G.L.

Bajaj Institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
PGDM BATCH-2020-22

MINOR PROJECT REPORT

ON “AN ANALYTICAL STUDY OF LAUNCH OF JIO SIM ON AIRTEL vis

a vis OTHER COMPETITORS “.WITH FOCUS ON

Submitted in Partial Fulfillment for the Award of the

POST GRADUATE DIPLOMA IN MANAGEMENT
2020-22

GUIDE BY:
SUBMITTED BY:

(DR. ANAND RAI) DIVESH CHAUHAN

ADM.NO : PGDM 20039

ROLL NO : GM20052

1
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2020-22

(I) FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Minor Project Report on”
AN ANALYTICAL STUDY OF LAUNCH OF JIO SIM ON AIRTEL vis a vis
OTHER COMPETITORS” submitted by DIVESH CHAUHAN at G L Bajaj
Institute of Management & Research, Greater Noida, India, is a
bonafide record of her/ his work carried out under my supervision. This
work has not been submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide)

Name: DR. ANAND RAI

Date:

2
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2020-22

(II)ACKNOWLEDGEMENT

I would like to thank the following people, without whom I would not have been
able to complete this Minor Project Report on the topic “AN ANALYTICAL
STUDY OF LAUNCH OF JIO SIM ON AIRTEL vis a vis OTHER
COMPETITORS.
My heartfelt thanks goes to our Director Dr AJAY KUMAR for providing an
opportunity work on the Minor project right from the first trimester of the
program.
I convey my sincere thanks to my Faculty Guide Dr. ANAND RAI for
providing me the constant support and guidance to carry out my project
effectively and efficiently.
I would also like to convey my gratitude to all faculty members and staff for
their support and guidance.
Name of the student : DIVESH CHAUHAN
Roll Number: PGDM20039
TRIMESTER 3
PGDM Batch 2020-22
GL Bajaj Institute of Management & Research

3
 CHAPTER 1

COMPANY PROFILE AND EXECUTIVE

SUMMARY

Bharti Airtel Limited is an Indian global telecommunications services company

based in New Delhi, India.
• It operates in 18 countries across South Asia, Africa, and the Channel
Islands.
• Airtel provides GSM, 3G and 4G LTE mobile services, fixed line broadband
and voice services depending upon the country of operation.
•It is the largest mobile network operator in India and the third largest in the
world with 325 million subscribers.
• Airtel was named India's second most valuable brand in the first ever Brands
ranking by Millward Brown and WPP plc.

Name: Bharti Airtel Limited is a leading global telecommunications company

with operations in 19 countries across Asia and Africa. Headquartered in New
Delhi, India, the company ranks amongst the top 3 mobile service providers
globally in terms 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
& international long distance services to carriers. In the rest of the geographies,

4
it offers 2G, 3G, 4G wireless services and mobile commerce. Bharti Airtel had
nearly 358 million customers across its operations at the end of June 2016

Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a
manufacturer of bicycle parts to one of the largest and most respected
business groups in India. With its entrepreneurial spirit and passion to
undertake business projects that are transformational in nature, Bharti has
created world-class businesses in telecom, insurance, retail, and foods
Bharti started i t s telecom services business by launching mobile services in
Delhi (India) in 1995. Since then there has been no looking back and
Bharti Airtel, the group’s flagship company, has emerged as one of the top
telecom companies in the world and is amongst the top four wireless
operators in the world.

Bharti Airtel Limited is a leading global telecommunications company with

operations in 20 countries across Asia and Africa. Headquartered in New
Delhi, India, the company ranks amongst the top 4 mobile service providers
globally in terms 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 & international long distance services to carriers. In the
rest of the geographies, it offers 2G, 3G wireless services and mobile
commerce. Bharti Airtel had nearly 287 million customers across its
operations at the end of Dec 2013. 18 Airtel is the largest provider of mobile
telephony and second largest provider of fixed telephony in India, and is also
a provider of broadband and subscription television services. It offers its
telecom services under the "Airtel" brand, and is headed by Sunil Bharti

5
 Mittal. Bharti Airtel is the first Indian telecom service provider to achieve
Cisco Gold Certification. It also acts as a carrier for national and
international long distance communication services. The company has a
submarine cable landing station at Chennai, which connects the submarine
cable connecting Chennai and Singapore. Airtel is credited with pioneering
the business strategy of outsourcing all of its business operations except
marketing, sales and finance and building the 'minutes factory' model of low
cost and high volumes. The strategy has since been copied by several
operators. Its network— base stations, microwave links, etc.

EXECUTIVE SUMMARY
India is currently the world’s second-largest telecommunications
market and has registered strong growth in the past decade and
half. The Indian mobile economy is growing rapidly and will
contribute substantially to India’s Gross Domestic Product (GDP),
according to report prepared by GSM Association (GSMA) in
collaboration with the Boston Consulting Group (BCG). The
liberal and reformist policies of the Government of India have
been instrumental along with strong consumer demand in the
rapid growth in the Indian telecom sector. The government has
enabled easy market access to telecom equipment and a fair and
proactive regulatory framework that has ensured availability of
telecom services to consumer at affordable prices. The
deregulation of Foreign Direct Investment (FDI) norms has made
the sector one of the fastest growing and a top five employment
opportunity generator in the country.

The Indian telecom sector is expected to generate four million

direct and indirect jobs over the next five years according to

6
estimates by Randstad India. The employment opportunities are
expected to be created due to combination of government’s efforts
to increase penetration in rural areas and the rapid increase in
smartphone sales and rising internet usage.

International Data Corporation (IDC) predicts India to overtake

US as the second-largest smartphone market globally by 2017 and
to maintain high growth rate over the next few years as people
switch to smartphones and gradually upgrade to 4G.

PRODUCTS OFFERED

Mobile services: Bharti Airtel offers GSM mobile services in all

the 22- telecom circles of India and is the largest mobile service
provider in the country, based on the numbetr of customers.

Tele-media services: The group offers high-speed broadband with

the best in class network. With fixed line services in 87 cities, we
help you stay in touch with your friends & family and keep you
updated round the clock

Airtel Business: Airtel business provides a broad portfolio of

services to large Enterprise, Government, Small & Medium
businesses and carrier customers. It is India's leading and most
trusted provider of communication and ICT services, offering
services that include voice, data, network integration, data centre &
managed services, enterprise mobile applications and digital media

Digital TV services: Discover the magical experience of digital

entertainment with Airtel. From DVD quality picture and sound,
the best and widest variety of channels and programmes to the
best on-demand content on Airtel Live, your TV viewing

7
experience change forever with digital TV from Airtel!

Mobile Services: Airtel Prepaid, the Ready Cellular Card from

Airtel comes to you from Bharti Enterprises, India's leading
integrated telecom service provider. Going mobile with Airtel
Prepaid is a new way of life. With a host of great features, also
simple to use, Airtel Prepaid makes everything that you dreamt
and believed, possible.

arrangements with other operators. Airtel had about 5.4 million

3G customers of which 4 million are 3G data customers as of
September 2012.

4G: Airtel launched 4G services using TD-LTE technology in

Kolkata, becoming the first company in India to offer 4G services.
Airtel had 20,000 4G subscribers as of March 2013. Airtel launched
4G services on mobile from February 2014. The first city to get the
service was Bangalore.[24][25] Airtel has started their 4G services
in Karnal and Yamunanagar in Haryana on 16 June 2015.[26] Airtel
4G trials has been started in Delhi from 18 June 2015.[27] Airtel
had 95,173,000 4G subscribers as of June 2019.[28] As of June
2019, Airtel provides 4G coverage in all India in 22 circles.[29]
Airtel extended its 4G network to 15 km off India's coastline,
following a request by the Indian Navy.[30] Airtel started its 4G in
Andaman and Nicobar on 15 January 2019.[29] Airtel covered 96%
population in Rajasthan till March 2019.[29] Airtel's network now
covers approximately 98% of the population in these geographies.[2

Wi-Fi: Telecom major Bharti Airtel on Friday said its mobile

customers across the country can now use its Wi-Fi calling
service using any Wi-Fi network. Airtel, which had introduced
voice-over Wi-Fi last month, said the service has crossed one

8
million users.The service enables customers to switch seamlessly
from LTE to Wi-Fi-based calling when they are inside their
homes or offices, thereby enhancing indoor voice calling
experience for smartphone customers. There are no extra charges
for making calls via Airtel Wi-Fi calling

9
 MARKET COMPETITORS

Reliance Jio Infocomm Limited, d/b/a Jio, is an Indian telecommunications

company and a subsidiary of Jio Platforms, headquartered in Mumbai,
Maharashtra, India. It operates a national LTE network with coverage across
all 22 telecom circles. It does not offer 2G or 3G service, and instead uses
only voice over LTE to provide voice service on its 4G network. Jio soft
launched on 27 December 2015 with a beta for partners and employees,[8][9]
and became publicly available on 5 September 2016. As of 31 December
2019, it is the largest mobile network operator in India and the third largest
mobile network operator in the world with over 40.56 crore (405.6 million)
subscribers.[1] In September 2019, Jio launched a fiber to the home service,
offering home broadband, television, and telephone services. Since April
2020, Reliance Industries has raised ₹152,056 crore (US$21 billion) by
selling 32.97% equity stake in Jio Platforms. Within the first month, Jio
announced that it had acquired 1.6 crore (16 million) subscribers Jio crossed
5 crore (50 million) subscriber mark in 83 days.

10
BSNL is the one of the only two telecom service providers running as public
sector
undertaking. It is a technology-oriented company and provides all types of
telecom
services namely telephone services on wireline, wireless local loop (WLL) and
mobile, broadband, internet, leased circuits and long distance telecom service.
The company has been in the forefront of technology with 100 per cent digital
technology switching network. BSNL’s nation-wide telecommunications
network covers all district headquarters, sub-divisional headquarters, Tehsil
headquarters and almost all the block headquarters.

Idea Cellular was established by Aditya Birla Group Company which is India's
first truly MNC. It is a pan-India integrated wireless broadband operator offering
, 4Gservices. Idea claims to be one of the top three mobile operators in India,
with market share of nearly 19%. With nearly 200 million subscribers in single
country, Idea scores sixth rank in the global rankings of operators in terms of
number of subscribers.
The company has been continuously expanding network infrastructure to
provide high speed mobile broadband services to a large number of people in the

11
country. Idea has been rapidly rolling out 4G network across the country, adding
over 1 lakh broadband sites in the last 2 years, taking its broadband coverage to
over 1.2 lakh towns and villages across the country.

Vodafone India Ltd, is a part of the Vodafone Group and started operations in
1994 when its predecessor Hutchison Telecom acquired the cellular license for
Mumbai. It is headquartered in Mumbai and holds the second largest position in
mobile network operators in India. It has a presence in all telecom circles and
recognized as a strong player within the Vodafone. To complement the
government’s objective to improve rural penetration of telecom services, the
company has been continuously working to ascertain a strong rural presence.
Vodafone has marked a significant growth in its rural subscriber base in last few
years to become the second largest rural wireless operator in the count.

12
The Indian Telecom market is dominated by 3 Operators – Reliance JIO, Airtel,
and Vodafone Idea. These three Telecom operators own 89.6% of the total
subscriber market share as of Sept 2020.

The Government-owned BSNL is the only other player present in the market
with a significant 10.1% share. Notably, the TRAI data is available till Sept
2020, according to which Vodafone- Idea is now the 3rd largest player
behind Airtel and JIO respectively.

However, based on the reported numbers by the companies Reliance JIO is

number 1, followed by Airtel and then Vodafone-Idea..
Reliance JIO (owned by Mr. Mukesh Ambani) is the largest telecom company
with a 35.3% subscriber market share and 404.12 million subscribers.
Bharti Airtel, owned by Mr. Sunil Bharti Mittal is the second largest telecom
company in India with a 30% market share and 326.6 Million subscribers.
Vodafone-idea is the third biggest Telecom company in India with 295.4million
subscribers and has a 25.8% Telecom subscriber market share. Vodafone idea is
doing badly and is struggling to fight the rivals.

13
 CHAPTER 2

PROBLEM STATEMENT AND LITERATURE

REVIEW

After the globalization of India economy in 1991 the telecommunication sector

remained one of the most happening sectors in India. The recent years witnesses
rapid and dramatic changes in the field of telecommunications. In the last few
years more and more companies both foreign, domestic, come into cellular
service, service market and offers large number of services to the people.

A consumer may be referred to anyone engaged in evaluating, acquiring, using

or disposing of services which he expects will satisfy his wants. If any producer
makes out the marketing programmer ignoring the consumer preferences, he
cannot possibly achieve his ultimate objectives.

The current problem under analysis “ is the analysis of the launch of jio sim on
the it’s major competitor AIRTEL vis a vis other competitor. This study focus
on
Strategical changes that is forced by the entry of reliance jio in the indian
Telecommunication market. AIRTEL and other competitors have faced this
challenging conditions in order to mainatain their markets share and prices of
recharges and services the offered. THE cheap data rates and tariffs offered by
jio

14
With 4g speed data and network has dirupted the indian market since the entry
of jio. This study focus in what changes has been made by other companies to
match with the competition of reliance jio . The structural changes to prices and

plans now on offered with the competiton of plans offered by jio has changes the
whole dynamic of industry. Unlimited data packs and internet speed are new
factors which come into play before the consumers chooses between AIRTEL
and JIO.
Entry of reliance jio changes the operational structure and operati0nal strategy
which becomes now, more than dynamic ever in the cut throat competition
Exists between JIO and AIRTEL.

Strategic changes at all operational level is been made by airtel where they
focuss on digital services to meet the competition of reliance jio. Consumers
preferences toward convenience is now more and the distribution system and
excellent operational efficiency of reliance jio in distributing connections have
led many companies to exit from market. The only company which matches the
standard of operational efficiency of JIO is AIRTEL.

So the problem statement is to analyse how the consumer have vhanged their
perception toward these companies and to analyse what effect all reliance jio has
created on the operations, price plans , services offered by airtel and other
companies.

15
The references for the literature review used for the problem in hand are as
follows:

Myilswamy, Ratheesh Kumar (2013) find that the postpaid and prepaid
customer prefer to use Airtel mobile service because of the features, Rent,
Tower coverage, Talk time, Advertisement and Corporate schemes. Finally
the study suggests that by paying special attention on these factors develop
the business by satisfying the consumers.

Zafar (2013) examines the impact of the mobile service attributes like call
rates, service quality, service availability; promotion and brand image of both
the gender’s purchasing decision. The result reveals that the male and female
consumers have different preference in making the purchase decision to the
avail mobile service. The study also discovers that the female consumers are
tough to satisfy than the male consumers.

Chintan Shah (2012) in his study entitled “Consumer Preferences for Mobile
Service Provider” investigates the factor considered by the customers to
shape their preference for the mobile service provider. For the study 150
mobile users of Bardoli city are surveyed. The researcher find that the service
quality and brand image, service charges and plan, and network quality plays
a very important role in preferring mobile service provider.

Jegan and Sudalaiyandi (2012) in their study on the consumer preference and
their satisfaction towards the mobile phone service providers find that the

16
 call tariffs, network coverage and brand image encourage the consumer’s
preference and satisfaction.

Raj Kumar Paulrajan and Harish Rajkumar (2011) in their study examine
the perception choice in selecting the cellular mobile telecommunication
service providers. The result of the study indicates that in selecting the
telecommunication service provider, communication and price has a
significant impact in choice of the consumer preference nevertheless the
product quality and availability has a significant impact in selecting the
mobile telecommunication service provider. Kim et.al (2004) states that call
quality, value- added services and customer support are the important factor
to be considered by the customers while choosing a service operator.

Seth et al (2008) analyzed that there is relative importance of service quality

attributes and showed that responsiveness is the most importance dimension
followed by reliability, customer perceived network quality, assurance,
convenience, empathy and tangibles.

Shanthi (2005)104 throws light on the telecommunications market of India –

post privatization. In the scenario of falling prices, hyper-competition and
increasing attrition rates and the author says that the study aims to bridge the
research gaps identified as above.

A study by Jeanette Carless on and Salvador Arias (2004)10 wireless

substitution is producing significant traffic migration from wire line to
wireless and helping to fuel fierce price competition, resulting in margin
squeezes for both wire line voice tariffs in organization for Economic
Cooperation and Development Countries have fallen by an average of three
percent per year between 1999 and 2003.

17
Maran et al. (2004)103 studied the consumer perceptions about fixed telephone
lines in Chennai. The objectives of the study was (1) to find the most
influencing factor in selection of service provider, and (2) to measure
customer perception and satisfaction as regards the service provided. The
study on a sample of 550 telephone users indicated that some problems exist
that deserve the attention of the company. The company needs to bridge the
gap between the services promised and services offered. And to conclude,
“Delivering service without measuring the impact on the customer is like
driving a car without a windshield”.

Liu (2002) found that the choice of a cellular phone is characterized by two
attitudes: attitude towards the mobile phone brand on one hand and attitude
towards the network on the other.

Videsh Sanchar Nigam Limited (VSNL) 16th Annual Report (2002)4 India
like many other countries has adopted a gradual approach to telecom sector
reform through selective privatization and managed competition in different
segments of the telecom sector. India introduced private competition in
value-added services in 1992 followed by opening up of cellular and basic
services for local area to competition. Competition was also introduced in
National Long Distance (NLD) and International Long Distance (ILD) at the
start of the current decade.

Ruth M. Bolton and James H. Drew (1991) , developed a model of how

customers with prior experiences and expectations assess service
performance levels, overall service quality, and service value. The model was
applied to residential customers' assessments of local telephone service. The
model was estimated with a two-stage least squares procedure through survey

18
 data. Results indicated that residential customers' assessments of quality and
value are primarily a function of disconfirmation arising from discrepancies
between anticipated and perceived performance levels. However, perceived
performance levels also were found to have an important direct effect on
quality and value assessments.

Samuvel (2002) observed that most of the respondents consider size, quality,
price, instrument servicing are an important factors for selecting the handset
while majority of the respondents are satisfied over the payment system,
quality of services, coverage area and the process of attending the complaints
regarding their mobile service provider.

Nandhini (2001) examined that attitude of the respondents using cell phones was
not influenced by either education or occupation and income.

Marketing Whitebook (2005)19 explains with support of detailed data that

bigger players are close to 20% of the market each. In CDMA market, it is
Reliance Infocom and Tata Teleservices are dominating the scene whereas 73
Airtel is lead in GSM operators. Between 2003 and 2004, the total subscriber
base of the private GSM operators doubled. It rose from 12.6 million
subscribers at the end of March 2003 to 26.1 million by the end of March
2004. And yet that 100% growth rate notwithstanding, total industry revenue
for 2003-04 was around Rs. 8308 crores. Compared to Rs. 6400 crores that
industry grossed in 2002-2003, that is an increase of 30%.

According to a paper released by the Associated Chambers of commerce and

Industry of India (2005)21, it is stated that 30% of the new mobile
subscribers added by the operators worldwide will come from India by

19
 2009.10% of the third generation (3G) subscribers will be from India by
2011,

Indian handset segment could be between US $ 13 billion and US $ 15 billion

by 2016.It offers a great opportunity for equipment vendors to make India a
manufacturing hub. Indian infrastructure capital expenditure on cellular
equipment will be between 10 to 20% of the investment that will be made by
international operators by 2015. The other proposals included setting up of
hardware manufacturing cluster parks, conforming to global standards and fiscal
incentives for telecom manufacturing among others.

Kalpana and Chinnadurai (2006) found that advertisement play a dominant

role in influencing the customers but most of the customers are of opinion
that promotional strategies of cellular companies are more sale oriented
rather than customer oriented.

Haque et al (2007) suggested that price, service quality, product quality &
availability, and promotional offer play a main role during the time to choose
telecommunication service provider.

Dr.G.Indrani 1 & K.R.Nandhini2( 2018), in his study of customer factors that

driven the efficiency and satisfaction for services in combaitore city hasfound
that t users prefer to avail services from favorite service providers due to
various reasons. It is cleared that the coverage area, billing system, plans
offered and lower service charge and the mobile users are considered these
factors to decide the service provider. Indian scenario is the price sensitive
scenario where people shift from one vendor to another for very small
difference of amount. Thus the service provider who provides more offers

20
with low price will lead the market. To compete with each other airtel and jio
introduces new innovate plans to attract customers. The telecom provider that
implements the way customers suggest will have a great scope in future
market.

C HAPTER 3

RESEARCH METHODOLOGY

MEANING OF RESEARCH METHODOLOGY

Research methodology is a methodology 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. The questionnaire has been drafted & presented by the
researcher himself.

METHODOLOGY

Random sampling research method was used to properly analyze and give a
clear picture of the study. The population for the study comprise studensts,
professionls and othe consumers using such services. During current session.
This was used as sample for the study. The data obtained for the survey was
collected between January 20.. and February 20... It was collected by issuing

21
out questionnaire to the respondents. Close-ended questions were adopted
which provided answers that are easy for interpretation and tabulation. A
total of …..copies of questionnaire were distributed and a total of ….were
returned giving a response rate of ……The returned soft copies of
questionnaire were analyzed using percentage and frequency count.

SOURCES OF DATA

INTRODUCTION

Generally we can collect data from two sources. primary and secondary
source. Data collected from primary source are known as primary data and
data collected from secondary source are called secondary data Primary data
are also known as raw data. Data are collected f mm the original source in a
controlled or at uncontrolled environment Example of control lied
environment experimental research was certain variable are being controlled
by the researcher. On the other hand, data collected thought observation
questionnaire survey in a natural s cuing an example data obtain in an
uncontrolled environment. Secondary data obtained from secondary sources
such as report- books, journals, document, magazines, the web and more.

Primary data
Research Instrument

A structured undisguised questionnaire:

Structure undisguised questionnaires are the most commonly used in research
today every responded is posed the same question same sequence with the
same opportunity of response. In most case the purpose of the research is
clearly stated in an introductory statement or is an obvious from the question

22
asked. This type of instrument has advantages of simplicity in administration,
tabulation and analysis; standardize data collection. objectivity; and
reliability.

Secondary data
Source of secondary data of our project is :
Internet
Magazines
Newspapers etc.

SAMPLING METHOD & SAMPLE SIZE SAMPLING

A sample is a smaller collection of units from a population used to determine

truths about thats population".
Our project is based on Convenience sampling.
Convenience sampling: Sometimes known as grab or opportunity sampling
or accidental or haphazard sampling A type of nonprobability sampling
which involves the sample being drawn from that part of the population
which is close to hand. That is readily available and convenient. The
researcher using such a sample cannot scientifically make generalized about
the total population from this sample because it would not be representative
enough In social science research, snowball sampling is a similar technique.
Where existing study subject axe used to recruit more subjects into the
sample. Use results that are easy to get
SAMPLING PROCESS
Sampling process comprises several stages:
1. Defining the population of concern.
2. Specifying a sampling frame.
3. a net of items or events possible to measure.
4. Specifying a sampling method for selecting items or events from the
frame.

23
 5. Determining the sample size. Implementing the sampling size,
Sampling and data collecting.

OBJ ECTIVES OF THE STUDY

The study has been conducted to an effect of launch of jio sim on other
competitor.
The specific objectives of the study are:

 To analysis of effect of JIO network on other competitor.

 To analysis of competition of telecom industry in modern era.
 To identify the benefits and satisfaction toward JIO network and it’s
effect on airtel customers.
 To analyse how the jio has affected the operational plans of competitors like
airtel and how they are maintainig the operational efficiencies.

DATA ANALYSIS AND FINDING

IMPACT OF COMPETITION ON AIRTEL
OPERATIONS
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,

24
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.

OPERATIONS

FREE VOICE & 4G DATA FROM OPERATORS BY JIO EFFECT

EFFECT ON AIRTEL : CHEAP PLANS INTRODUCED AND DIGITAL SERVICES
PROVIDED

Bharti Airtel lost Rs8454.49crore in market value after Mukesh Ambani

announced plans for Reliance Jio at RIL‟s 42nd annual general meeting. After
the launch of Jio, the industry entered into a price war and Airtel‟s revenue
fell by about 78%. To fight off competition and increase revenue, Airtel
adopted various strategies. Airtel is in talks with Warburg Pincus to raise as
much as $1.5 billion by divesting up to 15% in its holding company for African
Operations. This will be followed by a listing that will help the company repay
some of its debt and fend off competition in the Indian market. The money
raised will help Bharti Airte. pay down some of its Rs95000crore debt. The
proceeds will also help bolster the company‟s efforts to stay competitive in the
Indian market where it declared its first quarterly loss in contrast with
profits in Africa. The company is the midst of a prolonged price war that
intensified with the entry of Reliance Jio and which is likely to continue for
some time, while its African operation has now more or less stabilized. Airtel
has decided to dump customers who buy recharge plans costing less than
Rs35 per month. Airtel charts out this new strategy to take on rival Reliance
Jio which brought industry tariffs to rock bottom. The company believes that
this will reduce the number of marginal customers, rein in selling, general
and administrative expense and help focus attention on improving services to
better paying users. Through its minimum recharge plan, Airtel has
simplified seven or eight tariffs with minimum recharge plans starting at
Rs35. This will also reduce Airtel‟s low-end customer base which the
management claims would help improve their ARPU (Average Return per
User). Airtel is also planning to launch 6000 new sites and 2000km of
optical fiber in Gujarat. Airtel has received approval to acquire Telenor India
and will receive all of its assets and customers. A subscriber is a source of
revenue, but it is also a cost to the operator. Bharti Airtel is focusing on
segments of importance based on their future plans.

25
 ARPU COMPARISON AFTER THE JIO IS TEND TO DECREASE NOT
ALLOWING A SUSTAINABLE BUISNESS MODEL.

ARPU’s rise: Bharti's Airtel’s  ARPU (Average Revenue Per User) was the
highest in the last 12 quarters, driven by a 45 per cent growth in 4G customers to
138 million, 40 per cent growth in monthly data usage per user to 16.6 GB and a
12 per cent increase in voice usage to 994 minutes. Reliance Jio’s Average
Revenue Per User jumped 8% to ₹140.30 in the quarter. 'Fitch expects industry
ARPU to grow by around 5 to 10% in FY21 as users upgrade gradually to higher-
tariff 4G price plans.' According to Bharti Airtel, ARPU needs to grow to around
₹200 and eventually to ₹300 for a sustainable business model.

26
Tariff Hike Impact on Consumers
Minimum recharge became more expensive, now at Rs.49 against Rs.35 earlier
(for unlimited call + 100 MB data)
This 30-45% tariff hike would be the biggest in India’s telecom industry, with
pricing of voice services back for most plans. A prolonged price war since 2016,
after the entry of Reliance Jio in Telecom Sector, damaged industry finances and
heavily hurt revenues.
Vodafone Idea and Airtel, both increased rates only for prepaid subscribers, who
account for over 90% of their user base.
Airtel tariff increases range from 50 paise a day to Rs.2.85 per day. Airtel is
going to continue to make large investments in emerging technologies and
digital platforms.
While, Reliance Jio is going to provide up to 300% more benefits than its
competitors with the additional tariff on its users. Mr.Mukesh Ambani said,
“While remaining committed to the ultimate interest of the consumer, Jio will
take all necessary steps to help sustain the Indian telecommunications industry.
Also, Jio will continue to work with the government on consultation for revision
of telecom tariffs.”
As per the Fair Usage Policy (FUP), additional 6 paise per minute charge after a
limit, for calls made to rival’s networks.

Airtel recharge plans under Rs 250

Airtel Rs 249 prepaid plan
Airtel offers 1.5GB daily high-speed data, unlimited data and 100 daily SMSes
under its Rs 249 prepaid plan. In addition to usual benefits, customers will get a
free subscription to Airtel’s Wynk Music service, access to Airtel Xstream

27
Premium app, and cashback of Rs 100 on FASTag. Also Read - Fake WhatsApp
message claims free internet for three months, don't fall for it

Airtel Rs 219 prepaid plan

This plan offers daily data speed of 1GB per day, unlimited data and 100 daily
SMSes. Similar to Airtel Rs 249 plan, you can get free subscription to Airtel’s
Wynk Music service, access to Airtel Xstream Premium app, free online courses
with Shaw Academy, and Rs 100 cashback on FASTag. The plan comes with a
validity period of 28 days.

Airtel Rs 199 prepaid plan

If you are slightly tight on budget, you can purchase the Airtel Rs 199 plan that
offers 1GB of high-speed daily data, unlimited calling benefit, and 100 free
SMSes per day. As for additional benefits, the Rs 199 prepaid plan carries same
offers as the above-mentioned plans. Users should keep in mind that the Airtel
Rs 199 prepaid plan comes with a validity period of 24 days.

Jio recharge plans under Rs 250

Jio Rs 249 prepaid plan
Jio Rs 249 prepaid pack provides 2GB daily data, and 100 SMSes per day.
Given the telecom operator removed IUC charges, you will now get unlimited
calling benefits as well. The plan has a validity of 28 days and include
complementary subscription to Jio apps like JioTV, JioCinema, and more.

Jio Rs 199 prepaid plan

The Jio Rs 199 prepaid plan offers a total of 42GB data which means you will
get 1.5GB 4G data per day. Additional benefits include unlimited domestic calls,
100SMSes free per day and complimentary subscription to Jio apps. The plan
comes with a validity period of 28 days.

Jio Rs 149 prepaid plan

Jio Rs 149 prepaid plan carries benefit similar to the other two Jio plans
mentioned in this list, however it comes with a validity of 24 days. The plan
offers high-speed 4G data of 1GB per day.

Vodafone-Idea (Vi) recharge plans under Rs 250

Vodafone-Idea (Vi) Rs 249 prepaid plan
Vi Rs 249 prepaid plan with 1.5GB daily data, unlimited calls, and access to Vi
movies and TV. If you purchase plan via the company’s MyVi app you can grab
an extra 5GB of data and binge-all night offer that provide high-speed night-
time data at no extra cost. The Vi prepaid plan has a validity of 28 days.

Vodafone-Idea (Vi) Rs 219 prepaid plan

28
Vi Rs 219 prepaid plan offer 1GB data per day, and truly unlimited calls for a
validity period of 28 days. The company has also provided app/web exclusive
offer of an additional 2GB data. In addition, you can access Vi’s movies and TV
content as well.

Vodafone-Idea (Vi) Rs 199 prepaid plan

Unlike the above Vi plans, the Rs 199 prepaid plan doesn’t bundle additional
data offer. However, you can get 1GB of high-speed daily data and truly
unlimited calls for a validity of 24 days.

29
GENDER
GENDER No of person
MALE 39
FEMALE 21

TOTAL 60

No of person

21 MALE
FEMALE
39

1. What is your current telecom service provider?

Service provider No of person

Airtel and JIO 18
Idea and JIO 22
Vodafone and JIO 12
JIO and other cellular 08
network

30
 No of person
Airtel and JIO
8 Idea and JIO
18
12 Vodafone and JIO
JIO and other cellular
network
22

Out of 60 respondent, 22 people are use Idea and JIO service connection in their smart phone
and 18 people are se Airtel and JIO services connection in their smart phone and 12 people
are use Vodafone and JIO in their smart phone and remaining are use JIO and other cellular
network in their phone.

Which parameter do you look for while selecting network service provider?

Parameters No of person
Data charges and plan. 22
Network service/availability 11
Customer care services 09
Offers and schemes 14
Other reasons recommended 04
by friends of else

25
20
15
10
5
0
n. ty s es ls e
No of person

a li e
pl bi vic m fe
d ila er he so
an a s sc d
es av ar
e nd en
rg e/ a ri
a vic rc rs f
ch er e e by
ta ks st
om Off de
d
Da or Cu en
tw m
Ne om
rec
s
s on
ea
e rr
h
Ot

out of 60 people, 22 people are select network service as per calling charge and tariff plan
availability and 14 people are select network service by offers and schemes offered by

31
companies and remaining 11, 9 and 4 people are select network service on the basic of
network service and availability and customer care services and other reason recommended
by friends respectively.

. What was your previous service provider for data uses and for calling?

Service providers No of person

Airtel 16
Idea 21
Vodafone 10
Bsnl 08
Other 05

25 Idea; 21

20 Airtel ; 16
Vodafone;
15 10
Bsnl; 8
10 Other; 5
5
0
Airtel Idea Vodafone Bsnl Other

Out of 60 respondent, 21 respondent were used idea network connection for data uses and for
calling and 16 people were use Airtel network connection for data uses and for calling and
remaining 10 and 8 respondent use Vodafone and DoCoMo for data use and for calling.

Which factor attracts you toward JIO network service?

Factors No of person
Free data uses 16
Free calling service 11
Free and Easy available 08
All of above 25
Out of 60 respondent, 25 respondent said that all the basic factor, i.e. free data, free calling
and easy availability was attract them towards JIO network connection service.

All of above 25

Free and Easy available 8

Free calling service 11

Free data uses 16

0 5 10 15 20 25 30

32
 Your current service provider was mainly used for?

Factors No of person
1gbperday 03
2gb per day 29
3gbperday 21
4gb er day 01
1.5 gbperday 06

OUT of 60 respondents 29 respondents use 2gb/day data plan recharges. 21

respondents use 3 gb per day plan of service provider. thus it is observed that
majority of the respondents are using 2 to 3 gb data per day. At their mobile
service provider.

35

30
29
25

20 21
No of person
15

10

5 6
3
0 1 day
1gbperday 2gb per day 3gbperday 4gb er 1.5 gbperday

What is your preference in network connection towards Reliance Jio

network?
A. Primary network connection
B. Secondary network connection

Preference No of person

Primary network connection 19

Secondary network connection 41

33
 No of person
Primary network
19 connection
Secondary network
41 connection

Out of 60 respondent, 41 respondent prefer JIO as a secondary network connection and

remaining 19 prefer JIO as a primary network connection.
Did you stopped recharging on your primary network connection after Start using of JIO
network?

Opinion No of person

YES 39

NO 21

No of person

21 YES
NO
39

INTERPRETATION :- Out of 60 respondent, 39 said that they were stop recharging on

their primary or other network connection after start using JIO network

Do you wish to come back to Parent service provider , from migrated to Reliance JIO?

34
 No of person
13 YES
24 NO
MAY BE
23

INTERPRETATION :- Out of 60 respondent, 24 respondent said that may be they will come
back to their older service providers and 23 respondent said that they will not come to their
previous network connection and remaining, i.e. 13, said that they will come back to their
previous network connection.

Table And graph showing the digital service that are most liked by the
consumers,when selecting recharge plans, of both airtel and jio.

Opinion No of person No of person

wynk; 18
Amazon prime
Amazon prime 28 Amazon Airtel x stream
prime; 28
wynk

Airtel x stream 14 Airtel x

stream; 14

wynk 18

Interpretation showing that Amzon prime is the

most liked application service proided by the consumer on the recharges plan of
airtel, followed by wynk which is liked by 30% of the respondents and amaxon
is preffered along recharge plan by 46 % of respondents

35
 Opinion No of person

Disney hotstar 29

Jio tv 14
Jio saavn 17

No of person

Jio saavn
28% Disney hotstar
Disney
hotstar Jio tv
48% Jio saavn

Jio tv
23%

Interpretation showing that disney hotstar is the most liked application service
proided by the consumer on the recharges plan of JIO, followed by jio saavn
which is liked by 29% of the respondents and disney hotstar is preffered along
recharge plan by 49 % of respondents.

From the obervation of the data it is Statistics

how will u rate how likely will
clear that mean value for the
the internet you
satisfaction with jio internet speed is
speed of jio recommended
slightly above the neutal point mark jio over airtel for
which shows that jio is having goof internet
internet speed but there is scope of Valid 60 60
N
improvement as it is observed in Missing 10 10
todays time that quality regarding Mean 3.65 3.68

speed has sen a dip which also effects Std. Deviation .917 1.142
Minimum 2 2
the decision to switvh for the
Maximum 5 5
competitor brand like AIRTEL.

36
 HOW WILL U RATE THE INTERNET SPEED OF JIO
Frequency Percent Valid Percent Cumulative
Percent

disagree 8 11.4 13.3 13.3

neutral 15 21.4 25.0 38.3

Valid agree 27 38.6 45.0 83.3

strongly agree 10 14.3 16.7 100.0

Total 60 85.7 100.0

Missing System 10 14.3
Total 70 100.0

We observe that most of the respondents i.e. about 45% candidate and 16.7 % candidates are
satisfied with the internet speed of jio.15 respondents are unsure abouth the satisfaction with
the speed of jio and thus they may switch on the basis of various factors to AIRTEL and
others competitors like price reduction.

HOW LIKELY WILL YOU RECOMMENDED JIO OVER AIRTEL FOR INTERNET

Frequency Percent Valid Percent Cumulative

Percent

disagree 12 17.1 20.0 20.0

neutral 15 21.4 25.0 45.0

Valid agree 13 18.6 21.7 66.7

strongly agree 20 28.6 33.3 100.0

Total 60 85.7 100.0

Missing System 10 14.3 \
Total 70 100.0

Here in this table also we observe that 33 respondents are clear in their terms that they will
recommend to others to use jio over the other networks , while a significant number of
respondents are still not clear and unsure about the reccomendation that paves way for
service providers to attract them toward their services.

37
 FINDINGS

 36.66% people are use Idea and JIO service connection in their smart
phone and 30% people are se Airtel and JIO services connection in their
smart phone and 20% people are use Vodafone and JIO in their smart
phone and remaining are use JIO and other cellular network in their
phone.
 35% respondent were used idea network connection for data uses and for
calling and 26.66% people were use Airtel network connection for data
uses and for calling.
 disney hotstar is the most liked application service proided by the
consumer on the recharges plan of JIO, followed by jio saavn which is
liked by 29% of the respondents and disney hotstar is preffered along
recharge plan by 49 % of respondents.
 Amzon prime is the most liked application service proided by the
consumer on the recharges plan of airtel, followed by wynk which is liked
by 30% of the respondents and amaxon is preffered along recharge plan
by 46 % of respondents
 Out of 60 respondent, 24 respondent said that may be they will come back
to their older service providers and 23 respondent said that they will not
come to their previous network connection and remaining, i.e. 13, said
that they will come back to their previous network connection.

 OUT of 60 respondents 29 respondents use 2gb/day data plan recharges.

21 respondents use 3 gb per day plan of service provider. thus it is
observed that majority of the respondents are using 2 to 3 gb data per day.
At their mobile service provider.
 41% respondent said that all the basic factor, i.e. free data, free calling
and easy availability was attract them towards JIO network connection
service.

38
  68.33% respondent prefer JIO as a secondary network connection and
remaining 31.67% prefer JIO as a primary network connection.
 65% said that they were stop recharging on their primary or other network
connection after start using JIO network
 40% respondent said that may be they will come back to their older
service providers and 38.33% respondent said that they will not come to
their previous network connection.

CHAPTER 5
RECOMMENDATIONS AND CONCLUSION

It is found from the study that the majority of the respondents have given top
preference to JIO as a secondary network connection. Hence it is suggested that
the other service providers (IDEA Airtel, Vodafone, ) have to focus on
improving their service quality, responsiveness, attractive offers, customer care
service and impactful advertisement in order to widen their subscriber’s base
and capture more customers and market share.

It is found from the study that the majority of the respondents have given top
preference to the data speed . free data , free calling are attracting customers
towars jio , Service quality of the network plays a vital role. Hence it is
suggested that the operators have to maintain proper service quality in the call
connectivity, Fulfilling their expectation, value added digital service offered by
jio and airtel with the recharghe plan also shows that digital services also
provide operational advantage to company , also service offered including
mobile data, caller tune, dry run, playback etc. Especially special attention must
be given for providing on time customer care connectivity which may save
customer time and able to process their request by the service providers on a
need basis.

The Indian mobile telephony market has grown at a rapid speed in the last
decade. Declining the call tariffs and favorable regulatory policies have led to a

39
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 study has been carried out to find out the most preferred mobile network
service provider and the factors influencing to use the particular mobile network
service. The results revealed that JIO network connection the most preferred
mobile network service providers after launch in the market. Service quality,
Value added services and customer care service are the most influencing factors
in the selection of a particular mobile network service provider. If these
suggestions are considered by the respective mobile network service providers
and it would certainly help to improve the service quality of the mobile network
service providers and also it improves the level of satisfaction of the mobile
network users.

Though the companies has to look after the average revenue per customer

Because according to data ARPU will have to be around 200 to sustain the
profitable buisness model. As due to large consumer base and low prices
induced by jio, ARPU of JIO is minimun and is close to 140 now.

AIRTEL has been succesfull in increasing their ARPU and thus increase their
profit maargin ir- respective of less customer base than their rival jio.

OperationLefficiency has been more dynamic now for AIRTEL as they

continuosly need to change the prices of 2gb and 3 gb per day data plans
because these are trhe major plan use by the customer.

That’s why airtel need to continue with their digital free subscription of
AMAZON AND WYNK in their recharge plans to meet the competition of jio

40
 CHAPTER 6

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www.google.com
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https://www.indmoney.com/articles/telecom-sector-outlook-robus
https://www.airtel.in/press-release/12-2019/airtel-announces-revised-tariffs-for-
mobile-customers
https://www.livemint.com/companies/news/jio-airtel-vodafone-idea-new-
recharge-plans-who-s-the-cheapest-11575634632838.html

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