RELIANCE TELECOM

Reliance Communications Limited (RCOM) is the flagship company of the Reliance. Anil Dhirubhai Ambani Group, India‟s second largest business house. RCOM is India‟s largest integrated and fully converged communications service provider in the private sector, and has been rated among “Asia‟s Top 5 Most Valuable Telecom Companies”. RCOM has a retail customer base of over 48 million as on 30th April, 2008 including over 1.5 million individual overseas retail customers. The corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. RCOM has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 20,000 towns and 450,000 villages, and growing. RCOM owns and operates the world‟s largest next generation IP enabled connectivity infrastructure, comprising over 175,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.

ETOP :- it is a process of dividing the environment into diff sectors and then analyzing the impact of each sector on the org.

ANALYSIS of TELECOM SECTOR Indian telecom industry world‟s fastest growing industry(last three years 42%) and adding millions of customer monthly and reach to mark of more than 700 million customer mark in the end of year 2010. It is the most dynamic industry and based on the tough competition, price war emerged in the 3rd quarter of 2010. It has lowest tariffs in the world and highest telephone density. It also suffers from highest churn rate 2% and 5% for postpaid and prepaid respectively. It also has lowest ARPU (average revenue per user). It is second largest network in the world (in terms of number of subscriber #1st china) The wireless sector has become so dominant that it is has almost made the landline part dormant with no new happenings/activities/technology in that domain of telecommunication services. A look at their contribution to the total telephone services shows the rapidly change face of the telecommunication industry in India. This sea change has been caused by a number of factors varying from reduction in tariffs and cost of mobile handsets to change in government policies to mindset of the general public. Market Structure Indian telecommunication market is divided into a total of 23 circles, which include 4 metros, and 19 other circles. These circles are further classified into A, B and C type of circles base in the certain economic parameters and revenue potential. Circles were categorized as A,B, & C based on the revenue potential as per the 1st auction in 1995. Group Company wise % market share - Jan'2011 Sl. No. Company Total Sub Figures 1 Bharti Airtel 155,796,598 2 Vodafone Essar 127,364,342 3 IDEA

683.34 Broadband subscription is 10. An exponential growth in the number of subscribers has been witnessed over the recent years with the annual growth going as high as 47%. It is basically include the following four factors but now days it extends further to PESTELED the extension denotes as ENVIROMENT – LEGAL-ETHICS-DEMOGRAPHICS.in/statistics.011. Second largest network in the world (in terms of number of subscribers) [#1.831 10 Loop Mobile 3.120 11 Stel 2. .coai. Indian tariffs are very low in comparison to world standards. With the increase of competition and fast changing global scenario each firm is doing this to be dynamic in its position. It is useful tool to understand business growth opportunities and if any previous decline why was decline.831.152.777 12 Etisalat 452. This analysis tries to find all details related to its four heads.514.206 8 Videocon 6.19 Million [TRAI latest report released on 25 Jan 2011] Overall Tele-density reaches 64.641 4 BSNL 83.305.683 Source-http://www.71 Million Total Market Size: US $ 60 Billion Telecommunication Services can be broadly classified under 3 heads: Telephone.php Fastest growing telecommunication industry in the world.796 6 Uninor 20. organization or company.062.76 Million Wireless subscription reaches 729.it is the part of external analysis while conducting strategic analysis for business. The COMPANIES which I am going to analyze is top 5 as per the market share shown by above table BHARTI AIRTEL IDEA VODAFONE BSNL AIRCEL PEST ANALYSIS It is the frame work designed to assess the macro environment of any country.550 7 *Reliance Telecom 16. which has some meaning to business and affect business activities.57 Million Wireline subscription declines to 35. Broadcasting and Internet.591.233 9 MTNL 5.China] Total Telephone subscriber base reaches 764.311.574 ** All India 556.84.289.015 5 Aircel 51.

This technique is credited to Albert Humphery who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. RULES OF LAW.as well as many other telecommunications services to both domestic and corporate customers.and Sing Tel. . BUREAUCRACY. Other stakeholders in Bharti Airtel include Sony-Ericsson. with whom they hold a strategic alliance. it has huge impact as India has close environment before 1991 and it‟s difficult or impossible to set up a business. CORRUPTION TRADE RESTRICTIONS/ TARIFFS POLITICAL STABILITY ECONOMIC FACTORS ECONOMIC GROWTH INTEREST RATES EXCHANGE RATES INFLATION RATE BUSINESS CYCLE STAGE SOCIAL FACTOR CULTURAL ASPECTS BUYING BEHAVIOR POPULATION GROWTH RATE AGE DISTRIBUTION INCOME DISTRIBUTION LEVEL OF EDUCATION TECHNOLOGICAL FACTOR RATE OF OBSOLESCENCE R&D FACILITIES SPEED OF TECHNOLOGICAL TRANSFER POLITICAL FACTOR. This means that the business has access to knowledge and technology from other parts of the telecommunications world. Nokia . BHARTI AIRTEL: . FREEDOM OF PRESS. high speed broadband. bharti airtel has been ranked among the six best performing technology companies in the world by business week. It is the largest cellular provider in India. and also supplies broadband and telephone services .these factors are related to the politics of the country. bharti airtel had 200 million customers across its operations. STRENGTH Bharti Airtel has more than 65 million customers (July 2008). DTH. turnkey telecom solutions for enterprises and national & international long distance services to carriers. Government type – the current UPA government of India is progressive and liberal which laying path to economic development SWOT ANALYSIS It denotes STRENGTH –WEAKNESS-OPPERTUNITY-THREAT and this technique used to analyze a company during strategic planning.POLITICAL FACTORS GOVERNMENT TYPE LABOUR LAW. The company offers mobile voice & data services. IPTV.Bharti airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. fixed line.

Vodafone is one of the world's leading international mobile communication group STRENGTH Presence in many countries and backed by number one telecom country. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. which was a particular strength of some of its competitors such as Hutchison Essar. This opened the door for talks between Reliance Communication's Anil Ambani and MTN. and also provides advertising opportunities in Indian for Google.6% stake in the Airtel business sold it back to Airtel. The company is investing in its operation in 120.The company has covered the entire Indian nation with its network. In a survey conducted by India‟s leading business weekly. VODAFONE. Despite being forced to outsource much of its technical operations in the early days. the business has little knowledge and experience of how a cellular telephone system actually worked. This new business will control more than 60% of India's network towers. and to question industry approaches and practices .000 to 160. This has underpinned its large and rising customer base. Vodafone Essar was awarded „Most Respected Company‟ in the Telecom Sector for 2010. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. Number one gainer due to MNP 50. Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market. this allowed Airtel to work from its own blank sheet of paper.000 small villages every year. and instead invested in its rival Hutchison Essar. The tie-up with Google can only enhance the Airtel brand. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. Towers are important if your company wishes to provide wide coverage nationally. Opportunities The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The new iPhone will be launched in India via an Airtel distributorship. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. IPTV is another potential new service that could underpin the company's long-term strategy. The company now has operations across the country with over 127. Threats Airtel and Vodafone seem to be having an on/off relationship. allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market.Emerging markets and expansion abroad .34 million customers. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature. Weaknesses An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago.000 customer. and also so that the business benefits are scalable using its 'Matchbox' strategy. So the start-up business had to outsource to industry experts in the field. Provider of 3G and blackberry services and business solution. Vodafone which owned a 5. Another strategic partnership is held with BlackBerry Wireless Solutions.for example replacing the Revenue-PerCustomer model with a Revenue-Per-Minute model which is better suited to India. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call. as the company moved into small and remote villages and towns. WEAKNESS THREAT OPPERTUNITIES . Until recently Airtel did not own its own towers. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers.

whose current shareholders are the Reddy family of Apollo Hospitals Group of India. Idea's 3G services will be launched in the year 2011.Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line. in revenue terms. Innovation . despite stiff tariff war in the market. it launched commercially in Chennai and quickly established itself as a market leader .idea is the 3rd largest mobile services operator in India.competitor.etop. porter. Broadband. STRENGTH WEAKNESS THREAT OPPERTUNITIES Industry. Growing data business and 3G auctioning .a position it has held since.Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. internal. VoIP services. MPLS-VPN. GSM Mobile.externalpestel external factor external factor etop industry analysis competitors analysis competitors analysis mraketing analysis internal factor analysis swot pestel external factor external factor etop industry analysis competitors analysis competitors analysis mraketing analysis internal factor analysis swot pestel external factor external factor etop industry analysis competitors analysis competitors analysis . CDMA mobile.2% in 2009 anticipated) .Product and services expansion . The company has won license to offer 3G services in 11 service areas.The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited. Carrier service. with Maxis Communications holding a majority stake of 74% . Large capital can be raised by listing Vodafone on Indian Stock Exchange(IPO) . Tower sharing business with Indus Towers iDEA.swot. In December 2003. Zoo Z00) . formed in October.sap. Internet. VAS as a means to increase ARPU (big boss. VSAT. STRENGTH WEAKNESS THREAT OPPERTUNITIES BSNL . During the year. Presently it is one of the largest & leading public sector unit in India. 2000.. and recorded a subscriber base of over 78 million as on end November '10. Growing Enterprise solution market (10. It became a pan-India integrated GSM operator covering the entire telephony landscape of the country. which generate over 81% of the company's total revenue. IN Services etc. and expanded its NLD and ILD operations in FY 2010. STRENGTH WEAKNESS THREAT OPPERTUNITIES AIRCEL .pestel. Idea increased its revenue market share by over 1%. 7s Firm.

mraketing analysis internal factor analysis swot RELIANCE COMMUNICATIONS Reliance Communications Parent Company Reliance ADAG Category Mobile service provider Sector Telecommunication Tagline/ Slogans Karlo Duniya mutthi mein USP Connection with handset STP Segment Lower and lower middle Target Group Villagers.Untapped rural market Threats 1.Latest expanding and low cellular cost market technology 3.High 4.Celebrity brand brand plans advertising visibility ambassadors 5.Ability to attract customers with various plans Weakness 1. entrant's Saturation point in low Basic price telephony offering service 3.Flexible 2.Good 3.Mobile Number Portability .Untapped Rural Market Opportunity 1. Daily wagers Positioning World in your hands SWOT Analysis Strength 1. poor.Fast 2.New 2.Price competition from BSNL and MTNL 2.

the light weight (389g) Reliance 3G Tab with a 2. 12.00/1 . today announced the launch of its best value ‘Master Plan’ for GSM prepaid customers in Karnataka. 30paise per minute to any other network. June 14th. We take the guesswork out of the equation.Airtel 2.Virgin Indicom Docomo QUEST :- Quest Analysis is passionate about market research. 46. Master Plan . India's fully integrated telecommunications service provider. Group Face Lot Value/M :5. 101.Uninor 9.3 OS.500 seconds of free calling to any network with one month validity whereas on recharge of Rs.Rs.Vodafone 4. This best value product offers a unique facility to its prospective customers whereby on recharge of Rs. 5paise per minute within the Reliance network along with local calling as low as Rs.Competition Competitors 1.Tata 5. Loaded with 512 MB RAM and a micro SD external storage.Aircel 6. today became the first 3G operator in India to enter the tablet space by unveiling its 'Reliance 3G Tab'. the tablet is sure to find a wide appeal among Indian consumers. The customer gets the benefit of full talk time on all top-ups along with 500 MB data usage free per month and all local and national sms to be charged at Rs.999 and further bundled with discounts on the monthly and annual data plans to enhance the value proposition Reliance Communications launches 'Master Plan' A best value prepaid plan for GSM customers in Karnataka Bengaluru. 74/.Business Group :ADA Ent.Idea 3. customers can avail 4.for existing customers. but more importantly we are passionate about our clients and helping them reach their fullest potential. a fully loaded Android tablet. 5 paise only. with a validity period of six months.0MP rear camera and a front camera will certainly make this tablet the most unique and compelling offer in the Indian tablet market. Reliance Communications introduces 3G Tablet Reliance Communications. 46/.and Rs. 2012: Reliance Communications. The Quick Environmental Scanning Technique.MTNL 7. India's fully integrated telecommunications service provider. The Reliance 3G Tab is supported by Reliance's superior 3G network across 333 Towns in 13 3G Circles to ensure an amazing customer experience. is a scanning procedure designed to assist executives and planners to keep side by side of change and its implications for the organizational strategies and policies.its unique multibenefit recharge offer packs for its new and existing GSM prepaid customers in Karnataka with recharge packs that are available in three denominations .for new customers and Rs. QUEST produces a broad and comprehensive analysis of the external environment. The device is priced attractively at Rs. 101/. MARKET SHARE OF RELIANCE TELECOM :- Industry : Telecommunications Service .000 seconds of free calling to any network with two months validity. We use market research to empower our clients to connect with their audience at the ideal level. The stylish Reliance 3G tablet comes with a 7-inch capacitive touch screen with Android 2. The Master Plan is the only prepaid plan in the market that offers local calling as low as Rs.Tata 10. Aimed at all age groups. the customer gets 10.BSNL 8.

096.00 23.77 -5.754.00 2.104.25 297.176.70 77.65 0.72 73.12 2.667.35 9.279.90 5.17 50. Sales Turnover 45.87 11.79 582.12 -735.80 4.29 25.66 945.96 Comparison with Competitors RC13 Balance Sheet ------------------.BSE Code NSE Code :532712 :RCOM LTP (Rs.00 8.488.73 1.94 Cr Competitors :Name Last Price Market (Rs.456.068.086.43 : 25851. cr.94 8.267.24 -658.60 124.428.03 70.087.00 125.36 110.072.42 938.in Rs.01 3.45 14. ------------------Reliance Bharti Airtel Comm Idea Cellular Tata Comm TataTeleservice Mar '12 Mar '13 Mar '12 Mar '12 Mar '13 Sources Of Funds .16 8.54 3.25 (3.) ISIN No :125.126.30 818.634.85 7.90 151.321.08%) [NSE] :INE330H01018 P/E Ratio Market Cap : 41.27 3.58 34.07 119.82 9.21 Net Profit Total Assets Bharti Airtel Idea Cellular Reliance Comm Tata Comm TataTeleservice MTNL Tulip Telecom Goldstone Infra Nu Tek India 310.27 5.26 624.851.416.350.) Cap.94 67. Cr.00 475.00 4.90 22.

071.17 23.70 2.58 900.606.00 178.794.792.00 54.165.00 43.14 2.229.16 44.45 8.00 9.14 4.211.43 9.85 34.00 -1.00 12.31 387.898.71 3.80 27.00 45.00 -3.00 12.032.32 763.73 26.00 0.625.72 50.81 52.265.10 2.247.55 7.94 807.911.99 1.00 2.384.20 37.513.246.67 86.95 0.00 6.889.00 0.00 0.20 0.968.91 4.636.611.80 362.54 507.468.00 7.788.176.00 3.120.897.00 0.80 15.20 26.030.455.898.136.00 1.569.032.00 305.00 1.00 67.26 656.00 2.126.10 .80 73.00 0.94 53.932.789.Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 1.00 52.743.41 31.979.182.00 7.689.897.60 765.00 28.910.85 3.03 10. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances 52.072.146.91 455.00 285.92 4.45 709.752.00 5.17 766.308.00 2.35 3.308.439.851.17 23.20 1.97 0.40 0.00 12.80 0.197.00 1.00 12.29 950.55 39.60 13.068.00 71.00 1.80 33.00 0.83 8.871.10 329.138.977.80 1.07 4.19 297.00 28.75 0.729.859.934.14 3.590.95 0.199.087.344.00 0.62 1.00 Reliance Bharti Airtel Comm Idea Cellular Tata Comm TataTeleservice Mar '12 Mar '13 Mar '12 Mar '12 Mar '13 Application Of Funds Gross Block Less: Accum.97 443.895.72 285.817.80 1.65 3.27 0.75 5.00 1.

72 0.126.00 -5.24 226.50 0.00 15.58 0.58 3.241.00 6.615.757.340.731. .00 73.937.00 20.45 .20 2.890.00 299.206. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets 0.388.35 1.854.29 8.00 4.072.10 -2.470.026.668.00 8.00 2.64 0.00 6.61 5.00 142.17 1.911.00 4.99 16.87 228.00 1.53 -9.087.574.963.00 20.16 15.708.97 62.42 1.176.02 38.00 0.71 0.00 67.00 1.844.80 0.153.147.920.13 0.93 3.00 218.81 145.068.50 12.14 250.22 -690.00 94.54 0.00 Contingent Liabilities Book Value (Rs) 5.896.286.70 0.00 23.00 8.Fixed Deposits Total CA.97 0.061.70 695.00 0.773.