; ultimately, customers worldwide can only benefit from its unified global presence. During the last year, Tata Communications has announced significant investments in enhancing network and services capabilities in India, intra-Asia, Middle East and Africa. The TGN-Intra Asia and TGN-Eurasia cables, complementing the company's existing multi-terabit capacities across the Atlantic and Pacific oceans, will ensure diverse and reliable inter-continental connectivity. Data centre expansion and rollout of managed services will offer value-added, hosted and customized solutions. Tata Communications also continues to expand its global MPLS and Ethernet networks to enable scalable and secure connectivity and advanced services. Tata Communications' wi-max network rollout in India 31
will provide customers with high-speed and reliable connectivity to over 100 cities and towns. Additionally, Tata Communications' strategic investment in South African operator Neotel provides a strong anchor to build an African footprint.
32
33
Prepaid MRPs are inclusive of all taxes. Broadband has been defined by DOT as an always on connection with minimum download speed of 256 kbps. Service availability on best effort basis. Some plans may not be available in some areas. Service available in select areas. The speeds mentioned are download speeds. Upload speeds are equal to download speed or up to 512 Kbps, whichever is lower. At the time of placing the order, you will need to submit documents pertaining to Installation address proof and photo identity proof
Installation Address Proof: 1. Ration Card 2. Electricity Bill 3. Telephone Bill 4. Gas connection bill 5. Bank Statement/ Pass book 6. Credit Card statement 7. Form 16/ Assessment order from Income Tax 8. Lease Agreement/ Rent agreement/ Flat purchase agreement/ Letter from the company 9. Form ST 2 Photo Identity Proof
34
The upfront payment has to be made through a crossed Cheque or a Demand draft (credit cards, debit cards or cash are not accepted). All payments to be drawn in favor of Tata Communications Limited.
Installation charges are for cabling to one location only Tata Communications is responsible for delivering the service on a single point to the customer premise. This can be to a PC or a CPE. However further distribution or cabling that may be required is the customers responsibility.
Any CPE provided by Tata Communications is the property of Tata Communications. Subscriber shall return it to Tata Communications on termination of account.
Expected time of Installation of your broadband connection is 7 days from the date of picking up the order
35
36
37
Tata Communications has always been a global player, with global presence, acquisition of companies such as Teleglobe, Tyco global and largest investments in undersea cable systems such as Sea-Me-We 4 and Flag. Tata group itself has always been globa lwith acquisitions such as acorus Tatas investment of $500 million in WiMAX is one of the most important developments in Asia. While not at the level of XOHM at $4 billion, the impact on the broadband wireless scene in India will be immense and signify a paradigm change in the manner in which services are used across vast traits in the country where even 3G is a year away if not more.We expect that like M-Taiwan initiative, it will be a major determinant of e-governance and online applications. India has one of the most vibrant stocks and commodity markets, highest per month growth of mobiles in the world and the largest entertainment industry in the world in terms of volume. We expect a large number of WiMAX enabled devices to emerge on the scene with this new initiative.It will also be a clear signal to rest of Asia, where WiMAX is well used that this is the technology to use despite some doubts being expressed by competing camps. Like Taiwan, we expect India to be the home ground for many of the new devices which natively support WiMAX. The next step i.e. the auction of mobile WiMAX spectrum in India is sorely needed to be an enabler of further growth of these techONOLGY
38
39
year and are being forecast to be over $8.5 billion by the end of 2008. This is primarily being driven by low cost unlimited calling plans and the abundance of enhanced and useful telephony features associated with VoIP technology. This is a phenomenal growth rate and with the rapid introduction of Video over IP fueling demand, the future of this technology is truly exciting and will enable us to enjoy products that our grandparents and even parents never thought were possible. Video over IP follows the same concept as VoIP but in this case enables the transmission of video signals. As such, video phones are becoming more common than you would think, and many companies are already offering attractive packages. One of our featured partners, Packet8 already has a video phone offering. For further information and a detailed explanation on VoIP you can visit our VoIP Explained page. Our VoIP review section and VoIP provider plan search engine will then aid you in making your final purchase decision, to start using this revolutionary new technology in your home.
PC-based telephony is becoming a widely used option for communicating. Internet telephony is the term used to describe a category of hardware and software that enables people to use the Internet as the transmission medium for telephonecalls. For users who have free, or fixed-price Internet access, Internet telephony 40
software essentially provides free telephone calls anywhere in the world. There are many Internet telephony applications available. Some, like Microsoft NetMeeting, come bundled with popular Web browsers. Others are stand-alone products. Internet telephony products are sometimes called IP telephony, Voice over the Internet (VOI) or Voice over IP (VOIP) products. Internet telephony can be basically broken down into three categories consisting of PC-to-PC telephony, PC to Phone, and Phone to Phone.
PC-to-PCCalling
PC-to-PC telephony enables you to call another person who is online at the same time you are, using the same telephony client (or one that is compatible). To use your PC to talk to another person through his PC, you'll need to have compatible software, a microphone and speakers (or alternatively, a PC headset) and Internet access. While broadband access will work best, you can also make PC-to-PC calls with dial-up Internet access. PC-to-PC telephony is free you should never be required to pay to make these calls, regardless of where the person you want to communicate is located. PC-to-PC telephony lacks the crisp clear quality that you typically get with regular phone lines, but of course the trade-off is that you won't need to pay to use it, which is why it is a popular communication choice for family and friends who live outside of each other's local telephone calling access. Today there are myriad software choices, many of them free, which offer basic PC-to-PC calling. It's important to remember that you will need compatible software with the person you are calling, so deciding on a free program before using PC telephony is a good idea. For those who use Instant Messaging programs such as Google Talk, AOL AIM, Yahoo! Messenger or MSN messenger, these communication platforms do have voice communication services built in. Skype, and Sharp Voice are other free programs that you can
41
use. Many free PC-to-PC telephony programs also offer PC-to-Phone communications as well. Most PC-to-PC telephony software works like several of the popular Instant Messaging clients. Good PC-to-PC telephony software clients allow you to keep a contact list, and when that contact is online, you simply click to begin a voice conversation, similar to initiating a text instant message. Some clients will allow you to initiate a group or multiple-user PC-to-PC telephony session, while others include this feature only when you upgrade from the free version. How It Works: The client software converts transmitted speech into data packets and routes it over the Internet. The receiving client turns the data packets back into voice signals that are heard through the speakers or headphones on the receiving end.
PC-to-PhoneCalling
PC-to-phone telephony allows you to make calls from your computer to regular telephones. The technology is similar to PC-to-PC calling. While this is a service you pay for, it's usually cheaper than using your long distance telephone provider. To use PC-to-Phone services, you need to have the same equipment used for PC-to-PC calling; a microphone and speakers (or alternatively, a PC headset), and Internet access. How It Works: The PC phone user's PC acts as the originating gateway, which converts the voice transmission into data packets onto the Internet. At the end gateway provided by the software distributor, the data packets are converted to voice signals and routed to the PSTN. The PSTN then routes the call to the receiver's telephone, as it would with regular telephone calls.
Phone-to-Phonecalling
A relatively new type of Internet telephony service, which is quickly gaining in popularity with consumers and business. Phone-to-phone telephony also allow telephone calls to be placed over the Internet, but it differs drastically from the
42
other types of Internet telephony. Phone-to-phone telephony does not require users to have special software, or even a computer to use it. Phone-to-phone uses traditional telephones on both ends. To make phone-to-phone telephony calls, you need to have an Internet Telephony Service Provider (ITSP). The ITSP will have gateways in different areas around the world. When you place a call, that call is routed over the Internet to a gateway located the closest to the receiving party. The gateway will then send the call over the PSTN to the receiving party's regular telephone. Because much of the transmission for the call takes place over the Internet, Phone-to-phone telephony is cheaper than using a regular telephone service provider. Your ITSP will be the one who handles your subscription and billing How it Works: Users with Internet telephone connections place a call from their landline phone. The voice signals are digitized, compressed and converted to data packets. When the data packets arrive at the gateway, they are converted back into voice signals. Once converted, the voice signals are then transmitted through the local PSTN to the receiver.
Internet Service provider (ISP) Policy was announced in November, 98 which prohibited Telephony on Internet. The New Telecom Policy99 envisaged opening up of Internet Telephony where upon the Government has decided to permit ISPs to process and carry voice signals ( Restricted Internet Telephony Service) with effect from 1st April, 2002, subject to the broad guidelines .Brief details are as under;
Only
Internet Telephony service. The applicant company is required to pay Rs. 10,000/- as processing fee along with the application.
Any Indian company with a maximum foreign equity of 74% is eligible for grant of License (100% is also allowed, but in that case the ISP can not set up an International Gateway)
Based on Service Area of Operation, they are categorized as Category 'A', 'B' and 'C'. Category Category "A" Service Area Whole of India 20 territorial Telecom Circles, four Metro DistrictsCategory "B" Delhi, Mumbai, Calcutta or Chennai and four major Telephone Districts- Ahmedabad, Bangalore, Hyderabad or Pune. Any Secondary Switching Areas Category "C" (SSA) of DOT with geographical boundaries as on 1.4.98 An applicant company may be granted any number of licenses and there will be no limit of number of licenses granted in a particular area. Performance Bank Guarantee - Rs. 2 Crore for Category 'A' Service Area, Rs. 20 lakh for each Category 'B' Service Area and Rs. 3 Lakh for each Category 'C' Service Area.
License fee is waived unto 31.10.2003 and will be Re. 1/- per annum thereafter for those ISPs who obtain licenses prior to 01.11.2003.;
44
however, the Telecom Authority reserves the right to review an impose license fee including Universal Service Obligation (USO) levy anytime during the validity of the license, which decision with its terms and conditions, shall be binding on the licensee.
Private ISPs are permitted to setup their own gateways. ISPs are allowed to set up international gateways using satellite and submarine cable landing stations.
Under Simplified Exit policy , an ISP can surrender the Licence without starting the service, by paying surrender charges. The surrender charges would be equivalent to 5% of the Performance Bank Guarantee (PBG) amount.
Benefits of VoIP
Low cost, coupled with a seemingly endless list of new possibilities make VoIP technology one of the hottest Internet technologies today. There are however several other benefits to using this technology.
Cost Effective - Traditional phone calls work by allocating an entire phone line to each call. With VoIP, voice data is compressed and transmitted over a computer network. This means VoIP uses substantially less
45
bandwidth than a traditional telephone call and is consequently more cost effective.
Simple Infrastructure - With VoIP on your network, you no longer need separate cabling for your telephone system.
Scalable System - Traditional PABX (Private Automatic Branch Exchange) based phone systems come in many size ranges and it may be necessary periodically to scrap existing systems and replace hardware. This is not the case with VoIP systems.
Low Operating Costs - Because a VoIP exchange is based on software rather than hardware, it is easier to alter and maintain.
Portability - You can make and receive phone calls wherever there is a broadband connection simply by signing in to your VoIP account. This makes VoIP as convenient as email. For instance if you are traveling, simply pack a headset or Internet phone and you can talk to your family or business associates for almost nothing.
Extra Features - There are many other features that make VoIP attractive. Call forwarding, call waiting, voicemail, caller ID and three-way calling are some of the many services included with Internet telephone at no extra charge. You can also send data such as pictures and documents at the same time you are talking on the phone.
Research Methodology
Objectives of Study
The objective of study is to 46
To study the awareness among people regarding net telephony. To study the satisfaction level of customer on the basis of various factors.
Statistical Tools
For the analysis of collected data about sales, statistical technique used is Pie diagram, Bar diagrams.
Area to be covered
Study is based on the area from which data is going to be collected. For that I collect data from Chandigarh.
Primary Data
Data is collected by visiting retailer shops and primary data is being used. The method used for purpose of collecting data was Questionnaire Method. In our case we used Structured-questioning method. Questionnaire was made filled by meeting personally to all the respondents
Sample Size
To complete the research I visited 300 retailers and checked the volume of their calling status of STD PCO booths.
Sampling unit:
47
Sampling unit means, Who is to be surveyed? Sampling unit for this research were the retailers who are providing ISD calls facility to consumer.
48
3 The full efforts were made to convince the respondents, but they were sometimes not cooperative with us due to their busy schedule. 4 Few of the respondents hesitated while giving responses and there might some chances of biased-ness in the respondents. 5 Relative understanding of retailers regarding the questions. 6 Sometimes respondents tried to give information of which they were not
aware fully, some guesses were made and sometimes despite a willingness to co-operate, many respondents were unable to give accurate information.
49
50
51
1.
about Net Telephony? The following tabulated data shows the response of the respondents.
of
31
Yes No
69
52
The above table shows that only 31% of the respondents are aware about the Net Telephony whereas 69% of the respondents are unaware.
2.
Telephony Operator being dealt with by the public. The response to this question of course was dependent upon the answer to the first question. As only 62 respondents, which are 31% of the total respondents, gave positive response to the first question, so only 62 respondents attempted this question. The following table shows the collected data:
Net Telephony Operator Tata Indicom Soft Phone Net4India World Phone Sify Airtel Total
No. 3 10 3 30 16 62
of
Table 2
53
5 26 16
48
s The above table shows that the maximum number of respondents (48%) are dealing with Sify Net Telephony Operator followed by Airtel (26%). The other respondents, which are 16% of the total respondents, are using Net4India, Tata Indicom Soft Phone or World phone. So the major players are Sify and Airtel only.
54
3.
using a particular Operator. The response to this question of course was dependent upon the answer to the first question. As only 62 respondents, which are 31% of the total respondents, gave positive response to the first question, so only only 62respondents attempted this question. The following table shows the collected data:
Reason for using Net No. Telephony Operator Respondents Tata Indicom Soft Phone More Margin Better Connectivity Availability of Recharge Others Sub total (a) 3 0 0 0 3 Table 3a Reason for using Net No. Telephony Operator Respondents Net4India More Margin Better Connectivity Availability of Recharge Others Sub total (b) 8 2 0 0 10 Table 3b
of
of
55
Reason for using Net No. Telephony Operator Respondents World Phone More Margin Better Connectivity Availability of Recharge Others Sub total (c) 3 0 0 0 3 Table 3c Reason for using Net No. Telephony Operator Respondents Sify More Margin Better Connectivity Availability of Recharge Others Sub total (d) 22 5 3 0 30 Table 3d Reason for using Net No. Telephony Operator Respondents Airtel More Margin Better Connectivity Availability of Recharge Otherss Sub total (e) 10 4 2 0 16 Table 3e
of
of
of
56
Summary Table of Tables 3a, 3b, 3c, 3d and 3e %age of Respondents stating the reason More Better Availabilit Others Margin Connectivi ty Tata Indicom 100 80 100 73 63 0 20 0 17 25 Soft Phone Net4India World Phone Sify Airtel y of 0 0 0 0 0 Recharge 0 0 0 10 12
Table 3f
100% of the respondents of Tata Indicom Soft Phone as well as World Phone 80% of respondents of Net4India 73% Sify and 63%of Airtel Operator were using their connection due to More Margin whereas . 25% of Airtel user were using their connection due to Better Connectivity whereas percentage of Net4India due to better connectivity is 20% as against 17% in case of Sify. 12% of Airtel user and 10% of Sify user were using due to Availability of Recharge.
57
12 0 10 0 80 60 40 20 0
100 80
100 73 63 25 12 0
% age of R es po ndents s tatin g th e rea s on M o re M argin % age of R es po ndents s tatin g th e rea s on B etter C o nne c tivity % age of R es po ndents s tatin g th e rea s on A va ilability o f R ec harge % age of R es po ndents s tatin g th e rea s on O th ers % age of R es po ndents s tatin g th e rea s on O th ers
20 000 00
17 10 000 0
fy Si
58
So ft P ho n Ne e t4 I nd W ia or ld Ph on e
Ta ta
In d ico m
Ai
rte l
4.
59
24 29
40
The above table shows that most of the calls are being made to USA and UK & Canada. Out of total calls made (374), 40% of the total calls are being made to USA & Canada and percentage (24%) of calls are being made to USA Only 4% of the calls are made to Europe and (3%) of calls are being made to Gulf. The remaining 29% of the calls are being made to other countries like Australia, Nepal, etc.
60
5.
of 1 to 5. The 5 points being for Excellent and 1 point being for very poor. The following table shows the result of ranking: Table of Observed Frequencies
Tata
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 25 20 65 75 15 200 20 5 80 70 200 55 45 15 10 60 35 50 45 200 200 Table 5 70 20 15 20 200 10 150 10 15 200 200 200 200 200 1000
Tata Phone
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 40 40 40 40 40 200
61
40 40 40 40 200
40 40 40 40 200
40 40 40 40 200
(C.V.) Table value of Chi-Square at 5% 26.296 level of significance (T.V.) Relation between Calculated value C.V. > T.V. and Table value of Chi-square Whether the experiment provides Yes any evidence against the Null Hypothesis
Table 5c
62
150
Tata Indicom Soft Phone Net4India World Phone Sify Airtel 65 45 45 35 2020 15 15 15 10 10
10
63
6.
Ranking
of
Operators
on
the
basis
of
PRODUCT
AVAILABILITY:
The respondents were asked to rank the five major operators on the scale of 1 to 5. The 5 points being for Excellent and 1 point being for very poor. The following table shows the result of ranking: Table of Observed Frequencies
Tata
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 20 30 60 70 20 200 50 5 70 55 200 30 70 15 10 50 25 75 35 200 200 Table 6 30 40 45 15 200 20 130 10 20 200 200 200 200 200 1000
Tata
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 40 40 40 40 40 200 40 40
64
Phone Net4India
40
40
40
200
40 40 40 200
40 40 40 200
40 40 40 200
40 40 40 200
40 40 40 200
Table 6b
(C.V.) Table value of Chi-Square at 5% 26.296 level of significance (T.V.) Relation between Calculated value C.V. > T.V. and Table value of Chi-square Whether the experiment provides Yes any evidence against the Null Hypothesis
65
Table 6c
140 120 100 Tata Indicom Soft Phone 80 60 40 20 0 5 4 3 2 1 No. of Points No. of Respondents giving stated points 20 5 70 50 55 75 70 60 50 30 30 15 35 25 10 45 40 30 15 20 20 20 10 70 Net4India World Phone Sify Airtel
130
7.
The respondents were asked to rank the five major operators on the scale of 1 to 5. The 5 points being for Excellent and 1 point being for very poor. The following table shows the result of ranking: Table of Observed Frequencies
Tata
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 20 30 80 60 10 200 10 5 90 75 200 30 60 10 15 60 20 70 25 200 200 Table 7 80 20 20 20 200 20 150 10 10 200 200 200 200 200 1000
67
Table of Expected Frequencies No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 40 40 40 40 40 200 40 40 40 40 200 40 40 40 40 200 40 40 40 40 200 40 40 40 40 200 40 40 40 40 200 200 200 200 200 1000
Tata
Indicom
Table 7b
(C.V.) Table value of Chi-Square at 5% 26.296 level of significance (T.V.) Relation between Calculated value C.V. > T.V. and Table value of Chi-square Whether the experiment provides Yes any evidence against the Null Table 7c Hypothesis
68
150
25 20 15
2020 20 10 10 10 0 2 1 Total
69
8.
RATES:
The respondents were asked to rank the five major operators on the scale of 1 to 5. The 5 points being for Appropriate Charges and 1 point being for Very High Charges. The following table shows the result of ranking: Table of Observed Frequencies
Tata
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 20 30 80 60 10 200 90 5 60 25 200 50 30 10 15 60 40 50 35 200 200 Table 8 20 20 30 70 200 10 150 10 20 200 200 200 200 200 1000
Tata
Indicom
No. of Respondents giving stated points No. of Points 5 4 3 2 1 Total Soft 40 40 40 40 40 200 40 40 40 40 200 40 40 40 40 40 40 40 40 200 200 Table 8b 40 40 40 40 200 40 40 40 40 200 200 200 200 200 1000
70
(C.V.) Table value of Chi-Square at 5% 26.296 level of significance (T.V.) Relation between Calculated value C.V. > T.V. and Table value of Chi-square Whether the experiment provides Yes any evidence against the Null Hypothesis
Table 8c
160 140 120 100 80 60 40 20 0 5 4 3 2 1 No. of Points No. of Respondents giving stated points 20 5 25 60 60 50 50 30 10 30 40 35 90 80 70 60 Tata Indicom Soft Phone Net4India World Phone Sify Airtel 30 20 20 150
15
20 10 10 10
71
there is significant difference in the opinions of respondents about the Charges on Call Rates of different Operators. The above table shows that Net4India got top position on the basis of Charges on Call Rates followed by Sify. 90 respondents ranked Net4India on the top whereas 60 respondents ranked Sify on the top position. Airtel was at the next position as 25 respondents gave it highest rank. The World Phone was at the bottom position since just 5 respondents ranked it on the top position. Tata Indicom Soft Phone stood above World Phone. So Net4India and Sify proved two major players on the basis of this criteria.
9.
number of callers at the PCO. The following is the tabulated result of collected data:
72
% of footfall at PCO
3 3 9
2 1 2 2
6 Below 10 10 to 20 20 to 30 30 to 40 32 40 to 50 50 to 60 60 to 70 70 to 80 80 to 90 90 to 100
12
The above table shows that though the range of number of calls being made at PCOs is from 10 Minus to 200 Plus but most of the calls being made fall in the narrow range of 10 to 40. The %age of respondents stating 10 to 20 calls was 32 which is the maximum percentage followed by the range of 20 to 30, the percentage being 20 and 12% of the respondents reported 30 to 40 calls. So the narrow range of calls i.e. 10 to 40 consists of 62% of total range. The percentage of respondents reporting calls in the groups of 40-50, 50-60, 60-70, is below ten.
73
10.
duration of ISC all the PCO. The following is the tabulated result of collected data:
No. of Respondents
Percentage of Respondents
8 27 41 90 17 8 4 3 2 200 Table 10
4 13 21 45 8 4 2 2 1 100
74
The above table shows that though the range of average duration of ISD call at the PCO is from 1 to 30 minutes but most of the calls range from 2 to 8 minutes. The percentage of calls having average duration of 2 to 8 minutes is 79. 13% of the respondents reported average call duration of 2 to 4 minutes and another 21% of the respondents reported average call duration of 4 to 6 minutes whereas 8% of the respondents reported average call duration of 6 to 8 minutes. So average call duration may be taken as 5 i.e. average of 2 and 8.
75
11.
and Cost of Hardware used. The following table shows the information collected on this technical point.
Cost of Hardware (in Rs.) 2500 3000 3500 4500 5000 7000 8000 8500 10000 Total
The maximum i.e. 27% of the respondents reported cost to be Rs.8000 and 21% of them reported cost to be Rs.3500, whereas 17% of the respondents reported cost to be Rs.7000.
76
12.
hardware used. The following table shows the information collected on this technical point.
0 21
79
77
Out of 19 respondents who were using hardware, 15 respondents i.e. 79% of them were using Single Line hardware whereas 4 respondents i.e. 21% of them were using Double Line hardware and no one was using hardware having more than two lines.
13.
Denomination of Recharge Coupon (in Rs.) Upto 500 500 to 1000 1000 to 1500 1500 to 2000 2000 to 2500 2500 to 3000 3000 to 4000 4000 to 5000 5000 to 7500 7500 to 10000 Above 10000 Total
No. of Respondents
Percentage of Respondents
13 19 73 25 19 20 14 7 5 3 2 200 Table 13
7 9 37 12 9 10 7 4 3 1 1 100
78
37
Percentage of Respondents 12 7 9 9 10 7 4 3 1 1
The above table shows that most of the respondents reported to have been using Recharge Coupon in the range of Rs.1000 to 1500. As we observe 37% of the respondents reported Recharge Coupon in the range of Rs.1000 to 1500. 9% of the respondents were using coupons in the range of Rs.500 to 1000. So 46% (i.e. 37% + 9%) of the respondents were using Recharge Coupons in the range of Rs.500 to 1500. 12% and 9% of the respondents were using the Recharge Coupons in the ranges of Rs.1500 to 2000 and Rs.2000 to 2500 respectively. So, 67% (i.e. 46% + 12% + 9%) of the respondents used Recharge Coupons in the range of Rs.500 to 2500.
(in
79
14.
Operator:
Information collected from the respondents about the Commission Earned on Recharge Coupons is tabulated below:
No. of Respondents
Percentage of Respondents
86 54 24 18 10 8 200 Table 14
Commission Earned on Recharge Coupons
43 27 12 9 5 4 100
0 50
25
1 2 3 30 4 5 6 7
40
35
80
The above table shows that 43% of the respondents are getting commission on Recharge Coupons upto 20% whereas 27% of the respondents are getting commission @ 25%. So, 70% (i.e. 43% + 27%) of the respondents are getting commission upto 25%. The high rates of commission i.e. 40% or 50% were reported by 5 + 4 i.e. 9% of the respondents.
15.
81
% of amount charged 60 49
50
40 30 Percentage of Respondents
30
20 11 10 6 4
The above table shows that 49% of the respondents charge Service Charges in the range of Rs.2 to 4 whereas 30% charge in the range of Rs.4 to 6. So, 79% (i.e. 49% + 30%) of the respondents are charging Service Charges in the range of Rs.2 to 6.
82
16.
Company Providing Connection Airtel Connect Tata Indicom Reliance Sify BSNL Vodafone Connect Plus any other Airtel Plus any other
No. of Respondents 3I 56 7 4 21 66 4 6 5
Percentage of Respondents 16 28 3 2 11 33 2 3 2
83
Total
200 Table 16
% of Company connection
100
2 16 Airtel Connect Tata Indicom Reliance Sify BSNL 28 Vodafone Connect Plus any other Airtel Plus any other
33
11
The above table shows that 33% BSNL connection of the respondents (maximum percentage) have BSNL connection whereas 28% (3% having solely Connect connection and 5% having Airtel plus any other connection) of the respondents have Airtel connection. So, the BSNL connection is most favoured connection of the public.
84
Occupation Studio medical Store Music Cloth communication Stationary Std Photostat electronics others confectionary karyana internet total
85
3.5 1.5
Studio medical Store Music Cloth communication Stationary Std Photostat 10 electronics others confectionary karyana
13.5
11
11
5.5 25
internet
86
Recmondations
Demand: as we observe from the market there is very few demand of net telephony due to invention of other alternate technologies like mobile operators providing calling card and chatting options available on internet. Panchkula & Mohali is a city where most of population is of employees they dont have time to go these booths and make calls so if they want they use calling cards or chat on net. We should launch a plan or service in such a way he can get this service cheaper than calling cards and provide easily to its home or he can use it at his laptops by attaching with broadband connection at office or at home with full satisfaction. Competition: as we study in survey that the trend of STD PCO booths is declining fast due to emergence of mobile services which is reached near 400 million subscriber although there is still huge competition in this calling booths business where connect is leader in this and in net telephony Sify is at peak. To appear in market as leader have to promote our product by cheaper calling rates and excellent service and we should launch promote a plan for homes or
87
retailers which must be cheaper than the retailer who provide this calling service.
Brand Image: during survey we interact with some respondents who dont
want to talk because there bad experience with Tata Indicom mobility due to network problems, billing problem, no or late security refunds, poor service for maintenance equipments. So we have to over come with this image by providing full satisfaction as Tata Communication Internet Services.
1. 2. plan. 3.
We should promote our product more aggressively. We should launch our product plans more favorable than competitors
maintenance services. We can claim customer care service must be faster than competitor.
88
BIBLIOGRAPHY
Books
Kotler Philip, Marketing Management, Pearson Education, Twelfth Edition. Naresh K. Malhotra, Marketing Management & Research Methodology. Quantitative Techniques Digambar Patri
Web Sites
www.ask.com www.google.com www.wikipedia.com www.tata.com www.tataindicom.com
89
Appendix Questionnaire
1. Are you aware about Net telephony? Yes 2. No
Which Net Telephony Operator you are dealing with. Tata Indicom Soft Phone Phone Sify Airtel Net4India World
3.
What is the reason for using above operator. More Margin Recharge Better Connectivity Availabilty of
4.
Which country mostly calls happens. USA Gulf UK & Canada Europe
5.
Rate the following operators on scale of 1 to 5, 5 being Excellent and 1 be Very poor on voice clarity. Tata Indicom Soft Phone Net4India World Phone Sify Airtel
90
6.
Rate the following operators on scale of 1 to 5, 5 being Very good and 1 be very poor on Product Availabilty. Tata Indicom Soft Phone Net4India World Phone Sify Airtel
7.
Rate the following operators on scale of 1 to 5, 5 being Very good and 1 be Very poor on Brand Visibility. Tata Indicom Soft Phone Net4India World Phone Sify Airtel
8.
Rate the following operators on scale of 1 to 5, 5 being Appropriate Charges and 1 be very high Charges on call rates. Tata Indicom Soft Phone Net4India World Phone Sify Airtel 9. Average No of caller footfall at PCO. .. 10. Average Duration of ISD call at the PCO. .. 11. Manufacturer and Cost if Hardware User. .. 12. Feature of Hardware Used.
91
Single Line
Double Line
More than two Lines 13. Denomination of recharge Coupons provided by operator.
14.
15.
Personal Information: Name of Outlet: Name of Owner: Age: Contact Number: Occupation:
92