“A STUDY ON BRAND PREFERENCE IN

SMART PHONES
IN URBAN MARKET OF KANPUR”

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 CHAPTER - I

INTRODUCTION

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 INDUSTRY PROFILE

TELECOM INDUSTRY

The mobile industry in India has scaled dramatically over recent years to become one of the

country’s biggest success stories. With over half a billion mobile subscribers, the Indian market

is already the second largest in the world. Technology migration is under way and accelerating,

with more than 40% of mobile connections forecast to be running over mobile broadband

networks by 2020. India is already the third-largest smart phone market in the world. There were

185 million smart phone connections as of mid-2016, and a further half a billion new

connections will be added by 2020. The sheer scale of this market is attracting both local and

international manufacturers, with a number of the latter looking to shift handset manufacturing to

India. A local smart phone manufacturing ecosystem focused on producing low-cost but high-

specification smart phones will play a vital role in meeting the needs of local consumers. The

Indian mobile market is unique from a global perspective, with 12 active mobile operators. It is

by some distance the most competitive market in Asia Pacific. Voice pricing is already low by

international standards. Although data traffic is growing strongly, operators are handicapped in

their efforts to monetize this by the high cost of spectrum and the limited amount of spectrum

allocated for mobile services. Reflecting these challenges, mobile operator revenue growth is set

to slow, with a compound annual growth rate (CAGR) of around 6% forecast out to 2020.

Operators are committed to significant capital investment to improve mobile broadband network

coverage and capacity. Capex over the last four years has totaled more than INR119, 205 crore

($18 billion).

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PRESENT STATUS

PRESENT STATUS OF THE TELECOMMUNICATION SECTOR (AS ON

DECEMBER 31, 2016)

1. Indian telecom network is the second largest in the world after China.

2. The country has 971.01 million telephone connections, including 944.01 million wireless

telephone connections.

3. Overall tele-density in the country is 77.59%.

4. Urban tele-density is 147.75%, whereas rural tele-density is 46.14%.

5. The share of wireless telephones in total telephones is 97.22%.

6. The share of private sector in total telephones is 89.15%.

7. Number of Broadband connections is 85.74 million.

THE CHART INDICATING THE NUMBER OF CONNECTIONS AT THE END OF

EACH MONTH DURING THE YEAR 2016-17 IS AS FOLLOWS:

GRAPH - 1

Telephone connection during (2016-17) in millions

980
971.01
970
964.24
962.67
960 957.95

951.88
950 946.45
942.99
940 938.35
935.81

930

920

910
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

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Despite operators’ efforts to minimize capex and operating costs through network sharing and

managed services agreements, pressure remains on their operating margins. A move to

consolidation and more sustainable market structures is vital if operators are to continue to

support this magnitude of investment, deliver the ongoing improvements in network speed and

capacity, and bring connectivity to the 60% of the Indian population that still has no access to a

mobile phone. The mobile ecosystem directly provided employment to 2.2 million people in

India in 2016, of which 300,000 were in the formal economy and 1.9 million in the informal

sector. More than 800,000 new jobs will be directly created by mobile operators and the rest of

the mobile ecosystem over the next six years, bringing the total number of directly supported

jobs in both the formal and informal sectors to 3 million by 2020. More than 2 million jobs will

also be supported in the broader economy.

In 2016 the industry made a contribution of INR88, 000 crore ($14 billion) to the funding of the

Indian public sector, a figure that by 2020 will grow to INR122,000 crore ($22 billion). These

figures exclude the proceedings obtained by the Indian government through spectrum auctions.

The 2016 and 2017 spectrum auctions have generated government revenues of more than

INR1.75 lakh crore ($28 billion).1 Innovative mobile solutions are helping to provide

underdeveloped, underserved and low-income populations across the country with the

opportunity to overcome socio-economic challenges, particularly in the areas of financial

inclusion, health and education. The Digital India initiative, which looks to empower 1 billion

subscribers by providing Internet access to all and make broadband a utility for every citizen, has

broad support in the telecoms industry. To date, there has been too much emphasis on employing

fiber and unlicensed spectrum, rather than harnessing the potential of mobile technologies and

services to cover the last mile. Mobile operators and the broader mobile ecosystem have the

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capacity to make a much greater contribution and are seeking a greater role in the overall

program.

FUTURE EXPECTATIONS…?

Key takeaway: As the number of embedded devices that require mobile connectivity grows,

telecommunications companies will be looking for opportunities to increase

revenue.

The telecom sector continues to be at the epicenter for growth, innovation, and disruption for

virtually any industry. Mobile devices and related broadband connectivity continue to be more

and more embedded in the fabric of society today and they are key in driving the momentum

around some key trends such as video streaming, Internet of Things (IT), and mobile payments.

The number of “connected things” continues to grow as mobile and “smart” device utilization

and connectivity continues to expand—which will ultimately shape and define the IT space.

Based on the results of our latest Global Mobile Consumer Survey (GMCS), US consumers look

at their devices over 8 billion times a day in the aggregate. This is a big deal for all sectors within

the telecom industry including wireless and wire line/broadband carriers, network

equipment/infrastructure companies, and device manufacturers who are all critical components

of this key ecosystem.

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As the number of embedded devices that require mobile connectivity grows, telecommunications

companies will be looking for opportunities to increase revenue through their core businesses

such as network connectivity, sale of network equipment and devices, all of which this emerging

ecosystem will require, as well as through new products and services that are enabled by these

core businesses.

The consumer oriented “things” that comprise IT will in large part consist of wearables, smart

phones, “connected” cars and “smart” homes. We also expect manufacturing, transportation,

utilities, retail, and hospitality to be big contributors to this rapidly emerging and complex

ecosystem particularly in the enterprise space. Telecommunications companies will also find

new opportunities for growth in the public sector, as “smart cities” gains more traction.

Consumer demand for digital technologies that make it easier to access and pay for public

services using mobile devices, such as parking and transportation, will help to drive these

initiatives, as will municipal demand to operate the city more effectively and efficiently through

applications such as connected city lighting, asset monitoring and tracking, and video security.

For telecom companies looking to expand, we expect to see a continued increase in alliances and

partnerships which can help bring a variety of requisite capabilities and speed time-to-market.

For example, integration with key players in industries such as retail, automotive, or healthcare is

a way for carriers to expand their business, and do so in a way that is timely and less risky.

Companies can avoid having to invest significant resources and time to develop these core

capabilities themselves, each leveraging their natural strengths. There also remains opportunity

for cross-sector M&A (e.g. telecom + media, telecom + tech), as well as M&A in other vertical

industries as a way to pursue these complex solutions.

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WHAT SHOULD BUSINESSES BE MINDFUL OF AS THEY

PLAN FOR GROWTH?

Carriers need to continue to focus on providing data and voice services that are high quality,

reliable, and affordable. The challenge in 2016 will be doing this in a market where there is

increasing usage, declining rates, and scarce spectrum. With billions of dollars at stake, 2016

spectrum auctions will remain a top-of-mind concern for both carriers and the US government,

even though additional spectrum will only help to address part of the increase in demand for data

and voice service.

QUALITY

AFFORDABLE RELAIBLE

Key takeaway: Carriers need to continue to focus on providing data and voice services that are

high, quality, reliable and affordable.

Data usage has been growing dramatically, particularly due to streaming services, and is

expected to continue that path in the year ahead. Wi-Fi usage will continue to be key, especially

as carriers look to offload more mobile traffic onto broadband networks (especially fiber) as well

as considerations around other spectrum efficiency technologies and potentially unlicensed

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spectrum solutions (i.e., LTE-U). Voice over LTE (VoLTE) and Voice over Wi-Fi (VoWiFi)

services will also be a key focus to help carriers rationalize networks and potentially offer

improved and expanded services.

Furthermore, carriers will need to consider other network strategies to better manage coverage,

quality, and capacity. Further densifications of cell sites including small cells represent a viable

strategy for many carriers, as do other network efficiency trends such as Software Defined

Networking (SDN) and Network Function Virtualization (NFV). Operators are essentially

moving away from proprietary, hardware-based network equipment to software-based network

functions which should allow them to manage their networks more efficiently and effectively.

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 WHAT MARKETS DO YOU SEE EMERGING IN THE

SECTOR?

STREAMING OR BUFFERING OF CONTENT

Key takeaway: Massive data consumption will continue to grow with the expansion of IoT and

more streaming of content.

Wearable’s and smart phones are two related areas to continue to watch. Findings from our

latest GMCS help to underscore how wearable’s are beginning to gain real traction in the

marketplace—with ownership rates doubling over the prior year, but still at relatively small

levels (10 percent and under) indicating significant potential for growth. According to our

research, those that do own wearable’s are actively using them—74 percent of consumers use a

smart watch on a weekly basis, and 66 percent of consumers use a fitness band weekly.

Massive data consumption will continue to grow with the expansion of IT and more streaming of

content—especially video. We also expect to see sponsored data services further emerge as

providers look for ways to increase revenue in a market where consumers are less likely to invest

in long-term ownership of content.

Location-based services, such as mobile advertising, also represent significant potential for

growth. The overall trend: development of more services and capabilities that further leverage

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mobile devices, analytics and the mobile ecosystem to make everything more convenient and

efficient for consumers, all while balancing and protecting privacy.

A big upcoming wave of change for the telecommunications sector will be the emergence of fifth

generation mobile networks (5G). While the technology is still several years away from

achieving mass market coverage, what it promises—more speed, greater efficiency, and less

latency—will be essential to supporting connected things in the future, especially self-driving

cars. 2016 is likely seeing heavy momentum toward implementation of the next generation of

wireless network technologies such as 5G which should move from the lab to field trials, despite

mass-market rollout still being several years away.

The smart phone market will continue to be robust with continued flexibility for regular device

upgrades. With more robust upgrade options, we would also expect the secondhand Smart phone

market to continue to grow. In 2016 consumers globally are estimated to sell outright or trade-in

120 million used smart phones—an increase from the 80 million smart phones estimated in

2017—generating more than $17 billion for their owners. This is particularly driven by the ease

of trade-ins, more transparent trade-in value, as well as the desire for owning a latest model

device. The biggest potential implications are for handset vendors, who are likely to become

more and more aware of the residual value of their devices as well as carriers who can get more

smart phones into the hands of even more budget conscious consumers.

Lastly, we have been watching momentum steadily increasing for mPayments. The findings of

Deloitte’s most recent GMCS show that there was a nearly fourfold increase in use of

mPayments technology from 2016 to 2017. More handsets are being equipped with Near Field

Communication (NFC) chips, retailers are upgrading payment systems in response to regulatory

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pressures and consumer demands, and businesses of all types, from gas stations to coffee shops,

are implementing point-of-sale technology that allows customers to pay using mobile devices.

Given these trends, we anticipate that Payments will finally become a payment method of choice

for many consumers in 2016.

Needless to say–there will be a vast array of changes that will make 2016 an exciting year for the

sector.

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ORGANIZATION

PROFILE

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 HISTORY

INTRODUCTION

Telecommunication is defined as the science and technology of communication over a distance.

The ability to convey information quickly, accurately, and efficiently has always been one of the

main focuses driving human innovation. From prehistoric man with their signal fires to the smart

phone-wielding high-powered executives of today, communication still remains a key for

survival and success. The history of telecommunication illustrates this never-ending push for

progress as it steadily parallels human growth, becoming more widespread and efficient as the

development of modern civilization unfolds.

Prehistoric Era: Fires, beacons, smoke signals, communication drums, horns: Man's first attempts

at distance communication were extremely limited. Prehistoric man relied on fire and smoke

signals as well as drum messages to encode information over a limited geographic area as they

attempted to contact neighboring clans. These signals also needed to have very simple, pre-

decided meanings like "safe" or "danger" or "victory" or could be used as a form of alarm system

in order to alert prehistoric clans to predators or invading clans.

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6TH CENTURY BC: MAIL

Cyrus the Great was a Persian emperor at the height of Persia's power in the 6th century BCE.

The empire was so vast that Cyrus couldn't easily communicate from one end to the other: He is

credited as having established the first postal system in the history of the world. Other ancient

powers like Egypt, Rome, and China eventually built their own postal systems later on.

Communication begins with language, the distinctive ability which has made possible the

evolution of human society. With language any message, no matter how complex, can be

conveyed between people over a limited distance - within a room or place of assembly, or across

a short open space. In modern times 'town criers' hold an annual contest to discover which of

them can shout a comprehensible message over the greatest distance. The world record is less

than 100 meters. Already, at that short range, a more practical alternative is to run with the

message.

The history of communication is mankind's search for ways to improve upon shouting.

When running with a message, to convey it in spoken form, it is safer to do it oneself. Sending

anyone else is unreliable, as the game of Chinese whispers demonstrates. So another requirement

for efficient communication is a system of writing.

Messages carved on stone pillars communicate very well across time, down through the

centuries, but they are an inefficient method of communicating across space. The message reads

only within reading range; its recipients must travel to receive it. The system is altogether more

efficient if it is the message which travels. This requires yet another ingredient in the

communication package - a portable writing material such as papyrus. There are forms of long-

distance communication not based on words. The smoke signals used by American Indians

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(above all perhaps in westerns) are of this kind. So are bonfires lit in succession on a line of

hilltops. But such devices are only capable of conveying very limited pre-arranged signals, such

as 'danger' or 'victory'.

Some non-verbal systems are more sophisticated. The whistled language of Gomera, in the

Canary Islands, is used to communicate across deep valleys. It is well adapted to the islanders'

immediate needs, but would be incapable of sending this paragraph as an accurate message. For

communication of this kind writing remains indispensable.

The sending of written messages is a standard feature of government in early civilizations. Much

of our knowledge of those times derives from archives of such messages, discovered by

archaeologists.

There is great advantage to a ruler who can send or receive a message quicker than his rivals. In

the estimation of the ancient world the most efficient postal service is that of the Persians. Put in

place by Cyrus in about 540 BC to control his new empire, the largest yet known, it is much

improved upon by Darius a generation later.

IMPERIAL COMMUNICATION: 522-486 BC

Darius extends the network of roads across the Persian empire, to enable both troops and

information to move with startling speed. At the centre of the system is the royal road from Susa

to Sardis, a distance of some 2000 miles (3200 km). At intervals of a day's ride there are posting

stations, where new men and fresh horses will be available at any moment to carry a document

on through the next day's journey. The Greek historian Herodotus marvels at these Persian.

By this method a message can travel the full distance of the road in ten days, at a speed of about

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200 miles a day. A similar road goes down through Syria to the Mediterranean coast and Egypt.

Another goes east to India. Many different tongues are spoken in the Persian Empire, from Egypt

to India. But all the official messages travelling on the imperial roads are in one language,

Aramaic. This Semitic tongue, deriving from a tribe in northern Syria, first spreads through

Assyria. Then Babylonian merchants carry it further afield until, by the 6th century, it is in

general use as franc throughout Mesopotamia.

As a language for the Persian civil service, Aramaic also has a practical advantage. It uses the

Phoenician, a language to which it is related. So its letters can be written on papyrus (easily

portable) instead of needing to be pressed with a cuneiform stylus into wet clay.

SPEEDING UP THE MESSENGER: 2ND - 11TH CENTURY

Until recent centuries, the only way to increase the speed of communication has been to improve

the speed of the messenger. This depends on good roads, fast riders and well provisioned staging

posts at which fresh men and horses are always available. The network of Roman makes

communication steady and reliable, but it is unlikely that it is faster than the delivery system

perfected by the Persians - on the terrain of steppe and plateau, across which horsemen can

gallop with fine abandon.

However one major improvement in the speed of communication is recorded in the Middle East,

where in certain circumstances a simpler messenger is substituted for the horse and rider.

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PIGEON POST: FROM THE 11TH CENTURY

Domesticated pigeons are first developed in ancient Egypt, and the pigeon loft or dovecote

subsequently becomes a living larder for many communities - such as medieval monasteries. In

Baghdad, in the 11th century, the idea first occurs of making use of the tendency of certain

pigeons to fly straight home from wherever they may be.

A rapid one-way postal service (always back to base) becomes possible. By selective breeding of

suitable birds, the homing pigeon is developed. The swiftest and most wide-ranging conqueror of

medieval history, Genghis, sees the obvious potential. Pigeons carry swift news of each new

conquest to his homeland in Mongolia.

From being a gadget of luxury and sophistication, the Smart phone has gone on to become a

broad-based phenomenon in the Indian mobile phone market. The numbers speak for themselves.

Today, there are more than 27 million Smart phone users in urban India, which constitutes 9

percent of all mobile users in urban India. The numbers are higher in the large metros of the four

million plus population with one Smart phone user among ten mobile users. Interestingly, even

in smaller cities with a population of one lakh to ten lakh, the figure stands at an impressive 6

percent. These are the findings of the study “Smart phone Incidence in Urban India” conducted

by Nielsen Informate Mobile Insights, amongst over 10,000 respondents in towns with one lakh

plus population. With a base of 27 million users (and growing), insights into how consumers

across cities and towns are using their Smart phone ’s will go a long way in helping

manufacturers, marketers and advertisers make strategic decisions. No longer can marketers

(across the board) ignore the potential of this medium.

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Informate reports that 87 percent use it for running online searches followed by 80 percent for

social networking. While 72 percent Smart phone users are chatting and using webmail, 59

percent stream video and use their devices for maps and navigation. Banking & finance, travel &

shopping accounts for 30 percent of the usage. Accessing mobile television on a Smart phone is

also an increasing trend in urban India - 25 percent use their phones for this purpose.

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TELECOM COMMISSION

The Telecom Commission was set up by the Government of India vide Resolution dated April

11, 1989 with administrative and financial powers of the Government of India to deal with

various aspects of Telecommunications. The Commission consists of Chairman and four full

time Members, who are ex-officio Secretaries to the Government of India in the Department of

Telecommunications, besides, there are four part time Members who are the Secretaries of the

Government of India of the Concerned Departments.

THE PART TIME MEMBERS ARE:

a) Secretary, Department of Electronics and Information Technology.

b) Secretary, Planning Commission.

c) Secretary (Finance), Department of Economic Affairs

d) Secretary, Department of Industrial Policy and Promotion.

The functions of the Telecom Commission are:-

a) Formulating the policy of Department of Telecommunications for approval of the

Government.

b) Preparing the budget for the Department of Telecommunications for each financial year and

getting it approved by the Government and

c) Implementation of Government's policy in all matters concerning telecommunication.

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 STRUCTURE

OF

TELECOM INDUSTRY

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STRUCTURE

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The Indian telecom industry has undergone significant structural transformation since its

liberalization in the 1990’s. During the last decade, the Indian telecom industry has evolved into

a multi-segment, competitive market from a small supplier-dominated market having public

sector monopoly. Coherent Government policies have played a crucial role in shaping the

structure of the Indian telecom sector.

STRUCTURAL EVOLUTION OF THE INDIAN TELECOM

INDUSTRY
TELECOM SECTOR IN THE PRE-LIBERALISATION ERA (1980-1990):

Before liberalization, the public sector held a monopoly in provision of telecom services. The

entire telecom services operation in the country was carried out by the Department of

Telecommunication (DoT), a public sector entity established in 1985. It managed the planning,

engineering, installation, maintenance, management, and operations of telecom services for the

whole of India. In order to ease out its operations, two new public sector corporations viz.

MTNL and VSNL were set up under the DoT in 1986. Thus, before the entry of the private

players, the telecom services were provided by three public entities viz. DoT, MTNL and

VSNL. While MTNL primarily looked after the operation of basic telephony services in Delhi

and Mumbai, VSNL provided international telecom services in India. DoT looked after basic

telephony operations in regions other than Delhi and Mumbai. Prior to liberalisation the telecom

services were broadly classified as domestic basic (which included basic telephony, telex and

fax), domestic value-added services (VAS) which covered all other services such as paging,

cellular, data services, VSAT and international basic and VAS.

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TELECOM SECTOR IN THE POST-LIBERALISATION ERA

Private sector participation in the Indian telecom sector has been a gradual process, wherein the

government initially permitted players from the private sector to provide Value Added Services

(VAS) such as Paging Services and Cellular Mobile Telephone Services (CMTS), followed by

the Fixed Telephony Services (FTS) or Basic services. Eventually the private sector has been

allowed to provide almost all telecom services. Liberalization process in the telecom services

market began in 1992, with the unbundling of the domestic basic services and the domestic

VAS and entry of private players for providing the VAS such as cellular and paging services.

During this period, the government provided licenses to private players according to the

services that were to be provided in the specified areas of service provision. The country was

divided into circles (or categories) on the basis of economic potential. Thus, primarily these

divisions were mostly adjoining the states of India. Such demarcations were primarily

responsible for existence of various regional players in provision of telecom services. During

1994, through a competitive bidding process, licenses were granted to 8 CMTS operators in four

metros, 14 CMTS operators in 18 state circles, paging operators in 27 cities and 18 state circles.

After the domestic VAS, the basic services were opened up to private players. The National

Telecom Policy (NTP) 1994, which endeavored to build world-class telephone services in India

and aimed at providing telephones on demand, enabled the entry of private players in the

provision of basic services. Given the need for resources in addition to government sources for

achieving the targets of NTP-94, private investments and involvement of the private sector was

considered inevitable to bridge the resource gap. Thus, the private operators were allowed to

render basic services in the local loop. Initially, the provision of basic services had been

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deliberated as a duopoly between a selected service provider and the DoT. In line with this,

policy licenses were awarded to 6 BTS operators in 6 state circles.

The need for independent regulation had risen with the entry of private players. Also, to fulfil

the commitments made when India joined the World Trade Organization (WTO) in 1995, the

Telecom Regulatory Authority of India (TRAI) was established in 19971 to regulate telecom

services including fixation/revision of tariffs. The establishment of TRAI was a positive step in

terms of separation of regulations from policy making and operations, which continued to be

under the purview of the DoT2.

Further, in 1998, the Government also declared the policy for Internet Service Provision (ISP)

by private operators and had even begun licensing of the same around that time. Subsequently

the Global Mobile Personal Communications by Satellite (GMPCS) was also opened up for the

private players.

Although the private players had been allowed to participate in many telecom services

segments, the results of privatization had not been satisfactory entirely. Thus, a New Telecom

Policy (NTP-99) was announced on March 26, 1999, which came into effect from April 1,

1999. The NTP 1999 not only provided a major fillip to private sector participation in this

industry but also laid down the path for significant development of the Indian telecom industry.

The NTP 1999 allowed private operators providing cellular and basic service to migrate from a

fixed license fee regime to a revenue sharing regime to make the operations of the private

players financially viable. This policy change provided the much needed relief to private players

who were earlier burdened with huge debts that they had to service owing to their license fee

commitments. Another notable provision of the Act had been the entry of multiple private

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sector operators in the sector in contrast to the policy of duopoly practiced earlier. This not only

increased competition in the industry but also assisted the private players to attract new

investment and augment their subscriber base. The entry of private operators in the cellular

sector helped to reduce the operational cost of the industry. It also reduced the mobile tariffs

and provided a much needed boost to the industry. The Act also made the following provisions:

it permitted interconnectivity and sharing of infrastructure among various service providers

within same areas of operations; it allowed both voice and data traffic by service providers; it

opened up national long distance (NLD) and international long distance (ILD) services to

competition et al. Thus, the NTP 1999 can be viewed as the genesis of the cellular revolution

being witnessed in India.

The NTP 99 had also enunciated to separate the policy and licensing functions of the DoT from

the service providing functions to ensure a level-playing-field among private operators and

incumbents. Accordingly, as a predecessor to corporatization, two new departments viz.

Department of Telecom Services (DTS) and the Department of Telecom Operations, were

carved out of DoT, to separate the service provision and operational functions of DoT. Later in

2000, DTS was corporatized and renamed as Bharat Sanchar Nigam Ltd (BSNL), and thus the

functions of the incumbent service provider were separated from that of the policy maker. DoT

is now responsible for policy-making, licensing and promoting private investments in both

telecom equipment manufacturing and in telecom services. Subsequently in 2002, even VSNL

was privatized and its monopoly in ILD services was terminated (from March 31, 2002).

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CURRENT STRUCTURE OF THE INDIAN TELECOM

INDUSTRY:

Currently, both public sector players as well as the private sector players are actively catering to

the rapidly growing telecommunication needs in India. Private participation is permitted in all

segments of the telecom industry, including ILD, DLD, basic cellular, internet, radio paging.

The broad structure of the telecom industry (in terms of service providers) is depicted in the

diagram below:

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PUBLIC SECTOR
After the privatization of VSNL in 2002, only two premier PSUs, MTNL and BSNL operate in

India and provide various telecom services. As noted earlier, MTNL operates in Delhi and

Mumbai and BSNL provides services to the remaining country. In the post-liberalization era,

these PSUs not only have made significant progress but also have provided stiff competition to

their private counterparts.

PRIVATE SECTOR
Private operators have played a very crucial role in the growth of the telecommunication

industry, primarily in the mobile services. With the liberalization of the telecom industry, the

private sector has been increasing its foothold in the telecom services space. After the

introduction of NTP-99, the contribution of private players towards telecom services has

witnessed rapid strides. While the private sector is instrumental in providing both fixed line as

well as wireless services, it is mainly active in the wireless segment. The fixed lines account for

only about 2% of private sector's total subscriber base. While some private players have a pan-

India presence, there are many regional players that cater to only certain service areas.

CHANGE IN MARKET SHARE

The subscriber base of the public as well as private players has grown rapidly post-

liberalization. The subscriber base of telecom industry grew from around 18.68 mn during

FY98 to 429.72 mn during FY09 and a significant proportion of this growth has emanated from

the private sector. The private players registered an absolute growth of around 339.30 mn in

subscriber base during FY98-FY09. This could be largely attributed to rapid growth in mobile

subscriber base of the private players. With the gradual opening up of the telecom industry, the

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private players have been able to garner strength and improve their hold on the telecom service

provision. Further, the introduction of the New Telecom Policy (NTP-99), which enabled

migration in the license fee payment mechanism from a fixed regime to a revenue-sharing

regime, provided a major boost to private sector players. Moreover, initiatives such as allotting

third and fourth cellular licenses, shifting to a unified access licensing regime, execution of

calling party pays (CPP) regime, making incoming calls free, also drew significant growth in

the cellular subscriber base.

SUBSCRIBER AND CONNECTON PENETRATION RATES, Q2

2017

GRAPH - 2

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India will add 250 million new subscribers over the period to 2020, equivalent to nearly half of

the forecast subscriber growth in Asia Pacific over the next five years. As a result, India’s share

of total subscribers in the region will rise to 30% by the end of this decade, while unique

subscriber penetration will grow by 17 percentage points. Subscriber growth will be significantly

faster than in the broader region, narrowing the penetration gap with the regional average.

Other telecommunication services such as internet services, broadband services, VSAT, also

have evolved gradually and have become an integral part of the Indian telecom industry. Thus,

broadly the Indian telecommunication industry can be classified into the following segments:

1. Wireline services

2. Wireless service: GSM and CDMA

3. Internet services

4. Public Mobile Radio Trunked Services

5. Global Mobile Personal Communication by Satellite (GMPCS)

6. Very Small Aperture Terminals (VSAT)

7. Mobile Value Added Services

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1. WIRELINE SERVICES

The wire line segment includes basic wire line services rendered to households, commercial units

and to service providers such as public call offices. While the incumbent PSUs have been the

dominant players in wire line service, some private players have been gradually making their

presence felt in this segment. As on March 31, 2008, 5 licensed private operator groups were

providing wire line connections in addition to the incumbent BSNL and MTNL.

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reservoirs. With strategically integrated wire line tools, technologies, systems, and talent, we are

focused on unlocking the potential of conventional and unconventional resources.

Wire line services include measurement, well intervention, and remediation operations that use a

multi-strand cable to convey equipment and measurement devices into open- and cased-hole

wells.

Page 31
Page 32
2. WIRELESS SUBSCRIBER MARKET SHARE: SERVICE

WISE (GSM & CDMA)

The wireless services have witnessed significant growth in the past few years. India primarily

follows the GSM mobile system, in the 900 MHz and 1800 MHz band. The 900 MHz band has

greater transmission characteristics, thereby enabling lower capital expenditure for expansion of

coverage area as the number of towers and base stations required are lesser as compared to the

1800 MHz band.

The wireless services segment of the telecom industry clocked an annual average growth of

around 63.79% during FY05- FY09. India has overtaken the USA to become the second-largest

wireless network in the world, and is second only to China, with the addition of about 8 million

subscribers every month in the recent times. By end of FY09, the wireless industry had touched

the 391.76-mn-subscriber-mark. This total subscriber base of FY09 comprise of 297.26 mn

GSM subscribers and 94.50 mn CDMA subscribers. During FY09, around 130.69 mn

subscribers were added in the wireless segment of the telecommunication industry.

Page 33
Private sector players have played an important role in the rapid growth of the wireless segment.

The private players account for around 86% of the total wireless subscriber base. While public

sector has been instrumental in the development of the wire line service, the growth in wireless

subscriber base for these entities has been relatively slower compared to the private players.

Currently 12 wireless service providers (including 2 PSUs) exist and compete in different

regions. However, only 2 private players, Bharti and Reliance Communications, have

nationwide presence along with state-owned entities, MTNL and BSNL, which together

represent an additional pan-India presence. Many players have been taking initiatives to expand

operations across the country. The GSM sector is dominated by players such as Airtel,

Vodafone, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata

Indicom.

Bharti Airtel is the largest GSM mobile operator in India and has a subscriber base of 93.92

million followed by Vodafone, BSNL and Idea Cellular with a subscriber base of 68.77 mn,

46.71 mn and 38.89 mn, respectively. Reliance Communication is the largest CDMA mobile

operator with a subscriber base of 52.65 mn followed by Tata Teleservices and BSNL that have

a subscriber base of 35.12 million and 5.44 million, respectively. Only Reliance

Communication and Tata Teleservices offer both GSM and CDMA networks.

Page 34
3. INTERNET SERVICES
Internet services in India have witnessed significant growth in the last few years owing to

increased presence of the private players and emergence of new technologies. A significant

improvement has also been seen in the quality of internet services given the substantial up

gradation of telecom infrastructure

During the last 5 years, the subscriber base of internet services registered an average annual

growth of 49.5%, primarily driven by the rapid growth in subscriber base of the public sector

players.

GRAPH - 3

Page 35
4. PUBLIC MOBILE RADIO TRUNKING SERVICE (PMRTS)

Public Mobile Radio Trunking Service (PMRTS) is an instant, two-way mobile (walky talky)

communication service that allows a group of people to communicate with each other, even if

some or all of them are on the move. When radio channels are trunked, it means that your walky

talky automatically gets a free ‘path’, at the press of a button, to communicate with each other.

Page 36
THE WALKY TALKIES CAN BE DIVIDED INTO 3 BROAD

CATEGORIES:

a. FIXED WALKY TALKY

Walkies positioned at a central site like an office or headquarters where dispatcher / manager can

maintain contact with field staff. The equipment at such a site is referred to at the base station.

b. MOBILE WALKY TALKY

Walkies installed in vehicles are referred to as Mobile Walkies.

c. PORTABLE WALKY TALKY

Walkies small enough to be carried around in hand are referred to as Portable Walkies.

Page 37
CONTACT INFORMATION of PMRTS Licensees

Page 38
Page 39
5. GLOBAL MOBILE PERSONAL COMMUNICATION BY

SATELLITE (GMPCS)

Global Mobile Personal Communication by Satellite (GMPCS) systems have been planned using

Geostationary, Medium and Low Earth Orbit satellite systems. Government of India accorded

Infrastructure status to the GMPCS Systems in Dec 1999. The lead in GMPCS systems was

taken by Iridium, and is being followed by Global star, Teledesic, Agrani, Inmarsat P and others.

Motorola’s Iridium GMPCS system had to be shut down in May 2000, not long after its launch

in 1998, all within the span of a couple of years. The collapse has been variously attributed to

commercial no viability; alternative cheaper cellular communication systems; financial

structuring problems; overly optimistic subscriber projections; and technological backwardness

with narrow bandwidths and bulky handsets. However, other players like, Global star, Teledesic,

Agrani and Inmarsat are still going ahead with huge investments in similar ventures.

Page 40
Any global communication system has to be linked to domestic services of its participants and

hence has to deal with governments or regulators of a large number of countries.

Commencement of operations of the Iridium system in India was delayed much beyond its global

launch, due to delayed clearance from the Government. Regulation of GMPCS Systems is still an

evolving and controversial issue. Regulatory issues of greatest concern are the Spectrum Scarcity

coupled with large bandwidth requirements of the Internet ; Orbital congestion including the

Paper satellites ; and the Access to and Control of communication infrastructure by nations.

NEED FOR GMPCS

The globalization of the world economy is the driving force behind the development of GMPCS.

Increased personal mobility and the evolution of many businesses into large regional or global

operations is profoundly changing the way we communicate. In case of cellular telephony the

user of a mobile phone is only contactable while within a ‘cell’. There are places where the

phone will not work, especially in remote areas or areas of low population density, where it may

not be economically feasible to install the equipment necessary to support the network..

Additionally, ‘international roaming’, may not be possible if a roaming agreement is not in place

or the technology may not be compatible.

Page 41
MAJOR SERVICES PLANNED

1. pagers

2. voice

3. fax

4. e-mail

5. data transmission

6. internet access

7. video

8. digital tracking for transportation management and

9. environmental monitoring

10. Supervisory Control and Data Acquisition (SCADA) systems providing remote monitoring

of isolated facilities such as mines, oil refineries etc.

FEATURES

1. Worldwide radio coverage with one personal number

2. Good transmission quality and minimal signal delay

3. Location

4. Authentication and billing facilities

5. Data protection

6. Small, lightweight handset at a reasonable cost

7. Charges of the same order as terrestrial network tariffs.

Page 42
POTENTIAL USERS

1. marine communications;

2. aviation communications;

3. "High-income" business travelers;

4. Professionals, especially in regions with inadequate telecom infrastructure;

5. Organizations and professional groups employed in disaster relief work;

6. International travel organizations and

7. Users in locations which cannot economically be provided with terrestrial networks.

Page 43
6. VERY SMALL APERTURE TERMINALS (VSAT)

A very small aperture terminal (VSAT) is a two-way satellite ground station with a dish

antenna that is smaller than 3 meters. The majority of VSAT antennas range from 75 cm to 1.2

m. Data rates range from 4 kbit/s up to 16 Mbit/s. VSATs access satellites in geosynchronous to

relay data from small remote earth stations (terminals) to other terminals (in mesh topology) or

master earth station "hubs" (in star topology).

VSATs are used to transmit narrowband data (e.g., point-of-sale transactions using credit cards,

polling or RFID data, or SCADA), or broadband data (for the provision of satellite Internet

access to remote locations, VoIP or video). VSATs are also used for transportable, on-the-move

(utilizing phased array antennas) or mobile maritime communications.

Page 44
 CONFIGURATIONS

MOST VSAT NETWORKS ARE CONFIGURED IN ONE OF

THESE TOPOLOGIES:

 A star topology, using a central uplink site, such as a network operations center (NOC),

to transport data back and forth to each VSAT via satellite,

 A mesh topology, where each VSAT relays data via satellite to another terminal by acting

as a hub, minimizing the need for a centralized uplink site,

 A combination of both star and mesh topologies. Some VSAT networks are configured

by having several centralized uplink sites (and VSAT stemming from it) connected in a

multi-star topology with each star (and each terminal in each star) connected to each

other in a mesh topology. Others configured in only a single-star topology sometimes will

have each terminal connected to each other as well, resulting in each terminal acting as a

central hub. These configurations are utilized to minimize the overall cost of the network,

and to alleviate the amount of data that has to be relayed through a central uplink site (or

sites) of a star or multi-star network.

CONSTITUENTS PARTS OF VSAT CONFIGURATIONS

 Antenna

 Block up converter (BUC)

 Low-noise block down converter (LNB)

 Orthomode transducer (OMT)

 Interfacility link cable (IFL)

 Indoor unit (IDU)

Page 45
All the outdoor parts on the dish are collectively called the ODU (Outdoor Unit), i.e., OMT to

split signal between BUC and LNB. The IDU is effectively a modem, usually with Ethernet port

and 2 x F-connectors for the coax to BUC (Transmit) and from LNB (Receive). The

Astra2Connect has an all-in-one OMT/BUC/LNA that looks like a Quad LNB in shape and size

which mounts on a regular TV satellite mount. As a consequence it is only 500 mW compared

with the normal 2W, thus is poorer in rain. Skylogic's Too way system also uses an integrated

OMT/BUC/LNB assembly called transmits and receives integrated assembly (TRIA), which is

3W.

Page 46
7. MOBILE VALUE ADDED SERVICES

A value-added service (VAS) is a popular telecommunications industry term for non-core

services, or in short, all services beyond standard '''voice call''s and '''fax' 'transmissions.

However, it can be used in any service industry, for services available at little or no

cost to promote their primary business. In the telecommunications industry, on a conceptual

level, value-added services add value to the standard service offering, spurring the subscriber to

use their phone more and allowing the operator to drive up their ARPU. For mobile phones,

technologies like SMS, MMS and data access were historically usually considered value-added

services, but in recent years SMS, MMS and data access have more and more become core

services, and VAS therefore has begun to exclude those services.

Page 47
MOBILE VAS SERVICES CAN BE CATEGORIZED INTO

1. Consumer VAS

2. Network VAS

3. Enterprise VAS

A distinction may also be made between standard (peer-to-peer) content and premium-charged

content. These are called mobile value-added services (MVAS) which are often simply referred

as VAS.

Value-added services are supplied either in-house by the mobile network operator themselves or

by a third-party value-added service provider (VASP), also known as content provider (CP)

such as All Headline News or Reuters.

VASPs typically connect to the operator using protocols like Short message peer-to-peer

protocol (SMPP), connecting either directly to the short message service centre (SMSC) or,

increasingly, to a messaging gateway that gives the operator better control of the content.

MAJOR VALUE ADDED SERVICES ARE

1. Mobile TV & OTT services

2. Ring back tone (RBT & RRBT)

3. SMS Chatting & Dating Premium Services

4. Tracks Play, download and ring tones and Infotainment Services

5. Location-based services

6. Missed call alerts and Voicemail box

Page 48
7. Online gaming

8. Live streaming

9. Devotional applications

10. Mobile money & M-commerce based services

11. Mobile advertising

12. Contests & Voting

13. Phone backup and Security Services

14. Dialer Services

15. WAP content downloads

16. Utility Services

Page 49
 IDENTIFICATION OF THE PROBLEM

A lot of brands of Mobile Phone are available in the market. But the consumers prefer a

particular brand of Mobile Phone. In the modern business world, due to the development of

science and technology, many new brands have been introduced in the market every year.

Page 50
CHAPTER - II

Page 51
INTRODUCTION OF THE TOPIC

BRAND PREFERENCES IN SMART PHONES

With the widespread innovations in the communication technology, people are shifting from

their basic phones to the smart phone technology. Nowadays, many manufacturers are tapping

this potential market which has created a lot of choice availability for the customers. This paper

focuses on the consumer preference towards smart phone brands. One of the major factors for

selecting a smart phone is the Operating System (OS). Android, after its introduction, has

captured more than half of the market share of the OS market which earlier was held by

Zambian, iOS and Blackberry. Therefore, android is being taken as a special reference for

knowing the smart phone brand. This paper studies the consumer preference towards various OS

and preference towards a smart phone brand with android as its OS. A quantitative study on 300

respondents was carried out in Ludhiana region. The collected data was analyzed with

descriptive statistics, Chi-Square, Friedman test and Kendall's W-test. The study found that

android and iOS are the most preferred OS, while Samsung is the highest preferred brand to be

selected for an android platform. The price, screen size and RAM size are the most important

attributes while choosing the smart phone brand.

Smartphone is a mobile phone that is able to perform many functions of a computer, typically

having a relatively large screen and an Operating System (OS) capable of running general

applications (Oxford Dictionary, 2016). A smart phone is a mobile phone which has got advance

capabilities beyond short messaging service and making calls. Displaying photos, playing videos,

checking and sending e-mails, and surfing the Web are some of the functionalities of a smart

phone. Though used by businessmen, smart phones have now become a common choice.

Advancements in technology have made modern smart phones cheaper, slimmer and smaller

Page 52
than earlier devices. Also, users can now choose from a wider range of smart phones than before.

While Blackberry, Apple and Nokia controlled the smart phone market for several years, other

manufacturers like HTC, Sony, Lenovo, LG and Samsung, etc. are also present in the market

with a large variety of smart phone options. Increased availability of smart phones has led to a

resultant decline in the usage of standard Personal Digital Assistants (PDAs), which do not

include phone capabilities. India is the second largest mobile handset market in the world (after

China), and is poised to become an even larger market. Revenues of the Indian mobile handset

market grew by 15% to touch US$6.75 bn in 2016-17 from US$5.88 bn a year back (IS

Advisors, 2016). In the next five years, the revenue share of smart phones in the mobile handset

market is expected to rise steadily, as an increasing number of participants are targeting this

space for higher margins. This trend is likely to persist, as numerous handset manufacturers are

strategizing to deploy more smart phone models in their portfolio (Frost and Sullivan, 2011). The

urban markets matured in terms of feature phone usage, and numerous mobile users in this

demographic are looking to upgrade to a smart phone. This replacement market will be

predominantly populated by the younger demographic, who are early adopters of technology,

and this could see the market revenues soar from 255.91 bn in 2010 to 350.05 bn in 2016 (Frost

and Sullivan, 2011). One of the most important factors while going for a smart phone is its OS,

which helps in running the operations and applications on the smart phone. Historically,

Symbian was the first modern operating system that was launched by Ericsson, but later on many

competitors started emerging, namely Blackberry, iOS and Android. Android soon captured the

major market share in OS. The reasons for its success were its open source nature, its availability

at low-cost and the availability of varieties in smart phone hardware and brands.

Page 53
 RESEARCH METHODOLOGY

INTRODUCTION

This chapter presents the research methodologies adopted for the research. A combination of

both qualitative and quantitative methodological approaches was adopted by the researcher in

order to attain a realistic result from the research. Specifically, the chapter discusses the range of

methods used by the researcher for the research, research philosophy, research strategy and

research methods used to gain data and data analysis.

Page 54
RESEARCH PHILOSOPHY

Research philosophy is about the system in which the research problem should be fundamentally

approached, and this includes: positivism, realism and interpretive.

POSITIVISM

The roots of positivism lie particularly with empiricism, which works with observable facts. The

basic philosophy behind positivism is that, all factual knowledge is based on the positive

information gathered from observable experience, and that any idea beyond this realm of

demonstrable fact is metaphysical. Only analytic statements are allowed to be known as true,

through reason alone.

INTERPRETIVISM

Is a view that believes that the world and reality are not objective and external, but are socially

constructed and given meaning by people? This view is usually referred to as the qualitative

approach and is based on an inductive procedure.

REALISM

Saunders et al (2003) defines realism that is based on the belief that a reality exists that is

autonomous of human thoughts and beliefs, and that can influence their perceptions either

consciously or unconsciously. Management and Business research is often a mixture between

positivist and interpretive, perhaps reflecting the stance of realism.

Page 55
The research issues will try to find out, the extent of employee involvement in the

implementation of Total Quality Management (TQM) in PZ Industries (NIG.). What they do

well or not in this regard. Thus, the research philosophy is interpretive rather than positivism.

Deciding which research method will be adopted depending on what research philosophy is

adopted is relevant in a research. For positivism, a deductive process involves the development

of a conceptual and theoretical standpoint prior to its testing through empirical observation while

for interpretive, it involves an inductive procedure which is the reverse of deductive process.

Interpretive involves reflecting on recent and past experiences. Realism accommodates the use of

both deductive and inductive processes.

Page 56
RESEARCH STRATEGY

A research strategy is the plan for the researcher to carry out his research. The main research

strategies include experiment, survey and case study etc. The chosen research strategy for this

research is the case study.

According to Davies, case study is the development of detailed, intensive knowledge about a

single case, or a small number of related cases. The advantages of using case study include: the

detailed observations surrounding the case study method, allow us to study many different parts,

scrutinize them in relation to each other, view the process with its total environment and also

utilize the researcher’s capacity for versatility. As a result, case study provides us with a greater

prospect than other available methods to obtain a holistic view of a specific research; this is not

to say that researches based on case study have no shortcomings.

A common criticism of case study is that it provides a limited basis for the traditional “scientific

generalization”.

Page 57
 RESEARCH DESIGN AND METHODOLOGY

1. Sample Size - 60 respondents

2. Sample Unit - Customers

3. Sampling Area – Nawabganj

4. Sampling Technique - Random Sampling technique

5. Research Design - Descriptive research.

6. Data collection: Primary data and Secondary data.

Page 58
 RESEARCH DESIGN

 Visited the market of NAWABGANJ & gathered information required as per the

questionnaire.

 The research design is probability research design and is descriptive research.

Page 59
 DATA COLLECTION

1. PRIMARY DATA

Primary data is any data which has obtained ‘first-hand’ from its original source as part of the

‘applied’ aspect of his research. It therefore, does not include any data previously gathered by

anyone else.

HENCE, PRIMARY DATA SOURCES INCLUDE:

a) Individual enquiry in the form of observation

b) Conversations

c) Questionnaires

d) Interviews etc.

For this study, interview and questionnaire had been used for collecting the primary data.

2. SECONDARY DATA

Secondary data is that which has not been responsible for gathering ‘first-hand’. It therefore

includes all the data gathered by someone else and presented in a variety of forms, such as

journal articles, reports, archive materials, companies annual reports, newspapers and magazines,

conference papers, internet and books etc.

Page 60
QUESTIONNAIRE

Questionnaires are one of the most widely used data collection strategy. It provides an efficient

way of collecting responses from a large sample prior to quantitative analysis, because each

respondent is asked to respond to the same set of questions. Questionnaires can be associated

with both positivism and interpretive approaches of research. The response rate, the reliability

and validity of data collected are two key criteria to a good questionnaire.

According to Davies, three main techniques exist in exploring peoples’ opinion and attitudes.

THESE INCLUDE:

CLOSED QUESTIONS

The respondent is required to select between a limited numbers of answers.

OPEN-ENDED QUESTION

The participant is allowed to use his discretion in providing any answer to the questions and it’s

either written down, verbatim or the researcher is armed with a list of probable pre-determined

responses.

SCALES

Limited choice of answers has been chosen to measure an attitude, an intention or some aspect

of the participant’s behavior. The key to designing scalar questions is to decide on what should

be measured and then to select the relevant attributes by which they can be rated.

In this study, closed questions and scalar questionnaire will be used. (Explain why you used it

properly in your words & opinion)

Page 61
Questionnaire design is important to quantitative data collection. Most of the style of the

quantitative method is attitude scaling.

ADVANTAGES

The advantages of choosing questionnaire method are time saving for participants and guarantee

the accuracy of questionnaires, because the pattern of questions are the same .The next stage is to

identify the number of sample. The questionnaire will be designed with 20 questions in four A4

papers (because……………….).

Page 62
DATA ANALYSIS

AND

INTERPRETATION

Page 63
Q- 1) SEX RATIO OF THE RESPONDENTS?

TABLE – 1

PARTICULAR NUMBER %AGE

Males 40 47

Female 45 53

GRAPH – 3

Page 64
INTERPRETATION
The graphical representation of the table shows that out of the 85 Respondents, 40 were male and
45 were female.

Q- 2) OCCUPATION OF THE RESPONDENTS’ FAMILY?

TABLE – 2

PARTICULAR NUMBER %AGE

Service 15 17
Professional 20 24
Business 22 26
Others 28 33
Total 85 100
GRAPH - 4

Page 65
INTERPRETATION

The graphical representation of the table shows that out of the 85 respondents, 15 respondents

belong to the service family, 20 were from business, 22 were from the professional and 28 were

from the others family.

Q- 3) INCOME LEVEL OF THE RESPONDENTS?

TABLE – 3

PARTICULAR NUMBER %AGE

Below 10, 000/- 19 23

Bet. 10,000/- -25,000/- 49 57

Above 25,000/- 17 20

TOTAL 85 100

Page 66
 GRAPH - 5

INTERPRETATION

The graphical representation of the table shows that out of the 85 respondents, 19 respondents

were from the family whose income is less than 10,000/-, 49 respondents were from the family

whose income is between the 10,000/- – 25,000/-, 17 respondents were from the family whose

income is above 25,000/- .

Page 67
Q- 4) EDUCATIONAL BACKGROUD OF THE RESPONDENT’S

PARENTS?

TABLE – 4

PARTICULAR NUMBER %AGE

21 25
High School

Intermediate 19 22

Graduate 18 21

Post graduate 15 18

Other 12 14

TOTAL 85 100

Page 68
 GRAPH - 6

INTERPRETATION

The graphical representation shows that out of the 85 respondents, 15 respondent’s parents are

post graduate, 18 respondent’s parents are graduate, 21 respondent’s parents are high school, 19

are intermediate and 12 have others educational background.

Page 69
Q- 5) WHICH MOBILE PHONE YOU ARE USING?

TABLE – 5

NAME OF SMART NUMBERS %AGE

PHONES

Nokia 18 21

Samsung 45 53

Micromax 16 19

Others 6 7

TOTAL 85 100

Page 70
 GRAPH – 7

INTERPRETATION

Out of the 85 respondents, 18 are using the Nokia phones, 45 are using the Samsung, 16 are

using the Micromax , and 6 are using the Others.

Page 71
Q- 6) HOW LONG YOU ARE USING THE MOBILE PHONES?

TABLE – 6

TIME PERIOD OF NUMBERS %AGE

SMART PHONES

Less than 1 year 19 22

1-2 years 33 39

2-4 years 10 12

Above 4 years 23 27

TOTAL 85 100

Page 72
 GRAPH - 8

INTERPRETATION

Out of the 85 respondents 19 are using for less than year, 33 are using for 1-2years, 10 are using

for 2-4 years, 23 are using for above 4 years.

Page 73
Q-7) HOW OFTEN DO YOU CHANGE YOUR MOBILE PHONE?

TABLE – 7

FREQUENCY OF

CHANGING THE
NUMBERS %AGE
SMART PHONES

Less than 1 year 20 24

1-2 years 41 48

2-4 years 19 22

Above 4 years 5 6

TOTAL 85 100

Page 74
 GRAPH - 9

INTERPRETATION

Out of the 85 respondents 20 are using for less than year, 41 are using for 1-2years, 19

are using for 2-4 years, 5 are using for above 4 years.

Page 75
Q-8) WHAT WILL YOU BE WILLING TO PAY FOR A MOBILE

PHONE BY RESPONDENTS?

TABLE – 8

PARTICULAR NUMBER %AGE

Below 10, 000/- 22 26

Bet. 10,000/- -25,000/- 47 55

Above 25,000/- 16 19

TOTAL 85 100

Page 76
 GRAPH - 10

INTERPRETATION

The graphical representation shows that out of the 85 respondents, 22 respondents were willing

to spend less than 10,000/- , 47 were willing to spend between 10,000/- to 20,000/-, 16 were

willing to pay above 25,000/-.

Page 77
Q-9) CONSIDERS THE TV ADVERTISEMENT YOU LIKE

MOST WHAT BRAND IS IT PROMOTING BY RESPONDENTS.

TABLE – 9

PARTICULARS NUMBERS %AGE

Nokia 10 12

Samsung 25 29

Micromax 13 15

LG 9 11

Iphone 22 26

Others 6 7

TOTAL 85 100

Page 78
 GRAPH - 11

INTERPRETATION

Out of the 85 respondents, 10 like the Nokia advertisement most, 25 like the Samsung, 13 like

the Micromax, 9 like the LG, 22 like the Iphone and rest like others.

Page 79
FINDINGS

 Samsung is the most favorite brand of the college student.

 41% student change their mobile phones within 1 to 2 years

 41% students are using the mobile phones since last 1 to 2 years.

 49% students are ready to pay for a mobile phone between 10,000/- to 25,000/- and they

spend according to their family income.

 22% students like the Nokia advertisement most.

 Mostly people use the mobile phones for talking, SMS and for using the GPRS function.

 Mostly students have hands free, bluetooth, camera and memory card.

 Almost all are aware about the GPRS, Bluetooth and service but least students are aware

about the 3G function.

 Most favorite brand among the college students is Samsung and the least favorite brand is

LG.

 Appearance, Price, Brand Image and advertisement are the important factors for the people

while purchasing mobile phones.

 Mostly students prefer slim, medium in weight and large in size handset

 Mostly students see advertisement on television.

 Story, spokesperson and the music are the important factor in advertisement.

 Mostly students have the hanging and service problem with the Nokia.

 Smartphone’s with 3 GB ram are mostly preferred by the people.

 We are becoming "all-knowing, always-connected beings"² that want information - fast.

Page 80
 Smartphone’s are paving the way for a future generation that demands instant gratification

and versatility from mobile devices.

 Smartphone’s are a great learning tool for college students - but only when used

appropriately. Having the Internet always on-hand provides a temptation to cheat on tests.

Therefore, students will have to learn to practice ethics and set boundaries for themselves, in

order to handle these types of situations.

Page 81
 CONCLUSION

Smartphone’s are clearly impacting society and say a great deal about what we - the consumers -

want from our technology. But to categorize the smart phone’s effects into positives and

negatives, benefits and consequences, is not the correct way to approach looking at this cultural

phenomenon. The smart phone perception varies, and therefore this relatively new technology is

received and interpreted in many different ways, by many different people. For instance,

someone who is not easily distracted may not mind having a smart phone and using it only when

they need to. Meanwhile, a person who is easily distracted may find the smart phone is

interrupting their work time, their study time, and even time spent in personal relationships. It all

depends on what kind of person you are, and what technology you are capable of handling.

The use of mobile banking has increased substantially in the past year and appears likely to

continue to increase as more consumers use smart phones or recognize the convenience of this

service, and as more financial institutions offer mobile banking. The use of mobile phones to

make payments at the POS has increased substantially in each of the past two years. Indeed,

nearly one in five smart phone owners report making a POS payment with their mobile phone in

the past 12 months, and a similar number indicate that they are likely to do so in the coming 12

months. In addition, more than a quarter of mobile phone users express some interest in using

their phones to make payments at the POS. Thus, mobile payments appear likely to have

substantial growth potential as more retailers and businesses are able to accept them at the POS.

The main factors limiting consumer adoption of mobile banking and payments are security

concerns and the belief by some that these services fail to offer any real benefits to the user over

existing methods for banking or making payments.

Page 82
In terms of the value proposition to consumers, the significant number of mobile users who

reported an interest in using their phones to receive discounts, coupons, and promotions or to

track rewards and loyalty points suggests that tying these services to a mobile payment service

would increase the attractiveness of mobile phones as a means of payment.

However, consumers will need to understand and weigh the benefits and potential risks to their

security and privacy presented by the use of this new technology.

Page 83
 RECOMMENDATION

 Nokia should provide better service and try to solve the hanging problem

 Cellular companies should increase the awareness about the 3G service.

 Companies should offer more range of Rs. 10,000 or less than 10,000.

 LG should try to expand its market share and also should try to increase the awareness

through the television advertisement.

 All companies should increase their distribution channel.

 The companies should continue to work on the Strategy of T.Q.M (Total Quality

Management)

 Consumers do not get satisfied with the promotional policies of the companies.

 New techniques of promotion are required to create awareness about the entire range of

company’s products.

 Pick a phone, check specification and price, compare the phone with other phones on our list,

click on e-commerce link and make a purchase.

Page 84
 LIMITATIONS

 A small sample size of 60 customers is taken, so we cannot draw inferences about the

population from this sample size.

 Time period is short and resource constraints.

 The scope of the project is limited to the city of Kanpur. So, we cannot say that the same

response will exist throughout India.

 This study is based on the prevailing customer’s satisfaction. But the satisfaction may

change according to time, fashion, technology, development, etc.

Page 85
 BIBLIOGRAPHY

 https://www.shoretel.com/history-telecommunication

 http://www.historyworld.net/wrldhis/PlainTextHistories.asp?groupid=1457&HistoryID=aa93

&gtrack=pthc

 https://www.dnb.co.in/IndianTelecomIndustry/industrystructure.asp

 https://www.google.co.in/search?q=growth+of+internet+in+the+year+from+2014+2015&esp

v=2&biw=1360&bih=661&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahUKEwiisOuquJ

3MAhVGEpQKHUw0AQAQsAQILg&dpr=1#imgrc=PznP9AD8nyduFM%3A

 http://www.dot.gov.in/sites/default/files/u10/List%20of%20existing%20PMRTS%20license

%20as%20on%2031.07.2015.pdf

 https://www.google.co.in/search?q=5.+Global+Mobile+Personal+Communication+by+Satell

ite+(GMPCS)&oq=5.+Global+Mobile+Personal+Communication+by+Satellite+(GMPCS)&

aqs=chrome..69i57.840j0j4&sourceid=chrome&ie=UTF-8

 https://en.wikipedia.org/wiki/Very-small-aperture_terminal

 https://en.wikipedia.org/wiki/Value-added_service

 http://www.weatherford.com/en/products-services/drilling-formation-evaluation/wireline-

services

Page 86
 https://www.google.co.in/search?q=MOBILE+VALUE+ADDED+SERVICES&biw=1360&

bih=661&espv=2&source=lnms&tbm=isch&sa=X&ved=0ahUKEwje77mttZ_MAhVjL6YK

HaYBDb8Q_AUIBigB&dpr=1

 https://www.questia.com/library/journal/1P3-3519077521/consumer-preference-towards-

smartphone-brands-with

Page 87
QUESTIONNAIRE

Page 88
 SECTION - A

PERSONAL INFORMATION

1. NAME:

2. (a) AGE:

(b) GENDER

Male

Female

3. OCCUPATION OF FATHER

Service

Professional

Business

Others Specify

4. INCOME LEVEL (PER MONTH)

Below 10,000

Between 10,000/- – 25,000/-

Above 25,000/-

Others

5. EDUCATIONAL BACKGROUND ( PARENTS)

High School

Intermediate

Graduate

Post Graduate

If Other Specify

Page 89
 SECTION – B

ABOUT MOBILE PHONES

1. WHICH MOBILE PHONE YOU ARE USING?

Nokia

Samsung

LG

Iphone

Others

SPECIFY

2. PLEASE WRITE THE MODEL OF YOUR PHONE?

3. HOW LONG YOU ARE USING THE MOBILE PHONE?

Less than 1 year

1 – 2 years

2 – 4 years

Above 4 years

Page 90
4. WHAT ARE THE REASONS FOR USING THE ABOVE
MENTIONED MODEL?

Just to talk on it

Use GPRS function

Receive Email & SMS

Down Load Files

Others

SPECIFY

5. HOW OFTEN DO YOU CHANGE YOUR MOBILE PHONE?

Less than 1 year

1 – 2 years

2 – 4 years

Above 4 years

6. WHAT PHONE ACCESSORIES DO YOU HAVE?

Hands free

Bluetooth Head Set

USB Data Cable

Memory Card (SD Card)

Others

SPECIFY

Page 91
7. LATEST MOBILE FACILITIES WHICH YOU ARE AWARE

OF?

(Can Tick Multiple Boxes Of The Facilities You Know.)

4G

GPRS

Wifi hotspot with multi sharing

VIDEO CALL

Others

SPECIFY

8. WHAT IS YOUR FAVOURITE BRAND IN MOBILES?

(Please choose your 3 favorite brands in order of preference from the brands in the table

below.)

1 2

Nokia

Samsung

LG

Panasonic

Iphone

Micromax

Others

Page 92
 SPECIFY

9. WHY YOU LIKE THE BRANDS YOU CHOSE ABOVE?

(Please indicate the important of below factors when you choose the brands.

1-very important, 2-somewhat important, 3-neither important nor unimportant, 4-

less important, 5- unimportant.)

1 2 3 4 5

Advertisement

Appearance

Price

Functions

Quality

Brand Image

Service

Recommended by friends

Others

SPECIFY

Page 93
10. DO YOU PREFER PHONES TO BE?

Slim or medium or thick

Light or medium or heavy

Small or medium or large

Others

SPECIFY

11. WHAT WOULD YOU BE WILLING TO PAY FOR A

MOBILE PHONE?

Less than 10,000

10,001 to 20,000

20,001 to 40,000

Others

SPECIFY

Page 94
12. WHERE DID YOU OFTEN SEE THE MOBILE

ADVERTISEMENT?

TV

Magazine

Outdoor

News Paper

Online

Others

SPECIFY

Page 95
13. WHICH OF THE FOLLOWING WOULD IMPRESS YOU

THE MOST?

(Please indicate the important of below factors when you choose the brands.

1- very important, 2-somewhat important, 3-neither important nor unimportant, 4-

less important, 5- unimportant.)

1 2 3 4 5

Slogan

Picture

Color

Story

Spokesperson

Music

Others

Recommended by

Friends

Others

SPECIFY

Page 96
14. ARE THERE ANY GENERAL COMMENTS YOU WOULD

MAKE ABOUT WHAT YOU LIKE/DISLIKE ABOUT

MOBILE PHONES?

(THIS COULD BE PRICING, LOCATION OF SALES, RECEPTION, COLOUR,

MEMORY, OR ANYTHING ELSE.)

Page 97