Definition:
Research methodology is the specification of the method of acquiring the information needed to the structure or to solve the problem at hand.
It is the pattern of the framework of the project that stipulates what information is to be collected, from which source and by what method.
Primary Source Data:
A questionnaire was prepared helped in gaining an insight view of the factors effecting the customer needs and related issues. The addresses of various customers were given and with the help of the questionnaire prepared, I need to find out the first hand information regarding the share of the Toyota in every segment in the market and the satisfaction level of each customer. Further I need to find out the future plans of the customer regarding the purchase of the Toyota products.
Each day I met 5 customers for 4 weeks the sample size of 100 respondents was decided upon.
Secondary Data:
Secondary data is the annual report of the company and the official.
SAMPLING
Sampling Procedure:
The sampling technique use here was Quota Sampling, which is one of the most commonly used non-probability sample design.
Sampling Unit:
The target population from which the sample is chosen is owners of all brands of cars.
Sample Size:
The sample of 50 from the target population was chosen.
India is the world’s second-largest telecommunications market. The telecom infrastructure in India is expected to increase at a compound annual growth rate (CAGR) of 20 per cent during the period 2008–2015 to reach 571,000 towers in 2015.
The mobile phone industry in India is likely to contribute US$ 400 billion to the country’s gross domestic product (GDP) and has the potential to generate about 4.1 million additional jobs by 2020, The mobile ecosystem generated approximately 5.3 per cent of the GDP for India, and directly supported 730,000 jobs in 2012, according to the report titled ‘Mobile Economy India 2013’ released by GSMA in association with the Boston Consulting Group (BCG).
“India is a place for investment and innovation for Vodafone. India is one of the two biggest markets for us along with Germany. The company is investing nearly US$ 3 billion over the next two years in India in expanding its network infrastructure and distribution channel in the country,” according to Mr Vittorio Colao, CEO, Vodafone Plc.
History
Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and nowadays people exclude postal or any other raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph.
Introduction of the telephone
In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. By 1881, the Government changed its earlier decision and a licence was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai (Madras) and Ahmedabad. 28 January 1882, is a Red Letter Day in the history of telephone in India. On this day Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchange in Kolkata, Chennai and Mumbai. The exchange at Kolkata named "Central Exchange" was opened at third floor of the building at 7, Council House Street
Key Statistics
The telecommunications industry attracted foreign direct investments (FDI) worth US$ 12,889 million in the period April 2000–September 2013, according to data published by Department of Industrial Policy and Promotion (DIPP).
The country’s GSM operators added 1.66 million rural subscribers in October, taking their overall user base to 274.32 million, according to data released by the Cellular Operators’ Association of India (COAI). The telecom companies are looking at rural India to add users and revenues.
Market Dynamics
India could emerge as a low-cost hub for testing security-sensitive IT products used in telephone and other critical infrastructure networks, with the country being recently given the 'authorising member nation' status in the Common Criteria Recognition Arrangement (CCRA). Laboratories in India could offer testing services at much lower costs compared to other CCRA labs in Western markets, highlighted Mr Rajan Mathews, Director General, COAI – the industry body representing GSM operators.
India has over 50 per cent mobile-only internet users, possibly the world’s highest compared to 20–25 per cent across developed countries, according to Avendus Capital. More so, gaining impetus from the increasing penetration of smartphones and a whole host of mobile-only content, the Indian mobile advertising market is estimated to reach Rs 2,800 crore (US$ 457.52 million) by 2016 from the current Rs 180 crore (US$ 29.41 million).
Increasing demand for smart phones and availability of high speed networks, such as 3G and 4G services, has resulted in the rapid growth of the Indian market, besides offering immense opportunities to players involved in the business. The RNCOS’ research study, ‘Indian Mobile Gaming Market Forecast to 2017’ estimated the market to reach Rs 18.5 billion (US$ 302.28 million) in 2017 and grow at a CAGR of nearly 24 per cent during the period 2013–2017.
Key Developments & Investments
Vodafone India, the local arm of UK's Vodafone Group Plc, plans to spend around Rs 7,000 crore (US$ 1.14 billion) in the country, in addition to its annual capex of Rs 5,000 crore (US$ 817 million) over the next few years, to expand its data network and coverage, said Mr Marten Pieters, CEO, Managing Director, Vodafone India.
ZTE Corp is targeting US$ 800 million revenue from India next year. The company expects a significant portion of the revenue growth to come from its handset business. In addition, ZTE has bagged a deal to manage Airtel’s 4G network in Kolkata and Punjab.
The Chennai-based mobile phone retailers, UniverCell will double its retail footprint to 1,000 outlets by the end of March 2015 from the present 500.
Viom Networks is looking to add between 1,500 and 2,000 mobile towers by this fiscal end. The company is expected to invest approximately Rs 150 crore (US$ 24.51 million).
Micromax will start assembling phones at its Rudrapur plant by the first quarter of 2014. The facility employs over 400 people.
Government Initiatives
An empowered group of ministers (EGoM) has cleared the mergers and acquisitions (M&A) guidelines for the telecommunication sector, in order to encourage consolidation in the sector.
The Telecom Commission has ratified the Rs 5,000 crore (US$ 817 million) government proposal to give away 2.5 crore mobile handsets at subsidised prices.
The telecom tower provider industry has been granted the 'infrastructure' status, a move that will make tower providers eligible for viability gap funding, higher limit on external commercial borrowings (ECBs), lower import duties and exemptions on excise duty on telecom infrastructure equipment.
The Government of India's decision to allow 100 per cent foreign direct investment (FDI) in telecommunication sector will enable foreign telecommunication companies to buy out their Indian partners. At present, India permits up to 74 per cent FDI in the sector – 49 per cent through the automatic route and the rest after Foreign Investment Promotion Board (FIPB) approval.
The Government intends to make India a teleport hub, enabling it to become an up-linking/down-linking centre. The initiative is expected to facilitate foreign investments, better technology and sustainable employment opportunities in the country. The Government has recently given its nod to 74 per cent of FDI in DTH, IPTV, and mobile TV.
According to the new guidelines issued by the DoT, foreign entities can participate in the 2G auctions directly and obtain a licence. The initiative is expected to make the upcoming auctions more attractive to certain foreign players such as Telenor, which wanted to bid directly without an Indian partner in the auctions. There will be a lock-in period of three years.
Road Ahead
The DoT will encourage telecom service providers to share their infrastructure, according to Mr M F Farooqui, Telcom Secretary, and Government of India. The telecom industry and the Government need to work together to attract investments and exploit advances in technology. With the success in voice-connectivity being carried forward to data and emerging technologies including cloud computing, the government is targeting broadband connectivity from 15 million currently to over 600 million in 2020.
On the back of the ongoing investments into infrastructure, the country is projected to witness high penetration of internet, broadband, and mobile subscribers in the near future. Various policy initiatives by the Indian government have led to a complete transformation of the industry in the last decade. It has achieved a phenomenal growth during the last few years and is poised to grow further.
The real-action starts now for the Indian telecom industry at the onset of new financial year. Amidst the scams and licensing issues, India is still one of the fastest growing telecom markets. The growth is driven by increased adoption of mobile phones and seamless rural connectivity. There is still ample space for growth left in the market, before moving to maturity and consolidation efforts.
Finally Consolidation is here
Telecom business in India is dependent on volumes, rather than margins. The prediction of 2010 around consolidation of operator market into 4 or 5 national operators is now likely to become a reality. Due to repeated regulator interventions on voice tariffs, the voice ARPU in Indian market is one of the lowest in the world. This helps a lot in improving penetration in the market, particularly in rural areas. However, it raises serious challenges to operator’s profitability.
New Revenue Stream through Next Gen Services
However, in a highly price sensitive market, there has been significant uptake of Value Added Services, particularly that of entertainment and social networking applications. The Indian market is very price sensitive and characterised by high volumes and low margins. Since the launch of 3G, the Government of India has focused on increasing broadband connectivity throughout India to provide e-learning, tele-medicine and government services. Operators are also exploring new business model like mobile money, M2M, surveillance, cloud Storage, OTT messaging, authentication services and mobile advertising. While voice revenues stagnate, video, data and other new business models will keep on balancing the revenue streams for operators.
Rural is going to be the focus
The rural tele-density in India is about 38% as on January 2013 according to TRAI. Industry observers have predicted that the next wave of growth will come from rural areas and it looks most likely to happen going by the current trends. Hence, mobile operators are expected to focus more on programs targeted at improving penetration in rural markets. We may see resurgence of Rural focussed campaigns and first time internet users on mobile may surprise the industry with data and VAS consumption. Operators will adopt innovative strategies to reach out to rural population through public/private, profit/non-profit and organized/unorganised organization networks.
Need for regulatory support
Regulation will have to do a lot of support to re-invoke the vigour of Indian telecom sector. A policy to ensure that National Development goals are met through dynamic market play and advancing technology is the need of the hour. Transparent policy on license and spectrum, and support for opening of new business models and segments will be of importance to this. A government staged/supported FDI in telecom will revive the sectors uncertain outlook.
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