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Telecommunication is such a sector which being dynamic in nature is one of the fastest growing
sectors in India. It is dynamic in nature because of the freedom the consumer got to customize
the whole service delivery and the mobile number portability which has made the competition
even more intense. In this scenario the organization inflict switching costs on their customers, to
inhibit them from defecting to new service providers and this also plays a part in maintaining a
good satisfaction rate among the customers. Customer satisfaction is a key issue for every
company wishing to increase customer loyalty and there by create a better business
performance. An important question is therefore: What is the relationship between customers
satisfaction, perceived value and loyalty? The purpose of this paper is to answer this question
and to investigate the above an empirical study was conducted on customers of various
telecommunication firms. The results, evoked from the survey of service users, indicate that
companies that strive for customer satisfaction should focus primarily on loyalty and perceived
value. There is a strong relationship that exists between Perceived Value, Loyalty and Customer
Satisfaction and this has been depicted in the model which shows the link between them. Even
though the customers are happy the companies need to improvise on their tactics which can help
in improving customer retention rate.

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