000 community service centres in the rural India to provide a broadband connectivity in 2008-09 The

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18 billion7 and the foreign direct elephone g4 investment (FDI) of around US$ 15 billion led India to a leading destination for the foreign investment As per the Goldman Sachs India will become the third- largest economy in the world As per the revised estimates by Goldman Sachs India will exceed the US and will become second-largest economy after china .

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2    Huge Market PotentialEvery year around 30-40 million people in India join the middle the middle class segment The upper middle class segment of Indias spends around 6%8 of their earnings on the telecom services The consumer market of India is one of the biggest consumer markets in the world The purchasing power of the consumers in India is increasing enormously because of the rise in disposable income and it led to the tremendous growth in the economy According to the census 2001, more than 54%9 of the population of Indias was below the age of 25 years of age According to the TRAI 2008-2009, around 200 million people will be added into the league and this brings tremendous growth in the consuming class As per the data given the TRAI report 33 of Indias population will going to reside in the urban areas by 2026, as compared to the 28% in the 2001 Low Labor CostLets not forget this fact that India attracts investors across the globe because of its low labour cost Ministry of Commerce, Government of India has approximated that off shoring operations to India will provide a cost benefit as much as 40 to 60 per cent11, as compared to the developed countries   This news is also in the backdrop of the fact that India has also emerged as one of the major R&D hub hovering above hundred Fortune 500 companies in India An interesting example is of Nokia, which has set up its manufacturing operations in India considering the fact that there is long term sustainable demand for mobile telephony This initiative will help the company to respond better to the market changes and act according to the customer requirement Nokia has pumped in more than US$ 150 million into its Chennai facility location for that matter Major PlayersBharti-Airtel stands tall in the wireless market with around 24% market share followed by R-Com Though R-Com   stands second in the arena still it has managed to cross 100 million subscribers12 Both Bharti-Airtel and R-Com is expecting a cut-throat competition in the Indian telecommunication market in the near future, and is looking forward to diversify its risks by entering into new geographies with already 12-13 players present in the market This would invite severe pressure on the profit margins Whether it an Aircel or Etisalat, the new telecom operators would not remain the fringe players in the Indian telecom market, but would try to rock the applecart of the existing players by coming up with varied schemes However on the fillip side the growth in the Indian telecom market could start tapering off very soon According to an industry analyst the subscriber base will not be expanding beyond 800 million mark in the coming years from its current 400 million Also, ARPUs in India have been steadily falling ($5-$6)13 There have been talks on 3G and IPTV pushing the growth, but it all seems to far-fetched The third generation of the mobile services (3G) will be used by the telecom operators to gain more spectrums Besides, the services will be available only in the urban areas The average revenue per user in India is continuously decreasing as the players in India are in the race to tap the huge market by reducing the tariffs Wireless Service Providers (Market share)Source: www .

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gov inMajor InvestmentsThe expanding Indian telecom market has been attracting large amounts of investment which is likely to grow with the help of entry of new companies and launch of new services One UAE born company has roped in filmstar Amir Khan with a whopping 35 crore contract   Buoyed by the rapid increase in the subscriber base, huge investments are being made into this sector The Russian government is likely to pick up the equity amounting to around US$ 700 million in the Sistema Shyam TeleServices Ltd (SSTL), a joint venture of Russia-based telecom major Sistema and Shyam Group of India, by the end of this financial year SSTL is also planning to invest more than US$ 5 5 billion over the next 5 years in India A Norway-based telecommunication operator Telenor has bought 60 per cent of stake in Unitech Wireless for  about US$ 1 23 billion The latter is into the real estate A Japanese telecom major NTT DoCoMo acquired 27 31 per cent of equity capital of Tata Teleservices for about US$ 2 6 billion in November 2008 Bahrains Batelco has signed a deal to buy the 49 per cent in the Chennai-based S-Tel, a GSM service provider, for around US$ 225 million BSNL, Indias leading player in telecom industry in the revenue terms, will put in about US$ 1 16 billion in the WiMax project Vodafone Essar will be investing around US$ 6 billion over the next few years in order to increase their mobile subscriber base from 40 million to over 100 million Telecommunication operator Aircel, which has launched GSM mobile services in the Bangalore in February 2009, is planning to invest around US$ 220 58 million over the next year to set up its base stations across the state Exploring the rural telecom opportunityIt has been observed that despite several attempts over the last ten years, telecom infrastructure in rural areas is lagging behind the expected levels There has been a phenomenal spurt in the growth of tele-density in the country with the evolution of new wireless technologies, but the  gap between the urban and rural tele- density has been increasing The facts show the rapid increase in the percentage growth of subscriber base in rural India from June 2008 to March 2009 Here the table shows the share of different telecom operators in rural India .

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As per the table Bharti has maximum share in rural elephone g4 white elephone 5.0 smartphone ips 1280x720 android 4.4.2 mtk6582 quad-core 1.3ghz 1gb ram 4gb rom 8mp (white) cell phone elephone 5.0 smartphone ips 1280x720 android 4.4.2 mtk6582 quad-core 1.3ghz 1gb ram 4gb rom 8 India while Shyam, HFCL ,BPL and MTNL has no reach It has been observed that despite  several attempts over the last ten  years,china wholesale smartphones, telecom infrastructure in rural  areas is lagging behind the expected  levels There has been a phenomenal  spurt in the growth of tele-density  in the country with the evolution of  new wireless technologies, but the  gap between the urban and rural tele- density has been increasing The above figure shows that only 15-20% population in rural India contributes to 80% subscription while 72% population of rural india contribute only 28% to the subscription It is expected that 250 million people will go mobile and out of them 100 million are expected to come from rural areas as per the recent data, the rural mobile penetration is highest in Punjab with 20 69% most companies are working hard by selling their product and services in the rural areas of the rerion As a result of that effort, now the rural area penetration of mobile coverage has gone up to 39% from 13%, a couple of years back V POLICY INITIATIVES TAKEN BY GOVERNMENTThe government has taken many measures to alleviate the rapid growth for the Indian telecom industry 100% foreign direct investment (FDI) is permitted through the channel of  automatic route in telecom equipment manufacturing FDI ceiling in the  telecom services has been raised to 74% Introduction of a unified access licensing regime for the telecom services on a pan-India basis Plan to introduce the mobile number portability The government of India is implementing a program of connecting 66,822 uncovered villages under the Bharat Nirman programme The government will also invest US$ 2 billion to set up 112,000 community service centres in the rural India to provide a broadband connectivity in 2008-09 The Department of Telecommunications (DoT) has declared that the foreign telecom companies can bid for the 3G spectrum without partnering with Indian companies Only after winning a bid, they need to apply for a unified access service license (UASL) and partner them with an Indian company in the accordance with the FDI regulations Subscriber GrowthIndia added around 130 million new customers in 2008-09, the largest around the globe Indias cellular base witnessed close to 50 per cent growth in 2008, with an average 9 5 million customers added every month By April 2009, the total number of telephone connections in India reached 441 47 million With this immense growth, the overall tele-density reached to 37 94 at the end of the April 2009 According to the Business Monitor International, India is currently adding to 8-10 million mobile subscribers every month It is estimated that by the mid 2012, around half of the Indias population will own a mobile phone This would translate into the 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by2012 Source: www trai gov inVARIOUS NEEDS OF INDIAN CUSTOMERSExpressed needs are the basic needs a customer takes into consideration while choosing a telecom service provider The expressed needs of a customer are summarized as under:Quality of serviceVariety of Products offeredAvailability in different statesValue Added ServicesOther than these, there are some latent needs of a customer which are not much prevalent in the Indian market but the customer is willing for those So a new player is supposed to have a birds eye-view on those points as well These points are:Facility of number portabilityWeb access at cheaper costAs market is competitive, the cost should be cheaper Network coverage should be better 3G for rural and urban sector at affordable prices Schemes should be there for the existing customers as well Tariff plans for ISD calls should be reduced This is because with the exponential increase in the number of students going abroad to study, the numbers of ISD calls made by them and their relatives have also increased VII POINTS CONSIDERED BY A CUSTOMER FOR PURCHASING A MOBILE CONNECTIONThere are some factors that have been identified by us with regard to the consideration that a customer makes before choosing any mobile service These factors have been deduced after performing a survey of 150 residents of Allahabad city who use mobile phone services The factors that tend to rule the choices of people are given below according to their priorities:TechnologyNetworkTariffsPromotional activitiesCelebrity involvementBrand imageValue added servicesAfter sales servicesAvailability of complementary productsThese factors tend to serve as prerequisites for not only the existing and flourishing companies of the Indian market, but also those companies that plan to enter into and then fight for their existence in the saturating Indian Telecommunication industry The companies should keep in mind that the customers are the main rulers of any industry that is based on the sole idea of service to the customers and gaining profits through better service day by dayThe model shown above coherently depicts the structured process flow of any customers mind when he goes to purchase a new mobile connection VIII