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“TO STUDY THE EFFECT OF LAUNCH OF JIO ON ITS

COMPETITORS”

Submitted in partial fulfilment of the requirement for the award of the Degree of
3rd SEM

MASTER OF BUSINESS ADMINISTRATION

OF

BANGALORE UNIVERSITY

Submitted By

SURAJ

REG No: 18TUCMD069

Under the guidance of

Mrs. VIDYA HULKUND

CANARA BANK SCHOOL OF MANAGEMENT STUDIES

JNANA BHARATHI CAMPUS, BANGALORE UNIVERSITY

BANGALORE- 560056
DECLARATION BY THE STUDENT

I, SURAJ hereby declare that “TO STUDY THE EFFECT OF LAUNCH OF JIO
ON ITS COMPETITORS” is the result of the project work carried out by me under
the guidance of Mrs. VIDYA HULKUND in partial fulfillment for the award of Master
of Business Administration by Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree or
Diploma or Certificate.

Place: Bangalore SURAJ

Date: 18TUCMD069
CERTIFICATE OF ORIGINALITY

his is to certify that this project report entitled “TO STUDY THE
T EFFECT OF LAUNCH OF JIO ON ITS COMPETITORS”, is an

original work of Mr. SURAJ, bearing University Register Number

18TUCMD069, and is being submitted in partial fulfilment for the award of

the Masters Degree in Business Administration of Bangalore University.

The report has not been submitted earlier either to this

University/ Institutions for the fulfilment of the requirement of a course of

study. Mr. SURAJ is guided by Mrs. VIDYA HULKUND, who is faculty

guide as per the regulations of Bangalore University.

Signature of Director/ Principal/ HOD


GUIDE CERTIFICATE

his is to certify that this project report entitled “TO STUDY THE
T EFFECT OF LAUNCH OF JIO ON ITS COMPETITORS”,

submitted in partial fulfilment for Bangalore University. It was carried out by

SURAJ, of Canara Bank School of Management Studies, student of 3rd

Semester, MBA holding Registration Number 18TUCMD069, under my

guidance.

Place: Bangalore Mrs. VIDYA HULKUND

Date:
ACKNOWLEDGEMENT

I, SURAJ, express my thanks and sincere gratitude to all those who have
directly or indirectly helped me to complete this project report successfully.

It gives me immense pleasure to present this project report on “TO STUDY THE
EFFECT OF LAUNCH OF JIO ON ITS COMPETITORS” in partial fulfilment of
post- graduate degree MBA.

On the very outset of the report, I would like to extend my sincere and
heartfelt obligation toward all those who have helped me in this endeavour. Without
their active support, guidance, cooperation and encouragement, I would not have been
able to complete this project.

I also thank to Dr. Y. Nagaraju, Dean & Director of Canara Bank School
of Management Studies for providing me the opportunity to embark on this project.

I express my deep and profound sense of gratitude to my Internal Guide,


Mrs. VIDYA HULKUND, of Canara Bank School of Management Studies, inspired,
guidance, valuable suggestion and sustained help which enabled me to successfully
prepare this project.
INDEX

Chapter No. Particulars Page No.

1 INTRODUCTION 1-4

2 INDUSTRY PROFILE 5-20

3 COMPANY PROFILE 21-46

4 RESEARCH METHODOLOGY 47-49

5 DATA INTERPRETATION 50-72

FINDINGS, CONCLUSIONS &


6 73-76
SUGGESTIONS

7 REFERENCES & BIBLIOGRAPHY 77

8 ANNEXURE
LIST OF TABLES

SL No. Particulars Page No.

1. JIO’s Timeline 26

2. Table representing gender classification 51

3. Table representing age classification 52

4. Table representing classification of education 53

5. Table representing profession classification 54

6. Table representing classification of monthly income 55

7. Table representing respondent’s current network provider 56

8. Table representing monthly spending on network provider 57

9. Table representing sources of information about JIO 58

10. Table representing duration of usage of previous network 59

11. Table representing duration of JIO usage 60


Table representing various factors considered in selecting new
12. 61
network provider
13. Table representing previously used network provider 62

14. Table representing various usage of previous network provider 63

15. Table representing various factors attracting toward JIO network 64

16. Table representing data usage on daily basis 65

17. Table representing preferred recharge cycle 66

18. Table representing preferred recharge plans 67

19. Table representing preference to JIO among network providers 68

20. Table representing course of action after using JIO 69

21. Table representing action taken by respondents after using JIO 70

22. Table representing satisfaction level after using JIO 71

23. Table representing recommendation level of respondents 72


LIST OF GRAPHS

SL No. Particulars Page No.

1. Pie- chart representing gender classification 51

2. Bar graph representing age classification 52

3. Radar- chart representing classification of education 53

4. Radar- chart representing profession classification 54

5. Bar- graph representing classification of monthly income 55

6. Radar- graph representing respondent’s current network provider 56

7. Bar- graph representing monthly spending on network provider 57

8. Radar- chart representing sources of information about JIO 58

9. Bar- graph representing duration of usage of previous network 59

10. Bar- graph representing duration of JIO usage 60


Radar- chart representing various factors considered in selecting
11. 61
new network provider
12. Radar- chart representing previously used network provider 62
Radar- chart representing various usage of previous network
13. 63
provider
Radar- chart representing various factors attracting toward JIO
14. 64
network
15. Bar- graph representing data usage on daily basis 65

16. Bar- graph representing preferred recharge cycle 66

17. Radar- chart representing preferred recharge plans 67

18. Pie- chart representing preference to JIO among network providers 68

19. Pie- chart representing course of action after using JIO 69

20. Pie- chart representing action taken by respondents after using JIO 70

21. Pie- chart representing satisfaction level after using JIO 71

22. Pie- chart representing recommendation level of respondents 72


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

CHAPTER- 1

INTRODUCTION

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The Inclination of the Customer to leave the services of one


service provider in lieu of services offered by other is termed as churn and that is what
has happened in recent past after the introduction of Reliance Jio in Indian telecom
Industry. Reliance Jio Infocomm, a part of Reliance Industries Limited (RIL) started its
operation on 1st September 2016, and launched its services through internet using 4G
(Fourth-Generation) technology to transfer voice and data services. Reliance Jio, in a
statement, said that they hope to get 100 million subscribers in the shortest period of
time, which has as per the company’s expectations. As per the recent report published
by the Telecom Regulatory Authority of India (TRAI) the subscriber base of telecom
companies in India in October, 2017 for Bharti Airtel stood at 285 million followed
by Vodafone at 208 million, Idea Cellular at 191 million, and Reliance Jio at 145.9
million making Reliance Jio the fourth largest telecom operator in India within a
span of one year. At present, in India, Reliance Jio is the only telecom operator that
offers fully data centric services, entirely based on voice over long-term evolution
(VoLTE) technology, which enables voice to carry over an internet protocol (IP)
network at a higher speed than earlier 2G and 3G traditional networks. Anupam
Srivastava stated that Reliance JIO’s existence has posed a challenge of survival to
other telecom operators in India by sharply reducing the tariffs.
In the past ten years, the Indian telecom industry has changed
drastically, where it was only at 14.6% tele-density in mobile segments in Financial
year 2007 but has reached 90.7% in the financial year 2017 (IBEF, 2018). In the
year 2017, the telecom sector witnessed immense job losses of 40,000. This trend is
expected to increase with job loss reaching 80,000-90,000 in the year 2018 (Online,
2019). This is because the Indian telecom industry is facing financial difficulty
because of lower profit margins and increased competition.
The purpose of this paper is: 1. to analyze the impact of
Reliance Jio (Reliance Jio) on Indian Telecom Industry, 2. To examine the
factors influencing customer churn from other telecom operators towards
Reliance Jio, 3.To study the impact of Reliance Jio on Indian telecom industry.
An empirical study was done and data was collected through various reports,
research publications, and other internet sources to achieve the 3rd objective. To
explore the 2nd objective, in-depth interviews of customers who were using
Reliance Jio services were done. The Qualitative Interviews of the respondents
were examined to identify factors influencing customer churn in Telecom Industry.

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After the globalization of Indian financial system in 1991, the


telecommunication sector remained one of the most happening sectors in India. The
recent years witnessed the speedy and remarkable changes in the field of
telecommunications. In the last few more years, growingly companies, both overseas
and domestic came into cellular service market and offered large number of services to
the people.

A consumer may be referred to anyone affianced in evaluating,


acquiring, using or disposing of services which he/she expects will persuade his/her
wants. If any producer caries out the marketing program ignoring the consumer
preferences, he cannot possibly achieve his ultimate objectives. A manufacturer must
plan his production and distribution to suit the consumer’s convenience rather than his
own. Therefore, a marketer must know more and more about the consumers, so that the
products can be produced in such a fashion to give a satisfactory feeling to the
customers.

India is the world's second-largest telecommunications market, with around


1,186.63 million telephone subscriber bases at the end of June 2019. The telecom
market can be split into three segments – wireless, wire line and internet services. The
wireless market segment comprises of 98.2 per cent of the total subscriber base, as of
June 2019 compared to 95.90 per cent in FY11. As of May 2019, rural subscribers form
42.9 per cent of total telephone subscribers and in April 2019 43.33 per cent, compared
to 33.35 per cent in FY11.

India is also the second largest country in terms of internet subscribers. As of


2019, India holds the world’s highest data usage per smartphone at an average of 9.8
GB per month. It is expected to double to 18 GB by 2024. The number of internet
subscribers in the country increased at a CAGR of 41.58 per cent during FY06-FY18 to
reach 636.73 million in 2018-19. India became the world’s fastest-growing market for
mobile applications in the first quarter of 2018 and remained as the world’s fastest
growing market for Google Play downloads in the second and third quarter of 2018. The
internet user base in India has crossed 500 million mark and is likely to reach 627
million by end 2019. Total wireless data usage in India grew 119 per cent year-on-year
to 1,58,50,560 terabytes between January-March 2019.

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Gross revenue of the telecom sector stood at Rs 2,37,416.6 crore (US$ 33.97 billion) in
2018-19.

Strong policy support from the government has been crucial to the
sector’s development. Foreign Direct Investment (FDI) cap in the telecom sector has
been increased to 100 per cent from 74 per cent. FDI inflows into the telecom sector
during April 2000 – March 2019 totalled to Rs 2.29 lakh crore (US$ 32.82 billion). As
of January 2019, expenditure on telecom infrastructure and services by Government of
India grew six-fold to Rs 60,000 crore (US$ 8.31 billion) between 2014-19.

To propel the sector on a growth path, the Government of India has launched the
National Digital Communications Policy, 2018, which envisages attracting investments
worth US$ 100 billion in the telecommunications sector by 2022.

At the present time, no one is living without mobile phone. Many number
of network services are available in this world. Especially, the study is focused on
Reliance Jio network which has been founded in 2007. It is a LTE mobile network
operator in India. It is a wholly owned subsidiary of Reliance Industries headquartered
in Mumbai which provides wireless 4G LTE service network (without 2G/3G based
services) and is the only 100% voLTE (Voice over LTE) operator in the country. It
encompasses all 22 telecom circles in India. The Reliance unit has been buying
spectrum since 2010 under a plan to return this quarter to a market that now has more
than 1 billion mobile subscribers. It invests into wireless unit of about 150 billion rupee.
Jio has issued 15 billion new share at Rs.10, each to existing shareholders. Reliance
communications owns and operates the world’s largest next generation IP enabled
connectivity infrastructure which comprises 2,80,000 kilometers of fiber optic cable
systems in India, USA, Europe, Middle East and the Asia Pacific region. Reliance
Group ranks among India’s top private sector business houses in terms of net worth.
The company has a good customer base and it covers over 21000 cities and towns and
over 4,00,000 villages of India. Reliance Jio is in process to set-up the 4G LTE
infrastructure. RJIL is setting up reliance (4th generation) high speed internet
connectivity, rich communication services and a range of digital services on pan India
basis in key domains such as education, healthcare, security, financial services,
government citizen interfaces and entertainment.

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CHAPTER- 2

INDUSTRY PROFILE

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2.1 Overview of Global Telecom Industry

In this 21st century, consciousness and indulgent on the


Information and Communications Technology (ICT), is ever-increasing, with majority
of the nation in the world specially the developing ones. This resulted in realizing the
implication of a competent telecommunication network for the growth of the economy.

To extend information and telecommunication technology, 189 nation of


the United Nations (UN) met at the Fifty-Fifty General Assembly on September 2000.
Countries have affirmed their assurance to advance the living condition of poor and
depressed in the world by taking up powerful poverty programmes. One of the targets of
this declaration was adherent to “In co-operation with the private sector make available
the benefits of new technologies mainly information as well as communication”. In
order to monitor the progress, following indicators were developed by them:

Wireless and wire line tele-density.

Personal computers in use for 100 units of population.

Internet user per 100 units of population.

By 1995, the major part of low income budding countries of the world,
made their economies global, by liberalizing the domestic licensing and vital policies, to
assist inflow of foreign wealth into the infrastructure sector, more prominently in the
telecommunication sector.

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2.2 Technology

Global system for Mobile communication (GSM with


around 80-85 % market share) and Code Division Multiple Access (CDMA with around
10-15 % market share) are two common mobile communication technologies. These
two technologies seek to resolve the same problem: to dive the finite Radio Frequency
spectrum among various users. India largely goes with the GSM mobile technology, in
the 900MHz and 1800MHz band. First one has better transmission distinctiveness,
thereby enabling lower capex cost for expansion of network coverage, as lesser number
of base stations and towers would be required when compared to 1800MHz band.

CDMA (Code Division Multiple Access–underlying technologies


used in GSM's 3G and IS-95's 2G), uses a unique category of digital modulation called
spread spectrum which spreads the voice data over a very wide channel in pseudo-
random fashion. Randomization will not be done by the receiver to collect the bits
together and produce the sound.

2.3 Introduction to Indian Telecom Industry


The ever-present picture of a shop offering to re-charge
your mobile phone is representative of the telecom revolution that has altered the face of
India in the first decade of the 21st century with noteworthy social and economic impact.

The telecommunication sector is playing an progressively more important


role in the Indian economy by causative to Gross Domestic Product (GDP), by
generating revenue for the government and by creating employment. The total number
of telephone subscribers has grown at a Compound Annual Growth Rate (CAGR) of 35
per cent from 2001 to 2011. Demand factors like ultra low cost of handsets, low tariffs
and ease of using a phone and supply side factors have made mobiles popular in India.

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The telecom industry has been divided into two most important segments,
namely, fixed cellular services and wireless cellular services. Besides, it also includes
internet services, VAS, PMRTS and VSAT. In today’s information era, the telecom
industry plays a very crucial role. This industry has been well thought-out as the
backbone of industrial and economic expansion and it has been supporting voice and
data services at rapid speeds, thereby transforming human communication. As greater
part of the population resides in rural parts of the country, it is crucial and need of the
hour for the government to take compulsory steps to maximize rural tele-density, in
spite of government initiatives like, Universal Service Obligation Fund. Suitable
measures are required to enhance the rural tele-density and bridge the rural-urban gap in
tele-density.

With the majority of the prepaid subscriptions, India has one of the lowest
mobile tariffs in the world due to the innovative budget telecom network model that was
developed in South Asia. As per usage statistics, it is observed that Indians talk more on
phones when compared to international counterparts.

An important aspect of the policy making and regulatory processes in


telecommunications sector is done by three main agencies in the telecommunications
sector vis-à-vis DoT (Department of Telecommunications), TRAI (Telecom Regulatory
Authority of India) and TDSAT (Telecommunications Dispute Settlement and
Appellate Tribunal). The private sector performs better in terms of return on average
capital employed and majority of the investment over the decade has come from this
sector.

The impact of mobiles on individual sections of the society are studied which
explicit mobile as an empowerment tool as it is showing a positive impact on the social
status of Indian women by making women feel more secure. Mobiles are even used to
deliver various benefits like health services, education services, banking services and
commercial services etc.

The three important objectives of the coming decade are (i) to


overcome the digital divide, (ii) growth of broadband sector, and (iii) development of
the telecommunications manufacturing sector.

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2.3.1 NATIONAL TELECOM POLICY 1994 (NTP 1994)

The National Telecom Policy was announced in 1994 which


intended at improving India's competitiveness in the overall market and provides a base
for a rapid growth in exports. This policy ultimately facilitated the emergence of
Internet services in India on the back of established basic telephony communication
network. This policy also paved way for the entry of the private sector in telephone
services.

The main objectives of the policy were:

 To make sure telecommunication is within the reach of all, that is, to ensure
availability of telephone on demand as early as possible
 To accomplish worldwide service covering all villages, that is, permit all people
to access certain basic telecom services at affordable and reasonable prices
 To ensure world-class telecom services. Remove consumer complaints, resolve
disputes and encourage public interface and provide a wide permissible range of
services to meet the demand at reasonable prices
 To ensure that India emerges as a major manufacturing base and major exporter
of telecom equipment
 To protect the defense and security interests of the nation.

The policy also announced a series of specific targets to be achieved


by 1997 and further recognized that to achieve these targets the private sector
association and investment would be required to bridge the resource gap.

Thus, to meet the telecom needs of the nation and to achieve international
comparable standards, the sector for manufacture of telecom equipment had been
progressively relicensed and the sub-sector for value-added services was opened up to
private investment (July 1992) for electronic mail, voice mail, data services, audio text
services, video text services, video conferencing, radio paging and cellular mobile
telephone. The private sector participation in the sector was carried out in a phased
manner. Initially the private sector was allowed in the value added services, and
thereafter, it was allowed in the fixed telephone services. Subsequently, VSAT services
were liberalized for private sector participation to provide data services to closed user
groups.

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2.3.2 Establishment of TRAI

The entry of private players necessitated independent


regulation in the sector; therefore, the TRAI was established in 1997 to regulate telecom
services, for fixation/revision of tariffs, and also to accomplish the commitments made
when India joined the World Trade Organization (WTO) in 1995. The establishment of
TRAI was a positive step as it separated the regulatory function from policy-making and
operation, which continued to be under the purview of the DoT.

The functions allotted to the TRAI included:

 To recommend the need and timing for introduction of new service provider
 To protect the interest of customers of telecom services
 To settle disputes between service providers
 To recommend the terms and conditions of license to a service provider
 To render advice to the Central government on matters relating to the
development of telecommunication technology and any other matter applicable to
the telecommunication industry in general.

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2.3.3 NEW TELECOM POLICY 1999 (NTP 1999)

In acknowledgment of the fact that the entry of the


private sector, which was envisaged during NTP-94, was not pleasing and in response
to the concerns of the private operators and investors about the viability of their
business due to non realization of targeted revenues the government decided to come
up with a new telecom policy. The most important milestone and instrument of telecom
reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy,
1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April
1999.Moreover, convergence of both markets and technologies required realignment of
the industry. To achieve India’s vision of becoming an IT superpower along with
developing a world class telecom infrastructure in the country, there was a need to
develop a new telecom policy framework. Accordingly, the NTP 1999 was framed with
the following objectives and targets:
 Availability of affordable and effective communication for citizens was at the core
of the vision and goal of the new telecom policy
 Provide a balance between provision of universal service to all uncovered areas,
including rural areas, and the provision of high-level services capable of meeting
the needs of the economy
 Encourage development of telecommunication facilities in remote, hilly and tribal
areas of the nation
 To facilitate India’s journey to becoming an IT superpower by creating a modern
and efficient telecommunication infrastructure taking into account the
convergence of IT, media, telecom and consumer electronics
 Convert PCOs, wherever justified, into public telephone information centers
having multimedia capability such as ISDN services, remote database access,
government and community information systems etc.
 To bring about a competitive environment in both urban and rural areas by
providing equal opportunities and level playing field for all players
 Providing a thrust to build world-class manufacturing capabilities and also
strengthen research and development efforts in the country
 Achieve efficiency and transparency in spectrum management
 Protect the defense and security interests of the country
 Enable Indian telecom companies to become global players.

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In line with the above objectives, some of the specific targets of the NTP 1999 were:
 Make available, telephone on demand by 2002 and achieve a tele- density of 7%
by 2005 and 15% by 2010
 Encourage development of telecom in rural areas by developing a suitable tariff
structure so that it becomes more affordable and by also making rural
communication mandatory for all fixed service players and thus achieve a rural
tele- density of 4% by 2010 and provide reliable transmission media in all rural
areas.

2.3.4 Growth of Telecommunication services in India

Indian Telecom Services are broadly classified into two major segments.
 Telephone, wire lines and wireless
 Internet Services

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2.3.4.1 Total Subscriptions of Telephone

Telephones sector growth in India is summarized in three stages:


(Figure 2.5) Stage I-(Before 1990): during this period telecom sector was mainly
state owned. Stage II-(1991-2000): Refers to the period between the onset of
reforms, but the absence of wireless phones. Stage III-(post 2001): This is mainly
the wireless era.

Wireless phones were introduced in mid-1990s which resulted in


increased competition and has completely crossed fixed line connections in
September 2004. Hence, number of telephone subscriptions grew at a Compound
Annual Growth Rate (CAGR) of 35.3 per cent during 2001–11.

Total Number of Telephone Subscribers in India, 1981-2011 (million)

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Wire line Subscriptions

Wire line subscribers augmented from 2.3 million by 1981 to 32.44


million by 2000 to reach its peak at 50.18 million in 2006. From then, downfall
started in Wire line subscription (Figure 2.6). By the end of February 2012, wire
line subscriptions collapsed to 32.33 million. India has to follow the worldwide
trend where the mobile phone is a substitute to fixed line phone.

Total Number of Wire line Subscribers and Growth Rate in India, 1981-2011

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Mobile Phone Subscriptions

Wireless segment has been the key contributor to record growth in


telephone subscriptions with its wide range of service offers. After acquiring
triple digit growth rate during the first couple of years, growth rate was reduced
to 35.6 per cent during 1998. The growth rate of wireless phones increased again
till 2003 and maximized at 159.2%. Since then, the growth rate has tapered
down and has pointed around 51.8% during 2004–11. Growth rate came down to
18.8% in 2011. Mobile phones accounts for approximately 96.6 percent of the
total subscriptions as of February 2012.

Total Number of Wireless Subscribers and Growth Rate in India,


1996-2011

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Telephones

Fixed line and wireless segments are shared by both private and public
players, with private sector dominating wireless segment and public sector
dominating fixed line segment. Fierce competition in both the segments is being
experienced by major telecom players due to which they have come up with new
tariffs and discount schemes to gain competitive edge.

Public sector has dominated the private sector in the delivery of wire line
services. In this segment, the state-owned public sector incumbents, namely BSNL
and MTNL have been the dominant players. Private players such as Bharti,
Reliance and Tata Tele services have also marked their presence. Due to this,
share of BSNL and MTNL have come down from 100 per cent in March 2000 to
81 per cent in December 2011.

The two public sector enterprises (PSEs), BSNL and MTNL, were allowed
belated entry into the cellular segment in the beginning of the present decade.
Bharti, Reliance, Vodafone, BSNL, Tata Tele Services, and Idea companies have
dominated the wireless segment. There are many smaller players, who operate
only in a few states.

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2.3.4.2 Internet Services


With a view to encourage growth of Internet and increase its
penetration, Internet Service was opened for private participation in 1998 which
resulted in the entry of a number of private internet service providers (ISPs) in the
country.

Distribution of internet subscribers in India in June 2019, by service provider

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MAJOR PLAYERS IN TELECOM INDUSTRY

Headquartered in New Delhi, India, Bharti Airtel Ltd is a leading


global telecommunications company with operations in 20 countries across Asia and
Africa. The company ranks amongst the top four mobile service providers, globally, in
terms of number of subscribers. In India, the company's product offerings include 2G,
3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL
broadband, IPTV, DTH, enterprise services including national and international long
distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless
services and mobile commerce.

2015 Launches 4G mobile services in 296 towns

2014 Buys Loop Assets for US$ 105 million

2013 Airtel signs definitive agreement to fully acquire Warid Uganda

2012 Launched its mobile wallet service -- Airtel Money

2012 Airtel launches Green Data Centre in Mumbai

2009 Bharti Airtel Introduces India’s First Android™ Phone, the HTC Magic for Airtel
Customers

2006 Bharti Airtel and Microsoft enter into a strategic partnership to offer software and
services for small and medium business (SMB) market in India

2001 Signs first NLDO License in India

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Vodafone group is a mobile communication company which


provides service to mobile voice, messaging, data and fixed line. The company money
transfer service m-paisa enables people in emerging markets, to send and receive money
through a mobile phone. Vodafone India Limited, formerly Vodafone Essar Limited, is
the second largest mobile network operator in India after Airtel by subscriber base. It is
headquartered in Mumbai, Maharashtra. It has approximately 173 million customers as
of September 2014. It offers both Prepaid and Post-paid GSM cellular phone coverage
throughout India with good presence in the metros.

Vodafone India Ltd, headquartered in Mumbai, is the second largest


mobile network operator serving over 150 million customers in India with a presence in
all telecom circles. The company is a member of the Vodafone Group and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
license for Mumbai. Vodafone India has firmly established a strong position within the
Vodafone Group too, making it the largest subscriber base globally.
In line with the government’s objective to improve rural
penetration of telephony services, the company has also worked continuously in the last
few years to establish a strong rural presence. Vodafone has marked a growth of over 21
per cent in its rural subscriber base in FY 2011–12 to become the second largest rural
wireless operator in the country.
2013 Unveils its first ‘Retail of tomorrow’ or ‘ROTO’ store in Karnataka

2012 Receives award from tele.net as the best 3G service operator – Telecom Operator
Awards 2012

2011 Ranks No. 1 in overall customer satisfaction – Hindustan Times’ customer satisfaction
National Survey

2010 Launches mobile applications store

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Idea Cellular, an Aditya Birla Group company, is a pan-India integrated GSM operator
offering 2G and 3G services, has its own National Long Distance (NLD) and
International Long Distance (ILD) operations, and Internet Service Provider (ISP)
license. With revenue in excess of US$ 5 billion, market share of nearly 18.2 per cent,
and subscriber base of over 165 million. Idea is India’s third largest mobile operator.
Idea is the sixth largest mobile operator in the world, based on number of subscribers in
single country operations (as per GSMA Intelligence). Idea carries traffic of over 2
billion minutes a day.
Idea launched 4G services in early 2016. The company has a well
established network across the length and breadth of the country comprising of over
1,49,196 cell sites covering 7,513 towns and 3,63,580 villages as on the first quarter of
FY 16. Using the latest in technology, Idea provides world-class service delivery
through the most extensive network of customer touch points, comprising of nearly
6,752 exclusive Idea touch points.

2015 Launches 3G Services in Delhi on 900 MHz Spectrum

2014 Raises Rs 3,000 crore (US$ 454.1 million) via Qualified institutional placements

2013 Becomes 3rd largest mobile operator in subscriber terms

2012 Becomes a US$ 4 billion company in revenue

2011 Becomes first operator to announce the launch of Mobile Number Portability

2010 Wins 3G Spectrum in 11 service areas in India

2009 Becomes a pan-India operator

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CHAPTER- 3

COMPANY PROFILE

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RELIANCE JIO

3.1 General profile of Reliance Jio


 Infotel Broadband Services Limited (2009 - 2013)
Formerly called  Reliance Jio Infocomm Limited (2013 - 2015)

Type
Subsidiary

Industry
Telecommunications

Navi Mumbai, Maharashtra, India


Headquarters

Sanjay Mashruwalla (Managing Director)


Key people Jyotindra Thacker (Head of IT)
Akash Ambani (Chief of Strategy)
Mobile telephony, broadband, Wifi,Router and 4G Data
services

Jio Apps
Products
MyJio, JioChat, JioPlay, JioBeats, JioMoney, JioDrive,
JioOnDemand, JioSecurity, JioJoin, JioMags,
JioXpressNews, Jionet WiFi
Parent Reliance Industries
Subsidiaries LYF

www.jio.com
Website

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Jio also known as Reliance Jio and officially as Reliance Jio Infocomm
Limited (RJIL) is an upcoming provider of mobile telephony, broadband services, and
digital services in India.

Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries


Limited (RIL), India’s largest private sector company, is the first telecom operator to
hold pan India Unified License. Formerly known as Infotel Broadband Services Limited
(IBSL), Jio will provide 4G services on a pan-India level using LTE technology. The
telecom leg of Reliance Industries Limited, it was incorporated in 2007 and is based in
Mumbai, India. It is headquartered in Navi Mumbai.

RJIL is setting up a pan-India telecom network to provide to the highly


underserviced India market, high speed internet connectivity, rich communication
services and various digital services on pan-India basis in key domains such as
education, healthcare, security, financial services, government citizen interfaces and
entertainment. RJIL aims to provide anytime, anywhere access to innovative and
empowering digital content, applications and services, thereby propelling India into
global leadership in digital economy.

Reliance Jio is part of the “Bay Of Bengal Gateway” Cable System,


planned to provide connectivity between South East Asia, South Asia and the Middle
East, and also to Europe, Africa and to the Far East Asia through interconnections with
other existing and newly built cable systems landing in India, the Middle East and Far
East Asia.

RJIL’s subsidiary has been awarded with a Facility Based Operator License (“FBO
License”) in Singapore which will allow it to buy, operate and sell undersea and/or
terrestrial fiber connectivity, setup its internet point of presence, offer internet transit
and peering services as well as data and voice roaming services in Singapore.

R-Jio, meanwhile, faces its share of challenges in terms of return on investment and
capturing market share.

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The company will battle for subscribers with leading telcoms such as Bharti Airtel Ltd,
Vodafone India Pvt Ltd and Idea Cellular Ltd.

The Dominant Players in the Telecom Sector in India (as in May 2019) are:

Reliance Industries Chairman Mukesh Ambani committed an investment of


Rs. 2,50,000 crores on "Digital India" and said he expected the group's initiatives under
it will create over 5,00,000 direct and indirect jobs.

"Digital India as company has seen empowers them to fulfill their aspirations. Reliance
JIO has invested over Rs. 2,50,000 crores across the Digital India pillars," Ambani said,
adding: "I estimate Reliance's 'Digital India' investments will create employment for
over 5,00,000 people. " Ambani said the launch of Digital India initiative was a
significant occasion in an information age where digitization was changing the way one
lives, learns, works and plays. It can transform the lives of 1.2 billion Indians using the
power of digital technology. And as well as "So 80 percent of the 1.3 billion Indians
will have high-speed, mobile Internet. And by 2017, company could cover 90 percent.
And by 2018, all of India would be covered by this digital infrastructure.

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3.2 History of Reliance Jio

In 2005, Reliance Industries Limited split and there was one major de-
merger of note for Mukesh Ambani. His dream project- Reliance Infocomm became a
part of Anil Dhirubhai Ambani Group. Mukesh Ambani went on to acquire Infotel
Broadband Services Limited. The company was the only successful bidder for pan-India
4G network. Reliance then worked on establishing base for high-speed optical fibre 4G
network. It is actually capable of much more than 4G.

Reliance Jio was originally called IBSL - In June 2010, after the broadband
wireless auction (BWA), Reliance Industries bought 96% stake in Infotel Broadband,
which had won 22 circles in the auction. At a total cost of Rs 4,800 crore, it was the
only company to have won broadband spectrum in all 22 zones across the country.
Infotel started operations as a telecom subsidiary of Reliance. In January 2013, it was
renamed to Reliance Jio Infocomm Limited.

If market trends are anything to go by, trajectory of RJIL has been on an upswing. It is
not a publicly listed company in BSE. But the impact its launch had on Bharti Airtel,
Vodafone, and Idea clearly showed the trajectory it is following. With a target of
covering pan-India by first quarter of 2017 and letting people into the world of data-giri,
they have huge plans with all the bases covered.

At the price point and service quality, there are virtually no competitors of RJIL.
These mark ominous signs for the other companies, while RJIL will continue to take an
upward trajectory.

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Reliance Jio Infocomm – Jio Digital Life

2019 Launched JioFiber in August

2019 Became the second largest operator in terms of subscribers in India

2019 Launched Digital Udaan for first time users

Approved plan to spin off fibre and tower assets


2018 Adjudged 'Best Mobile Operator Service for Consumers' at Mobile World
Congress

Announced acquisition of wireless spectrum, tower, fiber and MCN assets of


2017
Reliance Communications

2017 Launched its Jio Phone

2016 Surpasses 50 million subscribers within 83 days of launch

2016 Commercial roll-out of services in September 2016

2013 Infotel Broadband renamed as Reliance Jio Infocomm

2010 Reliance Industries Limited purchased 95 per cent stake in Infotel Broadband

Table showing Timeline of Reliance JIO

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3.3 Acquisitions & Subsidiaries

 66% stake in DEN for Rs 2,290 crore: For Jio GigaFiber


 51.3% stake in Hathway for Rs 2,940 crore: For Jio GigaFiber
 25% stake in Balaji Telefilms for Rs 413 crore: For content creation and
JioCinema, JioTV
 Radisys for Rs 510 crore: For IoT and 5G services
 Acquired 73% stake in Embibe: For online education
 Acquired Saavn for Rs 670 crore: For online music streaming
 16% stake in KaiOS for Rs 46 crore: For JioPhone

3.4 Agreements

 An agreement was signed with Ascend Telecom for more than 4,500 towers across
India. (June 2014)
 An agreement was signed with Tower Vision for their 8,400 towers across India.
(May 2014)
 An agreement was signed with ATC India for their 11,000 towers across India.
(April 2014)
 An agreement was signed with Viom Networks for their 42,000 telecom towers.
(March 2014)
 Agreement was signed with Bharti Airtel for a comprehensive telecom
infrastructure sharing agreement to share infrastructure created by both parties to
avoid duplication of infrastructure wherever possible. (December 2013)
 A key agreement for international data connectivity with Bharti to utilize dedicated
fiber pair of Bharti’s i2i submarine cable that connects India and Singapore.
(April 2013)
 Agreements with Reliance Communications Limited for sharing of RCOM’s
extensive inter-city and intra-city optic fiber infrastructure of nearly 1,20,000
fiber-pair kilometers of optic fiber and 500,000 fiber pair kilometers respectively
(April 2013 / April 2014), and 45,000 towers (June 2013).

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3.5 Operations & Strategies


Reliance Jio disrupted the telecom sector when it launched its services in
September 2016, triggering a wave of consolidation in one of the world’s most crowded
telecom markets. Perhaps some credit can be attributed to Jio for the turn of events.

Jio’s entire approach was one of market disruption. Its three-


pronged focus on broadband networks, affordable smartphones, and the availability of
rich content and applications enabled Jio to create an integrated business strategy from
the very beginning.

The various strategies adopted by Reliance Jio to capture the


Indian market included free voice, apps, SMS, and data initially, which pulled 100
million subscribers within 170 days; bundled entertainment of apps; huge investment in
physical advertisements like flyers and posters in most of the parts of the country,
sponsorship of events like Indian Super League; low-cost mobile phones; new and very
affordable pricing strategies, traditional pricing strategies were having 12 billing cycles
(recharges) but it got reduced to about three to four billing cycles (recharges); free voice
calls, free roaming and 100 SMS per day; plans like 84 GB data for 84 days at Rs 399
as against the prevalent 1 GB data for Rs 190. High-speed data was now a commodity.

The telco’s operational strategy was equally aggressive. Extensive construction of


towers, forging agreements with towercos, laying extensive fiber backhaul, and last mile
fiber connectivity; construction of international networks like Bay of Bengal Gateway;
and investment in licenses and spectrum were the initial steps. Technological
advancements like voice over long term evolution and the vision for upgrades like 5G
so that it is prepared for future development innovation like progress to 5G with
negligible extra capital use in systems were part of the process technology. The
company’s distribution strategy included more margins and schemes to distributors and
retailers, fast and digital SIM activations through e-KYC, and 4G smartphones and
other merchant devices for retailers to start business.

2017-18 marked the commencement of commercial operations of Jio. In


its very first year of commercial operations, the digital services business recorded
revenues of Rs 23,916 crore, with year-end subscriber’s base at 186.6 million. Reliance
Jio reported strong financial performance for the year despite competitive pressures
with net profit at Rs 723 crore

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JIO’s end-to-end all-IP network is the most differentiated network with


functionalities such as SDN and NFV, and has been consistently rated as the fastest
network in India by TRAI’s MySpeed application over the last 15 months. Jio’s average
download speed of 17.9 Mbps is more than twice the network speed available on any
other network. Jio has also been consistently rated to have the widest LTE coverage in
the country. During FY 2017-18, it continued expanding the 4G network coverage, and
further deepening in existing areas to achieve 99% population coverage.

Jio is constantly striving to enrich the digital experience of its customers through
innovative applications developed in-house, or in collaboration with the unique
ecosystem of small and large partners.

Making life better for everyone. Jio offers its subscribers unique content such as
PyeongChang 2018 Olympic Winter Games and Jio Cricket Play Along. The MyJio app
is the most popular self-care app with over 150 million downloads and substantial
additional features. Jio has forged partnerships with the likes of Balaji Telefilms, Eros
International, and Saavn to bring unique content with an intuitive user interface to every
Indian.

The company continues to make progress on delivering enterprise


solutions, FTTH and IoT, with beta trials initiated in a few locations. These services are
being offered using the existing integrated network and platforms. During the year, Jio
was awarded the first rank in India and 17th globally in the Fast Company’s World’s 50
Most Innovative Companies list for 2018. Jio also won the Best Mobile Operator
Service for Consumers award at the recent Mobile World Congress 2018. It was
awarded The Disruptors title in the CNBC TV18’s India Business Leader Awards
2018. JioTV won the Best Mobile Video Content award at the Global Mobile Awards
2018.

Reliance Jio announced the launch of the world’s first artificial


intelligence (AI) based brand engagement platform – JioInteract. The first of many
services to be launched on this platform is the Live Video Call that features India’s
favorite celebrities.

Reliance and Radisys Corporation, a global leader of open telecom solutions,


have entered into a definitive agreement under which Reliance will acquire Radisys for
USD 1.72 per share in cash. This acquisition will accelerate JIO’s global innovation and
technology leadership in the areas of 5G, IoT, and open source architecture adoption.

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JIO’s mission is to connect everyone and everything, everywhere – always at


the highest quality and the most affordable price.

Reliance Industries Limited is expected to go for an initial public offering (IPO)


for its telecom unit Reliance Jio Infocomm Limited in the next 2-3 years. The plan for
listing R- Jio IPO will be formulated after the company’s consumer businesses, which
include Reliance Jio, overtake its energy business in terms of revenue.

3.4 Products & Services

 Reliance Jio Broadband service

Since the Jio was laying cable all across the country they can easily
prove a high speed optic fiber based broadband service throughout the country.
They already started their program. It is reported that average speed 100Mbps for
home users and even users got up to 800Mbps in Pune.

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 Jio DTH Service

Jio is also expected to launch their DTH service, there are a couple
for images of the DTH device across the social media and websites. In order to use
the DTH service the customers need the Jio TV app, Jio Sim and a Jio Home
broadband connection. Users can enjoy the local channels also via Jio DTH. They
also support saving the shows to their cloud space provided by Jio.

 LYF Smartphone

Jio had earlier tied up with Intex for providing handsets with 4G
VolTe technology all over the country. They manufactured several models low on cost
and high on features- ready for the next level of 4G and voice telephony. However, they
soon decided to launch their own brand of phones. They named the range as Lyf
phones. The names have been consistent with the models such as Water 1, Water 2,
Flame 1, Flame 2, Wind, Earth, among others.

At present, the company offers more than 15 handsets with varying range
of features. They are mostly made in China phones repackaged as Lyf phones. They
come with a Jio preview offer, prior to September 5, the only way to get access to a Jio
Sim.

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 JIO Apps

JioTV – live TV services.

JioCinema – just like Netflix, a video library.

JioChatMessenger – like Whatsapp, a messenger service for Jio users.

JioMusic – music player and subscription model.

JioMags- Magazine reader and subscriptions.

JioXpressNews – News and daily events.

JioSecurity – Security app.

JioDrive Cloud storage app.

JioMoney Wallet – like Paytm and Airtel money.

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3.6 Future of Reliance Jio

Reliance Jio has been in the center of India's biggest internet revolution in the last
two years. The services commercially rolled out in September 2016, and things
drastically changed the entire telecom industry in a few years.

India is now one of the largest consumers of the internet on earth.

While 4G became a household name, Reliance Jio helped millions of Indians enjoy
high-speed internet and free unlimited calls at dirt-cheap rates. After a jam-packed two
years, here are the top things we expect from Reliance Jio in 2019.

Upcoming Reliance Jio Services

Reliance Jio has already planned up its big things for 2019 which includes an expansion
of awaited Jio GigaFiber service, the launch of GigaTV and its DTH services .

Let's take a look at the upcoming Reliance Jio services in 2019.

 Jio GigaFiber

Announced in July 2018, the Jio GigaFiber broadband service is in


its final leg of roll out. The registrations are already live with a pilot service being tested
in a few Indian cities. The full rollout of Jio GigaFiber services are expected by the end
of first quarter of 2019. Jio GigaFiber will offer broadband speeds up to 1Gbps with its
fiber network across 1100 cities.

 Jio DTH

Up next the company is expected to launch the Jio DTH services


with Jio GigaFiber. Reliance Jio is offering a special Jio GigaTV box with its broadband
service, which is expected to its next unannounced service. The company will roll out
its DTH services once the GigaFiber is fully connected across all the homes. The
company aims to power up more than 50 million users in its first leg.

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 Jio GigaTV

Reliance Jio will offer its Jio GigaTV with the Jio Suite when the
broadband services are offered. The platform will use the bandwidth from its fibre
network to offer TV channels which offer 4K support, video calling and added other
services. The GigaTV set-top box will support voice commands with access to 600 TV
channels, free collection of movies and millions of songs.

 Jio 5G Network

Reliance Jio is already building a 5G ready network for the future,


which may start as early as 2019. 5G is still years away to be available at a mass scale,
but Reliance Jio has been working on the next-generation network for its consumers. A
few reports suggest that the company may launch 5G services as soon as six months
once the 5G spectrum is auctioned out to offer 5G-ready LTE networks.

 Jio Phone 3

The successor to the Jio Phone 2 is expected at the Reliance Jio


AGM in July. The third generation Jio Phone 3 may see a major jump in terms of
hardware and software over the existing Jio Phone models. Reliance Jio have sold more
than 40 million original Jio Phone units till April 2018 and holds more than 11 percent
of the total worldwide feature phone shipments in the last quarter.

 Affordable Jio Smartphones

Recently a report came out saying Reliance Jio is working a number


of large-screen smartphones from its own Reliance Lyf, a subsidiary of Reliance Retail.
The latest smartphones are said to support Jio's 4G networks at a budget pricing. Jio will
also partner with some of the OEMs to launch a number of affordable large-screen
smartphone for the mass market. The company is already in talks with US-based
contract manufacturer Flex for a number of large-screen affordable smartphones to be
produced in India.

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 More Content With Jio (Disney & Marvel Tie Up)

Reliance Jio has tied up with a number of content companies to


boost its content offerings. Reliance Jio is already a partner Star India for cricket, Zee
for TV channels and AltBalaji and Eros for the web series and online entertainment
content. With Jio GigaFiber on the way, we hope to see more content on Jio's radar. The
company also tied up with online music streaming major Saavn to launch of JioSaavn .

Jio users will soon get free access to Disney Classics and Pixar animation. You
can also watch free movies from Marvel and Star Wars with a host of international films
as well as locally created content with Jio in 2019.

 Jio Enterprise Services

Reliance Jio up next will enter the enterprise server market. The pilot launch has already
happened, and the company will officially launch it by next year. Reliance Jio will offer
enterprise services for small and medium-sized businesses. Among the top upcoming
Reliance Jio services in 2019, the enterprise services will include unified
communications, cloud services, managed video conferencing, cyber security and more.

 Jio Smart Home

Reliance Jio will soon launch its much-touted Jio Smart Home with
Jio GigaFiber and GigaTV services . The company will bring a complete connected
home platform to offer services connecting smart speakers, Wi-Fi extenders, smart
plugs, door sensors, TV cameras, audio/ video dongles, smart locks and various
connected cameras. Jio Smart Home platform will allow you to connect all your smart
devices and control nearly every appliance at your home from an application.

 Jio VoWi-Fi service

Reliance Jio will launch its voice over Wi-Fi (VoWi-Fi) service in
2019. The trails are on and will start with Andhra Pradesh, Kerala, Madhya Pradesh,
and Telangana. Among the top upcoming Reliance Jio services in 2019, the Reliance Jio
VoWi-Fi is in the first list. It will offer Wi-Fi calling to help users stay connected even
without any cellular signal. BSNL already offers VoWi-Fi in select circles.

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3.7 IMPACT OF JIO LAUNCH ON ITS COMPETITORS

If more than 50% of the existing subscribers choose to stick


with Jio, it will have serious repercussions for other telecom players. “Even Jio
customers who retain plans from other companies may reduce usage, impacting their
ARPU,” says Ambani. It will become difficult for Airtel, Vodafone, Idea, etc. to grow
their user base as Jio aggressively adds customers at their expense. Fall in subscribers is
just one of the problems staring the other telecom players. Another key challenge is fall
in pricing power. “Due to aggressive pricing by Jio, pricing power in the telecom sector
has gone. Other telecom players have no option but to match, follow what Reliance Jio
is doing,” says Daljeet Kohli, Director and Head of Research, India Nivesh Securities. If
others don’t match Jio’s offers, their market share will go and, if they cut prices,
revenue will be hit. The fall in net profits will be more than the fall in revenues.

Despite the dangers, stock prices of other companies have not been
negatively impacted because of long-term prospects of a more consolidated telecom
sector. “Since data consumption is going to increase exponentially, everyone will
benefit in the next 3-5 year period,” say Joshi. Investors, however, should be cautious.
“Since we don’t know how long this madness will continue, it is better not to get into it
now,” adds Kohli.

Airtel, however, is likely to survive this phase and can be a good buy for
the long term. “Airtel possesses the leanest cost structure and is improving its capital
efficiency,” says Pankaj Pandey, Head of Research, ICICI Direct. Its subscriber market
share is expected to 29.1% and revenue market share to 33.3% due to its acquisition of
Telenor.

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Disruptive Newcomer

In September 2016, India’s mobile market was rocked by the launch


of disruptive newcomer Reliance Jio Infocomm, which initiated a potentially
devastating price war and forced the rapid acceleration of the sector’s evolution.

Backed by deep-pocketed petrochemical giant Reliance Industries Limited, Jio’s


entrance has had a dramatic–and not entirely positive–impact on the sector, speeding up
the deployment of high speed mobile data networks and driving down costs for end
users, but also placing financial pressure on already struggling businesses, spurring a
wave of consolidation.

Price War

While the threat of Jio’s launch had a strong impact on encouraging


investment and expansion, the price war sparked by the tellco’s actual inauguration has
had a worse impact on the market.

The 4G-only provider kicked off services in early September 2016 with a promotional
offer providing customers with free unlimited services until December 31, 2016.

The promo was subsequently extended to March 31, 2017.

The controversial offer led the tellcos to become embroiled in a


number of legal challenges with the incumbents, but also forced its rivals to lower their
own prices to keep their subscribers. As a result, industry-wide monthly ARPUs fell by
roughly a third. They dropped from around INR120 ($1.90)—a rate that was stable at
that point since mid-2014—to INR82.7 ($1.30) by March 2017.

Unsurprisingly, the sharp drop in ARPUs had a similarly negative effect on the sector’s
revenues, and in March 2017 the Telecom Regulatory Authority of India reported that
turnover from the telecom industry (including the fixed segment) had fallen by INR100
billion between June 2016 and March 2017.

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Blended Monthly Mobile ARPU

Less Impact on Subscriptions

By the end of the 2016, Jio had signed up more than 70 million subscribers,
with that figure rising to just over 108 million by March 31, 2017. Curiously, the
company’s explosive growth has had a negligible impact on the overall take-up rates of
the existing tellcos, although new subscriptions for 3G and 4G services did slow down
somewhat.

The largest operators continued to expand their user bases at roughly the same pace as
prior to JIO’s arrival, while the already-struggling smaller providers saw a slight
downturn.

The trend suggests that many of JIO’s subscribers had signed up to their services
alongside plans with other providers to capitalize on the free services while they were
available.

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As such, the long-term viability of JIO’s strategy and its capacity to continue growing
its subscriber base once it starts charging for services has been called into question.
Indeed, the TRAI’s data for April and May 2017 showed a slight slowdown in JIO’s
growth, the tellco signing up 4 million and 5 million net new users in each month
respectively, compared to 12 million and 6 million in February and March.

Telecoms Market Quarterly Revenue

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Consolidation

The Indian mobile market is also undergoing a period of consolidation, initiated when
the regulator opened the way for spectrum trading and sharing in September 2015.

The market is set to shrink from around a dozen players to as few as five,
with ongoing deals involving Telenor and Airtel, Vodafone and Idea, plus Aircel and
RCOM, while there is also potential for tie-ups between Airtel and TTSL, as well as
MTNL and BSNL. This will intensify the pressure on newcomer Jio as it seeks to
ensure that its early success was not a flash in the pan.

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3.7.1 Free Voice & 4G Data Offers Provided By Other Operators


after Immediate Launch of JIO (Late 2016- Early 2017)

VODAFONE DOUBLE 4G DATA PLANS & OFFERS

Due to Jio Effect, Vodafone doubled their 4G data for plans starting from
255 Rs. This offer was valid for both old and new Vodafone prepaid customers.
Although it was the effect of Reliance Jio 4G still Apoorva Mehrotra, Business Head of
Vodafone Delhi / NCR said that we got a good response to Vodafone SuperNet4G and
henceforth introducing double data to all 4G customers.

Vodafone Double Data Offers on 4G Recharges

4G Data Price 4G Plan Benefit Extra 4G Data Validity

255 1GB 1GB 28 days

459 3GB 3GB 28 days

559 4GB 4GB 28 days

999 10GB 10GB 28 days

1999 20GB 20GB 28 days

On comparing Rs. 999 plan, you used to get 20 GB of 4G Internet data which was same
as Rs. 50 per 1 GB data offer by Reliance Jio which was yet to become commercial
after March 2017, but until then you could enjoy free data of 1 GB per day via Jio New
Year Offer. Get 9 GB free with 1 GB Vodafone Data on New 4G Phone.

This plan was exactly similar to the Airtel Free 4G data offer where
the user needs to do 4G recharge for 1 GB plan from their new 4G enabled mobile
handset, and they will get additional 9 GB free 4G data. Same is the case with
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Vodafone where you will now get 9GB of FREE data on your new 4G Smartphone for
as many as 3 months.

Upgrade to Vodafone 4G SIM & Get Free 2 GB Data

Looked like Vodafone was stalking AirTel with its plans and offerings, and this time
was the case with free 4G SIM upgrade. Yes, you could upgrade your 3G SIM to 4G
absolutely free of cost. Just visit any Vodafone Store and ask for 4G upgrade.

Now once you upgrade from 3G to 4G SIM that too free of cost, Vodafone would greet
you with free 2 GB of 4G internet data to make you aware of internet experience with
Vodafone SuperNet4G.

This offer was applicable only for existing Vodafone customers with a 4G phone in
select locations.

Canara Bank School of Management Studies, JBC Page 42


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RELIANCE JIO EFFECT ON AIRTEL 4G PLANS & OFFERS

Due to Jio effect, Airtel had launched many offers and plans to hold their
customers. Offers included free 4G SIM upgrade, 10 GB of 4G internet data at price of
1 GB, free 1GB 4G data by giving missed call and many more offers.

Free Unlimited Airtel to Airtel Calls

Airtel had launched a plan with which you would get unlimited free voice
calling from Airtel to Airtel mobile number whether it is Local or STD. This plan costs
Rs. 145 and not only free calling but you would also get free 4G data with it.

Apart from free voice calling, Airtel prepaid user would also get 300 MB of 4G Internet
Data. Moreover if you do not have a smartphone and you are using a featured phone
then you will get extra 50MB of internet data. This plan was valid for 28 days. Free
Unlimited Voice Calling from Airtel to Any Network Another plan launched by Airtel
was Rs. 345 plan under which prepaid users would be eligible to call freely to any
network. Means you would get free calling from Airtel to any network provider in India.

Secondly, you would get 1 GB of 4G Internet data and same 50 MB of additional data if
you have featured phone. This plan was valid for 28 days.

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RELIANCE EFFECT ON IDEA 4G OFFERS & VOICE CALLS

Idea 4G SIM Upgrade & get 2 GB Free Data

Similar to Airtel & Vodafone, Idea was also giving away free 4G
SIM upgrade with free 2GB data offer for new 4G customers. Also, you could get 10GB
internet data for Rs. 255 on upgrading to a 4G smartphone.

Another great offer was that you could get 1GB 4G data for just Rs. 51 per
month till 1 year after doing a 4G recharge of Rs. 1499 in which you would get 15 GB
of 4G Internet data. This price may vary across circles, but this plan can be compared
with Reliance Jio 4G plans.

After Jio Effect, Idea is running in the track of data war, and almost every operator like
Airtel, Idea, Vodafone are running side by side with the same sets of plans.

Canara Bank School of Management Studies, JBC Page 44


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RELIANCE JIO EFFECT ON BSNL

Out of all other telecom operators, BSNL was the first and closest
competitor to Reliance Jio with its internet plans and free voice calling offers. Not only
in the mobile network but BSNL launched unlimited broadband plans to grab as many
customers as they can in this telecom industry race.

BSNL launched STV 498 plan as a promotional offer for winter holiday season, and this
plan could be activated till 7th January 2017. This was an unlimited 3G data plan which
was valid for both new & old users and valid for 14 days as usual.

An interesting fact is that there was no FUP limit on the 3G speed provided by BSNL
that is there was no speed limit, and you would get maximum 3G speed.

BSNL to Launch Unlimited Voice Calling Plan


BSNL state-run operators was about to launch an unlimited voice calling offer which
was exactly same as one of the Reliance Jio monthly plan. This plan was expected to be
priced at Rs. 149 and with that, you would not only get free unlimited voice calling but
also 300 MB of internet data. It was expected to be launched in January 2017.

BSNL Chairman, Anupam Shrivastava admitted that “Jio has come up with disruptive
strategy and we are ready to match whatever tariff is being offered by our
competitors”.

Canara Bank School of Management Studies, JBC Page 45


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RELIANCE JIO EFEECT ON AIRCEL OFFERINGS

Aircel Offering Free Voice Calling for Delhi Users


With Aircel new combo voucher of Rs. 148 you would get free voice
calling for 3 months. Free calling includes all on net calls free and all off-net Calls free
(15000 seconds capping/month) for 30 & 60 days respectively. Post expiry you would
be charged 30 paise per minute for all local and STD calls.

Moreover, you will get unlimited Data (FUP of 500 MB) for 28 days. This offer is valid
only for Delhi subscribers. Remember that you need to have at least Rs. 50 in your
account balance.

Aircel Launches Unlimited Voice Calling Packs

Aircel had launched unlimited free voice calling plans for their subscribers
across India. The plans were RC14 & RC249 applicable for both existing and new
prepaid customers. Price of the packs may vary according to different circles.

RC14 Plan worth Rs. 14 offered unlimited free Local & National calls to any
network in India for 1 day.

RC249 Plan worth Rs. 249 offered unlimited free Local & National calls to any
network in India for 28 days. Moreover, you would also get unlimited 2G internet data
valid for 28 days.

Canara Bank School of Management Studies, JBC Page 46


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

CHAPTER- 4

RESEARCH

METHODOLOGY

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4.1 MEANING OF RESEARCH METHODOLOGY


Research methodology is a method for collecting all sorts of
information & data pertaining to the subject in question. The objective is to
examine all the issues involved & conduct situational analysis. The methodology
includes the overall research design, sampling procedure & fieldwork done &
finally the analysis procedure. The methodology used in the study consistent of
sample survey using both primary & secondary data. The primary data has been
collected with the help of questionnaire as well as personal observation book.
Magazine, journals have been referred for secondary data.

4.2 METHODOLOGY USED


Random sampling research method was used to properly analyze and give a clear
picture of the study. The population for the study comprised 0.68% people of
Hunasamaranahalli (Census Town of North Bangalore) which has a population
of 13,389(as per 2011 Census). This was used as sample for the study. It was
collected by issuing out questionnaire to the respondents. Close-ended questions
were adopted which provided answers that are easy for interpretation and tabulation.

4.3 SOURCES OF DATA

4.3.1 Primary Data

The primary data used for the study are:

 Questionnaires
 Surveys

4.3.2 Secondary Data

The secondary data used for the study are:

 Internet
 Magazines
 Articles
 Blogs
Canara Bank School of Management Studies, JBC Page 48
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4.4 SAMPLING METHOD & SAMPLE SIZE SAMPLING


A sample is a smaller collection of units from a population used to
determine truths about that population.

This study is based on Convenience sampling.

Random Sampling: Random sampling is a way of selecting a sample of observations


from a population in order to make inferences about the population.

4.4.2 SAMPLING OF STUDY

For the purpose of the study, 0.68% of the population was selected. Thus for purposed
study, 91 people were taken.

4.5 OBJECTIVE OF THE STUDY


The study is carried out in order “to analyze the effect of launch of JIO on its
competitors”.

The specific objectives of the study are:


 To analyze the impact of JIO on its competitors.
 To study the competition in the telecommunication sector.
 To study the benefits and satisfaction level of customers toward JIO network.

Canara Bank School of Management Studies, JBC Page 49


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CHAPTER- 5

DATA

INTERPRETATION

Canara Bank School of Management Studies, JBC Page 50


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Question 1: What is your Gender?

Gender Number of Respondents Percentage Value


Male 58 64%
Female 33 36%
Table representing Gender classification

From the above table, we see that almost both male and female equally showed their
participation in this study.

GENDER
Male Female

36%

64%

Pie- chart representing the number of males and females

Form the above chart; we can see that 64% of males and 36% of females participated
in this study.

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Question 2: In which age group, do you belong to?

Age Group ( Years) Number of Respondents Percentage Value


Below 20 02 02.2%
21-30 73 80.2%
31-40 09 09.9%
Above 40 07 07.7%
Table representing different Age Group

From the above table, we can conclude that, every age group was covered during this
study.

80
73
70
Number of Respondents

60

50

40

30

20
9
10 7
2
0
Below 20 21-30 31-40 Above 40
Age Group

Bar- graph showing the number of respondents in each Age Group,

From the above chart, we can see that 73 respondents belongs


to age group 21-30, 9 respondents belongs to age group 31- 40, 7 respondents belongs
to age group above 40 & 2 respondents belongs to age group below 20.

Canara Bank School of Management Studies, JBC Page 52


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Question 3: What is your Education Qualification?

Education Qualification Number of Respondents Percentage value


Till 10th 01 01.1%
Till 12th 03 03.3%
Undergraduate 08 08.8%
Graduate 45 49.5%
Post- Graduate 34 37.4%
Table representing Classification of Education Qualification

From the above table, we can see that respondents belonging to different
education qualification participated in this study.

Education Qualification
Number of Respondents
Till 10th
50
40
30
20
Post Graduate Till 12th
10 1
34
0 3

Graduate 45 Undergraduate

Radar- chart showing the number of respondents belonging to different Education Background

From the above chart, we interpret that out of 91 respondents, 45 are


graduates, 34 are post- graduates, 8 are under- graduates & the remaining 4
respondents are school students, in our study.

Canara Bank School of Management Studies, JBC Page 53


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Question 4: What is your Occupation?

Occupation Number of Respondents Percentage Value


Self- employed 07 07.7%
Working 25 27.5%
Housewife 03 03.3%
Student 53 58.2%
Unemployed 03 03.3%
Table representing respondents belonging to different Profession

From the above table, we can analyze that the respondents involved in this
study, belonged to different professions.

Occupation
Number of Respondents
Self Employed
60
50
40
30
Unemployed 20 7 25 Working
10
3 0
3

Student 53 Housewife

Radar- chart representing respondents belonging to different Profession

From the above chart, we interpret that out of 91 respondents,


53 are students, 25 are working professions, 7 are self- employed, 3 are housewives &
the remaining 3 are unemployed.

Canara Bank School of Management Studies, JBC Page 54


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Question 5: What is your Monthly Income?

Monthly Income Number of Respondents Percentage Value


Below 10,000 24 26.4%
10,001- 25,000 41 45.1%
25,001- 40,000 14 15.4%
Above 40,000 12 13.1%
Table representing Classification of Monthly Income

From the above table, we see that respondents of our study have
been grouped on the basis of different monthly income.

45
41
40
Number of Respondents

35

30
24
25

20
14
15 12
10

0
Below 10,000 10,001- 25,000 25,001- 40,000 Above 40,000
Monthly Income

Bar- graph representing grouping of respondents based on their Monthly Income

From the above chart, we interpret that out of 91 respondents, 41


has a monthly income of 10,000- 25,000, 24 has a monthly income of less than
10,000, 14 has a monthly income of 25,001- 40,000 & 12 has a monthly income more
than 40,000.

Canara Bank School of Management Studies, JBC Page 55


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Question 6: Which is your Current Network Provider?

Network Provider Number of Respondents Percentage Value


Airtel 27 29.7%
Vodafone 07 07.7%
JIO 53 58.2%
Idea 01 01.1%
BSNL 02 02.2%
Others 01 01.1%
Table representing Current Network provider of Respondents

From the above table, we see that various respondents have various
network providers.

Current Network Provider


Number of respondents
Airtel
60
50
40 27
Others 30 Vodafone
20
10
1 7
0

2 1
BSNL 53 Jio

Idea

Radar- chart representing Current Network Provider of respondents

From the above chart, we can interpret that out of 91 respondents,


53 has JIO, 27 has Airtel, 7 has Vodafone, 2 has BSNL, 1 has Idea & remaining 1
has Others as their current network provider.

Canara Bank School of Management Studies, JBC Page 56


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Question 7: How much do you spend (in rupees) on your network


provider (Monthly Expenditure)?

Monthly Expenditure Number of respondents Percentage value


100- 200 36 39.5%
201- 300 24 26.4%
301- 400 18 19.8%
Above 400 13 14.3%
Table representing Monthly Expenditure on Network provider

From the above table, we see that each respondent spends different
amount of money on their network provider monthly.

40
36
35
Number of Respondents

30
24
25

20 18

15 13

10

0
100- 200 201- 300 301- 400 Above 400
Monthly Expenditure(in Rupees)

Bar- graph representing Monthly Expenses (in rupees) on network provider by each respondent

From the above chart, we conclude that out of 91 respondents, 36 of them


spends Rs. 100- 200, 24 of them spends Rs. 201- 300, 18 of them spends Rs. 301- 400
& remaining 13 spends above 400 monthly on their network provider.

Canara Bank School of Management Studies, JBC Page 57


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Question 8: How do you come to know about JIO network?

Source of Information Number of Respondents Percentage Value


Online Advertisement 26 28.6%
Newspaper 05 05.5%
Word of Mouth 46 50.5%
Hoardings & Banners 08 08.8%
Google Search 06 06.6%
Table representing Source of Information about JIO network for each respondent

From the above table, we see that each respondent came to know about
JIO network through various sources of information.

How did you come to know about JIO


Number of respondents
Online Advertisement
50
40
26
30
20
Google Search Newspaper
10
15 0 5
8

Hoardings & Banners 46 Word of Mouth

Radar- chart showing different Sources of Information for each respondent

From the above chart, we interpret that out of 91 respondents, 46 through word
of mouth, 26 through online advertisement, 15 through Google search, 8 through
hoardings & banners and remaining 5 through newspaper came to know about JIO
network.

Canara Bank School of Management Studies, JBC Page 58


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Question 9: Since how long, have you been using your previous
network?

Duration Number of Respondents Percentage Value


Less than 1 year 18 19.8%
Less than 2 years 27 29.7%
Less than 3 years 22 24.2%
More than 4 years 24 26.3%
Table representing the duration for which the respondents used their previous network

The above table shows the time period in which the respondents used their
previous network.

30
27

25 24
Number of Respondents

22

20 18

15

10

0
Less than 1 year Less than 2 years Less than 3 years More than 4 years
Duration of usage of previous network

Bar- graph displaying the usage duration of previous network provider

From the above chart, we interpret that out of 91 respondents, 27 have


been using their previous network for less than 2 years, 24 have been using their
previous network for more than 4 years, 22 have been using their previous network
for less than 3 years & 18 have been using their previous network for less than 1 year.

Canara Bank School of Management Studies, JBC Page 59


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Question 10: Since when, have you been using JIO network?

Duration Number of Respondents Percentage Value


Less than 1 month 23 25.3%
6- 12 months 29 31.9%
13- 24 months 17 18.6%
More than 24 months 22 24.2%
Table showing duration of JIO usage

From the above table, we see that since how long, each respondent have
been using JIO as their network connection.

35
29
30
Number of Respondents

25 23
22

20 17

15

10

0
Less than 1 month 6- 12 months 13- 24 months More than 24
months
Usage Duration of JIo

Bar- graph representing relationship between respondents and their Duration of Usage of JIO

From the above chart, we see that out of 91 respondents, 29 have been
using JIO for the past 6- 12 months, 23 have been using JIO for the past 1 month, 22
have been using JIO for more than 24 months & 17 have been using JIO for the past
13- 24 months.

Canara Bank School of Management Studies, JBC Page 60


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Question 11: Which factor do you consider while selecting your new
network service provider?

Factors Number of Respondents Percentage Value


Call Rates 08 08.8%
Amount of Internet Data 22 24.4%
Network Availability &
48 52.7%
Coverage Area
Offers Provided 12 13.2%
Customer Care Service 01 01.1%
Table representing various factors which respondents consider

From the above table, we see that each respondent has different factors
which he/ she consider while selecting a new network provider.

Which factors, you consider while selecting new


service provider
Number of Respondents

Call Rates
50
40
30
20 8 Amount of Internet
Customer Care Service 22
10 Data provided
1 0

12
48
Network Availability
Offers Provided
& Coverage Area

Radar- chart showing different factors considered by respondents while selecting new network provider

From the above chart, we interpret that out of 91 respondents, a


maximum of 48 respondents consider network availability & coverage area as the
main factor while selecting a new network provider and least preference is given to
customer care service as a factor.

Canara Bank School of Management Studies, JBC Page 61


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Question 12: Which was your previous network service provider?

Network Provider Number of Respondents Percentage Value


Airtel 40 44.0%
Vodafone 22 24.2%
JIO 06 06.5%
Idea 07 07.7%
BSNL 04 04.4%
Others 12 13.2%
Table showing various network provider previously used by each respondents

From the above table, we see a relationship between each respondent and
their previously used network provider.

Your Previous Network provider


Number of Responses
Airtel
40 40
30
Others 20 Vodafone

12 10 22
0
6
4
7
BSNL JIO

Idea

Radar- chart representing previous network providers used by respondents

From the above chart, we see that out of 91 respondents, 40 of them had
Airtel as their previous network, 22 of them had Vodafone as their previous network,
6 of them had JIO as their previous network, 7 of them had Idea as their previous
network, 4 of them had BSNL as their previous network & remaining 12 were on
some different network provider.
Canara Bank School of Management Studies, JBC Page 62
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Question 13: What was your previous network provider mainly used
for?

Service Used Number of Respondents Percentage value


Local Calls 09 09.9%
National Calls 10 11.0%
International Calls 04 04.4%
Internet Usage 07 07.6%
Local Calls + National
36 39.6%
Calls + Internet Usage
All of the above 25 27.5%
Table showing different service usage of previous network provider by respondents

From the above table, we see that how each respondent used their previous
network provider for different purpose.

Previous Network Provider mainly used for


Number of Respondents

Local Calls
40
30
All the above 20 9 National calls
25 10
10
0
36 4
Local+ National+ 7 International Calls
Internet Usage

Internet Usage

Radar- chart showing different usage of previous network provider

From the above chart, we see that out of 91 respondents, a maximum of 36 used
their previous network for Local+ National+ Internet, 10 used for National calls only,
9 used for Local calls only, 7 used for internet only, 4 used for International calls
only & 25 were those who used their previous network for all of the mentioned usage.

Canara Bank School of Management Studies, JBC Page 63


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Question 14: Which factor(s) attract you toward JIO network?


Factors Number of respondents Percentage Value
Lower Call Rates 13 14.3%
Lower Data Charges 13 14.3%
Network Availability &
8 08.8%
Coverage Area
Faster Internet Speed 18 19.8%
Additional Internet Services 03 03.3%
Best offers compared to
05 05.5%
others
Good Customer Care 03 03.3%
All of the above 28 30.7%
Table showing the factors which attracts respondents toward JIO network

From the above table, we see that there are various factors by which each
respondent is attracted toward JIO network.

Which factor(s) attracts toward JIO network


Number of Respondents
Lower Call Rates
30
28 25
All of the above 20
Lower Data Charges
15 13
10 13
5
3 Network Availability &
Good Customer Service 0
8 Coverage Area
5 3
18
Best offers Faster Internet Speed

Additional Internet Service

Radar- chart showing the various factors which attracts respondents toward JIO

From the above chart, we see that out of 91 respondents, a maximum of


28 respondents consider all the factors mentioned above attractive, 18 people prefer
faster internet speed as attractive, 13 people each consider lower data charges &
lower call rates attractive, 8 of them consider network availability attractive &
remaining others prefer some other factors attractive.
Canara Bank School of Management Studies, JBC Page 64
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Question 15: How much Data (GB/day) do you use?

Data Usage Number of Respondent Percentage value


1 GB/ day 12 13.2%
1.5 GB/ day 39 42.9%
2 GB/ day 31 34.1%
3 GB/ day 09 09.8%
Table showing data usage on daily basis by respondents

From the above table, we see that each respondent consume different
amount of data daily.

45
39
40
Number of Respondents

35
31
30

25

20

15 12
9
10

0
1 GB/day 1.5 GB/day 2 GB/day 3 GB/day
Data Usage on daily basis

Bar- graph representing relationship between respondents and their daily Data Usage

From the above chart, we interpret that out of 91 respondent, a maximum


39 of them consume 1.5 GB daily, 31 of them consume 2 GB daily, 12 of them
consume 1 GB daily and remaining 9 of them consume 3 GB daily.

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Question 16: How often do you recharge your network provider?

Recharge Cycle Number of respondents Percentage Value


Monthly Recharge 21 23.1%
Once in 2 months 02 02.2%
Once in 3 months 65 71.4%
Once in 12 months 03 03.3%
Table showing preferred Recharge Cycle by respondents

From the above table, we see that each respondent has their own recharge
duration, in which they recharge their network provider.

70 65

60
Number of Respondents

50

40

30
21
20

10
2 3
0
Monthly Recharge Once in 2 months Once in 3 months Once in 12 months
Recharge cycle

Bar- graph representing various recharge cycle of respondents

From the above chart, we conclude that out of 91 respondents, a maximum 65 of


them recharge their network once every 3 months, 21 of them recharge their network
every month, 3 of them recharge their network once every 12 months & a minimum 2
of them recharge their network once every 2 months.

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Question 17: Which plan do you prefer recharging?


Recharge Plans Number of Respondents Percentage value
Plan 149, 1GB/day, 24 days 09 09.9%
Plan 199, 1.5GB/day, 28 days 10 11.0%
Plan 399, 1.5GB/day, 56 days 23 25.3%
Plan 555, 1.5GB/day, 84 days 22 24.2%
Plan 2020, 1.5GB/day, 365 days 01 01.1%
Plan 249, 2GB/day, 28 days 02 02.2%
Plan 444, 2GB/day, 56 days 05 05.5%
Plan 599, 2GB/day, 84 days 16 17.5%
Plan 349, 3GB/day, 28 days 03 03.3%
Table showing various Recharge Plans preferred by various respondents

From the above table we see that, various plans are offered by JIO and
respondents prefer plans based on their budget.

Which plan do you prefer


Number of Respondents

Plan 149( 1 GB/day, 24


GB, 24 days)
25
Plan 349( 3 GB/ day, 84 Plan 199( 1.5 GB/ day, 42
20
GB, 28 days) GB, 28 days)
15 9
10 10 23
Plan 599( 2 GB/ day, 168 35 Plan 399( 1.5 GB/ day, 84
GB, 84 days) GB, 56 days)
16 0
5 21
Plan 444( 2 GB/ day, 112 Plan 555( 1.5 GB/ day, 126
GB, 56 days) 22 GB, 84 days)
Plan 249( 2 GB/ day, 56 Plan 2020( 1.5 GB/ day,
GB, 28 days) 547 GB, 365 days)

Radar- chart representing relationship between respondents and their preferred recharge plans

From the above chart, we interpret that out of various recharge plans offered,
Plan 399 is the most preferred one and out of 91 respondents, 23 of them prefer it,
then comes Plan 555 with 22 respondents preferring, then Plan 599 with 16
respondents preferring & a minimum of 01 respondent going with Plan 2020.

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Question 18: What preference do you give to JIO SIM among your
network provider?

Preference to JIO Number of Respondents Percentage Value


Primary Network
59 64.8%
Connection
Secondary network
32 35.2%
Connection
Table showing preference to JIO SIM among network providers

From the above table, we see that how respondents give preference to JIO
among their network providers.

How do you give preference to JIO among


network provider
Primary Network Connection Secondary Network Connection

35%

65%

Pie- chart representing respondents preference to Jio among their network provider

From the above chart, we interpret that out of 91 respondents, 65% gives
preference to JIO as their primary network connection & remaining 35% as
secondary network connection.

Canara Bank School of Management Studies, JBC Page 68


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Question 19: Have you stopped recharging your previous network


after using JIO network?

Action Number of Respondents Percentage Value


Yes 42 46%
No 49 54%
Table showing action taken by respondents after using JIO network

From the above table, we conclude the actions taken by respondents after
switching on to JIO network.

Have you stopped recharging your previous


network after using JIO
Yes No

46%

54%

Pie- chart representing the action taken by respondent

From the above chart, we can clearly see that out of 91 respondents, 54% of
them still recharge their previous network even after switching to JIO & 46% of them
stopped recharging their previous network after switching to JIIO.

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Question 20: Do you wish to return back to your previous network


provider?

Action Number of Respondents Percentage Value


Yes 40 44%
No 51 56%
Table showing action taken by respondents after using JIO network

From the above table, we analyze the action taken by JIO users.

Do you wish to return back to your previous


network provider

Yes No

44%

56%

Pie- chart representing the actions taken by respondents

From the above chart, we conclude that out of 91 respondents, 56% of


them don’t want to go back to their previous network provider, whereas 44% want to
switch back to their previous network provider after using JIO network.

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Question 21: Are you satisfied with JIO network?

Satisfying Level Number of Respondents Percentage Value


Yes 59 65%
No 32 35%
Table showing the satisfaction level of respondents

From the above table, we can analyze the satisfaction level of respondent
toward JIO network.

Are you satisfied with JIO network

Yes No

35%

65%

Pie- chart representing the respondent satisfaction toward JIO network

From the above chart, we conclude that out of 91 respondent, a maximum


of 65% of customers are satisfied with the overall usage of JIO, whereas still 35% of
the respondents are not fully satisfied with the JIO network.

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Question 22: Would you like recommending JIO to others?

Recommendation Number of Respondents Percentage Value


Yes 63 66%
No 28 31%
Table showing recommendation level of respondents

From the table, we come to analyze the recommendation level of


respondents.

Would you like recommending JIO to


others
Yes No

31%

69%

Radar- chart displaying the recommendation level for JIO network

From the above chart, we can conclude that out of 91 respondents, 69% of
them are most likely to recommend JIO to others, while 31% wouldn’t recommend
JIO to someone else.

Canara Bank School of Management Studies, JBC Page 72


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

CHAPTER- 6

FINDINGS,
CONCLUSIONS
&
SUGGESTIONS

Canara Bank School of Management Studies, JBC Page 73


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

6.1 FINDINGS

From the above study conducted, we found that:

 Maximum numbers of respondents (58.2%) are currently on JIO network.


 Maximum numbers of respondents (39.5%) easily spend Rs. 100- 200 monthly on
their network.
 Maximum number of respondents (50.5%) came to know about JIO through word
of mouth.
 Many respondents (31.9%) were new to JIO network almost 6- 12 months old
subscribers.
 The most important factor (52.7%) that people prefer while selecting a new
network is the ‘network availability & the coverage area’.
 Airtel was the most widely used network (44%) among the respondents before
the launch of JIO.
 Most of the respondents used their previous network service provider for a combo
of Local calls+ National calls+ Internet usage (39.6%).
 Factors such as lower call rates, lower data charges, network availability &
coverage area, faster internet speed, additional internet services, best offers &
good customer services helped JIO a lot in attracting the customers (30.7%).
 Most of the people (42.9%) consume 1.5 GB of data daily.
 Most of the respondents (71.4%) recharge their network ‘once in 3 months’.
 Plan 399 (1.5 GB/day, 56 days validity) is the most preferred plan (25.3%)
among the respondents followed by (24.2%) Plan 555 (2 GB/day, 84 days
validity).
 Among their network providers, most of the respondents (64.8%) give first
priority to JIO network.
 Even after switching to JIO, most of the respondents (54%) still recharge their
previous network provider.
 Maximum numbers of respondents (56%) don’t want to switch back to their
previous network after using JIO as their main network.
 Maximum numbers of respondents (65%) are satisfied with the JIO network.
 Most of the respondents (66%) are likely to recommend Jio to others.

Canara Bank School of Management Studies, JBC Page 74


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

6.2 CONCLUSIONS
The Indian mobile telecom market has grown at a rapid speed in the last decade.
Declining the call tariffs and favorable regulatory policies has led to a tremendous
increase in the subscribers’ base. Proper identification of the Customer preferences will
facilitate the favorableness towards the various mobile service providers. Continuous
research on consumers will enhance the customer satisfaction. The present research
focuses on the analytical study of launch of JIO SIM on other competitor in
Hunasamaranahalli, a Census town of North Bengaluru.

Reliance Jio has shown its impact from very first day of its
incorporation as Bharti Airtel which dominated telecom sector in India lost its share
price by 6.4% on Bombay stock exchange, not only Bharti Airtel, other telecom
operators like third ranked Idea cellular and Reliance communications also saw
share prices falling on Bombay stock exchange by 10.5% and 8.8% respectively. The
impact of Reliance Jio on telecom industry is so severe that it may be termed as a
revolution in Telecom Industry in India.

The factors were analyzed which are leading the customers to shift from other telecom
operators towards Reliance Jio. Through study, it was analyzed that there are
various major factors influencing the customers. The first and major factor which
was influencing the customer was the tariff.

Reliance Jio is providing the customers with the cheapest ever services or even free
of cost services which has influenced the customers to a greater extent. The other
factors to be analyzed were speed of Internet data, brand endorsement, value-added
services, image of service provider, image of brand and innovative company.

Reliance Jio brought a change by providing high speed internet data at


cheaper and affordable rates which was not a trend. Earlier telecom operators use to
charge more prices in order to have access to high speed data. Earlier telecom
operator use to charge extra money on use of any extra service and even use to
deduct money if any service is selected by them mistakenly which is not there in the
case of Reliance Jio as they are offering these services free of cost which has also
influenced the customer to move towards the services of Reliance Jio.

Canara Bank School of Management Studies, JBC Page 75


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

6.3 SUGGESTIONS

Since the study shows that the main factor what customer looks for while
choosing their new network is ‘network availability & coverage area’, so Reliance JIO
should consider this as a key element to expand their customer base and should work to
strengthen their network expansion.

Since, from the study it is seen that most of the customer prefer recharging
their network once in three months, so more focus should be given on this to make the
plans lucrative and attractive.

Through the word of mouth, the customers are aware of Jio and strive for accessing its
services. That is why, it is recommended to increase the quality of their services. To
remove the network problem and calling congestion, the present study suggests
installing the towers in the place of unavailability of network and the remote areas.

From the study, we see that even after being satisfied with JIO network,
customers still recharge their previous owned network, which suggests that the
satisfaction level is not that high & there is scope for improvement in the service and
JIO should think of different ways to improve the satisfaction level of customers toward
JIO.

From the study, we clearly see that only a few customers find customer care service as
an attracting factor, so JIO must ensure that they provide the best customer support to
its customers & a hassle- free process.

Canara Bank School of Management Studies, JBC Page 76


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

CHAPTER- 7

REFERENCES & BIBLIOGRAPHY

https://www.census2011.co.in/data/town/612949-hunasamaranahalli-karnataka.html

https://blog.telegeography.com/the-jio-effect-how-the-newcomer-made-an-impact-in-
india

https://www.ibef.org/industry/telecommunications.aspx

https://www.investindia.gov.in/sector/telecom

https://www.gadgetsnow.com/slideshows/7-companies-acquired-by-mukesh-
ambani/Reliance-Jio-customers-7-acquisitions-made-by-Mukesh-Ambani-you-should-
know-about/photolist/66310246.cms

https://timesofindia.indiatimes.com/business/india-business/Mukeshs-Ambanis-
Reliance-Jio-signs-3rd-telecom-agreement-with-Anils-Reliance-
Communications/articleshow/33396647.cms

https://www.communicationstoday.co.in/reliance-jio-infocomm-limited/

https://www.telecomclue.com/new-products-services-jio-jio-dth-broadband-and-lot-
more/

https://m.dailyhunt.in/news/india/english/trak+in-epaper-
trakin/future+of+reliance+jio+10+things+we+expect+from+jio+in+2019-newsid-
104977120

Canara Bank School of Management Studies, JBC Page 77


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

ANNEXURE
QUESTIONNAIRES:
1. What is your Gender? *
o Female
o Male

2. In which age group (in years) do you fall? *


o Below 20
o 21-30
o 31-40
o Above 40

3. What's your Education Qualification? *


o Till 10th
o Till 12th
o Undergraduate
o Graduate
o Post Graduate

4. What's your Occupation? *


o Self- employed
o Working
o Housewife
o Student
o Unemployed

5. What is your Monthly Income? *


o Below 10,000
o 10,001- 25,000
o 25,001- 40,000
o Above 40,000

6. What is your current network provider? *


o Airtel
o Vodafone
o JIO
o Idea
o BSNL
o Others

Canara Bank School of Management Studies, JBC Page 78


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

7. How much do you spend (in rupees) on your network provider (monthly expenditure)? *
o 100- 200
o 201- 300
o 301- 400
o Above 400

8. How did you come to know about JIO network? *


o Online advertisement
o Newspaper
o Word of Mouth
o Hoardings & Banners
o Google Search

9. Since how long, have you been using your previous network? *
o Less than 1 year
o Less than 2years
o Less than 3 years
o More than 4 years

10. Since when, you started using JIO network? *


o Less than 1 month
o 6-12 months
o 13- 24 months
o More than 24 months

11. Which factor do you consider while selecting your new network service provider?
o Call Rates
o Amount of Internet Data provided
o Network Availability & Coverage Area
o Offers provided
o Customer Care Service

12. Which was your previous service provider? *


o Airtel
o Vodafone
o JIO
o Idea
o BSNL
o Others

Canara Bank School of Management Studies, JBC Page 79


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

13. What was your previous service provider mainly used for? *
o Local Calls
o National Calls
o International Calls
o Internet Usage
o Local Calls + National Calls + Internet Usage
o All of the above

14. Which factor(s) attract you toward JIO network? *


o Lower Call Rates
o Lower Data charges compared to others
o Network Availability & Coverage Area
o Faster Internet Speed
o Additional Internet Services provided
o Best offers compared to competitors
o Good Customer Service
o All of the above

15. How much Data (GB/Day) do you prefer using? *


o 1 GB/ day
o 1.5 GB/day
o 2 GB/ day
o 3 GB/ day

16. How often do you recharge your network? *


o Monthly Recharge
o Single Recharge for 2 months
o Single Recharge for 3 months
o Single Recharge for 12 months

17. Which plan do you prefer recharging? *


o Plan 149( 1 GB/day, 24 GB, 24 days)
o Plan 199( 1.5 GB/ day, 42 GB, 28 days)
o Plan 399( 1.5 GB/ day, 84 GB, 56 days)
o Plan 555( 1.5 GB/ day, 126 GB, 84 days)
o Plan 2020( 1.5 GB/ day, 547 GB, 365 days)
o Plan 249( 2 GB/ day, 56 GB, 28 days)
o Plan 444( 2 GB/ day, 112 GB, 56 days)
o Plan 599( 2 GB/ day, 168 GB, 84 days)
o Plan 349( 3 GB/ day, 84 GB, 28 days)

Canara Bank School of Management Studies, JBC Page 80


To Study the effect of launch of JIO SIM on its Competitors 2019- 2020

18. How do you give preference to JIO among your network provider? *
o Primary Network Connection
o Secondary network Connection

19. Have you stopped recharging your previous network after using JIO network? *
o Yes
o No

20. Do you wish to return back to your previous service provider? *


o Yes
o No

21. Are you satisfied with Reliance JIO network? *


o Yes
o No

22. Would you like recommending JIO to others? *


o Yes
o No

Canara Bank School of Management Studies, JBC Page 81

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