Mnp

1
A
Project Report
On
“Customer Perception about mobile service provider in the
era of Mobile Number Portability”
Submitted To
Punjab Technical University, Jalandhar.
In Partial Fulfilment of the Requirements for the Award of
Degree of Master of Business Administration
Supervised by: Submitted by:
Mr. Kirandeep Singh Harish Kalia
Univ. Roll no. 90342233630
GLOBAL INSTITUTE OF MANAGEMENT AND
EMERGING TECHNOLOGIES, AMRITSAR
(2009 – 2011)

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Certificate
This is to certify that the Project Report titled “CUSTOMER PERCEPTION
ABOUT MOBILE SERVICE PROVIDER IN THE ERA OF MOBILE
NUMBER PORTABILITY” Submitted by Harish kalia to faculty of Management,
Global Institutes of Management, Amritsar, for the award of degree of MBA is a
bonafide piece of work carried out by him under my guidance. This project report has
not been submitted in part or in full to any other university or institution for award of
degree. This research report is fit to be considered for award of MBA degree.
______________
Date:_________ Kirandeep Singh
(Assistant Professor)
Global Institute of Management
Amritsar

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DECLARATION
It is certified that the project titled “Customer Perception about mobile service
provider in the era of Mobile Number Portability” submitted by me is entirely my
own and all ideas and references have been duly acknowledged.
Date: Harish Kalia
Univ. Roll no. 90342233630

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ACKNOWLEDGEMENT
The work on this project has given me immense knowledge and exposure to the
upcoming trends in the telecom industry. After 1.5 years of gaining knowledge at
Global Institute, I am able to provide better justice to my project. The work on this
project is being definitely conducted by me but the project work bears the imprints of
the roles of many people, without whose valuable inputs, guidelines and suggestion
this report would not have seen the light of day.
First of all I would like to thank my project guide Mr. Kirandeep Singh and Ms.
Harpreet Dusanjh who kindled my path towards the completion of research project I
offer appreciation to my parents and all my friends for their ever-willing cooperation
and moral support.
And at last but not the least, I thank the Almighty who is always with me.
- Harish kalia

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TABLE OF CONTENTS
Sr. Title Page No.
1. INTRODUCTION 8 - 28
1.1 Telecommunication 8 - 9
1.2 TRAI 9 - 10
1.3 Telecom Sector in India 10 – 12
1.4 Classification of telecommunication services 12 - 16
1.5 Introduction to the companies 16 – 26
1.6 Mobile Number Portability 26 - 28
2. REVIEW OF LITERATURE 29 – 31
3. RESEARCH METHODOLOGY 32 – 33
3.1 Need of the study 32
3.2 Objectives of the study 32
3.3 Data Source 32
3.4 Sampling Design 32
3.5 Limitations of the study 32 – 33
4. DATA ANALYSIS AND INTERPRETATION 34 – 47
5. FINDINGS 48
5.1 Conclusion 49
REFERENCES
APPENDIX

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List of Figures
No. Title of figure Page No.
4.2 Core objective of having mobile 35
4.3 Current mobile service provider 37
4.4 Number of calls made in a day 38
4.5 Satisfaction level with current service provider 39
4.6 Perception towards Mobile Number Portability 41
4.7 Mobile Number Portability Effects the Service Quality 42

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List of Tables
No. Title of Table Page No.
1.5.1 Introduction to Airtel 16 – 17
1.5.2 Introduction to Vodafone 18
1.5.3 Introduction to BSNL 21
1.5.4 Introduction to Idea 23
4.1 Demographic Characteristic of Respondents 34
4.2 Core objective of having mobile 35
4.3 Current mobile service provider 36
4.4 Number of calls made in a day 38
4.5 Satisfaction level with current service provider 39
4.6 Perception towards Mobile Number Portability 40
4.7 Mobile Number Portability Effects the Service Quality 42
4.8 Income * Number of Calls Crosstabulation 43
4.9 Monthly Income * Objective of having Mobile 43 – 44
4.10 KMO and Bartlett's Test 45
4.11 Total Variance Explained 45
4.12 Rotated Component Matrixa 46
4.13 Principal components & associated Variables 47

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CHAPTER 1
INTRODUCTION
1.1 Telecommunication
The telecom services have been recognized the world-over as an
important tool for socio-economic development for a nation. It is one of the
prime support services needed for rapid growth and modernization of various
sectors of the economy. Indian telecommunication sector has undergone a major
process of transformation through significant policy reforms, particularly
beginning with the announcement of NTP 1994 and was subsequently re-emphasized
and carried forward under NTP 1999. Driven by various policy
initiatives, the Indian telecom sector witnessed a complete transformation in the
last decade. It has achieved a phenomenal growth during the last few years and is
poised to take a big leap in the future also.
1.1.1 Status of Telecom Sector
The Indian Telecommunications network with 621 million
connections (as on March 2010) is the third largest in the world. The sector is
growing at a speed of 45% during the recent years. This rapid growth is possible
due to various proactive and positive decisions of the Government and
contribution of both by the public and the private sectors. The rapid strides in the
telecom sector have been facilitated by liberal policies of the Government that
provides easy market access for telecom equipment and a fair regulatory
framework for offering telecom services to the Indian consumers at affordable
prices. Presently, all the telecom services have been opened for private
participation. The Government has taken following main initiatives for the
growth of the Telecom Sector:
1.1.2 Liberalization
The process of liberalization in the country began in the right
earnest with the announcement of the New Economic Policy in July 1991.
Telecom equipment manufacturing was delicensed in 1991 and value added
services were declared open to the private sector in 1992, following which radio
paging, cellular mobile and other value added services were opened gradually to

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the private sector. This has resulted in large number of manufacturing units been
set up in the country. As a result most of the equipment used in telecom area is
being manufactured within the country. A major breakthrough was the clear
enunciation of the government’s intention of liberalizing the telecom sector in the
National Telecom Policy resolution of 13th May 1994.
1.1.3 National Telecom Policy 1994
In 1994, the Government announced the National Telecom Policy
which defined certain important objectives, including availability of telephone on
demand, provision of world class services at reasonable prices, improving India’s
competitiveness in global market and promoting exports, attractive FDI and
stimulating domestic investment, ensuring India’s emergence as major manufacturing
/ export base of telecom equipment and universal availability of basic telecom
services to all villages. It also announced a series of specific targets to be achieved by
1997.
1.2 TRAI (TELECOM REGULATORY AUTHORITY OF INDIA)
The Telecom Regulatory Authority of India or TRAI (established 1997)
is the independent regulator established by the Government of India to regulate the
telecommunications business in India. The TRAI, which draws regulatory power from
the TRAI Act of 1997 (Amended 2000), is responsible for:
Notwithstanding anything contained in the Indian Telegraph Act,1885,the functions of
the Authority shall be to-
1.2.1 Make recommendations, on a request from the licensor, on the following
matters, namely:
 need and timing for introduction of new service provider;
 terms and conditions of license to a service provider;
 revocation of license for non-compliance of terms and conditions of license:
 measures to facilitate competition and promote efficiency in the operation of
telecommunication services so as to facilitate growth in such services.
 technological improvements in the services provided by the service providers.

 type of equipment to be used by the service providers after inspection of
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equipment used in the network.
 measures for the development of telecommunication technology and any other
matter relatable to telecommunication industry in general;
 efficient management of available spectrum;
1.2.2 Discharge the following functions, namely:-
 ensure compliance of terms and conditions of license;
 notwithstanding anything contained in the terms and conditions of the license
granted before the commencement of the Telecom Regulatory Authority
(Amendment) Ordinance,2000, fix the terms and conditions of inter-connectivity
between the service providers;
 ensure technical compatibility and effective inter-connection between
different service providers.
 regulate arrangement amongst service providers of sharing their revenue
derived from providing telecommunication services;
 lay down the standards of quality of service to be provided by the service
providers and ensure he quality of service and conduct the periodical survey
of such service provided by the service providers so as to protect interest of
the consumers of telecommunication services;
 lay down and ensure the time period for providing local and long distance
circuits of telecommunication between different service providers;
 maintain register of interconnect agreements and of all such other matters as
may be provided in the regulations;
 keep register maintained under clause (viii) open for inspection to any
member of public on payment of such fee and compliance of such other
requirement as may be provided in the regulations;
 ensure effective compliance of universal service obligations;
1.3 TELECOM SECTOR IN INDIA
The telecom industry is one of the fastest growing industries in India.
India has nearly 200 million telephone lines making it the third largest network in the

world after China and USA. With a growth rate of 45%, Indian telecom industry has
the highest growth rate in the world.
History of Indian Telecommunications started in 1851 when the first
operational land lines were laid by the government near Calcutta (seat of British
power). Telephone services were introduced in India in 1881. In 1883 telephone
services were merged with the postal system. Indian Radio Telegraph Company (IRT)
was formed in 1923. After independence in 1947, all the foreign telecommunication
companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a
monopoly run by the government's Ministry of Communications. Telecom sector was
considered as a strategic service and the government considered it best to bring under
state's control.
The first wind of reforms in telecommunications sector began to flow
in 1980s when the private sector was allowed in telecommunications equipment
manufacturing. In 1985, Department of Telecommunications (DOT) was established.
It was an exclusive provider of domestic and long-distance service that would be its
own regulator (separate from the postal system). In 1986, two wholly government-owned
companies were created: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar Telephone Nigam Limited (MTNL)
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for service in metropolitan area.
In 1990s, telecommunications sector benefited from the general
opening up of the economy. Also, examples of telecom revolution in many other
countries, which resulted in better quality of service and lower tariffs, led Indian
policy makers to initiate a change process finally resulting in opening up of telecom
services sector for the private sector. National Telecom Policy (NTP) 1994 was the
first attempt to give a comprehensive roadmap for the Indian telecommunications
sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI
was formed to act as a regulator to facilitate the growth of the telecom sector. New
National Telecom Policy was adopted in 1999 and cellular services were also
launched in the same year.
Telecommunication sector in India can be divided into two segments:
Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of
basic services, national or domestic long distance and international long distance
services. The state operators (BSNL and MTNL), account for almost 90 per cent of

revenues from basic services. Private sector services are presently available in
selective urban areas, and collectively account for less than 5 per cent of
subscriptions. However, private services focus on the business/corporate sector, and
offer reliable, high- end services, such as leased lines, ISDN, closed user group and
videoconferencing.
Cellular services can be further divided into two categories: Global
System for Mobile Communications (GSM) and Code Division Multiple Access
(CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular,
while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are the major growth
drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which along with
rental was the main source of revenue. The reduction in tariffs for airtime, national
long distance, international long distance, and handset price has driven
demand.
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The telecom sector is also afflicted by a number of restraints. These include:
 Sluggish pace of reform process.
 Lack of infrastructure in semi-rural and rural areas, which makes it difficult to
make inroads into this market segment as service providers have to incur a
huge initial fixed cost.
 Limited spectrum availability.
But notwithstanding these constraints, telecom sector has undergone a revolution in
the past decade and has played a major part in bridging the rural-urban divide.
1.4 CLASSIFICATION OF TELECOMMUNICATION SERVICES
 Basic services
 Cellular services
 Internet Service Provider (ISP)

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 CELLULAR SERVICE
 There are five private service operators in each area, and an incumbent
state operator. Almost 80% of the cellular subscriber base belongs to the
pre-paid segment.
 The DOT has allowed cellular companies to buy rivals within the same
operating circle provided their combined market share did not exceed 67
per cent. Previously, they were only allowed to buy companies outside
their circle.
Growth Drivers
Opening up of international and domestic long distance telephony services are growth
drivers in the industry. Cellular operators now get substantial revenue from these
services, and compensate them for reduction in tariffs on air time, which along with
rental was the main source of revenue. The reduction in tariffs for airtime, national
long distance, international long distance, and handset prices has driven demand.
THE KEY PLAYERS IN THE TELECOM MARKET IN INDIA
Cellular Service provider:
 Airtel
 Vodafone
 BSNL
 Spice/Idea
 Reliance
 Tata indicom
 Aircel
 MTNL
 Subscribers
 Wireless subscribers crosses 200 million mark
 Tele density reaches 21.20%
 India has become the second largest wireless network given the exceptional
growth in Mobile subscribers in India.

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The telecommunication services in India have witnessed the
phenomenal change over the last few years. The craze for mobile services in
India is increasing substantially. Keeping the high consumers demand in to
consideration, many big players like Reliance, Airtel, Aircel, Vodafone, BSNL,
Tataindicom, Virgin Mobile etc. has launched the Mobile Service
Portability(MNP) services in the market. Information technology has brought
tremendous change in day-to-day activities of common man to entrepreneurs.
Number of mobile subscriber went up from 10.4 million at the end of 2002 to
545.05 million in feb2010. Mobile as a medium is growing fast with its easy
accessibility and reach. It is not just telecom centric. From a communication tool,
it has emerged as a device for all purposes. In many countries, mobile phones
now outnumber land-line telephones, with most adults and many children now
owning mobile phones. The mobile phone itself has also become a totemic and
fashion object, with users decorating, customizing, and accessorizing their mobile
phones to reflect their personality. In the rationale of modern marketing, the
firm’s existence is dependent on customer’s satisfaction. Therefore, the
knowledge of “what the customer thinks” and “what consequently would
contribute to his satisfaction” is at the requirement of the marketer. The present
study aims to identify the Factors affecting Mobile Phone Users’ Behaviour. It
also intends to know the consumer’s satisfaction with the different services and
its future impact on socio economic changes.
After becoming the second most populated country in the
world, India is set to achieve another record of having half a billion wireless
connections, thus becoming the second largest group of mobile phone users
after China. In fewer than twenty years ago, mobile phones were considered to
be a rare and expensive pieces of equipment used by businesses to a pervasive
low-cost personal item but now it has become a common household item.
Building trust and adapting to the individual and local needs of the community
are critical success factors for the diffusion and success of cutting-edge
information and communication technology. With the introduction of private
sector telecom service provider in the state the competition in the telecom
industry has increased significantly. The aim of study was to objectively
understand the perception of mobile phone users in Amritsar city in the presence

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of the Mobile Number Portability and further capture their satisfaction level that
is influenced by various technical and non technical factors. Specific aspects to
be studied were usage pattern in terms of the purpose for which mobile phones
are generally used by various categories of consumers, level of the satisfaction of
users, reasons for dissatisfaction, if any, level of satisfaction with gadgets and
added services provided, liking for various attributes of the mobile phone
instrument and usage pattern of functionalities and added services.
General overview
MNP is implemented in different ways across the globe. The
international and European standard is for a customer wishing to port his/her number
to contact the new provider (Recipient) who will then arrange necessary process with
the old provider (Donor). This is also known as 'Recipient-Led' porting. The UK is the
only country to not implement a Recipient-Led system, where a customer wishing to
port his/her number is required to contact the Donor to obtain a Porting Authorisation
Code (PAC) which he/she then has to give to the Recipient. Once having received the
PAC the Recipient continues the port process by contacting the Donor. This form of
porting is also known as 'Donor-Led' and has been criticised by some industry
analysts as being inefficient. It has also been observed that it may act as a customer
deterrent as well as allowing the Donor an opportunity of 'winning-back' the
customer. This might lead to distortion of competition, especially in the markets with
new entrants that are yet to achieve scalability of operation.
Technical details
A significant technical aspect of MNP (Mobile Number Portability)
is related to the routing of calls or mobile messages (SMS, MMS) to a number once it
has been ported. There are various flavours of call routing implementation across the
globe but the international and European best practice is via the use of a central
database (CDB) of ported numbers. Network operator makes copies of CDB and
queries it to find out which network to send a call to. This is also known as All Call
Query (ACQ) and is highly efficient and scalable. Majority of the established and
upcoming MNP systems across the world are based on this ACQ/CDB method of call
routing. One of the very few countries to not use ACQ/CDB is the UK where calls to

a number once it has been ported are still routed via the Donor network. This is also
known as 'Indirect Routing' and is highly inefficient as it is wasteful of transmission
and switching capacity. Because of its Donor dependent nature, Indirect Routing also
means that if the Donor network develops a fault or goes out of business, the
customers who have ported out of that network will lose incoming calls to their
numbers. The UK telecoms regulator Ofcom completed its extended review of the UK
MNP process on 29 November 2007 and mandated that ACQ/CDB be implemented
for mobile to mobile ported calls by no later than 1 September 2009,
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Prior to March 2008 it took a minimum of 5 working days to port a
number in the UK compared to 2 hours only in USA, as low as 20 minutes in the
Republic of Ireland, 3 minutes in Australia and even a matter of seconds in New
Zealand. On 17 July 2007, Ofcom released its conclusions from the review of UK
MNP and mandated reduction of porting time to 2 working days with effect from 1
April 2008. On 29 November 2007, Ofcom completed its consultation on further
reduction to porting time to 2 hours along with recipient led porting and mandated
that near-instant (no more than 2 hours) recipient led porting be implemented by no
later than 1 September 2009.
In a decentralised model of MNP, a FNR (Flexible Number Register)
may be used to manage a database of ported out/ported in numbers for call routing.
1.5 INTRODUCTION TO THE COMPANIES
Type Public, Listed on BSE
Founded 1985
Headquarters
New Delhi, India

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Key people Sunil Mittal
Industry Telecom
Products Mobile and Fixed-Line Telecommunication operator
Revenue $6 Billion
Slogan Express Yourself
Website www.airtel.in
Table 1.5.1: Introduction to Airtel
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL Airtel is
the fifth largest telecom operator in the world with over 207.8 million subscribers
across 19 countries at the end of 2010. It is the largest cellular service
provider in India, with over 152.5 million subscribers at the end of 2010. It also offers
fixed line services and broadband services. It offers its TELECOM services under the
Airtel brand and is headed by Sunil Mittal. The company also provides telephone
services and Internet access over DSL in 14 circles. The company complements its
mobile, broadband & telephone services with national and international long distance
services. The company also has a submarine cable landing station at Chennai, which
connects the submarine cable connecting Chennai and Singapore. The company
provides end-to-end data and enterprise services to the corporate customers through
its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile
circles, VSATs, ISP and international bandwidth access through the gateways and
landing station.
Bharti Enterprises has successfully focused its strategy on telecom while
straddling diverse fields of business. From the creation of 'Airtel', one of India's finest
brands, to becoming the largest manufacturer and exporter of world class telecom
terminals under its 'Beetel' brand, Bharti has created a significant position for itself in
the global telecommunications sector. Bharti Airtel Limited is today acknowledged as
one of India's finest companies, and its flagship brand 'Airtel', has over 24 million
customers across the length and breadth of India.

While a joint venture with TeleTech Inc., USA marked Bharti’s
successful foray into the Customer Management Services business, Bharti
Enterprises’ dynamic diversification has continued with the company venturing into
telecom software development. Recently, Bharti has successfully launched an
international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to
export fresh Agri products exclusively to markets in Europe and USA.
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Founded 1983 as Racal Telecom, independent 1991
Headquarters Newbury, England, UK
Key people
Marten Pieters, CEO
Gerard Kleisterlee, Chairman
John Buchanan, Deputy Chairman
Andy Halford, CFO
Industry Mobile telecommunications
Products Mobile networks, Telecom services, Etc.
Revenue ▲ £31.104 billion GBP
Net income ▼ £-1.564 billion GBP
Slogan
Make the most of now (in many countries, their
previous slogan, How are you?, is still used)
Website www.vodafone.com
Table 1.5.2: Introduction to Vodafone
Vodafone is a mobile network operator headquartered in Newbury,
Berkshire, England, UK. is a global telecommunications company headquartered

in London, United Kingdom. It is the world's largest mobile telecommunications
company measured by revenues and the world's second-largest measured by
subscribers (behind China Mobile), with around 332 million proportionate subscribers
as of 30 September 2010. It operates networks in over 30 countries and has partner
networks in over 40 additional countries. It owns 45% of Verizon Wireless, the
largest mobile telecommunications company in the United States measured by
subscribers.
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1.5.1 Hutch Becomes Vodafone
In one of the biggest brand transition exercises in recent times, Hutch,
India’s fourth-largest mobile service provider will be renamed Vodafone. Vodafone is
spending somewhere in the region of Rs 250 crore on this high-profile transition.
Vodafone has acquired 67 per cent in Hutchison Essar from Hong Kong-based
Hutchison Whampoa, and completed the acquisition of Hutchison Essar in May
2007. The brand change that will touch 3.5 crore customers and four lakh shops and
employees will be executed through a media blitz and the pug, which had become
famous with its network advertisement, will remain.
''This marks a significant chapter in the evolution of Vodafone as a dynamic
and ever-growing brand. The brand change over the next few weeks will be unveiled
nationally through a high profile campaign covering all important media,'' a news
agency quoted the company statement as saying.
Leading broadcaster Star India has entered into an exclusive deal with
Vodafone Essar for the latter's re-branding campaign to Vodafone from Hutch.
Growth of Hutchison Essar (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a
company that in 1994 was awarded a licence to provide mobile telecommunications
services in Mumbai (formerly Bombay) and launched commercial service as
Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004,
Hutchison Whampoa had acquired interests in six mobile telecommunications
operators providing service in 13 of India's 23 licence areas and following the

completion of the acquisition of BPL that number increased to 16. In 2006, it
announced the acquisition of a company that held licence applications for the seven
remaining licence areas.
In a country growing as fast as India, a strategic and well managed
business plan is critical to success. Initially, the company grew its business in the
largest wireless markets in India - in cities like Mumbai, Delhi and Kolkata. In these
densely populated urban areas it was able to establish a robust network, well known
brand and large distribution network -all vital to long-term success in India. Then it
also targeted business users and high-end post-paid customers which helped
Hutchison Essar to consistently generate a higher Average Revenue Per User
("ARPU") than its competitors. By adopting this focused growth plan, it was able to
establish leading positions in India's largest markets providing the resources to expand
its footprint nationwide.
In February 2007, Hutchison Telecom announced that it had entered into
a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct
and indirect equity and loan interests in Hutchison Essar Limited for a total cash
consideration (before costs, expenses and interests) of approximately US$11.1 billion
or HK$87 billion.
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1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through
ESSAR acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra
Pradesh and Chennai
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in
Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch
brand
2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar
Pradesh West' and 'West Bengal'

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2005: Acquired BPL, another mobile service provider in India
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has
successfully launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G
network.
Hutch was often praised for its award winning advertisements which all follow a
clean, minimalist look. A recurrent theme is that its message Hello stands out visibly
though it uses only white letters on red background. Another recent successful ad
campaign in 2003 featured a pug named Cheeka following a boy around in unlikely
places, with the tagline, Wherever you go, our network follows. The simple yet
powerful advertisement campaigns won it many admirers.
Type Communication Service Provider
Availability Countrywide except Delhi & Mumbai
Revenue US$ 20.04 billion
Owner The Government of India
Key people Kuldeep Goyal(CEO)
Founded 19th century, incorporated 2000
Website www.bsnl.co.in
Table 1.5.3: Introduction to BSNL
Bharat Sanchar Nigam Limited abbreviated BSNL is a state-owned
telecommunications company headquartered in New Delhi, India. BSNL is
one of the largest Indian cellular service providers, with over 83.6 million subscribers
as of January 2011, and the largest land linetelephone provider in India. However, in

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recent years the company's revenue and profit plunged into heavy losses due to
intense competition in the Indian telecommunications sector.
BSNL is India's oldest and largest communication service provider (CSP). It had a
customer base of 90 million as of June 2008. It has footprints throughout India except
for the metropolitan cities of Mumbai and New Delhi, which are managed
by Mahanagar Telephone Nigam Limited (MTNL). As of June 30, 2010, BSNL had a
customer base of 27.45 million wireline and 72.69 million wireless subscribers.
Main Services being provided by BSNL
BSNL provides almost every telecom service, however following are the main
Telecom Services being provided by BSNL in India:-
1. Universal Telecom Sevices : BSNL is major provider of Cellular Mobile
Telephone services using GSM platform under the brand name Cellone & Excel
(BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony in
the country.
2. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile
Telephone services using GSM platform under the brand name Cellone & Excel
(BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony in
the country.
3. Internet: BSNL provides internet services through dial-up connection
(Sancharnet) as Prepaid, (NetOne) as Postpaid and ADSL broadband (BSNL
Broadband). BSNL holds 55.76% of the market share with reported subscriber base of
9.19 million Internet subscribers with 7.79% of growth at the end of Mar-10. Top 12
Dial-up Service providers, based on the subscriber base, It Also Provides
OnlineGames Via Its Games on Demand(GOD).
4. Intelligent Network (IN): BSNL is providing IN services like tele-voting, toll free
calling, premium calling etc.

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Type
Spice: Public, Listed on BSE
Idea: Subsidiary
Founded
Spice: 1997
Idea: 1995
Headquarters
Spice: Mohali, India
Idea: Indore, Delhi, Pune, India
Key people
Spice: Dilip Modi
Idea: Chairman: Kumar Mangalam Birla ; MD: Sanjeev Aga
Industry Telecom
Products Mobile operator
Revenue
http://www.moneycontrol.com/india/news/business/idea-cellulars-
revenue479-/394751
Slogan
Spice: Spice Hai toh life hai (If there's Spice then there's
Life.)
Idea: An !dea can change your life.
Website Spice: Spice Telecom ; Idea: www.ideacellular.com
Table 1.5.4: Introduction to Idea
1.5.2 Introduction to Spice

One of the service providers of mobile telephony in India Spice Telecom,
is the brand name of Spice Communications Limited.Spice Telecom is presently
operating in the states of Punjab and Karnataka i.e. in 2 circles of 23 Telecom Circles
of India. Spice Communications Limited has been promoted by Dilip Modi of Modi
Wellvest Private Limited .
40.80% of the company is owned by Modi Wellvest; Modi is promoted
by Mr. Dilip Modi and Super Infosys. Telekom Malaysia Berhad (TM) owns 39.20%
through TMI India Limited, Mauritius. TMI India Limited is a wholly owned
subsidiary of TM's international investment holding company TM International Sdn
Bhd (TMI).
Spice Telecom is a flagship company of MCorp Global
24
(www.mcorpglobal.com) a cellular mobile telephone services provider in India.
1.5.2.1 Introduction to Idea
IDEA Cellular is a publicly listed company, having listed on the Bombay
Stock Exchange (BSE and the National Stock Exchange (NSE) in March 2007.
Idea Cellular is a leading GSM mobile service operator with pan India
licenses. With a customer base of over 36 million in 15 service areas, operations are
soon expected to start in Orissa and Tamil Nadu-the first steps in providing pan India
services covering over 90% of India's telephony potential.
A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has
the distinction of offering the most customer friendly and competitive Pre Paid
offerings, for the first time in India in an increasingly segmented market.
Customer Service and Innovation are the drivers of this Cellular Brand. A
brand known for many firsts, Idea was the first to launch GPRS and EDGE in the
country. Idea has received international recognition for its path-breaking innovations
when it won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years.
IDEA Cellular is part of the Aditya Birla Group, India's first truly
multinational corporation. The group operates in 25 countries, and is anchored by

over 100,000 employees belonging to 25 nationalities. The Group has been adjudged
'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic
Times and Wall Street Journal Study 2007.
25
1.5.2.2 Idea acquires Spice Telecom
Idea Cellular, an Aditya Birla Group company, along with Telecom
Malaysia International (TMI) announced the acquisition of 40.8 per cent stake in
Spice Communications Limited (Spice) at a price of Rs. 77.30 per share. TMI is an
emerging leader in Asian telecommunications with over 44 million subscribers and a
presence in 10 countries. The operational synergies emerging out of this merger
would augur well for both the telecom players.
The acquisition of Spice gives Idea the much needed headway in Punjab
and Karnataka states that account for more than 10 per cent of India’s wireless
subscribers.
The entire process of the merger between both the companies would take
six to eight months to complete. Post merger, Idea is looking at a pan-India presence.
The deal also gives Idea the opportunity to leverage.
Idea Cellular, the leading GSM mobile services operator has licenses to
operate in all 22 service areas of India with commercial operations in 11 service areas.
With a customer base of over 26 million, it runs operations in Delhi, Himachal
Pradesh, Rajasthan, Haryana, Uttar Pradesh (East), Uttar Pradesh (West) &
Uttaranchal, Madhya Pradesh & Chattisgarh, Gujarat, Maharashtra & Goa, Andhra
Pradesh, and Kerala, holds spectrum for Mumbai, Bihar, Orissa, Tamil Nadu
(including Chennai), and Karnataka, and licenses for the remaining six service areas.
With the planned launch of services in Mumbai, Bihar and Jharkhand, Orissa
and Tamil Nadu (including Chennai) towards the end of the calendar year, Idea's
footprint will soon cover approximately 90 per cent of India's telephony potential.
Idea has acquired Spice Telecom and the deal consists of 4 transactions:
 Idea will acquire the Modi’s 40.8% stake in Spice (for Rs 2,720 crore).

 Idea will launch the mandatory 20% open offer for the Spice shareholders,
26
jointly with Telecom Malaysia International (TMI).
 Idea will merge Spice with itself and offer a 14.99% stake to TMI through a
preferential allotment.
 The Idea-TM combine will launch the open offer at Rs 77.30 jointly with
TMI, which now holds 39.2%in Spice
The official brand name has been changed from Spice to Idea in these
circles w.e.f. 19th December 2008.
Number Lookup Services
Service providers and carriers who route messages and voice calls to MNP-enabled
countries might use HLR query services to find out the correct network of a mobile
phone number. A number of such services exist, which query the operator's home
location register (HLR) over the SS7 signalling network in order to determine the
current network of a specified mobile phone number prior to attempted routing of
messaging or voice traffic.
1.6 Mobile Number portability (MNP)
One of the most frequent definitions that prevail in the telecom circles for
number portability is: "Number portability is a circuit-switch telecommunications
network feature that enables end users to retain their telephone numbers when
changing service providers, service types, and or locations." Why mobile number
portability (MNP)? When fully implemented nationwide by both wireline and
wireless providers, portability will remove one of the most significant deterrents to
changing service, providing unprecedented convenience for consumers and
encouraging unrestrained competition in the telecommunications industry. In short,
this is the best method to increase the efficiency of the service provider by increasing
the competition, thereby ensuring better services in all respects. From the subscribers’
perspective, this is a deceptively simple and very welcome change, because they can
change wireless service providers without worrying about notifying friends, family
and business contacts that their wireless number is changing. In addition, being able
to ‘port’ a number from one provider to another eliminates the hassle and expenses of

changing business cards, stationery, invoices and other materials for businesses. From
the wireless carrier’s perspective the change is anything, but simple. Virtually all of
wireless carriers’ systems are affected. Especially any system that relies on mobile
identity numbers (MINs) or mobile directory numbers (MDNs) will be affected.
Examples of critical systems and processes that would be affected are: billing,
customer service, order activation, call delivery, roamer registration and support, short
messages service center, directory assistance, caller ID, calling name presentation,
switches, maintenance and CSC systems, home location registers (HLRs), and visiting
location registers (VLRs).
27
1.6.1 MNP Implementation Globally
Globally, Singapore was the first country to implement MNP in 1997,
followed by Hong Kong in 1999 and Australia in 2001. Off late, many countries have
adopted the MNP model to prevent market doldrums and putting pressure on service
providers to furnish more services at a competitive price level. However, it has not
been able to produce any significant results in these markets. While it has worked in
markets like Hong Kong and Australia, it failed to bear fruit in the UK, France,
Germany, Pakistan, Ireland, Malta, among others. MNP worked in Hong Kong due to
the speedy porting process and the availability of already implemented solution (for
fixed-line services). In Australia, the regulator effectively promoted number
portability and was able to maintain the maximum porting time of just under three
hours. Furthermore, in Finland, where initially the implementation was viewed as a
success due to dearth of minimal contract periods and high migration incentives,
operators failed to sustain the momentum.

The failure in most markets where MNP was implemented is attributed
28
to factors like half-hearted implementation, issues related to contract, lack of
consumer awareness, overboard of paperwork, technical difficulties and poor
customer service.
The neighboring country Pakistan, the first country in Southeast Asia to
introduce MNP in March 2007, experienced less than 1% portability. One of the
reasons for such poor response is the pitiable customer service and time consuming
process during porting the number. Pakistan has over 90 mn cellular subscribers with
approximately 95% of them pre-paid. According to experts, disaster recovery and
business continuity are also critical elements for MNP providers and hence, it is
essential to have a backup center connected over secured redundant leased lines. This
center should also be located on a different seismic area. There is no doubt that if
implemented successfully, MNP can be a big boon for Indian cellular subscribers.
However, considering the overall market dynamics and past experiences, the approach
of the government and gaps in implementation planning, its success can be strictly
questioned in the long run. The regulators therefore need to build their fundamentals.
To make MNP utilitarian for consumers, the government needs to have a clear
roadmap, strategic policies and should define strict guidelines and timelines for the
service providers.

29
CHAPTER 2
REVIEW OF LITERATURE
James E. Katz (1999) explains that as the competition in telecom area intensified,
service providers took new initiatives to customers. Prominent among them were
celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk
time schemes. The most important consumer segments in the cellular market were the
youth segment and business class segment.
Moschis, G.P (1976) from the Department of Mass Communication, HPU, Shimla,
has studied on the mobile usage behaviour of students of Himachal Pradesh
University. The study indicates that mobile phone has converted the whole world in
to a global village. Their study reveals that among the different mobile service
providers, the government is a better and preferred service provider.
The general communication habits of mobile phone users in today’s society vary
depending on the location, time and individual circumstances of the user, as would be
expected. Another aspect of mobile communications that would benefit from further
investigations by Hoflich(2004) and Katz(2003) in the ‘’urban environment’’ effects
of its uses in public question concerning this physical performance of public
communication, and its impact on the way others in the environment behaves in an
areas not well developed.
Liu, C.M. (2002) examines the causes and effects of Mobile Number Portability
(MNP) and provides a survey of its implementation in Europe. We first examine the
competitive effects and the costs of introducing MNP. Next, we discuss how to charge
for MNP. We argue that a price cap regime starting from the average cost of porting is
likely to provide appropriate incentives. Finally, we review the recent experience with
implementing MNP in Europe. Differences in the speed of porting and porting
charges appear to explain part of the differences in the use of MNP across countries.

Preet kanwal (2007) documented that the growth of Mobile Telephony in India is
leading itself into colossal proportion. It demands the role of regulatory authority in
protecting consumer interests. The paper discusses role of Telecom Regulatory
Authority of India (TRAI) in evolution of Quality of Service (QoS) benchmarks.
Paper also underlines world trend of Mobile Number Portability (MNP). Mobile
Number Portability enables a subscriber to switch between services or operators while
retaining the original telephone number, without compromising on quality, reliability,
and operational convenience. MNP increases the level of competition among service
providers and rewards customers with the best customer service, network coverage,
and service quality.The Paper also highlights worldwide implementation of MNP.
Chukwuyere Ebere Izuogu documented that the Nigerian mobile
telecommunications market has continued to grow in leaps and bounds creating
opportunities for further investments. These investments have continued to increase
exponentially in proportion to the increase in the subscribers’ base which currently
stands at 96,110,538 connected lines. This has made the Nigerian telecommunications
market the largest in the whole of Africa and the fastest growing from a developing
nation. The service providers have continued to introduce innovative service offerings
to their numerous customers. The latest addition to this is the proposed mobile
number portability to be superintended by the Nigerian Communications Commission
(NCC) which is supposed to go live on the network of all mobile service providers
before the ending of 2010. This service will enable mobile subscribers to retain their
mobile numbers when changing service providers.
30
No doubt, this will create more value for mobile subscribers who will not have to
incur more costs when switching service providers.
This article highlights instances where competition and or consumer protection issues
are likely to undermine the rationale of NCC for mandating mobile number portability
in the Nigerian telecommunications market. It also looks at the new role of the NCC
as the sector regulator in addressing issues arising from the new regime.

Stefan Buehler, Justus Haucap examines that this paper examines the consequences
of introducing mobile number portability (MNP). We show that if the sole effect of
introducing MNP is the abolishment of switching costs, MNP unambiguously benefits
mobile customers. However, if MNP also causes consumer ignorance, as telephone
numbers no longer identify networks, mobile operators will increase termination
charges, with ambiguous net effect on the surplus of mobile customers. We examine
how extensions such as MNP based on call-forwarding, termination fee regulation,
and alternative means of carrier identification affect these findings and discuss policy
implications.
31

32
CHAPTER 3
RESEARCH METHODOLOGY
3.1 NEED OF THE STUDY
 The main need of the study is to find out perception of customers towards
mobile service providers in the era of mobile number portability.
3.2 OBJECTIVES OF THE STUDY
1. Drawing out factors affecting customers choice of mobile service provider.
2. Role of demographic variables in choice of mobile service provider.
3. To study the customer perception towards Mobile Number Portability.
3.3 DATA SOURCES
The project study is based on primary data which has been collected through
questionnaires.
3.4 SAMPLING DESIGN:
3.4.1 SAMPLING UNIT:
Person who have the mobile phone in Amritsar city.
3.4.3 SAMPLE SIZE:
Size of sample in research is 100 outlets of Amritsar city.
3.4.4 SAMPLING TECHNIQUES:
Sampling technique which has been used is random sampling.
3.5 LIMITATIONS
Although all efforts have been taken to make the results of survey as accurate as
possible but the survey suffers from the following limitations:
 The research will be conducted in a limited area.
 The internet information can be irrelevant.

 Time will be a major constraint.
 Smaller sample may not always give better results. Sample may not be true
33
representative of the whole population.
 The possibility of biased responses can’t be ruled out.
 Due to language problem it is possible that the respondents are not be able to
understand the questionnaire and can cause misleading results.
 Lack of availability of full information.
 Lack of interest of respondents.

44
56
11
25
12
18
34
19
22
29
25
5
46
28
21
5
34
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Table 4.1: Demographic Characteristic of Respondents
Categories Count Percentage
Gender Female
Male
44
56
Age
upto 20Years
21 to 25 Years
25to 35 years
35 to 50 years
above 50 years
11
25
12
18
34
Education Level
Upto Matric
Sr. Sec. (+2)
Graduation
Post Graduate
Above Post Graduation
19
22
29
25
5
Monthly Income Upto Rs.8000PM
Rs. 8000 to Rs15000PM
Rs. 15000PM to Rs.25000 PM
Above Rs. 25000PM
46
28
21
5
Interpretation: The data presented in the above table indicates that sample is
dominated by male respondent as it is indicated by 56% respondent in the sample.
Age analysis of respondents indicates that most of respondents fall in the age group of
above 50 years as it was indicated by 34% respondents in the sample. The information
related to educational qualifications of the respondents indicates that majority of the
respondent falls in those categories who are graduate i.e 29% followed by Post
graduate i.e 25%. Information pertaining to level of education of respondents sample
is dominated by those respondents who are having monthly income ranging upto
Rs.8000.

35
Table – 4.2 Core Objective of Having Mobile
Sr. no. Options No. of
Respondents Percentage
1. Official 24 24
2. Show off 6 6
3. Internet 2 2
4. To be in touch with
Family and Friends
41 41
5. Passion 4 4
6. Dis-satisfaction with
landlines
10 10
7. STD Calls 6 6
8. Security 6 6
9. SMS 1 1
Total 100 100
Core objective of having mobile
Official
24%
Fig. 4.2: Core objective of having mobile
Show off
6%
Internet
2%
To be in touch
with Family and
Friends
41%
Dis-satisfaction
with landlines
10%
Passion
4%
STD Calls
6%
Security
6%
SMS
1%

36
Interpretation: Economy of the country is growing at the fast rate. Uses of
motivational needs in identifying mobile phone uses and related features have been the
focus of study for many researchers. Research studies shows that over the years, the
expenditure on non-food items has grown faster that the expenditure on food items.
India is witnessing a great change in the lifestyles and buying patterns of consumers.
The number of modern gadgets like telecommunication and its accessories and other
machines in the number of house holds is now on the increase. Yesterday’s luxuries
are now becoming today’s necessities. Keeping these into consideration an attempt
was made to assess the purpose of possessing a mobile phone from the respondents.
The survey indicates that most of the respondent keeps mobile to be in touch with their
family and friends as it was indicated by 41% respondents in the sample. Official and
dis-satisfaction with landline phone was indicated by 24% and 10% respondent
respectively. Another 6%, 2%, 4%, 6%, 6%, 1%, respondent respectively
indicated that they are having mobile phone services for Show off, Internet, Passion,
STD Calls, Security, SMS.
Table 4.3: Current Mobile Service Provider
Sr. No. Options No. Of Respondents Percent
1. VODAFONE 22 22
2. RELIANCE 7 7
3. AIRTEL 21 21
4. BSNL 17 17
5. IDEA 18 18
6. TATA 8 8
7. VIRGIN 3 3
8. AIRCEL 3 3
9. VIDEOCON 1 1
TOTAL 100 100

37
Current Mobile Service Provider
VIDEOCON
VODAFONE
VIRGIN
3%
TATA
8%
BSNL
17%
IDEA
18%
AIRCEL
3%
1%
Fig. 4.3: Current mobile service provider
22%
RELIANCE
7%
AIRTEL
21%
Interpretation: Over the last few years the competition in the mobile services
industry has increased significantly as these services started as one dominated by
private sector enterprises and the government honestly followed a policy of “managed
competition” by licensing more than one service provider in a telecom circle. All most
all service providers are based on new technologies that were state-of-the art and
supposed to be having the cheapest mobile telecom tariffs in the world. Since all the
services providers were new and had the same vintage of technology, their
competition was more in terms of price and conditions of sale. Keeping this into
consideration an attempt was made to know the market share of mobile telecom
service providers on the basis of customer subscription of mobile services by the
customers of Amritsar city. It is seen that Vodafone and Airtel, are dominates with
22% and 21% customers with them. BSNL and Idea having the neck to neck
competition with 18% and 17% market share respectively. Tata, Reliance, Virgin,
Aircel, Videocon was indicated by 8%, 7%, 3%, 3%, 1% respondents respectively.

38
Table 4.4 Number of Calls made in a Day
Sr. No. Options No. of
Respondents
Percentage
1. 0-5 Call In A Day 53 53
2. 5-10 Calls In A Day 27 27
3. 10-15 Calls In A Day 7 7
4. More Than 15 Calls In
Day
13 13
TOTAL 100 100
Number of Calls made in a Day
53%
13%
0-5 Call In A Day
5-10 Calls In A Day
10-15 Calls In A Day
More Than 15 Calls In
Day
Fig. 4.4: Number of Calls made in a Day
7%
27%
Interpretation: In earlier day the mobile phone being viewed as an expensive luxury
only affordable to the power and rich in India Today, not only in all urban areas, also
in smaller towns and remote rural farms, the mobile phone has become a common,

39
affordable, and convenient communication device. Reduction in the tariff has made
affordable to all and increased its uses significantly. An attempt was made to know
the number of call made per day by the respondents. The analysis indicates that 53
percent respondents make average 5 calls per day. 27 percent respondents make 5 to
10 calls per day. 13 % respondents are those who make more than 15 calls in a day.
Table 4.5: Satisfaction level with Current Service Provider
Sr. No. Options No. of
Respondents
1. Highly Satisfied 26
2. Satisfied 37
3. Neutral 26
4. Dissatisfied 11
5. Highly Dissatisfied 0
TOTAL 100
26%
37%
Fig. 4.5: Satisfaction level with Current Service Provider
26%
11%
0%
Satisfaction level with Current Service
Provider
Highly Satisfied
Satisfied
Neutral
Dis-satisfied
Highly Dis-satisfied

Interpretation: Satisfaction of customer is essential for retention of customer’s and
for continuous sales of the products and services of the company to customers. This
establishes the needs for and the importance of customer satisfaction. The satisfaction
of consumers is different from one to another. Became, each consumer has the
different behavior in their life. An attempt was made to know the satisfaction level of
respondents with their current mobile service provider. An analysis indicates that
nearly, the 1/3rd of the respondents i.e. 37% are satisfied with their current mobile
service provider. It is seen that 26% respondents are Highly satisfied and Neutral with
their current service provider. As we are living in the era of Mobile Number
Portability, some respondents are dissatisfied i.e. 11% with their current mobile
service provider.
40
Table 4.6: Perception towards Mobile Number Portability
Sr. No. Factors Yes % of
Yes
No % of
No
TOTAL
Respondents
1. Time Consuming 77 77 23 23 100
2. Costly 2 2 98 98 100
3. Easy 73 73 27 27 100
4. Flexibility 99 99 1 1 100

41
Time Consuming Costly Easy Flexibility
120
100
80
60
40
20
No 23 98 27 1
Yes 77 2 73 99
Fig. 4.6: Perception towards Mobile Number Portability
Interpretation: An attempt was made to know the perception of respondents towards
Mobile Number Portability. An analysis indicates that:
 Maximum no. of respondents i.e. 77% perceives the Mobile Number
Portability is Time consuming.
Portability is not costly because its cost is just Rs. 19.
Portability is easy in use.
 Almost all the respondents i.e. 99% perceives the Mobile Number Portability
is flexible in nature.
0
Perception towards MNP

42
Table 4.7: Mobile Number Portability Effects the Service Quality
Sr. No. Options No. of Respondents Percentage
1. Yes 62 62
2. No 38 38
TOTAL 100 100
Yes
62%
No
38%
Fig. 4.7: Mobile Number Portability Effects the Service Quality
Interpretation: Above data and chart analysis depicts that with the advent of
coming of portability services the respondents believe that the service providers will
surely improve their services which are rendered to the general public. The main
reason behind this is that the service providers want to retain their customers because
when the service provider will improve their services this will bring more customers
to them.

43
Table 4.8: Income * Number of Calls Crosstabulation
Income Number of Calls TOTAL
Sr. No. 0-5 5-10 10-15 Above 15
1. Upto 8000 35 9 2 0 46
2. 8000-15000 14 8 3 3 28
3. 15000-25000 2 8 2 9 21
4. Above 25000 2 2 0 1 5
TOTAL 53 27 7 13 100
Interpretation: Above data depicts that the respondents who are having the less
income make less number of calls. As the income is growing, the number of calls
made by the respondents are also growing.
Table 4.9: Monthly Income * Objective of having Mobile
Objective Monthly Income Total
Upto 8000 8000-15000 15000-25000 Above
25000
Official 0 7 13 4 24
Show off 6 0 0 0 6
Internet 1 0 1 0 2
To be in touch
with Family
and Friends
19 17 5 0 41
Passion 4 0 0 0 4

44
Dissatisfaction
with landlines
8 2 0 0 10
STD Calls 4 2 0 0 6
Security 3 0 2 1 6
SMS 1 0 0 0 1
TOTAL 46 28 21 5 100
Interpretation: The above data depicts that the respondents lies in the range up to
8000 income are mostly students and the housewives. The main objective of the
students for using mobiles is to be in touch with friends and family and the
housewives use mobile phones because of dissatisfaction with the landline phones.
The respondents lies in income group of 8000 to 15000 are mostly service
people. Their main objective behind using mobile phones in touch with friends and
family.
The respondents lies in the income group of 15000-25000 and above 25000 are
business class people and they use mobile phones because of their official work such
as remain in touch with the clients.
Factor Analysis
Factor analysis is a method of data reduction. It does this by seeking
underlying unobservable (latent) variables that are reflected in the observed variables
The purpose of factor analysis is to discover simple patterns in the pattern of
relationships among the variables. In particular, it seeks to discover if the observed
variables can be explained largely or entirely in terms of a much smaller number of
variables called factors. In our case suppose each of 100 people, who are all familiar
with important factors of using particular mobile service provider, rate each of 12
variables on the question. We could usefully ask about the number of dimensions on
which the ratings differ.

45
Table 4.10: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
.534
Bartlett's Test of
Sphericity
Approx. Chi-
Square
323.269
df 66
Sig. .000
The above table indicates KMO and Bartlett’s test of sphericity This measure varies
between 0 and 1, and values closer to 1 are better. The Bartlett's Test of Sphericity
tests the null hypothesis that the correlation matrix is an identity matrix. These tests
provide a minimum standard which should be passed before a factor analysis (or a principal
components analysis) should be conducted.
Table 4.11: Total Variance Explained
Compo
nent
Initial Eigenvalues
Extraction Sums of
Squared Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 2.886 24.053 24.053 2.886 24.053 24.053 2.518 20.983 20.983
2 1.748 14.564 38.617 1.748 14.564 38.617 1.880 15.663 36.646
3 1.683 14.029 52.645 1.683 14.029 52.645 1.683 14.026 50.672
4 1.233 10.273 62.919 1.233 10.273 62.919 1.470 12.247 62.919
5 .952 7.937 70.855
6 .889 7.412 78.267
7 .781 6.508 84.775
8 .574 4.787 89.562
9 .422 3.518 93.081
10 .375 3.125 96.205
11 .251 2.095 98.301
12 .204 1.699 100.000
Extraction Method:
Principal Component Analysis.

46
Table 4.12: Rotated Component Matrixa
Sr.
No.
Factors Components
1 2 3 4
1. Call Rate
-.114 .272 .712 .039
2. Network Quality
.174 .344 .472 .542
3. Attention paid by service center
employee .804 -.026 .148 .095
4. Satisfaction With Time gap Between
Service sought and Deliver .835 -.005 .225 .077
5. Relationship with vendor/Sales Person
.186 -.024 .051 .661
6. Trust in Company/Brand Name
-.075 .062 -.256 .808
7. Accessibility to the customer care on
phone .741 .121 -.218 .016
8. Responsiveness of Customer care
.646 .287 -.358 .097
9. Proximity of Service Center
-.095 .268 -.724 .175
10. Overall satisfaction level with the
service quality of mobile service
provider
-.150 .724 .099 .156
11. Accountability towards customers
.156 .732 -.274 -.069
12. Advance features provided in service
.262 .673 .170 .028
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
After careful examination of the factor loadings, the 12variables were associated with
the respective dimensions as shown in Table below.

47
Table 4.13: Principal components & associated Variables
Service Factors Convenience
Factors
Economic
Factors
Brand
Factors
Responsiveness of
Customer care
Proximity of
Service Center
Call Rate Trust in
Company/Brand
Name
Attention paid by
service center
employee
Accountability
towards customers
Relationship
with
vendor/Sales
Person
Satisfaction With
Time gap Between
Service sought and
Deliver
Overall
satisfaction level
with the service
quality of mobile
service provider
Network
Quality
Accessibility to the
customer care on
phone
Advance feature
provided in
services
Principal components & associated Variables indicates that first factor indicating the
Service factor is the combination of Responsiveness of customer care, Attention paid
by service center employee, Satisfaction With Time gap Between Service sought and
Deliver, Accessibility to the customer care on phone accounting 24.053% variance of
the total variances. The second Factor is the combination Proximity of Service
Center, Accountability towards customers, Overall satisfaction level with the service
quality of mobile service provider, Advance features provided in service which
accounts 14.564% variance of total variance. Third factor is the Economic factor in
which only call rate lies and which account 14.029% variance of the total variances.
Fourth factor is the Trust in Company/Brand Name, Network Quality, Relationship
with vendor/Sales Person which accounts 10.273% of total variance.

48
CHAPTER 5
FINDINGS
1. Maximum number of respondents core objective of having mobile phone is to
be in touch with friends and family followed by official purpose.
2. There is an almost equal market share of Vodafone and Airtel followed by idea
and BSNL in the Amritsar city.
3. Maximum number of respondents made the calls in between 0 to 5 in a day
followed by 5-10 calls in a day.
4. Maximum number of respondents are satisfied with their current mobile service
provider equally followed by highly satisfied and neutral.
5. Most of the respondents perceives mobile number portability as a time
consuming process. In addition to this, maximum of the respondents found it as
a cheap way to shift to the most user friendly mobile service provider. Also
most of the respondents found it as easy and flexible mode of portability.
6. Majority of the respondents agreed with the fact that MNP has a powerful
impact on its service quality & companies now lay more focus on its quality
improvement.
7. Maximum number of respondents using their particular mobile service provider
because of some important factors like call rate, network quality and Brand
name.

49
5.1 Conclusion
Information technology has brought tremendous change in the present socio-economic
environment. The tele communication services in India have increased its
horizon. The craze for mobile services in India is increasing substantially. The entry
of private sector in the field of communication industry has intensified the
competition. Therefore, the knowledge of “what the customer thinks” and “what
consequently would contribute to his satisfaction”, is at the requirement of the
marketer. The present study aims to access the perception of the respondents towards
Mobile service providers in the era of Mobile Number Portability.
With the help of this project, I have found that the important factors for
choosing a particular mobile service provider are Call Rate and Network Quality. In
the era of Mobile Number Portability mostly respondents are still satisfied or having
the neutral response with their current mobile service provider.
With the help of this project, I have found that the respondents are having the
positive perception towards mobile service providers as well as mobile number
portability because they think that mobile number portability service will improve the
quality of service offering by the mobile service provider.

50
References
1. Kotler,N., Keller K., “Marketing Management”, Prentice Hall of India pvt.
Ltd., 2007, New delhi.
2. Malhotra ,N., “Marketing Research”, Pearson Education, Fifth Edition, 2008,
New delhi.
3. Liu, C.M. (2002). The effects of promotional activities on brand decision in
the cellular telephone industry. The Journal of Product & Brand Management,
11(1), 42-51.
4. James E. Katz: (1999) Connection: social and cultural studies of telephone in
America life Brunswick.NJ:
5. Moschis, G.P. (1976) ‘Social comparison and informal group influence’,
Journal of Marketing Research, Vol. 13, pp.237–244.
6. Preet Kanwal( 2007) An Empirical Study Of Trust And Commitmentin
Cellular Users Of Selected Telecom Service Providers University Business
School,Panjab University, Chandigarh(Published Thesis)
WEBSITES USED:
 http://www.airtel.in
 http://en.wikipedia.org/wiki/Idea_Cellular
 http://www.mobiles.in/mobile-service-providers.html
 http://www.trai.gov.in/
 http://www.scribd.com/doc/8201189/study-of-students-preference-different-mobile-
service-providers

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