Matrix Cellular International LTD - Project-Final
Matrix Cellular International LTD - Project-Final
Matrix Cellular International LTD - Project-Final
R INTERNSHIP
PROJECT REPORT
ON
PGPM(MBA)
Degree Programme
Of
SUBMITTED BY :
SANDEEP SINGH
(BATCH 2009-2011)
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INSTITUTE OF MANAGEMENT AND DEVELOPMENT
“ANALYSISAND
“ANALYSIS ANDIDENTIFICATION
IDENTIFICATIONOF
OFSMALL
SMALLMEDIUM
MEDIUMBUSINESS
BUSINESS(SMB)
(SMB)
CUSTOMERS
CUSTOMERSWITH
WITHMATRIX
MATRIXCELLULAR”
CELLULAR”
BY
BY
PRABHMEET SINGH
SANDEEP SINGH
…………………………
PGPM(MBA)
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INSTITUTE OF MANAGEMENT AND DEVELOPMENT,NEWDELHI
ACKNOWLEDGEMENT
LAST BUT NOT THE LEAST, I WISH TO THANK MY PARENTS , AS IT WAS WITH
THEIR BLESSING THAT I WAS ABLE TO CONCLUDE THIS INTERNSHIP.
SANDEEP SINGH
PGPM(MBA)
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CONTENTS
2. Company Analysis 8
Strategies 31
Strength 32-34
4. Context 38-42
5. Research Objective 55
Research Methodology 56
Sample Size 57
Procedure 58-59
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Importance of data 60
Questionnaire 62
Sample Surveys 63
6. Competitor Analysis 65
Analysis 73-76
8. Suggestions 78
9. Thanks Note 77
10. Bibliography 78
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EXECUTIVE SUMMARY
PROJECT TITLE:
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ORGANIZATION : MATRIX CELLULAR LIMITED
There is high degree of competition in the SIM & 3G ,data card services. The intense
competition makes the companies to take necessary steps. The companies have to introduce
newer marketing strategies to attract the new corporate customers, as well as retain the old
customers. This survey will help to know the market share of Matrix cellular Broadband &
Telephone services in the SMB (Small Medium Business) corporate sector in Delhi and other
part of india as well. And also help in the identification of projected requirement in 6 months.
The effect of various marketing strategies can be reviewed. This will help in
designing suitable marketing strategy to reach more & more customers.
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COMPANY PROFILE
COMPANY ANALYSIS
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connect the Indian outbound traveller – individuals, students and corporate - with a convenient, cost-
effective mobile and data service have enabled us to become the undisputed market leader.
Matrix introduced the concept of local connectivity in India, by offering country-specific international
SIM cards. We ensure that you stay in touch without paying huge mobile bills. Moreover, since the
cellular phone/data connections are local to the country you are travelling to, you enjoy better coverage
and connectivity.
We offer destination-specific SIM cards for Argentina, Australia, Austria, Belgium, Brazil, Canada,
China, France, Germany, Greece, Hong Kong, Holland, Italy, Japan, Malaysia, Mauritius, Mexico, New
Zealand, Singapore, South Africa, South Korea, Spain, Switzerland, Sri Lanka, Taiwan, Thailand, U.A.E.,
U.S.A. and U.K.
Since inception, we have aimed to be the best in service, quality, innovation and choice. Even today, we
are dedicated to the same. We are also constantly increasing our portfolio of countries and focusing on
unique communication solutions. This way you stay connected wherever you are and that too, without
being concerned by exorbitant international roaming expenses.
• Employees : 800+
• Mobility Voice & Data Services across all India footprints covering all 23
telecom circles of the country.
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- 7 Ku Band Satellite Earth Stations
COMPANY PROFILE
Founded in 1995, Matrix introduced the concept of local connectivity in India, by offering
destination-specific mobile connections to international travelers. With a pan-India network of
over 1000 professionals in areas of sales, marketing, customer service, operations and logistics,
Matrix has partnerships with over 30 country-specific international service providers.[4] The
company is also a recipient of numerous Excellence Appreciations in Sales and Marketing from
many of its clientele. In May 2009 they released the Deutsche Bank Matrix credit card.
Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is one of
the largest investments made in the world outside Singapore, in the company.
The company’s mobile network equipment partners include Ericsson and Nokia. In the case of
the broadband and telephone services and enterprise services (carriers), equipment suppliers
include Siemens, Nortel, Corning, among others. The Company also has an information
technology alliance with IBM for its group-wide information technology requirements and with
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Airline Partners
Standard Chartered
Axis Bank HDFC Bank
Other Partners
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Nortel for call center technology requirements. The call center operations for the mobile services
have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.
Company Background
Matrix cellular Limited, a part of Matrix cellular, is India’s leading provider of
telecommunications services. The businesses at Matrix cellular have been structured into three
individual strategic business units (SBU’s) – mobile services, broadband & telephone services
(B&T) & enterprise services. The mobile services group provides GSM mobile services across
India in 23 telecom circles, while the B&T business group provides broadband & telephone
services in 94 cities. The Enterprise services group has two sub-units – carriers (long distance
services) and services to corporate. All these services are provided under the Matrix cellular
brand.
India’s premier telecom company in the field of telecom terminals and technology tie ups
with world leaders like “ Siemens, Goldstar, Tatacom and Casio. It is the first company in
India to export telephones to U.S.A and has finalized plans to manufacture GSM terminals
in India.
Matrix cellular controls about 20% of the Total Telecom market in India. As he puts it, it was a
mixture of vision, good luck and hard work by a team of about 10 – 12 senior people. The early
beginnings in 1985 were in manufacturing telephone handsets. They did not have the expertise to
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do telephone exchanges, jelly- filled cables had become a commodity and their capital
investment was high.
tele- Ventures Limited was incorporated on July 7, 1995 for promoting investments in
telecommunications services. Its subsidiaries operate telecom services across India. Tele-
Milestones
Telecom Services
• MATRIX CELLULAR – Biggest footprint in India covering 32 country and largest GSM
network with over 15000 users in abroad.
• First & Largest Pvt. Company to launch Fixed line Service in India starting from delhi
ncr – Over 1000 subs.
• First & only Indian company to operate Telecom Services outside India – Seychelles.
• First Private company to have Fiber Gateway for Data & Voice at Chennai & 7 Ku Band
Gateway for Internet bandwidth.
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Our Network
Transport System
• Optical Fiber Cable (OFC) used for network for higher Performance & Reliability
• Synchronous Digital Hierarchy (SDH)(Nortel) for transport over the OFC Network
We at Matrix cellular always think in fresh and innovative ways about the needs of our
customers and how we want them to feel. We deliver what we promise and go out of our way to
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SERVICES OFFERED
TELEVENTURES
Cellular communication makes life easier. But it brings along the anxieties of escalating bills,
especially if you are a frequent traveler, since international roaming costs are exorbitant.
Cut down your international mobile expenses by almost 85% with a country-specific mobile
connection from Matrix. Enjoy lower call rates, free incoming calls in most countries and
experience seamless connectivity. Matrix offers convenient mobile solutions vis-Ã -vis
international roaming, calling cards, phone cards or pre-paid cards.
Our destination-specific mobile connections enable you to enjoy the services provided by the
network of the country at the most economical tariffs. We save you the hassle of getting a mobile
connection on arrival in that country, and spending your valuable foreign exchange on clearing
mobile bills. Matrix is the perfect solution to escalating international mobile bills, poor
connectivity and unwanted calls from telemarketers while roaming abroad. Since it is a post paid
mobile connection it takes care of the recharging problems experienced with prepaid cards and
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the Communication problems faced with calling cards. You also get itemized bills, so you
knowExactly what you have paid for. We also offer you the facility of viewing bills online.
Our unique combination of low airtime rates, global coverage and courteous 24X7 customer care
gives us an edge in the travel communications industry and make us the preferred partner of
many businesses, government agencies, individual travellers and students.
Roam free with Matrix international roaming SIM cards in the following countries - Argentina,
Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, Greece, Hong Kong,
Holland, Italy, Japan, Malaysia, Mauritius, Mexico, New Zealand, Singapore, South Africa,
South Korea, Spain, Switzerland, Sri Lanka, Taiwan, Thailand, U.A.E., U.K. and U.S.A.
Note:
Matrix talk plans are not valid for use while on a cruise. Calls made during a cruise are charged
maritime rates and are at the discretion of the cruise lines
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GPRS (General Packet Radio Service) is available with almost every GSM network. GPRS is pre
activated on our SIM cards and standard charges are applicable, as determined by each network.
INDIAN SOLUTION:
Enjoy seamless connectivity and flexible post-paid talk plans in India with Matrix. Become a
new Vodafone post-paid mobile customer with Matrix.
Matrix is associated with one of the most dynamic and efficient networks in India - Vodafone
Essar. We provide local post-paid mobile services, BlackBerry® solutions and data connections
for Delhi and the National Capital Region.
Our post-paid connections come with all the facilities namely, national and international
roaming, data cards, GPRS and other Value-added services. That's not all! You get access to
24x7 toll free customer care, get a dedicated Account Manager, and get value added services
activated at minimal time and enjoy many more conveniences.
Features
No more call drops or patchy coverage while on the move; thanks to the Vodafone network. \
Choose from our range of talk plans to suit your needs. From a Lifetime plan to high value plans
with inbuilt talk time, we offer you all.
Services:
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Communicate, whenever you want to, not just in plain words, but also in more exciting,
innovative yet simple new ways. Choose from our range of services like Caller tunes, Missed
Call Information, Vodafone Alerts, Call Filter Service.
Choose from a range of convenient payment options with us. Avail services like Standing
Instructions to debit your credit card account monthly and Electronic Clearing System (ECS) to
directly debit your bank account for your monthly bill payments. Or just call us to get the
payment collected from your doorstep.
Other services:
We are a one stop solution for handsets, repairs and mobile accessories. We also undertake
collection, repair of any faulty handset provided by Matrix and delivery of standby handsets for
that period. Conditions apply.
Getting a post-paid mobile connection abroad could be a nightmare for students. They do not
have a credit history in their country of stay and could end up paying huge deposits for a local
SIM card. Prepaid SIM cards are also inconvenient. Avoid all hassles!
Get a Matrix student mobile connection before departure. We offer international SIM cards for
students going to U.K., U.S., Australia, France, Singapore and Germany.
We offer post-paid local mobile numbers with excellent tariff plans and free minutes of talk time.
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Payments can be made in Indian Rupees. We also offer special offers for parents going abroad to
visit their children.With the facilities we offer, huge international roaming bills, expensive call
rates, limitations of pre-paid SIM cards and landlines will be a thing of the past for the students.
Features:
Payments: Payments can be made by the family in India. Therefore you can spend your money
on other important things when abroad.
Ideal if you are living on a sharing-basis and wish to maintain your own account: No splitting of
calls and expenditure; What’s more, it will be your own personal number.
Your identity when you are abroad: Give your number to friends, associates and while applying
for jobs etc .
• Matrix 1 SIM allows an Indian traveller to roam the world with a single mobile
connection. Our international roaming SIM card allows you to take your GSM mobile
phone overseas, without incurring high roaming charges.
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• All you need to do is replace your phone's existing SIM card with Matrix 1 SIM card
when you travel abroad. Receive free incoming calls in 50 countries. With a Matrix 1
SIM international mobile service, enjoy seamless connectivity in over 130 countries.
• The Matrix global SIM uses Call back technology to ensure you get the lowest rates. It
works like your normal mobile phone, with the exception of a minor difference when
making a call. Receiving a call on the SIM card is the same as receiving a call on any
normal mobile phone.
Features:
CORPORATE SOLUTION:
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• Matrix enables you to stay connected to your business when you are travelling overseas.
We offer a full range of voice and data communication solutions that are tailored to fit
your particular needs.
•
• In a fast-changing world, we offer customised solutions geared to the customer’s
individual needs. As the customer, you choose products and services that best suit your
requirements and budget.
• At the core of our approach is a commitment to simplicity. Simplicity drives down cost; it
makes it easier to keep everything working; it helps you stay connected in our fast-
changing world.
Our range of services enables you to communicate effectively with your
• We understand that the needs of every business are different, so we'll never suggest a
one-size-fits-all system. We'll work with you to identify your specific needs, and then
create an effective solution that can be scaled, adapted or migrated as your business
changes.
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3G CARD SLOUTION:
Introduction
Get instant access to your e-mail and internet when travelling abroad. With a Matrix 3G data
card, you can now work anytime and anywhere; at mobile broadband speeds.
Study - get your work done in the library or Wi-Fi hot spots
Plug in our 3G USB modem into your laptop and use the fastest available connection, with
mobile broadband speeds of up to 1.8 Mbps. Its neat, compact design makes it easy to use; you
can easily swap it between laptops for use at work, home or on the move.
Features:
Benefits:
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Pay in Indian Rupees
B2B SOLUTION:
After a decade of successful international SIM card retail business in India, Matrix started its
bulk reseller business in 2004. Our goal to meet the changing demands of international mobile
rental industry has fulfilled the demand for a single core provider of various international
telecom networks for small to medium sized rental companies; at the same time extending
Matrix’s own client base and geographical reach even further. We deal with the majority of the
leading mobile rental companies in the world.
Innovative Partnership
We strive to foster a working relationship where our success is measured by our client's success.
Feedback has emphasized satisfaction with the following aspects of our performance:
A Matrix bulk buyer is a business partner who collaborates with us to re-sell our product and
services to their own client base or establishes a client base with Matrix. Matrix and the partner
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collaborate by identifying sales opportunities and improve product marketability and
profitability. We are open for any kind of possible business model, revenue sharing etc.
Matrix aims to redefine the traditional role of a wholesaler from being a supplier to one of a true
partner; actively engaged in developing solutions to meet the challenges of the international
mobile rental industry. Our bulk sale business model is truly unique. Every solution is tailor-
made to your market requirements. In essence, we are a mobile rental company for rental
companies.
MATRIX ADVANTAGE:
As mobile phone markets continue to change, retaining existing customers while adding new
ones requires intelligent, aggressive marketing strategies. Your success depends largely upon
retaining and growing your customer base.
Matrix can provide your company the backbone to expand your network coverage and help you
increase SIM stocks of global networks which is required to enter the market as the low-cost
player. This will give you the ability to deliver your product to more people, faster and more
reliably, and without investment in any costly infrastructure.
Key benefits:
Worldwide coverage
Through direct operator relationships and partner channels, we have got it covered! We can
provide country-specific Post-Pay-SIMs for more than 25 networks around the world.
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multiple clients. In addition there is no minimum order quantity; you can order either one or
hundred.
Low tariffs:
The bottom line is lower calling costs. Our understanding of the mobile rental industry enables
us to negotiate better tariffs suitable for you. Due to the high volume of purchase, (in most cases
the rates we offer are cheaper than buying directly from the network) and low operating costs
(our back offices are in India), we can offer you some of the cheapest call rates. Call volume is
As mobile phone markets continue to change, retaining existing customers while adding new
ones requires intelligent, aggressive marketing strategies. Your success depends largely upon
retaining and growing your customer base.
Matrix can provide your company the backbone to expand your network coverage and help you
increase SIM stocks of global networks which is required to enter the market as the low-cost
player. This will give you the ability to deliver your product to more people, faster and more
reliably, and without investment in any costly infrastructure.
Key benefits:
Worldwide coverage
Through direct operator relationships and partner channels, we have got it covered! We can
provide country-specific Post-Pay-SIMs for more than 25 networks around the world.
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Low tariffs :
The bottom line is lower calling costs. Our understanding of the mobile rental industry enables us
to negotiate better tariffs suitable for you. Due to the high volume of purchase, (in most cases the
rates we offer are cheaper than buying directly from the network) and low operating costs (our
back offices are in India), we can offer you some of the cheapest call rates. Call volume is also
regularly analysed to establish destination-specific rates, thus lowering costs to your home
country.
Billing On-time accurate billing is a key factor in the mobile reseller industry. Matrix has a track
record of simplifying and streamlining the complexities of billing from various networks. We
can offer a complete solution that covers a wide range of functionality; including rating,
reporting and invoicing.
Support:
We provide 24-hour support in English for all networks. You do not have to deal with various
languages, time zones or different procedures.
• MOBILE
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We offer you mobile solutions targeted for your business needs. We create price plans
that work for your business along with a range of features.
• VOICE
Our voice services give you the right tools, to suit the needs of small, medium and large
enterprises and to stay ahead.
OFFICE SOLUTION:
Manage your business more efficiently and effectively, with Matrix cellular’s Office
Solutions, Easy Mail and Data Card.
We bring you a comprehensive suite of data technologies for all your strategic
connectivity needs.
2) ISDN BRI
6) CENTREX Facility
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• E-BUSINESS SERVICES
We offer you a range of services that help to keep your business running 24x7.
• SATELLITE SERVICES
We provide you connectivity, where ever you take your business. Our Satellite Services
bring you the benefits of access in remote locations.
• CARRIER SERVICES
India’s first private long distance communications service provider with world-class
Voice and Data communication services.
• INTERNATIONAL SERVICES
Get the communication solutions, your business needs, to stay connected worldwide with
our International Services.
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STRATEGIES …
Segments
• Corporate Segment are accounts with Revenue Potential of Rs. 50K + per month
• SME
• Commercial
• Residential
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• SME / COMMERCIAL / RESIDENTIAL / PCO team operate from Hubs and are
directly handled by outsource employees (ISO) who report to company employees (of
respective segment) at the HUBs
Corporate Strategy
• The Group Synergies of Mobility, Broadband and Long Distance are to be further
strengthened and leveraged.
• Non Voice Products such as Audio Bridging and DSL would keep increasing there pie in
the Revenue Rupee.
SME Strategy
• High End DSL and total Telecom Solutions packaged to garner 60% + Revenue Share in
first 6 months.
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RWA Strategy
• Comprehensive data of RWAs with office bearers, Influential Persons, no. of Matrix
cellular Telephone customers, ARPU etc.
• Almost all RWAs contacted and Centrex activated for more than 100 RWAs
• Branding at the entrance gates with painting of Gates, provision of Security Guard cabins
• Relationship building with the RWA thru regular get-togethers, group meetings etc
STRENGTHS…
THEIR STRENGTH :
Their network
Their people
Their Future :
Broadband
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Operational Excellence
Reducing churn
Tightening costs
Utilizing capacity
Their Culture :
Defining Moments
Being best-in-class
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Responsible :-
Customers,
Employers,
Community,
Shareholders and
Ethical :-
Ethics
Integrity
Honesty and
Customer,
Employees,
Suppliers and
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LITERATURE SURVEY
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Today, Indian SMEs understand the critical transformational impact of technology on their
business, in an increasingly global setting.
In India, small and medium industries play a vital role in the growth of the economy. Small
industries have a 40% share in industrial output, producing over 8000 value-added products.
They contribute nearly 35% in direct export and 45% in the overall export from the country.
They are one of the biggest employment-providing sectors after agriculture, providing
employment to 28.28 million people.
However SMEs in India, which constitute more than 80% of total number of industrial
enterprises and form the backbone of industrial development, suffer from the problems of sub-
optimal scale of operation and technological obsolescence. Indian SMEs are facing a tough
competition from their global counterparts due to liberalization, change in manufacturing
strategies and turbulent and uncertain market scenario.
Innovation has always been the hallmark of small and medium enterprises. SMEs that integrate
innovation can reap significant benefits. Studies conducted by US Department of Commerce,
revealed that since World War II, 50% of all innovations and 95% of radical innovations, have
come from new and smaller firms {2}. The key process in the economic force of changes, as
described by Schumpeter, is the introduction of innovation and culture of innovation in the
enterprise. The innovation process is seen as a cycle involving trial and error, where problems, at
some stage of development lead to the need for reevaluation of the earlier stage of the innovation
process.
Economists think there’s a missing link in India’s economic evolution. The country leap-frogged
straight from being predominantly agriculture-based to a services-led economy. Somewhere in
between, the country missed out on industrial development, considered a crucial part of the
growth process.
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But, if there is one part of Indian industry that has the promise to fill this gap, it’s the small and
medium scale sector. This end of the Indian industrial spectrum is following a rather interesting
evolutionary trajectory. There are clearly three stages in the growth path followed by the sector
in the post-independence history of Indian industry.
The first stage is when most small units were tied to the apron strings of large manufacturers and
were essentially suppliers of either raw materials or intermediate products, or were providers of
other essential finishing products, such as packaging material.
In addition, there were also some which actually produced most of the products of behalf of the
large companies. The big ones would then, after carrying out some desultory quality checks,
stamp their name on the product and sell it as their own. This practice was popular among
FMCG and durables companies.
Information technology has played a big role in the growth of the services sector, as well as in
improving the sector’s contribution to GDP. But, fundamentally, a large part of that really flows
from a buyer-vendor relationship. Most of India’s leading IT players are actually suppliers of
software, data and voice services to large companies based in USA or Europe.
But, as the bug of entrepreneurship bit deeper into the Indian psyche, a new breed of small units
started taking hold. These were small-to-medium units with new technology, new management
practices and new enterprise-wide systems. They saw the world as their market, not restricted by
any state or national boundaries, or being tied down to one large buyer.
They realised the necessity of building new brands and invested money in them, scaling up size
and manpower gradually. Many of these companies also made either greenfield investments or
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small acquisitions overseas.
Some of them have today become preferred suppliers to a large number of Fortune 500
companies, and are transiting from their small-medium status to the big boys’ club. The quest to
find the missing link from the Indian industrial continuum probably ends here.
The Indian telecom market has been displaying sustained high growth rates. Riding on
expectations of overall high economic growth and consequent rising income levels, it offers an
unprecedented opportunity for foreign investment. A combination of factors is driving growth in
the telecom market, promising rich returns on investments.
India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian
telecom network is the eighth largest in the world and the second largest among emerging
economies. The industry has witnessed an explosive growth in recent years. Teledensity has
more than doubled from 2.3 per cent in 1999 to 4.8 per cent in 2002. However, the world average
is almost 7.5 times and the Asian average 4.5 times the Indian average. The Indian telecom
market size of over US $ 8 billion is expected to increase three fold by 2012. The expansion of
the telecom industry in India has been fuelled by a massive growth in mobile phone users, which
has reached a level of 10 million users in December 2002, an increase of nearly 100 per cent in
2002. This exponential growth of mobile telephony can be attributed to the introduction of
digital cellular technology and decrease in tariffs due to competitive pressures. For the first time
in India, the growth of cellular subscriber base has exceeded the fixed line subscriber base.
However, cellular penetration is still 1 per cent as compared to world average of around 16 per
cent.
Over the past 10 years, India has registered the fastest growth among major democracies, having
grown at over 7 per cent in four years during the 1990s. It represents the fourth largest economy
in terms of “Purchasing Power Parity”. According to a recent Goldman Sachs report, over the
next fifty years, Brazil, Russia, India and China - the BRIC economies- could become a much
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larger force in the world economy. “India could emerge as the world’s third largest economy and
of these four countries; India has the potential to show the fastest growth over the next 30 to 50
years”. The report also states that, “Rising incomes may also see these economies move through
the ‘sweet spot’ of growth for different kinds of
products, as local spending patterns change. This could be an important determinant of demand
and pricing patterns for a range of commodities”. The share of the services sector as a percentage
of total
GDP is also predicted to rise from the current 46 per cent to about 60 per cent by 2020. The
boom in the services sector is slated to come from India, emerging as a chosen destination for
software and other IT enabled services, tourism etc. According to a Nasscom- McKinsey & Co.
Study, by 2008,
the Indian IT software and services sector will account for US$ 70-80 billion in revenues;
employ 4 million people, and account for 7 per cent of India’s GDP and 30 per cent of India’s
foreign exchange inflows.
DEMOGRAPHIC IMPETUS
Population projections from the Planning Commission of India suggest that the share of the
working age population (15-64 years) in total population will grow from the current 59 per cent
to about 65 per cent, translating into 882 million by year 2020. According to the Vision 2020
document of the Planning Commission of India, the country will witness continued urbanisation.
The urban population is expected to rise from 28 per cent to 40 per cent of total population by
2020. Future growth is likely to be concentrated in and around 60 to 70 large cities having a
population of one million or more. This profile of concentrated urban population will facilitate
customised telecom offerings from operators. Over the years, spending power has steadily
increased in India. Between 1995 and 2002, nearly 100 million people became part of the
consuming and rich classes. Over the next five years, 180 million people are expected to move
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into the consuming and very rich classes. On an average, 30-40 million people are joining the
middle class every year, representing huge consumption spending in terms of the demand for
mobile phones, televisions, scooters, cars, credit goods and a consumption pattern associated
with rising incomes.
Today, India has the eighth largest telecom network in the world, which is growing at an overall
rate of over 20 per cent. As of May 2004, India had about 43 million fixed lines and 36 million
wireless subscribers contributing to the total tele-density of about 7 %.
According to Morgan Stanley, the total revenue from the Indian telecom market in financial year
2003 was estimated to be about US$ 9.2 billion. Presently, wireline service contribute about half
of the total service revenues. Over the next 5-8 years, however, their contribution is expected to
fall to about 30 per cent and wireless services are expected to contribute half the industry
revenue. Data revenue is expected to increase from 2 per cent to 8 per cent of total revenues.
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3% Wireline
12%
GSM
CDMA
18% 46%
Domestic Long
Distance
Iinternational
2% LongDistance
19%
Data
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OPPORTUNITIES
India offers an unprecedented opportunity for telecom service operators, infrastructure vendors,
manufacturers and associated services companies. A host of factors are contributing to enlarged
opportunities for growth and investment in telecom:
Till recently, the industry believed that while the hike in Foreign Direct Investment (FDI) limits
was necessary, it was not a sufficient condition for growth of the telecom sector. With most of
the regulatory uncertainty getting over, there is heightened interest in Indian telecom.
Further, at a time when global telecom majors are struggling to cope with their losses and the
rollout of 3G networks, which has been a non-starter for close to a year now; India, with its
telecom success story, represents an attractive and lucrative destination for investment.
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CONTEXT
This will help you understand an overview of the Financial management entails planning for
the future of a person or a business enterprise to ensure a positive cash flow. It includes the
administration and maintenance of financial assets. Besides, financial management covers the
process of identifying and managing risks.The primary concern of financial management is the
assessment rather than the techniques of financial quantification. A financial manager looks at the
available data to judge the performance of enterprises. Managerial finance is an interdisciplinary
approach that borrows from both managerial accounting and corporate finance.Some experts
refer to financial management as the science of money management. The primary usage of this term is
in the world of financing business activities. However, financial management is important at all
levels of human existence because every entity needs to look after its finances.
• Gives an opportunity to plan and decide market strategy and product planning
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• Availability of spare time between calls
Broadly speaking, the process of financial management takes place at two levels. At the
individual level, financial management involves tailoring expenses according to the financial
resources of an individual. Individuals with surplus cash or access to funding invest their money
to make up for the impact of taxation and inflation. Else, they spend it on discretionary items. They
need to be able to take the financial decisions that are intended to benefit them in the long run
and help them achieve their financial goals.
From an organizational point of view, the process of financial management is associated with
financial planning and financial control. Financial planning seeks to quantify various financial
resources available and plan the size and timing of expenditures. Financial control refers to
monitoring cash flow. Inflow is the amount of money coming into a particular company, while
outflow is a record of the expenditure being made by the company. Managing this movement of
funds in relation to the budget is essential for a business.At the corporate level, the main aim of
the process of managing finances is to achieve the various goals a company sets at a given point
of time. Businesses also seek to generate substantial amounts of profits, following a particular set
of financial processes.Financial managers aim to boost the levels of resources at their disposal.
Besides, they control the functioning on money put in by external investors. Providing investors
with sufficient amount of returns on their investments is one of the goals that every company
tries to achieve. Efficient financial management ensures that this becomes possible.
Principles of finance:
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Principles.
Knowledge of these eight principles is essential for understanding the field of finance. Make
sure that you master each of them.
1. Risk-Return Tradeoff
The higher the risk of an investment, the higher the expected return must be.
There is a trade-off between liquidity and profitability; gaining more of one ordinarily means
giving up some of the other.
The maturity of a firm’s assets should match the maturity of the firm’s liabilities, i.e. short-term
assets should be financed with short term liabilities; long-term assets should be financed with
long-term sources of financing.
If you violate the matching principle, you create a problem either of too little liquidity or too
little profitability.
4. Leverage
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Leverage is a magnification of earnings that results from having fixed costs in the company.
Simply put, leverage is a measure of the degree of sensitivity of earnings to some other measure.
A magnification of earnings (Net Operating Income or EBIT) that results from having fixed
operating costs in the company. (Examples of fixed operating expenses are salaries, utilities,
depreciation, and property taxes.)
A magnification of earnings (E.A.T.) that results from having fixed financial costs in the
company. (The only type of fixed financial cost considered here is interest expense.)
A magnification of earnings that results from having fixed costs of any type in the company.
Formulas:
Operating leverage is equal to the percentage change in operating income divided by the
percentage change in sales.
Financial leverage is equal to the percentage change in net income divided by the
Total leverage measures the percentage change in net income divided by the percentage change
in sales.
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5. Time Value of Money
Money has a time value. A rational person is not indifferent between having a dollar today or a
dollar in the future. Regardless of inflation, a dollar today can be invested and will earn a return
over a period of time.
6. Valuation
The value of an asset is equal to the present value of its future cash flows. The rate used for the
present value calculations (the capitalization rate) should be the minimum acceptable return,
given the risk of the investment.
or
There is an inverse relationship between market interest rates and the price of existing fixed
income securities. e.g., as interest rates rise, prices of existing bonds will fall.
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As assets are added to a group (portfolio), the risk of the total portfolio decreases. This will be
true as long as the correlation of the asset being added and the portfolio is less than +1.0.
• Habit 2: Begin with the End in Mind—Develop a clear definition of what is and is not
important to you by creating the most important roadmap you'll ever have: Your Personal
Mission Statement
• Habit 3: Put First Things First—Increase the balance and fulfillment of your professional
and personal life by investing a few minutes each day in the same planning process used
by many of the world's most successful people
• Habit 4: Think Win-Win—Build a team that finds faster and better solutions through
clear expectations, shared responsibilities, and an understanding of priorities
• Habit 5: Seek First to Understand, Then to Be Understood—Develop the skills of
effective communication that lead to greater influence and faster problem solving
• Habit 6: Synergize—Value and celebrate differences and understand how they contribute
to more innovative and intelligent solutions
• Habit 7: Sharpen the Saw—Maintain and increase your newfound effectiveness by
continually renewing yourself mentally and physic
Planning : Planning is looking ahead on the basis of the present and the immediate
past. The plan of action is the result envisaged the line of action to be pursued, the stages
to be gone through and the methods to be employed. Planning includes the objectives and
scope of the business.
In large businesses, we usually have an annual plan. In conformity with this one, monthly,
weekly, daily plans also simultaneously operate. These ‘forecasts’ all merge into a single plan
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operating as a guide for the whole concern. The plan should be one and continuous and flexible
and as exact as possible.
Control : The next important task of the manager is control. Control watches that the program
and standards are adhered to, whilst planning lays down the program. It operates on all fields of
management including sales. Control operates on everything Things, People and Actions.For
control to be effective, it must be done within reasonable time and must be followed by rewards /
punishment.
ASSERTIVENESS :
If the sale has to be continuous, one must master the skills use them and sharpen them. The
approach used on assertiveness here is by and large commonsense approach like what the skill is,
its benefits, process etc.
Negotiation is once again linked with the professional aspects of sales management covering
styles, process and characteristics of effective negotiation.
• Be Specific
• Be Honest
• Be Straightforward
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• Buy time
• Be prepared to listen
• Be well prepared
NEGOTIATION:
“A process for arriving at an exchange of value that satisfies the interests of all parties involved”.
This definition may not be exactly what you perceive to be negotiation. Many people believe that
there is a winner and a loser in negotiation, but this is not always true. In a successful negotiation
between two people it is possible for both parties to end up with very satisfying results. It is
important to note that negotiation is not only about outsmarting your opponent, but is about
reaching a reasonable agreement.
Process of negotiation:
CREATING THE CLIMATE: This means that, ”the negotiation process begins long before
two or more people actually sit down across from each other at the bargaining table & the key to
the climate of negotiation lies in what happens within the opening moments”. At the beginning
of a negotiation, in as little time as seconds, a climate is created. From the opening minutes to the
very end of a negotiation a significant amount of non-verbal communication takes place.
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PREPARATION : If you think preparation is a waste of time, think again ! When dealing with
negotiation, “there is no substitute for adequate preparation”. Certain situations may have time
constraints and depending on the negotiation the length of preparation differs.
PROPOSAL : It is a crucial part of negotiation process. Put forward something with as little
emotion as possible. Do not start speaking until you have something relevant to say. Pay close
attention to the proposal of the other party. Use humor when appropriate but do not try to be
cleaver.
RESEARCH OBJECTIVE :
The first and the foremost step in any marketing research project is to define the objective i.e.,
the researcher should take into account the purpose of the study {main objective}, the relevant
information needed and how it will be used in decision making/ background information. Once
the problem has been identified and the researcher set the objective and, the research can be
designed and conducted properly.
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For this purpose we have designed a questionnaire and had it filled by the method of direct
personal interview with corporate people. We have a sample size of 150, which we analyzed and
concluded by giving our suggestions to the players in the industry.
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TYPES OF RESEARCH CONDUCTED
Exploratory research:
Exploratory research is to explore or search through a problem or situation to provide
insights and understanding. Exploratory research could be used for following purposes:
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RESEARCH METHODOLGY
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RESEARCH METHODOLGY :
Tactical Information Systems are designed to support recurrent decision making situations
therefore the information requirements can be determined ahead of time. This allows for reports
to be produced regularly and in predetermined format(s).
Generally aimed at operating and control levels of the organization – this precludes they are
being prepared by top-level management.
First we identify the Target population; it is the collection of elements or objects that posses
the information sought by the researcher and about which inferences are to be made.
Now we look for the Sample frame; it is the representation of the target population. It
usually is a list of population members used to obtain a sample. We took a sample size (the
number of elements to be included in the study) of 150.
METHOD USED :
Market research by collecting information, data, observations using disguised mediums from the
Marketing Executives.
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SOURCES OF INFORMATION :
SAMPLE SIZE :
As the survey of the entire population is not possible and feasible to conduct due to time and cost
constraint, we have taken a sample size of 150 which represents the entire population.
SAMPLING TECHNIQUE :
AREA SAMPLING
A common form of cluster sampling is area sampling, in which the clusters consists of
geographic areas, such as counties, blocks, etc. This technique was used because only the region
of South-Delhi was taken for the study.
PLACE OF STUDY :
Place of the study were all the major parts of South Delhi and Gurgaon.
Areas Undertaken :
• Haus Khauz
• Saket
• Vasant Kunj
• Greater Kailash – I , II
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• South Extension Part – I , II
• Ladoo Sarai
Safdarjung Enclave
• Mehrauli
• Vasant Vihar
• Bhikaji Cama
A database of Small Medium Business (SMB) customers was given by the company
which included all the details i.e name, contact number and office address of the
concerned person.
1. During this process we looked for an appointment with the concerned person to
collect relevant information by questionnaire.
2. The data collected was analyzed & we approached the clients with our plans &
proposals.
By knowing such information we can categories the company into the desired category
and target the company in the future.
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Daily Call Report, Expense statement etc. On-line retrieval is achieved through
invoking programs, which incorporate the routines necessary to retrieve the data and the
predetermined formats for presenting it.
• SPSS
• Microsoft Excel
They are categorized on the basis of revenue, which they pay towards the monthly bill. So the
base line is that the accounts which are paying between Rs. 20,000 and above towards their
monthly bill on landline and broadband.
Accounts that can also have sister concern are taken composite i.e revenue produced by the
entire sister concern, and then only we can categories in to the CORPORATE ACCOUNTS.
Importance Of Data :
To be useful the various information systems must be integrated – the factor that best relates the
various systems is data.
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A Tactical Information system is constructed around a common core of data collected because of
its potential use to the area that collects it and because this data is a resource for the entire
organization.
Data is often organized in a database – since the database receives inquiries from all over the
organization, it acts as a centre for the network of information flows. Not all data is maintained
in a database – some information is needed only within their own files. If other sections within
the organization require the data then it is wise to incorporate it into the corporate database(s).
Daily report : This is a very vital tool for any organization. As the sales people are mostly
in the market, it is very difficult to actually see them working. Thus daily report helps in
informing the company about the customers met by rep on that particular day and the business
transacted. The daily report helps in assessing the number of customer met by the sales person on
a particular day. Normally each organization has a list of pre-identified customers for a particular
territory, be it a multinational company or a small company.
A daily report always contains the name of the sales rep or the employee code number, the date,
the market worked during the day, names of customers met or the code numbers of the
customers, the products for which met or the codes of the products , the orders taken during the
day.
Role
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• Collection of overdue accounts as advised by credit department
• Insure that you know what are you going to talk about
Don’ts
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• Don’t interrupt
• Don’t brag
• Don’t hasten up
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QUESTIONNAIRE
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SAMPLE SURVEYS
SWOT Analysis on the basis of the research undertaken:
Strengths:
• It has got a popular and widely accepted brad in the name of Matrix cellular.
• It has got a superior technology e.g. copper & optical fiber network, underground
Cabling, digital subscriber lines in the case of internet.
• Its value –added services are the major assets that it has.
Weaknesses:
• The sales people are not at all competitive and make wrong commitments.
• The billing system is not perfect and the customer care needs more focus & attention.
• Proper research work is not done before penetrating the other’s market.
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• The customers are not aware of the value-added services.
• It has not covered the entire area in its own circle as yet etc.
Opportunities:
• Matrix cellular Landline & broadband has got only one major competitor that too in
government sector in the Form of MTNL in Delhi and BSNL in other regions.
• There is no private player around doing the same business that of wired landline
telephony.
• It has got a subscriber base of only few lakh and it has got the whole lot of market to
explore.
• India is fastly becoming a telecom hub and landline phones are still the basic
requirement of the customer’s etc.
Threats:
• It has not paid any dividends since its corporation and does not anticipate paying any
dividends for the foreseeable future.
• Competition from WLL technology may adversely impact the impact the company’s
revenues. Indian customer may be willing to subscribe to limited mobility using WLL to
take advantage of the lower call charges.
• Increase of foreign direct investment in telephone industry may also become a threat, due
to arrival of new players.
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COMPETITOR ANALYSIS
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COMPERETIVE ANALYSIS
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Operators – Fixed, CDMA and GSM
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8 Operators
6 Operators 6 Operators
Spice Telecom
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COMPARISON
OLD TECHNOLOGY
Analog Environment
Frequent breakdowns
NEW TECHNOLOGY
Digital Environment.
Rugged System.
Voice Clarity.
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• Sector growth slowed since mobile tariffs fell
• Only 1, 83 million subscribers are added over last one year (May 2003-May 2004)
DISHNET DSL:
Market segment targeted : Residential and commercial (small, medium and large offices,
corporate)
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SATYAM INFOWAY
• SPECTRANET
Technology used : Internet through cable, DSL, IP VPN, leased-line access, with connectivity
options (DSL, pure fiber, coaxial, radio and Ethernet)
Market segment targeted : Corporate, SOHOs, SMEs, institutions and House holds
Area of Operation : NCR – South, South West, Central Delhi and Gurgaon. Being extended
towards North Delhi.
• BSNL
Technology used : Internet through cable, DSL, IP VPN, leased-line access, with connectivity
options (DSL, pure fiber, coaxial, radio and Ethernet)
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Market segment targeted : Corporate, SOHOs, SMEs, institutions and House holds, CIC and
Government Departments
ANALYSIS
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ANALYSIS ON LANDLINE MARKET SHARE
45
40
35
30 40.3 Matrix
25
MTNL/BSNL
20 30.6
Reliance
15
Tata
10 17.6
5 11.5
0
%Using
This question shows that in present scenario BSNL/MTNL has the largest market share in the
SMB (Small Medium Business) sector. Analysis revealed that over 40.3% of companies are
using BSNL landlines. This analysis shows that Matrix cellular should focus on the landline
share by providing better services and schemes to attract more and more customers.
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ANALYSIS ON COMPANY PAID MOBILE
60
50
40 Matrix
56.2
Vodaphone
30
Reliance
20 Idea
Other
10 19.7 4.2
11.1 8.8
0
%Using
This question shows that in present scenario Matrix cellular has the largest market share in the
company paid mobile sector. Matrix cellular should continue providing better services and
schemes to attain there position in mobile sector.
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ANALYSIS ON BROADBAND MARKET SHARE
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35
30 Matrix
34.5
25 MTNL
20 12.3 Spectranet
15 22.6 Hathway Hathway
10 Spectranet
30.6 MTNL
5
Matrix
0
%Using
Analysis shows that 34.5% of SMB’s customers uses Hathway broadband services due to which
it has largest market shares.
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Percentage Of Satisfied Customers Of Matrix cellular In Corporate
2%
10%
Satisfied
88%
Not Satisfied
Can't Say
Analysis shows that 88% customers are satisfied with the services provided by Matrix cellular
where as only 10% are unsatisfied.
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Percentage Of Calling Pattern
80
60 Local
70.8 STD
40 9.1 ISD
20.1 ISD
20 STD
Local
0
%Using
This question shows that 70.8% local calls are done more than STD and ISD . So Matrix cellular
should focus on providing better call values and schemes on local calls to attract more customers.
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BENEFITS OF MATRIX CELLULAR INTERNET SERVICE
Get the advantage of the quickest and easiest access to the Internet. On the state of the art Matrix
cellular network you can transfer data up to 155 Mbps.
We guarantee service availability and network latency, or extend your service for free as per
Service Level Guarantee.
• Scalability
Free yourself from the constraints of limited bandwidth by choosing from our wide range of
access speeds (64 Kbps to 155 Mbps) to cater to your needs.
Our 24*7 network monitoring ensures your network runs smoothly. A 24*7 technical support
team is dedicated to you round the clock to resolve any technical problems you may encounter
and ensures that service is delivered as per Matrix cellular Service Level Guarantee.
• Network
We have a completely managed IP network that builds a converged platform to run all enterprise
solutions. The entire backbone is built on trusted names like Cisco and Juniper to provide data
capacity in terabytes and high routing/switching speed. Muti tier network architecture is
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designed to avoid single point of failure and offer highest network availability. Scalability in no
time is the highlighting point of our network.
All the Internet core routers in the ISP backbone are connected in a Star topology
and are using OSPF routing protocol. To communicate with external world, the EBGP-4 protocol
is used at the international gateway egress routers.
is first company of private sector, which got license for landline telephone service in India. After
many years of monopoly of BSNL first time in India any private started this service in private
sector so is enjoying this factor very well and also doing well in this area. Now BSNL getting
tough competition in this area and this is very good for customer that company is giving better
services in landline telephone. Matrix cellular is providing lots of Value Added Services.
Matrix cellular is doing very good in this business and it looks it will do very good in this
business. As in our research we saw more than 90% of Matrix cellular customers are satisfied
with the services of Matrix cellular.
Matrix cellular has attained a position in the market such that new customers prefer
Matrix cellular services than BSNL.
BSNL is still having the biggest share in the market in the field of landline. It is still
providing service to the old and big firms.
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Corporate customers of Matrix cellular are satisfied by the services provided by the
company.
Most of the customers are unaware of the value-added services provided by the company.
Customers sometimes become rude due to their bad experiences with Mobile services.
Matrix cellular has covered most of the commercial areas but there are still some areas
to be covered.
SUGGESTIONS :
Strategic Partnerships with leading Global Telecom Service Providers & Investors.
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Design Individual Development Plans so as to convert areas of improvement to areas of
strength.
Customer care services provided to the active customers should be more efficient towards
the problem solution.
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THANKS NOTE :
In the practical training for a period of 45 days, I have learned a lot about the
present scenario in the field of communication. I have gained knowledge about the
technology used by the company.
At our college we learn most of the things theoretically, which does not provides
sufficient information about the subject, and students remain unaware of the
problems and errors when they go to the field. This practical training has provided
us the knowledge about various technologies in the communication field.
I am highly grateful & thankful to the MATRIX CELLULAR family for the
support and guidance given to us for the successful completion of our practical
training & wish them success in every field.
SANDEEP SUMAN
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BIBLIOGRAPHY
BOOKS:
INTERNET SITES:
• www.Matrix cellular.in
• www.Matrix blogspot.in
• www.google.com
• www.economicstimes/archive.com
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