Submitted by :
Adhil Ahmeh Sagir
George Thomas K
Amit Kumar Das
Mobile phones, which were introduced around a decade ago in1995–1996 in India, are becoming the dominant means of accessing communication. At the end of 2005–2006, there were 90 million mobile subscribers in India in comparison to 50 million subscribers for landlines. Indian mobile subscriber base has now reached 617.53 million users, while number of telephone subscribers (wire line & wireless) in India has increased to 653.92 million for month of May 2010.the increase in mobile phones has been phenomenal in comparison with landlines since the introduction of mobiles in the country. According to the latest trai report, the mobile tele-density(number of mobile phones per 100 inhabitants) in India stands at 52.30 compared to 36.98% at the end of march 2009(trai: annual report’08-‘09)and if the mobile growth rate continues at this pace – we should cross 1 billion mobile mark in less than 2.5 years (end 2012).
Here are details of telecom subscribers in India
* Total telephone subscriber base reaches 653.92 million
* Wireless subscription reaches 617.53 million
* Wire line subscription declines to 36.39
* 16.30 million new additions in wireless
* Overall tele-density reaches 55.38
* Broadband subscription is 9.24 million (source: Arun Prabhudesai, founder / chief editor at www.trak.in)
Market share of overall telecom operators:
(Source: India business blog- track.in)
The projected rapid growth in the mobile subscriber base will have important implications for future plans of mobile operators, infrastructure providers, handset suppliers and vendors. Mobile operators should be ready with contingency plans to deploy and operate infrastructure including customer care, billing, applications, etc., faster than that they might have initially planned. Infrastructure providers, handset suppliers and vendors should be prepared to respond to such plans. Industry growth drivers:
* Vast geographic expanse of India acted as a catalyst to boost mobility * Low call costs since 2002 fuelled the wireless segment
* Narrowing gap of call costs between fixed & wireless convinced customer to subscribe to wireless connections. * Nationwide roaming facility.
* SMS facility
* Internet +subscription bundling.
* Many telecom service providers provide Global Calling Card (GCC) to their customers. These cards help them to make calls from the foreign countries and save up to 80-90% in international roaming.
Segmentation of the Indian cell phone users market
As we are going to make research on student of Christ University, so we are focusing on youth segment of the market. This segment particularly values prepaid schemes with free sms services. It is further differentiated into various micro-segment based on age & gender. For instances, youngsters in the age group of 19to 23 years generally have a large circle of friends like group talk & group sms to these people. They also show interest in downloading ringtones as well as surfing internet in the mobile phones. This is a huge revenue source for service providers 7 so they need to keep up with the changing tastes of this segment. The Indian mobile operator space is highly competitive with many players. Study shows that the role of customer loyalty becomes critical in the mobile phone market, as operators lose approximately 30 per cent or more of their subscribers every year and have large customer acquisition expenditures. Reichheld and sasser also showed that a 5 per cent decrease in customer attrition translates to a 25 – 85 per cent increase in profits, depending on the service industry. Attaining and retaining the loyalty of customers essentially needs to be preceded by incorporating consumer preferences into the product / service design and offer. Bharti...
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