Counter Attack of Reliance Scheme On Airtel, Idea, Vodafone, BSNL and Tata Indicom"

Counter Attack of Reliance Scheme
On Airtel, Idea, Vodafone, Bsnl And Tata

Indicom”
With Reference to
Reliance Communication
Submitted in the partial fulfillment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
PROF. SONU GUPTA.
SUBMITTED BY
DAVE DHAVALKUMAR.(16)
PARMAR PRIYANKA. (122)
Submitted to:
S. K. Patel Institute of Management and Computer Studies

(A Constituent of Kadi Sarva Vishwa Vidhyalaya )
Reliance Communication Page 1

PREFACE
In the study of Management, is a vital role of making and analyzing different project reports with
their importance parameters. As students of MBA, we got this golden opportunity of preparing
the Grand Research Report on “counter attack of reliance communication on Airtel, Idea,
Vodafone, Tata Indicom, Bsnl”. Seeking this project we have analyzed that customers has the
different perceptions regarding the different schemes of the company.
As a part of the program of MBA syllabus we choose ‘Reliance Communication’ for grand
project because, its management, administration, co-operation with societies and employees and
price policy is very well. ‘Reliance Communication’ is a well-known name in the
telecommunication industry.
Thus as a part of our study, we have made this project report by concentrating on awareness of
mobile users regarding different schemes provided by telecom companies and their satisfaction
level.

ACKNOWLEDGEMENT
As we know, theoretical knowledge is of no use unless and until we know how practically the
things work. Hence, MBA is expected to know both, the theoretical as well as the practical
aspects of business.
We are thankful to S.K. PATEL INSTITUTE. to providing us this golden opportunity. We are
also thankful to our Project Guide Prof. Sonu Gupta who gave full support and encouraged us
for preparing this report.
We are also thankful to ‘Reliance Communication’ for granting permission for our project. We
are also very thankful to Mr. Sarav Nagori. for all his support through the completing project .
And finally thanks for all the employees of ‘Reliance Communication’ who have helped us in
completing our project successfully.
We are also thankful to Our Parents who helped us a lot in our study by way of providing us a
moral support.
Dave DhavalKumar (16)
Parmar Priyanka (122)

CERTIFICATE
THIS IS TO CERTIFY THAT Mr. DHAVALKUMAR DAVE & Ms. PRIYANKA PARMAR
OF S.K.PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES,
GANDHINAGAR HAVE SUBMITTED THEIR GRAND PROJECT TITLED “ COUNTER
ATTACK OF RELIANCE SCHEMES ON AIRTEL, IDEA, VODAFONE, BSNL AND
TATA INDICOM” IN THE YEAR 2009-10 IN PARTIAL FULFILLMENT OF OF KADI
SERVA VISHWAVIDYALAYA REQUIREMENTS FOR THE AWARD OF THE TITLE OF
MASTER OF BUSINESS ADMINISTRATION.
PROF. SONU V GUPTA PROF. PRAKASH CHAWLA
DIRECTOR & PROJECT GUIDE CO-ORDINATOR
DATE: / / 2010
PLACE: GANDHINAGAR

DECLARATION
WE, HEREBY, DECLARE THAT THE MINOR CAPSTONE PROJECT

TITLED “COUNTER ATTACK OF RELIANCE SCHEMES ON AIRTEL, IDEA,
VODAFONE, BSNL AND TATA INDICOM” IS ORIGINAL TO THE BEST OF OUR
KNOWLEDGE & HAS NOT BEEN PUBLISHED ELSEWHERE. THIS IS FOR THE
PURPOSE OF PARTIAL FULFILLMENT OF KADI SERVA VISHWAVIDYALAYA
REQUIREMENTS FOR THE AWARD OF THE TITLE OF MASTER OF BUSINESS OF
ADMINISTRATION, ONLY.
SUBMITTED BY: SIGNATURE:
DAVE DHAVALKUMAR (16)
PARMAR PRIYANKA (122)

EXECUTIVE SUMMARY
These days’ organizations are looking forward to obtain competitive edge over their competitors
through highly developed employee skills, distinctive organizational cultures, management
processes and systems which are in contrast to traditional emphasis on transferable resources
such as equipment that can be purchased any time by the competitors.
In RELIANCE also much work is done to develop the Marketing competencies so as to have
better results. In this context a part from the various departments the Marketing sales department
has got a crucial role to play.
In our study we have analysed the counter attack of reliance communication with competitior.
For this we have to go to different Retailers, mobile users and find out what actually they think
of the services given by the company.
Similarly as a part of our schedule, we have not only analyzed counter attack of reliance
communication but also got a chance to meet different retailers and know what is the stand of
reliance infront of its competitors and what are the problems they are facing and how we can
solve their problems. we also analyzed the how communication flow from retailer to consumer.
Thus the task was not only restricted in the purview of interaction with the retailers but also
providing an insight about understanding the channel distribution.
Thus the induction program followed by the associate manual not only makes the employees
familiar with the company but also make them enthusiastic to face challenges and motivate to
work for the growth of the organization.

The second part consists of data and their analysis, collected through a survey done on 100
people. It covers the topic “counter attack of reliance communication with competitor”. The
data collected has been well organized and presented. Hope the research findings and
conclusions will be of use. It has also covered why people are not happy with the service
provided by the salesman. The advisors can take further steps to approach more and more people
and indulge them for taking their advices.
The whole task was manual and interactive, giving us a chance to have a word with the
customers.

Introduction of project:

Our minor subject is marketing and our project’s focus will be in the area of
telecom sector and our topic is “Counter attack of Reliance
Communication on Airtel, Idea, Vodafone,Tata Indicom, Bsnl”.
The project is mostly focused on the different schemes provided by the telecom companies. And
more focuses on the how it would provide benefits to the customers.
Rationale for selecting this project in telecom sector:
 Today the Indian telecommunications network with over 375 Million subscribers is
second largest network in the world after China. India is also the fastest growing
telecom market in the world with an addition of 9- 10 million monthly subscribers.
 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 project is selected by us because now a days the competition prevailing

in the Telecom industry is very high. Different schemes provided by the
different companies are somewhat similar in nature but which scheme
provide more benefit in terms of money & satisfaction from the particular
scheme.
 So we wish to study the various schemes outcomes with respect to the

customers perception.
Expected Contribution
1. To study the customers perception regarding various schemes.

2. To find the loyal customers enjoying regular benefits of different
schemes.

INDUSTRY OVERVIEW

Overview Of Telecom Industry
Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth
and diversification. Starting from telegraphic 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.
Telecommunications in India
For the past decade or so, telecommunication activities have gained momentum in India.
Efforts have been made from both governmental and non-governmental platforms to enhance the
infrastructure. The idea is to help modern telecommunication technologies to serve all segments
of India’s culturally diverse society, and to transform it into a country of technologically aware
people.
History of Indian Telecommunications

Year
1851- First operational land lines were laid by the government near Calcutta
 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.
 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
About Telecommunication Industry

 Today the Indian telecommunications network with over 375 Million subscribers is
second largest network in the world after China. India is also the fastest growing
telecom market in the world with an addition of 9- 10 million monthly subscribers.

 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.
 Driven by rising income levels and favorable demographics, India is poised to at

least double its GDP in nominal terms from current levels by FY 2010, as stated in
one of the recent reports released by Merrill Lynch.
 This era of rapid economic growth has been accompanied by exponential growth in
the telecom sector, particularly on the wireless side.
 India has reached a wireless penetration of 8.3% in FY 2006, and its mobile base has
increased at a compounded annual growth rate of 85% over the last seven years.
 With increasing network coverage and affordability this growth is expected to

continue in the medium term.
 With about 20.93 million mobile and broadband & telephone customers on March 31,
2006, the Company is the largest private integrated telecom player in India
 It has invested approximately Rs 215 billion in the telecom sector and had annual
revenue of Rs. 117 billion in the year under review.
 The Company has a market capitalization of over Rs. 760billion and is among the top
10 listed entities in India.
Introduction
 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.
 The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million
in FY 2004-2005. In the last 3 years, two out of every three new telephone
subscribers were wireless subscribers. Consequently, wireless now accounts for
54.6% of the total telephone subscriber base, as compared to only 40% in 2003.
 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 5CDMA operators providing mobile services in 19
telecom circles and 4 metro cities, covering 2000 towns across the country.
The list of telecom operators operating in India with their market share is detailed
a s under:

Recent things to watch out in Indian telecom sector are:
1. 3G and BWA auctions
2. MVNO
3. Mobile Number Portability
4. New Policy for Value Added Services
5. Market dynamics once the recently licensed new telecom operators start rolling out
6. Services.
7. Increased thrust on telecom equipment manufacturing and exports.
8. Reduction in Mobile Termination Charges.
9. Due to technological advancement and increase in traffic.

Major Players
There are three types of players

in telecom services:
 State owned
companies
(BSNL and
MTNL)
 Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
 Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel,

Idea Cellular, BPL Mobile, Spice Communications)
 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 AIRTEL
 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 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 Infocomm—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.
 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), New Delhi, 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
($90million) 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 Infocomm.
 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, New Delhi, 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
13 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 Telservices and is likely to acquire Tata Broadband.
 VODAFONE
 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.
 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), and cable, handset features, talking SMS,
IPTV, soft switches, and managed services to the local manufacturing and supply chain.
 This report discusses key trends in the Indian telecom industry, their drivers and the
major impacts of such trends affecting mobile operators, infrastructure and handset
vendors.
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, colored ring back
tones, talking SMS, 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.
Risks and concerns

 Industry is subject to extensive regulation by the Government, which could have an
adverse effect on our business.
 Business units compete with government-owned or government controlled companies.

The regulatory environment may tend to benefit them over the private operators. We,
however, do not perceive adverse changes in the regulatory environment. We are

confident that the government will continue to ensure a level playing field for all
operators keeping the customers’ best interest in mind.
Recent developments
 The telecom industry is one of the most dynamic industries in the country today and is
characterized by a constantly evolving regulatory environment.
 The relative importance of regulatory changes should be viewed in light of the big
challenges and opportunities that the industry is facing today (as detailed in Section 2 of
this report).

COMPANY PROFILE:-

Company Facts - Reliance Communication
Registered Address
H Block, 1st Floor,
Dhirubhai Ambani Knowledge City,
New Mumbai
Maharashtra
400710
Tel: 022-30386010 022-30386286

Fax: 022-30376622
Email: RCOM.investors@relianceada.com
Website: http://www.rcom.co.in
Explore Reliance Comm connections

Registrars
Karvy Computershare Private Ltd. Plot No. 17-24,
Vittal Rao Nagar,
Madhapur,
Tel: 1-800-3454001
Fax: 23420814, 23311968
Email: mailmanager@karvy.com
Website: www.karvycomputershare.com
Listing Details - Reliance Communications
Key Dates
Year Ending Month Mar

AGM Date (Month) Sep

Book Closure Date (Month) Sep
Listing Information
Face Value Of Equity Shares 5
Market Lot Of Equity Shares 1
BSE Code 532712
NSE Code RCOM
BSE Group A
Whether The Company Forms A Part Of The Following Indices -
Sensex Yes
Nifty Yes
BSE-100 Yes
BSE-200 Yes
S&P CNX 500 Yes
CNX Midcap No
CNX FMCG No
Listing On :
The Stock Exchange, Mumbai, National Stock

Listed On
Exchange of India Ltd., Luxembourg Stock Exchange

About Sh. Dhirubhai Heerachand Ambani (the founder of the company):-
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, 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 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.
Through out 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.
The second son of a school teacher, Dhirubhai was born in 1932 in the village of Chorwad in
Gujarat in circumstances that can best be described as modest. Driven by hardship and want, he
had to drop out of school early.

In 1949, at the age of 17, he went to Aden (now Yemen) in search of opportunity, and worked as
a dispatch clerk for A. Besse & Co. A couple of years later, the company became a distributor
for Shell products and Dhirubhai was promoted to manage the company’s oil-filling station at
the port of Aden. It was here that he dreamed of setting up and owning a refinery, which he later
realized with his petrochemicals venture.
He returned to India in 1958 to launch his first business venture, a spice trading company
named Reliance Commercial Corporation.
In 1962, Dhirubhai identified an emerging opportunity in yarn trading and shifted to the new
business. Three years later, he changed the name of his company to Reliance Textile
IndustriesLimited.
In 1966, he purchased land in Naroda, Gujarat, to set up a textile mill. In 1975, a technical team
from the World Bank recognised the Naroda mill as one of the best composite textile mills in
India and certified it as ‘excellent even by developed country standards’.
In 1977, the company went public.
At the time of the Reliance Textiles IPO, participation in the Indian capital markets was largely
limited to a small but influential elite which dabbled in a handful of stocks. The great majority of
India’s middle class chose to stay away. Dhirubhai’s decision to prefer the capital markets over
banks as the primary source of funding for his ambitious expansion plans, was as daring as it
was unprecedented.
In the event, The Reliance IPO was an unlikely success. Against all odds, Dhirubhai managed to
convince a sufficiently large number of sceptical middle class investors to put their money, and
faith, in what was then a small, relatively unknown company.
The subsequent growth and success of Reliance and its philosophy of generously rewarding
shareholders rapidly gave Dhirubhai an iconic status in the Indian financial markets.
Under Dhirubhai’s charismatic leadership, the Annual General Meetings (AGM) of Reliance
took on the character of large public spectacles. Typically held in large public arenas, and
attended by thousands of adoring shareholders, the Reliance AGM became a day to remember
in the annual corporate calendar of India. In 1986, the Reliance AGM held in Cross Maidan,
Mumbai, was attended by as many as 30,000 stockholders—a record in India’s corporate
history.
By the mid-80s, Dhirubhai had become something of a living legend, widely hailed by peers and
critics alike as one of the greatest corporate visionaries in the history of post-Independent India.

But Dhirubhai was never one to rest on his laurels. In the early 80s, he had taken the first
important step in strategic backward integration for Reliance with the commissioning of the
Patalganga plant which initially manufactured polyester filament yarn and polyester staple fiber.
In 1991, he set up Reliance Hazira, for the manufacture of petrochemicals—the next link in the
backward integration chain. At the time, Reliance Hazira represented the single largest
investment made by a private sector group in India at a single location.
Meanwhile, Dhirubhai had firmed up plans of setting up a massive grassroots refinery—the next
big leap in his overall strategic roadmap for Reliance. Conceived as the world’s largest
grassroots refinery at the time, Jamnagar in Gujarat was to have an annual capacity of 27
million tonnes.
In the face of formidable challenges, including a massive cyclone that flattened the project site
mid-way through construction, Reliance commissioned the Jamnagar facility in 1999. It was a
fully integrated refinery, complete with a dedicated port and a captive supply of power.
The refinery was not only commissioned ahead of schedule, but also set up at a cost that was
significantly lower than the prevailing global benchmark for a project of such magnitude.
It was one of Dhirubhai’s great dreams in life to see ordinary Indians enjoy the enormous
economic benefits of being able to access affordable yet world class telecommunications
infrastructure. He wanted Reliance to spearhead a communications revolution that would

dramatically cut down the cost of connectivity, and propel India into the digital age. His
ultimate ambition: To make the cost of a phone call cheaper than that of a post card. It was
therefore entirely logical for Reliance to enter the telecommunications space when the sector
was opened up for private participation in the 1990s.
The rest, as they say, is history.
Today, Reliance Communications is India’s largest information and communications services

provider with over 20 million subscribers, and offers the full range of integrated telecom
services—at prices that are, by far, the lowest anywhere in the world.
Dhirubhai left for his heavenly abode on July 6, 2002
A DREAM COMES 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: “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 revolutionizing the way India communicates and networks,
truly bringing about a new way of life, relationship and help to develop these concepts.
Together, these ideas can be converted into products and services that have great market
potential.

CHAIRMAN’S PROFILE:-
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 limited.
He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information

and Communication Technology, Gandhi Nagar, Gujarat.
Till recently, he also held the post of Vice Chairman and Managing Director of Reliance
Industries Limited (RIL), India’s largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally
involved in every aspect of the company’s management over the next 22 years.
He is credited with having pioneered a number of path-breaking financial innovations in the

Indian capital markets. He spearheaded the country’s first forays into the overseas capital
markets with international public offerings of global depositary receipts, convertibles and bonds.
Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also
steered the 100-year Yankee bond issue for the company in January 1997.
He is a member of:
• Wharton Board of Overseers, The Wharton School, USA
• Central Advisory Committee, Central Electricity Regulatory Commission

• Board of Governors, Indian Institute of Management, Ahmedabad
• Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha,
Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006.
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.”
MISSION:
 To attain global best practices and become a world-class communication service provider-
guided by its purpose to move towards greater degree of sophistication and maturity.
 To work with vigor, dedication and innovation to achieve excellence in service quality,
reliability, safety and customer care as the ultimate goal.
 To consistently achieve high growth with the highest levels of productivity.
 To be a technology driven, efficient and financially sound organisation.
 To contribute towards community development and nation building.

 To be a responsible corporate citizen nurturing human values and concern for society, the
environment and above all, the people.
 To promote a work culture that fosters individual growth, team spirit and creativity to
overcome challenge and attain goals.
 To encourage ideas, talents and value systems.
 To uphold the guiding principle of trust, integrity and transparency in all aspects of
interpretation and dealings.
CORE VALUES:
 We will put customer first at all times, and built long term relationship with them.
 We shall believe interpretation and keep every commitment that we make.
 We will operate with honesty and integrity interpretation all our dealings.
 We treat every individual with dignity and respect.
 We will approach every endeavor with zeal & an attitude towards excellence.
OBJECTIVESOF COMPANY:

 Strengths and enhances existing business roles.
 Drives greater empowerment, business focus, operational efficiencies and
customer value.
 Takes another significant steps towards institutionalization and building a conglomerate

of the future.
Awards and Achievements:

• Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards.
• Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the
Business Barons – TNS Mode opinion poll, 2004.
• 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.
COMPANY ANALYSIS

INDIA ’S LEADING INTEGRATED TELECOM COMPANY:
Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group
(ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock
Exchange, it is India’s leading integrated telecommunication company with over 80 million
customers.
Our business encompasses a complete range of telecom services covering mobile and fixed line
telephony. It includes broadband, national and international long distance services and data
services along with an exhaustive range of value-added services and applications. Our constant
endeavour is to achieve customer delight by enhancing the productivity of the enterprises and
individuals we serve.
Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding
with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial
initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s
dream of ushering in a digital revolution in India. Today, we can proudly claim that we were
instrumental in harnessing the true power of information and communication, by bestowing it in
the hands of the common man at affordable rates.
We endeavour to further extend our efforts beyond the traditional value chain by developing and
deploying complete telecom solutions for the entire spectrum of society.
ORGANIZATIONAL STRUCTURE

SWOT Analysis:
Strength Weakness
• Low Entry Cost • Branding Image

• Commission Structure • Distribution problem
• Fast Activation Process • Limited product portfolio- Only
• Network Mobile
• Connectivity • Lack of Competitive Strength
• Data GPRS • Limited Budget
Opportunity Threat
• Preference of GSM over CDMA • Political destabilization.

• New Specialist application • New Entrants
• Rural Telephony • IT Development
• New Market, Vertical, Horizontal • Market Demand
• Competitors` Vulnerabilities • Seasonality,Weather Effects
Strength:
In reliance communication the entry cost is very less and the activation for the scheme is very
fast. The network of reliance handset is very high and the connectivity is better than the other
companies.
Weakness:
In reliance communication the product and the distribution of the product is not that much
competitive then other mobile companies.

Opportunity:
In the opportunity side company has the competitive advantages over its scheme like night
calling and message schemes providing by the RCOM.
Threat:
Here the most effective threat is the new entry of other companies like Docomo. The Strategy
that Docomo follows is very strng competitive then others. Recently Tata has introduced the pay
Rs. 1/ per 3 minutes. So this kind of schemes would effect the sales of the RCOM.
BCG MATRIX:
Here in Case of Reliance, the position of reliance is CASH COW. It has high market share
and low market growth. It has the opportunity to grow its market share by way of
introducing new schemes which attract the customers.

The company has the Second highest market share of 20.4 % after Bharti Airtel. So it has the
potential to increase its Market share.
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 20 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.
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.

LOOKING BACK, LOOKING FORWARD
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri
Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses
in terms of net worth. The group has business interests that range from telecommunications
(Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the
generation and distribution of power (Reliance Infrastructure Limited).
Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest private
sector information and communications company, with over 80 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.
RELIANCE PRODUCT
 Reliance Base Phone
 Reliance Mobile
 Reliance Data Card
 Reliance Voucher, E-Recharge
 Reliance PCO
 Reliance Broad Band

Competitor:-
INTRODUCTION
“Bharti Airtel” formerly known as Bharti Tele-Ventures Limited (BTVL) is among India's
largest mobile phone and Fixed Network operators. With more than 60 million subscriptions as
of 13th February 2008.[2] It offers its mobile services under the Airtel brand and is headed by
Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14
circles. The company complements its mobile, broadband & telephone services with national
and international long distance services. The company also has a submarine cable landing station
at Chennai, which connects the submarine cable connecting Chennai and Singapore. The
company provides reliable end-to-end data and enterprise services to the corporate customers by
leveraging its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile
circles, VSATs, ISP and international bandwidth access through the gateways and landing
station.
Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti
Airtel owns the Airtel brand and provides the following services under the brand name Airtel:
Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line,
Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporates). Leading international telecommunication
companies such as Vodafone and SingTel held partial stakes in Bharti Airtel.
In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey in the
Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the
Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile
telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the
launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel
signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed
network. In August 2007, the company announced it will be launching a customized version of
Google search engine that will provide an 'array of services' to its broadband customers.

INTRODUCTION
As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in 11
circles. With a customer base of over 17 million, IDEA Cellular has operations in
Delhi,Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal,
Haryana, UP-West, Himachal Pradesh and Kerala. IDEA Cellular's footprint currently covers
approximately 45% of India's population and over 50% of the potential telecom-market.
As a leader in Value Added Services, Innovation is central to IDEA's VAS Factory. It is the first
cellular company to launch music messaging with 'Cellular Jockey', 'Background Tones', 'Group
Talk', a voice portal with 'Say IDEA' and a complete suite of Mobile Email Services.
Idea Cellular is a wireless telephony company operating in various states in India. It initially
started in 1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging
Tata Cellular and Birla AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004
gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat,
Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala,
Rajasthan and Delhi (inclusive of NCR). The company has its retail outlets under the "Idea n' U"
banner. The company has also been the first to offer flexible tarrif plans for prepaid customers. It
also offers GPRS services in urban areas.
Holding
Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But
following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its
32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each.
Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMAbased
mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by the
Tatas also became a major reason for the delay in Idea being granted a license to operate in
Mumbai. This was because as per Department of Telecom (DOT) license norms, one promoter
could not have more than 10% stake in two companies operating in the same circle and Tata
Indicom was already operating in Mumbai when Idea filed for its license. The Birlas thus
approached the DOT and sought its intervention, and the Tatas replied by saying that they would
exit Idea but only for a good price. On April 10, 2006, the Aditya Birla Group announced its
acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06
billion. While 15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a company in-
charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT
holdings Private Ltd., an AV Birla family owned company.Currently, Birla Group holds 98.3%
of the total shares of the company.

Idea has successfully launched 3 more new circles (states) in India viz. Rajasthan, Himachal
Pradesh and UP (East) to make itself a pan-India player. Recently, Idea got licenses to operate in
Mumbai & Bihar. They are awaiting the spectrum from DoT.
INTRODUCTION
Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian
Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of India.
The company forms part of the Tata Group's prescence in the Telecommunication Industry in
India, along with Tata Teleservices (Maharashtra) Limited (TTML) and VSNL. TTSL was
incorporated in 1995 and was the first company to offer CDMA Mobile services in India,
specifically in the state of Andhra Pradesh.
In December 2002, the company acquired the erstwhile Hughes Telecom (India) Ltd. which was
renamed Tata Teleservices (Maharashtra) Limited. In September 2007, Tata Indicom launched
the Talk World plan, an International Long Distance Plan.
Tata is the direct competitor with Reliance, both CDMA operators in India. The company
provides unified telecommunication solutions including mobile, fixed wireless, fixed line and
broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL providing GSM
based mobile telephony.
The company was first in India to provide free intra network calling within city limits. They
launched a unique scheme providing lifetime rental free connectivity on its mobile and fixed
wireless for a one time charge. Tata Teleservices is part of the INR Rs. 119000 Crore (US$ 29
billion) Tata Group, that has over 87 companies, over 250,000 employees and more than 2.8
million shareholders. With a committed investment of INR 36,000 Crore (US$ 7.5 billion) in
Telecom (FY 2006), the Group has a formidable presence across the telecom value chain.
Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996,
Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra
Pradesh circle.
Starting with the major acquisition of Hughes Tele.com (India) Limited [now renamed Tata
Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion
mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India
presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, Karnataka,
Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal

Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West
Bengal.
Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has
established a robust and reliable 3G ready telecom infrastructure that ensures quality in its
services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment
of a reliable, technologically advanced network. The company, which heralded convergence
technologies in the Indian telecom sector, is today the market leader in the fixed wireless
telephony market with a total customer base of over 3.8 million. Tata Teleservices’ bouquet of
telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony
and Wireline services. Other services include value added services like voice portal, roaming,
post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem,
data cards, calling card services and enterprise services.
Some of the other products launched by the company include prepaid wireless desktop phones,
public phone booths, new mobile handsets and new voice & data services such as BREW games,
Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news,
cricket, astrology, etc. Tata Indicom redefined the existing prepaid mobile market in India, by
unveiling their offering – Tata Indicom ‘Non Stop Mobile’ which allows customers to receive
free incoming calls. Tata Teleservices today has India’s largest branded telecom retail chain
and is the first service provider in the country to offer an online channel www.ichoose.in to offer
postpaid mobile connections in the country.
Tata Teleservices has a strong workforce of 6000. In addition, TTSL has created more than
20,000 jobs, which will include 10,000 indirect jobs through outsourcing of its manpower needs.
Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves
over 21 million customers in over 4000 towns. With an ambitious rollout plan both within
existing circles and across new circles, Tata Teleservices offers world-class technology and user-
friendly services in 20 circles.

INTRODUCTION
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited)
is a public sector communications company in India. It is the India's largest telecommunication
company with 25.14% market share as on December 31, 2007. Its headquarters are at Bharat
Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini-
ratna - a status assigned to reputed Public Sector companies in India.
BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL has
a customer base of 68.5 million (Basic & Mobile telephony). It has footprints throughout India
except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As
on December 31, 2007 BSNL commanded a customer base of 31.7 million Wireline, 4.1 million
CDMA-WLL and 32.7 million GSM Mobile subscribers.
BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67
b) with net profit of INR 78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and
one of the largest Public Sector Undertaking with estimated market value of $ 100 Billion. The
company is planning an IPO with in 6 months to offload 10 % to public.
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications
Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile,
GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN
Services etc. Within a span of five years it has become one of the largest public sector unit in
India.
BSNL has installed Quality Telecom Network in the country and now focusing on improving it,
expanding the network, introducing new telecom services with ICT applications in villages and
wining customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4
million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000
BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network
connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. BSNL is the only service
provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital
Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with its
wide network giving services in every nook & corner of country and operates across India except
Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of
the country. BSNL serves its customers with its wide bouquet of telecom services.
BSNL is numero uno operator of India in all services in its license area. The company offers
vide ranging & most transparent tariff schemes designed to suite every customer. BSNL cellular
service, CellOne, has more than 17.8 million cellular customers, garnering 24 percent of all
mobile users as its subscribers. That means that almost every fourth mobile user in the country
has a BSNL connection. In basic services, BSNL is miles ahead of its rivals, with 35.1 million

Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in
revenue terms.
BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who
access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less
Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. BSNL has
set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides
convergent services like voice, data and video through the same Backbone and Broadband
Access Network. At present there are 0.6 million DataOne broadband customers.
The company has vast experience in Planning, Installation, network integration and Maintenance
of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom
Training Institute. Scaling new heights of success, the present turnover of BSNL is more than
Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26
billion) for last financial year. The infrastructure asset on telephone alone is worth about
Rs.630,000 million (US $ 14.37 billion).
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India Despite the official name being Vodafone Essar, its products are simply
branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 licence areas.
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16
telecom circles in India . Despite the official name being Vodafone Essar, its products are simply
branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 licence areas.

OWNERSHIP:
Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka
Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja
Group, and Essar Group, which is the owner of the remaining 33%. The whole company was
valued at USD 18.8 billion . The transaction closed on May 8, 2007.
PREVIOUS BRANDS:
In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its
services under a single identity. The Company entered into agreement with NTT DoCoMo to
launch i-mode mobile Internet service in India during 2007.
The company used to be named Hutchison Essar, reflecting the name of its previous owner,
Hutchison. However, the brand was marketed as Hutch. After getting the necessary government
approvals with regards to the acquisition of a majority by the Vodafone Group, the company was
rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20
September 2007.
On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition
exercises in recent times.
Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile
transition being unveiled today. Along with the transition, cheap cell phones have been launched
in the Indian market under the Vodafone brand. There are plans to launch co-branded handsets
sourced from global vendors as well.
A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage
Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world
into India."
While there is no revealing the prices of the low-cost Vodafone handsets, the industry is abuzz
that prices might start at Rs 666, undercutting Reliance Communications' much-hyped 'Rang
Barse' with cheap handsets beginning at Rs 777.
Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset
offers -- rather handset-bundled schemes for customers.

Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is
expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a
global low-cost handset procurement deal with ZTE.
GROWTH OF HUTCHISON ESSAR (1992-2005):
In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994
was awarded a licence to provide mobile telecommunications services in Mumbai (formerly
Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh
of Max still holds 12% in company.
By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had
acquired interests in six mobile telecommunications operators providing service in 13 of India's
23 licence areas and following the completion of the acquisition of BPL that number increased to
16. In 2006, it announced the acquisition of a company that held licence applications for the
seven remaining licence areas.
In a country growing as fast as India, a strategic and well managed business plan is critical to
success. Initially, the company grew its business in the largest wireless markets in India - in
cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to
establish a robust network, well known brand and large distribution network -all vital to long-
term success in India. Then it also targeted business users and high-end post-paid customers
which helped Hutchison Essar to consistently generate a higher Average Revenue Per User
("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish
leading positions in India's largest markets providing the resources to expand its footprint
nationwide.
In February 2007, Hutchison Telecom announced that it had entered into a binding agreement
with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan
interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and
interests) of approximately US$11.1 billion or HK$87 billion.
1992: Hutchison Whampoa and Max Group established Hutchison Max
2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR
acquisition
2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and
Chennai
2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajastan, Uttar
Pradesh East and Haryana telecom circles and renamed it under Hutch brand

2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West'
and 'West Bengal'
2005: Acquired BPL, another mobile service provider in India
2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully
launched its services in the following circle.
2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network.
Hutch was often praised for its award winning advertisements which all follow a clean,
minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses
only white letters on red background. Another recent successful ad campaign in 2003 featured a
pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you
go, our network follows. The simple yet powerful advertisement campaigns won it many
admirers.
Comparison of lifetime plans of all cellular

Companies
Pay Per Second Versus Pay Per Minute, TelecomTalk’s Exclusive Tariff Comparison-:

Duration of 50p/min 1p/sec (Tata 1p/2sec# Uninor Reliance Tata
calls (Reliance,B Docomo, (MTS Kolkata 29p/min Mobile’s Indicom’s
(seconds) SNL, Airtel, Aircel, lifetime offer; with ‘call Re1/3minut Teen Pe
Vodafone, S Airtel, Aircel, Idea, setup e Teen with
Tel etc) BSNL, Tata Docomo charge’ of 1p/sec
Vodafone, with 39p per
# BSNL Reliance, Rs45/month) call (CDMA)
charged Loop, &
49p/minute all) MTNL
under (Mumbai-
all@49 plan Delhi)
30 50p 30p 15p 68p Re1 30p

45 50p 45p 23p 68p Re1 45p
60 50p 60p 30p 68p Re1 60p
80 Re1 80p 40p 97p Re1 80p
120 Re1 Rs1.20 60p 97p Re1 Rs1.20
150 Rs1.50 Rs1.50 75p Rs1.26 Re1 Rs1.50
180 Rs1.50 Rs1.80 90p Rs1.26 Re1 Rs1.80
200 Rs2.00 Rs2.00 Re1 Rs1.55 Rs2 Rs1.80
240 Rs2.00 Rs2.40 Rs 1.20 Rs1.55 Rs2 Rs1.80
275 Rs2.50 Rs2.75 Rs 1.38 Rs1.84 Rs2 Rs1.80
300 Rs2.50 Rs3.00 Rs 1.50 Rs1.84 Rs2 Rs1.80
320 Rs3.00 Rs3.20 Rs 1.60 Rs2.13 Rs2 Rs1.80
360 Rs3.00 Rs3.60 Rs 1.80 Rs2.13 Rs2 Rs1.80
400 Rs3.50 Rs4.00 Rs2.00 Rs2.42 Rs3 Rs2.20
500 Rs4.50 Rs5.00 Rs2.50 Rs3.00 Rs3 Rs3.20
600 Rs5.00 Rs6.00 Rs3.00 Rs3.29 Rs4 Rs3.20
# MTNL has 0.5p/sec (Half Paisa per Second) tariff,and odd and even figure of the
call charges according to the call duration will be adjusted in next call.
The focus of Indian mobile price war now completely shifted to Roaming tariff. Reliance Mobile
which is first operator to roll out lowest National Roaming tariff, once again targeted its rival by
media ads which clearly take on Bharti Airtel on Roaming tariff.
Recently when the largest telecom operator Bharti Airtel has slipped to third position in terms of
monthly new subscriber additions, it has slashed Roaming tariff nearly by 63% and introduces
Airtel turbo plans. But Reliance Mobile once again comes with new aggressive campaign on
Roaming tariff and say that customer can save their money only with Reliance.

Its 2nd time when Reliance Mobile has openly come up with an ad campaign targeting its rival
and market leader AIRTEL quoting “AIRTEL DOES NOT OFFER PER SECOND TARIFF
CHARGES ON ROAMING” and “Reliance Mobile bring India’s best Roaming Plans go for it”.
Reliance Communication is the 1st operator who has come up with direct challenge to its market
competitors on the Local STD and Roaming tariff. With the new media advertisements Reliance
Mobile quoted customer can save their money while on Roaming with Its CDMA and GSM
mobile service approx 52% in comparison to Airtel.
According to Reliance Mobile, Its tariff plan is clear as crystal. As accustomed to “Simply
Reliance” their plan very simple and easy to understand. All calls originating from Reliance
GSM and CDMA Mobile phones will be charged at a flat rate of 1p/sec be it local, STD or when
you are in Roaming. SMS charges are just 50 paisa irrespective of local or national. If anybody
consider Reliance Mobile’s plan with Airtel’s Turbo plans then it’s cleared that only with
Reliance Mobile subscriber can save 52% from Airtel.
Roaming Airtel Reliance Mobile (GSM and CDMA)
Outgoing Same Network 60p/min 1 Paisa One Second
Other Network 80p/min
Incoming 60p/min
SMS Local Re.1 50 Paisa
National Rs.1.50
Now its just a wait and watch game to see who heads for the crown and immerges
as the number one service provider in India. The battle has just taking a new shape
Estblished and as new operators are still to join the war.
(Source: http://telecomtalk.info/reliance-mobile-once-again-triggers-airtel-on-
roaming-tariff/13511/)
SMS SCHEMES:-
When Simply Reliance was recently launched, their plans and offerings were plain and simple.
No conditions, no clauses. Even now, Reliance subscribers will be the only ones who can send
SMSes at the same tariff that they have opted for. Even the new SMS packs launched by
Reliance that allows All India SMS @1 paisa and virtually unlimited free SMSes per day at a
daily rental of Re. 1 will be maintaining the same tariffs even on festive days unlike subscribers
of other leading operators such as Airtel, Vodafone or DoCoMo.These will be the only
subscribers having 10 to 15 times lesser SMS spends as compared to similar usage by
subscribers of other operators.

Reliance Communications, today initiated a radical move in the Indian telecom industry by
making SMS’s more affordable to all mobile customers in India. Reliance Mobile customers can
avail of two revolutionary SMS tariff plans:
o ONE PAISE PER SMS
o UNLIMITED SMS’s @ Re. 1 PER DAY
The new SMS tariff plans are add-on plans and are applicable for all Reliance Mobile customers
irrespective of CDMA or GSM network as well as prepaid and postpaid customers.
The tariffs are applicable for non-commercial use only. To prevent these attractive SMS tariffs
being misused by telemarketers a fair usage cap of 15000 SMS’s per month is applicable on the
Unlimited SMS.
Pre-Paid SMS Plans
Type Value Proposition Pack Rental
1p/SMS for Local, National &

SMS STV Roaming Rs. 11 per month
Unlimited SMS’s (Local,

Daily Pack National and Roaming) Re. 1 per day
Post Paid SMS Packs
Type Value Proposition Pack Rental
1p/SMS for Local, National &

Simple SMS Pack Roaming Rs. 11 per month
Unlimited SMS’s (Local,

Free SMS Pack National and Roaming) Rs. 25 per month
“SMS continues to grow every year with more and more innovative ways of utilizing its
potential coming in the forefront. Indians are using SMS as a mode of communication to keep in
touch with friends and family. With select subscriber groups, SMS is a preferred communication
mode over voice calls. On account of significant tariff disparity in the recent months, it has lost
its due share of attention. Considering this, Reliance Communications with its 1st in the industry
initiative, aims to revitalize SMS usage in the country”, said Mr. Mahesh Prasad, President –
Reliance Communications.
“Like our earlier Simply Reliance offerings of Local, STD and Roaming calls at 50p/min and

1p/sec from any Reliance mobile to any phone on any network, yet to be matched by any
competitive offering. With this best in the industry initiative, we offer significant value not only
to our existing 9 Crore CDMA and GSM customers, but are also aimed at gaining new
acquisitions from high SMS usage groups of the GSM community such as young professionals
and the youth across India”, he added.
Source: http://telecomtalk.info/reliance-mobile-unveils-two-revolutionary-sms-
tariff-plans/13647/

Research Methodology
Objectives:
Management Objective:
 To identify What are the effects of reliance communication on Airtel,

Vodafone, Idea, and Tata indicom .
Research Objectives:
 To compare the different schemes of telecom compnies.
 To get the idea about the customer’s mindset regarding various schemes provided by the
telecom companies.
 To study the Customer Awareness regarding the scheme launched by Reliance recently
and also to identify satisfaction level of reliance users and other mobile subscribers.
Scope of the Study:
The primary learning objective of our project is to study the Effectiveness of Counter attack of
Reliance Communication on Airtel, Idea, Vodafone, Tata Indicom, & Bsnl in the geographical
area of Ahmedabad & Gandhinagar area.
Research design:
The methodology proposed for conducting the study includes the specifications of research
design, sample design, questionnaire design, data collection and statistical tools used for
analyzing the collected data are as given:

Data Collection sources:
Primary Data Collection:
The primary data was collected throughfilling Questionnaires. The questionnaire which
we have prepared . A five point scale was used such as very satisfied,
quite satisfied, neither satisfied nor dissatisfied, very dissatisfied, quite
dissatisfied.
Secondary Data :
Internet/ Websites
Newspaper or Magazine
Books, and Articles
Retailers.
Distributors.
Sales executives.
Data collected from the Company
Type of Research :

Exploratory Research.
Type of sampling :
According to the target population the sample type is Convenience sampling.&

Nonprobability sampling.
Sample Population :
It is the total collection of the elements about which we wish to make the inferences, i.e.
Mobile users in Gandhinagar and Ahmedabad region.
Sample unit :
Mobile users in Gandhinagar and Ahmedabad region .
Sample Size:
100 respondants would be surveyed.
Sample Scope:
Scope of the sample is within the Gandhinagar and Ahmedabad region.
Research Tools :
We take Questionnaire as a research tool.

Contact method :
Personal intrerview.
Data Analysis tools :
Graphical interpretations of the questions by pie chart & hypothesis testing, correlation
Chi- Square test.

DATA ANALYSIS:
 CHART ANALYSIS:
HERE WE HAVE TO ANALYZE THE DATA THAT WE HAVE COLLECTED. THE

CHART ANALYSIS IS BEING DONE THROUGH EXCEL SHEET.
1.Do you have any Landline/Mobile Connection?
LANDLINEORMOBILECONNECTION
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 100 100.0 100.0 100.0

HERE ALL THE PEOPLE WE HAVE MET HAS MOBILE AND THE LANDLINE
CONNECTIONS. SO THE GROWTH OF TELECOM INDUSTRY IS SIGNIFICANT. THE
COMOANIES CAN GET MAX. BENEFIT FROM THAT.
2.How many Mobile connections do you have?
NO.OFMOBILECONNECTION
Cumulative
Valid ONE 55 55.0 55.0 55.0
TWO 30 30.0 30.0 85.0
MORE THAN TWO 15 15.0 15.0 100.0
Total 100 100.0 100.0

HERE THE MOBILE USER HAVING MORE THAN TWO CONNECTION IS 30%. SO WE
CAN SAY THAT THE GROWTH OF THE COMPANIES IS UPWARD. THEY HAVE TO
ATTRACT THE CUSTOMER TO GET THE MAX. BENEFIT.
3. Are you a RIM subscriber?
RIMSUBSCRIBER
Cumulative
Valid YES 34 34.0 34.0 34.0
NO 66 66.0 66.0 100.0
Total 100 100.0 100.0

HERE OUT OF 100, 33% ARE THE RIM MOBILE USER SO THE RELIANCE IS THE BIG
GIANT WHO HAS CAPTURED THE MARKET. HERE OTHER COMPANIES HAVING THE
CUSTOMERS IS 66%.
4. If No, Then Which company connection you are using?

OTHERCOMPANYCONNECTION
Cumulative
Valid BSNL 8 8.0 9.5 9.5
AIRTEL 19 19.0 22.6 32.1
VODAFONE 30 30.0 35.7 67.9
IDEA 26 26.0 31.0 98.8
TATA INDICOM 1 1.0 1.2 100.0
Total 84 84.0 100.0
Missing System 16 16.0
Total 100 100.0
CUSTOMER USING OTHER COMPANY CONNECTION ARE MORE. SO THE GROWTH OF

THE TELECOM COMPANIES CAN BE MORE IN NEAR FUTURE.
5. According to You, which company provide cheapest service?

SERVICE@LOWERCOST
Cumulative
Valid RELIANCE 32 32.0 32.0 32.0
BSNL 20 20.0 20.0 52.0
AIRTEL 17 17.0 17.0 69.0
VODAFONE 10 10.0 10.0 79.0
IDEA 11 11.0 11.0 90.0
TATA INDICOM 10 10.0 10.0 100.0
Total 100 100.0 100.0
HERE PEOPLE USING THE SCHEMES OF THE TELECOM COMPANIES FEEL THAT
RELIANCE COMMUNICATION IS A COMPANY WHICH PROVIDES A SERVICE @ LOWER
COST.
6. When did you last buy Reliance Scheme/ Other mobile Scheme?

LASTPURCHASEOFSCHEME
Cumulative
Valid IN THE PAST MONTH 18 18.0 18.0 18.0
2-3 MONTHS AGO 20 20.0 20.0 38.0
4-6 MONTHS AGO 17 17.0 17.0 55.0
1-2 YEARS AGO 24 24.0 24.0 79.0
MORE THAN 2 YEARS AGO 21 21.0 21.0 100.0
Total 100 100.0 100.0
HERE FROM THE DATA WE CAN SAY THAT PEOPLE USING DIFFERENT SCHEME IS
BEING USED BY THE CUSTOMERS ARE HAVING SOME VALIDITY PERIOD. SO THEY
ARE USING THE SCHEME MOSTLY IN A YEAR. THERE ARE SOME PEOPLE WHO USED
THE SCHEME IN 2-3 MONTHS.
7. How frequently do you use, Reliance Scheme/Any Other Mobile Scheme?

FREQUENCYOFUSINGSCHEME
Cumulative
Valid 2-3 TIMES A MONTH 26 26.0 26.0 26.0
ONCE A MONTH 20 20.0 20.0 46.0
ONCE EVERY 3 MONTHS 18 18.0 18.0 64.0
ONCE OR TWICE A YEAR 26 26.0 26.0 90.0
LESS FREQUENTLY 10 10.0 10.0 100.0
Total 100 100.0 100.0
PEOPLE USING SCHEMES AT DIFFERENT FREQUENT LEVEL. SOME OF THE PEOPLE

USING SCHEMES ONE OR TWICE IN A MONTH AND SOME ARE USING IT ONCE IN A
YEAR.
8. Which the following schemes of RIM/ any other companies have you heard of?

SCHEMESHEARDOF
Cumulative
Valid PAY PER CALL 15 15.0 15.0 15.0
PAY PER MINUTE 12 12.0 12.0 27.0
PAY PER SECOND 35 35.0 35.0 62.0
30 PAISA/MINUTE 16 16.0 16.0 78.0
LOCAL+STD@1PAISA/SEC
10 10.0 10.0 88.0
OND
ALL OF THESE 12 12.0 12.0 100.0
Total 100 100.0 100.0
HERE PEOPLE HAD HEARD DIFFERENT SCHEMES ARE FREQUENT. PEOPLE HEARD
THE PAY PER SECOND SCHEME IS ABOUT 35. SO HERE PEOPLE IS AWARE ABOUT
THE RECENT SCHEME LAUNCHED IN INDIA. THEY ALSO KNOW THAT WHICH SCHEME
WOULD BE AS PER THEIR EXPECTATION.
9. Which Scheme of Reliance/ any other companies have you used?

SCHEMESUSED
Cumulative
PAY PER MINUTE 16 16.0 16.0 21.0
PAY PER SECOND 37 37.0 37.0 58.0
30 PAISA/MINUTE 24 24.0 24.0 82.0
11 11.0 11.0 93.0
OND
NONE OF THESE 7 7.0 7.0 100.0
Total 100 100.0 100.0
PEOPLE HEARD PAY PER SECOND SCHEME IS ABOUT 35. BUT PEOPLE USING THE
SCHEME IS MORE AND ABOUT 37 PEOPLE USING THIS SCHEME.
10. Which Scheme you like most?

SCHEMESLIKEMOST
Cumulative
PAY PER MINUTE 7 7.0 7.0 17.0
PAY PER SECOND 44 44.0 44.0 61.0
30 PAISA/MINUTE 23 23.0 23.0 84.0
9 9.0 9.0 93.0
OND
ALL OF THESE 6 6.0 6.0 99.0
7 1 1.0 1.0 100.0
Total 100 100.0 100.0
CUSTOMER IS BEING ATTRACTED BY THE PAY PER SECOND SCHEME INTRODUCED

BY TELECOM COMPANIES. HERE FROM TH DATA WE CAN SAY THAT PEOPLE ARE
MORE SATSFIED AND THEY LIKE PAY PER SECOND SCHEME MORE THEN OTHERS. IT
IS ALMOST 44%.

11. Why is that?
REASON
Cumulative
Valid CHEAPER 26 26.0 41.9 41.9
LESS EXPENSIVE 9 9.0 14.5 56.5
SAVES MONEY 19 19.0 30.6 87.1
FEASIBILITY OF SCHEME 3 3.0 4.8 91.9
EFFECTIVE
1 1.0 1.6 93.5
ADVERTISEMENT
AS PER EXPECTATION 4 4.0 6.5 100.0
Total 62 62.0 100.0
Missing System 38 38.0
Total 100 100.0
WHILE THE SURVEY PEOPLE ASKED ABOUT WHY THEY LIKE THE SCHEME? MOST OF
THE PEOPLE DID NOT KNOW THE REASON AND STATED THAT SHOP-KEEPER SAID
AND WE HAVE USED THE SCHEME. PEOPLE WHO FEEL THAT THE SCHEME
ACTIVATION CHARGE ARE LOW. SO THEY HAVE OPTED THE SCHEME.
12. How do you find out information about Reliance Scheme?

INFORMATIONSOURCE
Cumulative
Valid TV 36 36.0 36.0 36.0
RADIO 3 3.0 3.0 39.0
GENEARL NEWS PAPER

14 14.0 14.0 53.0
OR MAGAZINE
SPECIALIST MAGAZINES 1 1.0 1.0 54.0
DIRECT MAIL 1 1.0 1.0 55.0
IN MY LOCAL OUTLATES 11 11.0 11.0 66.0
FROM FRIENDS &

18 18.0 18.0 84.0
COLLEAGUES
FROM SALES
8 8.0 8.0 92.0
REPRESENTATIVES
OTHERS 8 8.0 8.0 100.0
Total 100 100.0 100.0
PEOPLE USING THE SCHEMES HAVE GOT THE INFORMATION MOSTLY FROM THE TV AD. IT IS ALMOST
ABOUT THE 36% OF THE SAMPLE WE HAVE COLLECTED. PEOPLE HAVE GOT INFORMATION FROM
FRIENDS ARE ALMOST 18%.

13. How satisfied are you overall with RIM/Other companies?
OVERALLSATISFACTION
Cumulative
Valid VERY SATISFIED 40 40.0 40.0 40.0
QUITE SATISFIED 44 44.0 44.0 84.0
NIETHER SATISFIED NOR

9 9.0 9.0 93.0
DISSATISFIED
QUITE DISSATISFIED 4 4.0 4.0 97.0
VERY DISSATISFIED 3 3.0 3.0 100.0
Total 100 100.0 100.0
PEOPLE USING DIFFERENT SCHEMES HAVE BEEN ASKED ABOUT THE SATISFACTION
STATED THAT THEY HAVE BEEN SATISFIED FEOM THE SCHEMES. BUT SOME TIMES
THEY FELT SOME DISSATISFACTION FROM THE SCHEME.
14.How satisfied are you with the Connectivity of RIM/Other companies?

SATISFIEDWITHCONNECTIVITY
Cumulative

9 9.0 9.0 90.0
DISSATISFIED
Total 100 100.0 100.0
HERE FROM THE GRAPH WE CAN ANALYZE THAT PEOPLE HAVE OVERALL
SATISFACTION HAS GIVEN THE RIGHT INFORMATION OR NOT. PEOPLE WHO ARE
USING SCHEMES ARE SATISFIED BY THE CONNECTIVITY OF THE COMPANY SIM.
15. How satisfied are you with the voice clearance of RIM/ Other companies?

SATISFIEDWITHVOICECLEARENCE
Cumulative

11 11.0 11.0 90.0
DISSATISFIED
Total 100 100.0 100.0
PEOPLE USING DIFFERENT CONNECTION ARE SATISFIED FROM THE VOICE

CLEARENCE OF THE COMPANY SERVICE.
16. How satisfied are you with the Network of RIM/ Other companies?

SATISFIEDWITHNETWORK
Cumulative

5 5.0 5.0 88.0
DISSATISFIED
Total 100 100.0 100.0
PEOPLE USING THE CONNECTION ARE SATISFIED WITH THE NETWORK ARE 57%.
17. How satisfied are you with the Schemes of RIM/ Other companies?

SATISFIEDWITHSCHEME
Cumulative

8 8.0 8.0 95.0
DISSATISFIED
Total 100 100.0 100.0
WHEN PEOPLE ASKED ABOUT THAT THEY ARE SATISFIED WITH THE SCHEMES,
STATES THAT THEY ARE SATISFIED FROM THE SCHEMES. MOSTLY THE STUDENTS
USING THE SIM STATES THAT SCHEMES ARE AS PER THEIR EXPECTATION. SO THEY
ARE FULLY SATISFIED.
18. How satisfied are you with the Value of the price of RIM/ Other companies?

SATISFIEDWITHVALUE
Cumulative

11 11.0 11.0 96.0
DISSATISFIED
Total 100 100.0 100.0
WHEN PEOPLE ASKED ABOUT THE SATISFACTION FROM THE VALUE AND PRICE
THEY PAY FOR THE ACTIVATION STATES THAT THEY WERE SATISFIED FROM THE
PRICE THEY PAID FOR ACTIVATION.
19.How satisfied are you with the Easily Available of RIM/ Other companies?

SATISFIEDWITHEASYAVAILIBILITY
Cumulative

9 9.0 9.0 91.0
DISSATISFIED
Total 100 100.0 100.0
THE FEASIBILITY OF SCHEME IS EASILY AVAILABLE IN THE MARKET. PEOPLE HAVE

FOUND THE SCHEME EASILY.
20.Are you satisfied about recent message scheme of Reliance/any other

companies?

SATISFIEDWITHMESSAGESCHEME
Cumulative

11 11.0 11.0 77.0
DISSATISFIED
Total 100 100.0 100.0
RIM HAS LAUNCHED THE MESSAGE SCHEME IN MARKET. PEOPLE USING DIFFERENT
SIM ARE SATISFIED WITH THE MESSAGE SCHEME PROVIDED BY THEIR SERVICE
PROVIDER.
21. which company’s message scheme do you like most?

MESSAGESCHEMELIKE
Cumulative
Valid RELIANCE 48 48.0 48.0 48.0
BSNL 16 16.0 16.0 64.0
AIRTEL 14 14.0 14.0 78.0
VODAFONE 12 12.0 12.0 90.0
IDEA 8 8.0 8.0 98.0
TATA INDICOM 2 2.0 2.0 100.0
Total 100 100.0 100.0
PEOPLE USING DIFFERENT SIM OF DIFFERENT COMPANIES LIKE THE MESSAGE

SCHEME OF RIM MOST. RIM PROVIDE THE MESSAGE SCHEME AT LOWER COST.
 HYPOTHETICLE ANALYSIS:

Here we have to find out the hypothesis of the data we have
collected. We have the following objectives of our study:
1. To study the effect of Reliance schemes on BSNL, TATA,

AIRTEL, IDEA and VODAFONE.
2. To study the customer awareness as well as the satisfaction

level.
For the purpose of Hypothesis we have to considered the effect of

schemes on other companies.
Here we have taken,
STEP 1.
H0 = Prople satisfied with the scheme
H1 = Prople are not satisfied with the scheme
STEP 2.
Here we have to find out the Z value of the data. Which can be find
out by the following formulla.
Z = p^ - p
Here,
First of all we have to find out the value of the p^.
It can be find out as follows:
P^ = X/N
48/100
48%
0.48 Ans.

Now we, we have to find out the value of the q.
Here we assumed that p= 0.46
q = 1 –p
= 1 – 0.46
= 0.54
Now ,
|Z| = p^ - p
= 0.48 – 0.46
So Z = 0.40128
Thus the Hypothesis is accepted.

Cross Tabulation:
SCHEMESHEARDOF * SCHEMESUSED Crosstabulation
SCHEMESUSED
LOCAL+S
PAY 30 TD@1PAI NONE
PAY PER PAY PER PER PAISA/MI SA/SECO OF
CALL MINUTE SECOND NUTE ND THESE Total
SCHEMESHEARDOF PAY PER

3 1 8 2 0 1 15
CALL
PAY PER
0 5 4 0 1 2 12
MINUTE
PAY PER
2 6 20 3 2 2 35
SECOND
30
PAISA/MINUT 0 3 1 10 1 1 16
E
LOCAL+STD@
1PAISA/SECO 0 1 0 3 6 0 10
ND
ALL OF
0 0 4 6 1 1 12
THESE
Total 5 16 37 24 11 7 100
Here we are comparing the people who provide us the answers. We compared the Schemes
heared of and Schemes used by the people.

Chi-Square Test:
Chi-Square Tests
Monte Carlo Sig. (2-

sided) Monte Carlo Sig. (1-sided)
95% Confidence 95% Confidence
Asymp. Interval Interval
Sig. (2- Lower Upper Lower Upper

Value df sided) Sig. Bound Bound Bound Bound Sig.
Pearson Chi-Square 77.842a 25 .000 .000b .000 .030

b
Likelihood Ratio 74.460 25 .000 .000 .000 .030
Fisher's Exact Test 59.938 .000b .000 .030
Linear-by-Linear
11.054c 1 .001 .000b .000 .030 .000 .030 .000b
Association
N of Valid Cases 100
a. 31 cells (86.1%) have expected count less than 5. The minimum expected count is .50.
b. Based on 100 sampled tables with starting seed 2000000.
c. The standardized statistic is 3.325.
Here the calculated value is 77.45 for the chi-square at degree of level of 25 and the table value
is 37.6525. So here the table value is less than the calculated thus the hypothesis is accepted.

Limitation of the project:
 The survey conducted to study the is restricted to the geographic area of specific cities
like Ahmedabad & Gandhinagar.
 In our study we take 5 companies only; due to which We may not get the proper and
accurate results.
 Their may be biases in case of filling questionnaire due to lake of time of customer.
 Here we have considered the schemes introduced before the January. So recently
launched schemes of docomo and all that we have not considered for the project.

Conclusion:
 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.
 RCOMM cellular ltd. An Anil D.Ambani Group of cos. Is very fast catching up with the
market by providing cheaper calling rates. 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.
So, the overall conclusion of the study is:

 Most of the companies are not differentiate themselves so that the switching may
be possible.

 Because of the more competition the price of the product of SIM companies
would be competitive. So ultimately the benefit goes in the hands of the customer.
 Switching barrier would be threat for all the companies as customer attracted by
the scheme provided by other companies.
Findings:
By the way of survey we can come to know:
 People having the different perception regarding the schemes of different mobile
companies.
 In case of message scheme, people using other mobile sim except reliance wants
to switch over to RIM.
 People can be switched over to other mobile companies as per their requirement
because in some cases their expectations doesn’t match with the services and
scheme provided by the companies.

Suggestions and recommendations:
 Companies has to differentiate them self from others. (New Schemes)
 The schemes should be as per the requirement of consumer, they have to compete on the
basis of new and different scheme.
 Right now the company has to make the focus on SMS scheme. Because people using
another SIM also like it.
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.
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 25% of the respondents that there is network problem with RCOMM, on the
other hand they found its competitors viz. Airtel, VODAFONE, TATA Indicom network
connectivity of very good to good level.
Support from company: -

Most of the retailers ensnared that they are supported by the companies’ personnel &
companies’ helpline.
All companies provide POP at right time and in adequate number.
Claim process:-
In case of RCOMM process is be claimed very belatedly i.e. almost 77% of the cases
take 60-90 days, where as in case of Airtel most of the i.e. 88% is being finalized in time
limit 0-30 days.
The claim process services of other competitors viz. AirCel, Vodafone, & Tata Indicom
are almost at par with the IDEA cellular ltd.
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.
1. PROMOTIONAL ACTIVITIES
The company expand the budget allocation for promotional campaign because of
high competition in the market. So it has affected the sale service brand image of
Reliance
There may be some useful tools which can be summrized as follows:-
(1) Advertising – advertising should have a clear objective and message, which has
not been found in recent ads. Reliance is a faster growing provider service in
each state .every offers and schemes they should show with proper message for
benefit to the customer. In busy life customer do not remembered any offers and
which service we can provided for the customer therefore they should by force
showing advertisement in growing market and among customer .customers wants
continuously exposure in Cable and Local newspapers.
(2) Persuasive Advertising :-

Now there is a need of persuasive advertising for Reliance service which can be
moved into the category of “comparative advertising”. It will help the company to
establish the superiority of its brand service through specific comparison of one
or more attributes and features.
(3)Technical Expertise:-
The advertisement should show the companies expertise, experience and pride in
market the product service sale.
Media A combination of print ads and TV commercial do a better job. Local ads
and publicity should be giving more stress. Hoardings, banners, wall painting
should be promoted, as some expenses are also beard by dealers. Ads on Cable
network result greater audience attention. Schemes, gift offers etc. must be
highlighted through Radio and Local newspapers.
(4)Frequency of Advertising:-
The advertisement of Reliance Communication is good but they can’t show it

frequently on TV,Radio or through banners like Vodafone, doccomo, idea.
2. SALES PROMOTION
Cash discount

Premiums
Appointment of sale promoter
Financial schemes
3. 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.
4. 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.
BIBLIOGRAPHY:
 Websites:
• www.telecomtalk.com
• www.rcom.org
• www.airtel.org

• www.indianomics.com
• http://telecomtalk.info/reliance-mobile-once-again-triggers-airtel-on-
roaming-tariff/13511/
• http://telecomtalk.info/reliance-mobile-unveils-two-revolutionary-sms-
tariff-plans/13647/
• http://telecomtalk.info/reliance-mobile-now-triggers-rivals-on-sms-
black-out-days/15217/
• http://telecomtalk.info/all-std-calls-at-39p-with-reliance-mobile/10092/
• http://telecomtalk.info/bsnl-life-time-prepaid-now-cost-rs-10/14263/
• http://telecomtalk.info/bsnl-all-calls-at-49pmin-prepaid-plan-in-
details/14091/
 Books:
 Marketing Research: By Naresh Malhotra.
 Advertisement and Sales Promotion.
1. By kruti shah
2. Alen D’souza

QUESTIONNAIRE
Dear Sir/Madam,
We, the student of S.K. Patel Institute of Management & Computer Studies,
Gandhinagar, are conducting a brief survey to know your views on the “Mobile Schemes”. We
would grateful if you would spend a few minutes to participate in it. We assure you that the
purpose of the study is purely academic.
Kindly extend your cooperation in filling this questionnaire and enable us in doing the survey.
Name:
Occupation:
1.Do you have any Landline/Mobile Connection?

Yes No
2.How many Mobile connections do you have?

One Two More than two
3. Are you a RIM subscriber?
Yes No
4. If No, Then Which company connection you are using?

BSNL Airtel Vodafone Idea Tata Indcom
5. According to You, which company provide cheapest service?
Reliance BSNL Airtel Vodafone Idea Tata Indcom
6. When did you last buy Reliance Scheme/ Other mobile Scheme?
7. How frequently do you use, Reliance Scheme/Any Other Mobile Scheme?
8. Which the following schemes of RIM/ any other companies have you heard of?

9. Which Scheme of Reliance/ any other companies have you used?
10. Which Scheme you like most?
11. Why is that?

12. How do you find out information about Reliance Scheme?
TV………………………………………………………….................
Radio.................................................................................
General newspapers or magazines...................................
Specialist magazines.........................................................
Direct mail.........................................................................
Leaflets.............................................................................
In my local outlet..............................................................
From friends or colleagues................................................
From sales reps.................................................................
From special exhibitions or seminars................................
Other (PLEASE WRITE IN)..................................................
13. How satisfied are you overall with RIM/Other companies?

14.How satisfied are you with the Connectivity of RIM/Other companies?
15. How satisfied are you with the voice clearance of RIM/ Other companies?
16. How satisfied are you with the Network of RIM/ Other companies?

17. How satisfied are you with the Schemes of RIM/ Other companies?
18. How satisfied are you with the Value of the price of RIM/ Other companies?

19.How satisfied are you with the Easily Available of RIM/ Other companies?
20.Are you satisfied about recent message scheme of Reliance/any other

companies?
21. which company’s message scheme do you like most?
Reliance BSNL Airtel Vodafone Idea Tata Indcom
Thank you for taking part in this survey. All your answers will be treated
confidentially. If you have any queries please call...

Counter Attack of Reliance Scheme On Airtel, Idea, Vodafone, BSNL and Tata Indicom"

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Counter Attack of Reliance Scheme On Airtel, Idea, Vodafone, BSNL and Tata Indicom"

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Counter Attack of Reliance Scheme

On Airtel, Idea, Vodafone, Bsnl And Tata

Submitted in the partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

PROF. SONU GUPTA.

S. K. Patel Institute of Management and Computer Studies

Reliance Communication Page 1

Reliance Communication Page 2

Dave DhavalKumar (16)

Parmar Priyanka (122)

Reliance Communication Page 3

PROF. SONU V GUPTA PROF. PRAKASH CHAWLA

DIRECTOR & PROJECT GUIDE CO-ORDINATOR

Reliance Communication Page 4

WE, HEREBY, DECLARE THAT THE MINOR CAPSTONE PROJECT

SUBMITTED BY: SIGNATURE:

DAVE DHAVALKUMAR (16)

PARMAR PRIYANKA (122)

Reliance Communication Page 5

Reliance Communication Page 6

Reliance Communication Page 7

Reliance Communication Page 8

Rationale for selecting this project in telecom sector:

 The project is selected by us because now a days the competition prevailing

 So we wish to study the various schemes outcomes with respect to the

1. To study the customers perception regarding various schemes.

Reliance Communication Page 9

Reliance Communication Page 10

History of Indian Telecommunications

 1881 - Telephone service introduced in India

Reliance Communication Page 11

 1923- Formation of Indian Radio Telegraph Company (IRT)

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

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

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

 1997 Telecom Regulatory Authority of India created.

 2000 DoT becomes a corporation, BSNL

About Telecommunication Industry

Reliance Communication Page 12

 Driven by rising income levels and favorable demographics, India is poised to at

 With increasing network coverage and affordability this growth is expected to

Reliance Communication Page 13

Reliance Communication Page 14

3. Mobile Number Portability

4. New Policy for Value Added Services

7. Increased thrust on telecom equipment manufacturing and exports.

8. Reduction in Mobile Termination Charges.

9. Due to technological advancement and increase in traffic.

Reliance Communication Page 15

There are three types of players

 Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

 Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel,

 On October 1, 2000 the Department of Telecom Operations, Government of India

 BSNL is now India’s leading Telecommunications Company and the largest

Reliance Communication Page 16

 Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting

Reliance Communication Page 17

 In mobile, Bharti’s footprint extends across 15 circles. Bharti Tele-Ventures'

 The company has also been in the forefront of technology induction by

Reliance Communication Page 18

Reliance Communication Page 19

 On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly