Summer Internship program 2015

A
REPORT
ON
COMPARISION OF MAJOR INTERNATIONAL
SIMCARD SERVICE PROVIDERS OF INDIA WITH
MATRIX

By:N.Sripathi Rao
14BSP0822

A
REPORT
ON
COMPARISION OF MAJOR INTERNATIONAL SIM
CARD PROVIDERS OF INDIA WITH MATRIX
By
N.Sripathi Rao
14BSP0822

A report submitted in partial fulfillment of the requirements

Of PGPM Program of ICFAI Business School

Company Project Guide: Mr. Abhijith R.Krishnan (Chartered Accountant, Rangaraju &
Associates)
Faculty Project Guide:

Dr.B.Shafiulla (Faculty, IBS Bangalore)

Declaration

I Sripathi Rao (14BSP0822) hereby declare that the project entitled price comparison of
international sim card service providers is a record research work carried out by me as a part of
summer internship program during the academic year 2015 under the guidance of Dr.B.Shafiulla,
Faculty Guide, ICFAI Business School, Bangalore, and my project guide Mr. Abhijith
R.Krishnan, Rangaraju & Associates.
It is also declared that this project is result of my effort and has not been submitted to any other
university or institution for any degree, or personal favour whatsoever. All the details and
analysis provided in the report hold true to the best of my knowledge.

Place: Bangalore
Date:
N.Sripathirao
14BSP0822

ACKNOWLEDGEMENT

I take this opportunity to thank my company guide Mr. Abhijith R.Krishnan and all my
senior colleagues at Rangaraju & associates, Bangalore for the valuable assistance
through out the period, which helped me to arrive at this report. They gave me all the
support and information I needed to complete this project.
I also thank my faculty guide Dr.B.Shafiulla who has been a constant source of
motivation for me. He has always shown the right path to me and given suggestions to
get most out of this project.
Last but not the least I would like to thank my family members who have been a pillar
of support for me and have given me a free hand in choosing my course of life. I also
thank my friends for encouraging me constantly through the tough times. I also want to
thank other employees of the company for providing me with necessary support. This
project report also owes a lot to them for its successful completion.
A special thanks to all of them.
N.Sripathi Rao

Contents
Abstract................................................................................................................................6
Indian economy.......................................................................................................................8

Key Industries in India..................................................................................................10

Fast growing Industries.................................................................................................10

Industry profile.....................................................................................................................15
Porter five forces analysis for the telecom industry in India..........................................................19
Company analysis..................................................................................................................23
SWOT ANALYSIS............................................................................................................27
Objectives of the report...........................................................................................................33
Research methodology............................................................................................................33
Scope of the study..................................................................................................................34
Limitations of the Study: -.......................................................................................................35
Data analysis and call rates of the major companies........................................................................36
Findings..............................................................................................................................55
Recommendations.................................................................................................................58
Conclusion...........................................................................................................................59
References...........................................................................................................................60
Annexure.............................................................................................................................61

Questionnaire.............................................................................................................62

Abstract
The telecom industry consists of Fixed and cellular service providers. In 1994, government
opened the telecom market for private participation in fixed as well as cellular services. It came
out with National Telecom Policy 1994 to facilitate the regulation and give direction to growth.
Licenses were issued for providing these services between 1994 and 1995 and service providers
started their service since 1995.
Government has decided to use GSM technology for providing cellular services. Until 2002,
cellular services were provided by GSM service providers then Tata tele entered with CDMA
technology to provide limited mobility services. In 2003, Reliance also entered in the market
with CDMA technology. These service providers were giving services at much lower rate than
GSM service providers, as they dont have to pay any license fees. This led to dispute between
GSM and CDMA service providers. Then in November 2003 TDSAT declared that CDMA will
come under fully mobile category and they also have to pay the licensing fee.
There are several companies which offer international sim card services. It is extremely
important to go through the terms and conditions, call rates and other important information
before buying an international sim card from any service provider. Matrix, Jaxtr, Clay, and
Roam1 are some of the leading providers of international telecom solutions to Indians traveling

abroad. The price comparison of these sim card services is very difficult. But the matrix service
provider offers many combo packs comparing to the others. The clay stands next to the matrix it
also offers different packs .Jaxtr and Roam1 stands next to the clay in case of network coverage
and prices.

EIC ANALYSIS
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Indian economy
The economy of India is the seventh largest in the world by nominal GDP and third
largest by purchasing parity. The country is one of the G-20 major economies, a
member of BRICS and a developing economy among top 20 global traders according to
the WTO.
According to the Indian finance ministry the annual growth rate of the Indian economy
is projected to have increased to 7.4% in 2014-15 as compared with 6.9% in the fiscal
year 2013-2014.in an annual report, the IMF forecast that the Indian economy would
grow by 7.5% in the 2015-16 fiscal starting on April 1,2015.up from 7.2% (2014-15).
India was the 19th largest merchandise and the 6th largest services exporter in the world
in 2013.the agriculture sector is the largest employer in Indias the economy but
contributes a declining share of its GDP. Its manufacturing industry has held constant
share of its economic contribution, while the fastest growing part of the economy has
been its service sector which includes, among others the construction

telecommunications, software and information technologies infrastructure, tourism,

education, and healthcare, travel, trade and banking industries.
Growth in the gross domestic product is expected to accelerate to 7.8% in FY2015 on
improved performance in both industry and services as policy addresses structural
bottlenecks and external demand improves.
Growth is expected to edge up further to 8.2% in FY2016, helped by a supportive
monetary policy in 2015, as inflation continues to trend lower and by a pickup in capital
expenditure.
India's diverse economy encompasses traditional village farming, modern agriculture,
handicrafts, a wide range of modern industries, and a multitude of services. Slightly less
than half of the work force is in agriculture, but, services are the major source of
economic growth, accounting for nearly two-thirds of India's output with less than onethird of its labor force. Life expectancy has more than doubled, literacy rates have
quadrupled, health conditions have improved, and a sizeable middle class has emerged.
India has capitalized on its large educated English-speaking population to become a
major exporter of information technology services, business outsourcing services, and
software workers. India is now home to globally recognized companies in
pharmaceuticals and steel and information and space technologies.
With 1.2 billion people and the worlds seventh-largest economy by Nominal
GDP and third largest by purchasing power parity. The country is one of the G-20 major
economies, a member of BRICS and a developing economy among the top 20 global
traders according to the WTO. Indias recent growth and development has been one of
the most significant achievements of our times. India's economic growth began slowing
in 2011 because of a decline in investment, caused by high interest rates, rising
inflation, and investor pessimism about the government's commitment to further
economic reforms and about the global situation.
The outlook for India's long-term growth is moderately positive due to a young
population and corresponding low dependency ratio, healthy savings and investment

rates, and increasing integration into the global economy. However, India has many
challenges that it has yet to fully address, including poverty, corruption, violence and
discrimination against women and girls, an inefficient power generation and distribution
system, ineffective enforcement of intellectual property rights, decades-long civil
litigation dockets, inadequate transport and agricultural infrastructure, limited nonagricultural employment opportunities, high spending and poorly-targeted subsidies,
inadequate availability of quality basic and higher education, and accommodating ruralto-urban migration. The country is in the midst of a massive wave of urbanization as
some 10 million people move to towns and cities each year in search of jobs and
opportunity. It is the largest rural-urban migration of this century.
Growth in 2014 fell to a decade low, as India's economic leaders struggled to
improve the country's wide fiscal and current account deficits. Rising macroeconomic
imbalances in India and improving economic conditions in Western countries, led
investors to shift capital away from India, prompting a sharp depreciation of the rupee.
However, investors' perceptions of India improved in early 2014, due to a reduction of
the current account deficit and expectations of post-election economic reform, resulting
in a surge of inbound capital flows and stabilization of the rupee.

Key Industries in India

1. Retail and wholesale trade (18.07%)
2. Agriculture (15.7%)
3. Real estate (13.5%)
4. Banking and insurance (10%)
5. IT and ITES Industry (9%)
6. Transportation Industry (8.5%)
7. Engineering and Machinery (8%)

10

8. Chemical Industry (7%)

9. Tourism (6.23%)
10. Textile Industry (4%)

Fast growing Industries

1. Information Technology
2. Telecom
3. Healthcare
4. Infrastructure
5. Retail
The inflation rate in India was recorded at 4.87 percent in April of 2015. Inflation Rate in India
averaged 8.60 percent from 2012 until 2015, reaching an all time high of 11.16 percent in
November of 2013 and a record low of 4.38 percent in November of 2014. Inflation Rate in India
is reported by the Ministry of Statistics and Programme Implementation (MOSPI), India.

GDP

$2.308 trillion(Nominal, April 2015)

$7.996 trillion(PPP, April 2015)

GDP rank

7th(Nominal)/3rd(PPP)

GDP growth

7.3%(2014-15)

GDP per

$1,808(Nominl:131th;2015)

capita
$6,625(PPP:121th;2015)

11

GDP by

Agriculture:13.7%

sector
Industry:21.5%
Services:64.8%(2013)
Inflation(CPI)

CPI: 4.87%
WPI: -2.65%

Export goods

Software,petrochemicals,agriculture
products,jewellery,engineering
goods,pharmaceuticals,textiles,chemicals,trnsportation,ores,and
other commodities

Import goods

Crude oil,god and precious stones,electronics,engineering

goods,chemicals,plastics,coal and ores,iron and steel,vegetable
oil and other commodities

Budget

4.1% of GDP(2014-15)

deficit
Revenues

$450.3billion(2015,IMF)

Expenses

$616.6 billion(2015,IMF)

Foreign

$353.8 billion

reserves

BUDGET AT A GLANCE:

12

1. Budget at a Glance shows Budget estimates in broad aggregates to facilitate easy

understanding. The document shows receipts and expenditure as well as the revenue deficit, the
effective revenue deficit, the fiscal deficit and the primary deficit. Central and State Plan Outlays
are shown in brief. The document also gives the highlights of the Central Plan for Financial Year
2015-2016.
2. Revenue deficit refers to the excess of revenue expenditure over revenue receipts. Effective
revenue deficit is the difference between revenue deficit and grants for creation of capital assets.
Fiscal deficit is the difference between the revenue receipts plus non-debt capital receipts and the
total expenditure including loans, net of repayments. This indicates the total borrowing
requirements of Government from all sources. Primary deficit is measured by fiscal deficit less
interest payments.
3. Budget 2015-16 marks the dawn of Co-operative federalism and empowerment of the States.
The creation of National Institution of Transforming India (NITI) and acceptance of 14th Finance
Commissions (FFC) recommendation of substantially higher devolution of Union taxes to States
are landmarks in this direction. The Government firmly believes that India grows when States
grow.
4. The total Plan Outlay for 2015-16 is 465277 crore.
5. Higher devolution to States of the divisible pool implies that the fiscal space for the Centre
shrinks in the same proportion. Despite these constraints, the current Central Plan outlay for;
Agriculture, Rural Development, Animal Husbandry, Dairying and Fisheries, Minority Affairs,
Women and Child Development, Development of Ayurveda, Yoga, Sidha and Homeopathy,
Export Promotion, Industrial Corridor Development, Development of North East, Drinking
Water and Sanitation, Health and Family Welfare, Health Research, AIDS Control, School
Education, Higher Education, Renewable Energy, Science and Technology, Bio-technology,
Shipping, Social Justice and Empowerment, Disability Affairs, Tribal Affairs and Urban
Development, have either been retained or increased.
6. To give a major boost to infrastructure development allocation for Roads and Railways sector
have been significantly enhanced. Similarly, allocation for DelhiMumbai Industrial corridor

13

(DMIC) has been almost doubled. Resources have been targeted towards Pradhan Mantri Krishi
Sinchai Yojana, Rural Electrification and Sagar Mala Project.
7. States will have greater flexibility in designing and running Programmes and Schemes as per
local requirements and conditions. Government has
Decided that it will continue to support State Plans of national priorities especially those which
are targeted towards Poverty Alleviation and up liftmen of socially disadvantaged groups.
Budget at a Glance

in Crore of

2014-15Budget

2015-16Budget

Revenue Receipts
Capital Receipts
Total Receipts
Non-Plan

Estimates
1126294
554864
168115
1213224

Estimates
1141575
635902
1777477
1312200

Expenditure
Plan Expenditure
Total Expenditure
Revenue Deficit
Effective

467934
1681158
362486
23058

465277
1777477
394472
283921

Revenue Deficit
Fiscal Deficit
Primary Deficit

512628
101274

555649
99504

Rupees

14

Industry profile

Country specific sim card is one of the prime support services needed for rapid growth
and modernization of various sectors of the economy. It has become especially
important in recent years because of enormous growth of Information Technology (IT)
and its significant impact on the rest of the economy. India is perceived to have a special
comparative advantage in IT and in IT-enabled services. However, sustaining this
advantage depends critically on high quality telecommunication infrastructure. Keeping
15

this in view, the focus of policy is vision of world class telecommunication facilities at
reasonable rates. Although the telecom network has grown rapidly in recent years, its
growth needs to be accelerated further in the Tenth Plan.
The telecom sector in India has been witnessing a continuous process of reforms since
1991. With the opening of international long distance services and internet telephony
from April, 2002, the process of liberalization and opening up the sector for competition
is complete. Convergence of services is a major new emerging area and the telecom
sector will have to address this in the Tenth Plan.
The major reforms carried out in the telecom sector so far are given below:Reforms in the Telecom Sector
Telecom equipment manufacturing was completely deregulated in 1991.

Value added services, including Country Specific Sim card phone services, were thrown
open to private sector in 1992.
The National Telecom Policy (NTP) allowing private sector participation in basic

services was announced in 1994. An independent regulatory authority called, Telecom

Regulatory Authority of India (TRAI), was set up in 1997.
A new policy for Internet Service Providers (ISPs) was announced in 1998, opening the

area to private sector providers. The policy was promotional in nature. ISPs have been
allowed to set up International Internet Gateways both satellite and landing stations for
Submarine Cable systems.
A new policy called New Telecom Policy (NTP), 1999 was announced replacing the

1994 policy.
Migration from the regime of fixed license fee to a new regime of revenue share was

permitted in August, 1999.

The regulatory mechanism has been further strengthened through the TRAI

16

(Amendment) Act, 2000. The Act provides for establishment of a separate dispute
settlement mechanism called Telecom Dispute Settlement and Appellate Tribunal.
National Long Distance Service was opened for competition in August, 2000.
Corporatization of Department of telecommunication's operational network into a

public company called Bharat Sanchar Nigam Ltd. from 1st October, 2000.
Videsh Sanchar Nigam Ltd. (VSNL) and HTL limited have been disinvested.
The Communication Convergence Bill 2001 was introduced in Lok Sabha and has been

referred to the Standing Committee of Parliament.

Fourth Country Specific Sim card Operator, one each in 4 metros and thirteen circles

has been permitted.

Unrestricted entry in basic services allowed along with use of wireless in local loop

(WLL) access technology.

Two categories of infrastructure providers have been allowed to provide end to end

bandwidth and dark fiber, right of way, towers, duct space etc.
International Long Distance (ILD) Services have been opened for competition since 1st

April, 2002.
Internet Telephony has also been opened up since 1st April, 2002.
Guidelines for universal service obligation announced on March 27, 2002.

COUNTRY SPECIFIC SIM CARD

The Country Specific Sim card phone industry is one of Indias rapidly growing
industries. Since the Industry came into being in the mid 1990s, its average per annum
growth rate has been a phenomenal 200 percent. By the end of 2002, the Indian Country

17

Specific Sim card phone Industry had over 10 million subscribers. The industry has
undergone a number of Changes over the years. The National Telecom Policy 1999 was
an important Landmark in the development of the Country Specific Sim card industry in
India; the tariff Rationalization and policy regulation introduced in the Policy helped the
industry Grow at the pace it did. In 2003, Telecom Regulatory Authority of India
(TRAI) Announced regulation of interconnects user charges to resolve conflicts
between Country Specific Sim card operators and network provider.
Major players:Matrix Cellular, Clay, Uniconnect, Roam 1 and Znet connect.
The migration to revenue sharing agreement has infused fresh blood in the Country
Specific Sim card industry. The sector has been bustling with activity since the
migration and has taken several strides with consolidation in the industry and a rapid
growth in subscriber base.
The growth rate in metros has been slowing down while increasing in A Class circles. In
metros the trend is towards increasing usage as against increasing penetration. Pre-paid
cards have helped the Country Specific Sim card operators improve their penetration.
Pre-paid cards are also being picked up by people because of the no-hassle and budget
control benefit attached to it.
The industry is likely to maintain the present rate of growth backed by more affordable
rates for the services, low tele-density and increasing acceptance of the service as a
necessity as against luxury.

Travel Sim Cards with International Roaming to Make Your Journeys Enjoyable
Going out on vacations to foreign country can be quite an exhilarating

experience,

especially if your journey is backed by all the travelling requirements. There are several

18

things that form an important part of your travel kit to make your trip even more
exciting and memorable. Travel SIM cards and Prepaid Data Cards are two such things
that are must have for every international traveler. Irrespective of the fact, which part of
the world you are travelling to, these options for international wireless communications
can always make your journeys more fulfilling.

Porter five forces analysis for the telecom industry in India

Competitors analysis
Telecom sector is one of the fastest growing sectors. This is due to strong competition that has
brought down tariffs and simplification of policy environment that has promoted healthy
competition amongst various players
19

The government has eased the rules regarding inter circle and intra circle mergers. This has led to
a slew of mergers and acquisitions in the recent past
As the sector is moving closer to maturity, further consolidation is a reality and this will lead to
the survival of more profitable players in this segment
Infrastructure equipment cost is down to a fraction of what prevailed just a few years ago
operators can plan better expansion plan now
Increased viability for the operators to expand to semi-urban and rural markets. Hence,
competition in this market would increase
Airtel, Vodafone, idea, and rcom itself captures more than 75%.
Market leader
Market challenger
Market follower

Airtel
Vodafone Bsnl ,Docomo
Idea, Reliance

Bargaining power of customers

Relative bargaining power is high.
Buyers in telecom industry generally land in two categories: individual and enterprise customers
like IT companies, banks etc. There are ample number of telecom providers in the market with
big product variance and cheaper prices which gives buyer many options to select operators and
thus have a large bargaining leverage.
Product differentiation
Most of the companies have similar prices for similar products and less likely for anyone to
maintain product differentiation and hence buyers have the option to switch over.
Competition between buyers
The individual buyers dont have any competition among themselves but enterprise customers
like IT or banks do have. Enterprise customers generate major part of the revenues for any
telecom companies like Reliance, Airtel or Idea which means higher buyer power. But this is not
significant for the newbie or the one who deals with individual customers
Buyers information regarding the availability of other options has become high
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Increased social networking, high advertisements through TV, hoardings, banners and word of
mouth, buyers are well informed about the substitute products with better offerings urban as well
as rural areas.
Suppliers power
Suppliers for the Telecom Operators
The suppliers bargaining power has increased influence on the profitability of the company.
Increase in the bargaining power of the supplier will lead to a decrease in profits or increase in
the price of the end product (Buyer).
There is a price war happening between the different mobile operators, so even the suppliers are
chosen carefully so that they do not drag down the profitability of the company .So the suppliers
have less bargaining power in this industry.
Mobile Tower Companies
SIM cards
Mobile phone handsets
Mobile Tower companies in India

There are two types of tower companies in India

Telcos owned tower companies

Independently telecom tower companies

Less Bargaining power because of more number of suppliers

Little or no forward Integration

Sim Card Manufacturers

Sim card for the mobile operators are mostly produced in India and some are imported.
The mobile operators doesnt always procure the sim card from a single supplier to avoid any
delays.
The Bargaining power of suppliers is less.
There is little or no threat of forward integration

21

Mobile Phone handsets

Two types of mobile phones are generally used. (CDMA & GSM).
Bargaining power of suppliers are less.
Little or no threat of Forward integration.
Threat of substitutes-moderate
Buyer Propensity to Substitute
From the industry and from within the DoT to open up Net telephony.
If allowed, this will open up Indias domestic voice market to all operators which have a unified
access services license such as Reliance Infotel and Aircel to offer voice services along with data
to its consumers.
Dot also contemplating allowing operators without a unified access license, which includes
broadband and Internet companies such as Google and Skype to offer telephony services for
international calling and PC-to-PC domestic calls.
Relative Prices
Internet Telephony eating into the revenue of GSM/CDMA telephony.
Flat/ fixed rate revenues from internet services - cannibalization of revenues from GSM/CDMA
services.
Performance of Substitute
Voice quality is an issue with internet telephony.
Internet voice services also currently limited due to regulatory road blocks.
Threat of entry
Threat of entry is low in case of telecom industry.

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Company analysis

23

Company profile

COMPANY: MATRIX COUNTRY SPECIFIC SIM CARD INTERNATINAL SERVICES PVT.

LTD.
GROUP: Matrix Country Specific Sim card
ESTABLISHED: 11TH Nov, 1995
MANAGING DIRECTOR: Mr. Gagan Duggal

BUSINESSES:

Country Specific Sim card

BlackBerry Services

Data Cards

Forex

Matrix Country Specific Sim card comes to you as worlds biggest private integrated country
specific sim Cards Company. Matrix provides a range of telecom services, which include
Country Specific Sim cards, Boltons Data Cards and Forex. Apart from being the largest

24

company in world in this business, it is also the first company to start the concept of country
specific sim cards in world. Matrix is the leading country specific sim cards company, with a
footprint in India

25

Services
VISION: "As they spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world and put it at the
service of our ultimate user: our customer."

Matrix Country Specific Sim card International Services Limited was incorporated on 9th Nov,
1995 for promoting investments in Country specific sim card services as in country specific
Sims. Its subsidiaries operate telecom services across India. Matrix is India's leading private
sector provider of Country Specific Sim cards based on a strong customer base consisting of
approximately 20K Customers every month and the no. are increasing day by day.

Business Strategy
Matrix' strategic objective is
To capitalize on the growth opportunities that the Company believes are available in the World
market and consolidate its position to be the leading integrated country specific sim card
provider in key markets in India, with a focus on providing such services.
The Company has developed the following strategies to achieve its strategic objective:
Focus on maximizing revenues and margins;
Capture maximum revenue potential with minimum geographical coverage;
Offer multiple Country specific sim card services to provide customers with a "one-stop shop"
solution;
Position itself to tap data transmission opportunities and offer advanced mobile data services;
Focus on satisfying and retaining customers by ensuring high level of customer satisfaction;
Leverage strengths of its strategic and financial partners; and
26

Emphasize on human resource development to achieve operational efficiencies.

Mobile Strategy
Capture maximum Country specific sim card revenue potential with minimum geographical
coverage to maximize its revenues and margins.
Build high quality mobile networks by deploying state-of-the-art technology to offer superior
services.
Use the experience it has gained from operating its existing mobile networks to develop and
operate other mobile networks in India and to share the expertise across all of its existing and
new circles.
Attract and retain high revenue generating customers by providing competitive tariffs, offering
high quality customer support, proactive retention programs.
Provide affordable tariff plans to suit each segment of the market with a view to expand the
reach, thereby increasing the mobile customer base rapidly

Coverage of Matrix
Matrix Country Specific Sim card service provides services in about 56 Countries with country
specific card and about 31 countries with a Global Card. It boost that the coverage is
uninterrupted and covers the widest area. Clay who more or less covers the same area will give
Matrix a toss in the future when its partner Uniconnect which is planning to consolidate all its
Indian operation and give its customers a wider reaches in term of auto roam. Player who
provides a better service in this respect will have an edge in the future as we can see the way
people and business is moving out of Delhi.

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SWOT ANALYSIS
Strengths: Matrix has strong brand name recognition and a reputation for offering high quality
service to its customers that is core strength to influence large prospect customers.
Focus on Country specific sim card to enable the company to better anticipate industry
trends and capitalize on new Country specific sim card related business opportunities.
An effective Quality Management team with vision and proven execution skills.
Good network coverage but still not much satisfactory in global sim cards.
Excellent customer care service.
Partnerships with over 36 country specific international service providers.
Early bird prizes.
Rates which are far cheaper, in some cases nearly 60%, compared to Roaming, and up to
90% in case of data cards.
Strategic business partnership with airlines, travel agencies, universities and corporate.

Opportunity: Still a large number of potential and prospect customers are un-captured.
Enter Viral Marketing i.e. marketing by the use of non-mass media tools of
communication-SMS, Internet, E-Mail in the word of mouth to get people talking about
it. Matrix has good business opportunity to tap up such companies, which are indulging
in such marketing strategy.
Poised to go on MVNO concept as soon as regulations in India (TRAI) permits.

28

 Due to the ever changing and growing middle class, matrix through its travel partner
caters this market
Above 6,000,000 people fly abroad every year this can be tapped by matrix.

Threats: Government interventions and telecom regulators in the country pose a great threat in the
independent operations of the Country Specific Sim card operators though they are
essential to break any kind of monopoly in the industry.
Other Country Specific Sim card service provider especially Clay and Uniconnect
emphasize more on push strategy whereas Matrix is still dealing with pull strategy. A
perfect blend of both is required. So Matrix should provide dealers and distributor more
perks and incentives
New player are entering into the markets as Trikon, Jaxtr and Roam1.
Existing big players like Airtel, Reliance communication, going international.

Weaknesses
Less employee strength.
Dissatisfied workforce.
Mobile number portability is missing.

Value Added Services and Competitive Advantage

29

Today in this competitive industry the fight is not about talk or price only, its about whom offers
the most value added services.
In this battleground, the two most aggressive players are Clay and Reliance Passport. Clay
already has a bunch of innovations to its credit. Matrix was the first company in world who came
with an idea of Country Specific Sim cards and the first company which made its user to use
internet services at 1/10th of the cost while they are travelling abroad.

COMPETITORS

CLAY
The most potential competitor in the industry. Clay is brought to you by Clay Telecom, one of
the worlds leading Country Specific Sim card service providers. We are known for our
innovative approach and world class technology. Our goal is to provide you superior products
and services, anytime and anywhere.
Our values are stated simply. To be fair and transparent in what we do and how we do it. To
provide you quality services with more customer friendly practices. To make your
communications experience simple, pleasurable and fun. Where you don't simply get technology
- but technology that is relevant. Where solutions are not just promised in the future - but
delivered in the present.
Services provided by the Clay Telecom include:

International Cell Phone Rental

30

International Calling Cards

International Roaming

UK SIM Card

Germany SIM Card

Global SIM

Benefits from Clay Telecom

Free Incoming Calls in most of the countries
Itemized Billing
Save Forex, Pay in Indian Currency
Distribute your number before leaving India
Saving of up to 80% on International Roaming Expenses

ROAM1

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40000 customers are using the Roam1 connection to get the benefits of a dramatically reduced
international Roaming mobile bill charges, for both voice and data, while retaining the benefit of
a single number that works globally. The customer base is rapidly increasing.
The roam1 global sim card is a unique permanent sim connection that provides the user with free
incoming calls in 95 countries and low call rates to India and international destinations. The
roam1 global sim offers exceptionally low international calling rates from the gulf countries to
India and the rest of the world.

Jaxtr;

Jaxtr was launched by Philip mob in and touraj parang in 2007.jaxtr uses voice over internet
protocol to offer competitive rates as well as free international and long distance calling. Jaxtr
reports having 10 million users in 220 countries in 2008.
Jaxtrs is to enable new conversations worldwide. Jaxtr is backed by world-class investors, and is
led by a team of passionate entrepreneurs that dream of changing the communications landscape.

32

33

OBJECTIVES, SCOPE AND

METHODOLOGY

Objectives of the report: .

Analyzing the competition in the market, comparative analysis of different plans of other
operator with existing plans of matrix.

To compare post-paid services with its prepaid.

To study the view points of the customers regarding the services provided by the matrix.

To study the responses of customers towards the company.

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Research methodology
Type of research
This is descriptive research as this research includes surveys and facts findings inquires of
different kinds.so descriptive research help in knowing about particular item or group of items in
other words.it describes the state as it is exist at present.

Sources of data

Primary data;
Primary data was collected using the following techniques, questionnaires method, direct
interview method and observation method.
The main tool used was the questionnaire method. Further direct interview method, where face to
face formal interview was taken. Lastly observation method had been continuously observes the
surrounding environment he/she works in.
Target geographic area was Bangalore.
To these geographical area questionnaire was filled by 100 people. The questionnaire was a
combination of both open ended and close ended questions.
The date during which questionnaires were filled was between 2-3 weeks.
Some dealers were also interviewed to their prospective. Interviews with the honours of retailer
of international sim cards were also conducted.
35

Finally the collected data and information was analysed and compiled to arrive at the conclusions
and recommendations given.
Secondary data
Secondary data has been used to support primary data where ever needed .it is used to obtain
information on matrix and its competitor history, current issues, policies, procedures etc...
Wherever required.
Sources of secondary data are online sources, magazines and newspapers.

Scope of the study

Study is related to Telecom service providers only.

Study takes into account only big companies about which substantial data is available In
an increasingly competitive environment, where global sim card companies fight for the
same customers, the companies need to keep the plans as competitive as possible for the
companies need to keep the charges allow as possible.

With this comparative analysis of different plans chargers, benefits and features, we will
able to find out where company is good as compared to the other players in the market
and where company can improve.

Study also explains the perception of the customers about this brand.

Finally the collected data and information was analysed and compiled to arrive at the
conclusion and recommendations given.

36

Limitations of the Study: The data available is secondary, so its credibility depends on the companies which have provided
the data.

It is not possible to do comparative analysis of all the products available in the market
as so many products are available.

Only major players are covered in the comparative analysis taking in to consideration
the investors interest.

The respondents from whom the primary data was gathered any times displayed
complete ignorance about the complete branded range, which was being studied.

Lack of time is the basic limitation in the project.

Some respondents/customers refuse to cooperate with the queries.

37

Data analysis and call

rates of the major companies

Graph 1:-

38

Sample taken in the survey contains 100% respondents with country specific sim card
usage.
Graph 2:-

Mostly customer like to go with post-paid service.

39

Graph 3:-

Matrix holds more than one third of the country specific sim card market share in
Bangalore.
Graph 4:-

40

General mode of payments is credit card, however cheque is the other upcoming means.
Graph 5:-

According to the observation we find most of the customers are satisfied with matrixs forex &
insurances.
Graph 6:-

41

Maximum customer agrees matrix provide less roaming charges than others.
Graph 7:-

Matrix is the most preferred brand however clay, jaxtr, roam1 are potential competitors
in the market.

42

Matrix is the most preferred brand however clay and others are potential competitors in
the market.
Graph 8:-

Matrix has more than 60% satisfied customers however clay and others also have more
than one third of their satisfied customers.
Graph 9:-

43

Matrix is known basically for the high quality, trust and reliable services.
Graph 10:-

Matrix is the most preferred brand which is been given by customers.

44

MATRIX

TARIFF SHEET USA

Call Rates
Description

Plan-1

Plan-2

Plan-3

per minute/per
txt/per 100kb
Plan code
ATT3914R7
Plan charges
Incoming calls
Local outgoing

3999
FREE
FREE

ATT4914R8
4999
FREE
FREE

ATT5914R9
5999
FREE
FREE

calls
International
calls to India

1000 mins

1500 mins

2000 mins

free;

free;

free;

$0.19

$0.19

$0.19

thereafter

thereafter

thereafter

1 GB free;

1.5 GB free;

2 GB free;

$0.045

$0.045

$0.045

Data

Local text
International

thereafter
$0.15
0.30

thereafter
0.15
0.30

thereafter
0.15
$0.30

45

text
Validity

21days

30days

30days

TARIFF SHEET; UK & Western Europe

46

Call rates
Description-per

Charges in

Charges in

minute/per

uk

western European

text/per 100kb
Plan charges for

39.99

39.99

30 days
Incoming calls
Local outgoing

FREE
FREE

FREE
0.19

calls
International calls

FREE

0.19

to India
Data

0.019
1 GB
FREE;
9.99
per GB
thereafter
0.09
0.09

Local text
International text

0.19
0.19

@ Add on packs
Valid in

Add on pack

Uk+

Voice + data

Europe

combo

Code

Charges

Free usage

29.99
UK-Europe-Combo29

100

After free

Validity

usage
As per

15

plan

mins
local
calls +
100 mins
47

calls to
India +
250 MB
data
Uk +

Voice + data

Europe

combo

As per

39.99
UK-Europe-Combo-

200

39

30

plan

mins
local
calls +
200 mins
calls to
India +
350 MB

Uk only

Internet on
smart phone

9.99

data
500MB

UKDTH090415

15
GBP
9.99 per
GB

Uk only

Internet on
smart phone

14.99

1GB

UKDTH140415

30
GBP
9.99 per
GB

Uk +

Internet on

Europe

smart phone

29.99

500MB

WEDTH290415

30
GBP
0.019
per 100
KB

Uk +

Internet on

Europe

smart phone

30

49.99
WEDTH490415

GBP
0.019
1GB

per 100
KB

48

Tariffs in United Kingdom

Particulars

Description

Matrix UK

Western

Turkey

Europe
N/A
INR100.00

N/A
INR100.00

INR100.00

INR100.00

Free

0.10
0.40

Set up fee
Plan charges

For 30

N/A
INR100.00

Free value

days
For 30

INR100.00

Incoming

days
Per minute

calls
Local out

Per minute

0.04

0.23

Per minute

0.04

0.23

Per minute

0.04

0.23

0.40

Per minute

0.08

0.23

0.40

going to land
lines
Local
outgoing
[CUG]
Local
outgoing to
the same
mobile
network
Local
outgoing to
other
49

networks
International

Per minute

0.08

0.28

calls to India
International

Per text

0.08

0.28

text
Text {local &

Per text

0.08

0.23

0.40

international}
GPRS

Per MB

0.09

0.39

0.39

0.70

CLAY
Australia sim card
Featured

0/monthly

25/fortnightly

plans

clay basic

clay value

aud free

aud free

35/fortnightly clay

incoming &

incoming &

platinum aud free

zero rental

min call to

incoming &

plans

India

unlimited local calls

features
Setup free
Rental cost
Minimum

INR199
0
INR 500

INR 199
Aud 25

INR 199
Aud 35

commitment
Incoming

FREE

FREE

Special

calls
Local calls

Aud

Aud 0.25/min

FREE
Unlimited

50

to intra

0.25/min

network
Local calls

Aud

to cross

0.25/min

Aud 0.25/min

network
Call-back to

Unlimited
Aud

Aud 0.65/min

India
Sms local

0.65/min
Aud

Aud 0.25/min

Sms

0.25/min
Aud

international
GPRS

0.25/min
Aud

Aud 0.65/min
Aud 0.25/unit
Aud 0.25
Aud 0.003/kb

0.003/kb

Aud 0.25/unit
Aud 0.003/kb

BRAZIL SIMCARD
Featured plans

clay basic brl

0/monthly free
incoming & zero
rental plan

Special features
Setup free
Rental cost
Minimum commitment
Incoming calls
Sms international
GPRS
Local outgoing
Other local calls in brazil
Call back to India
Sms local

INR 199
0
INR 500
Free
brl 1.30/unit
Brl 0.02
brl 0.52/min
brl 1.10/min
brl 5.00/min
brl 0.59/unit

51

CANADA SIMCARD
Featured plans

clay basic cad

0/monthly
zero rental
plan

Special features
Setup fee
Rental cost
Minimum commitment
Incoming calls
Local calls
Call back to India
Sms local
Sms international

INR199
0
inr 500
cad 0.30/min
cad 0.30/min
cad 0.89/min
cad 0.25/unit
cad 0.35/unit

EUROPE SIMCARD
Featured plans

Special features

Setup fee
Rental cost
Minimum
commitment
Roaming

clay value

clay

Clay basic

gbp

platinum gbp

gbp

7/monthly
free

12/weekly
free

0/monthly
Zero rental

incoming

incoming

plans

150 minutes
199
692.23

plan
199
1186.68

500

500

199
0
500
4.9445/min

;incoming in
Europe
Local GPRS

4.9445/min
0.9889

Free

52

Roming;outgoing

28.6781/min

in Europe
EU roaming to

28.6781/min

28.6781/min

India
EU roaming sms
International sms
EU roaming

58.3451/min
28.6781/unit

58.3451/min
28.6781/unit
28.6781/unit

GPRS

0.9889/10KB

0.9889/10KB

58.3451/min
28.6781/unit
28.6781/unit
0.9889/10kb

JAXTR
Location
Albania
Austria
Argentina
Australia
Belarus
Belgium
Bermuda
Brazil
Bulgaria
Canada
Chile
China
Colombia
Congo
Cuba
Denmark
Egypt
Estonia

Mobile
$0.312/min
$0.204/min
$0.180/min
$0.120/min
$0.264/min
$0.216/min
$0.096/min
$0.300/min
$0.312/min
$0.024/min
$0.024/min
$0.036/min
$0.132/min
$0.444/min
$1.056/min
$0.240/min
$0.204/min
$0.264/min

Landline
$0.156/min
$0.204/min
$0.024/min
$0.120/min
$0.420/min
$0.048/min
$0.096/min
$0.060/min
$0.036/min
$0.012/min
$0.480/min
$0.024/min
$0.108/min
$0.168/min
$1.008/min
$0.024/min
$0.180/min
$0.024/min

53

Ethiopia
Finland
France
Gambia
Georgia
Germany
Greece
Green land
Guinea
Hong Kong
Iceland
India
Indonesia
Iraq
Iran
Ireland
Italy
Japan
Jersey
Kuwait
Libya
Madagascar
Malawi
Malaysia
Mexico
Netherlands
New Zealand
Nigeria
Norway
Panama
Poland
Portugal
Romania
Singapore
Spain
Sweden
Switzerland
Uganda
Ukraine
United states

$0.324/min
$0.072/min
$0.204/min
$0.420/min
$0.192/min
$0.228/min
$0.252/min
$0.480/min
$0.468/min
$0.024/min
$0.228/min
$0.024/min
$0.156/min
$0.192/min
$0.144/min
$0.204/min
$0.240/min
$0.144/min
$0.228/min
$0.120/min
$0.408/min
$0.276/min
$0.144/min
$0.048/min
$0.072/min
$0.276/min
$0.300/min
$0.240/min
$0.204/min
$0.156/min
$0.228/min
$0.276/min
$0.288/min
$0.024/min
$0.228/min
$0.168/min
$0.348/min
$0.156/min
$0.144/min
$0.024/min

$0.300/min
$0.048/min
$0.204/min
$0.300/min
$0.084/min
$0.036/min
$0.024/min
$0.564/min
$0.420/min
$0.024/min
$0.024/min
$0.024/min
$0.084/min
$0.096/min
$0.108/min
$0.024/min
$0.036/min
$0.108/min
$0.024/min
$0.120/min
$0.372/min
$0.276/min
$0.144/min
$0.024/min
$0.060/min
$0.024/min
$0.024/min
$0.192/min
$0.204/min
$0.036/min
$0.048/min
$0.024/min
$0.072/min
$0.024/min
$0.024/min
$0.024/min
$0.048/min
$0.156/min
$0.180/min
$0.012/min

54

United kingdom

$0.192/min

$0.036/min

ROAM1
UK grand
plan amount
Card type
Validity
Talk time
Incoming calls
Local calls
India calls
Local sms
International sms

INR 3500
Global (+44) NO.
30 days
FREE
300 minutes
INR 10/sms
INR 20/sms

GRAND
Plan amount
Card type
Validity
Talk time
Incoming calls
Local calls
India calls
Local sms
International sms

INR 3500
Global (+44) NO.
30 days
INR2750
FREE
FREE
FREE
FREE
FREE

55

Call Rate Comparison

Usa to India

One sim
$0.49

Roam1
Unlimited

Jaxtr
$0.090

Uniconnect
Unlimited calls on

to 1st 5

first 5 numbers

dialled

additional 500

numbers

minutes credit to

Clay
$0.75

India on any other

$0.39

200 min

$2.380

number
RS.1.13

$0.65

India
Dubai to

$0.69

free
NA

$0.290

RS.9.6

$1.99

India
Uk to India

$0.39

400min

$0.150

RS.1.98

$0.45

Germany to

$0.49

free
NA

$0.150

Landline Rs.0.79

$0.45

India
France to

$0.49

NA

$0.150

Mobile Rs.1.57
Landline RS.0.79

$0.45

Australia to

India

Mobile(10pm-6am)RS.1.58,mobile(6am-

Italy to India
Netherlands

$0.49
$0.49

NA
NA

$0.150
$0.150

10pm)-RS.3.15
RS.21.73
Landline RS.7.53|

$045
$0.45

to India
Spain to

$0.49

NA

$0.150

mobie RS.10.04
RS.0.94

$0.45

India
Switzerland

$0.65

NA

$2.199

RS.12.32

$0.55

to India
Turkey to

$0.49

NA

$0.286

RS.54.64

$0.55

India
China to

$0.29

NA

$0.259

RS.3.87

$0.60

India
Malaysia
Singapore
Vietnam

$0.75
$0.75
$0.55

65min free
NA
NA

$0.855
$0.692
$1.129

RS.2.64
RS.4.79
NA

$0.65
$1.25
$0.70

56

Cambodia

$1.50

NA

$0.674

RS.7.32

$1.05

Findings
57

Findings;
With the advent of the fourth generation mobile technology.The challenges before
uthority is to deliver the benefits of technology more widely to the subscribers
considering many issues.
If we subscribe to domestic network in home country. It has the monopoly on the
subscriber roaming charges.
GSM Roaming, which involves roaming between gsm networks, offers the convenience
of a single number, a single bill and a single phone with world wide access to over
many countries.
Getting an international sim card is quite simply the most convinient & cost effective
way of making and recieving calls in over many countries.
Choosing the best sim card service provider is very difficult, why because the offers are
different. It is very difficult to compare.
Company is reluctant to share the strategic information with the employees (product,
services and prices).
Jaxtr charging different charges for the European countries but the other three are
charging same charges for the whole European countries.

58

 Four companies (matrix, clay, jaxtr, Roam1) are providing different combos.
Competition is very high .but, there offers are dissimilar.one company is providing less
call costs and the other is providing more data for less cost.
Only matrix and clay are providing data card services in the compared companies.
Mostly customers like to go with post-paid services.
Matrix holds more than 1/3rd of the specific sim card market share in Bangalore.
General mode of payments is credit card (49%), however cheque is the other upcoming.
Matrix (28%) is most preferred brand however clay, jaxtr, roam1 are potential
competitors in the market.
Matrix has more than 60% satisfied customers however clay and others have more than
1/3rd satisfied customers.

59

Recommendations

Company needs greater awareness of its product among target audience.

Company should promote the brand name of matrix to create more awareness among
people.

There are only two branch offices in Bangalore (Matrix). Company should open more
branches to target more people.

Company should reduce the call charges in order to make the products more
competitive.

The company should spend on the promotional activities like advertisement in

television, newspapers to create more awareness of the product.

The company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then customer may continue buy the
goods and can be a permanent customer for the company.

Schemes and plans provided by the company should be attractive enough to have the
kind attention of customers and strong enough to meet the competitive environment.

Matrix should try to share more information with the employees .So, that they can
contribute more towards organizational goal.

60

Conclusion
After comparison of the plans of these four companies, it is concluded that call charges are
varying significantly between companies. Competition is increasing in cellular market day by
day as there are many companies are operating this business. All of them are trying to increase
their market share giving lots of facilities. In future as a market leader Matrix should focus more
on customer service area to keep customers loyal.

61

References
(http://www.trai.gov.in/Content/TelDis/52_1_1.aspx, 2015) (2015)
(https://www.clay.co.in/landingpage-international-SIM-card.aspx?
utm_source=GooglePPC&utm_medium=ClayTelecom&utm_campaign=lead&gclid=CI
mzzazS-MUCFdYXjgodgLEAQA, 2015)
(matrix.com, 2015)
(https://jaxtr.com/, n.d.)
62

(http://www.roam1.com/, 2015)

Annexure
Terms & Conditions:

In case the SIM card is returned after delivery, a cancellation charge of Rs. 299
shall apply

63

The above plan is valid only for use in USA. Any usage made outside USA, is
subject to roaming rates, approximately $10/ minute; or as applicable by the
network

These plans are not valid for use, while on a cruise or a flight. Usage during a
cruise or a flight is charged at high rates at the discretion of the cruise lines/
airlines

A setup fee of Rs.199 is applicable on the above tariff.

The data usage included in the plans is not valid for use on Blackberry phones.

There will be a surcharge of 12% applicable on the total invoice value

Data/GPRS will be billed in 100KB increments

Data/GPRS services shall be activated on all SIM cards and shall be charged in a
similar way as SMS/calls, i.e., the more you use, higher the charges would be

Using internet for watching videos (e.g., YouTube), making VoIP calls (e.g.,
Skype), sending pictures/videos on chat (e.g., WhatsApp) and navigation (e.g.,
Google maps) can consume lot of MBs, so be careful while using these

The above plan is valid for validity period mentioned. In case the trip is
extended beyond the validity period, the plan charges will get rolled over on
pro-rata basis.

The data packs are valid for validity mentioned. In case the trip is extended
beyond the validity period, the pack charges will get rolled over

Airtime rates are applicable on all toll free numbers

The bill is calculated as per the prevailing Standard Chartered Bank exchange
rates on the bill generation date

Service tax shall be applicable as per Govt. regulations

64

 Questionnaire

Personal information:
Name of m/s
Address
Phone
E-mail
1. Type of outlet:
(a) Corporate office

(b) Airport

(c) Travel agents

2. Which type of sim cards do you like most?

(a) Prepaid

(b) post-paid

3. Mode of payment is:

(a) Cash

(b) cheque

(c) credit card (d) any other

4. Do you feel that call rate on international roaming is less than others:
(a) agree (b) strongly agree (c) disagree (d) strongly disagree
5. Basically which of the operators you deal with?
(a) matrix (b) clay (c) uniconnect (d) roam1 (e) reliance (f) others
6. How many times in a year do you visit foreign country?
(a) less than 10 (b) less than 20 (c) less than 30 (d)more 30
7. Do you think that forex & insurance services offered by matrix is better?
(a) agree (b) strongly agree (c) disagree (d) strongly disagree
8. Since how long you are in the business/profession?
(a) 0-1year (b) 1-3years (c) 3-5years (d) 5 or more years
9. Since how long you are dealing with matrix?
(a) 0-1year (b) 1-3years (c) 3-5years (d) 5 or more years

10. Which connection do the customers prefer when they come at your doorstep?

65

(a) Matrix

(b) clay

(c) uniconnect

(d) roam1

11. Customers perception about matrix:

(a) poor

(b) average

(c) good (d) excellent

12. What is the ranking of various operators in terms of fewer complaints?

(a) matrix

(b) clay

(c) uniconnect (d) roam1

I value your suggestions

Thanks

66