Report

On

“How to increase market share in wireless broadband market and increasecustomer retaintivity”

For

TATA TELESERVICES LIMITED (TATA DOCOMO)

Submitted By:-

Sumersingh Singh Rajput

Term-3rd

Roll No. 58

Submitted In partial fulfillment of requirement of PGDM program at St. KabirInstitute of professional studies (SKIPS)

Under Supervision of

Dr. Raashid Saiyed

Professor

St. Kabir Institute of professional studies (SKIPS)

Duration: 1th May to 30th June 2012

Declaration

I, Sumersingh Rajput do here by declare that the research project “How to increase marketshare in wireless broadband market and increase customer retaintivity” is an original work.The content of this report regarding finding have not been published before and reflect thework done by me during my summer internship from 1st May 2012 to 3oth June2012 with TataTele service Ltd ( Tata DoCoMo), Ahmadabad.

Place: Ahmadabad, Gujarat Sumersingh Rajput

______________

Student at st.kabir institute of professional studies

Batch: 2011-2013

AcknowledgementAs a part of curriculum at St.kabir institute of professional studies, the “Summer internshipProgram “aims at overall development of the students by providing them an opportunity togain corporate exposure and space to apply their theoretical knowledge in practice in amutually beneficial manner. No summer internship can be successful without the support ofthe people who keep themselves closely involved with the student undergone the program.The wealth of knowledge and guidance shared and provided by these professional is invaluable

I have given my all dedication to this project and have been able manage all of thing asprofessional. However, it would not have been possible without the kind support and help ofmany individuals from industry and organizations. I would like to extend my hearties Gratitudeto all of them.

I would like to express my gratitude toward Faculty guide Dr. Raashid Saiyed (Professor-Marketing) and also to Dr. Shantanu Mehta (director at St.kabir) for their kind co-operation andencouragement which help me in completion of this project.

I would like express my hearties Gratitude to my organizational guides Mr. Chirantan Sharma(Assistant manager-product development) and Mr. Amit.N.Thakker at Tata Teleservices Limitedfor their guidance and constant supervision even though they are having their own many workthey give their time and attention and providing necessary information regarding the project. Itwas privileged to work at TTSL under their supervision.

Regards,

Sumersingh Rajput

Student at St.kabir institute of professional studiers

I

Table of Contents

Executive summery……………………………………………………………………………...V

Chapter 1-Introduction…………………………………………………………………….........1

1.1 Brief introduction of the problem under study of wireless broadband industry………………1

1.2 Types of broadband……………………………………………………………………………3

1.3 About the company……………………………………………………………………………6

1.4 Global broadband subscribers…………………………………………………………………8

1.5 Region-wise Broadband market share global…………………………………………………8

1.6 Top 10 broadband and internet operators and their market share in India……………………9

1.7 Broadband Subscribers in India……………………………………………………………...11

1.8 Broadband Access - Technologies & Market Share in India………………………………...12

Chapter 2- Objective and methodology…………………………………………………….…13

2.1 Brief introduction of research………………………………………………………………..13

2.2 Research objective…………………………...………………………………………………14

2.3 Methodology………………...……………………………………………………………….15

2.3.1 Primary Data……………………………………………………………………….15

2.3.2 Secondary data……………………………………………………………………..16

Chapter 3- Data interpretation and Analysis…………………………………………………17

3.1 Competitive benchmarking…………………………………………………………………..17

3.1.1Tariff plans –prepaid category……………………………………………...17 Monthly………………………………………………………………......17 90 days packs…………………………………………………………….18 180 days packs…………………………………………………………...18 365 days Packs…………………………………………………………...18 Small Validity Packs & Top Ups……...…………………………………19

3.1.2Tariff plans -Postpaid Plan………………………………………………….19

II

Monthly plan……………………………………………………………..19 ARP Plan ………………………………………………………………...20

3.1.3Entry cost of Device (USB Dongle)………………………………………..20

3.2 Customer requirement Vis a Vis product offered in market…………………………………22

3.3 Drivers for consumer to buy USB Stick……………………………………………………..25

3.4 Reasons for churn (For Tata Photon Plus)…………………………………………………...26

3.4.1Churn category……………………………………………………………...26 3.4.2 Voluntary Churn…………………………………………………………...26 3.4.3 Involuntary churn..........................................................................................28 3.4.4 Importance of various factors while buying broadband services…………..28 3.4.5 Satisfaction from Tata photon plus………………………………………...29

Chapter 4- recommendations and conclusion………………………………………………...30

4.1 Key findings………………………………………………………………………………….30

4.1.1For competitive benchmarking……………………………………………………..30

4.1.2 For customer requirement Vis-Vis product offered in market……………………..30

4.1.3 For Key drivers to buy USB-Stick…………………………………………………31

4.1.4 For Reason to churn………………………………………………………………..31

4.2 Conclusion…………………………………………………………...………………………32

4.2.1For competitive benchmarking……………………………………………………..32

4.2.2 For customer requirement Vis-Vis product offered in market……………………..32

4.2.3 For Key drivers to buy USB-Stick……………………..…………………………..32

4.2.4 For Reason to churn…………………………..……………………………………32

4.3 Recommendation…………………………………………………………………………….33

Glossary…………………………………………………………………………………………34

Bibliography ……………………………………………………………………………………35

Annexure………...………………………………………………………………………………36

Questionnaire 1 –Regarding Reason for churn (Telephone –Interview)………..….....................36

III

Questionnaire 2- Regarding survey of Use of USB-DONGLE……………...…………………..36

List of Tables

Table 1: Top 10 broadband and internet operators and their market share in India………………9

Table 2: Monthly prepaid plans………………………………………………………………….17

Table 3: 90 day’s packs (prepaid) ……………………………………………………………….18

Table 4: 180 days Packs (prepaid)……………………………………………………………….18

Table 5: 365 days packs………………………………………………………………………….18

Table 6: Small validity Packs & Top Ups……………………………………………………….19

Table 7: monthly plan (post paid)………………………………………………………………..19

Table 8: ARP (Advance rental plan)……………………………………………………………..20

Table 9: Entry cost Of Device (USB dongle)……………………………………………………20

Table-10: voluntary churn Sub-category………………………………………………………...21

List of graph

Graph 1: Regional broadband market share globally…………………………………………..…8

Graph 2: Broadband market share……………………………………………………………….11

Graph 3: Broadband Access - Technologies & Market Share…………………………………...12

Graph-4: Type of Broadband connection used by customers …………………………………...22

Graph 5: frequency of net use……………………………………………………………………22

Graph-6: Data Used by customer……………...…………………………………………………23

Graph-7: Type of Plan…………………………………………………………………………...23

Graph-8: why you use a particular Plan………………………………………………………….23

Graph-9: Purpose of using internet………………………………………………………………24

Graph-10: What they download most……………………………………………………………24

Graph-11: which company’s dongle you use…………………………………………………….25

Graph-12, Reasons to buy USB- dongle…………………………………………………………25

IV

Graph- 13: satisfaction with USB-Dongle Device……………………………………………….25

Graph-14: Different Churn category-Tata Photon plus………………………………………….26

Graph-15: Tata photon plus Voluntary churn……………………………………………………27

Graph- 16: Tata photon Involuntary Churn……………………………………………………...28

Graph-17: Importance of various factors while buying broadband services…………………….28

Graph 18: Satisfaction from Tata photon plus……..…………………………………………….29

List of Figures

Figure 1: Process of customer churn……………………………………………………………....2

V

Executive summeryThis report provides information on “how to increase market share in wireless broadband marketand increase customer retaintivity”. In telecommunication product offering keeps on changing onday by day basis or weekly basis which lead to comparison of tariff plan and this create risk forcompanies of losing customers. And also due technological changes and technological differencewhile using Internet services customers encounter certain problem regarding speed, connectivitywhich again leads to dissatisfaction at the end of customer.

Rob mattison in his book “Telecom churn Management” talks about telecommunication churnand how uncontrollable it is? He said it is unpredictable and impossible to completely remove itbut you can take advantage of it by doing segmentation of your customer base.

Broadly this report will also provide information on reason for churn, Key drivers for consumerto buy USB-Dongle, consumer requirement in terms of data uses and type of plan preferred bythem, and also benchmarking of various companies tariff plan, devices, and retailer’s margin ondevice and tariff plans and what are slabs for them in different category.

This report had been divided in four chapters, first chapter gives information regarding globalbroadband industry, Indian broadband industry, type of broadband, about Tata Tele serviceslimited, Indian Players in broadband market, and new technology to come to broadband industryin near future.

Second chapter is about Objectives of research and methodology used in finding. Third chaptersis about data interpretation and analysis part and is the main part of this report and give readerthe idea about how objectives have been interpreted .

Last chapter no 4 gives Recommendations and conclusion based on data interpreted in Chapterno 3.

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Chapter 1-Introduction

1.1 Brief introduction of the problem under study of wirelessbroadband industry

In the telecommunications industry, churn is the term used to describe customer attrition orloss. There are different types of churn such as voluntary, involuntary and internal. Churn ismeasured in this industry in different ways. Typically it is calculated by dividing disconnectsby the net subscriber base. However, it differs depending at what point of the time period youare measuring (beginning, end or average between the two) and how you define a customer (aline, an account, a phone, etc.). Many operators do not include involuntary anddealer/employee disconnects in their calculations.

Wireless broadband market has changed from rapidly growing market, into a state ofsaturation and fierce competition and this has resulted into losing customers. In the context ofBroadband industry they called it ‘customer churn”.

Customers who switch to competitor are so called Churned customers. Churn preventionthrough churn prediction is the one way to keep the customer in house.

There are different types of churners.

Internal Churn

Internal churn typically refers to those customers that disconnect phone service to move toanother product or payment method. The most common issue in the mobile or wirelessindustry is monitoring and understanding the movement from contract customers to pre-pay.

Involuntary Churn

Involuntary churn refers to customers that are disconnected by the telecom operator, typicallyfor bad debt or fraud reasons. Disconnects for reasons of fraud or non-payment can beanalyzed using modeling and data mining to modify credit policies and qualification models.

Voluntary Churn: Voluntary churn in the telecommunications industry refers to themeasurement of customer disconnects for reasons that are at the customer’s choice (e.g.switching to a competitor, cancelling service, moving, etc.)

What prompts a Customer to Churn????????

Below is the process flow of customer churn which show step by step process which lead tochurning of customers or either retaintivity of customers.

2

Figure 1: Process of customer churn

Retained

Customercontinues using

the serviceYes

Customer terminates

No

IssueResolved?

Customercontinues using

the serviceYes

Intends to Shift /Terminate

NO

Attempts to Retainby Service provider

IssueResolved?

Customercontinues using

Yes

Yes

Repeats his Request/ Complaint

NO

Customer facesproblem related toProduct / Service

Calls Customer CareGets response /

Diverted to Outlet

Satisfied

Customercontinues using

the service

Visits CompanyOutlet

Voices his Request/ Complaint

No

3

1.2 Types of broadband

Broadband includes several high-speed transmission technologies such as:

Digital Subscriber Line (DSL) Cable Modem Fiber Wireless Satellite Broadband over Power lines (BPL)

The broadband technology you choose will depend on a number of factors. These mayinclude whether you are located in an urban or rural area, how broadband Internet access ispackaged with other services (such as voice telephone and home entertainment), price, andavailability.

DSL

DSL is a wireline transmission technology that transmits data faster over traditional coppertelephone lines already installed to homes and businesses. DSL-based broadband providestransmission speeds ranging from several hundred Kbps to millions of bits per second(Mbps). The availability and speed of your DSL service may depend on the distance fromyour home or business to the closest telephone company facility.

The following are types of DSL transmission technologies:

ADSL – Used primarily by residential customers, such as Internet surfers, whoreceive a lot of data but do not send much. ADSL typically provides faster speed inthe downstream direction than the upstream direction. ADSL allows fasterdownstream data transmission over the same line used to provide voice service,without disrupting regular telephone calls on that line.

SDSL – Used typically by businesses for services such as video conferencing, whichneed significant bandwidth both upstream and downstream.

Faster forms of DSL typically available to businesses include:

High data rate Digital Subscriber Line (HDSL); and Very High data rate Digital Subscriber Line (VDSL).

Cable Modem

Cable modem service enables cable operators to provide broadband using the same coaxialcables that deliver pictures and sound to your TV set. Most cable modems are externaldevices that have two connections: one to the cable wall outlet, the other to a computer. Theyprovide transmission speeds of 1.5 Mbps or more.

Subscribers can access their cable modem service by simply turning on their computers,without dialing-up an ISP. You can still watch cable TV while using it. Transmission speeds

4

vary depending on the type of cable modem, cable network, and traffic load. Speeds arecomparable to DSL.

Fiber

Fiber optic technology converts electrical signals carrying data to light and sends thelight through transparent glass fibers about the diameter of a human hair. Fibertransmits data at speeds far exceeding current DSL or cable modem speeds, typicallyby tens or even hundreds of Mbps.

The actual speed you experience will vary depending on a variety of factors, such ashow close to your computer the service provider brings the fiber and how the serviceprovider configures the service, including the amount of bandwidth used. The samefiber providing your broadband can also simultaneously deliver voice (VoIP) andvideo services, including video-on-demand.

Telecommunications providers sometimes offer fiber broadband in limited areas andhave announced plans to expand their fiber networks and offer bundled voice, Internetaccess, and video services.

Variations of the technology run the fiber all the way to the customer’s home orbusiness, to the curb outside, or to a location somewhere between the provider’sfacilities and the customer.

Wireless

Wireless broadband connects a home or business to the Internet using a radio linkbetween the customer’s location and the service provider’s facility. Wirelessbroadband can be mobile or fixed.

Wireless technologies using longer-range directional equipment provide broadbandservice in remote or sparsely populated areas where DSL or cable modem servicewould be costly to provide. Speeds are generally comparable to DSL and cablemodem. An external antenna is usually required.

Wireless broadband Internet access services offered over fixed networks allowconsumers to access the Internet from a fixed point while stationary and often requirea direct line-of-sight between the wireless transmitter and receiver. These serviceshave been offered using both licensed spectrum and unlicensed devices. For example,thousands of small Wireless Internet Services Providers (WISPs) provide suchwireless broadband at speeds of around one Mbps using unlicensed devices, often inrural areas not served by cable or wireline broadband networks.

Wireless Local Area Networks (WLANs) provide wireless broadband access overshorter distances and are often used to extend the reach of a "last-mile" wireline orfixed wireless broadband connection within a home, building, or campusenvironment. Wi-Fi networks use unlicensed devices and can be designed for privateaccess within a home or business, or be used for public Internet access at "hot spots"such as restaurants, coffee shops, hotels, airports, convention centers, and city parks.

Mobile wireless broadband services are also becoming available from mobiletelephone service providers and others. These services are generally appropriate forhighly-mobile customers and require a special PC card with a built in antenna thatplugs into a user’s laptop computer. Generally, they provide lower speeds, in therange of several hundred Kbps.

5

Satellite

Just as satellites orbiting the earth provide necessary links for telephone and televisionservice, they can also provide links for broadband. Satellite broadband is another form ofwireless broadband, and is also useful for serving remote or sparsely populated areas.

Downstream and upstream speeds for satellite broadband depend on several factors, includingthe provider and service package purchased the consumer’s line of sight to the orbitingsatellite, and the weather. Typically a consumer can expect to receive (download) at a speedof about 500 Kbps and send (upload) at a speed of about 80 Kbps. These speeds may beslower than DSL and cable modem, but they are about 10 times faster than the downloadspeed with dial-up Internet access. Service can be disrupted in extreme weather conditions.

Broadband over Power-line (BPL)

BPL is the delivery of broadband over the existing low- and medium-voltage electric powerdistribution network. BPL speeds are comparable to DSL and cable modem speeds. BPL canbe provided to homes using existing electrical connections and outlets. BPL is an emergingtechnology that is available in very limited areas. It has significant potential because powerlines are installed virtually everywhere, alleviating the need to build new broadband facilitiesfor every customer.

6

1.3 About the company

TATA DoCoMo usually referred to as DoCoMo (not to be confused with NTT DoCoMo), isan Indian cellular service provider on the GSM and platform-arising out of the strategic jointventure between Tata Teleservices (subsidiary of Indian conglomerate Tata Group) andJapanese telecom giant NTT DoCoMo (subsidiary of Nippon Telegraph and Telephone) inNovember 2008. It is the country's sixth largest operator in terms of subscribers (includingboth GSM and CDMA)

Tata DoCoMo received a license to operate GSM telecom services in 19 telecom Circles and has beenallotted spectrum in 18 of these circles, under the brand "TATA DoCoMo". Tata DoCoMo launchedGSM services on 24 June 2009. It first launched in South India and currently operates GSM servicesin 18 of 22 telecom circles. It has license to operate in Delhi but has not been allocated spectrum fromthe Government. DoCoMo provides services throughout India. Tata DOCOMO offers both prepaidand postpaid cellular phone services. It has become very popular with its one second pulse especiallyin semi-urban and rural areas.

On 5 November 2010, Tata DOCOMO became the first private sector telecom company tolaunch 3G services in India. Tata DOCOMO had about 42.34 million users at the end ofDecember 2010.

On 20 October 2011, Tata DoCoMo brought its brands - GSM, Photon, and INTERNETTATADOCOMO Walky - under the Tata DoCoMo name. All subscribers to these serviceswere migrated to the DoCoMo brand on 20 October 2011.

Rebranding

On 20 October 2011, Tata DoCoMo brought its brands - CDMA, GSM, Walky (FixedWireless Phone), Photon, INTERNET - under the Tata DoCoMo name. All subscribers tothese services were migrated to the Tata DoCoMo brand on 20 October 2011.

The company’s other brands - Virgin Mobile and T24 - are not part of the rebranding and willretain their names.

TATADOCOMO LTD products have been renamed as below

Tata DoCoMo CDMA Tata DoCoMo GSM Tata DoCoMo Walky Tata DoCoMo Photon Tata DoCoMo Internet

7

VALUES

Fairness through meritocracy. Trust based on Accountability. Tenacity for results.

Pioneering Spirit. Excellence in Execution.

Leadership with Humility

MISSION

“To empower every Indian to connect with the world affordably”

TATA DOCOMO’S ASPIRATION

To be the most loved Tele service brand.

Simplifying & enriching people’s lives. A joyful place to work.

Refreshingly Different Where fresh thoughts set sail

8

1.4 Global broadband subscribers

According to a research from Point topic ltd and broadband forum that the world passed anotherbroadband milestone in Q1 2012 by breaking through 600 million fixed lines worldwide. As at theend of March 2012 there were 612.6 million fixed lines around the world.

This represents a 2.7% growth in the first quarter of 2012 and 11.5% in the 12 months since Q1 2011.This is primarily due to the invigorating addition of markets and countries where penetration is yet toachieve the level of the ‘mature’ countries and allows for faster initial growth.

1.5 Region-wise Broadband market share global

Graph 1: Regional broadband market share globally.

From above Graph1, we can see that Asia is dominating in this entire market and is having amarket share of 43%, than in second position comes Europe with 29% and at third placecomes America with 25% and at fourth comes Middle East and Africa.

43%

3%

29%

25%

Regional broadband market share2012 Quarter 1

Asia

Middle East and Africa

Europe

America

9

1.6 Top 10 broadband and internet operators and their marketshare in India

As per the data on TRAI’s websites India has more than 20 million Internet subscribers.BSNL holds 56.94 percent of the market share with subscriber base of 11.95 million Internetsubscribers at the end of September 2011 as against 11.63 million at the end of June 2011.(Below in table subscriber base and market share is given)

Table 1: Top 10 broadband and internet operators and their market share in India

Reliance Communications is at second position (2.68 million) followed by MTNL (2.48million).

DSL (Digital Subscriber Line) is the most preferred technology used by the Service Providersto provide Broadband Services and it constitutes 86 percent of total broadband subscribers,followed by Cable Modem Technology (7 percent) and Ethernet LAN (4 percent).

The total revenue of the Internet services has increased to Rs 2,664.78 crore for the quarterending September 2011 as compared to Rs 2,350.34 crore for the quarter ending June 2011,showing an increase of 13.38 percent.

100 percentGrand total 20992404

Total of Top 10 ISPs 19853430 94.57 percent

Others 1138974 5.43 percent

A All india 157862 0.75 percent

B Kerala 114200 0.54 percent

A All india 237055 1.13 percent

B Andhrapradesh

158184 0.75 percent

360950 1.72 percent

A All india 301513 1.44 percent

2477200 11.80 percent

A All india 1412317 6.73 percent

11954042 56.94 percent

A All india 2680107 12.77 percent

Tikona Digital Networks Pvt Ltd

Beam Telecom Pvt. Ltd.

Tata Communications Internet ServicesLimited

Asianet Satellite Communications Ltd.

A All india

B Delhi/Mumbai

A All india

7

8

9

10

Bharat Sanchar Nigam Ltd.

Reliance Communications InfrastructureLimited

Mahanagar Telephone Nigam Ltd.

Bharti Airtel Ltd.

Hathway Cable & Datacom Pvt. Ltd.

You Broadband & Cable India Pvt. Ltd.

1

2

3

4

5

6

Internet SubscriberBase & Market

share of top 10 ISPsISP Category

ServiceArea

Subs Share (percent)

10

Total minutes of usage (MOU) for Internet telephony recorded sharp increase from 191.77million in June 2011 to 194.36 million in September 2011.

Maharashtra is having largest Internet (<256 Kbps) and Broadband (>=256 Kbps) subscriberbase in the country. Tamil Nadu is at second place in internet and broadband subscriber base.

At the end of September 2011, in all the top 10 states, the number of broadband subscribers ismore than the number of Internet subscribers.

42.79 percent of total wireless subscribers base are capable of Accessing DataServices/Internet at the end of September 2011 as against 40.70 percent at the end of previousquarter.

11

1.7 Broadband Subscribers in India

Broadband (≥ 256 Kbps download)

As per the report released by TRAI on 27th June 2012, there is increased in total Broadbandsubscriber base. It has increased from 13.79 million at the end of March 2012 to 13.95million at the end of April 2012, there by showing a monthly growth of 1.13%. Yearlygrowth in broadband subscribers is 15.04% during the last one year (April 2011 to April2012).

Graph 2: Broadband market share

As on 30th April 2012, there are 156 Internet Service Providers (ISPs) which are providingbroadband services in the country. Top three ISPs in terms of market share (based onsubscriber base) Shown in figure 1 are: BSNL (9.00 million), Bharti Airtel (1.36 million) andMTNL (1.05 million).

BSNL65%Bharti

10%

MTNL7%

Others18%

Broadband Market Share

Data source:TRAI

12

1.8 Broadband Access - Technologies & Market Share in India

In broadband access there are different technologies used to provide internet accessibility toend user. Below in Figure 2, there are shown market share of various technology based onsubscriber based info provided on the website of Telecom Regulatory Authority of India.

Graph 3: Broadband Access - Technologies & Market Share

Here you can see the major portion of the broadband access is covered by the DSLtechnology consisting 86% of total subscribers, then wireless and Ethernet/Lan market sharescomes to 3% and 4% and remaining less than 1%.

86%

3% 4%7%

0.23% 0.27%

0.03%

Broadband Access - Technologies & Market Share

DSL

Wireless

Eithernet/Lan

Cable modem

Fibre

leased Line

others

13

Chapter 2-Objective and methodology

2.1 Brief introduction of research

This research was undertaken to find how to increase market share in broadband wirelessindustry and increasing customer retaintivity for “TATA TELESERVICE Limited”.

To increase market Share Company need to have strong customer base that use their servicecontinuously and also company need to get new customers. Due to high competition in this industrycompanies cannot play price games because it leads to price wars and that not good for companies ifthey low down price, revenue will be less and if they raise their price they will end up losingcustomers. For that reason companies need to provide better service to win their loyalty rather thanplaying with price.

Retention is important not only to protect basic subscriber growth, but also to reduce re-acquisition costs and to increase overall customer loyalty. Operators understand it is moreexpensive to acquire a new customer than it is to maintain a relationship with an existing one.

Main focus of the study is to find main reasons behind customer churn, which are the maindriver behind customer’s decision to buy USB-Stick (Dongle/Data card). And also to makecomparative study of competition benchmarking and find customer requirement in terms ofproduct offered.

Limitation of this study is that it only focuses on wireless broadband industry and not entirebroadband industry.

14

2.2 Research objective

Objective of this research are as follows

To do Competitive Benchmarking to gain understanding of Pricing & Brand recall.

To know customer requirement Vis a Vis product offered in market. Find out key drivers for consumers to buy USB Stick.

Find out the reasons for churn.

Competitive Benchmarking to gain understanding of Pricing & Brandrecall:

This will help us in improving our service in terms of tariff plans and also in understandingcompetitors pricing and will also help us in deciding profit margin for our retail channelpartners. Competitive benchmarking will be helping us to determine the performance of abusiness in comparison to our competitors and the industry standard. It can push a businessinto immediate actions for improvement and development of its processes and products.

To know customer requirement Vis a Vis product offered in market.

This will help us understand what actually customers want other then the service offers whichare already there in market. It will help us in removing those tariff plans which are launchedby company but there is no actual customer requirement for them

Find out key drivers for consumers to buy USB Stick.

What are the main things that’s make consumer to buy USB dongle device to use internetservice. Rather than using Wire-line, WI-Fi, DSL, FTT services to use internet. This will helpus understand who our real customers are?

Find out the reasons for churn.

Why customer discontinues a service is main concern of any industry everyone always thinkabout getting new customer but what about current customers who are living. In wirelessbroadband industry due to technology service offering by a particular company at low pricemake customer to switch from one company to another company and this is a sign of cut-throat price war. This will not help companies in this business and will result in losing ofprofit or either customers.

15

2.3 Methodology

This report follows a two way data collection. First part of data collection is primary and it isthe main data gather through survey done by us .which actually support the industry trend andpurely give idea about what really going in market and what company really need to focus.

Second part of Data collection is entirely based on secondary data, which deals with currentglobal trend and business scenario in wireless broadband industry. This is required as part ofthis research because it will give proper idea to the reader or who so ever is willing to readabout broadband industry.

After collecting data from various sources regarding the four objective. It was then enter inexcel and was organized in such a manner to limit the no of table so that comparison becomeseasy for all the objectives.

For Benchmarking all the data regarding Tariff plans and device price was in single tabularformat so that ratio comparison on data and price of tariff could be done.

And for reaming all three objective percentage conclusion was done to get differentinterpretation of survey data.

2.3.1Primary Data

For Competition benchmarking -

Data (on tariff plans) from official website of competitors were taken and it include followingcompetitors.

MTS Airtel

Vodafone RCOM (Reliance communication) Idea

BSNL

Also data regarding OTF (Retailer’s margin On FRC), MOP and hardware margin were takenfrom various retailers. 30-35 retailers were contacted for this purpose.

To know customer requirement Vis a Vis product offered in market-

Sample questionnaire were used to get data from past and current customers. Questions weremainly focusing on user data requirement, uses of internet based on time, type of tariffs planused by them. 90 (potential customers) and 40 (current customers) respondents were taken forthis purpose.

Find out key drivers for consumers to buy USB Stick-

16

Sample questionnaire were used to get data from current and potential customers. Who areusing wireless broadband service and USB- Dongle to connect to internet service? 90(potential customers) and 40 (current customers) Respondent were taken for this purpose.

Find out reason for churn-

Sample questionnaire were used to get data from past customer who have used Tata photonplus Dongle and discontinue their broadband services. 150 past customer’s response weretaken by calling them.

2.3.2 Secondary data:

Secondary data was taken from website and publish journal or article. Data regarding variousaspect of broadband industry such as penetration level, Growth, top ten countries inbroadband market globally Etc.

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Chapter 3 – Interpretation and analysis

3.1 Competitive benchmarking

Benchmarking is used to compare the organization’s processes is used to compare theorganization’s processes or products to other organizations, either internal or external to theirown industry. This comparison can be on specific product features, or can be on broadcustomer service categories, such as product delivery etc. In this report we tried to comparevarious Tariff plans and MRP and retailers billing price for USB device (Data card) andprofit margin for retailers on that device and tariff plans.

3.1.1Tariff plans –prepaid category

Monthly

Table 2: Monthly prepaid plans

In table 2, Uses of data had been divided in 5 categories. Very low usage, low usage, MediumUsage, High usage, very high usage. Photon plus and DoCoMo 3G is not there in very lowusage category. Only RCOM, MTS, Vodafone is there in this category.

In low Usage category all are present and Idea is category leader as it is providing best tarifffor this category.

In medium usages again all players are present but only BSNL is giving a best offer. AndBSNL is category leader in this.

Usage SlabBundled

DataPhoton 3G Photon Plus Idea Voda Airtel MTS R Com BSNL

100 MB - - - - - - -250 MB - - - 102 (204 MB) - 196 180350 MB - - 105 (300 MB) - 103(300MB) 248 250 100 ( 300 MB)500 MB - - - 199 - 348(512MB) 350650 MB - - 205( 600 MB) - - - -750 MB - - - - 498 -

1 GB255

350 ( 1.5 GB)255

350( 1.5GB)245

345(1.5 GB)375 252 647 715 250

2 GB450

700 (UL)450

700 (UL)445

595 (60 days)650 450 - - 450

3 GB 750 (UL) 750 (UL) - 850 ( 60-D) - - -4 GB - - 745 - 750 - -5 GB 850 850 - 1250 ( 60-D) - 798 (UL) 800 (UL) 7506 GB 1000(UL) 1000 (UL) - - - - -10 GB 1200 ( 11 GB-UL) 1200 (11 GB-UL) 1495 1500 1500 999(UL) 1099(UL) 1099

15 GB - - -2500 (12 GB-

60 D) -1298(UL) 1200(UL) 1500

22 GB - - - - - - -30 GB - - - - - - -

50 GB - - - - - - -

V.L

owU

sage

Low

Usa

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ediu

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sage

Hig

h U

sage

V.H

igh

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18

In High usages again all players are present and MTS and RCOM are providing best offers.And in very high usages there is no Player.

90 days packs

Table 3: 90 day’s packs (prepaid)

Here in table 3, show long validity plan of 90 days. Here Photon plus, idea, MTS, RCOM,and BSNL are present in this category of long period. MTS is providing the best offer butit’s not a category leader.

180 days packs

Table 4: 180 days Packs (prepaid)

Table 4 is showing six monthly long validity plans and there are only three players Vodafone,MTS, Rcom. There is no category leader but MTS and Rcom are giving the Best offer.

365 days Packs

Table 5: 365 days packs

In table 5, there is information of Yearly plan. And only Photon is present in this categorythere is no other players in this category.

BundledData

Tata Docomo Photon Plus Voda Idea2 Airtel MTS R Com BSNL

4 GB - - - 1245 - 998 (3 GB) - 600 ( 3 GB)6 GB - 1500 - - - - 1500 -12 GB - - - - - - - -

30 GB for125 Days

- - - - - - --

15 GB for90 days

- - - - - - --

BundledData

Tata Docomo Photon Voda idea Airtel MTS R Com BSNL

6 GB - - - - - 3999(5GB) - -10 GB - - - - - - - -18 GB - - 3250 - - - 3000 -30 GB - - 4250 - - - - -40 GB - - - - - - - -50 GB - - 6250 (48 GB) - - - - -

BundledData

Tata Docomo Photon Voda idea Airtel MTS R Com BSNL

6 GB - 2501 - - - - - -10 GB - - - - - - - -18 GB - 5000 (20 GB) - - - - - -30 GB - - - - - - - -40 GB - - - - - - - -50 GB - - - - - - - -

19

Small Validity Packs & Top Ups

Table 6: Small validity Packs & Top Ups

In table 6, there is information regarding various plan of small validity packs and top ups,except DoCoMo 3G all are present in this category. Best offering is from BSNL.

3.1.2Tariff plans -Postpaid Plan

Monthly plan

Table 7: monthly plan (post paid)

In table 7, again plan were divided in four category based on usage. In Very low usagecategory photon, idea, Airtel, BSNL are present and BSNL, Idea, Airtel are giving best offerin different data usage. In Low usages all players are present and BSNL, Idea, Vodafone, isproviding plan at low rate comparing to other plan of various player standing in samecategory. In medium usage category Idea, BSNL and MTS are providing best for differentdata category all players are present in this category and there is no market leader for thissegment. In high usage segment Vodafone, BSNL, MTS, and DoCoMo are providing the bestoffer in different data category. Again in this segment also there is no market leader.DoCoMo 3 G is having a speed advantage because it gives speed of 21.1 Mbps for Rs 1500and gives data of 15GB.

BundledData

Tata Docomo 3 G Photon Plus Voda Idea Airtel MTS R Com BSNL

20 MB- -

25 (25MB-1 D)- - - - -

50 MB - - - - - - - -

100 MB- 100 (2 D)

44(150 MB-7D) 21 (3 D)

45 (150 MB-7D)

- - 25

250 MB- 250 (15 D) -

100 (300MB-1D)

- - - 50 ( 200 MB)

500 MB - 99( 512MB-2D) - - - - - -1 GB - 300 ( 7 D) - 250 (3 D) 298 (UL-7D) 200 (7D) 151 ( 7- D)Unlimited - - - - - 96 (1 D) 98 ( 1 D) -

Usage Slab Bundled Data Photon Tata Docomo 3G Idea Voda Airtel MTS R Com BSNL250 MB - - - - - - - -300 MB 250 - 100 - - - - 90350 MB - - - - 100 (300MB) - - -500 MB - - - - - - 499 -

650 MB500 500

200( 600 MB) - -

499(700MB) - -

1 GB 650 650 250 375(1.5GB) 250 549 650 2202 GB 750 750 450 450 649 750 4003 GB - - 599 650 675 (3.1 GB) 699 850 -4 GB - - - - - - - -5 GB 950 (UL) 850 (UL) - 850 - - 950(UL+CB) 6706 GB 900 - - - - 799 (UL) - -8 GB - - - 1250 - - - -10 GB 1200(UL) 1100(UL) 1250 1500 1100(UL+CB) 100012 GB 1500(UL) - - 2500 - 899(UL) - -

15 GB-

1350(UL)1500 @ 21.1

Mbps - - - 1249(UL) 1500(UL+CB) 1350

V.Lo

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Low

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High

Usa

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20

ARP Plan

Table 8: ARP (Advance rental plan)

In table 8, advance rental plan have been divided in two category Low usage and mediumusage. Only three players are there in this segment who is giving advance rental plan to endusers. There is no market leader in ARP.

3.1.3 Entry cost of Device (USB Dongle)

Table 9: Entry cost Of Device (USB dongle)

Hardware margin = MRP of hardware – Retailer’s billing price

Max landing with FRC= Retailer’s billing price + FRC – OTF – Min slab

Lowest landing with FRC= Retailer’s billing price + FRC – OTF – Max slab

OTF is the profit margin that retailer get on FRC.

In Table 1 you can see that MRP is lowest for Tata Photon plus it only Rs 1199. While highest is forMTS Rs 1999, second highest is also for MTS. But still the best offering is MTS and RCOM when it

Usage Slab Bundled Data Photon Tata Docomo Idea Voda Airtel MTS R Com750 MB1 GB 3250 (6M) 6201 (12M)2 GB 7401 (12M)3 GB 4250 (6M) 998 (3M) 8601 (12M)4 GB5 GB 3999(6M) 11589 (12M)6 GB8GB 6250 (6M)

Low

Usa

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ediu

mU

sage

Parameters Photon Plus Photon Plus MTS MTS MTS R Com R Com Idea Idea BSNL 3 G Vodafone 3 G Airtel 3GFree Data with FRC 3*3 GB 2 GB 6 GB 10 GB *UL 15 GB for 3M 3GB 10GB 2GB 5 *5 GB 1 GB 2 GB 1GBMRP - Hardware 1199 1199 1299 1732 1999 1399 1499 1550 1550 1800 1800 1800Retailer Billing Price 1140 1140 733 733 733 1225 1225 1500 1500 1590 1410 1600FRC 300 125 501 999 1499 50 300 95 496 250 103 125OTF 200 60 275 375 475 150 350 75 200 0 50 60Hardware Margin 59 59 566 - - 174 174 50 50 210 390 200CAF 0 0 25 25 25 0 0 0 0 0 0Min Slab Scheme 0 0 50 50 50 0 0 100 100 0 0 0Max Slab Scheme 150 150 175 175 175 0 0 0 0 0 0 0Max Landing (WithFRC) 1240 1205 909 1307 1707 1125 1175 1420 1696 1840 1463 1665Lowest Landing (WithFRC) 1090 1055 784 1182 1582 1125 1175 1520 1796 1840 1463 1665

Device MOP (WithFRC) - Average

1499 1324 1234 1732 1999 1399 1499 1649 2046 2050 1903 1925

Upfront MaxCommission to retailer

259 119 325 425 292 274 324 125 250 210 440 260

21

comes to free data. Also if we look at retailers billing price Lowest is for MTS and also OTF ishighest for MTS which will turned any retailer to sell only MTS Dongle.

22

3.2 Customer requirement Vis a Vis product offered inmarket.

This section of the report talk about various products offered in market. As part of ourresearch we try to find out what kind of offering works in wireless broadband market andwhat type of connection they use, what is the pattern of their data uses, what are the purposesof their internet requirement etc?

1

From graph 4, we can clearly see that 58% 0f customers are using USB-Dongle data cad, and37% are using broadband through wire-line or Wi-Fi and 5% of responders said they useDial-up connection to use internet.

Similarly graph 5, shows frequency of internet use by responders and 93% respondent saidthey use every day, in once a week, twice a week, thrice a week, once a month, percentageare below 4%. It means most responder who have connection uses internet on daily basis.Here in once a week or twice a week or once a month category are those users who usesoccasionally when needed.

5%

37%

58%

Type of connectionType of connection Dial-up

Type of connection Broadband

Type of connection USB-Dongle

95%

1%1% 3%

0%

3%

Frequency of yournet use?

Every day Once a week

Twice a week Thrice a week

Once a month

Graph-4: Type of Broadband connectionused by customers

Graph 5: frequency of net use

23

In Graph 6, we can see that there is highest Percentage is in Unlimited plans and 2 GBcategory,16.7% in less than 1 GB, 13.3% for 4 GB, 12.2 % for 3 %. In 5-10 GB there areonly 6.7% and 10- 15% GB only 4.4 % users are there. It means unlimited plan and 2 GBdata category plan are needed because both category are having highest no of users. Also inGraph 7, we can see that post paid users are more than 60 % and prepaid users are only 38%.

Above in Graph 8, we can see the main reasons behind using a postpaid or prepaid plan.Here61% of responders said they use it because they find them cost effective, 27% said theyuse because of range of tariff plans, 11% said they use because they find it convenient interms of payment, and 1 % for other reasons.

16.7

22.2

12.2

13.3

6.7

4.4

1.1

22.2

Less then 1 gB

2 GB

3 GB

4 GB

5-10 GB

10-15 GB

more then 15 GB

Unlimited Plan

How much data theyuses

38%

62%

Which Plan Do youuse?

Prepaid Postpaid

61%27%

11% 1%

Why you use a particular Plan?Cost Effective

Range of tariffplanavailable

For convienience

Others

Graph-6: Data Used by customer Graph-7: Type of Plan

Graph-8: why you use a particular Plan.

24

Graph-9: Purpose of using internet

In Graph 9, you can see that 92% of people were using it for surfing and downloading bothwhile only 8 % of people were using it only for surfing purpose. It means we shouldcategories our users based on their uses pattern. And make tariffs according so that maximumcustomer uses our tariff plan.

Graph-10: What they download most.

To know what customers download most seven option were given to responders and thereresponse is shown in graph10, 60% of them said they download songs, 57% study material,42% document, 40% movies, 34% Games. Here ratio percentage is high in songs and studymaterial which requires users to uses those plans with high data downloading.

8%

92%

For what Purpose you use Internet?Only Surfing Surfing & downoading Both

40

34

60

57

42

3

b.Movies

C.Games

d.Songs

e.Study material

f.Document

g.others

What you download the most?

25

3.3 Drivers for consumer to buy USB Stick

This section of the report, talks about key drivers behind the decision of buying a USB-Dongle (Data card) by customers. And which company’s dongle are used more. And are theysatisfied with the services provided by those companies.

Graph-11: which company’s dongle you use.

In Graph 11, we can see that 34% 0f respondent are using Tata, 14 %of Idea, 12% in BSNLand Vodafone, 10% Rcom, 8% MTS and Airtel. 2% 0ther open dongles.

Graph-12, Reasons to buy USB- dongle. Graph- 13: satisfaction with USB-Dongle Device

In Graph 12, can see that Easy to carry is the main reason behind decision to buy USB-Dongle (data Card) 42% of respondent give this as main reason, connectivity and better speedare almost same 25% and 27%. Also you can see that 27 % of customers who were usingDongle of any company were not satisfied with the service. And 73 % customers weresatisfied with that particular dongle services.

34%

8%10%8%

12%

14%

12%

2%

Which companies USB-Dongle you Use?

Tata

Mts

Rcom

Airtel

vodafone

idea

Bsnl

others

42%

27%

25%6%

Reasons behind your decision tobuy USB-DONGLE?

Easy to carry

connectivity onthe moveBetter speed

others73%

27%

Are you satisfied withthat DongleSatisfied Not satisfied

26

3.4 Reasons for churn (For Tata Photon Plus)

This section of the report talks about reasons behind customer churn. And which reasons arehave more impact on their decision to change a company services. Here we have categorizedthem based on data of two month April and May , 2012 for Tata photon plus. And will alsoused data we got from survey regarding importance of various factor such as price, Speed,connectivity, Bill policies, others (Bill discount, special offers) to customer while buyingbroadband services from any broadband company. And will also discuss how satisfied thosecustomers were who were using Tata photon plus dongle.

3.4.1Churn category

Graph-14: Different Churn category-Tata Photon plus (Based on data of April and May, 2012)

In Graph 14, you can see that voluntary churners are the highest in the total churn consistingmore than 50%, followed by involuntary churners consisting 30% of total churner alsochurners in migration category is 15% and sales rejection category is 4 %. In baseadjustment there is on churn. In next couple of paragraph we will try to understand thiscategory of churn by sub category. This is will give a clear indication of what are the issueswith our service, customers, and salesmen.

3.4.2 Voluntary Churn:

Voluntary churn is most important from companies point of view because here thosecustomers who were using services and paying their bills. But due to some inconveniencewith service or due to competition they have changed their company.

51%

30%

4%

15%

0%

Different Churn category-Tata Photon plus

Voluntray

Involuntry

sales Reject

Migration

base adjustment

27

Graph-15: Tata photon plus Voluntary churn

In Graph 15, we can clearly see that large portion of voluntary churn is mainly because ofpersonal reason and it consist of 78% (Refers to table-11 below) of all voluntary churn. Inpersonal reason there is mainly affordability issues, business closed down, not required,SDCA Change. Billing and network related churner were 7% in both the sub category. Thendue to competition there were 4 % churner and 3 % because of device fault or loss of device.Service related, sales reject, legal were 1%, 0.3%, and 0.2%. So in voluntary churner personalreasons are the main concerned for management of Tata Tele service Limited. Even thoughbilling and service related issues are less than 10 % company should improve billing processand make it error free.

Table-10: voluntary churn Sub-category.

7%3% 0.2%

7%

78%

0.3%1% 4%

Tata photon plus Voluntary churnBilling - BNR Issuse orHigh/inflated BillDevice -Faulty device or Lost orfeatureLegal

Network

Personal

Sales reject

Service related

Billing Issue- BNR Issue 49Billing Issue- High inflated Bills 83Device -Faulty 6Device-Accesserces and feathre 3Device- Lost 41Legal 4 Legal 4 0.210859251Network -coverage Issue 88Network -slow speed issue 36Personal -affordibility Issue 220Personal- business closed 218Personal-Change in employeement 9Personal -customers expired 2Personal-not required 542Personal- reason not known 248Personal- SDCA Changes 249Sales related-Temp connection 1Sales related- wrong / over commitment 5Service Related- Customer service Issue 15Service Related- Device service Issue 2Service Related -Excessive promotion calls 5Service Related -Frequent/ wrong Barring 1Switch to competition-customer service Issue 11Switch to competition-coverage Issue 9Switch to competition-Better Traiffs and product 50

Total 1897 1897 100

71.42857143

65.21739138.69565217421.739130434.34782608715.7142857112.85714286

0.13440860236.4247311816.6666666716.7338709716.6666666783.33333333

10070.9677419429.0322580614.7849462414.650537630.60483871

Churn Sub categorypercentage

37.1212121262.87878788

126

82

23

70

78.43964154

6.536636795

0.316288877

1.212440696

3.6900369Switch to

competition

Tpye of Churnpercentage

6.958355298

2.635740643

Category total

132

50

124

1488

6

Billing Issue

DeviceRelated

Network

Personal

Sales related

Service Related

Voluntry Churn No of customers Churn Type

28

3.4.3 Involuntary churn:

Involuntary are more damaging to any company they are those who fail to pay their bill. Theyare intentional defaulters who are just a burden on company.

Graph- 16: Tata photon Involuntary Churn

In Graph16, we can clearly see that more than 80% of churner in involuntary categorybelongs to intentional defaulter, 8% comes under other Misc (Disconnection - manual serviceOrder), 5% personal, and 1% in AC/VC-negative.

3.4.4 Importance of various factors while buying broadbandservices:

Graph-17: Importance of various factors while buying broadband services

1%0% 0% 0%

86%

5% 0%8%

Tata photon Involuntary Churn

AC/CA -Negative

Billing High

FMS precheck- 30 days

Network

Non- payment

Personal

Product migration

Others-Misc

63 6276 73

4663

6

9 2311 9

23

14

22

1415 10 10

2013

20

101 3 6 9 4

5

4 0 1 1 3 5

44

Price Speed Connectivity Network Service support Billing Policies Others - specialoffers / Bill

discount

Importance of various factors while buying broadband services

most important Somewhat important Average

Not so important Least Important

29

In graph 17, you can see that price important to customers more than 70 % of respondentagreed on that. While for 28 % of customers speed is not so important. Again speed is alsoimportant for more than 80 % of customers and not so important for 16 % of customers.Connectivity and network was important for more than 70% of customers and not soimportant for rest of customers. More than 65% of customer said services support is mostimportant to them. More than 75 % of respondent said Billing policies are most important tothem. While for bill discount and special offer only 26 % of respondent said it is mostimportant to them.

3.4.5 Satisfaction from Tata photon plus

Graph 18: Satisfaction from Tata photon plus.

In Graph 18, we can see that only 38% of the people were satisfied from Tata photon price.More than 75% of respondent were satisfied with the speed of Tata Photon. Again inconnectivity also More than 75 % of respondent were satisfied. Regarding the network ofTata photon plus 80% of the respondent were satisfied. In services More than 65 % 0frespondent were satisfied. Regarding billing policies 74% of respondent were satisfied.While in bill discount and special offers only 22% were satisfied and 27% said they arehaving moderate opinion about satisfaction.

33

77 7767

4465

125 5 313

259 10

29

5 1 0 9 52718

8 9 8 10 8 1011 6 11 14 7 1527

Price Speed Connectivity Network Service support Billing Policies Others-specialoffers / Bill

discount

Satisfaction from Tata photon plusVery satisfied Somewhat satisfied Average Somewht dissatisfied Very Dissatsidied

30

Chapter 4- recommendations and conclusion

4.1 Key findings

4.1.1For competitive benchmarking

Prepaid

We don’t have tariff plan for very low usage slab for monthly prepaidcategory. There is no much price difference in all Data plan provided by usand competitors.

In Quarterly and six month prepaid plan category we are not there.

In yearly prepaid category only Tata photon plus is giving tariff plans

In small top ups plan we have tariff plans and there is no much difference inprice.

Post-Paid

In post paid category we have plans for all usage categories but in thiscategory BSNL and Idea is giving their Data plans at very low price ascompared to us.

In Advance rental plan in post we don’t give Data plan only three player arethere

Entry cost of device

MTS Wireless USB device is the cheapest for the retailers.

Commission to retailer is highest for Vodafone and MTS is close to Vodafone

4.1.2 For customer requirement Vis-Vis product offered in market.

Unlimited plan and 2 GB data plan are most preferred plans by internet users.

Users for 15 GB or for High Data are very less as compared to unlimited planat lower speed.

Customers who want high speed preferred those plan which give high speedtill the Data capacity of their Tariff plan.

31

Post-paid plan are more popular then prepaid because customer find it costeffective in terms of prepaid plans and also customer have ranges of tariff planto chose from.

Customer who were using internet were using it for both purpose downloadingand surfing.

And in connection wireless USB-dongle is the most preferred by customerbecause it is easy to carry anywhere.

Customers mostly were downloading movies, song, and games which requirehigh Data capacity to download those big file.

Service support and billing policies are important to customers.

4.1.3 For Key drivers to buy USB-Stick.

Easy to carry is the main standing reason behind the decision to buy USB-sticks.

4.1.4 For Reason to churn

Personal Issue is the main reason of voluntary churn. In this when wecategories them sub category for personal issue the main reason comes to usis the Affordability issue consisting 15% of personal issue and others arebusiness closed down, customer expired, not required , change in employment.Which are not in the hand of organization?

Intentional default was the main reason of involuntary churn.

32

4.2 Conclusion

4.2.1For competitive benchmarking

Competitive benchmarking is any day, one of the most important aspect of business tocompare them self with competitors. It gives idea of how crucial the competition is. As partof this research I have tried to capture that competition in terms of price offered to customersand to retailers. In prepaid category we don’t need to make too much change as we are justsame to our competitor in every form of competition whether it is for price of tariffs plan orData provided to them (please refers to Table no 2, 3, 4, 5, 6). You will find that only inmonthly plan category we need to focus on very low uses category because all players areproviding tariff plan. For post paid category in monthly category we don’t need to makechange in plans as they are similar to our competitor. But should have plan in ARP categorybecause only two players are there.(refers to table 7,8).Also device price of MTS is a bigheadache for us because since retailer have to pay less to company they will sell only MTSbecause in terms of Data and price it is giving same what other players are giving. (Pleaserefer to table no 9).

4.2.2 For customer requirement Vis-Vis product offered in market

If customers requirement are not meet with then any plans introduce in market would be asure west of time because sales team will not be able to sell it because there is norequirement at the end of customer. As part of this research we have tried to understand whatreally customer wants. When it comes to internet uses customer all need is the speed at lowprice. (Refers to Graph no 8) which says customer use post paid plan because them find itcost effective. And post-paid connection are most proffered by them (refers to Graph no 6).USB-dongle is the most proffered connection by customers.

4.2.3 For Key drivers to buy USB-Stick

To know what actually drives consumer to by any product is the most crucial thing when itcomes to developing product. As part of this research we have tried to understand thosereasons. Customer buys USB-dongle because they find it easy to carry anywhere, secondthing they want is connectivity on the move and also speed (Refers to graph no12). It meanscompany should focus on providing the better speed since it is the second thing whichcustomer is looking for in the service.

4.2.4 For Reason to churn

Churn in any industry is one of the most dangerous concerns for manager. This decide thefuture of the company and product, if churn rate are going high and high for certain productor service of company it will result in loss of revenue and market share. As part of ourresearch we have tried to find out the main reason for churn for Tata photon plus and wefound that the main reason are the personal issue of customer who leave the product orservice voluntary (refers to graph no15 and table no 10 on page 27), where we have given

33

sub-category of main reason in personal reason there are sub reason like affordability issuewhich are the main concern and rest are issues like business closed, change in employmentand SCDA change , which is not in the hand of company. So company only should try tohave as many range of tariff plan which give customer liberty to choose which supporthis/her need in accordance with their budget.

4.3 Recommendation

First we recommend having ranges of tariff plan for very-low category usersfor prepaid segment.

We recommend having different commission slab for our SRO and not singlebase for all. First we should divide our SRO based on performance in A, B, Cand based on their performance they should be given the commission ondevice selling.

Rather than giving MRP and FRC in different. We should combine (Bundling)Device MRP and FRC.

In Postpaid category we should have plans for long Validity of 3 month andsix month and they should be bundle with the device.

People in tell calling should be trained so well that they get proper responseand perfect reason for the discontinuing a service because it will helpmarketing in data mining and will give real picture of competition.

34

GlossaryMOP – Market operated price

USB- Universal serial busGSM-The Global System for Mobile Communications

CDMA-Code Division Multiple Access

FRC – First recharge coupon.

DSL - Digital Subscriber Line

ADSL-Asymmetrical Digital Subscriber Line

SDSL- Symmetrical Digital Subscriber Line

SRO - Special Retail Outlets.

35

Bibliography

TRAI- Telecom Regulatory Authority of India

Database marketing instituteBooks

“Telecom- churn Management” –book by Rob mattison Published in apr1, 2001.

Published articles and journals

Competitive Benchmarking Metrics for Businesses- by Sam Miller

Website links

http://www.telecom-cloud.net/wireless-churn-metrics-and-big-data/

http://ezinearticles.com/?Competitive-Benchmarking-Metrics-For-Businesses&id=2986739

http://www.mtsbroadband.com

http://www.airtel.in

www.vodafone.in

www.rcom.co.in

www.ideacellular.com

www.bsnl.co.in

www.wikipedia.com

36

Annexure

Questionnaire 1 –Regarding Reason for churn (Telephone –Interview)

Questionnaire 2- Regarding survey of Use of USB-DONGLE

37

38

39