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The IUP Journal of Marketing Management
A Study of Market Share and Factors Affecting the Choice of Cellular Service Provider Among Young Age Group of Kolkata
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For the last few decades the growth in telecommunication sector in India has gained momentum on account of joint effort of government and the non-government sectors. This galloping growth is due to the enormous increase in mobile subscriber base. As general customers, various factors affect our decision while choosing any particular service provider. So, this paper looks into two major aspects of mobile telephone industry—the concentration of market share and identifying the most important and the least important factors affecting choice of a service provider with the help of tools like Herfindahl Index (HHI), ANOVA and Rank Score Analysis. The results denote that the young users' market is highly concentrated with Vodafone capturing the largest portion of the market. The analysis also reveals that the factors like good network coverage and family friends using the same network are of utmost importance to the customers whereas the offer of free connection with handset being the least important one.

 
 
 

Over the last few decades the telecommunication sector in India has undergone a sea change on account of the interplay of the Government and private sector. It has played an important part in bridging the rural-urban gap. Rapid economic growth, leading to a rise in the standard of living of individuals has been the main driving factor for the fastest growth of the Indian Telecom industry. Bharat Sanchar Nigam Limited (BSNL) has been the first and largest telephone operator. Worldwide it holds the 7th position with respect to the number of subscribers. After the entry of private players in this sector in the 1990s, service providers like Bharati, Tata Indicom, Vodafone, MTNL, BPL, Reliance, Idea and Aircel, etc., have become the major operators in India apart from BSNL.

The first non-commercial mobile telephone service started in Delhi in 1985 and on a commercial basis from August 1995. The data in Table 1 gives us some idea about the galloping growth in the telecommunication sector, especially the mobile subscriber base.

As depicted in Table 1, among the total number of telephone subscribers in India, 88.76% are cell phone subscribers and merely 11.24% are landline users. In addition to that the data shows that monthly cell phone addition is about 9.16 million, which is undoubtedly a robust figure.

 
 
 

Marketing Management Journal, Bharat Sanchar Nigam Limited, BSNL, Code Division Multiple Access, CDMA, Global System for Mobile Communications, GSM, Cellular Operators Association of India, COAI, Economic Growth, Foreign Direct Investment, FDI, Research Methodology, Innovative Marketing, World Trade Organization, WTO.