Evaluations of Marketing Strategies of Various Internet Service Providers

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    INDEX

    1. INTRODUCTION TO THE PROJECT 01 - 46

    History of Internet.

    Internet Service Provider

    Internet Services Industry

    Service Sector

    Objectives of Research

    2. RESEARCH METHODOLOGY 47 - 49

    Methods to be used

    3. LITERATURE REVIEW 50 - 69

    Data collected

    Source wise theory explanation

    4. TABULATION AND CLASSIFICATION 70 - 84

    Tabulation of findings

    Questionnaire wise classification & interpretation

    5. IMPLICATIONS AND SUGGESTIONS 85 87

    Implication and Suggestions

    Limitations of the Project.

    6. ANNEXURES 88 - 907. BIBLIOGRAPHY 91

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    EXECUTIVE SUMMARY

    The objective of the research is to discover answer to the questions

    and find out the truth which is hidden and which has not beendiscovered yet.Before studying further we should understand the

    meaning of I.S.P. An Internet service provider (ISP, also called

    Internet access provider) is a business or organization that offers

    users access to the Internet and related services. Many but not all

    ISPs are telephone companies. They provide services such as

    Internet transit, domain name registration and hosting, dial-up

    access, leased line access and colocation.

    Generally, an ISP charges a monthly access fee to the consumer.

    The consumer then has access to the Internet, although the speed at

    which this data is transferred varies widely.Internet connection speed

    can generally be divided into two categories: dialup and broadband.

    Dialup connections require the use of a phone line, and usually haveconnections of 56Kbs or less. Broadband connections can be either

    ISDN, Broadband wireless access, Cable modem, DSL, Fiber Optics,

    Satellite orEthernet. Broadband is always on (except ISDN that is a

    circuit switching technology), and varies in speed between 64Kb and

    20+Mb per second.With the increasing popularity of file sharing and

    downloading music and the general demand for faster page loads,

    higher bandwidth connections are becoming more popular.

    http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Transit_(internet)http://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Leased_linehttp://en.wikipedia.org/wiki/Colocationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/ISDNhttp://en.wikipedia.org/wiki/Broadband_wireless_accesshttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Digital_Subscriber_Linehttp://en.wikipedia.org/wiki/Fiber_Opticshttp://en.wikipedia.org/wiki/Satellite_Internethttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/Circuit_switchinghttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Transit_(internet)http://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Leased_linehttp://en.wikipedia.org/wiki/Colocationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/ISDNhttp://en.wikipedia.org/wiki/Broadband_wireless_accesshttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Digital_Subscriber_Linehttp://en.wikipedia.org/wiki/Fiber_Opticshttp://en.wikipedia.org/wiki/Satellite_Internethttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/Circuit_switchinghttp://en.wikipedia.org/wiki/File_sharing
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    In the todays scenario, we all are well aware of various Internet

    Service Provider in Market and various services provided by them.

    The problem of this project is to study the market strategies of various

    Internet Services Provider in Jalandhar. In this study I will take the

    Internet services provided by various companies and they are:-

    1. V.S.N.L

    2. Bharti Airtel Ltd.

    3. H.F.C.L. Connect

    4. B.S.N.L

    OBJECTIVES OF THE RESEARCH

    1. To study the market strategies of VIDESH SANCHAR NIGAM

    LTD.

    2. To study the various services provided to customers by the

    company.

    3. To study the customer review and their satisfaction level.

    4. To understand the various problems faced by customer.

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    RESEARCH METHODOLOGY

    Universe :- The Universe in this problem is the four Internet Service

    Providers operating in Jalandhar

    Category of Respondents:- The respondents which I will take into

    consideration for this study will be the Home Users, Coroporates and

    Local SMEs using the services of these ISPs

    Sampling Design :- The sampling design for the project will be

    Random Sampling Method.

    Size of Sample :- For solving the problem of the project I will take

    the views of 200 Respondents

    Research Approach :- Survey Method

    Data Collection Instruments :- The data Collection instrument will

    be questionnaires

    Source of Data :- Both primary and Secondry data will be the Source

    fo this study.

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    IMPLICATIONS

    Compared to the objectives of the project, the researcher found the

    following implications of the project:

    Studying the market strategies of various Internet Service Provider

    operating in Jalandhar made the researcher to look at various

    problem faced by the companies to stand themselves in market. It

    has also enabled the researcher to study their market structure

    and strategies and how they attract customer with new ideas

    The researcher after interacting with users come to know about

    the various services which ISPs are providing to their user toretain their user base and it also help the researcher in

    determining that how much is customer aware of the services of

    his ISP.

    Satisfying the customer is one of the major task or goal of every

    company so here the researcher has also studied the customer

    satisfaction level along with reviews of customer on various

    services of their service providers. It concluded that in most of the

    case either the customers are fully satisfied or fully dissatisfied

    there is no neutral point.

    Satisfaction of Customer also deals with satisfying the customer by

    eliminating its problem. Here in this research the Researcher had

    also tried to study the problem faced by customers and steps

    taken by company to solve those problems and even the time

    taken by company to solve those problems.

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    SUGGESTION

    Dedicated retention efforts like telecalling and personal visits to

    retain the customer at point itself.

    Resolving any query or complaint relating to connectivity, VAS or

    anu wrong commitment by the dealer or distributor .

    Giving regular schemes and additional facilities to customer to

    retain them.

    Providing the option for free safe custody of the customers

    account for him to remake his mind and convincing him

    meanwhile.

    Explaining in detail the various plans offered by the company andconvincing and shifting him to a plan that best suits his

    requirements.

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    INTRODUCTION ABOUT THE RESEARCH

    The objective of the research is to discover answer to the questions and

    find out the truth which is hidden and which has not been discovered

    yet.

    Before studying further we should understand the meaning of I.S.P. An

    Internet service provider (ISP, also called Internet access provider) is a

    business or organization that offers users access to the Internet and

    related services. Many but not all ISPs are telephone companies. Theyprovide services such as Internet transit, domain name registration and

    hosting, dial-up access, leased line access and colocation.

    Generally, an ISP charges a monthly access fee to the consumer. The

    consumer then has access to the Internet, although the speed at which

    this data is transferred varies widely.Internet connection speed can

    generally be divided into two categories: dialup and broadband. Dialup

    connections require the use of a phone line, and usually have

    connections of 56Kbs or less. Broadband connections can be either

    ISDN, Broadband wireless access, Cable modem, DSL, Fiber Optics,

    Satellite or Ethernet. Broadband is always on (except ISDN that is a

    circuit switching technology), and varies in speed between 64Kb and

    20+Mb per second.With the increasing popularity of file sharing anddownloading music and the general demand for faster page loads,

    higher bandwidth connections are becoming more popular.

    http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Transit_(internet)http://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Leased_linehttp://en.wikipedia.org/wiki/Colocationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/ISDNhttp://en.wikipedia.org/wiki/Broadband_wireless_accesshttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Digital_Subscriber_Linehttp://en.wikipedia.org/wiki/Fiber_Opticshttp://en.wikipedia.org/wiki/Satellite_Internethttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/Circuit_switchinghttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Transit_(internet)http://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Dial-up_accesshttp://en.wikipedia.org/wiki/Leased_linehttp://en.wikipedia.org/wiki/Colocationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/ISDNhttp://en.wikipedia.org/wiki/Broadband_wireless_accesshttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Digital_Subscriber_Linehttp://en.wikipedia.org/wiki/Fiber_Opticshttp://en.wikipedia.org/wiki/Satellite_Internethttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/Circuit_switchinghttp://en.wikipedia.org/wiki/File_sharing
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    HISTORY OF INTERNET

    The USSR's launch ofSputnik spurred the U.S. to create the Defense

    Advanced Research Projects Agency (DARPA) in February 1958 to

    regain a technological lead. DARPA created the Information Processing

    Technology Office to further the research of the Semi Automatic Ground

    Environment program, which had networked country-wide radar systems

    together for the first time. J. C. R. Licklider was selected to head the

    IPTO, and saw universal networking as a potential unifying human

    revolution. Licklider recruited Lawrence Roberts to head a project toimplement a network, and Roberts based the technology on the work of

    Paul Baran who had written an exhaustive study for the U.S. Air Force

    that recommended packet switching to make a network highly robust

    and survivable. After much work, the first node went live at UCLA on

    October 29, 1969 on what would be called the ARPANET, the "eve"

    network of today's Internet. In December of 1970, Charles A. Petrik

    contacted the U.S. Navy and suggested that a special communications

    network, which the Department of Defense had built for use in the

    possiblitity of a nuclear attack, could also be used during peace time.

    Petrik convinced the military to connect the computers of the U.S.

    National Laboratories for scientific research purposes, and to allow

    these labs to get data to other labs faster, and safer.

    The first TCP/IP wide area network was operational by 1 January 1983 ,

    when the United States' National Science Foundation (NSF) constructed

    a university network backbone that would later become the NSFNet.

    (This date is held by some to be technically that of the birth of the

    Internet.) It was then followed by the opening of the network to

    http://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/Sputnikhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/DARPAhttp://en.wikipedia.org/wiki/DARPAhttp://en.wikipedia.org/wiki/Information_Processing_Technology_Officehttp://en.wikipedia.org/wiki/Information_Processing_Technology_Officehttp://en.wikipedia.org/wiki/Semi_Automatic_Ground_Environmenthttp://en.wikipedia.org/wiki/Semi_Automatic_Ground_Environmenthttp://en.wikipedia.org/wiki/J._C._R._Lickliderhttp://en.wikipedia.org/wiki/Lawrence_Roberts_(scientist)http://en.wikipedia.org/wiki/Paul_Baranhttp://en.wikipedia.org/wiki/Packet_switchinghttp://en.wikipedia.org/wiki/UCLAhttp://en.wikipedia.org/wiki/October_29http://en.wikipedia.org/wiki/ARPANEThttp://en.wikipedia.org/wiki/TCP/IPhttp://en.wikipedia.org/wiki/January_1http://en.wikipedia.org/wiki/National_Science_Foundationhttp://en.wikipedia.org/wiki/NSFNethttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/Sputnikhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/DARPAhttp://en.wikipedia.org/wiki/DARPAhttp://en.wikipedia.org/wiki/Information_Processing_Technology_Officehttp://en.wikipedia.org/wiki/Information_Processing_Technology_Officehttp://en.wikipedia.org/wiki/Semi_Automatic_Ground_Environmenthttp://en.wikipedia.org/wiki/Semi_Automatic_Ground_Environmenthttp://en.wikipedia.org/wiki/J._C._R._Lickliderhttp://en.wikipedia.org/wiki/Lawrence_Roberts_(scientist)http://en.wikipedia.org/wiki/Paul_Baranhttp://en.wikipedia.org/wiki/Packet_switchinghttp://en.wikipedia.org/wiki/UCLAhttp://en.wikipedia.org/wiki/October_29http://en.wikipedia.org/wiki/ARPANEThttp://en.wikipedia.org/wiki/TCP/IPhttp://en.wikipedia.org/wiki/January_1http://en.wikipedia.org/wiki/National_Science_Foundationhttp://en.wikipedia.org/wiki/NSFNet
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    commercial interests in 1985. Important separate networks that offered

    gateways into, then later merged into the NSFNet include Usenet, Bitnet

    and the various commercial and educational X.25 Compuserve and

    JANET. Telenet (later called Sprintnet), was a large privately-funded

    national computer network with free dialup access in cities throughout

    the U.S. that had been in operation since the 1970's. This network

    eventually merged with the others in the 90's as the TCP/IP protocol

    became increasingly popular. The ability of TCP/IP to work over these

    pre-existing communication networks allowed for a great ease of growth.

    Use of Internet as a phrase to describe a single global TCP/IP network

    originated around this time.

    The network gained a public face in the 1990s. In August 1991 CERN,

    which straddles the border between France and Switzerland publicized

    the new World Wide Web project, two years afterTim Berners-Lee had

    begun creating HTML, HTTP and the first few web pages at CERN. In

    1993 the National Center for Supercomputing Applications at theUniversity of Illinois at Urbana-Champaign released the Mosaic web

    browserversion 1.0, and by late 1994 there was growing public interest

    in the previously academic/technical Internet. By 1996 the word

    "Internet" was common public currency, but it referred almost entirely to

    the World Wide Web.

    http://en.wikipedia.org/wiki/Usenethttp://en.wikipedia.org/wiki/Bitnethttp://en.wikipedia.org/wiki/X.25http://en.wikipedia.org/wiki/Compuservehttp://en.wikipedia.org/wiki/JANEThttp://en.wikipedia.org/wiki/Telenethttp://en.wikipedia.org/wiki/CERNhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Tim_Berners-Leehttp://en.wikipedia.org/wiki/HTMLhttp://en.wikipedia.org/wiki/HTTPhttp://en.wikipedia.org/wiki/CERNhttp://en.wikipedia.org/wiki/National_Center_for_Supercomputing_Applicationshttp://en.wikipedia.org/wiki/University_of_Illinois_at_Urbana-Champaignhttp://en.wikipedia.org/wiki/Mosaic_(web_browser)http://en.wikipedia.org/wiki/Mosaic_(web_browser)http://en.wikipedia.org/wiki/World_Wide_Webhttp://en.wikipedia.org/wiki/Usenethttp://en.wikipedia.org/wiki/Bitnethttp://en.wikipedia.org/wiki/X.25http://en.wikipedia.org/wiki/Compuservehttp://en.wikipedia.org/wiki/JANEThttp://en.wikipedia.org/wiki/Telenethttp://en.wikipedia.org/wiki/CERNhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Tim_Berners-Leehttp://en.wikipedia.org/wiki/HTMLhttp://en.wikipedia.org/wiki/HTTPhttp://en.wikipedia.org/wiki/CERNhttp://en.wikipedia.org/wiki/National_Center_for_Supercomputing_Applicationshttp://en.wikipedia.org/wiki/University_of_Illinois_at_Urbana-Champaignhttp://en.wikipedia.org/wiki/Mosaic_(web_browser)http://en.wikipedia.org/wiki/Mosaic_(web_browser)http://en.wikipedia.org/wiki/World_Wide_Web
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    Aside from the complex physical connections that make up its

    infrastructure, the Internet is held together by bi- or multi-lateral

    commercial contracts (for example peering agreements) and by

    technical specifications orprotocols that describe how to exchange data

    over the network. Indeed, the Internet is essentially defined by its

    interconnections and routing policies.

    As of January 2006, over 1 billion people use the Internet according to

    Internet World Stats. With the emergence of the internet and recent high

    speed connections becoming available to the public, the internet has

    altered the way many people work in significant ways. Contrary to the

    traditional 9-5 workday where employees commute to and from work,

    the internet has allowed greater flexibility both in terms of working hours

    and work location. Today, many employees work from home by

    "telecommuting".

    The internet and the advent ofblogs has given employees a forum from

    which to voice their opinions about their jobs, employers and co-

    workers, creating a massive amount of information and data on work

    that is currently being collected by the Worklifewizard.org project run by

    Harvard Law School's Labor & Worklife Program.

    http://en.wikipedia.org/wiki/Peering_agreementhttp://en.wikipedia.org/wiki/Communications_protocolhttp://en.wikipedia.org/wiki/Datahttp://www.internetworldstats.com/stats.htmhttp://en.wikipedia.org/wiki/Telecommutinghttp://en.wikipedia.org/wiki/Blogshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Datahttp://www.worklifewizard.org/http://www.law.harvard.edu/programs/lwphttp://en.wikipedia.org/wiki/Peering_agreementhttp://en.wikipedia.org/wiki/Communications_protocolhttp://en.wikipedia.org/wiki/Datahttp://www.internetworldstats.com/stats.htmhttp://en.wikipedia.org/wiki/Telecommutinghttp://en.wikipedia.org/wiki/Blogshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Datahttp://www.worklifewizard.org/http://www.law.harvard.edu/programs/lwp
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    INTERNET SERVICE PROVIDERS

    An Internet service provider (ISP, also called Internet access provider or

    IAP) is a business or organization that offers users access to the

    Internet and related services. Many but not all ISPs are telephone

    companies. They provide services such as Internet transit, domain name

    registration and hosting, dial-up orDSL access, leased line access and

    colocation.

    Internet hosting services run servers, provide managed hosting, and

    include the Internet connection Generally, an ISP charges a monthly

    access fee to the consumer. The consumer then has access to the

    Internet, although the speed at which this data is transferred varies

    widely.

    Internet connection speed can generally be divided into two categories:

    dialup and broadband. Dialup connections require the use of a phone

    line, and usually have connections of 56 kbit/s or less. Broadband

    connections can be either ISDN, Broadband wireless access, Cable

    modem, DSL, Fiber Optics, Satellite orEthernet. Broadband is always

    on (except ISDN that is a circuit switching technology), and varies in

    speed between 64 Kb and 20 Mb per second or more. With the

    increasing popularity of file sharing and downloading music and the

    general demand for faster page loads, higher bandwidth connections are

    becoming more popular.

    http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Transit_(internet)http://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Dial-uphttp://en.wikipedia.org/wiki/DSLhttp://en.wikipedia.org/wiki/Leased_linehttp://en.wikipedia.org/wiki/Colocationhttp://en.wikipedia.org/wiki/Internet_hosting_servicehttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/ISDNhttp://en.wikipedia.org/wiki/Broadband_wireless_accesshttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Digital_Subscriber_Linehttp://en.wikipedia.org/wiki/Fiber_Opticshttp://en.wikipedia.org/wiki/Satellite_Internethttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/Circuit_switchinghttp://en.wikipedia.org/wiki/File_sharinghttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Telephone_companyhttp://en.wikipedia.org/wiki/Transit_(internet)http://en.wikipedia.org/wiki/Domain_namehttp://en.wikipedia.org/wiki/Dial-uphttp://en.wikipedia.org/wiki/DSLhttp://en.wikipedia.org/wiki/Leased_linehttp://en.wikipedia.org/wiki/Colocationhttp://en.wikipedia.org/wiki/Internet_hosting_servicehttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Dialuphttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/ISDNhttp://en.wikipedia.org/wiki/Broadband_wireless_accesshttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Cable_modemhttp://en.wikipedia.org/wiki/Digital_Subscriber_Linehttp://en.wikipedia.org/wiki/Fiber_Opticshttp://en.wikipedia.org/wiki/Satellite_Internethttp://en.wikipedia.org/wiki/Ethernethttp://en.wikipedia.org/wiki/Circuit_switchinghttp://en.wikipedia.org/wiki/File_sharing
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    The history of Internet Service Providers is integral to the development

    of the formation of the modern internet, as well as the economic impact

    it had on the world. Commercial use of the Internet began in the early

    1990s, with companies like MindSpring serving limited customers and

    connections starting in 1994. Many started out as small companies with

    home made software, and server facilities in their garages. Users would

    pay around $20 (11.50) to $40 (23) for a dial-up connection.

    Connection speeds ranged from 9.6 kbit/s to 14.4 kbit/s, and

    connections were unreliable. At the same time, larger companies such

    as CompuServe and America Online had their own networks and

    proprietary software for connecting - therefore CompuServe and AOL

    were separate networks from the Internet, and neither continue to exist.

    V.90 was developed in 1998, bringing download speeds up to 56 kbit/s.

    Larger companies began to offer Internet services, propelling

    acceptance of the Internet through advertising. Internet prices also

    began to stabilize. The price for a dialup connection became $19.95 amonth.

    By the 2000s, the battle over broadband also began to appear. DSL,

    which was over phone lines, was an option for traditional ISPs. Cable

    companies also became ISPs by offering cable modem access. During

    the late 90s and early 2000s these technologies were in intense

    competition. Pricing, technology, and market share drove the Internet

    economy. Smaller ISPs however did not have access to the cable

    system and DSL was too expensive. Many small ISPs began using

    wireless technology to provide broadband access.

    http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/1990shttp://en.wikipedia.org/wiki/MindSpringhttp://en.wikipedia.org/wiki/1994http://en.wikipedia.org/wiki/Dial-uphttp://en.wikipedia.org/wiki/CompuServehttp://en.wikipedia.org/wiki/America_Onlinehttp://en.wikipedia.org/wiki/Proprietaryhttp://en.wikipedia.org/wiki/V.90http://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/DSLhttp://en.wikipedia.org/wiki/2000shttp://en.wikipedia.org/wiki/Wireless_technologyhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/1990shttp://en.wikipedia.org/wiki/MindSpringhttp://en.wikipedia.org/wiki/1994http://en.wikipedia.org/wiki/Dial-uphttp://en.wikipedia.org/wiki/CompuServehttp://en.wikipedia.org/wiki/America_Onlinehttp://en.wikipedia.org/wiki/Proprietaryhttp://en.wikipedia.org/wiki/V.90http://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/DSLhttp://en.wikipedia.org/wiki/2000shttp://en.wikipedia.org/wiki/Wireless_technology
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    In 2000, The dot-com bust proved a serious threat to the established

    ISPs. Smaller ISPs offering low-cost internet served a major challenge,

    as well as an overall slump in the economy. Popularity of the Internet

    was still on the rise but the companies providing the services were

    finding a hard time breaking even. Many of the small ISPs still

    functioned as normal as they operated on revenues and not overinflated

    stocks.

    As of 2005, the larger ISPs are turning a profit, often through a

    combination of wireless, wired and content services, all subscription

    based. One major challenge in the near future is that of free wireless

    broadband access, possibly provided as a municipality.

    http://en.wikipedia.org/wiki/Dot-com_busthttp://en.wikipedia.org/w/index.php?title=Content_services&action=edithttp://en.wikipedia.org/wiki/Subscriptionhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Municipalityhttp://en.wikipedia.org/wiki/Dot-com_busthttp://en.wikipedia.org/w/index.php?title=Content_services&action=edithttp://en.wikipedia.org/wiki/Subscriptionhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Wireless_broadbandhttp://en.wikipedia.org/wiki/Municipality
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    INTERNET SERVICES INDUSTRY

    AN OVERVIEW

    The state-owned Videsh Sanchar Nigam Limited (VSNL)

    launched Internet Services in India in August 1995. For the first

    four years , VSNL was the sole provider of Internet Services in

    the Country. In November 1998, the Government ended VSNLs

    monopoly and allowed provisioning of Internet Services by

    Private Operators. The Terms and Conditions of the ISPs

    License were unusually liberal with no License Fee and allowed

    unlimited number of players. ISPs could set their own tariffs and

    even their own International Gateways.

    DoT issues three types of licenses Category A for all-India

    operations; Category B for metros and state - level circles, and

    Category C for medium and small cities (SDCAs). Presently

    there are 390 License holders, 64 in Category A and 135& 191

    each in Category B and C. About 189 licensees have started

    their operations.

    The Internet is certainly a major phenomenon in India today.

    Everywhere one looks, the signs of its arrival and adoption are

    visible. In fact it is being universally recognized that as the

    Internet proliferates, so will E-Commerce and E-Governance and

    E-Business. It is, therefore, in our National interest to boost the

    expansion of Internet Services in the Country. This will also

    enable the citizens to avail of the benefits arising out of IT

    enabled services.

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    INITIATIVES BY THE GOVERNMENT

    The New Telecom Policy, 1999 (NTP 99) stipulates targets in

    terms of establishing Telecom Network with a view to achieve

    tele-density of 7 per 100 by the year 2005 and 15 per 100 by the

    year 2010. The NTP 99 also stipulates targets for providing

    Internet Access to all District Headquarters by the year 2002. In

    addit ion, the Government has initiated various pro-active

    measures in the proliferation of the Internet Services in the

    Country. Some of the important initiatives are as under :

    ISP License is one of the most liberal License, wherein no

    License Fee has been levied on the ISPs till 31st October

    2003.Thereafter, a token license fee of Rs. One per annum

    is payable w.e.f. 1st November 2003.

    There is no restriction on the number of Service Providers

    in all the three categories i.e. A, B, C. ISPs have been permitted to set up International Gateways

    by having business arrangement with Foreign Satellites

    Providers and Collaborators.

    ISPs have been permitted to provide last mile access using

    Radio and Fiber Optics.

    ISPs have been permitted to provide ISP Services through

    Cable T V Infrastructure / Operators.

    The Government has initiated an ambit ious plan to

    developed National Internet Backbone (NIB) in the country.

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    100% FDI allowed through automatic route to the ISP

    (without gateways), 74% in case of ISPs set ting up

    International Gateways.

    ISP's permitted to set up Submarine Cable Landing

    Stations ei ther s ingly or joint ly in col laborat ion with

    International Undersea Bandwidth Carriers.

    National Long Distance Services opened to private sector

    on non-exclusive basis.

    International Long Distance Services opened up to private

    sector on non-exclusive basis w.e.f. April 1, 2002

    Implementation of IT Act, 2000.

    Internet Telephony Services opened up to ISPs w.e.f. April

    1, 2002.

    De-licensing of W-LAN in 2.4 Ghz band using IEEE 802.11b

    technology

    Reduction of Performance Bank Guarantee by 50% for

    Category A & B ISPs and 33% for Category C ISPs.

    Since 1995, a number of countries have permitted VOIP as a

    technology option to the classical PSTN as well as Internet

    Telephony so as to provide a cheaper alternative to classical

    PSTN calls. In India, the ISPs were allowed to offer Internet

    Telephony Services with effect from April 1, 2002. With the

    choice availability of Toll Quality (PSTN) and Non-Toll Quality

    options, Internet Telephony has thrown open Long Distance

    Telephony to those sections of Society, which could not afford

    the same earlier. Further, Internet Telephony is proving to be a

    key driver for local entrepreneurs to set up Community

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    Information Centers / Cyber-kiosks / Internet Dhabas, etc even

    in small towns and vil lages. In fact i t has made distance

    learning, Tele-medicine and e-governance etc a reality in Indian

    context.

    More than 90 ISPs have been granted l icense for offer ing

    Internet Telephony Services. There has been a substantial

    growth in the Cyber Caf / Cyber Dhabas offer ing Internet

    Telephony Services. It is expected that Internet Telephony will

    provide f il lip to the demand for network facil it ies including

    bandwidth, last mile access and other connectivity resources

    and bridging the digital divide within the Countr. However, an

    important issue needing immediate attention is tackling the

    Internet Telephony Grey Market which is estimated to be about

    90 per cent of the total Internet Telephony market in India and

    requires concerted efforts by Government and industry. It is

    imperative that all leading ISPs including VSNL, BSNL andMTNL join hand to tackle the menace.

    Growth Rate

    During the first three years of VSNL monopoly, the Internet

    subscriber base grew very slowly. By the end of March 1998, it

    had barely reached 140,000 subscribers. The end of VSNLsmonopoly changed things dramatically wherein, the entry of

    private players, unlimited and open competi tion, and the

    lowering of tariffs, among other factors, led to the phenomenal

    surge in the subscriber base growth. Between March 99 and

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    March 01, the subscriber base grew more than 200 percent per

    year, from 280,000 to 3,000,000.

    The following Table is indicative of the trends in the Growth of

    Internet subscriber base.

    Month/ Year Subscriber Base (Millions)

    Aug' 950.01

    Mar' 96 0.05

    Mar' 97 0.09

    Mar' 98 0.14

    Mar' 99 0.28

    Mar' 00 0.90

    Mar' 01 3.00

    Mar' 02 3.20

    Mar' 03 3.60

    Sep' 03 3.98

    Dec' 03 4.10

    While the Government has been propelling India towards the

    Information Age and Convergence by announcing enabling

    Policies toward development and progress with an ultimate goal

    of Internet for All. However, the implementation of some of

    these pol ic ies have been beset with various operat ional,

    procedural & regulatory issues and supporting legal framework,

    which is inhibit ing the reach and benefit of Internet to the

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    masses in the Country. The declining growth rate of Internet

    Subscriber Base since April 2001 coupled with reduced inflow of

    Capita Investment, is indicative of the serious maladies, which

    the Internet Industry is facing today.

    The growth rate in the subscriber base which was as high as

    54% per quarter during the period Apr 99 to Mar 01 is on a

    constant decline and was of the order of 3-4 % during the

    quarters ending June, Sept & Dec 2001. I t is, therefore,

    imperative that we review the Internet Scenario in India and

    identify and initiate effective steps to trigger a faster growth.

    SERVICE SECTOR

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    In economics and marketing, a service is the non-material equivalent of

    a good. Service provision has been defined as an economic activity that

    does not result in ownership, and this is what differentiates it from

    providing physical goods. It is claimed to be a process that creates

    benefits by facilitating either a change in customers, a change in their

    physical possessions, or a change in their intangible assets.

    By supplying some level ofskill, ingenuity, and experience, providers of

    a service participate in an economy without the restrictions of carrying

    stock (inventory) or the need to concern themselves with bulky raw

    materials. On the other hand, their investment in expertise does require

    marketing and upgrading in the face of competition which has equally

    few physical restrictions.Providers of services make up the Tertiary

    sector of industry.

    Service sector is a new frontier for marketing strategy. Service sector

    continues to be an ever more important part of the gross national

    product of developing and developed nations. Health Care, tourism,

    recreations, engineering, telecom, internet, education, financial services

    etc are vital to health and prosperity of every nation.

    Today the time has arrived when any company any sector can get

    competitive edge on others by providing uninterrupted services.

    Multidimensional development in Information Technology activated and

    energized by the developed countries has made ways of sophistication

    in almost all areas. The invention and innovation have been paving

    avenues for qualitative transformation almost in all areas. This has been

    successful in increasing the level of satisfaction of the customers. The

    http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Good_(accounting)http://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Possessionhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Skillhttp://en.wikipedia.org/wiki/Ingenuityhttp://en.wikipedia.org/wiki/Experiencehttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/Tertiary_sector_of_industryhttp://en.wikipedia.org/wiki/Tertiary_sector_of_industryhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Good_(accounting)http://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Possessionhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Skillhttp://en.wikipedia.org/wiki/Ingenuityhttp://en.wikipedia.org/wiki/Experiencehttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/Tertiary_sector_of_industryhttp://en.wikipedia.org/wiki/Tertiary_sector_of_industry
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    globalization and liberalization has opened new vitas for development of

    services generating organization. The intensity of the competition is

    found moving upward. The organizations active in enriching their

    strength have been found establishing an edge and compelling the weak

    organizations making final good bye.

    There for in present scenario companies are striving to make their

    services better to retain the customer because selling services is difficult

    from selling products.

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    FOUR Is RELATED TO SERVICE

    MARKETING

    INTANGIBILITY

    FOUR Is OF

    INSEPERABILITY SERVICE INCONSISTANCY

    MARKETING

    INVENTORY

    1. INTANGIBILITY : - Intangibility is an important consideration that

    complicates responsibility of marketing manager, especially while

    influencing and motivating prospects and customers. The good of

    tangible nature can be displayed. The prospects of the buyer can

    have a look on them before making any decisions. Selling process

    is therefore easy. But services are intangible nature and therefore

    decision making process is complicated.

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    2. INSEPERABILITY : - This is also a feature which complicated the

    task of professional while marketing the services. The

    inseparability focuses on the fact that the services are not

    separable in nature. Generally the services are created and

    supplied simultaneously.

    According to Donald Cowell Goods are produced, sold and then

    consumed where as services are sold and then produced and

    consumed.

    3. INCONSISTANCY : - This aspect can infact touch various factors.

    Services are not consistent in terms of existence, heterogeneity,

    availability. Say goods bought by us remain existent, durables,

    continue for a long time period. Non Durables for limited period.

    But services are non existent in nature. Similarly services can not

    be measured easily. There is an inconsistency. It may depend

    upon the mood of service providers.

    4. INVENTORY : - Goods can be accumulated and inventory can be

    maintained. But its not possible to make inventory of services. It is

    these four is that marketing of services is bit difficult. So it

    becomes very important for the marketer to overcome these Is.

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    EIGHT Ps OF PRODUCT MARKETING

    EIGHT Ps

    Main 4 Ps Additional

    4 Ps

    Price Product Place Promotion People Process Product Physical

    Evidence

    1. PRODUCT :- Here we are considering the services as product

    other wise also according to 10 Kohlel Any product can beconsisted of there components i.e. Goods , Services and Idea. A

    product should be designed according to market needs.

    2. PRICE :- Price is also one of the major factors related to the

    marketing of services. The scenario has changed. Market dynamics

    is forcing the marketers to design the pricing policy of the

    competition

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    3. PLACE :- The services or the product marketing has major factors

    of availability. To make goods and services freely available so that

    they are easily in reach of customer. What kind of distribution

    channel is involved in making assuring the availability?

    4. PROMOTION :- Companies in service sector use different media for

    promotions. Through in products selling also there is different media

    of promotion various advertising techniques and sales promotion

    campaign are being used. But in service sector customer

    involvement and customer relationship management plays a major

    role

    5. PHYSICAL EVIDENCE :- As now days all the service providers are

    opening their offices in all the major cities so that customers can

    easily reach of the companies.

    6. PEOPLE :- As services are inseparable so satisfaction of the

    customer form services also depends upon the people who are

    involved in providing the services.

    7. PROCESS : - It takes a process to make a plant from a seed. So a

    company who is providing services actually involves with the

    customers.

    8. PRODUCTIVITY :- Productivity in services deals with providing a

    huge bunch of services along with retaining the customer for the

    future course of action and to generate productivity.

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    TRAIS LATEST REGULATION ON ISPS

    TRAI released Consultation Paper on "Issues Relating to Transition of

    IPv4 to IPv6 in India". As a continuation of its initiative for accelerating the growth of broadband inthe country TRAI have issued a consultation paper to deliberate on various issues relating to transition from IPv4

    to IPv6 in the country.

    The growing number of Always On Broadband connections will require a large number of IP addresses. It is felt

    that the current version of Internet Protocol (IPv4) may not be able to provide requisite address space.

    IPv6, which is next generation Internet protocol, has capacity to expand the available address space on the

    Internet enormously as well as having the capability to provide better QOS. In addition IPv6 is designed to

    promote higher flexibility functionality & enhanced security.

    The paper provides the necessary platform for discussing the various related issues like facilitating role of

    regulator, policy initiative required, need for national IPv6 test bed, establishing national agency for managing IP

    addresses and IPv6 transition strategy for service providers. In addition some of the examples of successful

    implementation from other countries have been included. This initiative of TRAI is to complement the efforts of

    Department of Information Technology (DIT) towards countrys transition to IPV6.

    SOME INTERESTING FINDINGS

    BY SURVEY ON INTERNET

    Over 78% of the Internet Users are in the age group 18-39

    years and 75% of the Internet Users are Males.

    The Capital Cities (New Delhi and Other State Capital)

    accounts for 79% of Internet Connections of the Country.

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    More than 86% of top Corporate Houses have endorsed

    that Internet and E-Commerce is an integral part of their

    corporate strategic framework.

    Over 76 % of the Internet Users use E-mail Services

    Over 61% of the Users Access Internet f rom school,

    colleges, place of work and Cyber Cafes while 27% access

    Internet from homes.

    Among the career conscious and educat ion driven middle

    class, Internet is seen as critical to success in professional

    life.

    There are approx 59 mil lion te lephone connections

    (including Mobile) and 8.5 million PC base in India.

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    WHY MARKETING OF INTERNET IS REQUIRED

    1. IMMENSE COMPETITION : -

    Now a day there is immense competition in market. For making

    any product and services successful good marketing is very much

    required. If we consider the internet service sector few no. of

    players are there in market.

    2. RETAIN AND ATTRACT CUSTOMER :-

    In order to retain the old customer base and attract new

    customers good marketing is required.

    3. TO BOOST CUSTOMERS CONFIDENCE :-

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    As specified earlier intangible its very much required to build the

    confidence of customer so that he can decide for opting for the

    services of a particular internet service player.

    4. PRICE WAR :-

    As price war cant play a major role in this service sector because

    of TRAIs intervention and also its not beneficial for the service

    providers. So good marketing can help in getting more and more

    customers.

    5. QUALITY OF SERVICE :-

    To tell the customers about the various options available and

    provided by the internet service players its very much required

    that proper marketing of internet services should be there.

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    INTRODUCTION OF THE COMPANIES

    VIDESH SANCHAR NIGAM LTD.

    The first Submarine Telegraph Cable from U.K. landed in Bombay in

    1870, heralding the era of external telecommunications in India.

    The Eastern Telegraph Co. (ETC) of 1872 and the Indian

    RadioTelegraph Co. (IRT) of 1927 merged to form the Indian Radio and

    Cable Communications Co. (IRCC) in 1932. The H.F. Radio telegraph

    made its appearance on the scene in 1927, followed by Radio telephony

    in 1933. Consequent to India's Independence in 1947, there were

    phenomenal developments in her communication system and

    technology. The Government of India took over the IRCC, giving birth to

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    the Overseas Communications Service (OCS), a Government

    Department.

    The satellite era dawned in 1970. India also had, by 1982, wideband

    submarine telephone cable system and Troposcatter system in the

    external telecommunications network.On April 1, 1986, the Videsh

    Sanchar Nigam Limited (VSNL) - a wholly Government owned

    corporation - was born as successor to OCS.

    There were unexpected developments in mobile communications too.

    Now it is possible to communicate and do business with people on themove - on land, on the high seas or in the air, even while you are

    moving from one place to another. These developments also made

    possible safety through communications - during natural calamities like

    flood or earthquake or man-made calamities like war, when conventional

    systems are thrown out of gear.

    Meanwhile, VSNL introduced Internet services in India in the year 1995.

    The new era of communications started towards the new millennium. In

    February 2002, the Government of India, as per their disinvestments

    plan, released 26% of VSNL's equity to a strategic partner.

    Consequently, VSNL was taken over under the administrative control of

    TATAs. It is under the Management of TATAs - India's best known

    industrial house-that VSNL is now charting its future course

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    Videsh Sanchar Nigam Limited (VSNL)

    VSNL was incorporated on April 1, 1986 under the Indian Companies

    Act , 1956 to take over the activities of the erstwhile Overseas

    Communication Services (OCS). The company operates a network of

    earth stations, switches, submarine cable systems, and value added

    service nodes to provide a range of basic and value added services.

    VSNL's main gateway centres are located at Mumbai, New-Delhi,

    Kolkata and Chennai. The international telecommunication circuits are

    derived via Intelsat and Inmarsat satellites and wide band submarine

    cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.

    The company's ADRs are listed on the New York Stock Exchangeand

    its shares are listed on major Stock Exchanges in India. The Indian

    Government owns approximately 26% equity, M/s Panatone Finvest

    Limited as investing vehicle of Tata Group owns 45% equity and the

    overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is

    approximately 13% as on 31 December 2002, the rest is owned by

    Indian institutions and the public.

    http://nyse.com/marketinfo/marketinfo.html?sym=vsl&links=http://nyse.com/marketinfo/marketinfo.html?sym=vsl&links=http://nyse.com/marketinfo/marketinfo.html?sym=vsl&links=
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    VSNL with its dedicated work force of about 2000 employees is

    committed to providing efficient and cost effective world class

    telecommunications services.

    VSNL AND ITS EMPLOYEES

    VSNL offers its employees careers and not jobs. The large numbers of

    employees with life tenure at VSNL testify to that. The secret to this

    loyalty lies in the following:

    Performance Based Culture:

    VSNL has a strong performance based culture wherein the performance

    and potential of the employee determines their sustenance and growth.

    Growth:

    Due to the scorching pace of growth VSNL provides its achievers a fast

    paced growth path. Those who show potential are soon given higher

    responsibilities. Employees grow into higher roles within the multiple

    business units of VSNL as well as group companies in the telecom

    space and outside it.

    Competency and skill up gradation:

    VSNL believes in upgrading the competency and skill level of the

    organization through upgrading the competency and skill levels of its

    employees. The two initiatives through which this is sought to be

    achieved is

    Resource Planning Through which employees are identified

    and moved across business units and functions.

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    Training - We provide extensive training inputs in technical and

    managerial areas. Employees are expected to maintain their

    technical excellence and develop managerial skills through the

    process of training.

    Good HR Practices:

    Fair and transparent Performance Evaluations:VSNL has an

    online appraisal system based on the Balanced Score Card. The

    system is completely transparent and is used to drive performance

    through the organization. The system defines expectations from theemployee, monitors his/her performance and finally helps in the

    evaluation.

    Compensation linked to achievement:At VSNL your compensation

    is strongly linked to your performance. All employees have the

    opportunity to perform exceptionally and get paid exceptionally

    Employees @ VSNL:-

    High achievement profile We are looking for employees who

    have demonstrated high achievement profile.

    Domain expertise Employees need to have in depth knowledge

    of their areas of expertise.

    Team player VSNL is looking for individuals who contribute

    strongly towards team goals and have the interpersonal skills that

    help to forge strong relationships within a team.

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    Integrity Integrity is a very basic requirement from any

    employee in VSNL. The employee has to have the ability to

    discern wrong from right and take a stand against it. The employee

    has to have the ability to say no to shortcuts which compromise

    his/her and/or the companys integrity.

    CORPORATE STATEMENT OF VSNL

    Corporate Statement

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    Enriching life by enabling

    reliable and

    affordable

    communication anytime,

    anywhere.

    We will strive to be the

    preferred partner to our

    customers by providing

    appropriate and

    cost-effective

    communication solutions.

    Customer

    Delight

    Excellence

    Teamwork

    Trust

    Competitive

    Employer of

    Choice

    BOARD OF DIRECTORS OF VSNL

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    Mr Subodh Bhargava

    Designation : Chairman

    Address :Videsh Sanchar Nigam Limited, Videsh Sanchar Bhavan,

    Bangla Sahib Road, New Delhi 110 001

    Mr. Srinath Narasimhan

    Designation : Executive Director

    Address :

    Lokmanya Videsh Sanchar Bhavan,

    Opp. Kirti College,

    Prahadevi.Mumbai - 400 028

    Mr Ishaat Hussain

    Designation : Director

    Address :

    Executive Director (Finance)

    Tata Sons Limited

    Bombay House, 24 Homi Mody Street

    Mumbai - 400 001

    Mr. Kishor A. Chaukar

    Designation : Director

    Address :

    Managing Director. Tata Industries Limited

    Bombay House. 24 Homi Mody Street. Mumbai

    Mr. Pankaj Agrawala

    Designation : Director

    Address :

    Electronics Niketan 6,

    CGO Complex, Lodhi Road

    New Delhi 110 003.

    Dr. Mukund Govind Rajan

    Designation : Director

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    CAPITAL STRUCTURE OF VSNL

    Videsh Sanchar Nigam Limited was incorporated as a limited liability

    company under the laws of the Republic of India pursuant to the

    provisions of the Companies Act on March 19, 1986 and was, at that

    time, wholly owned by the Government of India. On April 1, 1986, the

    Company assumed control and management of all of the assets and

    employees of the Overseas Communications Service, a department of

    the Ministry of Communications of the Government. In 1992 and 1999,as part of its general policy of gradually reducing its holdings in public

    sector enterprises, the Government divested a portion of the equity of

    the Company to certain funds, banks and financial institutions controlled

    by the Government and the general public. In 1997 and 1999, the

    Government also sold some of its equity holdings through the issuance

    of Global Depositary Receipts (GDRs).

    On February 1, 2001, the Government of India announced its intention

    to sell from its holding shares equivalent to 25 percent of the outstanding

    equity of the Company to a strategic partner through the competitive

    bidding route. As per the announcement made on February 5, 2002 by

    the Government of India, Panatone Finvest Limited was selected by the

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    Government of India as the strategic partner for the sale of 71,250,000

    fully paid-up Equity Shares representing 25 percent of the voting capital

    of the Company. Subsequently, Panatone Finvest Limited purchased an

    additional 20 percent stake through Open/Tender Offer on June 8, 2002,

    increasing its stake to approximately 45 percent.

    The Company is the provider of public international telecommunication

    services in India routing international traffic to and from the domestic

    telecommunications network using a combination of satellite and

    undersea cable links. The Company also provides national long distance

    telecommunications services, leased lines, internet and broadband

    services.

    Capital Structure as of 31 March 2006

    The Company was registered with limited liability on March 19, 1986

    under Indian Companies Act, with a Share Capital of Rs.100 Crores

    represented by 1,000,000 shares of Rs.1,000 each. There have been no

    changes in the amount of the Authorised Share Capital of the Company

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    since 1986 till December 2000. However, the structure of the paid-up

    capital changed through various restructuring processes which included

    bonus issues in 1992 & 2000 and a GDR issue in 1997 resulting in the

    increase of Authorised Share Capital to Rs.300 Crores and Paid-Up

    Capital of Rs.285 Crores.

    Of this, as of 31 March 2006 the Panatone Finvest Limited (alongwith

    other Tata Group companies) holds approximately 45%, Government of

    India holds 26.12% and the rest of the share capital is held by Foreign

    Institutional Investors, financial institutions, banks, depositary for

    American Depositary Receipts (ADRs) and public. The equity shares of

    the Company are listed at The Stock Exchange, Mumbai and the

    National Stock Exchange and its ADRs are listed on US market at the

    NEW YORK STOCK EXCHANGE (NYSE). The listing on NYSE was

    done through the conversion of the underlying GDRs to ADRs. At

    present each ADR is equivalent to two equity shares.

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    SOME OF THE MILESTONE OF THE COMPANY

    2006 VSNL completes acquisition ofTeleglobe

    2005 VSNL chosen Network Administrator of global consortium cable system SEA-

    ME-WE4 First for an Indian company

    2005 VSNL completes 5 Years of listing at the NYSE

    2005 VSNL Acquires Tyco Global Network Becomes one of the worlds largest

    submarine cable system.

    2004 VSNL Completes First Indian-Owned Undersea Fiber-Optic Cable

    2004 VSNL signs landmark deal with Bharti for 100,000 fibre kms National Long

    Distance Backbone

    2004 VSNL First Telecom Service Provider To Achieve TL 9000 Certification Globally

    2004 VSNL Acquires Assets of DishnetDSL

    2004 VSNL America Inc., wholly owned subsidiary of VSNL awarded International

    Section 214 authorisation in the United States, to operate in the United States

    as an international-facilities-based and resale carrier.

    2004 VSNL Singapore Pte Ltd formed to function as holding company for overseas

    business of VSNL Group and Head Quarter for VSNL International.

    2003 VSNL Floats Subsidiary, VSNL America Inc In the United States

    2003 VSNL Receives License To Offer ILD Services In Sri Lanka2003 VSNL presents TATA INDICOM, a new brand for Telecom Services

    2002 Unveiling of SAT-3/WASC/SAFE submarine cable station in Kochi.

    2002 VSNL becomes a TATA Group Company. TATA stake at 45%

    2002 GOI disinvestment through Strategic Sale (25%) and Employee Stock Option

    (1.97%).

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    HFCL CONNECT

    HFCL Infotel Ltd., the first basic telephony services provider for Punjab

    launched its operations on 16th October, 2000. Today CONNECT has added a

    milestone to the rich economy of Punjab by providing world-class telephony and

    data services in the state.

    CONNECT is a business venture of Himachal Futuristic

    Communications Ltd., India's leading telecommunications giant.

    CONNECT is further supported by the expertise of Lucent Technologies

    USA, IIT Chennai, Compaq, Cisco, CGI, Bell Nexxia and Cincom.Lucent is a Fortune 40 company and the world leader in design,

    development and manufacture of communication systems.

    With an investment of over Rs.1200 Crores HFCL Infotel, has set up a

    state-of-the-art network in over 66 towns and cities in Punjab. The

    average revenue per line (ARPL) for CONNECT subscribers is already

    amongst the highest in the country. With a clear focus on acquiring

    quality subscribers through targeted roll out and by using revenue

    oriented marketing plans we intend to maintain this trend in the future.

    The wide array of innovative products and services in the data and

    broadband segment has further allowed the Company to maximize it's

    revenue drive.

    The service encompasses voice, data and video, via single connectivity,

    as also mobile telephony based on CDMA technology, to customers.

    CONNECT was the first operator in the country to provide a CDMA

    based pre-paid mobile service. Besides telephony and Internet access

    CONNECT services include an array of broadband, enhanced and data

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    services like Internet Leased Lines, ISDN, VPN, Centrex, Web Hosting,

    DSL and server Co-location. Customised solutions specifically for

    corporate customers are devised and provisioned. Services like Video

    Conference, Audio Conference, Phone to mail and VMS form an

    important part of the CONNECT portfolio.

    Exclusive world-class showrooms to provide high quality customer care

    to CONNECT subscribers at an exclusive one-stop shop have been set

    up to fulfill total communication needs of the subscribers. It provides a

    single window opportunity to address all customer queries, besides

    serving as an outlet for sale of all CONNECT products. These

    aesthetically beautiful outlets allow CONNECT subscribers to subscribe

    to any of CONNECT services while experiencing a demo of exclusive

    CONNECT services like Phone to mail, Audio Conference Bridge, Video

    Conference, DSL etc. At the Connect World, a customer can subscriber

    to a telephone connection, buy Phone cards, CDMA mobile handsets,

    Customer Premises Equipment (CPE) and Internet products. One canalso make bill payments, register a complaint and seek information on

    any of the company's products or services. Specially trained executives

    attend to the customer needs and ensure that they are met with speed

    and efficiency.

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    An agreement has been signed between the Government of Punjab and

    HFCL Infotel Ltd. wherein CONNECT will provide free data connectivity

    for the government's e-governance & citizen services projects. This

    connectivity will facilitate communication between state headquarters,

    district headquarters, sub-divisions and blocks. The e-Governance

    project will help the government in improving revenue collection, delivery

    of citizen services, increase government accountability and transparency

    thereby increasing citizen trust in government besides providing

    effective MIS for government decisions. This will effectively involve

    stakeholders, including NGOs, business, and interested citizen in new

    ways of meeting public challenges.

    Indeed with a future-proof network, that connects every town and village

    in Punjab, along with an emphasis on service excellence and quality,

    HFCL's CONNECT has gone much beyond customer expectations.

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    AIRTEL

    Airtel comes to you from Bharti Tele-Ventures Limited - a part of the

    biggest private integrated telecom conglomerate, Bharti Enterprises.

    Bharti Enterprises has been at the forefront of technology and has

    revolutionized telecommunications with its world class products and

    services. Established in 1976, Bharti has been a pioneering force in the

    telecom sector with many firsts and innovations to its credit. Bharti has

    many joint ventures with world leaders like Singtel (Singapore Telecom);Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find,

    Mauritius; International Finance Corporation, USA and New York Life

    International, USA.

    Bharti provides a range of telecom services, which include Cellular,

    Basic, Internet and National Long Distance. Bharti also manufactures

    and exports telephone terminals and cordless phones. Apart from beingthe largest manufacturer of telephone instruments in India, it is also the

    first company to export its products to the USA.

    The Airtel visual identity has different elements that work together to

    create a strong and consistent identity for the brand. The most important

    of these are:

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    The Airtel Logo

    The Airtel logo is a strong, contemporary and confident symbol for a

    brand that is always ahead of the rest. It is a specially drawn wordmark.

    The Airtel Image style

    It incorporates two solid, red rectangular forms whose counterform

    creates an open doorway.

    The Airtel Typographical style

    The title case lettering with its capital 'A' was deliberately chosen to

    reinforce the brand's leadership position. The red dot on the letterform 'I'

    cues Airtel's focus on innovation.. The words 'Express Yourself' are very

    much part of the brand identity.

    The Airtel Colour Palette

    The lettering is grey so that the pure black of Airtel is visually unharmed.

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    BHARAT SANCHAR NIGAM LTD.

    On October 1, 2000 the Department of Telecom Operations,

    Government of India became a corporation and was christened

    Bharat Sanchar Nigam Limited(BSNL). Today, BSNL is the No. 1

    Telecommunications Company and the largest Public Sector

    Undertaking of India with authorized share capital of $ 3977 million

    and networth of $ 14.32 billion. It has a network of over 45 million

    lines covering 5000 towns with over 35 million telephone

    connections.

    With latest digital switching technology like OCB,EWSD,AXE-

    10,FETEX,NEC etc. and widespread transmission network including

    SDH system upto 2.5 gbps, DWDM system upto 80 gbps,Web

    telephony,DIAS,VPN, Broadband and more than 400,000 data

    customers , BSNL continues to serve this great nation .Its

    responsibilities include improvement of the already impeccablequality of telecom services, expansion of telecom network,

    introduction of new telecom services in all villages and instilling

    confidence among its customers.

    BSNL has managed to shoulder these responsibilities remarkably

    and deftly. Today with over 45 million line capacity, 99.9% of its

    exchanges digital, nation wide Network management & surveillance

    system (NMSS) to control telecom traffic and over 4,00,000 route

    kms of OFC network, Bharat Sanchar Nigam Ltd is a name to reckon

    with in the world of connectivity. Along with its vast customer base,

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    BSNL's financial and asset bases too are vast and strong. Consider

    the figures, as they speak volumes on BSNL's standing:

    The telephone infrastructure alone is worth about Rs. 1,00,000 crore

    (US $ 22.74 billion)

    Turnover of Rs. 31,400 crore ( US $ 7.14 billion)

    Add to which, BSNL's nationwide coverage and reach,

    comprehensive range of telecom services and a penchant for

    excellence; and you have the ingredients for restructuring India for a

    bright future. Today.

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    PRODUCT PORTFOLIO

    Dialup Internet Access

    Unlimited Internet Plans from Tata Indicom

    Total Internet...

    Broadband Access

    Experience the infinite possibilities of internet

    with this unique featuers from Tata Indicom

    Broadband...

    http://www.tataindicombroadband.in/https://services.vsnl.net/new/buy_online.jsp
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    Calling Cards

    Call India and the world at attractive tariff

    rates...

    Wi Fi

    Experience Wireless Broadband ...

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    Net Telephony

    Make international calls at tarrifs as low as

    99 paise using Net telephony...

    helloworld

    Call US, UK, Canada, Singapore & the Gulf

    at very attractive rates...

    http://internet.vsnl.in/nettelephony/index.html
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    PC Security

    World Class PC Security at unbelievable

    Prices! Only from Tata Indicom Broadband

    Encyclopaedia Britannica Online. This

    unique offer that combines the depth and

    breadth of the Encyclopdia Britannica

    with the power of the internet.

    Gobal Roaming

    Roaming coverage extends more than 150

    countries and more than 14,000 locations...

    Mail Services

    Increase your mail box size upto 75 MB and

    get multiple Email IDs on the same account...

    OBJECTIVES OF THE RESEARCH

    5. To study the market strategies of VIDESH SANCHAR NIGAM

    LTD.

    6. To study the various services provided to customers by the

    company.

    7. To study the customer review and their satisfaction level.

    8. To understand the various problems faced by customer.

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    RESEARCH METHODOLOGY

    Universe :- The Universe in this problem is the four Internet Service

    Providers operating in Jalandhar

    Category of Respondents :- The respondents which I will take into

    consideration for this study will be the Home Users, Coroporates and

    Local SMEs using the services of these ISPs

    Sampling Design :- The sampling design for the project will be Random

    Sampling Method.

    Size of Sample :- For solving the problem of the project I will take the

    views of 200 Respondents

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    Research Approach :- Survey Method

    Data Collection Instruments :- The data Collection instrument will be

    questionnaires

    Source of Data :- Both primary and Secondry data will be the Source fo

    this study.

    LIMITATION OF THE RESEARCH

    1. Time constraint

    2. Response of the respondents

    3. Small sample size.

    4. Poor response of the respondents

    5. The study is conducted in Jalandhar area and not applied to the

    region.

    6. Different services provided by the same ISP and competeting in

    between ourselves.

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    STEPS FOR RESEARCH METHODOLOGY

    The seven steps that followed as a research methodology are as follow:-

    Define the problem that is faced

    Specify what information is needed

    Identify the source of Information

    Decide the technology for enquiring the information

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    Gather and process the information

    Analysis & interpret the Information

    Present the finding to the decision matter.

    LITERATURE REVIEW

    Telecom Asia, Nov, 2003

    www.dxm.org/techonomist/news/vsnl2.html

    Hong Kong: Asia Netcom enters into a partnership with Indian Internet

    services firm Sify to provide high-speed private network services to

    global firms planning to set up back office units in India, Asia Netcom

    president William Barney says the new agreement aimed to exploit an

    outsourcing boom in India and would help triple the company's revenue

    from the country by 2008.

    ------------------------------------------------------------------------- -----------------------

    The Indian Techonomist By: Deus X Machina,

    http://findarticles.com/p/articles/mi_m0FGI/is_11_14http://dxm.org/techonomist/dxm.htmlhttp://findarticles.com/p/articles/mi_m0FGI/is_11_14http://dxm.org/techonomist/dxm.html
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    India's VSNL, MCI, to launch Internet service by August 15 th

    wwwdxm.org/techonomist/news/vsnl2.html

    August 1, 1995: The Indian public may get full Internet access atreasonable prices when Videsh Sanchar Nigam Limited (VSNL), the

    public sector company with a monopoly over overseas communications,

    launches its Internet Gateway "by August 15th" - Indian Independence

    Day. The Gateway will be connected to the world through satellite or

    terrestrial links to MCI.VSNL's plans were leaked earlier this year, and

    were very confused when reported in a bulletin from the (then unnamed)

    Indian Techonomist on April 23rd. They seem somewhat clearer now,

    and have already purchased equipment (including Alpha servers from

    Digital).

    Unlike the two other government-run networks, ERNET and NICNET,

    which are not available to the general public, VSNL's service will be

    open to students, 'professionals' (individuals) and corporations. They willalso be available to e-mail providers (who are burdened by $80,000

    annual licence fees) and Internet service providers. The latter don't exist

    yet, thanks to Department of Telecommunications (DoT) rules that

    increase charges prohibitively when two networks interconnect. VSNL

    itself will be able to offer its services because it will emphasise

    international connectivity - hence the service's name, the 'Gateway' -

    and will not build infrastructure within the country.

    VSNL will be available through dial-up lines in Delhi and Bombay, and

    later other cities such as Bangalore and Pune. It will be available

    through the DoT's I-NET network. This is based on the X.25 protocol

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    and can be accessed through a local call in major cities, and through a

    special long-distance code at concessional rates from elsewhere.

    As predicted in the earlier bulletin, VSNL will probably not be able to

    cope with demand. It expects at least 20,000 users nationwide in the

    first year, but has planned for only about 100 dial-in lines. It's inter-city

    network will be based on 64 kbps lines leased from the DoT, and it's link

    to MCI in the US will be between 128 kbps and 2 Mbps.

    And VSNL is - as their Chief General Manager, Planning, told the

    Techonomist today - still committed to providing 250 hour/year accountsto 'students' for US$ 16 (Rupees 500) annually, later this year. To begin

    with, services will range from $160 for 250 hours for individuals (shell

    account only), through corporate SLIP/PPP at $600/year, to 128 kbps

    leased connections to other service providers at $100,000/year

    (excluding last-leg line costs).

    Intelsat to Launch Internet Connectivity Via Satellite in India

    World IT Report, Apr 10, 2003

    http://findarticles.com/p/articles/mi_m0FGI

    Intelsat, the US satellite communication provider, plans to launch

    Internet connectivity via satellite covering both the space and terrestrial

    segments. Up until now, the company only offered solutions in the space

    segment.

    Erich M Fischer, the company's director for strategy and business

    development, stated that Intelsat's Internet Trunking Service is the first

    http://findarticles.com/p/articles/mi_qn4175/is_20030410http://findarticles.com/p/articles/mi_qn4175/is_20030410
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    product that combines space and terrestrial segment capabilities in

    order to provide high-speed Internet backbone connectivity for Internet

    service providers (ISPs). Intelsat plans to introduce this product in India

    first and then in other developing markets in Africa, Latin America and

    Asia Pacific, according to the Financial Express.

    Intelsat plans to introduce its Internet Trunking service to both category

    'A' and 'B' ISPs via Intelsat Global Sales and Marketing Ltd., Intelsats'

    subsidiary. The Internet Trunking Service will provide Internet access via

    satellite by providing space segment capacity, a regional hub, teleport

    service and access to the Internet backbone in either in Europe or in the

    US.

    Intelsat has four satellites covering the Indian Ocean region (each at 60,

    62, 64 and 66 degrees) and another two satellites covering the Asia

    Pacific region at 83 and 110.5 degrees. Intelsat has a total of 21

    satellites in orbit, each with a capacity of over 90 transponders. -

    (EMEconomy.com)

    March 22, 1999

    India ISP Policy Helps Networkers, Neglects Providers

    http://www.internetnews.com/bus-news/article.php/84111

    The much acclaimed ISP policy is good for network equipment vendors

    but e-mail service providers continue to be left out in the cold. while

    much has been written about the vast market the policy opens up for the

    prospective ISPs, little is known or at least is being discussed about the

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    business opportunities that this will open up for networking component

    vendors, specially the infrastructure equipment sellers.

    Obviously, they will start making money even before the ISPs do.

    Servers, routers, modems and local area networking equipment would

    comprise the main components of the network.

    "If one goes by the experience in South East Asia, there should be over

    300 ISPs in a city like Mumbai," maintained a senior official at Ascend

    Communications Pte Ltd. This, he points out, would open up a large

    market for infrastructure equipment. Most of the networking majors arefinalizing strategies to get a big slice of the market. 3COM, Digital,

    Ascend, and Cisco have already started their marketing exercise, while

    Shiva is also believed to be eyeing the market. 3COM has already

    supplied components for the state-run Videsh Sanchar Nigam Ltd.'s

    (VSNL) network. As far as remote access servers are concerned, 3COM

    boasts of a 60 percent market share worldwide.

    'Total control,' as its remote access concentrator is called, is very

    popular among ISPs, sources maintain. Supporting both digital and

    analog lines, it is claimed to provide flexibility to the ISPs. Ascend has

    also emerged strong in remote access servers in the Southeast Asian

    markets. While Cisco is the leading player in routers, Digital is strong in

    servers. The cost of setting up a network depends on the number ofsubscribers an ISP is targeting and the features which an ISP will

    provide. For an ordinary dial-up service, cost per port is anywhere

    between Rs 20,000 (US$472) and Rs 30,000 (US$709).

    http://www.ascend.com/http://www.ascend.com/http://www.3com.com/http://www.dec.com/http://www.cisco.com/http://www.shiva.com/http://www.ascend.com/http://www.ascend.com/http://www.3com.com/http://www.dec.com/http://www.cisco.com/http://www.shiva.com/
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    Industry observers point out that an important factor which will impact

    the life expectancy of ISP industry entrants is the port tariffs to be

    charged by VSNL. "Such high charges will make the whole business

    unviable," said a potential Internet service provider. "Instead, to

    encourage the services, the government should lower the port charges

    to be paid by the service providers, which will in turn lower the tariff

    which the companies will charge from the subscribers," he said. This

    factor has dampened the prospects of having a large base of ISPs, as

    only big players can be expected to remain in the sector, being able to

    sustain losses for a long time.

    Another major problem about the Internet in the country is that the policy

    does not permit the ISPs to provide Internet connection through cable

    TV networks. In India, there are more than 50 million subscribers of

    cable TV, according to a rough estimate. Many feel that it will be easier

    to distribute Internet services through cable networks.

    Moreover, the ambitions of e-mail service providers wishing to make a

    head-start in the business of Internet service are difficult to realize,

    according to market observers. The policy states that e-mail licensees

    have to obtain separate ISP license for each service area and should

    implement the service independent of their existing e-mail networks.

    The e-mail licensed service is based on a different protocol and the e-

    mail nodes are connected with 64 kbps data leased lines and may not

    be upgradable to provide Internet service at all.

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    VoIP will Benefit Small Service Providers in India

    World IT Report, Apr 10, 2003

    http://findarticles.com/p/articles/mi_qn4175/is_20030410/ai_n12929284

    Voice over Internet Protocol (VoIP) will not only benefit the large service

    providers in India, but will also offer business opportunities to smaller

    companies.

    Vijay Yadav, the country manager of CommWorks India, a 3Comm

    company, recently stated "VoIP will provide scope for new and cost

    effective service without huge investments. The scope is not just for thebig companies as even smaller companies can come out with cutting

    edge services," according to the Business Standard.

    Vijay Yadav added that in the traditional telephony industry, the cost of

    starting new services and executing them is high, yet with the

    introduction of VoIP, the cost of both will fall. In addition, telecom service

    providers can use VoIP to provide higher value services (like voice mail

    and roaming mailing) to earn more revenues. -(World IT Report.com)

    NetKracker Third Largest ISP in India - Internet service provider -

    Brief Article

    ISP Business, Sept, 2001

    http://findarticles.com/p/articles/mi_m0IGP/is_9_4/ai_78974803

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    NetKracker, the retail ISP arm of Wipro Net, has jumped to the third

    position after Videsh Sanchar Nigam Ltd. (VSNL) and Satyam in terms

    of number of Internet subscribers in India. P.B. Madappa, vice president

    of marketing at NetKracker said its Internet subscribers numbered

    76,000 in 15 cities.

    NetKracker has acquired a market share of 9.5 percent in ISP business

    while Satyam Infoway enjoys a market share of 23 percent and VSNL

    has 40 percent. Madappa said while VSNL and Satyam remained

    focused on the SME market, NetKracker is looking at the growing home

    segment to push up subscription. He said though the availability of PCs

    at home has been the greatest barrier, the company has been able to

    attract a number of subscribers within a year of its launch, aided by a

    brand building campaign.

    VoIP will Benefit Small Service Providers in India

    World IT Report, Apr 10, 2003

    http://findarticles.com/p/articles/mi_qn4175/is_20030410/ai_n12929284

    Voice over Internet Protocol (VoIP) will not only benefit the large service

    providers in India, but will also offer business opportunities to smaller

    companies. Vijay Yadav, the country manager of CommWorks India, a

    3Comm company, recently stated "VoIP will provide scope for new and

    cost effective service without huge investments.

    The scope is not just for the big companies as even smaller companies

    can come out with cutting edge services," according to the Business

    Standard.

    http://findarticles.com/p/articles/mi_qn4175/is_20030410http://findarticles.com/p/articles/mi_qn4175/is_20030410/ai_n12929284http://findarticles.com/p/articles/mi_qn4175/is_20030410http://findarticles.com/p/articles/mi_qn4175/is_20030410/ai_n12929284
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    Vijay Yadav added that in the traditional telephony industry, the cost of

    starting new services and executing them is high, yet with the

    introduction of VoIP, the cost of both will fall. In addition, telecom service

    providers can use VoIP to provide higher value services (like voice mail

    and ro