A

PROJECT REPORT
ON
MARKET ANALYSIS
OF
PREPAID BUSINESS
(CDMA & GSM)

SUMMER TRAINING PROJECT REPORT SUBMITTED

TOWARDS PARTIAL FULFILLMENT
OF
BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO CH. CHARAN SINGH UNIVERSITY, MEERUT)
ACADEMIC SESSION
(2007-2010)
SUBMITTED BY:
SILKEY VARSHNEY
Roll No.: 9351788
BBA – VIth Sem.
UNDER THE GUIDANCE OF:
EXTERNAL SUPERVISOR INTERNAL SUPERVISOR
Mr. Deepak Rastogi Mrs. Shilpi Sarna
(Distribution Manager) (IMS, Ghaziabad)

INSTITUTE OF MANAGEMENT STUDIES

C-238, Bulandshahr Road, Lal Quan, PB No-57
Ghaziabad (U.P.)
 Acknowledgement
Exchange of ideas generates a new object to work in a better way. Whenever a person is
helped and co-operated by other, his heart is bound to pay gratitude and obligation to
them.
I am honored to be attached with prestigious organization. I extend my sincere to the
management of “RELIANCE COMMUNICATION” for availing me & giving me an
opportunity to work with them & assisting me in my project whenever required.

I am extremely grateful to my esteemed project guide, Mr. Deepak Rastogi

(Distribution Manager) for giving me an opportunity to work with him and his
indispensable help and guidance throughout this project and for inspiring me to strive to
achieve the best in difficult situations.

First and foremost I would want to thank Mrs. Shilpi Sarna (Faculty), for giving each
and every student a platform of such nature where even before the completion, interaction
with the industry and exposure to the same is made possible.

(SILKEY VARSHNAY)

2
 Preface

Identifying the telecom sector as one of the prime movers to the Indian economy, new
telecom policies and regulation by Government of India aims at establishing world-class
telecommunications infrastructure in the country. Ranked sixth among the world telecom
sectors Indian telecom services are the fastest growing of all the telecom sectors in the
world.

The mobile phone industry in India is growing rapidly and has even left China behind by
some measures, whereas wireless operators are competing for the available and
expanding spectrum. A record 5.9 Million new mobile phone subscribers were drawn by
the Telecom sector in India in the month of August 2006, according to the COAI
(Cellular Operators Association of India).

The rise in the overall tale-density follows the increase in overall penetration of mobile
phones in the country. The subscriber base has already gone above the 90 Million mark.
India is likely to have 21.3 Million 3G users by the year 2010. Within the coming two
years, India is expected to become the 3rd largest mobile market in the world, replacing
Japan, after US and China. In the future, 3G technology needs to be harnessed fully for
enhancing the penetration of broadband in the congested urban areas.

The rise in demand for telecom services in India is not restricted only to the basic
telephony services. It has rather expanded its horizon to cellular, radio paging, value-
added services, Internet, and global mobile communication by satellite (GMPCS)
services in the country. Predicting the growth many analysts envision that the demand of
Indian telephony and cellular services are expected to rise further over the next few years.

3
Table of Contents PageNo.

 Executive Summary
 Introduction
 Methodology
 Analysis and findings
 Limitations
 Conclusions And Recommendations
 Appendices
 Bibliography

4
 Executive Summary

Objective

♦ To study the market potential of Pre-paid Mobile Services in Moradabad.

♦ To study about beat plan (GSM & CDMA)
♦ How to increased customer satisfaction

Scope of Study

♦ I have conducted this research in order to study market potential of Prepaid

Mobile Business of Reliance communication in Moradabad territory and it will be
helpful for the organizations getting into this business

Research Design

♦ I have used Exploratory Research and used Strata Sampling (Non-Probability

Sampling) to serve the purpose, with the retailers of pre-paid mobile Services
(GSM &CDMA) in the vicinity of Moradabad.

5
 History of Telecom

Indian Telecommunication – A Timeline

Year

1851 First operational land lines were laid by the government near Calcutta (seat of
British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the Posts,

Telephone and Telegraph (PTT), a monopoly run by the government's Ministry
of Communications

1985 Department of Telecommunications (DOT) established, an exclusive provider

of domestic and long-distance service that would be its own regulator (separate
from the postal system)

1986 Conversion of DOT into two wholly government-owned companies: the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan
areas.

6
1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.

2000 DoT becomes a corporation, BSNL

Cellular Telephony in India

1992 Telecommunication sector in India liberalized to bridge the gap through

government spending & to provide additional resources for the nation’s
telecom target. Private sector allowed participating

1993 The telecom industry gets an annual foreign investment Rs 20.6 million

1994 License for providing cellular mobile services granted by the government
of India for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai.
Cellular mobile service to be duopoly (i.e. not more than two cellular
mobile operators could be licensed in each telecom circle), under a fixed
license fee regime for 10 years.

1995 19 more telecom circles get mobile licenses

1995(August) Kolkata became the first metro to have a cellular network

7
1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs 17,756.4 million.

1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million

1999 Tariff rebalancing exercise gets initiated

1999(March) National Telecom Policy is announced.

2000(June) FDI inflow drops further down to Rs 918 million coming

2000 (January) Amendment of TRAI Act.

Indian Telecom Industry – A New Horizon

8
The telecom network in India is the fifth largest network in the world meeting up with
global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to India’s GDP.

The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique opportunities
for U.S. companies in the stagnant global scenario. The total subscriber base, which has
grown by 40% in 2005, is expected to reach 250 million in 2007. According to
Broadband Policy 2004, Government of India aims at 9 million broadband connections
and 18 million internet connections by 2007. In the last 3 years, two out of every three
new telephone subscribers were wireless subscribers. Consequently, wireless in FY 2005-
2006 accounted 54.6% of the total telephone subscriber base. Wireless subscriber growth
is expected to bypass 2.5 million new subscribers per month by 2007. The wireless
technologies currently in use are Global System for Mobile Communications (GSM) and
Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA
operators providing mobile services in 19 telecom circles and 4 metro cities, covering
2000 towns across the country.

9
 Market Share of Wireless (GSM + CDMA)
Operators

a) The market share of different GSM Service Providers is given

below:
GSM Group No of Subscribers Market Share
(in Millions) (in %age)

Bharti 55.16 32.03

Vodafone 39.86 23.14
BSNL 32.72 19.00
Idea 21.05 12.22
Aircel 9.43 5.48
Reliance 6.00 3.48
Spice 3.80 2.21
MTNL 2.95 1.71
BPL 1.24 0.72
Total 172.23 100

b) The market share of different CDMA Service Providers is given

below:
Company Name No of CDMA CDMA Market Share
Subscribers (in %age)
(in Millions)

Reliance 34.96 56.95

communication
Tata Teleservices 21.74 35.41
BSNL 4.09 6.66
MTNL 0.25 0.41
HFCL 0.25 0.41
Shyam Telelink 0.10 0.16
Total 61.39

10
Companies and No. of Circles covered

11
Major Players
There are three types of players in telecom services:
♦ State owned companies (BSNL and MTNL)
♦ Private Indian owned companies (Reliance communication, Tata Teleservices,)
♦ Foreign invested companies ( Vodafone-Essar, Bharti Tele-Ventures, Idea
Cellular, BPL Mobile, Spice communication

12
BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India
became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL
is now India’s leading Telecommunications Company and the largest public sector
undertaking. It has a network of over 45 million lines covering 5000 towns with over 35
million telephone connections.
The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet
and long distance services throughout India (except Delhi and Mumbai). BSNL will be
expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to
provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the
third operator of GSM mobile services in most circles, is now planning to overtake Bharti
to become the largest GSM operator in the country. BSNL is also the largest operator in
the Internet market, with a share of 21 per cent of the entire subscriber base.

BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector with many
firsts and innovations to its credit, ranging from being the first mobile service in Delhi,
first private basic telephone service provider in the country, first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private
sector service provider to launch National Long Distance Services in India. Bharti Tele-
Ventures Limited was incorporated on July 7, 1995 for promoting investments in
telecommunications services. Its subsidiaries operate telecom services across India.
Bharti’s operations are broadly handled by two companies: the
Mobility group, which handles the mobile services in 16 circles out of a total 23 circles
across the country; and the Infotel group, which handles the NLD, ILD, fixed line,
broadband, data, and satellite-based services. Together they have so far deployed around
23,000 km of optical fiber cables across the country, coupled with approximately 1,500
nodes, and presence in around 200 locations. The group has a total customer base of 6.45
million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January
31, 2004. In mobile, Bharti’s footprint extends

13
across 15 circles. Bharti Tele-Ventures' strategic objective is “to capitalize on the growth
opportunities the company believes are available in the Indian telecommunications
market and consolidate its position to be the leading integrated telecommunications
services provider in key markets in India, with a focus on providing mobile services”.

MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of
telecom services, expand the telecom network, and introduce new services and to raise
revenue for telecom development needs of India’s key metros – Delhi, the political
capital, and Mumbai, the business capital. In the past 17 years, the company has taken
rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating
companies. The company has also been in the forefront of technology induction by
converting 100% of its telephone exchange network into the state-of-the-art digital mode.
The Govt. of India currently holds 56.25% stake in the company. In the year 2003-04, the
company's focus would be not only consolidating the gains but also to focus on new areas
of enterprise such as joint ventures for projects outside India, entering into national long
distance operation, widening the cellular and CDMA-based WLL customer base, setting
up internet and allied services on an all India basis.
MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market
for fixed wireline phones is stagnating, MTNL faces intense competition from the private
players—Bharti, Hutchison and Idea Cellular, Reliance communication—in mobile
services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a
decline of 5.8 per cent over the previous year’s annual turnover of Rs.63.92 billion.

RELIANCE COMMUNICATION
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance communication offers a complete range of telecom
services, covering mobile and fixed line telephony including broadband, national and
international long distance services, data services and a wide range of value added
14
services and applications. Reliance India Mobile, the first of communication initiatives
was launched on December 28, 2002. This marked the beginning of Reliance's vision
of ushering in a digital revolution in India by becoming a major catalyst in improving
quality of life and changing the face of India. Reliance communication plans to extend its
efforts beyond the traditional value chain to develop and deploy telecom solutions for
India's farmers, businesses, hospitals, government and public sector organizations. Until
recently, Reliance was permitted to provide only “limited mobility” services through its
basic services license. However, it has now acquired a unified access license for 18
circles that permits it to provide the full range of mobile services. It has rolled out its
CDMA mobile network and enrolled more than 6 million subscribers in one year to
become the country’s largest mobile operator. It now wants to Increase its market share
and has recently launched pre-paid services. Having captured the voice market, it intends
to attack the broadband market.

TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over
200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles: Maharashtra
(including Mumbai), Moradabad, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka.
It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying
a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as
well.
The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million)
to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new
licenses, coupled with the six circles in which it already operates, virtually gives the
CDMA mobile operator a national footprint that is almost on par with BSNL and
Reliance communication. The company hopes to start off services in these 11 new circles
by August 2004. These circles include Bihar, Haryana, Himachal Pradesh, Kerala,
Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.

15
VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS. The company operates a network of
earth stations, switches, submarine cable systems, and value added service nodes to
provide a range of basic and value added services and has a dedicated work force of
about 2000 employees. VSNL's main gateway centers are located at Mumbai,
Moradabad, Kolkata and Chennai. The international telecommunication circuits are
derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g.
FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.
The company's ADRs are listed on the New York Stock Exchange and its shares are
listed on major Stock Exchanges in India. The Indian Government owns approximately
26 per cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group
owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, Foreign
Banks) is approximately per cent and the rest is owned by Indian institutions and the
public. The company provides international and Internet services as well as a host of
value-added services. Its revenues have declined from Rs. 70.89 billion ($1.62 billion) in
2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the
mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic
long distance services and is launching broadband services. For this, the company is
investing in Tata Teleservice and is likely to acquire Tata Broadband.

HUTCH
Hutch’s presence in India dates back to late 1992, when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai. Commercial operations began in November 1995. Between 2000 and March
2004, Hutch acquired further operator equity interests or operating licences. With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now
provides mobile services in 16 of the 23 defined licence areas across the country.
Hutch India has benefited from rapid and profitable growth in recent years. it had over
17.5 million customers by the end of June 2006.

16
IDEA
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO, according to parent company Aditya Birla Group .

Major Market Trends

The telecoms trends in India will have a great impact on everything from the humble PC,
internet, broadband (both wireless and fixed), cable, handset features, talking SMS,
IPTV, soft switches, and managed services to the local manufacturing and supply chain.
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself). They prefer
wireless services compared to wire-line services, which is evident from the fact that while
the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006, the
wire-line subscriber base growth rate is negligible during the same period. In fact, many
customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution. The main drivers for this trend are
quick service delivery for mobile connections, affordable pricing plans in the form of pre-
paid cards and increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class – a prime market for this service.
Some of the positive impacts of this trend are as follows. According to a study, 18
percent of mobile users are willing to change their handsets every year to newer models
with more features, which is good news for the handset vendors. The other impact is that
while the operators have only limited options to generate additional revenues through
value-added services from wire-line services, the mobile operators have numerous
options to generate non-voice revenues from their customers.
Some examples of value-added services are ring tones download, coloured ring back
tones, talking SMS, mobisodes (a brief video programme episode designed for mobile
17
phone viewing) etc. Moreover, there exists great opportunity for content developers to
develop applications suitable for mobile users like mobile gaming, location based
services etc. On the negative side, there is an increased threat of virus – spread through
mobile data connections and Bluetooth technology – in mobile phones, making them
unusable at times. This is good news for anti-virus solution providers, who will gain from
this trend.
Mergers
Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services. However it must also be noted that this may very well never
happen on account of low telecom penetration.
New Circles
There is a significant number of tier-2 and tier 3 cities that can accommodate more
players we expect aggressive response by the companies to such opportunities as and
when they are created.
Constraints
Some constraints that should be taken into consideration are:
♦ Slow pace of the reform process.
♦ It would be difficult to make in-roads into the semi-rural and rural areas because
of the lack of infrastructure. The service providers have to incur a huge initial
fixed cost to make inroads into this market. Achieving break-even under these
circumstances may prove to be difficult.
♦ The sector requires players with huge financial resources due to the above
mentioned constraint. Upfront entry fees and bank guarantees represent a sizeable
share of initial investments. While the criteria are important, it tends to support
the existing big and older players. Financing these requirements require a little
more liberal approach from the policy side.
♦ Problem of limited spectrum availability and the issue of interconnection charges
between the private and state operators

18
 COMPANY MARKET SHARE

The Top five companies, on the basis of ‘Market Share’ as on 31st January, 2009 are:

1. Bharti Airtel Ltd.

2. Reliance Communications Ltd.
3. Vodafone Essar Ltd.
4. BSNL
5. Idea Cellular + Spice

The Bottom five companies, on the basis of ‘Market Share’ as on 31st January, 2009 are:

1. Aircel Cellular Ltd. + Dishnet

2. Mahanagar Telephone Nigam Ltd. (MTNL)
3. BPL Mobile Communications Ltd.
4. HFCL Infotel Ltd.

19
 5. Shyam Telecom Ltd.

INTRODUCTION

As the sector is open for both private and public players there are huge number of players
in the market which requires a proper picturing of rules and regulation to play a fair
game. India has been very strong in case of rules and regulation; it has created body like
DOT, TRAI, DTS who takes care of the rules and regulation. Apart from them it keeps
issuing policy and act which checks the events happening in the industry. The
government has been issuing policy like Broadband Policy 2004, new telecom
policy1999, National Telecom Policy 1994. There are more agencies like ITU, TDSA,
TCIL, ICSIL, and MCOCA, which helped it regulating their work. With increasing
number of players in market the government and its agencies have to function more
carefully.

GOVERNMENT REGULATION
Department of Telecommunications

Until October 2000, the Department of Telecommunication (DOT) was the authority in
granting licences and service provision. It also operated domestic basic telephone
services throughout India. The policy making functions and the service providing
function were segregated into two different entities during 2000.The two service
providing department of telecom sector were corporatized-the department of telecom

20
 service and the department of telecom operation . The state owned corporation BSNL
took over all service providing functions of these two departments.

National telecom policy, 1994

The new economic policy adopted by the Government aims at improving India's
competitiveness in the global market and rapid growth of exports. Another element of the
new economic policy is attracting foreign direct investment and stimulating domestic
investment. Telecommunication services of world class quality are necessary for the
success of this policy. It is, therefore, necessary to give the highest priority to the
development of telecom services in the country.

Objective

a. The focus of the Telecom Policy shall be telecommunication for all and
telecommunication within the reach of all. This means ensuring the availability of
telephone on demand as early as possible.

b. Another objective will be to achieve universal service covering all villages as early
as possible.

c. The quality of telecom services should be of world standard. Removal of consumer

complaints, dispute resolution and public interface will receive special attention.
The objective will also be to provide widest permissible range of services to meet
the customer's demand at reasonable prices.

d. Taking into account India's size and development, it is necessary to ensure that
India emerges as a major manufacturing base and major exporter of telecom
equipment.

The Telecom Regulatory Authority Of India Act, 1997

21
Powers & functions of the TRAI

a. Recommend the need and timing for introduction of new service provider;

b. Ensure technical compatibility and effective inter-connection between different

service providers;
c. Recommend the terms and conditions of license to a service provider;

d. Regulate arrangement amongst service providers of sharing their revenue derived

from providing telecommunication services;
e. Ensure compliance of terms and conditions of license;
f. Recommend revocation of license for non-compliance of terms and conditions of
license;
g. Lay down and ensure the time period for providing local and long distance circuits
of telecommunication between different service providers;
h. Facilitate competition and promote efficiency in the operation of
telecommunication services so as to facilitate growth in such services;
i. Protect the interest of the consumers of telecommunication service;

j. Monitor the quality of service and conduct the periodical survey of such provided
by the service providers;

k. Inspect the equipment used in the network and recommend the type of equipment to
be used by the service providers;
l. Maintain register of interconnect agreements and of all such other matters as may
be provided in the regulations;
m. Keep register maintained under clause (l) open for inspection to any member of
public on payment of such fee and compliance of such other requirements as may
be provided in the regulations;
n. Settle disputes between service providers;

o. Render advice to the Central Government in the matters relating to the development
of telecommunication technology and any other matter relatable to
22
 telecommunication industry in general;

p. Levy fees and other charges at such rates and in respect of such services as may be
determined by regulations;
q. Ensure effective compliance of universal service obligations;

PerforpPerform such other functions including such administrative and financial functions as may
be entrusted to it by the Central Government or as may be necessary to carry out the
provisions of this Act
New telecom policy, 1999

Objectives and targets of the new telecom policy, 1999

1. 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.

2. 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

3. Encourage development of telecommunication facilities in remote, hilly and tribal

areas of the country.

4. 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
5. Convert PCO's, wherever justified, into Public Teleinfo centers having
multimedia capability like ISDN services, remote database access, government
and community information systems etc.

23
 6. 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
7. Strengthen research and development efforts in the country and provide an
impetus to build world-class manufacturing capabilities
8. Achieve efficiency and transparency in spectrum management
9. Protect defense and security interests of the country
10. Enable Indian Telecom Companies to become truly global players.

Other Government Organizations in the Telecom

Sector
Besides MTNL and BSNL, other public sector undertakings in the telecom sector are ITI
Limited (ITI), Telecommunications Consultants India Limited (TCIL), Intelligent
Communication Systems India Limited (ICSIL) and Millennium Telecom Limited
(MTL). ITI Limited was formed in 1948 for manufacturing a wide range of
equipment, which included electronic switching equipment, transmission equipment
and telephone instruments of various types. TCIL was established in 1978 for providing
know-how in all fields of telecommunications at the global level. The core competence of
TCIL is in communications network projects, software support, switching and
transmission systems, cellular services, rural telecommunications and optical fiber based
backbone network. ICSIL was established in April 1987 for manufacturing computer
based communication systems and equipment. It also provides engineering, technical and
management consultancy services for computers and communication systems in India
and abroad. MTNL was established in February 2000 as a wholly owned subsidiary
of MTNL for providing internet services in the country. It is pursuing the establishment
of broadband internet access for the corporate segment and Voice over Internet Protocol
(VOIP) telephony services throughout India with the use of relevant technologies like
Very Small Aperture Terminals (VSATs).

24
TARGETS SET BY THE GOVERNMENT

1. Network expansion
a. 500 million connections by the year 2010
b. Provision of mobile coverage of 90% geographical area by 2010

2. Rural telephony
a. One phone per two rural households by 2010 (about 80 million rural
connections)
b. Reduce urban-rural digital divide from present 25:1 to 5:1 by 2010

3. Broadband
a. Broadband with minimum speed of 1 mbps
b. Broadband coverage for all secondary & higher secondary schools and
public health care centres by the end of year 2008
c. Broadband coverage for all Grampanchayats by the year 2010

4. Infrastructure Sharing
a. USO subsidy support scheme for shared wireless infrastructure in rural
areas with about 18,000 towers by 2010
b. Increase sharing in urban areas to 70% by 2010

5. Introduction of Spread of IPTV and Mobile TV

a. IPTV in 600 towns by 2010

6. Manufacturing
a. Making India a hub for telecom manufacturing by facilitating more and
more telecom specific SEZs

25
 b. Quadrupling production in 2010

7. Research & Development

a. Pre-eminence of India as a technology solution provider
b. Comprehensive security infrastructure for telecom network
c. Tested infrastructure for enabling interoperability in Next Generation
Network
d. Doubling the telecom equipment R&D by 2010 from present level of 15%

26
 COMPANY PROFILE

Reliance at a Glance

Reliance Group

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest

private sector enterprise, with businesses in the energy and materials value chain. Group's
annual revenues are in excess of US$ 30 billion. The flagship company, Reliance
Industries Limited, is a Fortune Global 500 company and is the largest private sector
company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of
backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals,
petroleum refining and oil and gas exploration and production - to be fully integrated
along the materials and energy value chain.

27
The Group's activities span exploration and production of oil and gas, petroleum refining
and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals),
textiles, retail and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and
fibre producer in the world and among the top five to ten producers in the world in major
petrochemical products.

Major Group Companies are Reliance Industries Limited (including main subsidiaries
Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial
Infrastructure Limited.

Founder’s Profile
"Growth has no limit at Reliance. I keep revising my vision. Only when you can
dream it, you can do it."

About Sh. Dhirubhai Ambani

Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

Few men in history have made as dramatic a contribution to their country’s economic fortunes as did
the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more
enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true genius of
Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men,

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the architect of India’s capital markets, the champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one
lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300
(around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise
into a Rs 60,000 crore colossus—an achievement which earned Reliance a place on the global
Fortune 500 list, the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile
Industries Limited first went public, the Indian stock market was a place patronised by a small club
of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to

participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile
IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be
the start of one of great stories of mutual respect and reciprocal gain in the Indian markets.

Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the greatest growth
stories in corporate history anywhere in the world, and went on to become India’s largest private
sector enterprise.

Throughout this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder
uppermost in mind, in the process making millionaires out of many of the initial investors in the
Reliance stock, and creating one of the world’s largest shareholder families.

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Sh. Dhirubhai Ambani's stamp

On 28th December 2002, Ministry of Communications, Government of India released a

commemorative postage stamp on industrialist and founder of the Reliance Group of
Industries, Shri Dhirubhai Ambani in Mumbai. Issued by the Department of Posts, the stamp
is in the denomination of Rs. 5.

Anil Ambani: Telecom person of the year 2007

His marketing strategy has made millions of Indians happy, they got the best mobile
tariffs in the world-local call costs at 15 paise/minute, and STD call at 40 paise/minute

30
MORADABAD, INDIA: When the VOICE&DATA jury, comprising eminent
professionals from the telecom field, met in Delhi in June to choose the Telecom Person
of the Year 2007, the five-hour selection process was steamy.

The reason was obvious: The telecom sector is growing faster than any other segment and
naturally their CEOs have a lot to crow about. The jury had to select one from three
CEOs, who had made it to the final list through nominations from the industry and the
initial scrutiny. Among the three, one of the main contenders was a young CEO. The jury
decided that he should come back next year to try and win the coveted award. The list
now had two names-both CEOs of two well-known companies. The pivotal difference
between the two: one is an entrepreneur and the other is not so popular, as his credit is
shared among a number of his big daddies.

Following a five-hour closely held, hotly debated discussion, the name was announced:
Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil Ambani joined
Reliance Industries (currently promoted by his brother Mukesh Ambani, following their
split) in 1983 as co-chief executive officer. Forbes ranked him number 104 among the
World's Richest People in 2006. The Ambani family faced criticism when it announced
its ambitious plans to build a countrywide telecom network, as its prior expertise lay in
commodities-textiles and petrochemicals-business only. Apart from that telecom needs a
service-oriented mindset, critics felt. What they did not remember was how the family
had served its millions of shareholders.

Policies in India are made in line with Ambani's vision, says an industry expert. His
business acumen and closeness to politicians assisted him in making it to the Rajya Sabha
in June 2004, as an independent member. Ambani chose to resign voluntarily on March
25, 2006.

The same association with politicos gave him negative returns too when the Mayawati
Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-acre
SEZ.

31
Media sees his aggression when he announces financial results for the Reliance ADA
group of companies, and when he attends the annual general meetings and faces
questions from shareholders. When he meets the press, he has answers to all their
questions. He also remembers to call select journalists by name.

To merchant bankers he, who has already contributed immensely to the financial reforms
of the country, is one of the financial wizards of the world. May be because of his
expertise, he gave up in the race to grab Hutchison Essar stake, after indirectly jacking up
the valuation. His negotiations with the Qualcomm chief are also a folk theory now.

How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What
are his personal and organizational achievements in the recent past?

His path-breaking marketing strategy that was put in by the strongest team of telecom
professionals the country has ever seen has made millions of Indians happy as they got
the best mobile tariffs in the world. The aggression resulted to adding to his already
swollen kitty. Every hour India will be adding around 20,000 new mobile customers and
Reliance Communications over 4,000. When mobile telephony first began in India, a
local call cost Rs 16 per minute; an STD Rs 50; and a call to the US Rs 100 per minute.
With Reliance Communication’s

pioneering price initiative, a local call now costs a mere 15 paise per minute, STD 40
paise, and a call to the US costs less than Rs 2 per minute. The presence of Reliance
Communications is making the competition in India panicky. Global telecom forces will
also shortly start feeling the heat. Ambani has also recently announced his Rs 1,200 crore
buyout of Yipes Holdings.

Achiever's Pride

1) Undertook financial restructuring of Reliance communications

2) To spend Rs 16,000 crore to expand and strengthen network coverage

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3) After expansion, Reliance Communications will have the single largest wireless
network in the world

4) Launched the lowest-cost classic brand handset at Rs 777

5) Subscriber base grew to over 28 mn during last fiscal, registering 60% growth

6) Total Revenue shot up to Rs 14,468 crore, an increase of 34%

7) Net Profit rises to Rs 3,163 crore, an increase of over 600%

8) Revenues of the wireless business increased by 46% to Rs 10,728 crore

9) Broadband achieved revenue growth of 123% to Rs 1,144 crore

10) Market capitalization crossed Rs 100,000 crore

11) Will add 23,000 more towers

12) Telecom services will be available in over 23,000 towns and 600,000 villages

13) Next generation DTH network will be launched before end of the year

Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal,

registering a 60% growth. This makes it one of the top two wireless operators in India

"Economic growth in the future will be indexed to connectivity of millions of enterprise

and individual customers. Over the next few years, we will have over 100 million
customers, making us one of the top 5 telecom players in the world. In four years, we put
up a total of 14,000 towers across the country. This year alone we will add 23,000 more
towers. Our wireless network is currently available in 10,000 towns. By the end of this
year, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said at
the first annual general meeting of Reliance Communications since the re-organization of
the Reliance Group in June 2000

33
"In four years of operations, we invested around Rs 32,000 crore. This year alone we will
invest over Rs 20,000 crore. At the end of this year, we will have covered over 90% of
our population. If Version 1.0 of the Indian telecom story was all about affordability,
Version 2.0 will be about reach.

Network expansion will give us the power to drive the market and stay ahead of the
curve," Ambani adds.

According to Ambani, the financial restructuring of Reliance Communications is the

biggest turnaround story in the history of corporate India. The inherited ownership
structure of Reliance Communications was complex. The reorganization has yielded a
simple, fair, and transparent ownership structure, and given Reliance Communications
100% ownership of all operational and associate companies.

Reliance Communications is now among the three most valuable private sector
companies in India, and the five most valuable telecom companies in Asia. In the current

Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and
strengthen its network coverage across India and the rest of the world.

In addition to organic growth, Reliance Communications will leverage the advantages

derived from this impressive financial platform to explore and pursue any significant
opportunities available in the telecommunications sector. "We are currently evaluating a
number of inorganic opportunities in select international markets to further expand our
footprint," Ambani said.

Reliance Communication’s One India, One Tariff plan allowed millions to connect across
India at just one rupee a minute. The company was the first one to break the Rs 1,000
entry-barrier with the launch of the lowest-cost classic brand handset at Rs 777.

As per its expansion plan, Reliance Communications will have the single largest wireless
network in the world, covering over 900 mn Indians or more than 15% of the global
population. It will cover 23,000 towns or every single Indian habitation with a population

34
of over 1,000. Reliance Communications will cover almost 100% of all rail routes,
providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters
every day. It will also cover almost 100% of all national highways, and 84% of all state
highways, giving millions of users the power to talk, text, surf, play, chat or simply stay
in touch across nearly the entire length of India's 2,00,000-km-long road network.

Having achieved tremendous growth, the main challenge for Reliance Communications is
to improve quality of service and ARPU. Its enterprise business is also not in a position
to compete with the global majors. Stock market valuations may boost the fortunes of an
entrepreneur, but Ambani needs to address the issues faced by the growing mobile
customer base, especially in India, where bureaucracy takes pride in checking the
businessman.

AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance Communications (formerly Reliance Communications Ventures) is one of

India's largest providers of integrated communications services. The company has more
than 80 million customers and serves individual consumers, enterprises, and carriers,
providing wireless, wireline, long distance, voice, data, and internet communications
services through a number of operating subsidiaries. The company sells communications
and digital entertainment products and services through its chain of Reliance Web World
retail outlets. The company's Reliance Infocomm subsidiary provides wireless
communications services throughout India. Reliance Communications is part of the
Reliance - Anil Dhirubhai Ambani Group.

The current network expansion undertaken by Reliance is the largest wireless network
expansion undertaken by any operator across the world.

It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

35
Reliance Communications has a reliable, high-capacity, integrated (both wireless and
wire line) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services — for enterprises as
well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and

networks, truly bringing about a new way of life.

We will leverage our strengths to execute complex global-scale projects to facilitate

leading-edge information and communication services affordable to all individual
consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business
productivity.

We will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally.

36
BRIEF STUDY OF THE ORGANIZATION

Chairman’s profile

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-
2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's
foremost truly integrated telecommunications service provider. With a customer base of
over 36 million including close to one million individual overseas retail customers,
Reliance Communications ranks among the top ten Asian Telecom companies. Its
corporate clientele includes 600 Indian, 250 multinational corporations and over 200
global carriers and owns and operates the world's largest next generation, IP enabled
connectivity infrastructure, comprising over 150,000 kilometers of fiber optic cable
systems in India, USA, Europe, Middle East and the Asia Pacific region.

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D
Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely,
Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural
Resources.

He is also the president of the Dhirubhai Ambani Institute of Information and

Communications Technology,

An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is
credited with pioneering several financial innovations in the Indian capital markets. He
spearheaded the country’s first forays into overseas capital markets with international
public offerings of global depositary receipts, convertibles and bonds.

Under his chairmanship, the constituent companies of the Reliance ADA group have
raised nearly US$ 3 billion from global financial markets in a period of less than 15
months.

Shri Ambani has been associated with a number of prestigious academic institutions in
India and abroad.

37
He is currently a member of:

• Wharton Board of Overseers, The Wharton School, USA

• Board of Governors, Indian Institute of Management (IIM), Ahmedabad
• Board of Governors, Indian Institute of Technology (IIT), Kanpur
• Executive Board, Indian School of Business (ISB), Hyderabad

In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha –
Upper House, Parliament of India, a position he chose to resign voluntarily on March 25,
2006.

Select Awards and Achievements

• Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India –
TNS, December 2006
• Voted the ‘Best role model’ among business leaders in the biannual Mood of the
Nation poll conducted by India Today magazine, August 2006
• Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards
• Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management
Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the establishment
of Reliance as a global leader in many of its business areas, December 2001
• Selected by Asiaweek magazine for its list of 'Leaders of the Millennium in
Business and Finance' and was introduced as the only 'new hero' in Business and
Finance from India, June 1999.

A Dream Come True

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would
have access to affordable means of information and communication. Dhirubhai, who single-handedly
built India’s largest private sector company virtually from scratch, had stated as early as 1999:
38
“Make the tools of information and communication available to people at an affordable cost. They
will overcome the handicaps of illiteracy and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started
laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was
commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though
sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and
convergent (voice, data and video) digital network. It is capable of delivering a range of services
spanning the entire infocomm (information and communication) value chain, including infrastructure
and services — for enterprises as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates and networks, truly
bringing about a new way of life.

Vision
“We will leverage our strengths to execute complex global-scale projects to facilitate
leading-edge information and communication services affordable to all individual
consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business
productivity.

We will also generate value for our capabilities beyond Indian borders and enable
millions of India's knowledge workers to deliver their services globally.”

39
 BOARD OF DIRECTORS

• Shri Anil D. Ambani - Chairman

• Prof. J Ramachandran

• Shri S.P. Talwar

• Shri Deepak Shourie

• Shri A.K.Purwar

40
 CHAIRMAN

President President President

(Personnel Business) (Enterprises Business) (Home Business)

Senior
V.P.

V.P.

G.M.

D.G.M.

A.G.M.

Senior
Manager

Manager

Dupty Asst. Management

Manager Manager Trainee

41
 ORGAZIATION STRUCTURE OF PERSONNEL BUSINESS

CIRCLE HEAD

SALES HEAD CSD HEAD INTEGRATED BUSINESS HR HEAD

MARKETING COMMERICAL
HEAD HEAD

LEAD LEAD LEAD LEAD LEAD

SUPPORT TEAM SUPPORT TEAM SUPPORT TEAM SUPPORT SUPPORT

TEAM TEAM

42
 ORGANIZATION STRUCTURE CLUSTER

CLUSTER HEAD

SALES LEAD CSD LEAD COMMERICAL LEAD

PREPAID /POST PAID

SUPPORT SUPPORT SUPPORT

43
 HR STRUCTURE

HR HEAD

LEAD -TALENT LEAD -TALENT LEAD -TALENT

ACQUISITION MANAGEMENT DEVELOPMENT

SUPPORT- TALENT SUPPORT-TALENT SUPPORT-TALENT

ACQUISITION MANAGEMENT DEVELOPMENT

44
 TRENDS AND FORECAST
INTRODUCTION
The recent development in information technology and science has made a great
difference in telecom industry by increasing its efficiency and opening doors to major
developments of sector. CDMA, GSM, 2G&3G SPECTRUMS, WIMAX etc are some of
the technology which have discussed. Both development and problem walks hand in
hand, with increasing development the industry is facing huge challenges and problems.
The industry will have to work more efficiently in order to overcome the problems. The
industry in total has got a great future and has a lot of untapped potential market.

TECHNOLOGIES
Technology is very much related to the way we conduct business. Today everything that
we talk about in business, like, the way we conduct business, the way we do things, the
way we deliver to the customers, etc. is using some form of technology. Therefore, role
of technology cannot be defined because it is a mindset and it happens over a period of
time.
The various technologies used by the Telecom Service Providers are as follows:

GSM (Global System for Mobile Communication)

GSM, first introduced in 1991, is the leading digital cellular system. It uses narrowband
TDMA (Time Division Multiple Access). Eight simultaneous calls can occupy the same
radio frequency. GSM simplifies data transmission to allow laptop and palmtop
computers to be connected to GSM phones. It provides integrated voice mail, high-speed
data, fax, paging and Short Message Services (SMS) capabilities, as well as secure
communications. It offers the best voice quality of any current digital wireless standard.

45
Originally a European standard for digital mobile telephony, GSM has become the
world's most widely used mobile system and is now being used in more than 100
countries. GSM networks operate on the 900MHz, 1800MHz and 1900MHz wavebands
all over the world.

GPRS (General packet radio service)

GPRS is a packet oriented mobile data service available to users of the 2G cellular
communication systems global system for mobile communications (GSM), as well as in
the 3G systems. In the 2G systems, GPRS provides data rates of 56-114 kbit/s.
GPRS data transfer is typically charged per megabyte of traffic transferred, while data
communication via traditional circuit switching is billed per minute of connection time,
independent of whether the user actually is using the capacity or is in an idle state. GPRS
is a best-effort packet switched service, as opposed to circuit switching, where a certain
quality of service (QoS) is guaranteed during the connection for non-mobile users.
2G cellular systems combined with GPRS are often described as 2.5G, that is, a
technology between the second (2G) and third (3G) generations of mobile telephony. It
provides moderate speed data transfer, by using unused time division multiple access
(TDMA) channels in, for example, the GSM system. Originally there was some thought
to extend GPRS to cover other standards, but instead those networks are being converted
to use the GSM standard, so that GSM is the only kind of network where GPRS is in use.
GPRS is integrated into GSM Release 97 and newer releases. It was originally
standardized by European Telecommunications Standards Institute (ETSI), but now by
the 3rd Generation Partnership Project (3GPP).

EDGE (Enhanced Data rates for GSM Evolution)

EDGE, Enhanced GPRS (EGPRS), or IMT Single Carrier (IMT-SC) is a backward-
compatible digital mobile phone technology that allows improved data transmission rates,
as an extension on top of standard GSM. EDGE is considered a 3G radio technology and
is part of ITU's 3G definition,[1]. EDGE was deployed on GSM networks beginning in
2003— initially by Cingular (now AT&T) in the United States.

46
EDGE is implemented as a bolt-on enhancement for 2G and 2.5G GSM and GPRS
networks, making it easier for existing GSM carriers to upgrade to it. EDGE is a superset
to GPRS and can function on any network with GPRS deployed on it, provided the
carrier implements the necessary upgrade.
EDGE requires no hardware or software changes to be made in GSM core networks.
EDGE compatible transceiver units must be installed and the base station subsystem
needs to be upgraded to support EDGE. If the operator already has this in place, which is
often the case today, the network can be upgraded to EDGE by activating an optional
software feature. Today EDGE is supported by all major chip vendors for both GSM and
WCDMA/HSPA.

CDMA (Code division multiple access)

CDMA is a channel access method utilized by various radio communication
technologies. It should not be confused with the mobile phone standards called cdmaOne
and CDMA2000 (which are often referred to as simply "CDMA"), which use CDMA as
an underlying channel access method.
One of the basic concepts in data communication is the idea of allowing several
transmitters to send information simultaneously over a single communication channel.
This allows several users to share a bandwidth of frequencies. This concept is called
multiplexing. CDMA employs spread-spectrum technology and a special coding scheme
(where each transmitter is assigned a code) to allow multiple users to be multiplexed over
the same physical channel. By contrast, time division multiple access (TDMA) divides
access by time, while frequency-division multiple access (FDMA) divides it by
frequency. CDMA is a form of "spread-spectrum" signaling, since the modulated coded
signal has a much higher data bandwidth than the data being communicated.

HSDPA (High-Speed Downlink Packet Access)

HSDPA is a 3G (third generation) mobile telephony communications protocol in the
High-Speed Packet Access (HSPA) family, which allows networks based on Universal
Mobile Telecommunications System (UMTS) to have higher data transfer speeds and
capacity. Current HSDPA deployments support down-link speeds of 1.8, 3.6, 7.2 and
47
14.4 Mbit/s. Further speed increases are available with HSPA+, which provides speeds of
up to 42 Mbit/s downlink
The High-Speed Downlink Shared Channel (HS-DSCH) lacks two basic features of other
W- CDMA channels—variable spreading factor and fast power control. Instead, it
delivers the improved downlink performance using adaptive modulation and coding
(AMC), fast packet scheduling at the base station, and fast retransmissions from the base
station, known as hybrid automatic repeat-request (HARQ).

WLL (Wireless Local Loop)

Wireless local loop (WLL), is a term for the use of a wireless communications link as the
"last mile / first mile" connection for delivering plain old telephone service (POTS)
and/or broadband Internet to telecommunications customers. Various types of WLL
systems and technologies exist.
WLL (Wireless in Local Loop) is a communication system that connects subscribers to
the public Switched Telephone Network (PSTN) using radio frequency signals as a
substitute for conventional wires for all or part of the connection between the subscriber
and the telephone exchange. It is useful for those subscribers who are located in pockets
where immediate telephone connections cannot be provided due to lack of underground
cable network but radio coverage is available.
Other terms for this type of access include Broadband Wireless Access (BWA), Radio In
The Loop (RITL), Fixed-Radio Access (FRA) and Fixed Wireless Access (FWA).

WiMax
WiMax (Worldwide Interoperability for Microwave Access) is a technology designed to
give people high speed access to the net over relatively long distances. A typical WiMax
system could theoretically give users in an area three to 10 kilometers wide a 40 Mbps
Connection to the net.
This technology already deployed in some urban centers’ like Chennai (Madras) and
Mumbai (Bombay) would overcome the need to lay expensive cables or fibre optics to
villages.

48
At the moment there is a wired backbone throughout India but many villages are 30 to
40km away from the nearest connection. Wimax services can overcome that. One or two
WiMax base stations are enough to connect three or four villages.
The government telecoms operator BSNL is also in the process of rolling out some
WiMax services. But it is still expensive and at the moment is aimed squarely at large
businesses that need a quick-fix solution to broadband access.

3G TECHNOLOGIES
3G or Third Generation technology is a convergence of various Second Generation
telecommunication systems. The technology is intended for SMARTPHONES -
multimedia cell phones. Video broadcasting and other e-commerce services such as,
stock transactions and e-learning will now be made possible much faster. It offers 3 Mbps
speed for downloading, which is very high as compared to that of the 2G technology. The
3G technology provides for internet surfing, downloading, e-mail attachment
downloading, audio-video conferencing, fax services and many other broadband
applications.
3G Technology was implemented in Japan for the first time in the world. Today the
technology is serving 25 countries over more than 60 networks having its existence in
Asia, Europe and USA. Video conferencing has been a major factor in the success of the
technology.

3G Technology in Indian Telecom Industry

From the time of telegraphs Indian telecom sector has witnessed an immense growth and
has diversified into various segments like, Fixed Line Telephony, mobile telephony,
GSM, CDMA, WLL etc. The telecom industry is growing at a fast pace introducing
newer technologies. Even the network operators and handset providers are also coming
up with newer value added services and advanced technology cell phones with
multimedia applications. Now it's time to welcome the much-awaited 3G Technology.
Bharat Sanchar Nigam Limited is all set to launch the technology by December 2007.
Not only the network providers but also the handset providers in India are waiting eagerly

49
for the launch of 3G to earn very high revenues from the value added services provided
by the technology.
The technology is initially being launched on CDMA platform. The technology is being
tested over various platforms and cellular networks.

4G TECHNOLOGY
4G (also known as Beyond 3G), an abbreviation for Fourth-Generation, is a term used to
describe the next complete evolution in wireless communications. A 4G system will be
able to provide a comprehensive IP solution where voice, data and streamed multimedia
can be given to users on an "Anytime, Anywhere" basis, and at higher data rates than
previous generations.
As the second generation was a total replacement of the first generation networks and
handsets, and the third generation was a total replacement of second generation networks
and handsets, so too the fourth generation cannot be an incremental evolution of current
3G technologies, but rather the total replacement of the current 3G networks and
handsets. The international telecommunications regulatory and standardization bodies are
working for commercial deployment of 4G networks roughly in the 2012-2015 time
scale. At that point it is predicted that even with current evolutions of third generation 3G
networks, these will tend to be congested.
There is no formal definition for what 4G is; however, there are certain objectives that are
projected for 4G. These objectives include: that 4G will be a fully IP-based integrated
system. 4G will be capable of providing between 100 Mbit/s and 1 Gbit/s speeds both
indoors and outdoors, with premium quality and high security.
Many companies have taken self-serving definitions and distortions about 4G to suggest
they have 4G already in existence today, such as several early trials and launches ofWi -
max. Other companies have made prototype systems calling those 4G. While it is
possible that some currently demonstrated technologies may become part of 4G, until the
4G standard or standards have been defined, it is impossible for any company currently to
provide with any certainty wireless solutions that could be called 4G cellular networks
that would conform to the eventual international standards for 4G. These confusing

50
statements around "existing" 4G have served to confuse investors and analysts about the
wireless industry.

HOW IS 3G DIFFERENT FROM 2G AND 4G

While 2G stands for second-generation wireless telephone technology, 1G networks used
are analog, 2G networks are digital and 3G (third-generation) technology is used to
enhance mobile phone standards.
3G helps to simultaneously transfer both voice data (a telephone call) and non-voice data
(such as downloading information, exchanging e-mail, and instant messaging. The
highlight of 3G is video telephony. 4G technology stands to be the future standard of
wireless devices.
Currently, Japanese company NTT Do Como and Samsung are testing 4G
communication. 3G services will enable video broadcast and data-intensive services such
as stock transactions, e-learning and telemedicine through wireless communications.
All telecom operators are waiting to launch 3G in India to cash in on revenues by
providing high-end services to customers, which are voice data and video enabled. India
lags behind many Asian countries in introducing 3G services.

51
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52
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30 DAY 1.10
Rs. 510 TALK TIME of Rs. 555 (off net)
RS. 525 467.25 30 DAY RS. 0.40 RS. 1.00
RS. 650 578.50 30 DAY FREE RS. 1.00
Rs. 195 Local on-net mobile unlimited FREE (validity 30 days)
Rs. 496 Local & STD on-net mobile unlimited FREE (validity 30
Rs. 35 days)
STVs
Rs. 79 All STD@ Rs. 1 per minute (validity 30 days)
Rs. 49 All Local@ Rs. 0.50/min and all STD@ Rs.1/min (valid. 30
Rs. 99 days)
Rs. 98 On-net Local@33PAISE, Off-Net Local@49 Paise (valid. 30
days)
On-net Local@33PAISE, Off-Net Local@Paise, all STD@99
Paise (30D)
On-net Local FREE between 10PM to 8AM& other
local@50 paise (30D)

Rs. 250 FREEDOM TARIFF, TALKTIME Rs. 147.5 AND

VALIDITY 30 DAYS
RCVs
Rs. 888
F.T, TALKTIME RS. 888 AND VALI. OF 8 MONTHS

Rs. 399 Talk Time 175/ & Local On-net Unlimited FREE ( 30 days)
UN-
Rs. 499 Local Reliance Mobile & Reliance Smart Unlimited FREE
LIMITED
( 30 days)
Rs. 533
Talk Time Rs. 399.37 & Local On-net FREE B/W 11pm to
6am, ( 30 D)
53

E-
SMS Rs. 49 500 LOCAL SMS FREE & VALIDITY 30 DAYS
 RELIANCE MOBILE HAND-SET

MOBILE CUSTOMER PRICE RETAILAR PRICE

RD LG 3000 1199/- 1165/-

RD LG 3500 1299/- 1265/-

RD LG 3600 1799/- 1690/-

RD LG 6100 2699/- 2540/-

54
SWOT ANALISIS OF RELIANCE COMMUNICATION

Strengths: attributes of the organization those are helpful to achieving the objective.
Weaknesses: attributes of the organization those are harmful to achieving the objective.
Opportunities: external conditions those are helpful to achieving the objective.
Threats: external conditions that is harmful to achieving the objective

Strength Weakness
• Commission Structure • Distribution problem
• Fast Activation Process • Technical problem in handsets
• Network • Lack of Competitive Strength
• Connectivity • Low customer retention power
• Data GPRS
• Employee with experience
• Strong brand

Opportunity Threat
• Preference of GSM over CDMA • Government policies
• New Special offers • New Entrants
• Rural Telephony • New Technology can change the
• Image makeover to capture new market dynamics
market • New plan launch by competitors
• Dissatisfied Competitors` • Increase competitors in distributor
customer and retailers commission

55
Perceptual Map
Perceptual mapping of different service provider in Moradabadregion.

CONNECTIVITY/ NETWORK

II* I*
Reliance CDMA
Tata Indicom

IDEA Airtel
V.A.S. ACTIVATION

VODAFONE Reliance GSM

BSNL Aircel
III
* IV*

VOICE/
CALL DROP
PROBLEM

*QUADRANTS
According to survey, Ist quadrant show that Tata Indicom is 2nd in connectivity and
activation, Airtel have greater activation process. IInd show that Reliance CDMA is 1st
in terms of connectivity and V.A.S. of Idea greatly used by customers. IIIrd show that
Vodafone provide good V.A.S. but at the same time they face voice/call drop problem,
BSNL face this problem mostly in evening. IVth show that Reliance GSM and Aircel as
they newly launched have great activation pace but lacking because of voice/call drop
problem. Company should adopt integrated marketing (communication) mix to properly
promote the product and increase sales.
56
PROBLEM BEING FACED

• Lack of communication between retailers and distributor

• Lack of improper distribution channel

• Competitors

• All retailers are not aware of new scheme of RCOM

• Lack of sales promotion and advertisement

• Retailer doesn’t get claim at proper time

WHAT DOES COMPANY EXPECT TO DO BY SOLVING

THE PROBLEM

• Customer Satisfaction

• Retailer Satisfaction

• Increase in Sale

• Sales Promotion

• Proper Distribution Channel

57
 METHODOLOGY

Survey Design:
The study is a Exploratory research study and I used Strata Sampling (Non-Probability
Sampling) to serve the purpose. For the purpose of present study a related sample of
population was selected on the basis of convenience.

Survey:
Survey was made in Moradabad Region to get primary data.

Sample size and Design:

A sample of 150 people (Retailers) was taken on the basis of convenience.

Research Period:
Research work is carried for 5 to 6 weeks.

Research Instrument:
This work is carried out through self administered questionnaires. The questions
included were open ended, dichotomous and offered multiple choices.

Data collection:
The data is collected for the purpose of study.

Primary Data:
The data has been collected from responded with the help on structure on questioner.

58
Secondary Source:
The secondary data collected from Internet And Company.

Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical technique. The
technique that we have used is bar graph , pie charts etc.

59
 DATA ANALYSIS & INTERPRETATION
Data interpretation of Retailer’s Survey
Age group – Tabulating in % the age group of customer visit:

Age Group Percentage (%)

<18 2
18-25 35
25-35 50
35-45 10
>45 3

Out of 150 people surveyed, 50% belongs to 25-35 age group, 35% belongs to 18-25 age
group, 10% belongs to 35-45 age group, and rest 5% belong to less than 18 or greater
than 45.

Percentage of segment mostly preferred by customers as per retailers:

60
Out of 150 retailers, they sell both the segment, but GSM customer is more than the
CDMA.

Percentage of Connection mostly preferred by customers as per retailers:

Prepaid connection is mostly preferred by the customer as they provide them flexibility
as compare to Postpaid.

Best Starter Kit:

Life Time starter kit captured the entire market, customer prefer life time connection.

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Best STD Tariff Rate:
Re.1 STD Rate is the best rate which is provided by all company without special voucher.

Best Local Tariff Rate:

As per survey, 10paise & 33paise rate mostly prefer by the customer, then 50paise,
60paise, 40paise etc.

Best STV Connection Pack:

48% people prefer Local low Tariff, 30% prefer Local+STD low Tariff, 15% prefer STD
low Tariff, and rest 7% prefer Local unlimited free on net.
Best VAS facility Provider:

62
In term of VAS Airtel is No.1, then Idea, BSNL, Reliance

Best SMS Pack:

Generally, customer prefer 1000 local SMS free these are mostly students.

Satisfaction with the Service Providers:

63
40% people are satisfied with the service given by the company, then 30% people
complaint poor customer care, signals/network.

Highest Margin Provider:

Aircel provide highest margin of 4%, 3% provide by Airtel & Idea.

Number of Connection sale per month:

64
 Sales
Sales
Above
31
24 figure
20
shows
12.5 12.5
that
31%
2-5 connection 5-10 connection 10-15 15-25 >25 connection
connection connection

retailers sell 2-5 connection per month which is mostly sell Aircel, Reliance GSM, 24%
sell 5-10 connection which is Idea, BSNL,12.5% sell 10-15 connection which is Airtel,
20% sell 15-25 connection which is Vodaphone, 12.5% sell >25 connection which sell
ALL.

ANALYSIS AND FINDINGS

65
Retailers Finding
Services provided by Retailers: -
All the retailers are dealing in all services i.e. providing Recharge Voucher, SIM, and
Tariff Voucher of all the cellular service companies present in Moradabad. Also most of
them provide only pre-paid connection.

Satisfaction: -
Most of the retailers i.e. around 74% of respondents are satisfied with RCOMM brand,
10% of them push RCOMM brand to the customer and rest 16% retailers are not satisfied
with RCOMM brand due to claim pending and the distributor. The retailers don’t get
schemes communicated in time by distributor and distributor does not provide RCV &
E-Top properly.

Problems: -
Around 15% of the respondents said that there is network problem with RCOMM
(GSM), on the other hand they found its competitors viz. Airtel, BSNL, network
connectivity of very good to good level.
Around 20% retailers which are distributor projected problem with distributors. They
don’t get schemes communicated in time by distributor and distributor does not provide
RCV & E-Top.

Support from company: -

Most of the retailers ensnared that they are supported by the companies’ personnel &
companies’ helpline

66
LIMITATIONS

♦ Every study conducted may have certain shortcomings and there may be a
possibility of some error in my report also.

♦ As whole of my project and my findings are based on the information gather

through survey fact sheet, hence there might be a possibility that respondent may
have given wrong or partially correct information.

♦ The research was conducted in limited area

♦ Less time was major constraint

♦ The respondent were limited so cannot be treated as a whole population

67
 CONCLUSION AND RECOMMENDATIONS

Indian economy is an emerging one and is growing very fast at the average GDP rate 8-
9% so in this emerging market competition level among telecommunication services
provides new players are coming who will necessarily intensify the competition. New
products and new schemes are being offered by the telecom service providers. The need
for large information capacity has grown tremendously due to the demand of real time
information. Telecommunication has now become a major information transmission
system and telecom has undoubtedly emerged as the most important industry in India.
Indian telecom companies are putting in their best offer to rope in major telecom
operators of the world e.g. Vodafone, Aircel and MTN etc. are playing their role in
synergy with the operation of the Indian companies. Process of acquisition and merger
are in process and future will be only for those companies who have an edge over others
in the field. Service provided and the better quality of network etc. is provided at
affordable cost. In this process of competition it is assumed that only those companies
will survive who adopt suitable market strategy and technology innovation and up
gradation to suit the aspiration and demand of the consumer.

RCOM cellular ltd. an Anil Ambani Group of companies is very fast catching up with the
market by providing cheaper calling rates. The market strategies adopted by its
executives are bearing fruits. But this is not a thing for self contentment as the survey
reveals that in network, service and distributor, its place is very far behind to other
competitors viz. Airtel, BSNL, and Tata indicom etc. so to withstand the competition
resources mobilization and technological innovation on the part of cos. To upgrade its
quality of network and services is urgently called for. Market access and growth is alright
but the improvement of quality on the above counts is necessity of the time.

68
Suggestions

On the basis of extensive study and research, here are some recommendation and
suggestion which may help the company to market the product and service more
profitability and increase its share in the Telecom market.

SALES PROMOTION

Cash discount
Premiums
Appointment of sale promoter
Financial schemes

OCCASIONAL DISCOUNT
The company may go for occasional discount offers or price off from time to time
specially during any festival. Off season discount may also prove helpful to check
fluctuating sales.

PRODUCT QUALITY AND TECHNICAL FEATURES

As for as some hand set mobile product quality is concerned, there is an urgent need of
technical up gradation of Reliance mobile product line. It would be beneficial for
company to launch some colors mobile hand set with the some added feature and
minimum price.

69
APPENDICES:

QUESTIONNAIRE
Name of outlet:
Proprietor:
Contact no.:
Area/market:

1: What your sell:

CDMA GSM both

2 As per you which is the best segment

Pre-paid Post-Paid

3. How many companies are you deal with?

Airtel Idea Vodafone Aircel Virgin
Reliance Tata Indicom BSNL

4 What Age group of Customer’s visit you most?

13-18 19-21 22-25 26-29 30-35 36-40
>40

5. Which is the highest selling starter kit?

Life Time 1 Year 6 Months 2 Years
Other (Pls specify)______________

70
6. Best Tariff for Local Calls is
0.10 P 0.20P 0.30P 0.40P 0.50P Re. 1

7. As per you, which is the best STD Tariff

Rs 1.50 Re 1 0.99P 0.50P 0.30P

8. Which type of STV Sells most in your Market

Local Low Tariff STD Low Tariff ILD Low Tariff
Local+STD Low Tariff Local+STD+ILD Low Tariff
Local Unlimited Free STD Unlimited Free

9. Which is the best VAS Service Provider

Airtel Idea Vodafone Aircel Virgin
Reliance Tata Indicom BSNL

10. What do you thing in VAS can be sold most

Caller tunes Internet Infopacks Messenger Packs
Map Guide Video Clips Ring tones Wallpaper/Pictures
Note: Stock Market, Astrology, Jokes, News, Cricket Update, Movies, Doctor on call,
Flowers, Greetings, Mobile Taxis, Railway Reservations etc. Fall under INFOPACKS
11. Which is the best selling SMS Pack?
100-999 Local SMS Free 1000 Local SMS Free 2000 Local SMS Free
100-300 STD SMS Free 301-500 STD SMS Free 501-1000 STD SMS Free

Both
Specify Offers

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

71
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
______

12. Which is the Best STV Connection Pack?

Friends Jodi Business Family Family and Friends

13. Voice Breaks/Call Drop is a problem?

Yes No

14. Which Company has maximum Call Drops/Voice Breaks?

Airtel Idea Vodafone Aircel Virgin
Reliance Tata Indicom BSNL

15. Considering what a customer take a handset

Living Standards Status Usage Value for Money
Peer Group
16. What are the important handset features
FM/Radio/MP3 Player Camera/Mega Pixels Blue Tooth
Video Streaming Internet/Wi-fi Good/Long Battery Life
LCD/Touch Screen Dual SIM
Others (Pls Specify)___________________________________________________

17. What are the Important Accessories with a Handset

Headphone/Blue Tooth Headphone Data Cable/CD
Memory/SD Card Car Charger
USB Play Back Option/Blue Tooth Sterio Connector
Others (Pls Specify)___________________________________________________

18. What can be done in order to be more Customer Oriented/innovation oriented?

72
Recharging Options to Customer
Segment Product and Services as per usage
M-Commerce/Mobile Vault
Digital ID Proofs
Finger Print Identifications
Chiped Info of Customer (DL, Passport, Credit Cards, Social Security Card etc)
3DGraphics/communicator
Blue tooth game players

19. What is the Average Margin offered to you by Companies?

1% 1.5% 2% 2.5% 3% 3.5%
4% 4.5% 5%

20. Which Company Provides you with the highest margin

Airtel Idea Vodafone Aircel Virgin
Reliance Tata Indicom BSNL

21. What is the most important for you

Service Products Distribution Trade Relations

22. What is the highest number of days of credit in trade offered by your distributor?
2 days 3 days 4 days 5 days 7 days 15 days
>15 days

23. What is the Average sales per day

2-5 5-10 10-15 15-20 20-25 >25

24. What were the different schemes by different service providers of which you were a
part?

Scheme Details

73
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
___

BIBLIOGRAPHY
BOOKS:

Kotler, Philip. Marketing Management. Prentice Hall of India Pvt. Ltd.,

A.Nags .marketing strategy.
Malhotra.K.Naresh. Marketing Research. Prentice Hall of India Pvt. Ltd.,

MAGAZINE

Business Today
4P’s
Business World

NEWSPAPERS

Economic Times
Business Line

WEBSITE:

www.google.com
www.Reliancecommunication.com
www.Reliancecommunication.com/AboutDheruBhai.htm
www.Reliancecommunication.com/businessofreliance

74
The relevant information from the internal source of the organization.

75