RELIANCE MANAGERS

VENKAT
NEHA
VASUDHA
KAVITA
YATIN
MARKET SWOT
ANALYSIS
TELECOMMUNICATION
SEGMENTS
INDUSTRY OVERVIEW -
TELECOM
 Subscriber growth
180 164
CAGR - 38 %

120 98
76
60 53
44

0
2002 2003 2004 2005 Aug-06
 Subscriber Growth - Mobile vs Fixed
175

140 143
Mn. subscribers

105

70 52
42 43
38
35 41 41
7 13 34
0
2002 2003 2004 2005 2006
Fixed (mn. subs) Mobile (mn. subs)
Segment Cellular reach (2003-04) Cellular reach (End 2006 - Est.)

Locations Population Locations Population

Urban ~ 1700 of 5200 200 million ~ 4900 towns out 300 million
towns of nearly 5200
towns

Rural Negligible Negligible ~ 350,000 out of 450 million

607,000 villages

ON 31ST AUGUST, 2008 –

TOTAL CELLULAR
SUBSCRIBERS =
30,02,97,160
MAJOR PLAYERS IN THE
MARKET
 Subscribers Jul 06
Share (%)
(mn)
Company Presence

Fixed Mobile Fixed Mobile

BSNL Government owned. Has ramped up GSM services. National presence 37.4 17.7 74.7% 19.6%
(except Mumbai and Delhi)

MTNL Government owned. Operates in Delhi and Mumbai. 3.8 2.0 7.7% 2.3%

Integrated operator, with presence in all sectors. Largest mobile services

Bharti 1.4 19.6 2.7% 21.7%
provider.

Integrated operator. Plans expansion of GSM network apart from being

Reliance 3.0 17.3 6.0% 19.2%
the largest private CDMA operators.

Hutch Pure play GSM operator in 11 circles. 15.4 17.0%

IDEA Pure play GSM operator in 6 circles 7.4 8.2%

Integrated operator (along with VSNL) with presence in all segments.

Tata Teleservices 4.0 4.9 8.0% 5.4%
Provides CDMA services in 20 circles

Operates in 2 circles. Announced Plans to expand GSM footprint in North

Aircel 2.6 2.9%
and North east

Spice Pure play GSM player in 2 circles 1.9 2.1%

Others
0.4 1.4

Total 50 90
 A DREAM COMES
TRUE…
“MAKE THE TOOLS OF INFORMATION AND
COMMUNICATION AVAILABLE TO PEOPLE
AT AN AFFORDABLE COST. THEY WILL
OVERCOME THE HANDICAPS OF
ILLITERACY AND LACK OF MOBILITY”

- DHIRUBHAI
AMBANI
STARTED ON 28TH DEC, 2002 ON
DHIRUBHAI AMBANI’S 70TH BIRTHDAY.

IT WAS CALLED RELIANCE INFOCOMM,

NOW KNOW AS RELIANCE
COMMUNICATIONS.

FIRST AD FEATURED DHIRUBHAI AMBANI

AND MUKESH AMBANI.

THE MAIN AIM WAS “TO PROVIDE

MOBILES TO EVERYBODY”

INTRODUCED CDMA TECHNOLOGY IN

 PENETRATION PRICING
PRICE SET TO ‘PENETRATE THE MARKET’

‘LOW’ PRICE TO SECURE HIGH VOLUMES

TYPICAL IN MASS MARKET PRODUCTS –

CHOCOLATE BARS, FOOD STUFFS,
HOUSEHOLD GOODS, ETC.

SUITABLE FOR PRODUCTS WITH LONG

ANTICIPATED LIFE CYCLES

MAY BE USEFUL IF LAUNCHING INTO A NEW

MARKET
1. DHIRUBHAI AMBANI PIONEER
OFFER
FREE DIGITAL MOBILE PHONE
UNLIMITED FREE INCOMING CALLS
BILLING AT 15 – SECOND PULSE RATE
ONE – TIME DEPOSIT OF RS. 3000
TELEPHONY CHARGES WERE RS. 600 PER
MONTH
OUTGOING CALLS AT 10 PAISE FOR 15
SECONDS
LONG DISTANCE CALLS AT 40 PAISE PER
MINUTE TO ANY RELIANCE PHONE ONLY
FREE TEXT MESSAGING
2. MONSOON HUNGAMA
SCHEME
CAME OUT IN 1ST JULY, 2003
CUSTOMERS WILL GET A MOBILE
AT RS. 501
MONTHLY RENTAL OF RS. 200
BIGGEST PROMOTIONAL
SUCCESS IN THE HISTORY OF
MOBILE PHONES
1 MILLION HANDSETS SOLD IN
10 DAYS
PRICES OF GSM HANDSET
3. PRE – PAID OFFERING
INTRODUCED IN FEB 2004
GAVE CUSTOMERS FREE RECHARGE
VOUCHERS NEARLY THE COST OF THE
HANDSET
CUSTOMER HAD TO PAY RS. 3500 FOR
THE HANDSET
FREE RECHARGE VOUCHERS WORTH
RS. 3240
AUTOMATIC ROAMING IN INDIA
WITHOUT ANY EXTRA CHARGE
NO. OF SUBSCRIBERS IN
MILLIONS
CUSTOMER GENERATION

DHIRUBHAI AMBANI ENTREPRENEURSHIP

PROGRAM

ADVERTISING

R WORLD

PRODUCT INNOVATIONS

CUSTOMER SERVICE
CRITICIZED FOR CIRCUMVENTING
EXISTING TELECOMMUNICATION
POLICIES

MONSOON HUNGAMA GAVE RISE TO

LOGISTICS, BILLING & COLLECTION
PROBLEMS

EMERGENCE OF LEADERSHIP CRISIS

TWO YEARS OF LOSSES

STRONG MIX OF OWN & OUTSIDE
CHANNELS INCLUDING DIRECT SALES
AGENTS, RETAILERS, WEBWORLS &
WEBWORLD EXPRESSES

OBTAINED LICENSES TO OPERATE IN 20

OF THE EXISTING 22 CIRCLES

ACQUIRED FLAG TELECOM FOR US$ 211

MILLION

PROFIT OF RS. 510 MILLION IN 2004-05

MOBILE REVOLUTION BROUGHT ABOUT
BY RELIANCE

EXPANSION TO 640,000 VILLAGES AND

OVER 5000 CITIES & TOWNS

PROVISION OF HIDGH SPEED NETWORKS

PROVISION OF THE LATEST

TELECOMMUNICATION FACILITIES TO
EVERY INDIAN AT THE PRICE OF A POST
CARD