Brief Study On “TELECOM SERVICES OF RELI NCE COMMUNICATION’’

PROJECT REPORT

Submitted for Partial fulfillment for the Award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION (2007 – 2010)

INTERNET INSTITUTE FOR SPECIAL EDUCATION
Kanchana Bihari Marg, Kalyanpur, LUCKNOW

Presented to: Presented by: Mr. AMRIT ANAND GAURAV SINGH

(Project Head) of IISE, Lucknow)

(Student

ACKNOWLEDGEMENT

An undertaking of work life, this is never an outcome of a single person; rather it bears

the imprints of a number of people who directly or indirectly helped me in completing the present study. I would be failing in my duties if I don’t say a word of thanks to all those who made my training period educative and pleasurable one.

I am thankful to RELIANCE COMMUNICATIONS, for giving me an opportunity to do
summer training in the company. I have gained enriching experiences, learned a lot and become more matured as an individual.

I am deeply indebted to my project guide Mr. Amrit Anand (Project Head) , for giving
me his valuable time, advice, guidance, encouragement and help during the course of my project.

My heart full thanks to the whole staff and customers (Corporate) of Reliance
Communication Ltd, who gave me continuous support in every possible manner to gain practical knowledge in Industry.

Finally I would like thank all lecturers, friends and my family for the kind of support and
to all who directly or indirectly helped me in preparing this project report and special thanks to website- www.rcom.co.in.

And at last I am thankful to all divine light and my parents, who kept my Motivation and
zest for knowledge always high through the tides of time.

Date:

Place: LUCKNOW

GAURAV SINGH

CERTIFICATE OF ORIGINALITY

This is to certify that the project entitled “TELECOM SERVICE IN RELIANCE COMMUNICATION”, being submitted for the partial fulfillment of degree of B.B.A 2007-2010, is a record of work carried out by Shilpi Saxena under my guidance and supervision.

This is to further certify that the student has attended the Reliance Communications, Lucknow for the 7 weeks after the fourth semester theory exams. Her work has been satisfactory and commendable.

I wish him success in his life.

Mr. Amrit Anand (Project Head) H.R. Department Reliance Communication.

.

CERTIFICATE OF COMPLETION

This is to certify that Mr. Gaurav Singh, 5th semester of IISE, Lucknow, has undergone training from 29th June 2009 to 15th August 2009 at Reliance Communications, Lucknow under my specialized guidance and was working on project entitled “TELECOM SERVICE IN RELIANCE COMMUNICATION”.

During this period he has successfully completed the project according to the requirements specified, and report duly submitted. I am very pleased with the quality of work, which he has shown, and wishes him the best for his future.

Date: Mr. Amrit Anand Project Head Place: H.R. Department Re liance Communications

DECLARATION

I GAURAV SINGH, hereby declare that the report of the project entitled “TELECOM SERVICE IN RELIANCE COMMUNICATION” has not been presented as a part of any other academic work, to get my degree or certificate, except IISE, Lucknow for the fulfillment of the degree of Bachelor of Business Administration.

GAURAV SINGH

PREFACE

These days institutes have started giving more stress on the management training , as it is the interface of a management student with the culture of the corporate world and it also gives the first hand experience to use the knowledge acquired by them in the corporate world.

My institute has also been looking in the same direction and is determined to produce quality students who have a balanced knowledge of both theoretical aspects and the practical knowledge as well.

Herein I got to do a project for the Reliance Communication, which was basically to know the “Telecom Service in Reliance Communication”.

The main objective of the project is to study the Telecom Services at Reliance Communications. The project also gives detailed information about Reliance Communications through the history of Reliance Communications which also highlights the recent trend followed by the Reliance Communications.

CONTENTS

Chapter – 1

Company’s Profile 1. 2. 3. 4. 5. 6. Overview Vision Chairman’s Profile Business Reliance Group Organisational Setup

Chapter – 2

Main Studies 1. 2. 3. 4. Introduction of the Topic Apply Six Sigma The problems being faced What does Company expect to do by solving the problem

Chapter – 3

Methodologies 1. 2. 3. 4. 5. 6. Research problem Research Objective & sub- objective Information Requirement Sources of information Product & schemes Research methodology

Chapter – 4

Data Analysis & Interpretation 1. Data Interpretation & Finding of customer Survey 2. Market share of mobile subscribers 3. Performance Snapshot

Chapter – 5

Conclusions 1. Conclusion 2. Finding

Chapter – 6

Suggestions Appendices

1. Bibliography 2. Questionnaire

CHAPTER - 1
Company’s Profile
1. Overview 2. Vision 3. Chairman’s Profile 4. Business 5. Reliance Group 6. Organizational Setup

1.Overview
The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life.

2.Vision
“We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”

3.Chairman’s Profile
Anil D. Ambani

Regarded as one of the foremost corporate leaders of contemporary India,Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited. He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat. Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), India’s largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of: • • • • Wharton Board of Overseers, The Wharton School, USA Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmedabad Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006. Awards and Achievements: • Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards • Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004 • Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002 • Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001.

1.Business
Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s

leading integrated telecommunication company with over 85 million customers. Our business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Our constant endeavour is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve. Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. We endeavour to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society.

2.Reliance Group
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest private sector information and communications company, with over 85 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies — Reliance Capital and Reliance Infrastructure — are widely acknowledged as the market leaders in their respective areas of operation.

Reliance Energy Ltd.

Reliance Mutual Fund

Reliance Communications Harmony

Reliance Life Insurance

Reliance Anil Dhirubhai Ambani Group

Reliance General Insurance

Reliance Portfolio Management Service

Reliance Big Entertainment

3.Organizational Structure

CHAPTER – 2
Main Studies
1. Introduction of the topic 2. Apply Six Sigma 3. The problems being faced 4. What does company expect to do by solving the problem

1.

Introduction of the topic

What is SWOT Analysis?

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity). SWOT analysis is a general technique which can be applied across diverse functions and activities, but it is particularly appropriate to the early stages of planning for a TIPD visit. Performing SWOT analysis involves generating and recording the strengths, weaknesses, opportunities, and threats relating to a given task. It is customary for the analysis to take account of internal resources and capabilities (strengths and weaknesses) and factors external to the organization (opportunities and threats). SWOT analysis can provide: A framework for identifying and analyzing strengths, weaknesses, opportunities and threats. This checklist is for those carrying out, or participating in, SWOT analysis. It is a simple, popular technique which can be used in preparing or amending plans, in problem solving and decision making. Illustrative diagram of SWOT analysis If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is SCAN analysis. Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research. Strengths: attributes of the organization those are helpful to achieving the objective. Weaknesses: attributes of the organization those are harmful to achieving the objective. Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions that is harmful to achieving the objective. SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables proactive thinking, rather than relying on habitual or instinctive reactions. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The free SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid. The questions are examples, or discussion points, and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings - use them as you find most helpful, and make up your own to suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis, because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, and idea, a method, or option, etc. Here are some examples of what a SWOT analysis can be used to assess: • • a company (its position in the market, commercial viability, etc) a method of sales distribution

• • • • • • • •

a product or brand a business idea a strategic option, such as entering a new market or launching a new product a opportunity to make an acquisition a potential partnership changing a supplier outsourcing a service, activity or resource an investment opportunity RELIANCE COMMUNICATION LIMITED

STRENGTH
• • • • • • Low entry cost Commission structure Fast activation process Network Connectivity Data GPRS

WEAKNESS • • • • • Branding image Distribution problem Limited product portfolio – only mobile Lack of competitive strength Limited budget

OPPORTUNITY • • • •

THREAT • • • • • Political destabilization New entrants IT development Market demand Seasonality, Weather effects

Preference of GSM over CDMA New specialist application Rural telephony New market, vertical , horizontal Competitor’s vulnerabilities

1.

Apply Six Sigma
(Fishbone diagram)

2.
• • •

Problems being faced
Lack of communication between retailers and distributor Lack of improper distribution channel Competitors

Not regular visit of DSE and Runner

All retailers are not aware of new scheme of RCOM

• •

Lack of sales promotion and advertisement Retailer doesn’t get claim at proper time

No visit of TSM or any other person to the retailer’s shop

3.

What does company expect to do by solving the problem
• • • • • Customer Satisfaction Retailer Satisfaction Increase in Sale Sales Promotion Proper Distribution Channel

CHAPTER – 3
Methodologies
2. 3. 4. 5.
6.

1. Research problem Research objective & sub - objective Information requirement Sources of information Product & schemes Research methodology

1. Research problem
• • • Collection of Data of other companies –Tata indicom, Airtel & BSNL Retailers some time gives wrong data Limitation of time and money

1. Research objective & sub – objective
Objective
• To know the demand of Rcom bundle offer along with LGRD 3000 and 6100 as Ill as the demand of Rcom Bachat pack Sim in the market

• • •

To help in development and introduction of new product To identify the company position among competitors To determine those factors which persuade retailers for sale of RCOM sims/product To find out which type of schemes retailers prefer and why? To study the effect of irregular supply on the sale of the product

• •

Sub – objective
• To compare the Airtel and Tata indicom Bundle offer with RDLG 3000, 3500 & 6100 for analyzing the status of RCOM Bundle Offer To identify the Market share of RCOM To find out the basic problems of retailers To find out the performance of Distributor To find out the basic problems of Channel of Distributor

• • • •

To find out the Claims pending of Retailers

1. Information requirement
Complete Price structure of Rcom, Airtel & Tata indi.offer which includes: • Sim Processing Fees • Discount Offered • Schemes offered • Service Tax

2. Sources of information
• Data collected from the Company • Secondary Data • Internet • Retailers • Distributor • Sales Executives • Other Trainees (Runner)

3. Products & Schemes

RELIANCE PRODUCT • • • • • Reliance Base Phone Reliance Mobile Reliance Data Card Reliance Voucher, E-Recharge Reliance PCO

Reliance Broad Band

RELIANCE SCHEMES Postpaid Plans
STD Plan name Rental Clip Plan Charges Monthly commitment Free SMS(Rs) Free intra circle talk time worth Rs. Intra circle On Net Cell Fixed Inter circle On Net Cell Fixed International US, Canada,Fixed Lines in Europe,Australia,Newzealand and South East Asia Mobile phones in Europe, SAARC,Gulf,Middle East,UAE,Africa and Rest of the world. Bissau,Nauru,Norflok island,Sao Tome,Sakhalin,Solomomn Island,Tokelau,Tuvalu,Vanuat u Rate /SMS(164 characters) Local SMS National SMS International SMS Onnet Pack Rental First 1000 Mins Free-RIM and FWP then 15paise. SMS Onnet Pack Rental Roaming Rates Local 225 50 150 50 125 50 99 50 1 2 5 1 2 5 1 2 5 1 2 5 6.00 6.40 6.40 6.40 1 1 1 1.5 1.5 1.5 1 1 1 0 1 1 1 1 1 0.50 0.50 0.50 0.5 0.5 0.5 0 0.5 0.5 RIO 129 129 0 0 129 0 NA Rs 150 Local onnet & Rs 150 local offnet Rs 375 299 375 995 Rs 995 worth local & national SMS LOCAL My local 299R 299 0 STD My STD 375R 375 0 STD + ROAMING My truly unlimited on net 995

8.00

9.19

9.19

9.19

40.00

40.00

40.00

40.00

Onnet Off net Landine STD Incoming

1 1 1

1 1 1

1 1 1

Free 0.5 0.5 On net free / Others 1/min 0

1.5 1

1.5 1

1.5 1

Prepaid Plans
Benefit All calls @ Rs.1 Reduces Local call rates upto 30% Reduces Local call rates upto 50%. All STD & Roaming Calls @ Rs.1 Reduces Local call rates upto 30%. All STD & Roaming Calls @ Rs.1 + Get Talktime Unlimited calling to any Local Reliance Mobile Unlimited calling to any Reliance Mobile anywhere in India MRP Rs.35 Rs.49 Rs.79 Rs.98 Rs.249 Rs.999

MRP Benefit avilable for(Days) Reliance Mobile (CDMA Only) Local Reliance Fixed Other Mobile Other Fixed Reliance Mobile (CDMA Only) STD Reliance Fixed Other Mobile Other Fixed All Incoming & Local Outgoing Roaming calls All STD Outgoing calls

Rs.999 Rs.249 30 Free 30 Free

Rs. 195 30 1000 minutes free

Rs. 144 180

Rs. 99 30 Rs. 0.33

Rs. 79 30

Rs. 49 30 Rs. 0.33

Rs. 34 30

Rs. 35 30

Rs. 39 30

Rs.0.60 Rs. 0.50 Rs. 0.49 Rs. 0.99 Rs. 0.49

Rs.0.50 Rs. 0.49

Rs.0.60 Rs.1.00

Rs.0.50 (2nd min onwards)*

Free Rs. 1.50 Rs. 1.50 Rs. 1.20 Rs. 0.99 Rs. 1.00 Rs. 1.50 Rs. 1.20 Rs. 1.00 Rs.0.50 (2nd min onwards)*

Rs. 1.00

Rs. 1.00 Rs. 1.50 Rs. 1.50 Rs. 1.50 Rs. 1.50 Rs. 1.00 Rs. 1.00 Rs. 1.50 Rs. 1.50 Rs. 1.50 Rs. 1.50

Prepaid Tariff

Base Plan Tariff All Local Calls All STD Calls Roaming All Incoming & Local Outgoing calls All STD Outgoing calls Rs.0.99 Rs.1.50 Rs.1.00 Rs.1.50

Recharge Vouchers - Base Plans MRP Rs.151 Rs.175 Rs.205 Rs.350 Talktime Rs.59.39 Rs.79.83 Rs.107.45 Rs.161.67 Validity (Days) 30 14 30 30

Recharge Vouchers - Unlimited On-Net Plan MRP Talktime Validity (Days) Tariff Reliance Mobile (CDMA Only) Local Reliance Fixed Other Mobiles Other Fixed STD All Calls Free Rs.0.49 Rs.0.49 Rs.0.49 Rs.1.50 Rs.399 Rs.175.00 30

Reliance Broadband
Free Usage Bundled/Month Anytime/Day Usage Night Usage Nil Nil 10 GB Nil Nil Nil 10 GB 10 GB Effective Rental in Money back offer (for 12 months) Rs. 299/Rs. 499/Rs. 499/Rs. 650/Rs. 750/Rs. 850/Rs. 849/Rs. 949/-

Tariff Plan Broadband+ Pay as you go Broadband+ 512 MB Broadband+ 10GB @ Night Broadband+ 1 GB Broadband+ 2 GB Broadband+ 3 GB Broadband+ 1 GB day, 10 GB Night Broadband+ 2 GB day, 10 GB Night

Monthly Rental

Extra Usage Rs. 2 / MB Rs. 2 / MB Rs. 0.5/Min Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB

Roaming Nationwide* Nationwide Nationwide Nationwide Nationwide Nationwide Nationwide Nationwide

Rs. 299/- Nil Rs. 499/- 512 MB Rs. 499/- Nil Rs. 650/- 1 GB Rs. 750/- 2 GB Rs. 850/- 3 GB Rs. 849/- 1 GB Rs. 949/- 2 GB

Broadband+ 3 GB day, 10 GB Night Broadband+ 5 GB Broadband+ 10 GB City Broadband+ 5 GB day, 10 GB Night Broadband+ 10 GB day, 10 GB Night City Broadband+ 10 GB Broadband+ 10 GB day, 10 GB Night Broadband+ 15 GB

Rs. 1049/- 3 GB Rs. 1099/- 5 GB Rs. 1099/- 10 GB Rs. 1298/- 5 GB Rs. 1298/- 10 GB Rs. 1250/- 10 GB Rs. 1449/- 10 GB Rs. 1750/- 15 GB

10 GB Nil Nil 10 GB 10 GB Nil 10 GB Nil

Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB Rs. 2 / MB

Nationwide Nationwide Citywide Nationwide Citywide Nationwide Nationwide Nationwide

Rs. 849/Rs. 899/Rs. 899/Rs. 1098/Rs. 1098/Rs. 1050/Rs. 1249/Rs. 1550/-

Day usage - 6 AM to 10 PM ; Night Usage - 10 PM - 6 AM

1.

Research Methodology

Research methodology is a way to systematically do the job. It may be understood as a science of studying how research is done scientifically. The most desirable approach with regards to the selection of the research methodology depends on the nature of particular work, time and resources available along with the desire level of accuracy.

Research Type Data Source Research Instrument Type of Questionnaire Sampling Unit Sampling Method Contact Method

Descriptive Research Primary Data Questionnaires Structured Retailer Judgmental Personal Interview

CHAPTER – 4
Data Analysis & Interpretation
Data interpretation & finding of customer survey 2. Market share of mobile subscribers 3. Performance snapshot
1.

1.

Data interpretation customer survey

&

finding

of

Age group – Tabulating in percentage the age group of customers

Age Group 18 - 25 28 - 35 36 - 45 Above 45

Percentage (%) 25 47 22 6

Above figure shows that researcher having surveyed 18 respondents, 25% belong to age group 18-28%, 47% belong to age group 28-35%, belong to age group 3645 and 6% above age of 45.

Income Level Tabulation

Income Group

Percentage (%)

8000 8000 - 12000 12000 - 20000 Above 20000

42 34 18 6

The above analysis shows that 42% of the respondents belonged to the 8000/- and below income category, 34% belonged to Rs.8000 to 12000 and 18% belonged to 12000-20000 And 6% above income of 20000/-.

Percentages of customer who are prospective take of a particular service

Company AIRTEL RIM BSNL

Percentage (%) 40 5 25

IDEA VODAFONE VIRGIN

2 31 2

It was found in the survey that 55% of the respondents intended to purchase either AirTel or Rim services in the future. Out of this 55% more than ½ (that is 30% of the whole sample size) intended to purchase AirTel and 25% intended to purchase RIM

Scaling About RCOMM Service

Scale Very good Good Satisfactory Poor Can’t say

Percentage (%) 20 25 40 10 5

The survey revealed that 40% of the respondents service RIM as satisfactory. This is a telling comment. However the survey also found out that 20% and 25% of the respondents service RIM as very good and good respectively. There were 5% of the respondents who had nothing to say about the RIM. This is due to low service awareness and low penetration level.

2.

Market share of mobile subscribers

Market share of CDMA in LUCKNOW

RCOMM – 70%

Tata – 30%

Market share of GSM in LUCKNOW

Airtel BSNL Virgin RCOMM Idea Vodafone

– – – – – –

40% 25% 2% 5% 3% 31%

Tata indicom

2%

3.

Performance Snapshot
12 months period ended
Quarter ended
June 30, 2009 (Q1 FY10)

Particulars

Units March 2007 March 2008 March 2009

Total subscribers

000’s

28.007

45.794

72.666

79.616

Cosolidated financials

Rs. mn
Revenue

144.683

190.678

229.411

61.452

Rs. mn
EBITDA

57.207

81.991

92.875

24.525

Rs. mn
Cash profit from operations

56.291

82.064

100.789

28.353

Profit before income taxes

Rs. mn

32.247

70.762

61.353

19.475

Net profit

Rs. mn

31.632

54.011

59.077

16.366

Total fixed assests

Rs. mn

330.423

523.126

729.476

716.059

Shareholder’s equity

Rs. mn

202.719

254.609

370.003

377.165

Net debt

Rs. mn

18.238

99.700

225.943

221.630

Key ratios

%
EBITDA margin

39.5%

43.0%

40.5%

39.9%

%
Net profit margin

21.9%

28.3%

25.8%

26.6%

Return on networth

%

26.8%

33.7%

37.1%

39.7%

Net debt to funded equity ratio

Times

0.09

0.39

0.61

0.59

KPIs

Rs.
Wireless APRU

371

340

244

210

Wireless RPM

Rs.

0.74

0.74

0.63

0.58

Wireless MoU per sub

Min/month

503

460

389

365

Long distance minutes

Mn min

23.238

30.045

39.724

12.558

*APRU - Average revenue per user

CHAPTER – 5
Conclusions
1. Conclusion 2. Finding

1.Conclusion

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

RCOM cellular ltd. an Anil Ambani Group of cos. is very fast catching up with the market by providing cheaper calling rates. The market strategies adopted by its executives are bearing fruits and the company although being the Second one to enter the market of Bihar & Jharkhand has found a suitable niche and recognition in the consumer. But this is not a thing for self contentment as the survey reveals that in network, service and distributor, its place is very far behind to other competitors viz. Airtel, BSNL, and Tata indicom etc. so to withstand the competition resources mobilization and technological innovation on the part of cos. To upgrade its quality of network and services is urgently called for.

Market access and growth is alright but the improvement of quality on the above counts is necessity of the time.

2.Finding

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

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

Problems: Around 15% of the respondents that there is network problem with RCOMM, on the other hand they found its competitors viz. Airtel, BSNL, TATA indicom network connectivity of very good to good level. Around 16% retailers which are under puja enterprises distributor projected problem with distributors. They don’t get schemes communicated in time by distributor and distributor does not provide RCV & e-Top. Support from company: Most of the retailers ensnared that they are supported by the companies’ personnel & companies’ helpline. All companies provide POP (Point of presence) at right time and in adequate number. Claim process: In case of RCOMM process is be claimed very belatedly i.e. almost 77% of the cases take 60-90 days, where as in case of Airtel most of the i.e. 88% is being finalized in time limit 0-30 days. The claim process services of other competitors viz. AirCel, Smart, & Tata Indicom are almost at par with the IDEA cellular ltd.

CHAPTER – 6
➢Suggestions

Appendices
1.
2.

Bibliography Questionnaire.

Suggestions

On the basis of extensive study and research, here are some recommendation and suggestion which may help the company to market the product and service more profitability and increase its share in the Telecom market. PROMOTIONAL ACTIVITIES The company expands the budget allocation for promotional campaign in center Bangalore. It has affected the sale service brand image of Reliance especially in Bangalore. Low supports in promotion have lead to fluctuation in sale. There may be some useful tools which can be summed as follows:Advertising – Advertising should have a clear objective and message, which has not been found in recent ads. Reliance is a faster growing provider service in each state .every offers and schemes they should show with proper message for benefit to the customer. In busy life customer do not remembered any offers and which service we can provided for the customer therefore they should by force showing advertisement in growing market and among customer. Customers wants continuously exposure in Cable and Local newspapers. Persuasive Advertising - Now there is a need of persuasive advertising for Reliance service which can be moved into the category of “comparative advertising”. It will help the company to establish the superiority of its brand service through specific comparison of one or more attributes and features. Technical Expertise - The advertisement should show the companies expertise, experience and pride in market the product service sale. Media - A combination of print ads and TV commercial do a better job. Local ads and publicity should be giving more stress. Hoardings, banners, wall painting should be promoted, as some expenses are also beard by dealers. Ads on Cable network result greater audience attention. Schemes, gift offers etc. must be highlighted through Radio and Local newspapers.

A.

SALES PROMOTION • Cash discount

• Premiums • Appointment of sale promoter

Financial schemes

A.

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

B.

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

Appendices

1.
BOOKS

Bibliography

Marketing Management Marketing Research

-

Phillip Kotler Tull & Hawkins

MAGAZINE Business Today Advertising & Management

NEWSPAPERS Economic Times Hindustan Times

WEBSITE www.coai.in www.auspi.in

* The relevant information from the internal source of the organization

2.

Questionnaire

1. Whether following things are available? • Monsoon offer 48%

• • •

Kit V-top E-Recharge

90% 40% 90%

The survey revealed that 48% retailers have monsoon Offer, 90% have kit, 40% have V-top and 90% have E-recharge.

2. What is the frequency of DSE visit? • • • •

Once a Week Twice a Week Thrice a Week None of above

20% 50% 30% 0%

The survey revealed that 20% retailers have said that DSE visits once a Week, 50% retailers have said that DSE visits twice a Week, 30% retailers have said that DSE visits thrice a Week.

3. What availability of stock you keep for sale in your shop? • • • •

Daily weekly In 15 days Monthly

9% 72% 18% 1%

The survey revealed that 9% retailers keep daily stock, 72% retailers keep Weekly stock, 18% retailers keep stock of 15 days and 1% retailers keep monthly stock. 4. What nature of problem you face with RCOMM?

• •

Service level Claim level Product availability Product awareness

31% 95% 18% 25%

The survey revealed that 31%, 95%, 18%, 25% retailers have problem with service level claim level, product availability and product awareness respectively.

5. How much time is taken by the distributor to reimburse your claims? • • • •

20 days 30 days 45 days 60 days

11% 25% 25% 39%

The survey revealed that 11%, 25%, 25%, 39% of the retailers are reimbursed by distributor at claim level respectively.

6. Who are the major competitors of RCOMM? • • • • •

Airtel Aircel BSNL Tata Indicom Smart

55% 15% 15% 30% 8%

The survey revealed that Airtel and Tata indicom are the major competitors of RCOMM.

7. If you have any problem then whom you will prefer to talk? • • •

Distributor TSM DSE

10% 23% 67%

The Survey revealed that 10%, 23% and 67% retailers prefer to talk to Distributor, TSM and DSE.

8. How do you know about new scheme?

Companies Reliance Airtel Aircel Tata Indicom Idea

SMS ✔ ✔ ✔ ✔ ✔

Poster ✔ ✔ ✔ ✔ ✔

9. How much time do you take to activate a sim? • • • •

10 - 15 min. 15 - 30 min. 30 - 60 min. Above 60 min.

44% 38% 6% 12%

The survey revealed that 44% retailers take 10-15 min., 38% take 15-30 min., 6% take 3060 min. and 12% take more than 60 min. in activation of a SIM.

10. From which company distributors you are more satisfied? • • • •

Airtel Reliance BSNL AirCel

34% 28% 17% 16%

• •

TATA None

4% 1%

CONCLUSION

I am fortunate enough to get the privilege of completing my summer training project in Reliance Communications. I am thankful to them for giving me an opportunity to enhance my practical knowledge and experiences.

My project is concerned with Telecom Service In Reliance Communication. It has 2 parts, firstly I studied about SWOT analysis and Six Sigma, and then particularly, I studied methodologies and research problems in Reliance Communication. I started my project by writing about Reliance Communications and then I gave Vision of Company along with Chairman Shri Anil Ambani’s Profile & recent Newspaper cuttings about the company. Then I wrote about my main project. I also annexed relevant forms & documents, and ended my project by this conclusion.

To complete, I must say that this summer training was very helpful to me both in broadening my knowledge & skills to handle the management issues related with statutory compliances.

I am thankful to RELIANCE COMMUNICATIONS and its employees for their full support in helping me to complete my Project.

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