Professional Documents
Culture Documents
Submitted By:
PRATEEK VASHIST
MBA- III Semester (2009-2011)
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Department Of Management Studies
NORTHERN INDIA ENGINEERING COLLEGE
LUCKNOW
ACKNOWLEDGEMENT
PRATEEK VASHIST
MBA 2nd Year
2
i
PREFACE
In the following pages an attempt has been made to present a comprehensive report
covering aspects of my training.
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ii
TABLE OF CONTENTS
I Certificates
II Acknowledgement i
III Preface ii
PART-I
1 Introduction 1-23
PART-II
8 Findings 79-80
4
10 Limitations 84-85
11 Conclusion 86-87
12 Bibliography 88-90
13 Appendix 91-95
INTRODUCTION
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OVERVIEW OF TELECOM INDUSTRY
India is one of the fastest growing telecom markets in the world with an
addition of more than 6 million connections per month. FDI inflow in Indian
Telecom sector is the highest among all sectors. India is emerging as telecom
manufacturing hub. Year 2007 was declared as "Year of Broadband" in India.
The telecommunication industry operates in a licensed and regulated
environment. The government of India, through Department of telecommunication
(DOT) and Telecom commission, both functioning under the ministry of
communication and information technology decides on the policies that
governs/regulates the sector and issues the licenses and registration.
India’s telecom policy is guided by overall development goals and the
interests of the consumer. In order to protect and promote consumer interest and
ensure fair competition, an independent regulatory authority known as Telecom
regulatory authority of India (TRAI) was established in 1997. The sector is more
liberalized then many developing markets and in most respects, the regulatory
framework has caught up with the need to manage a highly competitive market
environment. Competition has been introduced into all segments and licenses are
available to new entrants.
Tariff control have been removed or structured as ceiling tariffs in areas
where there is limited competition. There is a current initiative to simplify the
charging brands for long distance calls and to remove some of the artificial
constrains in the segregation of long distance and access licenses.
Consolidation among operators has been facilitated. TRAI has actively
intervened in many areas to ensure a level playing field between operators.
Indian Telecom sector, like any other industrial sector in the country, has
gone through many phases of growth and diversification. Starting from telegraphic
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and telephonic systems in the 19th century, the field of telephonic communication
has now expanded to make use of advanced technologies like GSM, CDMA, and
WLL to the great 3G Technology in mobile phones. Day by day, both the public
players and the private players are putting in their resources and efforts to improve
the telecommunication technology so as to give the maximum to their customers.
Reforms in Indian telecommunication sector can be divided into broadly
three phases.
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Impact of telecommunication reforms in India:
Telecommunication Reforms in India revolutionized the telecom
industries sector in India, which is an important factor for the growth of the Indian
telecom sector and in turn helped the Indian economy to perform well for the past
few years. The Telecommunication reforms in India were development and growth
oriented. Technological advancements and innovations contributed largely towards
the reformation of the telecom sector in India. The sector of telecom was a
monopoly under the Central Government of India. During the 1990s this sector
faced fierce challenges due to the development in the technological sector. The
sector was privatized and with the abolition of the monopoly new player entered
the consumer market. The competition increased in the telecom sector, the rates
were slashed in order to grab the share of the market and the customers were
provided with better services.
(Source TRAI)
Telecommunication Services:
Telecommunication services include Basic service, Cellular service, Internet
Service Provider (ISP) and Very Small Aperture Terminal (VSAT) services.
Government of India (GoI) plans to introduce a unified license for all
telecommunication services in India, and has already allowed full mobility to
wireless in local loop (WLL) operators as a first step. Telecom services are
growing at an approximate rate of around 5 percent per year in terms of revenue
and mere 10 % in terms of subscriber base in last five years. Partly the result is due
to negative growth in NLD market (-14% Rs 51,410 million from Rs 59,880
million) and ILD market (-13% Rs 43,460 million from Rs 50,010 million) in
2003-04. Amongst telecom services, cellular services are the fastest growing, with
CAGR of 40 percent over the past four years. Telecommunications Regulatory
Authority of India (TRAI) expects that the total number of cellular connections
would bypass the total number of fixed line connections by late 2004 and early
2005. (As on March 2004 subscriber base of cellular operators is 33 million and
basic operator is 42.84 million)
During the past three years, in terms of subscriber base telecommunications
services have been growing at a CAGR of nearly 22%, owing largely to the rapid
increase in cellular service subscribers.
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Fixed Service Provider (FSPs):
Fixed line services consist of basic services, national or domestic long
distance and international long distance services. The domestic market (i.e.
excluding international revenues), has been growing more than 5 per cent annually
during the past three years, and has a current market size of Rs 30,164 crores, with
a base of 43 million lines.
The state operators (BSNL and MTNL), account for almost 90 per cent of
revenues from basic services. Private sector services are presently available in 18
circles, and collectively account for less than 5 per cent of subscriptions. However,
private services focus on the business/corporate sector, and offer reliable, high-
end services, such as leased lines, ISDN, closed user group and videoconferencing.
As a result, average-revenues-per-user (ARPU) of private operators are more than
twice those of the state-owned service providers.
The main revenue contributing value added services were NLD and ILD.
The reduction in NLD and ISD tariffs punctured the potential of the key revenue
streams. Internet telephony for ISD worsened the potential. Added to it was the
phenomenal growth rate in cellular services.
Both public players and private players are competing hard to capture more
and more market share. MTNL and BSNL are the leading public sector players,
whereas Reliance Info-com, Airtel, Tata-Tele-services and Touchtel are the
leading private sector players.
Source TRAI
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Cellular Services:
Mobile telephony was introduced in Indian markets in mid- 1990s. In the
last few years, the sector has witnessed tremendous growth. The subscriber base is
adding more and more customers every year. Mobile telephony recorded more than
52.2 million users in FY 2004-05, exceeding fixed line telephone subscriber base.
Also, mobile segment has welcomed more and more players every year.
Liberalized policies have ensured lower tariffs and reduced roaming rentals. This
will lead to increased usage of mobile phones.
The introduction of mobile technology in India and liberalization of sector
changed the usage of telephone services in India, so many private companies
entered into the sector like Bharti-Airtel, Reliance communication, Idea cellular,
BPL Etc. after the NTP 1999 the competition between the private players increased
as the call rates got decreased and the tariff plans has been introduced. As a result
the private players offered attractive schemes to the customers and the mobile
phones became cheaper for the customer in comparison to the fixed phones. The
consumers of fixed line telephones shifted towards mobile telephony. The changes
can be understand by the following figures, which show the percentage changes in
the usage of wire line and wireless phone from 2002 to 2007.
(Source TRAI)
(Source TRAI)
The cellular services can be classified into two segments the one is CDMA
(Code Division Multiple Access) and the other is GSM (Global System for Mobile
Communications), CDMA and GSM are actually two technologies upon which
mobiles works. In the starting only GSM services were launched, Reliance
communications were the first to launch the CDMA technology in India, presently
Reliance communication and Tata-Indicom provides CDMA technology and all
the other companies namely Airtel, Vodaphone, Idea, BPL, Aircel, BSNL , MTNL
are providing GSM technology. In south India reliance communications provides
both GSM and CDMA technology.
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2005 58.5 19.1
2006 105.4 44.2
2007 180 85
(Source TRAI)
(Source TRAI)
MARKET OVERVIEW :
Subscribers
Share (%)
Jul 06 (mn)
Company Presence
Fixed Mobile Fixed Mobile
Government owned. Has ramped up GSM
BSNL services. National presence (except 37.4 17.7 74.7% 19.6%
Mumbai and Delhi)
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Government owned. Operates in Delhi and
MTNL 3.8 2.0 7.7% 2.3%
Mumbai.
Integrated operator, with presence in all
Bharti 1.4 19.6 2.7% 21.7%
sectors. Largest mobile services provider.
Integrated operator. Plans expansion of
Reliance GSM network apart from being the largest 3.0 17.3 6.0% 19.2%
private CDMA operators.
Hutch Pure play GSM operator in 11 circles. 15.4 17.0%
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The domestic industry is worth Rs 303,000 million and has made little
progress in comparison to the development of Telecom services in the country.
The industry is faced with two major challenges: India is being steadily opened up
to the global market, as trade restrictions are done away with, resulting in crashing
of import duties across the board and easy movement of goods from overseas. It is
forecasted that by 2005, imported telecom equipment will account for 75% of the
expenditure on telecom equipment in India. Secondly, to cut down on operations
costs, US, European and East Asian multinationals are outsourcing manufacturing
to cheaper destinations in Taiwan and China. (Refer to Appendix 5 for more details
on this segment)
“Growth in the telecom equipment market is expected to be driven by an
increasing demand for telecom services.
“Key players like BSNL, Bharti, Reliance, TATA, BPL and Hutchison will
drive equipment market growth. Transmission equipment, cable and terminal
equipment are expected to drive the market in the years to come. Also switching
systems will remain a big market, with a size of around Rs 50 billion (CERC).
Objectives and targets of the New Telecom Policy 1999:
The objectives of the NTP 1999 are as under:
• Access to telecommunications is of utmost importance for achievement of
the country’s social and economic goals. Availability of affordable and
effective communications for the citizens is at the core of the vision and goal
of the telecom policy.
• Strive to provide a balance between the provision of universal service to all
uncovered areas, including the rural areas, and the provision of high-level
services capable of meeting the needs of the country’s economy;
• Encourage development of telecommunication facilities in remote, hilly and
tribal areas of the country;
• Create a modern and efficient telecommunications infrastructure taking into
account the convergence of IT, media, telecom and consumer electronics
and thereby propel India into becoming an IT superpower;
• Convert PCO’s, wherever justified, into Public Tele info centres having
multimedia capability like ISDN services, remote database access,
government and community information systems etc.
• Transform in a time bound manner, the telecommunications sector to a
greater competitive environment in both urban and rural areas providing
equal opportunities and level playing field for all players;
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• Strengthen research and development efforts in the country and provide an
impetus to build world-class manufacturing capabilities.
• Achieve efficiency and transparency in spectrum management.
• Protect defense and security interests of the country.
• Enable Indian Telecom Companies to become truly global players.
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of bids completed
1999 New Telecom Policy, Migration
from license fee to revenue
sharing
2000 National long distance opened,
long distance tariffs reduced,
DoT corporative
2001 Fourth round of basic service
licenses and cellular licenses
finalized
2002 International long distance to be
opened up to private sector
Source: Voice & Data, 2002
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In the second phase, tenders for franchising cellular mobile telephone
service in 20 Telecom Circles (excepting four metropolitan cities) were invited in
January 1995. Thirty three (33) licenses have been awarded to 13 Indian registered
companies covering 18 Telecom Circles. No bids were received for Jammu &
Kashmir and Andaman & Nicobar Islands Circles. The service has been launched
commercially in 11 cities in the Telecom Circles.
Radio Paging Service:
In the first phase, tenders to provide Radio Paging Service in 27 major cities
of the country were invited in May 1992. Nineteen (19) Indian registered
companies have been awarded licenses for the operation of Radio Paging Service
in 27 cities. The service has since started in all the 27 cities by one or more
operators.
In the second phase, tenders for providing Radio Paging Service in 19
Telecom Circles, excluding 27 major cities were invited in February 1994. Thirty-
one (31) licenses have been awarded to 11 Indian registered companies for
operation of Radio Paging Service in 18 Telecom Circles.
Electronic Mail:
Licenses have been awarded to 15 companies. Twelve companies have
started the service. There are about 28,000 e-mail subscribers in India.
Voice Mail and Audiotex Services:
Twenty-nine licenses have been awarded to nine companies. Service has
already been started by two companies in Mumbai.
64 KBps Closed User Group (CUG) Data Service through VSAT:
Thirteen licenses have been awarded to private Indian companies. Eight
companies have commenced the service.
Wireless Service:
Wireless services subscriber base increased by 3.53 million in March 2007
as compared with 6.21 million in February 2007. This lower growth in the month
of March 2007 can be attributed to insistence by the Government to ensure
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verification of subscribers. The total wireless subscribers at the end of March 2007
are 166.05 million as compared to 98.78 million in March 2006 registering an
annual growth of around 68%.
(Source TRAI)
Wire-line Subscribers:
In the Wire-line segment a total of 0.40 million subscribers were added
during March 2007 as compared to a decline of 0.02 million in February 2007.
With this the total subscriber base of wire-line reached 40.78 million in March
2007 as compared to 41.54 million in March 2006 registering a decline 1.82%.
Tele-density:
The gross subscriber base reached 206.83 million at the end of March 2007.
The teledensity is 18.31% at the end of March 2007 as compared to 12.80 at end of
the March 2006 registering an increase of 43%.
Broadband Subscribers:
The Broadband connections (>256 Kbps download) in the country have
touched 2.30 millions at the end of March 2007 as compared to 1.35 millions in
March 2006 registering a growth of 70%. The broadband subscribers were 2.21
million in February 2007 and thus there is addition of 0.09 million broadband
subscribers in March 2007.
(Source TRAI)
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There has been a dramatic fall in the tariffs due to increased competition.
The minimum effective charges for local calls have fallen considerably in recent
months especially for cellular service. The long distance domestic as well as
international charges have also fallen considerably.
As per the Nokia's estimation, India will be the number two mobile handset
market worldwide by 2010 as demand of handset continues to grow:
India will be the second largest mobile handset market by the year 2010,
according to Nokia, the largest mobile manufacturer in the world. Presently, India
stands at third spot in the list of mobile phone markets in terms of Nokia sales
volume, after the United States and China, as per the news published on
Tech2.com.
"India is one of the fastest growing markets right now in terms of mobile
phone consumption and usage. As this trend is expected to continue, we are
planning to cash in on and soon have the country emerge as the second-largest
consumer for Nokia by 2010," said Director-Sales of Nokia India, Sunil Dutt, in
news published on Agency faqs.
According to Nokia, the launch of affordable and smart handsets with some
attractive features is the major driver of the growth in the mobile market of India.
The cell phone users in India have doubled during the past years to 150
million by the end of the year 2006. In India, more than six million new mobile
phone users are signing up each month that makes India the fastest developing
mobile phone market in the world. This growth is predicted to come greatly from
above 600,000 villages where a major fraction of Indian population lives.
Although the average Indian mobile user remains cost-conscious because of
low- income living and huge size of mobile subscriber in India uses only SMS or
voice services; new and more multifunctional handset with features like cameras,
FM radio and mobile video are becoming more and more popular. Also, India is
the largest untapped market where the 20% of the total world's population lives.
According to the COAI (The Cellular Operators Association of India), Mobile
operators in India faces numerous regulatory obstacles, including the high fees of
interconnection, abuse by present operators and shortage of spectrum, high govt.
taxes and levies that include high license fees.
As per the research analyst at RNCOS, "There seems no good reason why
the mobile market of India can't grow more speedily than current estimation if the
competitive and regulatory barriers can be removed. The Indian government's
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bottom line must be that if they have the mobile penetration of 3% in the year
2006, then they will be discouraging their economic position".
GROWTH DRIVERS
➢ Vast geographic expanse of India acted as a catalyst to boost mobility
➢ Low call costs since 2002 fueled the wireless segment
➢ Narrowing gap of call costs between fixed and wireless convinced
customers to subscribe to wireless connections
➢ Nationwide roaming facilities on GSM
➢ Internet + Subscription bundling
➢ Reduced cost of handsets (affordability factor)
➢ Customs duties have been reduced from 10% to 5%
➢ In remote areas where providing fixed line connections were difficult,
wire-less did the magic.
➢ CDMA fixed wireless gave customers 3 in one advantage – Mobility,
internet and messaging.
➢ An accelerated rate of productivity growth wouldn't be possible unless
companies large and small across the country are using information
technology to cut costs, increase output, and generally rebuild the way they
are doing business.
➢ The need to boost competition, provide better value to customers, and slice
costs from the supply chain remains a perpetual driving force for technology
spending.
➢ Depending on where the technology is positioned in the company, corporate
investment in information systems will lead to increased sales of services
and software.
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Market Share for major telecom companies
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Members of COAI:
Core members:
Name of the member Region
Aircel Limited Chennai, Tamil Nadu, West Bengal,
Assam Orissa, North East, Jammu &
Kashmir, Bihar, Himachal Pradesh
Bharti Airtel Limited Delhi (Metro), Mumbai (Metro),
Kolkata (Metro), Chennai (Metro),
Andhra Pradesh, Gujarat, Haryana,
Himachal Pradesh, Jammu & Kashmir,
Karnataka, Kerala, Madhya Pradesh,
Maharashtra & Goa, Orissa, Punjab,
Rajasthan, Tamil Nadu, UP (West), UP
(East), West Bengal, Assam, North East,
Bihar
BPL Cellular Limited Mumbai (Metro)
Vodafone Group Mumbai, Delhi, Kolkata, Chennai,
Gujarat, Andhra Pradesh, Karnataka,
Punjab, Haryana, Rajasthan, U.P.( East),
U.P.(West), Kerala, Maharashtra &
Goa, Tamil Nadu, West Bengal
Idea Cellular Limited Andhra Pradesh, Maharashtra, Gujarat,
Madhya Pradesh, Kerala, Haryana, U.P.
(W), U.P.(E), Madhya Pradesh,
Mumbai, Himachal Pradesh
Reliance Telecom Limited Assam, Bihar, Himachal Pradesh,
Kolkata, Madhya Pradesh, North East,
Orissa, West Bengal
Spice Communications Limited Karnataka, Punjab
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• 20 million broadband subscribers by 2010
• Mobile access to all villages with population of more than 1,000 by 2007
26
Anil Dhirubhai Ambani Group
27
Bonds, Movies
Website www.RelianceADAgroup.com
• Reliance Capital
○ Reliance Capital
○ Reliance Money
• Reliance Communications
• Reliance Energy
• Reliance Power
• Reliance Health
• Reliance Entertainment
• Tech Reliance
• DA-IICT
29
Reliance Communications is Reliance – ADA Group’s flagship company, it is
India's largest private sector information and Communication Company, with over
30 million subscribers. It has established a pan-India, high-capacity, integrated
(wireless and wireline), convergent (voice, data and video) digital network, to offer
services spanning the entire infocomm value chain.
Other major group companies — Reliance Capital and Reliance Energy — are
widely acknowledged as the market leaders in their respective areas of operation
Reliance Communications Limited
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Vision
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Milestones
1999
➢ The Dream:
"Make a phone call cheaper than a postcard and you will usher in a
revolutionary transformation in the lives of millions of Indians" - Dhirubhai
Ambani
➢ The Reality, November 15
Reliance Infocomm begins Project Planning
2000
➢ May 10
Optic fibre laying process commences in Gujarat, Andhra Pradesh &
Maharashtra.
2001
➢ May 1
First Media Convergence Node made "Ready for Electronics" at Jaipur
2002
➢ January 15
First Base Transceiver Station (BTS) made "Ready for Electronics"
➢ February 25
Obtains International Long Distance License from Govt. of India
➢ December 27
Hon'ble Prime Minister of India, Atal Behari Vajpayee e-inaugurates
Reliance Infocomm,
Hon'ble Union Minister for Parliamentary Affairs, Information Technology
and Communications, Pramod Mahajan, inaugurates NNOC.
2003
➢ February 14
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Launches Reliance WebWorld in top 16 cities
➢ March 31
Launches International Long Distance Services
➢ April 25
Introduces colour handsets
➢ May 1
Launches Reliance IndiaMobile Service commercially in top 92 cities
with one million customers.
➢ July 1
Introduces "Monsoon Hungama" Offer: Instant multimedia mobile phone
and connection for just Rs 501.
Sets world record - acquires one million customers in 10 days.
➢ Aug 26
Introduces Reliance IndiaPhone Fixed Wireless Phone and Terminal
➢ October 6
Launches integrated broadband centre at Reliance WebWorld, Bangalore
➢ October 30
Reliance becomes India's largest mobile service provider within 7 months of
commercial launch
➢ November 3
Customer base touches 5 million
➢ December 19
Adds 4500th Contact Centre Executive
Contact Centre becomes the largest such facility deployed by any single
Indian Service Provider
2004
➢ January 12
International wholesale telecommunications service provider, FLAG
Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary
of Reliance Infocomm.
➢ February 9
Launches RIM Prepaid with attractive offer - For Rs 3500 get a Motorola
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C131 mobile phone and Rs 3240 worth of re- charge vouchers instantly and
stay connected for 1 year.
➢ February 17
Reliance subsidiary Flag Telecom announces FALCON Project - a major
new Middle East Loop Terabits Submarine Cable System with links to
Egypt and Hong Kong via India
➢ May 27
Reliance Infocomm receives the Most Promising Service Provider of the
Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards
instituted by Frost & Sullivan.
➢ September 6
Mukesh D. Ambani, Chairman, Reliance Infocomm, receives Voice & Data
"Telecom Man of the Year" award
➢ October 19
Reliance Infocomm bags the CDMA Development Group's 3G CDMA
Industry Achievement Award for International Leadership.
2005
➢ January 04
Reliance introduces first e-recharge facility in CDMA in India.
➢ January 24
Reliance IndiaMobile announces mega rural plan to cover 4 lakh villages
and 65 crore Indians by December 2005.
➢ June 26
Anil Ambani appointed Chairman of Reliance Infocomm.
➢ August 11
XLRI's Post-Graduate Certificate programme in Logistics Supply Chain
Management (PGCLSCM) launched on Reliance WebWorld's virtual
classroom platform. first of its kind e-learning programme in India.
➢ September 15
Reliance Communications, UK launched Reliance IndiaCall service in
England and Wales enabling callers to make high-quality calls to India from
any landline or mobile phone at economical rates.
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➢ October 13
Reliance WebWorld wins Frost & Sullivan Market Leadership Award for
Video Conferencing services.
➢ December 12
Reliance Infocomm and China Telecom sign agreement for telecom services
to provide direct telecommunication service, including a global hubbing
service, to subscribers in the two countries.
2006
➢ January 01
Reliance Infocomm launches "One Nation, One Tariff" to enable Reliance
IndiaMobile prepaid users to call anywhere in India at Re one per minute.
➢ March 06
Reliance Communications Ventures Ltd. (RCVL), India's leading integrated
telecommunications company, a member of the Reliance - Anil Dhirubhai
Ambani group, lists on the Bombay Stock Exchange and National Stock
Exchange.
➢ April 27
Reliance Communications launches India’s first Talking Message Service
(TMS) enabling its mobile users to send voice messages to not only other
mobiles but also fixed wireless phones (FWP) and landlines.
➢ July 03
Reliance Communications launches 'Hello Capital Plan' to enable its
subscribers in 19 state capitals to call each other at the local call rate of 40
paise per minute.
➢ July 19
Reliance Communications slashes ILD rates by up to 66%
➢ September 5
Union Communications & IT Minister Thiru Dayanidhi Maran inaugurates
Reliance Communications’ FALCON Cable System.
➢ December 28
Reliance Communications’ FLAG Telecom announces FLAG Next Gen to
cover 60 countries
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2007
➢ January 10
Reliance Communications adds a record 1.4 million subscribers in
December ‘06
➢ January 30
Reliance joins Lenovo and Intel for "Internet on the Move"
➢ March 23
Govt’s Rural Telephone Scheme(RDEL)through Reliance Communications
successfully closes by March 31,2007
➢ April 6
Reliance Communications acquires 1.2 million subscribers in March 2007
➢ May 2
A Classic Bonanza – Reliance Communications unveils handsets @ Rs 777
➢ May 9
RCOM bags West Bengal E-Governance Project
➢ August 31
Reliance Communications , the official global partner for the first edition of
ICC Twenty 20 World Cup Championship 2007 in South Africa unveils the
coveted Trophy in Mumbai and announces Dhoni - Dhanadan Pack
➢ September 10
RCOM launches BlackBerry 8830 World Edition Smartphone
'Bloomberg Professional' now on Reliance Mobile
➢ October 20
Reliance Communications to launch nationwide GSM Services under
existing Unified Access Service Licenses
37
Technology
38
Finally, the most important aspect of Reliance services is the range of
feature-rich CDMA 1X handsets with wider colour display at attractive prices. All
handsets are data enabled that will permit users to access our bouquet of services.
The technologies will help Reliance communication to provide world class telecom
services in both voice and data at prices affordable by the Indian masses.
NETWORK
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➢ All this managed from our state-of-the-art national network operations
centre in Mumbai. The goal of Reliance communication is to progressively
expand its optic fiber network and eventually cover 116,000 km, with the
ability to seamlessly connect every individual, home, and office in all
640,000 villages and 2,500 towns and cities of India.
Marketers use numerous tools to elicit desired responses from their target
markets. These tools constitute the marketing mix.
The four broad groups which we call the four P’s of marketing are as follows:
➢ Product
➢ Price
➢ Place
➢ Promotion
Product
Products offered by Reliance include:
1. Reliance India Mobile
2. Reliance Net-connect
3. Reliance Broadband
4. Reliance India Phone
5. Reliance Data Card
6. Reliance India Call
Reliance includes large variety of handsets, which also offer popular handsets
of Nokia, LG, Motorola, Classic and Black Berry. They include features like:
• In-built modem for Internet connectivity.
• Caller line identification
• Value roaming
• Voicemail service
• Way call conference
• Caller line identification restriction
• International SMS
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• Call wait/call hold/call divert
• SMS chatting
• Internet E-mail.
• Cameras
• Multimedia players.
• Blue tooth.
(the features of set depends upon the cost of set not every set contain all the written
features)
Reliance India also provides with after sales services by way of dealing with
customer complaints that can be dealt at Reliance web stores.
Price
Reliance has flexible tariff plans that could be opted for depending on the various
spend levels and calling patterns of the customers. For postpaid subscribers they
have NJR 199 SOHO, Unlimited 440, 99 on net pack, SMS packs. That reduces
the call rates. There are tariff plans which enables customer to call Reliance to
Reliance 24 hour all India free. These flexible tariff systems has been developed
keeping into consideration the segmentation of the customers on the basis of
demographic, geographic and behavioral basis.
Reliance communications give mobile handsets at unbelievably low prices
the set range starts from Rs.777 and goes to Rs. 30000.
Place
Reliance India Phone has coverage of
➢ 1, 65,000 kms of optic fiber backbone.
➢ Wireless network covering over 15000 cities/towns and 4 lack villages.
➢ 4,300 Base Transceiver Stations (BTSs) across the country, to increase to
around 8,500 by December.
➢ Network with superior reliability.
All this managed from our state-of-the-art national network operations centre in
Mumbai. Its distribution channel includes-
➢ Payment Location
To help customer pay their monthly bills, Reliance have fixed
drop boxes at various locations through out the city. The drop
boxes are located at Reliance Web worlds, Retail shops, Vimal
showrooms and various bank branches.
Promotion
Communication adds to the merits of the product and induces target
customers into buying the product. Reliance has a very aggressive promotion
campaign which includes newspapers, magazines, television, hoardings etc. The
Company has spent a large amount of money in sales promotion by means of
media advertising, through celebrity endorsements, hoardings, road shows and
various discount schemes.
Some of the prime mediums of promotion regularly used by the company are:
➢ Print media
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➢ Audio video medium of communication
Company had spent Rs.90 lack on advertisement in recent brand change programs.
It proves the promotion consciousness of RCVL.
ORGANIZATION STRUCTURE
43
ORGANIZATION STRUCTURE
44
PRODUCTS AND SERVICES
45
Product Range
For the first time in the CDMA space anywhere in the world, Reliance
Infocomm has indigenously developed a revolutionary product, named Get Started
Kit (GSK), to empower its subscribers with the flexibility to choose from its wide
range of handsets, as well as the choice to select mobile phone numbers of one's
choice.
India's largest mobile services provider with over nine-million subscribers,
Reliance Infocomm rolled out the GSK, which is available at Reliance WebWorlds
and the 40,000-strong channel partners across the country.
With the new GSK, available for both prepaid and post-paid subscribers in
separate packs, one can purchase any Reliance-approved handsets from the open
market and get them activated, that too with numbers of their choice. Hitherto,
Reliance Infocomm, or for that matter any other CDMA operator, has been
providing handsets with pre-activated numbers.
The GSK consists of a pre-allocated ten-digit RIM number and a nine-digit
unique PIN to help activate a handset. The new product is ideally suited for those
who would like to have a number of their choice, those who would like to have
local numbers when they move to new cities or towns and those who would like to
either sell or gift their old handsets and buy new ones.
Benefits of GSk’s
➢ GSK offers flexibility to choose from an array of handsets
➢ Will also boost second hand phone market
➢ Rollout across Reliance WebWorlds and 40,000-strong channel chain
46
Reliance Infocomm Ltd., a Reliance group company, is India's largest
mobile service provider with over 40 million customers. Reliance Infocomm has
established a pan-India, high capacity, integrated (wireless and wire-line) and
convergent (voice, data and video) digital network, to offer services spanning the
entire Infocomm value chain - infrastructure, services for enterprises and
individuals, applications and consulting.
• Broadband services.
Reliance Communications provides a wide range of hand sets to their
customers, Reliance India Mobile Includes LG, Nokia, Classic, Motorola and
Black Berry hand sets. The handset ranges from Rs. 777(classic) to Rs.
30990(Black berry). The customer can choose any of the services of RIM (prepaid
and postpaid) according to their choice and usage and then select the mobile set.
The post paid services of rim gives very attractive plan which no other company is
providing in the Lucknow cluster, it gives individual as well as corporate
connections, the advantage of corporate connection is that in this connection CUG
can be activated and the subscriber of corporate connection can talk to each other
for free. There are other plans for different usage like all India rim to rim free
(unlimited 440) and roaming plans are also provided by the RIM. In the pre paid
47
section RIM offers 99 and 299 GSK, with these GSK a customer can start his
connection the 299 GSK comes with lifetime incoming. After that RIM provides a
wide range of recharge coupons starting from Rs. 10 to Rs. 10000 on Reliance
mobile and from RS.25 to Rs. 3370 on Reliance FWP. RIM also provides special
tariff vouchers (STV) according to the different usage of customers.
Reliance also provides FWP (fixed Wireless phone) and FWT (fixed
wireless terminals). These devices are available with prepaid and postpaid. FWP
are portable and can be used easily anywhere in the circle. At the present FWP and
FWT are provided only on classic handsets.
Reliance Communications also offers Net connect. Net connect is a
wireless device for using Internet, the customer can connect it on laptop and on
desktop, it is a portable device. The net connect device is of two kinds the one is
USB modem and another is Data card. The USB modem can be connected on both
48
on laptop as well as on desktop. But the Data card can only connect on laptop
which has PCMIA slot. The cost of Netconnect USB modem is Rs. 2299 . The
reliance net connect service is on both prepaid and postpaid. Reliance Net connects
give high connectivity and give speed up to 3.1Mbps.
Reliance also provides broadband services which come under fixed line or
are provided through wire. In this section reliance provides broadband and fixed
telephones.
Mini CIOU:
Mini CIOUs are also like RMS sales and collection work is done at this
MINI CIOU. There is just one mini CIOU in Lucknow at Vikas Nagar and four
mini CIOU in outskirts of Lucknow like Sultanpur, Rae Bareli etc.
Distributors:
Distributers in Lucknow take products of R-com from the down office of
Reliance communication at BTC House in Gomti Nagar. And distribute to the
retailers in Lucknow markets and in the outskirts of Lucknow. There are eight
distributors in Lucknow cluster.
Retailers:
There are so many retailers in Lucknow market who sell Reliance
Communication pro duct in the market.
50
For reliance communications customers are assets. And Reliance is always
ready to provide good services to its customers. Reliance communications owns a
trained, well managed and 24 hour customer care center. There are toll free no’s
for the convenience of the customers. Customer care is also available at all the
Reliance web word, Mini CIOU and RMS. To help its customers Reliance comm.
Have strong management information system. There are four softwares which are
used by the customer care department, they are as follows:
1. ICCM (integrated credit control management).
2. Clarify customer portal.
3. Simplify
4. UCM
These four softwares help the customer care to work efficiently.
• ICCM is used for billing and problem related to the billings it contains
all the information about the customer. This software is only to get the
information about the customer, no changes can be made in the
customer’s account using this software.
• Clarify customer portal is the most important soft ware. This soft ware
is used for changing the MDN (number) retention of old MDN to a
new set, to Open and bar the incoming out going of customers, open
and bar of STD and ISD of customers, activation of different tariff
packs etc.
• Simplify is a soft ware which is used for the purpose billing. This soft
ware is for only get the information about the customer, no changes
can be made in the customer’s account using this soft ware.
• UCS –again only one way information of call can be retrieve from
this software and no changes can be made in customers account.
To provide instant solutions to the complains of customers reliance Uses
FTR (first time resolution) system, in this system the customer gets the solution of
his problem in just one visit or call to customer care. For every case of complain
there is a minimum timing in which the problem get solved, at the time of entering
the problem or complain of the customer the software gives the minimum timing
that timing is communicated to the customer, after that timing the cross checking is
done that whether problem is solved or not and if in case the problem could not be
solved the customer care calls the customer and communicate for further timing
from the customer for solving the problem.
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Bills Collection system of Reliance Communication
Reliance communication is no. one post paid service provider. It provides
customer with cheapest rental plans, tariff plans and best collection services for the
bills.
In Lucknow cluster there is a collection team which is headed and managed
by Reliance communications manager. This team collects the bills of postpaid
services some private agencies are also hired by the reliance for the work of
collection.
The information of the bills is send to the customers through an SMS. And through
courier service calls are also made by the collection department to the customer to
remind about the billing date and due date.
Customers can directly pay their bills at any reliance web word, mini ciou, and at
RMS, customer who are not willing to pay the bills directly; a collection team
member goes to the place of those customer and collects the bill.
The collection system of reliance communication is divided in six parts.
Which are as follows:
1. FTB: First Time Billing, when a customer pays his first bill. FTB confirms
the billing address of the new customer and billing date and billing method
of the new customer.
2. STB: Second time billing; it gives the further confirmation about the
customers.
3. Current basket: Those bills fall in this basket which are in between the date
of bill generation and due date. Most of the billing activities are done in this
basket.
4. 0 to 30 basket: it is the period of 30 days of overdue. If any customer is
paying his bill in this basket he has to pay late charges and if over due
exceeds 30 days customers outgoing services gets bared automatically. And
if over due period exceeds 45 days incoming services of customer gets bared
automatically.
5. 30 to 60 basket: If a customer not pays his bill even after 30 days the bill
falls in this basket. For such bills the collection team visits the customer for
recovery of bills.
6. 60 to 90 days basket: If a customer not pays his bills after 60 days of over
due, the bill falls in this basket. This basket is called hard recovery basket. In
this basket, for recovery of bills a legal notice is send to the customer.
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To help customers pay their monthly bills, Reliance has installed drop boxes
at various locations through out the city. The drop boxes are located at Web
worlds, retail shops, Vimal showrooms and various bank branches.
EXECUTIVE SUMMARY
53
TOPIC
Study on “Market competitiveness of Reliance communication Venture
limited in Lucknow cluster”.
OBJECTIVE
RESEARCH DESIGN
Exploratory research design was used for this project..
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Methods used under this kind of research design are:
Developing plans for the research
Drafting questionnaire
Survey
Analyzing and interpreting the results.
SAMPLE DESIGN
SAMPLE SIZE: 100
FINDINGS
• Most of retailers think that the Reliance Communications
Advertisement campaigns are not as effective as other
companies.
• Most of the retailers prefer GSM in comparison of CDMA
because GSM gives a huge choice of handsets.
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• Reliance Communication is offering good schemes to attract
new customers.
• Most of the retailers think that Reliance connectivity is not as
good Airtel and Vodafone.
• Most of the retailers agree that Reliance is providing the best
offers and tariff plans.
• According to the most of retailer’s no. one prepaid service
provider is Airtel and Reliance stands second in prepaid
services.
LIMITATIONS
• The scope of the study is restricted only to the major areas of Lucknow and
does not include the outskirts.
• Responsive error ---- this arises when respondents are unwilling to listen or
talk.
• Time was the major constraints in interviewing required retailers.
56
RESEARCH METHODOLOGY
57
RESEARCH METHODOLOGY
Research refers to search of knowledge. According to Clifford Woody “The
research comprises defining and redefining problem,formulate hypothesis or
suggested solution ,collecting,organising and evaluating data,making deductions
and reaches onclusion and at last carefully testing the conclusion to determine
whether they fit the formulated hypothesis.”
OBJECTIVE
The primary objective of the research is to understand, analyze and interpret
the telecom market dynamics and its competitiveness in local telecom market, In
local market there are six players in the market Reliance Communication, Airtel,
Idea, Vodafone, BSNL and Tata Indicom. In the present scenario the competition
among this player is very high, companies are attracting customers by offering new
plans and cheaper call rates. So in this competitive scenario there are different
factors which can give competitive advantage to the companies. Like customer
care, network coverage and good communication with retailers.
.
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To determine and analyze the results of the survey along with the various
relationships between factors.
To interact with the retailers formally and informally and ascertain their
problems empathetically.
RESEARCH DESIGN
Exploratory research design was used for this project. The main purpose
of this research is to interact with retailers and to know the satisfaction level by the
quality of services being rendered by different telecom service providers. The
major emphasis in this study is on discovering of ideas and insights.
SAMPLE DESIGN
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Sampling is done to figure out the parameters, which decide our sampling
techniques and the sample size to be adopted. It is the process of selecting units
from population of interest so that by studying the samples one can fairly
generalize the results to the population from which the results were chosen. This
would further help the whole research to reach the final solution.
INTERPRETATIONS
60
FACTORS OF COMPARISON
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13.Demand in the market.
14.Response, for the requests of the customers and retailers.
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Communication
s with retailers
profitability 32 15 22 10 8 13 100
Demand 30 27 12 13 3 15 100
Response 20 35 5 30 0 10 100
overall 397 397 176 243 41 144
1. Advertising campaigns:
INTERPRETATION
Ranking:
I. Vodafone
II. Airtel
III.Idea
IV.Reliance
V. BSNL
VI.Tata indicom
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that the reliance advertising is not as effective as Airtel or Vodafone. Reliance is
far behind Vodafone in advertising campaigns, which shows its weakness.
INTERPRETATION
Ranking:
I. BSNL
II. Reliance
III.Airtel and Idea
IV.Vodafone
V. Tata Indicom
These offers are given by companies to attract the customer of other service
providers or new customers of the industry.
Surprisingly 23% of the retailers think that BSNL provides best offers with
new connections. Reliance is at the second position, though reliance offers are very
attractive but the reason is Reliance offers CDMA connection that may be a reason
why it stands at the second position.
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INTERPRETATION
Ranking:
I. Airtel
II. Vodafone
III.Reliance
IV.BSNL
V. Idea
VI.Tata indicom
Reliance communication stands third in terms of connectivity. Airtel and
Vodafone have better connectivity. Being good in connectivity is essential to
survive in telecom sector, Reliance Communication uses CDMA technology which
gives better connectivity and better voice clarity comparing to the GSM
technology. But still retailer thinks that Reliance network is not as good as Airtel
and Vodafone.
INTERPRETATION
Ranking:
I. Reliance
II. Airtel
III.Idea
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IV.BSNL
V. Vodafone
VI.Tata indicom
Reliance stands at the first position in providing offers to the customers.
Reliance keeps on launching new attractive offers time to time. In last two months
reliance has launched five new offers on color mobiles of LG and Classic at the
rates. No other company can offer mobile sets at such cheaper rates.
1. Customer care.
INTERPRETATION
Ranking:
I. Airtel
II. Vodafone
III.Reliance
IV.Idea
V. BSNL
VI.Tata indicom
Customer care is a very important factor for any company in taking competitive
advantage. Retailers think that Reliance is at the third position in customer care.
Airtel got 40% of the votes from retailers. which show that retailers are well
satisfied with Airtel customer care.
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INTERPRETATION
Ranking:
I. Reliance
II. Idea
III.Airtel
IV.BSNL & Vodafone
V. Tata indicom
Reliance offers best plans, cheapest call rates and attractive tariff vouchers.
Reliance also provides LG and Classic handsets at unbelievably low cost. And
hence it stands at the first. Idea is also offering cheaper call rates and attractive
tariffs to the customers.
1. Prepaid services.
INTERPRETATION
Ranking:
I. Airtel
II. Reliance
III.Vodafone
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IV.Idea
V. BSNL
VI.Tata indicom
37% are in the favor of Airtel and 35% are in the favor of Reliance. The reason
may be due to the difference in the technology that is CDMA and GSM.
1. Postpaid
INTERPRETATION
Ranking:
I. Reliance
II. Vodafone
III.Airtel
IV.Idea
V. BSNL
VI.Tata indicom
1. Internet/data card
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INTERPRETATION
Ranking:
I. Airtel
II. Reliance
III.BSNL
IV.Tata indicom
V. Idea
VI.Vodafone
In broad band segment Airtel is no. one reason in Airtel broadband is available
in every area of Lucknow but the conditions are not same with reliance its
broadband is available in some parts of Lucknow. Reliance also provides Net
connect facility which is a better service than broadband it is a wire less service
which can be used with laptops and desk tops as well. Reliance offers net connect
with attractive schemes. Net connect is now getting very popular in the market.
The only competitor in this segment of net connect is Tata indicom.
INTERPRETATION
Ranking:
I. Airtel
II. Reliance
III.Vodafone
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IV.BSNL & Idea
V. Tata indicom
In value added services reliance stands second and Airtel is again no. one in this
segment. Both Airtel and Reliance are providing excellent VAS but the target
customer of Reliance and Airtel are different
INTERPRETATION
Ranking:
I. Reliance
II. Airtel
III.Vodafone
IV.Idea
V. BSNL
VI.Tata indicom
I asked this question to the retailers to know which company is friendly with the
retailers, since retailers play a very important role in increasing the sales of any
company, and if a company is not communicating well with retailers about the
changes in schemes and about new schemes. The retailer will communicate wrong
or old scheme and call rates to customer which may alter the sales of that
company.
Retailers think that Reliance is the in communicating about changes in schemes
and new schemes. This is a good sign for Reliance communication.
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INTERPRETATION
Ranking:
I. Reliance
II. Idea
III.Airtel
IV.BSNL
V. Vodafone
VI.Tata indicom
Asking about which company is more profitable for retailers. The majority of
the retailers think its Reliance. The reason behind asking this question was,
retailers would promote the sales of that company more which is more profitable
for them. Idea is the next more profitable company for retailers.
INTERPRETATION
Ranking:
I. Reliance
II. Airtel
III.BSBL
IV.Vodafone
V. Idea
VI.Tata indicom
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The figures depicts that Reliance has highest demand in the market. The next is
Airtel.
INTERPRETATION
Ranking:
I. Airtel
II. Vodafone
III.Reliance
IV.BSNL
V. Idea
VI.Tata indicom
Which company gives quick Responses, for the requests of the customers and
retailers. Requests like demand for special mobile no., blocking the no. in case of
theft of mobiles. Retailer’s requests like e-recharges, invalid recharge coupons etc.
retailers think Airtel gives quick responses for such request. Reliance stands third
in this segment and surprisingly BSNL got 10% of the votes for quick response.
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Looking at the market share of the two companies Airtel has captured the
largest segment of the market and Reliance is second in terms of market share.
My survey is also showing that Airtel is giving very tough competition to
reliance in every segment.
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Over all Comparison of the six companies:
➢ The figure depicts the some of all votes got by the six companies for all the
fourteen factors.
➢ Airtel and Reliance communication received the same number of votes.
➢ Tata indicom received the lowest number of votes.
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FINDINGS
FINDINGS
75
• According to most of the retailers Reliance is no. one post paid service
provider.
• According to the retailers Airtel is no. one internet provider and Reliance
stands at second position.
• In value added services Reliance stands behind Airtel.
• Most of the retailers think that Reliance has maintained strong relationship
with them and communicate about new schemes very quickly.
• According to most of retailers Reliance is most profitable for them.
• According to the retailers Reliance has highest demand from customers.
• According to the most of the retailers Reliance do not responds quickly to
retailers and to the customer’s request
• Airtel is the main competitor for Reliance and doing even better than
Reliance in some areas like customer care.
• Idea is gradually improving its market share and it can be a threat for
Reliance.
• Tata indicom is the weakest player in the Lucknow market.
• Reliance has positioned itself very well in the post paid market.
• Reliance is the most profitable company for retailers.
SUGGESTIONS
AND
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RECOMMENDATIONS
77
TARIFF PLANS
1. Company should make tariff plans simpler. TRAI has also its keen concern
on the complexity of tariff plans which rather helping the retailers and
customers they confuse them.
2. Company should categorize the tariff plans into three categories. Each
category for an individual set of customers on the basis of there usage
pattern. This will help them to identify the best suited tariff plan for his/her
requirement. Following categories is suggested:
a) Low budget users (L)
b) Medium budget users (M)
c) High budget users (H)
Market expansion
1. Company should try to retain the present retailer base and look forward to
unexplored markets.
2. Company should focus on those retailers, which are not giving huge
business but have potential to do so.
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• Value Added Services should be advertised keeping
target customer in mind. And improvement in VAS is
also required.
• Reliance must take care of requests of retailers and
customer and should give quick response to the
requests.
• Reliance must launch GSM service in the market to
further increase its market share. Because CDMA
service limits the Choice of handsets.
• Reliance must improve the quality of Classic mobiles
as there are so many complain in the performance of
Classic mobile sets.
• Reliance must make available its broadband services
in all areas of Lucknow as it has a high demand from
the customers.
Reliance must take care of stock of the products which come under schemes for
few days. Because generally such products run out of stock during the schemes
period
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LIMITATIONS
LIMITATIONS
• The scope of the study is restricted only to the major areas of Lucknow and
does not include the outskirts.
• Responsive error ---- this arises when respondents are unwilling to listen or
talk.
• Time was the major constraints in interviewing required retailers.
80
81
CONCLUSION
82
CONCLUSION
83
BIBLIOGRAPHY
BIBLIOGRAPHY
84
Kotler. Phillip, Keller. Kevin, Marketing management, Prentice hall
India, 12th edition, 2006, (102-103)
REFERENCES
COMPANY OVERVIEW
http://www.rimweb.in/forums/indexphp?showtopic=1896&mode
http://www.rcovl.com/rcovlportal/business_profile.html
http:www.rcovl.com/rcovlportal/home.jsp
INDUSTRY OVERVIEW
www.trai.gov.in/trai/upload/tarifforders/54/torder21maro6.pdf
www.coai.co.in
85
www.auspi.co.in
COMPITITIVE ANALYSIS
http.//www.vodafone.in/bottom/aboutus.asp
http.//www.vodafone.in/postpaid/talk_plans_upe.asp
http://www.airtelworld.com/about.jsp
http://www.tataindicom.com/aboutus.asp
Research Methodology: C.R.Kothari,
Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch
4 Ps Business and marketing
86
APPENDIX
Sample Questionnaire
87
I Prateek Vashist a summer trainee in Reliance Communications, conducting
a survey to measure “Market Competitiveness of Reliance Communication
Venture Limited in Lucknow Cluster”. The information provided by you would
be kept confidential and will be used only for academic purpose.
The questionnaire contains Fourteen simple objective questions. Each question
contains six options the respondents have to choose any of the six options,
according to their choice.
Reference:
MR. ASHISH VATS
(CIOU Manager) Reliance Communicatio
DEMOGRAPHIC PROFILE:
Contact number________________________________________________
88
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Q2. Which company gives best offers at the time of new connections?
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Q3. Which one is the best service provider in terms of connectivity in Lucknow
and outers of Lucknow?
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Q4. Which company provides the best offers to the customers?
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Q5. Which company gives the best customer care services to the customers?
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Q6. Which company provides best products and tariff plans to the customers?
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Q7. Which company is the best in providing prepaid services?
1. Reliance Communication 2. Airtel
3. Idea
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4. Vodafone 5. Tata
Indicom 6. BSNL
Q8. Which company is the best in providing postpaid services?
1. Reliance Communication 2. Airtel
3. Idea
4. Vodafone 5. Tata
Indicom 6. BSNL
Thank you
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