Documentos de Académico
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Documentos de Cultura
e-ISSN: 2278-2834,p- ISSN: 2278-8735.Volume 10, Issue 3, Ver. IV (May - Jun.2015), PP 62-68
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Abstract:Every company has its prime aim to Growth. With the changing times increase in competition has
become their core competencies and has a competitive edge over others. Business matrices like Net sales, Profit
(%) after tax,Total Income (Capitalization), Total Expenditures and level of satisfaction of the customers are
important indicators representing the stand of companies in the market. A comparative analysis of the major
telecom providers like Bharti AirtelLimited, Tata Communications Limited, Idea Cellular Limited, Reliance
Communications Limited,Vodafone India Limited and Bharat Sanchar Nigam Limited (BSNL)and in India has
been presented in this paper on the basis of secondary data which includes last five year Profit (%) after tax,
Total Income and Total Expenditures. This data has been collected to measure the level of satisfaction (LOS) of
the Indian telecommunication customers. This LOS was evaluated for various factors like network coverage;
customer service,tariffrates, plan and accountability of bill. An empirical study has been done and conclusions
have been brought out on the basis of the data collected though an online field surveyto achieve this objective.
An online questionnaire was prepared and was distributed to mobile phone users viasocial networking
sitesandemail for this purpose. The collected data was analysed with the help of prowess software. A sensitivity
analysis was done to verify the significance of the factors considered for determining the LOS. In this paper, it
was concluded that Bharti Airtel is the overall leader in all business matrices mentioned above.
1. Introduction
The Information and Communication Technology (ICT) Industry in India has perceived a tremendous
growth in the past 1.5 decade. With the boom in technology, the ICT Industry has experienced exciting
possibilities, ranging from a speedy expansion in size to gaining importance in the overall Indian economy. The
escalated effect of the ICT industry has led to the formation of a larger and more significant constituent of the
overall export market. It is aiding the improvement of the local and global competitiveness of Indian companies
across industries. The fact that the Indian ICT market is one of the mostrapidly growing ICT market in the world
for the third yearstands as a secured testament to the increased leverage ofICT by the domestic industry [2].
Talking about theTelecommunications sector, which is a sub domain of the ICT industry, the sector is growing
at a remarkable paceand India is the second largest telecom market globally since 2010. In April 2008,
Indiasurpassed the US as the second largest wireless market and as an indicator to the swelling global influence
ofIndian telecom companies. Seven Indians have featured inthe list of the world's 100 most prominent and
influentialtelecom leaders, compiled by Global Telecoms Business industry magazine [1]. Forthcoming services
such as4G will further augment the growth rate. Theworld's leading telecom handsets manufacturers, such
asNokia, Samsung, Micromax have their presence inIndia, along with leading global service companies
andinfrastructure majors, such as AT&T, Ericsson, Alcatel, Singapore Telecom and Siemens.India reached the
target of having 300 million telephonesubscribers; becoming the second largesttelecommunications network in
the world after China in June 2008. As per the report [3] India is having 800 million mobile subscribers and it
expected to reach 900 million by 2015. India is emerging as one of the fastest growing telecom markets in the
world. According to the report titled 'Mobile BRIC: Extreme Growth Ahead', BRIC (Brazil, Russia India and
China) India is the secondlargest mobile market in the BRIC nations, with 650 million mobile users, since 2012
(after China with 800million users). Indian telecom industry has had a long way and is expected to soar even
higher and the growth rate is expected to double with every passing year. To make full use of this opportunity, a
large number of players has entered into the telecom industry, the major being Airtel,Vodafone, Idea, BSNL,
Tata, Reliance.In todays era, with the increase in telecom serviceproviders, it has become essential for the
variouscompanies to excel and have a competitive edge over the others. The firms must innovate and come up
with groundbreaking and novel services so as to stand out in the globalmarket. It would be quite interesting to
know about the performance of the various telecom service providers and to do a comparative analysis of them.
This can disclose a number of facts about their stand in the market and also what image do they carry among
their customers. A range of business matrices like year Total Expenses, net sales, Profit (%) after tax and
capitalization reflect the health and wealth of thecompanies and also affect the subscriber base. At the same time
it is essential to satisfy their customers in order to expand their subscriber base. Customer satisfaction is
significant to be cashed upon for an accentuated growth. The companies can be compared on the basis of a
number of parameters. The most significant ones can be, total net sales profit after tax reduction, market
capitalization and level of satisfaction of the customers. Firstly, net sales is an important index of measuring a
DOI: 10.9790/2834-10346268
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3. Research Methodology
In this paper, a study to compare the major telecom service providers in India is presented. Telecom
Service Providers such as Bharti Airtel, Idea Cellular, Reliance Communications, Tata Indicom and BSNL are
compared. For this purpose secondary data was collected pertaining to last five year values of three important
business matrices which are Market Capitalization, Net Sales and Profit after Tax Reduction. This data was
collected from Capitaline Database [10] which is an online corporate database consisting of financial and
nonfinancial information on more than 12000 companies. After collection of secondary data, graphs were
plotted for each of the business matrices which present the comparison of the performance of the telecom
service providers for the last five years for that particular business matrix. In the present study, the comparison
of the telecom service providers is also presented in terms level of satisfaction of their customers. This was done
for factors such as Tariff Rates, Plan, Accountability of Bill, Bill PaymentConvenience / Recharge Facility,
Value Added Services, Customer Services, and Schemes. In order to determine the level of satisfaction of Indian
telecommunication customers, an online field survey was conducted. For this purpose, an online questionnaire
was prepared on the website qualtricsand was sent to a number of people in Bhopal Region via e-mail and
various social networking sites. Hence primary data was collected to get real time results. A total of 596
respondents filled the questionnaire out of which 480 were completely filled. The questionnaire comprised of
questions regarding the demographics of the respondents, the name of the service provider whose service they
are availing and their monthly expenditure. The respondents were also asked to express their level of satisfaction
forthe various factors on a scale of 1 to 5, 5 being the most satisfied and 1 being the least satisfied.
The factors used for determining the level of satisfaction of Indian telecommunication customers may
or may not be significant in determining it. Hence, in order to find out which of these factors are significant and
to justify that the factors used truly help in determining the level of satisfaction, a sensitivity analysis was done
with the help of SPSS (Statistical Package for the Social Sciences) software version 12.0 for windows. A
statistical hypothesis test namely Chi Square test was applied on the responses received to the question
enquiring the level of satisfaction of the customers. Chi Square Test gives thevalue of a probability called Chi
Square Probability, say P.If the value of P is less than 0.05 then the factor on whichit is applied is said to be
Sensitive Factor otherwiseNonsensitive Factor. The findings obtained by analysing the data are shown in the
following section.
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Figure 1
Figure 1 shows the graph between Net Sales (in crore rupees) of the various telecom service providers
for the past four years. It can be clearly seen that the net sales of Airtel for the years March 2010to 2014 are Rs.
367181 crores, Rs. 384795 crores, Rs. 422278 crores, Rs. 468310 crores andRs. 509055crores respectively. No
other telecom service provider has ever managed to surpass Airtels sales. Hence Airtel leads in terms of Net
Sales. Figure 2 below depicts the graph between profits after tax reduction (in crore rupees) of the various
telecom service providers for the past five years. From Figure 2 it can be undoubtedly said that the profits after
tax reduction ofAirtel from the year 2010 to 2014 have increasedtremendously. The values of profits after tax
reduction are Rs. 94267 crores, Rs. 77169 crores, Rs. 57300 crores,Rs. 50970 crores and Rs. 66002 crores from
the period of March2010 to 2014. Here also, no other telecom service provider has ever managed to surpass
Airtels profits. Hence Airtel leads in terms of profits after tax reduction too.
Figure 2
DOI: 10.9790/2834-10346268
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Total Income
600,000.00
500,000.00
Bharat Sanchar Nigam Ltd.
400,000.00
200,000.00
100,000.00
Figure 3
It can be clearly seen from the graph that no other telecom service provider has been able to give even
a slight completion to that of Airtel as their Market Capitalization values are very low as compared to Airtel. For
example, the telecom service provider with second highest total income is Idea with a value of Rs.247268.5
crores which is only 48.56% that of Airtel. Hence Airtel leads in terms of total income too.
Figure 4
DOI: 10.9790/2834-10346268
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Vodafone
Airtel
Idea
Reliance
BSNL
LOS
4
3
4
4
5
%*
45
45
43
44
46
LOS
5
3
4
4
5
%*
53
40
40
41
43
LOS
4
3
4
4
5
%*
50
45
47
46
44
LOS
4
4
5
4
5
%*
49
51
45
44
60
LOS
2
3
3
5
4
%*
51
46
45
47
48
TATA
INDICOM
LOS
%*
3
46
4
42
4
44
4
45
5
43
47
44
45
47
44
41
4
3
50
49
4
3
42
48
3
3
43
49
3
3
46
48
4
3
43
49
4
3
45
48
Significant
0.027
0.091
0.854
Y
Y
Y
Y
Y
Y
N
N
From table II, it can be seen that the value of Chi-Square probability for factors like Customer Services
and Schemes came out to be greater than 0.05. Hence these factors are statically non significant. Hence they do
DOI: 10.9790/2834-10346268
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