“CHANGES IN TELECOM INDUSTRY IN THE LAST 6 MONTHS (TELECOM)”
BECAUSE BECOMING SUCCESSFUL CAN BE TAUGHT
A division of NIS SPARTA LTD,
Anil Dhirubhai Ambani Group Company
In partial fulfillment of academic requirement of the MBA & PGPM Programme, year – 2011-2012
PARSHU H ATTIGUDDA
MBA & PGPM
APP NO: 271259
The research is based on the quality of services that are being offered by various mobile service providers and the level of satisfaction that the customers experience. The government launched the mobile phone services and opened it for the private operators nearly 10 years back. With this move of the government many big and small companies ventured into the business. But as we move on today, nearly after 5 years only half of the companies are surviving in the industry. The number was also increased which was a thousand subscribers in 2005 to less than a million in 2011. Today mobile service providers serve nearly 60 million customers adding 2.5 million subscribers per month. But the rate of addition of new subscribers is equalized or balance with the number churn rate of the companies. According to Telecom Regulatory Authority of India (Trai) Mobile telephony service providers have failed to meet the set customer satisfaction benchmarks. An attempt to meet churn rate problem companies are constantly trying to come up with new ideas and plans to retain their original customer and attract new customer. Customer satisfaction has become an important factor that influences a customer while selecting a mobile service operator. Overall satisfaction, network availability, billing problems and customer care services, usage, selection criteria are some of the key areas which we aimed to measure in our research.
TELECOM INDUSTRY IN INDIA
The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.
History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.
The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.
In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, 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. National Telecom Policy (NTP) 1994...