Group 3, BBA 3rd year
Prof. Sri Kumar
History of Cellphones
Use of Cellphones
An Introduction to the mobile market in India
History of mobiles in India
Mobile phone scenario today
Behavior of the mobile manufacturing during last 5 years
Market share of different mobile companies
Result of the survey undertaken in hostel
A mobile phone (also known as a cellular phone, cell phone, and
a hand phone) is a device that can make and receive telephone
calls over a radio link while moving around a wide geographic
area. It does so by connecting to a cellular network provided by
a mobile phone operator, allowing access to the public
telephone network. By contrast, a cordless telephone is used
only within the short range of a single, private base station.
Cell phone technology is based on radio technology
that was developed in the 1940s. The first official
mobile phone was used by the Swedish police and
resembled two-way radio technology. In addition, the
phone could only make 6 phone calls before the car’s
battery was drained.
More modern cell phone technology started when an
engineer at Bell Lab came up with the idea of cell
towers that would transmit and receive signals in
The electronics that were used in the first cell phones were
developed in the 1960s and mobile phone users had to stay
within one cell area. Then in 1970, Amos Edward Joel
developed the call handoff system, which was a technology
that facilitated phone calls from one area to another that
Most of the time, these phones were installed in vehicles
because of the large battery requirements. The MTA
(Mobile Telephone System A), available in Sweden,
weighed over 80 pounds! Later versions weighed about 20
Cell phones today have advanced entirely. Not only have
cell phones gotten lighter (3 ounces), but they also are
cheaper and more efficient. Reception areas are no
longer an issue, for they are found worldwide. New
technologies including, home-to-cell phone portability and
wireless numbers make wireless technology dominant.
Cell phones have also come a long way since the heavy
package you have to charge in your car. Cell phones are
now pocket-sized and their uses and features go beyond
phone calls. You can now surf the web, save files, send
emails and take pictures all by the devise in the palm of
All mobile phones have a number of features in common, but manufacturers also
try to differentiate their own products by implementing additional functions to
make them more attractive to consumers. This has led to great innovation in
mobile phone development over the past 20 years.
The common components found on all phones are:-A battery, providing the
power source for the phone functions.
An input mechanism to allow the user to interact with the phone. The most
common input mechanism is a keypad, but touch screens are also found in
some high-end smartphones. A screen which echoes the user's typing, displays
text messages, contacts and more. Basic mobile phone services to allow users
to make calls and send text messages. All GSM phones use a SIM card to allow
an account to be swapped among devices. Some CDMA devices also have a
similar card called a R-UIM.
The most commonly used data application on mobile phones is SMS text messaging.
The first SMS text message was sent from a computer to a mobile phone in 1992 in
the UK, while the first person-to-person SMS from phone to phone was sent in
Finland in 1993.
The first mobile news service, delivered via SMS, was launched in Finland in 2000,
and subsequently many organizations provided "on-demand" and "instant" news
services by SMS.
GSM feature phones require a small microchip called a Subscriber Identity
Module or SIM Card, to function. The SIM card is approximately the size of a
small postage stamp and is usually placed underneath the battery in the rear of
the unit. The SIM securely stores the service-subscriber key (IMSI) and the Ki
used to identify and authenticate the user of the mobile phone. The SIM card
allows users to change phones by simply removing the SIM card from one
mobile phone and inserting it into another mobile phone or broadband telephony
The first SIM card was made in 1991 by Munich smart card maker Giesecke &
Devrient for the Finnish wireless network operator Radiolinja.
USE OF CELL PHONES
Some people carry more than one cell phone for different purposes, such as for
business and personal use. Multiple SIM cards may also be used to take advantage
of the benefits of different calling plans—a particular plan might provide cheaper local
calls, long-distance calls, international calls, or roaming. The mobile phone has also
been used in a variety of diverse contexts in society, for example:
A study by Motorola found that one in ten cell phone subscribers have a second
phone that often is kept secret from other family members. These phones may be
used to engage in activities including extramarital affairs or clandestine business
Some organizations assist victims of domestic violence by providing mobile
phones for use in emergencies. They are often refurbished phones.
The advent of widespread text messaging has resulted in the cell phone novel; the
first literary genre to emerge from the cellular age via text messaging to a website
that collects the novels as a whole.[
Mobile telephony also facilitates activism and public journalism being explored by
Reuters and Yahoo! and small independent news companies such as Jasmine
New in Sri Lanka.
The United Nations reported that mobile phones have spread faster than any other
technology and can improve the livelihood of the poorest people in developing
countries by providing access to information in places where landlines or the Internet
are not available, especially in the least developed countries. Use of mobile phones
also spawns a wealth of micro-enterprises, by providing work, such as selling airtime
on the streets and repairing or refurbishing handsets.[
In Mali and other African countries, people used to travel from village to village to let
friends and relatives know about weddings, births and other events, which are now
avoided within mobile phone coverage areas, which is usually greater than land line
The TV industry has recently started using mobile phones to drive live TV viewing
through mobile apps, advertising, social TV, and mobile TV. 86% of Americans use
their mobile phone while watching TV.
In parts of the world, mobile phone sharing is common. It is prevalent in urban India,
as families and groups of friends often share one or more mobiles among their
members. There are obvious economic benefits, but often familial customs and
traditional gender roles play a part. It is common for a village to have access to only
one mobile phone, perhaps owned by a teacher or missionary, but available to all
members of the village for necessary calls.
AN INTRODUCTION TO THE
MOBILE MARKET IN INDIA
15 years ago, having a mobile phone was considered a luxury, but now it is
a very common commodity. Just look around and you will see someone
talking on a mobile phone. This device has become an integral part of our
life. It is very interesting to see how the mobile handset market has evolved
from ten years before to what it is now. What is even more interesting is
how competition plays a very important role in determining the market
condition today and tomorrow. Initially when Motorola introduced the
mobile handset it was said that this device had a huge potential and that
prediction has come true.
In this report we will be observing the present market share of companies
producing mobile handsets, their marketing strategies, the market
structure, and other such details.
HISTORY OF MOBILES IN INDIA
Mobiles were introduced by Motorola in India. They were extremely costly and
hence, majority of the Indians could not afford them. It was completely a luxury
good. But just like in the case of any other electrical appliance, the prices of
mobiles fell as technology improved and competition emerged. In a few years
other companies like Nokia, Sony Ericson, LG, and Samsung launched their
products in India.
What followed was a huge war for market share, each company bringing in new
models, newer technology, and reducing the prices of older models. This resulted
in making mobiles affordable to a normal person in India.
MOBILE PHONE SCENARIO TODAY
First it was the t-phase (time phase), in which both the time and location used to be fixed.
This phase was in early 19’s. Then came the e-phase (electronic phase) and everything was
teased. But still the locations where you can use e-sources were fixed. Then came the m-
phase (mobile phase) with the world of mobiles. And even the restriction on the location
domain was put off. Now you can communicate and interact with the world anywhere
anytime. This m-phase led to the development of the mobile handsets.
With 115.3 million forecasted mobile owners, INDIA ranks 3rd in the world behind only China
Indian mobile owners are increasing as a result of cheaper call rates, cheaper handsets and
widespread availability of prepay lowering the barriers to ownership.(Even a rikshaw wala
owns a mobile today )
Relatively low GDP combined with the popularity of prepay still exerts downward pressure on
ARPU (average revenue per user) in India. 25-29 year olds spend the most, with ARPU at over
$8 per calendar month.
The rising use of data services, particularly SMS, has stemmed ARPU decline in this age
group. This is not the case among older users where ARPU is fast in decline, particularly
among 35-39 year olds where we expect the greatest churn to post-paid contracts.
We are still sticking to the old concept of chatting. In early 19 century people used to sit
in veranda and talk or there used to be live contact between people. Even today, we are
still following the same concept. Only the level of technology used has changed and is
Today in INDIA we have many companies in the mobile handset market. Some of them
are listed below:
2. Sony –Ericsson
Behavior of the Mobile Manufacturing
Industries during Last 5 Year
Analysis of the Above Graph
As can be observed from the graph of the market shares of different companies,
the dominant company in the market today is SAMSUNG.
Starting from the October 2010, Nokia is leading the mobile industry, but
somewhere in April - July 2011 the market shares of nokia suddenly fell down.
During the same time there was a peak in the market shares of Samsung. But
soon after Nokia recovered its market shares and stood again as the leading
mobile manufacturing company in INDIA.
Nokia says the terrible figures are the result of a collapse in demand for its new
handsets as consumers tighten their belts and retain their old mobiles for far
longer than was the norm during the years of economic boom. The company has
also been losing top-end consumers to the iPhone and RIM's re-invigorated
Market share of different mobile
companies listed below:
Position Group Company Market Share
1 Nokia 38.2
2 Samsung 25.3
3 Micromax 6.3
4 Blackberry 4.7
5 Karbonn 4.3
6 HTC 3
7 Sony 3
8 Spice 2.5
9 Apple 2.5
10 LG 2.5
We ask some question to the students of some colleges(
RIMS, Rourkela; Municipal collage, Rourkela; Ispat Auto.
Collage, Rourkela) about their cellphones which are they
used. The questions are given bellow:
1.Name of the student?
6.Normal bill per month?
8.Since how long phone is being used?
9.Dual sim phone or two phones?
10.How much prolonged use of phone is harmful?
11.Without phone how much handicapped do you feel? Rank 1 to 10.
12.No. of phones in family?
13.Shall phones be banned in colleges?
14.Incomming v/s outgoing?
15.If asked, what features would you like to delete from your phone?
Result Of The Survey Undertaken In
To analyze the behavior of mobile market, we took out a survey in our hostel,
regarding, which mobile phones they use and are they satisfied with their mobile
The outcome was that, indeed the NOKIA stood out as the most favored one. The
good feature was its cost effectiveness and reliability. Most people said that it’s
made for rough and tough use.
The second best mobile came out to be SAMSUNG. Its positive features were its
cost effectiveness and sleek features. Mostly being young, most of the people
were attracted to its eye catching designs.
These days the market of the so called china mobiles is growing, particularly in the
lower economic section. A glimpse of this was being seen during the survey. The
housekeepers mostly carry china mobile, mainly because it provides them with
more features including some high tech features plus it falls in their budget. On the
other hand, the students are not fond of these mobiles considering their reliability.
It was observed that mobiles produced by big brands like NOKIA, HTC,
SAMSUNG etc. fall under the category of normal goods whereas the china mobiles
and other cheap mobiles fall under the category of inferior goods as their demand
decrease with increasing income.
In India, innovation in utility cell phone model that help bring efficiencies in a
people's life will bring in sustained revenue and will be relatively more
difficult to replicate by new entrants. While social and video apps are doing
extremely well in India, it is time to look beyond these and deliver different
apps that can have a sustained business model.
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