CHAPTER-01

INTRODUCTI
ON
INTRODUCTION

The telecom industry has been divided into two major segments, that is, fixed and wireless
cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have
been discussed in brief in the report.

In today’s information age, the telecommunication industry has a vital role to play. Considered
as the backbone of industrial and economic development, the industry has been aiding delivery
of voice and data services at rapidly increasing speeds, and thus, has been revolutionising
human communication.

Although the Indian telecom industry is one of the fastest-growing industries in the world, the
current teledensity or telecom penetration is extremely low when compared with global
standards. India’s teledensity of 36.98% in FY09 is amongst the lowest in the world. Further,
the urban teledensity is over 80%, while rural teledensity is less than 20%, and this gap is
increasing. As majority of the population resides in rural areas, it is important that the
government takes steps to improve rural teledensity. No doubt the government has taken certain
policy initiatives, which include the creation of the Universal Service Obligation Fund, for
improving rural telephony. These measures are expected to improve the rural tele-density and
bridge the rural-urban gap in tele-density.
OBJECTIVE OF THE STUDTY
The study has been done to position of TATADOCOMO in corporate sectors in
Cuttack and Bhubaneswar
 CHAPTER-02
INDUSTRY PROFILE
COMNAPY PROFILE

INDIAN TELECOM INDUSTRY

Introduction - Evolution
Indian telecom sector is more than 165 years old. Telecommunications was first introduced in
India in 1851 when the first operational land lines were laid by the government near Kolkata
(then Calcutta), although telephone services were formally introduced in India much later in
1881. Further, in 1883, telephone services were merged with the postal system. In 1947, after
India attained independence, all foreign telecommunication companies were nationalised to
form the Posts, Telephone and Telegraph (PTT), a body that was governed by the Ministry of
Communication. The Indian telecom sector was entirely under government ownership until
1984, when the private sector was allowed in telecommunication equipment manufacturing
only. The government concretised its earlier efforts towards developing R&D in the sector by
setting up an autonomous body – Centre for Development of Telematics (C-DOT) in 1984 to
develop state-of-the-art telecommunication technology to meet the growing needs of the Indian
telecommunication network. The actual evolution of the industry started after the Government
separated the Department of Post and Telegraph in 1985 by setting up the Department of Posts
and the Department of Telecommunications (DoT).

The entire evolution of the telecom industry can be classified into three distinct phases.

• Phase I- Pre-Libralisation Era (1980-89)

• Phase II- Post Libralisation Era (1990-99)
• Phase III- Post 2000

Until the late 90s the Government of India held a monopoly on all types of communications –
as a result of the Telegraph Act of 1885. As mentioned earlier in the chapter, until the industry
was liberalised in the early nineties, it was a heavily government-controlled and small-sized
market, Government policies have played a key role in shaping the structure and size of the
Telecom industry in India. As a result, the Indian telecom market is one of the most liberalised
market in the world with private participation in almost all of its segments. The New Telecom
Policy (NTP-99) provided the much needed impetus to the growth of this industry and set the
trend for libralisation in the industry.

Current Status
Globalisation has made telecommunication an integral part of the infrastructure of the Indian
economy. The telecom sector in India has developed as a result of progressive regulatory
regime.

According to the TRAI, the total gross revenue of the Indian telecom services industry was Rs
1,524 bn in FY09 up from Rs 1,291 bn in FY08 registering a growth of 18.03% over FY08 and
its subscriber base grew by 43% over FY08 to touch 429.70 mn subscribers in FY09.

The telecom sector in India experienced a rapid growth over the past decade on account of
regulatory libralisation, structural reforms and competition, making telecom one of the major
catalysts in India’s growth story. However, much of this growth can be attributed to the
unprecedented growth in mobile telephony as the number of mobile subscribers grew at an
astounding rate from 10 million in 2002 to 392 million in 2009. Besides, the growth in the
service and IT and ITeS sector also increased the prominence of the telecom industry in India.
Telecom has emerged as a key infrastructure for economic and consumer growth because of its
multiplier effect and the fact that it is beneficial to trade in other industries. The contribution of
the sector to GDP has been increasing gradually (its contribution in GDP has more than doubled
to 2.83% in FY07 from 1.0% in FY92).

Telecom is one of the fastest-growing industries in India; on an average the industry added 8
million wireless subscribers every month in FY08. The government had set a target of 500
million telecom connections by 2010. However, according to the TRAI, the total subscriber
base (wireless and wireline) in the industry crossed the 500-mn-mark and reached 509.03 mn by
the end of September 2009, which took India to the second position in terms of wireless
network in the world next only to China. Prior to liberalisation, the telecom sector was
monopolised by the public sector and recorded marginal growth; in fact, during 1948-1998, the
incremental teledensity in the country was just 1.92%. However, the introduction of NTP’99
accelerated the growth of the sector and the teledensity increased from 2.33 in 1999 to 36.98 in
2009; however, much of this growth was brought about by the NTP-99 policy changes such as
migration from fixed license fee to revenue sharing regime and cost-oriented telecom tariffs.
From 2003 onwards the government has taken certain initiatives such as unified access
licensing regime, reduced access deficit, introduction of calling party pays (CPP) and revenue
sharing regime in ADC that has provided further impetus to the sector.

The Indian telecom industry is characterised with intense competition, and continuous price
wars. Currently, there are around a dozen telecom service providers who operate in the wired
and wireless segment. The government has been periodically implementing suitable fiscal and
promotional policies to boost domestic demand and to create volumes for the industry.

The Indian telecom industry has immense growth potential as the teledensity in the country is
just 36 as compared with 60 in the US, 102 in the UK and 58 in Canada. The wireless segment
growth has played a dominant role in taking the teledensity to the current levels. In the next few
years, the industry is poised to grow further, in fact, it has already entered a consolidation phase
as foreign players are struggling to acquire a pie in this dynamic industry.

Role in India’s Development

Contribution to GDP

According to the UNCTAD, there is a direct correlation between the growth in mobile
teledensity and the growth in GDP per capita in developing countries, which tend to have a high
percentage of rural population. The share of the telecom services industry in the total GDP has
been rising over the past few years (the telecom sector contribution in GDP went up from
2.52% in FY05 to 2.83% in FY07).
Employment

The Indian telecommunication industry employs over 400,000 direct employees and about 85%
of these employees are from government-owned companies. The ratio of number of subscribers
to employees, an indication of efficiency and profitability, is much higher for private companies
than for government companies.
Foreign Direct Investment (FDI)

Foreign direct investment has been one of the major contributors in the growth of the Indian
economy, and therefore, the need for higher FDI is felt across sectors in the Indian economy.
The telecom sector has played a crucial role in attracting FDI in India. The share of telecom
sector in the total FDI inflows in India has gone up to 10% in FY09 as compared with just 3%
in FY05.

The telecom sector requires huge investments for its expansion as it is capital-intensive and FDI
plays a vital role in meeting the fund requirements for expansion of the telecom sector. Telecom
accounts for almost 10% of the total FDI inflows in the country and has been the third-largest
sector to attract FDI in India in the post-liberalisation era
The Indian telecom industry has been an attractive avenue for foreign investors over the years.
As per DIPP figures, the cumulative FDI inflow during August 1991 to June 2009 period, in the
telecommunication sector amounted to US$ 113 bn. FDI calculation takes into account radio
paging, cellular mobile and basic telephone services in the telecommunication sector.

In the 2004-05 Budget, the government raised the FDI limit from 49% to 74% in the telecom
services segment subject to retention of local management control. According to the new
norms, 26% share out of the 74% should be held by an Indian company or an Indian citizen
with Indian management. Further, 100% FDI is permitted in telecom manufacturing, category I
infrastructure providers, ISPs without gateway, call centres and IT-enabled services. Further,
direct or indirect FDI up to 74% is permitted subject to licensing and security requirements for
ISPs with gateways, radio paging operators and category II infrastructure providers.

The relaxation in FDI norms has attracted many foreign telecom majors to the sector. The
presence of foreign players has not only encouraged faster infrastructure development and
upgradation but also has opened up the domestic industry to foreign competition. Since 2004,
there has been a large inflow of FDI in the sector. During 2004-05 and 2005-06, a period during
which the FDI norms were relaxed, the FDI inflow grew by an astounding 300% to US$ 624
mn in 2005-06 from merely US$ 125 mn in 2004-05. The inflow of FDI has provided
tremendous impetus to the sector in the past few years and the attractiveness of the sector has
kept the FDI inflows growing steadily. During FY09 the FDI in the telecom sector at US$ 2,558
mn was 103% higher than that seen in FY08 at US$ 1,261 mn. Further, the FDI in the sector
has already reached US$ 2010 mn for a six month period of FY10 (Apr-Sep 09) and is expected
to surpass the total FDI for FY09.

The government’s liberalised FDI policies have resulted in several foreign companies entering
into the Indian markets. The influx of foreign players in the Indian telecom industry has led to
capacity creation, and better infrastructure, which in turn has bettered the network quality. The
rise in FDI has also enabled technology transfer, market access and has improved organisational
skills; going forward, FDI could be used for providing telecom services to rural areas, where
teledensity is still very low.

The change in FDI policy that has raised the FDI limit from 49% to 74% for the sector has
made it more attractive for foreign players. In the long run the growth prospects of telecom
players that have foreign partners will improve and other players will get new avenues to raise
capital.

Growth of IT-ITeS and Financial Sector

India has entered the league of countries with the most-advanced telecommunication
infrastructure after the industry was deregulated. Furthermore, deregulation has stimulated
India’s economic growth through industry growth and through rise in investments. It is evident
that a well-developed communication sector improves access to social networks, lowers
transaction costs, increases economic opportunities, widens markets, and provides better access
to information, healthcare and educational services. The growth in Indian telecom sector has
been concomitant with overall growth in GDP, government revenue, employment et al. Besides,
telecommunication has increased efficiency, reduced transaction costs, attracted investments
and has created new opportunities for business and employment.

The NTP-99 was particularly helpful for the ITeS-BPO industry as it ended the government
monopoly in international calling by introducing IP telephony. After the introduction of IP
telephony, there was rapid growth in the number of data processing centres and
inbound/outbound call centres, which ultimately led to the outsourcing revolution in India.
The telecom sector has been instrumental in creating jobs for a vast pool of talented and
knowledge professionals in the IT and ITeS-BPO industry, which thrives on reliable
telecommunication infrastructure. India has become an important outsourcing destination for
the world and the boom in this sector also has transformed India’s economic dynamics. The
evolution of telecom sector has brought about a revolutionary change in the way some
businesses operate.

Another beneficiary of the telecom revolution is the financial services industry, which has been
on a growth trajectory. The progress and quality of the financial sector has been a key factor
that has driven the pace and diversity of the real economy. India has an extensive and well-
developed financial sector with wide and sophisticated banking network. Banking in India has
become service-oriented, and has matured greatly from the days of walk-in customers to the
present situation when banks have migrated to a 24-hour banking platform to attract customers;
however, this disintermediation in the business has led banks to be extremely prudent in terms
of their internal operations and has led them to adopt newer products and delivery channels.
Further, with introduction of internet & mobile banking the long ques at the banks are slowly
becoming a thing of the past.

Both the financial and the IT-ITeS segments rely on good domestic as well as international
network connectivity; therefore, there is a need for a sound telecommunication network.

Factors Facilitating Growth of the Sector

The phenomenal growth in the Indian telecom industry was brought about by the wireless
revolution that began in the nineties. Besides this, the following factors also aided the growth of
the industry.

Libralisation

The relaxation of telecom regulations has played a major role in the development of the Indian
telecom industry. The liberalisation policies of 1991 and the consequent influx of private
players have led the industry on a high growth trajectory and have increased the level of
competition. Post-liberalisation, the telecom industry has received more investments and has
implemented higher technology.

Increasing Affordability of Handsets

The phenomenal growth in the Indian telecom industry was predominantly aided by the
meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter
the market and to cater to the growing demand. Further, the manufacturers introduced lower-
priced handsets with add-on facilities to cater to the increasing number of subscribers from
different strata of the society. Now even entry-level handsets come with features like coloured
display and FM radio. Thus, the falling handset prices and the add-on features have triggered
growth of the Indian telecom industry.

Prepaid Cards Bring in More Subscribers

In the late nineties, India was introduced to prepaid cards, which was yet another milestone for
the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the
credit risk of service providers due to its upfront payment concept. Prepaid cards were quite a
phenomenon among first-time users who wanted to control their bills and students who had
limited resources but greater need to be connected. Pre-paid cards greatly helped the cellular
market to grow rapidly and cater to the untapped market. Further, the introduction of innovative
schemes like recharge coupons of smaller denominations and life time incoming free cards has
led to an exponential growth in the subscriber base.

Introduction of Calling Party Pays (CPP)

The CPP regime was introduced in India in 2003 and under this regime, the calling party who
initiated the call was to bear the entire cost of the call. This regime came to be applicable for
mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the
Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from
both mobile as well as fixedline networks. Shifting to the CPP system has greatly fuelled the
subscriber growth in the sector.
Changing Demographic Profile

The changing demographic profile of India has also played an important role in subscriber
growth. The changed profile is characterised by a large young population, a burgeoning middle
class with growing disposable income, urbanisation, increasing literacy levels and higher
adaptability to technology. These new features have multiplied the need to be connected always
and to own a wireless phone and therefore, in present times mobiles are perceived as a utility
rather than a luxury.

Increased Competition & Declining Tariffs

Liberalisation of the telecom industry has fuelled intense competition, especially in the cellular
segment. The ever-increasing competition has led to high growth of subscribers and has put
pressure on tariffs, which have seen a sharp drop over the years. When the cellular phones were
introduced, call rates were at a peak of Rs 16 per minute and there were charges for incoming
calls too. Today, however, incoming calls are no longer charged and outgoing calls are charged
at less than a rupee per minute. Thus, the tariff war has come a long way indeed. Increased
competition and the subsequent tariff war has acted as a major catalyst for attracting more
subscribers. Apart from these major growth drivers, an improved network coverage, entry of
CDMA players, growth of value-added services (VAS), advancement in technology, and
growing data services have also driven the growth of the industry.

Outlook

The telecom industry in India has experienced exponential growth over the past few years and
has been an important contributor to economic growth; however, the cut-throat competition and
intense tariff wars have had a negative impact on the revenue of players. Despite the challenges,
the Indian telecom industry will thrive because of the immense potential in terms of new users.
India is one of the most-attractive telecom markets because it is still one of the lowest
penetrated markets. The government is keen on developing rural telecom infrastructure and is
also set to roll out next generation or 3G services in the country. Operators are on an expansion
mode and are investing heavily on telecom infrastructure. Foreign telecom companies are
acquiring considerable stakes in Indian companies. Burgeoning middle class and increasing
spending power, the government’s thrust on increasing rural telecom coverage, favourable
investment climate and positive reforms will ensure that India’s high potential is indeed
realised.

TATA DOCOMO COMPANY PROFILE

Tata Docomo the GSM Mobile Service provider has launched its postpaid plans for Tamilnadu,
Orissa and Kerala telecom circle tagged as Start, Premium, Platinum, Elite with price range of
Rs. 299 to Rs. 1099 which is classified for heavy ,light ,and normal users . Tata Docomo is also
offering to subscribers to customize the Tariff plans with their own choice of usage.

There are 3 standard FREE toppings will available that customer can choose as their choice that
are 150 local mins / 50 local + mins STD / 500 local person to person sms. With Start 299,
Subscriber can take any three (3) free topping combinations. Under Premium 499, customer can
take any six (6) free topping combinations. Under Platinum 799, customer can take any ten (10)
free topping combination’s.

For Example: With Start 299 plan, subscriber can have one combination of the three toppings as
150 Local Free Minutes, 50 STD Minutes & 500 Local SMSs. Or the combination can be two
toppings of the 150 Local Free Minutes i.e. 300 local minutes and one topping of 50 STD
Minutes (because the total number of combination’s is three)
Another example can be as 1 topping of local 150 minutes and 2 toppings of 50 STD minutes Or
the combination can be all 3 toppings of 150 minutes, totaling to 450 local minutes
CHAPTER 03
RESEARCH
METHODOLOGY
RESEARCH DESIGN
Every research project conducted scientifically has a specified frame work for
controlling data collection.This frame is called Research Design. Its main function
is to ensure that the required data are collected and then they are collected
economically. General types of research design are-

i) Exploratory

ii) conclusive

Each of these are further subdivided as follows;-

I) Exploratory Research

a) Search of secondary data

b) Survey of knowledge person

c) Case Study

ii) Conclusive Research

a)Descriptive Research
 Case study

a) Statistical Study

b) Experimentation

The research seeks to discover new relationships, while concessive

research is designed to help executives choose among various possible
courses of action that is to make decision.

The research work conducted by researcher under the Exploratory

Research.

The research’s data collection sources have been primary in nature and included
survey research

Data collection methods

Survey research

Experimental research

Observational research

Survey research
It is a systematic gathering of information from the repondents for the purpose of
understanding or predicting some aspects of behavior of the population of interest.

There are 3 methods of survey

Telephonic interviews

Mail interview
Personal interview

Telephonic Interviews:
This is the best method because information gets gather immeadiately and at a lessr
cost than either mail or personal interview.This method is easy to administer and
timely,but is not without certain limitations.

It’s limitations and as follows:

Interviews have to be very short.

Techinique is not personal.

Only people with telephone can be contacted.

Mail Intrrview’s:
Its main purpose and adventage is that the interview is not hampered by bias of the
interviewer since no interviewer is involved.Mail surveys are more economical as
compared to personal interviews.Also, if in the mail survey the respondents are to
remain anonymous,they likely to give true answers because they do not feel the
need to impress the interviewer.

Limitation
It is not easy to make good mailing list.
 The questionnaire has to be such that the questions are
simple and clearly understood.

The return rate is slow and low.

Personal Interviews
It has following advantages

Can explain ( presence of interviewer)

Observation by the interviewer

Clarification by the interview

Its limitations as follows:

It is time consuming.

It is too expensive

It depends on mood and availability of the respondent

There are great chances of introducing errors in the interviewing process.

Forms of personal interviews:

a) Individual interviewing-

It involves calling on individuals at their homes, officers by stopping them on

the way.

b) Group interviewing

It involves inviting 6-10 respondents to spend some time with a skilled

interviewer to discuss about a good, service, organization or any other marketing
entity.
 The researcher in the course of his study has used personal interview i.e
individual interviewing as a means of his survey research.

RESEARCH INSTRUMENT QUESTIONNAIRE

It is formal set of questions for the purpose of gathering information.As
such the function of a questionnaire is measurement.

A questionnaire is associated with survey research but very frequently it

is a measurement instrument in experimental designs as well.

A questionnaire represents the most common form of measurement in

marketing research.

A questionnaire can be used to measure:-

a) Behaviour:- Past, present or intended

b) Demographic characteristics-Age, sex etc.

c) Level of knowledge

d) Attitude and options

Steps in conducting a questionnaire:-

i) To determine what information is required

ii) To determine what type of questionnaire is used.

iii) To determine content of individual questions.

iv) To determine the wordings of the questions.

v) To determine type of questions to be used.

vi) To determine the question sequence

vii) To precode the questionnaire.

 viii) To determine form layout and method of questionnaire
reproduction. Present the questionnaire.

ix)Revise and prepare the final questionnaire.

The questionnaire used by the researcher was structured non designed.

In this type of questionnaires a formal set of questions may be set up.

Hence it is called structured. Each respondent may be asked this set of questions in
the given sequence.

Advantages:-

i) The questionnaire produce most reliable results because if the same

questionnaire is used in the same manner, then similar results will be obtained.

ii) It increases the possibility of collecting most relevant information.

iii)It reduces the chance of permitting an interviewer to influence the results by

rephrasing of the questions.

iv)Data obtain are easier to table and interprete.

Sampling plan

Once the problem is clearly specified and developed an appropriate research

design and data collection instrument adopted, the next step in the research process
in to select those elements from where the information is to be collected. one of the
way is to collect information from the portion of the population by taking a sample
of elements from the larger group and on the basis of the information collected
from the subsets we infer about the largest group

Sampling can be defined as drawing inferences about a larger group on the

basis of a small group sampling is necessary because complete or observations of a
phenomenon are rarely possible.
 Resons for samplings:-

These are the resons for sampling:-

i) It is not practically possible to cover the entire universe.

ii) Sampling helps in reducing the cost of data because the smaller the
sample, the lower will be the cost of questionnaire and lesser training
given to the researcher.

Sample Design

There are two samples, which are related with this research
study-

1) Shippers
2) Custom House Agents (CHA)
The size of each of these two samples is 45 and both the samples
are purposive because the elements of the samples are chosen
the respective population in order to meet some predetermined
criteria and it is under non - probability sampling method.

Data Collection

The entire project is based on two types of data. –

1) Secondary Data 2) Primary Data

Secondary Data

Sources: All the secondary data are collected from various

magazines, business papers and the websites of various
organizations.
Objective: Secondary data are required to know the position of
Kolkata in respect of amount of cargo traffic among the major
docks and airports in our country.

Primary Data

Sources: All the primary data are collected through a

questionnaire survey on the sample members of the two samples
-

1) Shippers
2) Customs House Agents (CHA)

Objective: After analysing the secondary data, it is clear that the

position of Kolkata among the major airports and docks in respect
of amount of cargo traffic is lowest, so primary data are collected
to identify those problems which are hindering the growth of
logistics industry in our state.

Limitations of the Study

 The major limitation was that of time constraint. As it is quite

evident, 2 moths time is too short time to conduct an
exhaustive survey of the above kind after satisfying all the
needs and to perfection.

 The work schedule was packed which created problems in

arranging for personal interview. In spite of the above
constraint maximum care was taken to ensure that work
schedule wasn’t disturbed.
A sort of fear on the part of the worker to disclose certain
confidential information was one more constraint.

CHAPTER -04

DATA ANALYSIS AND INTERPRETRATION

CHAPTER-05

FINDINGS AND ACHIEVEMENTS

SUGGESTIONS

CHAPTER-06

CONCLUSION

BIBILOGRAPHY

QUESTIONNARE