KARNATAK UNIVERSITY, DHARWAD

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

REPORT ON

“How to Increase the Sales of the Reliance

GSM
Post paid service”.

STUDY CONDUCTED AT

Mysore

A Project report
Submitted to Karnatak University In partial fulfillment of the
requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
Prashanth S. Anagoudar
MBA08001032

UNDER THE GUIDANCE OF

External Guide INTERNAL GUIDE

Mr.Raghavendra Raikar Prof. Shivappa
Snr. Manager, Retail Business Faculty in Management
Reliance Communications
Mysore
2008-09
 KARNATAK UNIVERSITY, DHARWAD
KOUSALI INSTITUTE OF MANAGEMENT
STUDIES

CERTIFICATE

This is to certify that Mr. Prashanth S Anagoudar student of

2nd semester has completed his Summer Inplant Project entitled
Study on “How to Increase the Sales of Reliance GSM Post paid” at
Reliance Communications Mysore. In partial fulfillment of MBA
degree as prescribed by Karnatak University, Dharwad, during the
academic year 2008-09.

Exam Seat Number: MBA08001032

Internal Guide Dean

&Director

(Prof.SHIVAPPA)
(Dr.A.H.CHACHADI)

Examiners

1. 2.
 DECLARATION

I Prashanth S Anagoudar intern student of Kousali Institute

of Management Studies, Karnatak University Dharwad. hereby declare that
this project report titled “How to Increase the Sales of Reliance GSM post paid
service” undertaken at Reliance Communications Mysore is a record of an
original and independent work carried out by me under the guidance of
Prof. Shivappa

I further declare that this project has not formed the basis for the
award of any other degree /diploma of any other university /institution.

Date: 15.08.2009 Prashanth S

Anagoudar

Place: Mysore MBA08001032

 ACKNOWLEDGEMENT

I would like to express my sincere thanks to all those instrumental in this

project Work. First of all, I would like to thank Prof. Dr. A. H. Chachadi

Director of Kousali Institute of Management Studies Dharwad for

giving me this opportunity to do this project and learn from it. I am thankful

to Reliance Communications Ltd for giving me helpful information to

complete this project (Research).

I express my sincere thanks to my external guide Mr. Raghavendra Raikar

Senior Manager of Retail Business RCom, my interal guide Shri Shivappa

who helped me in every step of the project. I also express my heartfull

thanks to our placement officer Mrs. Kamaksha Kongovi who allotted me

to Reliance Communication. I extend my regards to Mr. Ashish Reliance store

owner who gave information regarding the Reliance Communication products

and Mr. Darshan Relinace Sales executive who helped me in Data collection.

Finally I thank all my family members and friends who gave me moral

support and who helped directly or indirectly for completing this project.

Date:

Place: Mysore Prashanth S

Anagoudar
 CONTENTS

1 Executive Summary 1-3

2 Research methodology 4-6

3 Introduction 7-21

4 Company profile 22-39

5 Data Analysis and 40-45

. interpretation

6 Findings 46-47

7 Suggestions and 48
 Recommendations
8 Conclusion 49

9 Bibliography 50

1 Annexure 51-52

Executive Summary

Indian telecom is more than 165 years old, beginning with the commissioning of the first
telegraph line between Kolkata and Diamond Harbour in 1839. In 1948, India had 0.1
million telephone connections with a telephone density of about 0.02 telephones per
hundred population. As of 2009, there are 403.6 million telephone (including cellular
mobile) connections in the country with a telephone density of 22.86 telephones per
hundred population. Out of total 403.6 million telephone connections, 225.13 million
(nearly 82 percent) connections pertained to wireless and mobile phones.

Indian telecom continued to grow unmindful of any global economic meltdown or

financial crisis. The mobile sector, in fact, broke all its previous records and added a
robust 114 million cellular subscribers between January and December 2008. Leading
into the New Year the streak continued, driven by new forces such as Reliance and Tata
as the duo crossed over from CDMA to GSM, thus adding additional streams of new
subscribers.

Leading GSM operators Bharti Airtel and Vodafone Essar have added 2.8 million and
2.7 million subscribers in April, continuing their respective growth momentum. The
second- largest mobile operator Reliance Communications added over 2-million
subscribers last month, according to data released by telecom regulator Trai GSM
operator Aircel added about 1.1 million new subscribers in April taking its total
subscriber base to 19.5 million. Tata Teleservices, a CDMA operator, added about 0.6
million new users in the given month taking its subscriber base to 35.7 million. Idea
Cellular and Spice Communications together added a notch over 1-million subscribers in
April. State-owned telco MTNL added 47,045 new subscribers in April.

RCOM, the country’s largest telecom operator on CDMA technology platform, had
launched GSM-based services in January with schemes providing free talk time up to Rs
900 and this resulted in its subscriber numbers surging between January-March. The free
scheme was taken away by March-end, which resulted in subscriber additions falling in
April. RCOM had outperformed the industry in these three months, it added 5-million
new users in January and over 3-million new subscribers in February and March. In
comparison, the largest mobile operator, Bharti, added 2.7 million new users each in
January and February 2009 and 2.8 million in March. RCOM now has a mobile
subscriber base of 74.8 million and Vodafone Essar's total subscriber base stands at 71.5
million, while Bharti Airtel leads with 96.7 million total subscribers. Vodafone Essar
also saw a drop of about 0.07 million users in its monthly additions in April and the telco
added just over 2.7-million subscribers as against 2.84 million in March.

The total wireless subscriber base now stands at 403.66 million, while the total telecom
base, which includes that of landline, is 441.47 million, TRAI added. But, the number of
new mobile connections added in April saw a 23% drop compared with 15.64 million
new additions in the previous month.

customers for whom mobile phone is a lifeline to business or lifeline to family members
or those who want to talk more with their family members need better network coverage,
voice clarity, lowest local call rates for the monthly rental for which they are paying and
lower STD call rates for businessmen who have their business with out of state
customers. The Indian connectivity scene has witnessed a dramatic change over the past
couple of years. The scenario changed when big private players like Reliance, Tata and
Bharti entered the Indian telecom sector. Now these majors are coming up with schemes
to attract more customers. Apart from prepaid they are offering better tariffs through post
paid schemes they are coming up with unlimited plans and extra features based on the
customer needs. There are many other cellular service providers apart from Reliance,
Airtel, BSNL and Vodafone like Idea, Aircel and Tata Indicom

In this regard, I have collected both primary data and secondary data. Primary
data through the questionnaire and interview with post paid using customers of Airtel,
BSNL, Vodafone and Idea.

Secondary data is collected through the various websites and visiting Retail stores of the
leading cellular service providers.

The project title is “How to increase the Sales of Reliance GSM Post Paid Service”
completed at Reliance Communications Ltd Mysore. The project is carried out to
determine the factors that influence the respondents to use a particular Cellular Post Paid
Service. The project was to analyze the satisfaction level they get by using the existing
service and also to check out what do respondents feel about this service and to collect
the feedback about Reliance GSM service.

Sample size:

The sample size for the survey was 180. These questionnaires Were filled in by
customers using post paid service of Airtel, BSNL, Vodafone and Idea. Most of the
customers prefer better network coverage, voice clarity and lower call rates and also
want to have free minutes. Customers who are having business are ready to pay monthly
rental with highest amount for which they want to have free minutes to local calls and
STD calls.

Objectives of Research

• To study the factors that influence the respondents to go for a particular cellular
post paid service.
• To understand the reasons whether they are interested in Reliance GSM post paid
service or not.
• To eventually know about the customer’s way of analyzing the post paid service
providers.
• To get awareness about Reliance GSM service to the customers.

Research Methodology

Descriptive Research

The research undertaken is mainly Descriptive Research as the study is to know

the buying behaviour of customers for the post paid service that are prevailing in the
market and their opinion towards Reliance GSM cellular service.

Sampling Process

Population Element: The research was conducted on the people who are currently
using the post paid connection of BSNL, Airtel, Vodafone and Idea

Sample size:
The total sample size consists of 180 customers.

Sampling Method:-

Non Probability: The customers Were randomly selected according to

convenience and the data is collected from them by standing near the particular retail
stores.

Data Collection:

For the research purpose the data is collected in the form of Primary data and
Secondary data.

 Primary data is collected in the form of Structured Questionnaire.

 Secondary data is collected from various Boucher’s, leaflets, pamphlets and
Websites.
Primary Data:-

Primary data is collected through direct interviews with the customers using post
paid service of various cellular providers except Reliance Communication in Mysore
city. The data is collected on the basis of the requirement of the research and asking
customers to fill the questionnaire which is prepared according to the objectives of the
research.

Secondary data:-

The secondary data is collected from various Business, Magazines, and news
papers and even from different websites related to Mobile services. Some of the
websites referred are as follows

www.google.com

www.rcom.com

www.airtel.in

www.vodafone.in
Major Limitations:-

 Many customers didn’t responded well as the survey is conducted by standing

near retail stores during their bill payment, so it was difficult to collect the
required data.
 There might be some bias in the data collected due to the huge population.
 Awareness about the brands in Reliance GSM was low.
 Most of the customers are do not know the difference between CDMA and
GSM cellular service.

Major findings:

There are large number of post paid users exist in Mysore, Reliance has
recently launched its GSM service so to increase the sales of the Reliance GSM post
paid service the opinion of the post paid users has been collected by survey, there some
of the findings are customers want to have post paid of cellular service which is having
total network coverage, freedom in handset selection here still they are not know the
difference between the CDMA and GSM service, the customers want to have post paid
which gives more free minutes of talk time for the local calls and SMS to local
numbers apart from that I found that some of the customers are not aware of the tariff
plan which they are using at the present and what is the call rate and monthly rental of
that post paid simply they are using that service and some complained that there are
some hidden charges even when they don’t call they are being charged without
 providing any service. Some customers told that they will not get network while they
are traveling and they are not happy with this.

Introduction

Major Players

There are three types of players in telecom services:

• -State owned companies (BSNL and MTNL)

• -Private Indian owned companies (Reliance communications, 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 toprovide a telephone density of 9.9 per hundred by March 2007. BSNL, which
became the third operator of GSM mobile services in most circles, is now planning to
overtake Bharti to become the largest GSM operator in the country. BSNL is also the
largest operator in the Internet market, with a share of 21 per cent of the entire subscriber
base

BHARTI

Established in 1985, Bharti has been a pioneering force in the telecom sector with
any 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 Communications—in
mobile services. MTNL recorded sales of Rs.60.2 billion ($1.38 billion) in the year
2002-03, a decline of 5.8 per cent over the previous year’s annual turnover of Rs.63.92
billion.

RELIANCE COMMUNICATIONS

Reliance is a $16 billion integrated oil exploration to refinery to power and

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

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group, which has 93
companies, over 200,000 employees and more than 2.3 million shareholders. Tata
Teleservices provides basic (fixed line services), using CDMA technology in six circles:
Maharashtra (including Mumbai), 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 ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage
charges) regime. The new licenses, coupled with the six circles in which it already
operates, virtually gives the CDMA mobile operator a national footprint that is almost on
par with BSNL and Reliance Communications. The company hopes to start off services
in these 11 new circles by August 2004. These circles include Bihar, Haryana, Himachal
Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and
West Bengal.

VSNL
 On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly
Government owned corporation - was born as successor to OCS. The company operates
a network of earth stations, switches, submarine cable systems, and value added service
nodes to provide a range of basic and value added services and has a dedicated work
force of about 2000 employees. VSNL's main gateway centers are located at Mumbai,
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-RELIANCE COMMUNICATIONS -2 and SEA-ME-RELIANCE
COMMUNICATIONS -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 Teleservices 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 license 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 and now it is having 22.16 million customer
base.

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 Reliance Communications stern 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 .

The telecom services have been recognized the world-over as an important tool for
socio-economic development for a nation. It is one of the prime support services needed
for rapid growth and modernization of various sectors of the economy. Indian
telecommunication sector has undergone a major process of transformation through
significant policy reforms, particularly beginning with the announcement of NTP 1994
and was subsequently re-emphasized and carried forward under NTP 1999. Driven by
various policy initiatives, the Indian telecom sector witnessed a complete transformation
in the last decade. It has achieved a phenomenal growth during the last few years and is
poised to take a big leap in the future also.

The fast track growth of the Indian telecom industry has made it a key contributor to
India’s progress. India adopted a phased approach for reforming the telecom sector right
from the beginning. Privatization was gradually introduced, first in value-added services,
followed by cellular and basic services. An independent regulatory body, Telecom
Regulatory Authority of India (TRAI), was established to deal with competition in a
balanced manner. This gradual and thoughtful reform process in India has favoured
industry growth. Today, there are more than 403.66 million telecom subscribers in India.
Every month, 6-7 million new subscribers are added. Upcoming services such as 3G and

WiMax will help to further augment the growth rate. Furthermore, the Indian economy is
slated to sustain its 7-9 per cent growth rate in the near future. This is supported by the
political stability that the country is experiencing currently. India’s demographic outlook
makes it one of the largest markets in the world. A conducive business environment is
also created by a favorable regulatory regime. There exists enormous business potential
for telecom companies on account of the country’s low teledensity, which is close to 19
per cent presently. The Indian telecom industry is growing at the fastest pace in the
world and India is projected to be the second largest telecom market globally by 2010.
The Indian telecom market generated revenues of approximately US$ 20 billion in 2006-
07. The market witnessed a growth rate of 33 per cent over the last year and recorded a
CAGR of 22 per cent for the period 2002-03 to 2006-07. This growth has resulted in
doubling the revenues of the telecom segment in the past three years. Further, it is
expected that the industry will generate revenues worth US$ 43 billion by 2009-10.

Basic services encompass fixed wire line and Wireless in Local Loop (WLL-fixed)
services. BSNL and MTNL are the two largest operators in this segment. MTNL is
present in Delhi and Mumbai, whereas BSNL covers the rest of the country. Though
private players, such as Bharti and Reliance, have registered notable growth, the
Government-owned BSNL dominates the segment in terms of subscriber base
History of Indian Telecommunications

Year

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

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

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

1947 Nationalization of all foreign telecommunication companies to form the

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

1985 Department of Telecommunications (DOT) established, an exclusive

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

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

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

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

MISSION, AIMS AND OBJECTIVES
Preamble

The Telecom Regulatory Authority of India (TRAI) has always endeavored to encourage
greater competition in the telecom sector together with better quality and affordable
prices in order to meet the objectives of New Telecom Policy, 1999. Vide a Notification
dated 9th January, 2004 of the Government; Broadcasting and Cable Services also have
been brought within the definition of

‘telecommunication service’ in terms of section 2(k) of the Telecom Regulatory

Authority of India Act, 1997 as amended by the TRAI (Amendment) Act, 2000. A
number of policy initiatives Were taken in 2007-2008 to transform the telecom sector
including the broadcasting and cable services to extend the scope, availability and reach
of these services in India.

Mission of TRAI

TRAI’s mission is to create and nurture conditions for the growth of telecommunications
including broadcasting and cable services in the country in a manner and at a pace which
will enable India to play a leading role in the emerging global information society.

Aims and Objectives of TRAI

The goals and objectives of TRAI are focused towards providing a regulatory regime that
facilitates achievement of the objectives of the New Telecom Policy (NTP) 1999. As
shown by the various initiatives mentioned later in this Report, the goals and objectives
of TRAI are as follows:

 Increasing tele- density and access to telecommunications in the country at

affordable prices,
 Making available telecommunication services which in terms of range, price and
quality are comparable to the best in the world,
 Providing a fair and transparent policy environment which promotes a level
playing field and facilitates fair competition,
 Establishing an interconnection regime that allows fair, transparent, prompt and
equitable interconnection,
  Re-balancing tariffs so that the objectives of affordability and operator viability
are met in a consistent manner,
 Protecting the interest of consumers and addressing general consumer concerns
relating to availability, pricing and quality of service and other matters,
 Monitoring the quality of service provided by the various operators,
 Providing a mechanism for funding of net cost areas/ public telephones so that
Universal Service Obligations are discharged by telecom operators for spread of
telecom facilities in remote and rural areas,
 Preparing the grounds for smooth transition to an era of convergence of services
and technologies,
 Promoting the growth of coverage of radio in India through commercial and non-
commercial channels,
 Increasing consumer choice in reception of TV channels and choosing the
operator who would provide television and other related services.

A decade of journey towards excellence in telecommunications

o India became the second largest wireless network in the world, overtaking
the USA and second only to China, with addition of about 8 million
subscribers every month in the recent times.
o Subscriber base reached 300.49 million as on 31st March 2008 as
compared to 14.88 million for the same period in 1997.
o Tele density of 26.22 as on 31st March 2008 as compared to 2.30 for the
same period in 1998 – much ahead of the teledensity target set under
NTP, 1999 of 15 by the year 2010.
o Rural teledensity at the end of March 2008 was 9.20 as compared to 0.40
for the same period in 1998 – which too is much ahead of the NTP, 1999
target of 4 by the year 2010.
o Decline in Tariffs:

 Local call tariff for mobile @ Rs. 15.00 is now less than Re.
1.00
  One minute STD call between Delhi and Mumbai at the rate
of Rs.37.00 now cost Re. 1.00 i.e. at the rate of local call

 ISD call to American continent @ Rs. 75.00 now costs less

than Rs. 7.00
o Subscriber base of internet reached 11.09 million on 31st March 2008 as
compared to 0.09 million in 1997
o Putting in place Interconnection and Cost Based Interconnection Usage Charges
regime.
o Introduction, continuation and phasing out of Access Deficit Charges regime
o Introduction of Calling Party Pay regime
o Introduction of Mobile Termination Charges, which is lowest in the world
o Putting in place Tariff Order regime with the issue of Telecom Tariff Order 1999
and shift to a regime of tariff de-regulation in gradual manner.
o Important Recommendations on USO, Spectrum issues, Broadband, Internet
Telephony, Growth of Telecom Sector in Rural areas facilitating the Government
to formulate policies on these issues.
o Putting in place a regulatory framework in the Broadcasting & Cable Sector after
the same was brought within the purview of TRAI in January 2004
o Successful roll out of Conditional Access System (CAS) in the metro city of
Delhi, Mumbai, Chennai and Kolkata
o Introduction of Tariff and Interconnection regime for the Broadcasting & Cable
Sector.
o Tariff ceiling for cable subscribers in Non-CAS areas
o Ensuring orderly growth of the sector with a Consumer Centric approach
o Engaging consumer Advocacy Groups (CAGs) & NGOs in regulation of the
telecom sector and regular interaction
o Establishment of three tier consumer grievances redressal mechanism
o Establishment of Telecommunication Consumers Education and Protection Fund
o Putting in place a mechanism for restricting unsolicited commercial
communications
Indian telecom subscriber base

year No in million

2002-03 53

2003-04 76

2004-05 98.4

2005-06 140.3

2006-07 206

2007-08 225

2008-09 403.6

T e le c o m s u b s c rib e r b a s e o f In d ia

450
400
350
300
250
200
150 No in m illio n
100
50
0
2002- 2003-2004- 2005-2006- 2007-2008-
03 04 05 06 07 08 09
ye a r
Major GSM service providers of Indian Telecom sector and their
market share

Market share of GSM service providers

GSM service provider market share in %

Bharti 30.83

BSNL 22.77

Vodafone 21.95

Idea 11.63

Aircel 4.57

Reliance 2.81

MTNL 2.28

Spice 2.27

BPL 0.89

M ark et s ha re of G S M s ervic e providers m a rk et s hare in %

1%
2%
2% B harti
5% 3%
30% B S NL
12% H utc h
Idea
A irc el
R elian c e
M TN L
22% S pic e
23% BPL
Market share of CDMA service providers

CDMA service provider market

share in %

Reliance 55.15

Tata Tele service 35.89

BSNL 7.95

MTNL 0.45

HFCL 0.34

Shyam Tele link 0.22

market share in %

0.22
0.34
0.45
7.95 Reliance 55.15%
Tata Teleservice 35.89%
BSNL 7.95%

35.89 MTNL 0.45%

55.15
HFCL 0.34%
Shyam Telilink 0.22%

Mobile Services
Mobile services have led the spectacular growth of the Indian telecom industry.
Currently, 12 players are active in this segment. The total number of wireless subscribers
escalated to 185.13 million by the end of June 2007, with the monthly addition of more
than 6 million wireless subscribers. GSM continues to dominate this segment by a large
margin as compared to CDMA, which has a share of only 23 per cent.
 p e r ce ntage of GSM an d C DM A

27%

GSM
CDMA

73%

India is one of the few countries in the world to have more GSM subscribers than fixed
line subscribers. All the operators predominantly provide voice services, value added and
data services such as SMS, mobile internet service, email, chatting, conferencing, GPRS
service, etc. Services such as video conferencing and Closed User Group (CUG) facility
are also gaining momentum.

Reliance is the market leader in the CDMA service but Indian Telecom industry is lead
by the GSM service which is having 73% market share compared to 23% that of CDMA,
because of this Reliance decided to enter into GSM service. At present the GSM mobile
service market is lead by Airtel and BSNL.

Some of the competitors of Reliance GSM service are Airtel, BSNL, Hutch and Idea
because of stiff competition in the market Reliance is offering post paid connection at
lowest monthly rental of Rs-199 and call rates at Rs-0.3 per local and Rs-0.6 per STD. I
was been assigned to collect the feedback for this post paid connection and whether they
want to shift to Reliance GSM or not.
BRIEF STUDY OF THE ORGANIZATION

Over view of Reliance Communications

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
Communications) 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 Communications (information and
communication) value chain, including infrastructure and services — for enterprises as
Well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates and

networks, truly

Vision of Reliance Communications

“Reliance Communications will leverage its strengths to execute complex global-scale

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

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

Reliance Communications will also generate value for Reliance Communications

capabilities beyond Indian borders and enable millions of India's knowledge workers to
deliver service globally.
Iii

Mile stones of Reliance Communications

In the year 1999
The Reality, November 15 Reliance Communications begins Project Planning

The Dream, 1999

"Make a phone call cheaper than a postcard and you will usher in a revolutionary
transformation in the lives of millions of Indians" - Dhirubhai Ambani

In the year 2008

January 12 Wereceives Start-up GSM Spectrum

Chairman’s profile

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-
2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is
India's foremost truly integrated telecommunications service provider. With a customer
base of over 36 million including close to one million individual overseas retail
customers, Reliance Communications ranks among the top ten Asian Telecom
companies. Its corporate clientele includes 600 Indian, 250 multinational corporations
and over 200 global carriers and owns and operates the world's largest next generation,
IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fiber optic
cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Regarded
as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 48,
is the chairman of all listed companies of the Reliance ADA Group, amely, Reliance
Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources.

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

Communications Technology, Gandhinagar An MBA from the Wharton School of the
University of Pennsylvania, Shri Ambani is redited with pioneering several financial
innovations in the Indian capital markets.

He spearheaded the country’s first forays into overseas capital markets with international
public offerings of global depositary receipts, convertibles and bonds. Under his
chairmanship, the constituent companies of the Reliance ADA group have raised nearly
US$ 3 billion from global financial markets in a period of less than 15 months. Shri
Ambani has been associated with a number of prestigious academic institutions in India
and abroad.

He is currently a member of:

· Wharton Board of Overseers, the Wharton School, USA

· Board of Governors, Indian Institute of Management (IIM), Ahmedabad

· Board of Governors, Indian Institute of Technology (IIT), Kanpur

· Executive Board, Indian School of Business (ISB), Hyderabad

Select Awards and Achievements

· Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India – TNS,

December 2006

· Voted the ‘Best role model’ among business leaders in the biannual Mood of the

Nation poll conducted by India Today magazine, August 2006

· Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards

· Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002

· Awarded the First Wharton Indian Alumni Award by the Wharton India Economic

Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a

global leader in many of its business areas, December 2001 Selected by Asia week
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.

ORGANIZATIONAL SET UP
Reliance Communication Limited

CHAIRMAN

PRESIDENT PRESIDENT PRESIDENT

PRESONAL ENTERPRISES HOME
BUSINESS BUSINESS BUSINESS

SENIOR
V.P

V.P

GM

DGM

AGM

SENIOR
MANAGER

MANAGER

DEPUTY
MANAGER

ASST.

MANAGER MANAGEMENT TRAINEE

Reliance Anil Dhirubhai Ambani Group Companies

 Code of Conduct (adopted by the Company)

Reliance – Anil Dhirubhai Ambani Group of Companies continually reviews corporate

governance best practices to ensure that they reflect global developments. It takes
feedback into account, in its periodic reviews of the guidelines to ensure their continuing
relevance, effectiveness and responsiveness to the needs of local and international
investors and other stakeholders.

The Code of Conduct(s) and Business Policies adopted by the Reliance – Anil Dhirubhai
Ambani Group

(ADAG) Companies are given here.

1. Values and Commitments

2. Code of Ethics

3. Business Policies

4. Ethics Management

5. Prevention of Sexual Harassment

6. Policy on Insider Trading

1. Values and Commitments

Introduction

Every significant management decision has ethical value dimensions. Managing ethics is
particularly relevant for Reliance – ADAG Companies today because it is critical to
understand and manage highly diverse values in the workplace. Attention to business
ethics is critical during times of fundamental change – times much like those faced now
by businesses like Reliance Communications s. In times of such fundamental change,
values that Were previously taken for granted are now strongly questioned. Many of
these values are no longer followed.

Consequently, there is no clear compass to guide us through complex dilemmas about

what is right or wrong.
To that end, Reliance – ADAG Companies’ Values and Commitments are presented
here. These should be used to guide Reliance Communications actions in business
conduct.

Ethics and Values at Reliance – ADAG Companies

Background

At Reliance – ADAG Companies, the issue of ethics is simple: it is a simple process that
involves defining what is right or wrong, and then doing the right thing. Ethics
Management at Reliance – ADAG Companies is about values and associated behaviors.
It is a process of defining values and ensuring that corporate and individual employee
behaviors epitomize those values.

At Reliance – ADAG Companies believe that any business conduct can be ethical
only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness,
Purposefulness, Trust, Responsibility, Citizenship and Caring. Strong commitments to
these high values have long been building principles for Reliance – ADAG Companies.
These values are not to be lost sight of by anyone at Reliance – ADAG Companies under
any circumstances irrespective of the goals that are intended to be achieved. To us,
means are as important as the ends. Though the deeper significance of these values for us
cannot be captured in words, a brief description of what Wereally feel about these virtues
is outlined below:

Honesty

Reliance Communications are committed to be truthful in all Reliance Communications

actions. Reliance Communications strive to be honest and forthright with one another
and with all Reliance Communications stakeholders.

Integrity

Reliance – ADAG Companies insists on honesty, integrity and fairness in all aspects of
its business and expects the same in its relationships with all those with it does business.

There exists a clear vision and picture of integrity throughout Reliance – ADAG
Companies. We reward and promotion systems are aligned with this vision of integrity.
Upholding the Reliance – ADAG Companies reputation is paramount. Reliance
Communications are judged by how Reliance Communications act. Reliance
Communications reputation will be upheld if Reliance Communications act with
integrity in all Reliance Communications dealings, even at a personal level, and
Reliance Communications always do what Reliance Communications think is right a t
all times. Reliance Communications say what Reliance Communications mean, and
deliver what Reliance Communications promise and promise to stand for what is right.
Reliance Communications always honor all Reliance Communications commitments.
Reliance Communications stand for loyalty and trustworthiness.

Respect

Reliance Communications are committed to treat everyone fairly and with respect and
dignity. Reliance Communications appreciate and value the skills, strengths, and
perspectives of Reliance Communications diverse workforce. Werequest the uniqueness
of each employee. Reliance Communications believe that each employee makes a
meaningful contribution in Reliance – ADAG Companies’ success.

Fairness

Reliance – ADAG Companies is firmly committed to fairness and objectivity in all its
action and interactions. Justice and fairness imbibed in the Organization’s fabric ensure
procedural fairness, impartiality and consistency in Reliance – ADAG Companies
operations.

Purposefulness

Reliance – ADAG Companies sees its activities in terms of higher purposes and ideals.
This purposefulness is a way of operating which ties Reliance – ADAG Companies to its
environment at a mutually beneficial dimension.

Trust

Reliance Communications endeavor to foster a participatory work environment where

trust and confidence bet Reliance Communications en team members is spontaneous.
Reliance Communications always encourage teamwork with open, candid and speedy
communication.

Responsibility
Reliance Communications employees are expected to demonstrate highest levels of
personal responsibility and continually affirm that they are responsible to themselves for
the pursuit of excellence. At Reliance – ADAG Companies accountability is individual
rather than collective. Reliance Communications employees are committed and
enthusiastic to assume responsibility for actions for the organization.

Citizenship

They are a fiercely patriotic company, fully committed to achieving and participating in
every conceivable way in the progress and integrity of India. Reliance Communications
is committed to obey all the laws of India and the countries in which Reliance
Communications do business and to do Reliance Communications part to make the
communities in which Reliance Communications live better.

Caring

Compassion, sharing and kindness are values and try to inculcate in Reliance
Communications decision making process to achieve fairness. It is imperative that each
one of us gets intensely driven from the heart towards upholding of these values in
Reliance Communications day to day conduct. This initiative will further stimulate the
creation and maintenance of a highly ethical work environment.

Commitments

Background

A firm belief that every Reliance – ADAG Companies team member holds is that the
other person’s interests count as much as his / her own. It is not surprising that Reliance
– ADAG Companies has always been able to strike a mutually profitable equilibrium
with ease while interacting with diverse internal and external stakeholder groups.
Reliance – ADAG Companies strives to make the good of these diverse stakeholder
groups as part of its good. Reliance – ADAG Companies recognizes that maintaining the
trust and confidence of all its stakeholders is crucial to its continued growth and success.
Reliance Communications are aware that a company must be an integral part of the
society in which it operates: that it must fulfill a number of different expectations –
financial, social and environmental: and that there is no substitute to being right.
Employees seek success by being sensitive and alive to the interests and concerns of
others in the society, and by working constructively with them to find solutions of
mutual benefit. In pursuit of these values outlines above, Reliance Communications are
committed to the ethical treatment of all Reliance Communications stakeholders.

Commitment to Stakeholders

In all Werelationships Reliance Communications demonstrate Reliance Communications

steadfast commitment to all Reliance Communications stakeholders:

Reliance Communications employees

Reliance – ADAG Companies recognize that its commercial success depends on the full
commitment of all employees. Reliance Communications are committed to respect the
human rights of Reliance Communications employees. Reliance Communications strive
to treat Reliance Communications employees with honesty, just management, due
dignity and fairness. Reliance Communications are committed to provide Reliance
Communications employees with a good, safe and healthy environment and competitive
terms and conditions of service.

Reliance – ADAG Companies promotes the development and best use of human talent. It
encourages the involvement of employees in the planning, direction and fair appraisal of
their work. The employees are also encouraged to participate in the application of these
ethics and values within the company.

Reliance Communications customers

Reliance Communications are committed to produce reliable, world-class quality

products and services, delivered on time, at a fair price. Reliance – ADAG Companies
strives to win and maintain customers by developing and providing products and services
which offer value in terms of price, quality, safety and environmental impact, which are
supported by the requisite technological, environmental and commercial expertise.

Reliance Communications environment

Reliance – ADAG Companies are committed to acting as a concerned and responsible

community participant reflecting all aspects of good corporate citizenship. Reliance –
ADAG Companies are committed to achieving the global standards of health, safety and
environment. Reliance – ADAG Companies works with its community by volunteering
and supporting education, medical Reliance Communications lfare and other worthy
causes that lead to sustainable development.

Reliance Communications shareholders

Reliance Communications are committed to pursuing sound growth and earnings

objectives and to exercising prudence in the use of Reliance Communications assets and
resources. Enhancing shareholder value remains the prime driving force of Reliance –
ADAG Companies’ business and financial decisions. Reliance Communications will
ensure Reliance Communications success by satisfying Reliance Communications
customers and increasing shareholder value.

Reliance Communications lenders and other investors

Reliance Communications are committed to truthful disclosure of all material facts and
the regular and timely payment of all Reliance Communications debt service obligations.

Reliance Communications Suppliers and other service providers

Reliance Communications are committed to fair competition and the sense of

responsibility required of a good customer.

The government

Reliance – ADAG Companies are fiercely patriotic company and is enthused and proud
to be a home grown enterprise.

Reliance Communications are committed to the payment of all-applicable taxes and

duties and adherence to all applicable laws and regulations.

2. Policy on Code of Ethics

Background

Reliance – RELIANCE – ADAG Companies’ Code of Ethics is in alignment with its

values and commitments. The essence of this code is that each employee should conduct
the Company’s business in a way that upholds its values and commitments. This code
expects every employee to conduct business with integrity, in compliance with
applicable laws, and in a manner that excludes consideration of direct or indirect
personal advantage / gains. It is the individual responsibility of each one of Reliance –
RELIANCE – ADAG Companies’ employee to ensure that all of us are aware of these
values, commitments, and procedures, and behave in accordance with the spirit as Well
as the letter of this code.

Reliance – ADAG Companies recognize that it is vital that the behaviour of its
employees matches the high intentions and values. Hence, adherence to all the elements
of this code and the accompanying principles and procedures is necessary. The principles
and procedures in this Code of Ethics apply to all material transactions, large or small,
and describe the conduct expected from every Reliance – ADAG Companies’ employee.

Issues dealt with by Reliance – ADAG Companies’ Code of

Ethics

 Code of Ethics contains the policy on the following:

 Conflict of Interest
 Payments and Gifting
 Receipt of Gifts
 Purchases through suppliers and other service providers
 Regarding full-time consultants, agents, representatives and others
 Political Contributions

CONCEPT OF RELIANCE COMMUNICATION

Anil Ambani: Telecom person of the year 2007

His marketing strategy has made millions of Indians happy, they got the best mobile
tariffs in the world-local call costs at 15 paise/minute, and STD call at 40 paise/minute
When the VOICE&DATA jury, comprising eminent professionals from the telecom
field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-hour
Communications selection process was steamy. The reason was obvious: The telecom
sector is growing faster than any other segment and naturally their CEOs have a lot to
crow about. The jury had to select one from three CEOs, who had made it to the final list
through nominations from the industry and the initial scrutiny. Among the three, one of
the main contenders was a young CEO. The jury decided that he should come back next
year to try and win the coveted award. The list now had two names-both CEOs of two
Well-known companies. The pivotal difference between the two: one is an entrepreneur
and the other is not so popular, as his credit is shared among a number of his big daddies.
Following a five-hour closely held, hotly debated discussion, the name was announced:
Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil Ambani joined
Reliance Industries (currently promoted by his brother Mukesh Ambani, following their
split) in 1983 as co-chief executive officer. Forbes ranked him number 104 among the
World's Richest People in 2006. The Ambani family faced criticism when it announced
its ambitious plans to build a countrywide telecom network, as its prior expertise lay in
commodities-textiles and petrochemicals business only. Apart from that telecom needs a
service-oriented mindset, critics felt. What they did not remember was how the family
had served its millions of shareholders. Policies in India are made in line with Ambani's
vision, says an industry expert. His business acumen and closeness to politicians assisted
him in making it to the Rajya Sabha in June 2004, as an independent member. Ambani
chose to resign voluntarily on March 25, 2006. The same association with politicos gave
him negative returns too when the Mayawati Government in Uttar Pradesh put a spanner
on his ambitious plans to build a 1,200-acre SEZ. Media sees his aggression when he
announces financial results for the Reliance ADA group of companies, and when he
attends the annual general meetings and faces questions from shareholders. When he
meets the press, he has answers to all their questions. He also remembers to call select
journalists by name. To merchant bankers he, who has already contributed immensely to
the financial reforms of the country, is one of the financial wizards of the world. May be
because of his expertise, he gave up in the race to grab Hutchison Essar stake, after
indirectly jacking up the valuation. His negotiations with the Qualcomm chief are also a
folk theory now.
How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What
are his personal and organizational achievements in the recent past? His path-breaking
marketing strategy that was put in by the strongest team of telecom professionals the
country has ever seen has made millions of Indians happy as they got the best mobile
tariffs in the world. The aggression resulted to adding to his already swollen kitty. Every
hour India will be adding around 20,000 new mobile customers and Reliance
Communications over 4,000. When mobile telephony first began in India, a local call
cost Rs 16 per minute; an STD Rs 50; and a call to the US Rs 100 per minute. With
Reliance Communication’s pioneering price initiative, a local call now costs a mere 15
paise per minute, STD 40 paise, and a call to the US costs less than Rs 2 per minute. The
presence of Reliance Communications is making the competition in India panicky.
Global telecom forces will also shortly start feeling the heat. Ambani has also recently
announced his Rs 1,200 crore buyout of Yipes Holdings.

Achiever's Pride

· Undertook financial restructuring of Reliance communications

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

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

· Launched the lowest-cost classic brand handset at Rs 777

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

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

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

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

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

· Market capitalization crossed Rs 100,000 crore

· Will add 23,000 more to Reliance Communications

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

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

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

registering a 60% growth. This makes it one of the top two wireless operators in India.
"Economic growth in the future will be indexed to connectivity of millions of enterprise
and individual customers. Over the next few years, Reliance Communications will have
over 100 million customers, making us one of the top 5 telecom players in the world. In
four years, Reliance Communications put up a total of 14,000 to Reliance
Communications across the country. This year alone Reliance Communications will add
23,000 more to Reliance Communications. Reliance Communications wireless network
is currently available in 10,000 towns. By the end of this year, it will be available in over
23,000 towns and 600,000 villages," Anil Ambani said at the first annual general
meeting of Reliance Communications since the re-organization of the Reliance Group in
June 2005.

"In years of operations, Reliance Communications invested around Rs 32,000

crore. This year alone Reliance Communications will invest over Rs 20,000 crore. At the
end of this year, Reliance Communications will have covered over 90% of Reliance
Communications population. If Version 1.0 of the Indian telecom story was all about
affordability, Version 2.0 will be about reach. Reliance Communications Network
expansion will give us the power to drive the market and stay ahead of the curve,"
Ambani adds. According to Ambani, the financial restructuring of Reliance
Communications is the biggest turnaround story in the history of corporate India. The
inherited ownership structure of Reliance Communications was complex. The
reorganization has yielded a simple, fair, and transparent ownership structure, and given
Reliance Communications 100% ownership of all operational and associate companies.
Reliance Communications is now among the three most valuable private sector
companies in India, and the five most valuable telecom companies in Asia. In the current
Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and
strengthen its network coverage across India and the rest of the world.

In addition to organic growth, Reliance Communications will leverage the

advantages derived from this impressive financial platform to explore and pursue any
significant opportunities available in the telecommunications sector. "Reliance
Communications are currently evaluating a number of inorganic opportunities in select
international markets to further expand Reliance Communications footprint," Ambani
said. Reliance Communication’s One India,. The company was the first one to break the
Rs 1,000 entry-barrier with the launch of the Reliance Communications low cost classic
brand handset at Rs 777. As per its expansion plan, Reliance Communications will have
the single largest wireless network in the world, covering over 900 mn Indians or more
than 15% of the global population. It will cover 23,000 towns or every single Indian
habitation with a population of over 1,000. Reliance Communications will cover almost
100% of all rail routes, providing seamless voice, video, radio, and Internet connectivity
to 14 mn commuters every day. It will also cover almost 100% of all national highways,
and 84% of all state highways, giving millions of users the Reliance Communications r
to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of
India's 2,00,000-km-long road network.

Having achieved tremendous growth, the main challenge for Reliance

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

AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance Communications (formerly Reliance Communications Ventures) is one of
India's largest providers of integrated communications services. The company has more
than 20 million customers and serves individual consumers, enterprises, and carriers,
providing wireless, wire line, 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 Communications 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
Communications) 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 Communications
(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. Reliance Communications will
leverage Reliance Communications strengths to execute complex global-scale projects to
facilitate leading-edge information and communication services affordable to all
individual consumers and businesses in India. Reliance Communications will offer
unparalleled value to create customer delight and enhance business productivity.
Reliance Communications will also generate value for Reliance Communications
capabilities beyond Indian borders and enable millions of India's knowledge workers to
deliver their services globally.
Products and Service offered by Reliance communications

Some of the products that are offered by Reliance communications are as follows

1. Reliance CDMA mobile service

2. Reliance GSM mobile service
3. Reliance Broadband+ Net connect
4. Reliance Hello Desk Phone Fixed line service
5. Reliance Big TV
6. Reliance CDMA 1x net connect
 Analysis of the data

In the questionnaire respondent was asked to fill their occupation to know that
customers with what occupation prefer post paid and what plan they want to
have.

Occupation of the post paid Number of the post paid users

users

Business 79

Employees 82

Student 19

Interpretation of the data

Out of 180 respondents 82 respondents are employees and 79 respondents are

businessmen and 19 respondents Were students who are doing their degree, by this
Reliance Communications can say companies can concentrate on employees of different
companies whose work depends on mobile phone.
Which cellular service does the customer prefer and who is the major competitor
for the Reliance communication

Cellular service Number of the

used by the respondents
respondents

Airtel 146

BSNL 13

Idea 10

Vodafone 11

Out of 180 respondents 146 respondents using Airtel, 13 are using BSNL, 10 are using
Idea and 11 are using Vodafone. Since I have selected more no Airtel stores for my
survey because it is a market leader

The next question asked how much monthly rental they for the post paid which they are
using presently

Monthly Rental paid by Number of the

the respondents respondents

Rs-299 and above 78

Rs-299 41

Rs-249 42

Rs-199 18

No idea 1

Out of the 180 respondents 78 of the respondents pay the monthly rental of Rs-299 and
above, 41 of the repondents pay monthly rental of Rs-299 , 42 respondents pay monthly
rental of Rs-249, 18 respondents pay a monthly rental of Rs-199 and only one respondent
has no idea about the renatl paid by him.
By this Reliance Communications can conclude that customers are paying higher
montly rental for getting lower call rates. Reliance Communications can create awreness
about the lower monthly rental and lower rates which can help in increasing the sales

In questionnarier the respondent was asked about the satisfaction level of the customers
out of the 180 respondents 133 respondents are satisfied with the monthly rental and call
rates of the post paid what they are using at present and 47 respondents are not satisfied
with post paid service because of higher monthly rental and network problems.

Satisfaction level of Number of

the customers respondents

Yes 133

NO 47

The respondents are asked whether they are aware of reliance GSM service or not. In
that I came to know that all most all the customers are of Reliance GSM service but they
don’t want to go for that because they don’t want to change their number and network
problem.
Awareness about No of
Reliance GSM respondents
service

Yes 145

No 35

Finally in the questionnaire the respondents are asked whether they are interested in
Reliance GSM post paid service or not, the following response is collected from the
respondents.
Interested in Reliance No of respondents
GSM post paid

Yes 24

No 123

Will see in future 32

Out of 180 respondents only 24 respondents said they are interested in Reliance GSM
service and they want to change to Reliance GSM service, 120 respondents said that they
don’t want to change from the existing service because they believe that if they change to
other service then they will lose their business. Reliance has to offer Service to the
customers with the same number it is possible only through 3rd generation technology.
 Findings from the survey

• From the survey I came to know that customers are interested in Airtel they
believe that Airtel has got better network coverage compared to other operates
• Customers say that Airtel has got good voice clarity
• Customer think that there is no freedom in hand selection if they go for Reliance
this is happening because of lack awareness of Reliance GSM service to the
customers
• Most of the customers from Airtel are paying Rs-299 and above monthly rental
for the service when the service from other operators is available at Rs-249 and
Rs-199
• Some of the customers are unaware of the monthly rental what they are paying to
the service and some are not aware of the call rate of their post paid.
• Customers want to have a post paid service which can offer call rate at 30ps and
which must have better network coverage.
• Most of the post paid users are employees whose work depends on phone calls
and remaining are Businessmen who make most of the use of the post paid only
few are students who use post paid service.
• Customers don’t want to shift to other post paid service if it offers service at
lower rates because they don’t want to change their number and lose their
contacts.

• Airtel is giving 900 minutes of talk time to the customers who are paying a
monthly rental of Rs-499 above which can be used to any mobile which is not
offered by any other operator.

• Airtel offers plans as per the customer needs presently it is having 11 tariffs in
post paid, Vodafone is having 8 tariff plans in post paid service, BSNL is having
8 tariff plans in their post paid service and idea is having 5 tariff plans where as
Reliance GSM is having only 3 plans, which is lesser compared to other
operators.
 Suggestions

• Awareness of Reliance GSM post paid service should be created among the
customers, for that the company should go for advertisements since most of the
post paid users are not aware of the Reliance GSM service still they think it as
CDMA mobile service and for that they have to purchase a new handset.
• Reliance should come up with more plans as per the customers need like
I. Reliance to Reliance free within closed users group
II. Should give initial more free minutes of talk time for calling to other
GSM mobiles.
III. Should come up with free SMS offers on post paid service to attract
student customers.
IV. Should come up with free calls between 2 numbers to attract youths who
want to talk more.
• Reliance should have GSM network coverage at all places still there is problem
with GSM network.
• Reliance should come with plans which are suitable for businessmen who make
more STD calls for their business in spite of having lower call rates for local
calls.
• Reliance should come up with awareness campaigns across public places and
help desks in large companies.
• Most of the customers are afraid of that they will lose their business if they
change their number so if possible try to give the number similar to the old
number to satisfy the customers.
• Some of the customers want to have fancy numbers in GSM which is offered by
other operators better to give the numbers as the per customers demand which
will help in increasing the sales of the Reliance GSM service.
• For the call rates of 30ps other operators like Airtel and BSNL are charging
monthly rental of Rs-399 and RS-425, so Reliance should come with
advertisement of new post paid offers that are available to the customers.
 Conclusion

• Most of the time post paid service usage depends on the occupation of the
customer.
• The awareness about Reliance GSM service is not up to the mark in the
Mysore City.
• Most of the customers are using Airtel post paid service in the city at
present because of its network and tariff plans
• Customers are interested in mobile operator which can offer the service
upto their satisfaction level.
• Customers are not aware of the difference between GSM service and
mobile service.
• The customers are to ready pay the rental which is demanded by the
operator if it offers service as per the needs of the customers, that is they are
ready to pay the rental up to Rs-599 per month if the operator offers them
call rates at 30ps to any mobile and first 900 minutes free and it should have
total network coverage.
• 74% of the respondents who I have surveyed are happy with the service
what they are using at present so it is difficult to churn them to Reliance
GSM service.
• Customers have mindset that all the mobile operators are same and they
just want to attract the customers, so they want to shift to other operators.
 Bibliography

www.google.com

www.rcom.co.in

www.airtel.in

www.vodafone.in

www.bsnl.co.in

Company Executives.

Business today magazine, Jan 2008 edition

 QUESTIONNAIRE

Name: __________________________________________

Occupation ______________________________________

Address:_________________________________________

_________________________________________

Contact No: ______________________________________

Gender: Male Female

1. Which post paid cellular service you are using at present

a. Airtel b. BSNL c. Idea d. Vodafone

2. How much monthly rental you pay for your post paid

a. Rs-199 b. Rs-249 c. Rs-299 d. Rs-299 and

above

3. Are you satisfied with your post paid service provider

Yes No

4. If yes why? Give reasons

__________________________________________________________________

5. If no why? Give reasons

__________________________________________________________________

6. What is the call rate of the post paid service which you are using at present

a. 30ps b. 40ps c. 50ps d. 60ps

7. Are you satisfied with the call rates of your post paid service

Yes No

8. Are you aware of Reliance GSM service

Yes No

9. Whether you have used Reliance cellular service previously

Yes No

10. Give your opinion regarding Reliance GSM cellular service

_________________________________________________________________
_

_________________________________________________________________
_

11. Reliance is offering post paid service through its GSM are you aware of it

Yes No

12. Will you go for reliance post paid from your existing service provider if it offers
call rates for any mobile at 60paise per minute for first one minute and 30ps from
second minute onwards with monthly rental of Rs-199?

Yes No will see in future