Professional Documents
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A STUDY ON comparative
analysis on airtel and jio
Undertaken at
“TECNIA INSTITUTE OF
ADVANCED STUDIES"
BACHELOR OF BUSINESS
ADMINISTRATION
to
Date:
certificate
Certified that the Project Report submitted in partial fulfillment of Bachelor of Business
Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi
by_____________________________ , Enrolment No.______________________
has been completed under my guidance and is Satisfactory.
Date:
Destination:
ACKNOWLEDGEMENT
I would like to take the opportunity to express my sincere gratitude to all people who have helped
me with sound advice and able guidance.
Above all, I express my eternal gratitude to MS. MEGHA MOHAN under whose divine guidance; I
have been able to complete this work successfully.
I express my sincere thanks to my friends and family for their support in completing this report
successfully.
TABLE OF CONTENTS
LIST OF TABLES
LIST OF CHARTS
COMPANY
PROFILE
CHAPTER 4 DATA ANALYSIS 16-43
AND
INTERPRETATION
CHAPTER 5 FINDINGS, 44-47
SUGGESTIONS AND
CONCLUSION
BIBLIOGRAPHY 48-49
ANNEXURE 50-53
LIST OF TABLES
9
INTRODUCTION
The history of telecommunications in human society is more th
an 130 years, in recent times
telecommunications have developed from basic needs to 4G an
d 5G services, whose development India
has become the largest telecommunications sector in the world
One has experienced an impeccable
development in the last decade, it is one of the key areas in ter
ms of economic development and job creation.
1
speed, within the first month of commercial operations, Jio ann
ounced that it had acquired 16 million
subscribers. Reliance Jio had crossed 50 million subscribers in 8
3 days since its launch and crossed 100
million subscribers on February 22, 2017. In June 2015, Jio ente
red into an agreement with the domestic
handset maker Intex and supplied a Voice-enabled 4G handset
with the LTE (VoLTE) feature. It has a
free 4G voice plan Its high speed However, later Jio launched its
mobile handset named LYF. Prior to the
launch of 4G data and telephony services in its pan-India, Jio sta
rted providing free Wi-Fi hotspots
Services in cities throughout India in March 4 2016, Jio started p
roviding free Wi-Fi internet to spectators
at six cricket stadiums hosting the 2016 ICC Cricke Twenty20 m
atches. According to Paulasset, 2016 reliance jio is working
according to Indian market; it gives best quality services at
much less price.
Reliance Jio also giving challenge to more than 30 businesses be
cause it also enters in other service sector related to telecom
sector.
REVIEW OF LITERATURE
The study of providing customer satisfaction is the most crucial
step of the company with internet access
on the move such as wide network coverage and technology ad
vanced stuff required by almost everybody
in today’s environment. Reliance jio is working according to Indi
an market; it gives best quality services
at much less price ((Paulaset, 2016)Which influence the satisfac
tion level of customer’s are: Core services
(like good coverage, good connectivity and network quality) an
d call rate. Further results show that there
is a significant relation between the brand name and the prefer
ence of customers. Hence, it has been
recommended that telecom companies should focus on connec
tivity, call rate, coverage and network
quality. The customers do not prefer reliance network (Rodrigu
es,2015) . Therefore, it will be a hard task
to get a good customer base for the 4G network. Reliance Jio In
focomm Limited announced the launch of
its digital services with JIO in Mumbai on 1st September 2016 w
ith Jio Welcome Offer. The permission
of TRAI has enabled users the access to unlimited LTE data and
national voice, video, messaging
services, Jio applications and content, free of cost up to 31 Dec
ember 2016(Singh,2017). Reliance Jio has
1
entered into the market of telecom service providers with freeb
ies and more data to the customers. In the
knowledge world, Jio’s the foray into the fast evolving market h
as made a tremendous change in thecompetition, price and dat
a availability.Jio is widely used by the techno-savvy customers. (
Jayaraman et
al.)
1
OBJECTIVES
OF THE
STUDY
To find out the customer satisfaction toward Reliance Jio
and Airtel Vodafone services in Gorakhpur, UP
To find out the most preferred telecom services in Gorakhp
ur, UP .
RESEARCH
METHODOL
OGY
Research technique – analysis technique is quantitative
methodology.
Research Design –The research design is Descriptive
Sampling – Convenience sampling
Sample size – 100
Data – Data was collected through questionnaire.
o Primary data: Primary data which is collected from the q
uestionnaire. o Secondary data: Secondary data which is
collected by the res earch, magazines, newspapers and sources
of internet.
Data Analysis Tools:
1
o Excel is used for analysis purpose. o Graphical
representation interpretation is done with the help of column
chart.
ANALYSIS
The Telecom Sector of India currently comprises 3 players name
ly Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi). Among the
se 3 players, Bharti Airtel & Reliance Jio are 2 strong players wit
h a high market share and a great consumer base. Hence, there
is a close competition between these 2 players to win the race,
on the other hand, it is a matter of survival for Vi. So, who perfo
rmed well between Reliance Jio & Bharti Airtel in the last quart
er of FY21 and know which player outperformed in this quarter
in this 4-point analysis which includes:
1) Q4FY21 Results:
i) Bharti Airtel:
• Revenue from Operations of Airtel has gone up by 12% YoY
from Rs. 23,019 Cr. in Q4FY20 to Rs. 25,747 Cr. in Q4FY21.
Sequentially, revenue has gone down by 3% from Rs.
26,518 Cr. in Q3FY21.
• EBITDA of the company stands at Rs. 12,583 Cr. in the
quarter ended 31st March 2021. The same has increased by
29% YoY and 3.3% QoQ. EBITDA of the company in Q4FY20
& Q3FY21 was Rs. 9,761 Cr. and 12,178 Cr. respectively.
• Just like growth in EBITDA of the company, the EBITDA
margin of Airtel stood at 48.9% in Q4FY21, up by 6.5% YoY
from 42.4% in Q4FY20. Quarter-on-Quarter, EBITDA Margin
was up by 3% from 45.9% in Q3FY21. EBITDA Margin at
48.9% is quite strong and comparatively better than
Reliance Jio.
• Further, the EBIT (Earnings Before Interest & Tax) of the
company has gone up by a massive 75.5% YoY to Rs.
5,048 Cr. in Q4FY21 from Rs. 2,876 Cr. in Q4FY20.
Sequentially, growth in EBIT is 8% from Rs. 4,665 Cr. in
Q3FY21.
• Despite a great jump in EBIT, the EBIT Margin of Airtel is at
19.6% in Q4FY21 up by 7.1% YoY from 12.5% in Q4FY20.
Other Costs like AGR Dues, etc. have greatly affected the
EBIT Margins of the company.
• Moving ahead to the Finance Cost of the company, Bharti
Airtel has a higher Finance Cost than its closest peer i.e., of
3,861 Cr. as of March 2021. Here, the positive thing for the
company is the reduction in the Finance Cost of 7% YoY and
3% QoQ from Rs. 4,147 Cr. in Q4FY20 and Rs. 3,972 Cr. in
Q3FY21.
• In terms of Profit Before Tax (PBT), Airtel is finally able to go
on the profitability side on a year-on-year basis. Loss of the
1
company on Q4FY20 was Rs. 469 Cr., which now stands at
Rs. 1,581 in the quarter ended 31st March 2021.
Sequentially, it has grown by a significant 167% from Rs.
592 Cr.
• Net Profit (After Exceptional Items) for the Q4FY21 was Rs.
759 Cr. for the company. Previous year in the same quarter,
there was a loss of Rs. 5,237 Cr. While QoQ has come down
by 11% from Rs. 854 Cr. in Q3FY21.
ii) Jio:
• Reliance Jio has reported a downfall of 4% in its revenue
from Rs. 19,475 Cr. in Q3FY21 to Rs. 18,278 Cr. in Q4FY21.
• EBITDA of Reliance Jio has also reported growth of 1%
quarterly from Rs. 8,483 Cr. in Q3FY21 to Rs. 8,573 Cr. in
Q4FY21.
• Similarly, the EBITDA margin of the company has gone up by
330 basis points to 46.9% in Q4FY21. EBITDA margin was
43.6% in Q3FY21.
• EBIT of the company has remained flat in Q4FY21 to Rs
5,509 Cr. in Q4FY21 against Rs. 5,531 Cr. in Q3FY21.
• Despite a flat change in EBIT of Jio, its EBIT Margin has
remained at 30.1% in Q4FY21 against the 28.4% in Q3FY21.
• Reliance Jio comparatively has a much lower Finance Cost
than Bharti Airtel of just Rs. 801 Cr. as of March 2021, down
by 6% QoQ.
• In the case of Jio, PBT is much better than Airtel of Rs. 4,708
Cr. in Q4FY21 and same has grown by 0.6% QoQ from Rs.
4,680 Cr. in December Quarter of FY21.
• Lastly, Jio earned a net profit of Rs. 3,508 Cr. in the quarter
ended 31st March 2021, up by 0.5% from Rs. 3,489 Cr. from
Q3FY21.
2
• Reliance is having Cash & cash equivalent as of Mar’21
includes balance call towards Right Issue (Rs.39,843 Cr)
2
iii) Prepaid as a % of Total Subscriber Base:
• Airtel is having 94.8% Prepaid Subscribers as a % of the
Total Subscriber Base.
• The same data is not yet available for Reliance Jio.
for Airtel.
• 4G Data Subscriber Base is 17.9 Cr. for Bharti Airtel as of
February 2021.
• All the above data are not yet available for Reliance Jio.
2
vi) Wireless Data Consumption and Per
Capita Data Consumption:
• Airtel is having a Wireless Data Consumption of 920 Cr.
GB, while the same is 1,668 Cr. GB for Reliance as of
March 2021.
• Here also, Jio is having higher Total Wireless Data
Consumption due to a higher subscriber base
• In the context of Per Capita Data Consumption, Airtel has
performed well than Jio with 16.84 GB per month as of
March 2021, same is 13.3 GB per month for Jio.
• Airtel outpaced Jio in terms of per capita Data
consumption due to :
a) Quality customers
b) Robust growth momentum in up-gradation of
customers to 4G
• Airtel is having a Strong Share of 4G net additions in the
market
• 4G data customers increased by 31.5% YoY to 17.93 Cr,
addition of 4.3 Cr 4G customers in FY21
•
2
viii) Wired Broadband Customers:
• As of February 2021, Bharti Airtel is having 29.9 Lakh
Wired Broadband Customer slightly higher than Reliance
Jio, which is having 24.3 Lakh Wired Broadband
Customers in the same period.
•
2
ii) Total Subscriber Base Market Share
Trend:
• Strong growth momentum reported by Airtel
Consistently Month-on-Month
• The total Subscriber Market Share of Airtel has gone up
from 27.96% in July 2020 to 29.83% in February 2021.
• While the market share gain for Jio is constant at
~35.50%.
• In the case of Vi, there is continuous erosion in Marke
share from 26.34% in July 2020 to 24.20% in February
2021.
• It is seen that Airtel has been successfully capturing the
market share lost by Vodafone Idea.
•
3
iii) Latest Market Share:
• In terms of Total Subscribers Market Shares, Reliance Jio
is the market leader with a 35.54% market share as of
February 2021.
• Next to Jio is Airtel, with a 29.83% market share.
• Market share of Vi, BSNL, and MTNL in Total Subscribers
are 24.20%, 10.14%, and 0.28% respectively.
• Now, considering the Active Subscribers Market Share of
the players, here, Airtel is the leader with 34.6% market
share.
• In Active Subscribers Market Share, the second position is
acquired by Reliance Jio with a 33% market share.
• Market share of Vi, BSNL, and MTNL in Active Subscribers
are 26.1%, 6.2%, and 0.1% respectively.
iv) % VLR Subscribers:
• VLR Stands for Visitor Location Register which is a key
metric reflecting the actual number of subscribers actively
using a mobile network (ie. Active Subscribers).
• Here, Airtel is having the highest 97.47% Active Wireless
Subscribers (VLR) as a % of Total Wireless Subscribers.
• The same is 90.61% for Vodafone Idea and 78.16% for
Reliance Jio as of Feb-21.
• Active Wireless Subscribers (VLR) as a % of Total Wireless
Subscribers of BSNL & MTNL are 51.72% and 20.95%
respectively.
• Whereas the Average Active Wireless Subscribers (VLR) as
a % of Total Wireless Subscribers of Industry is 84.09%.
3
Finding
1. 68% of the people using telecom service and 32% of
women answered.
3
Respondent responds to the reactive problem of 50% of the net
work users, the number of other respondents, 33% User
problem to face very high call rate and network problem.
11- Using the Jio number of 62% per user due to the most
affor dable service. Vodafone number
The user who answered the reason for the cheapest service, 50
%. 62% of the number of airtel users per user The feedback
received is about expensive, 42% response t o the number of
respondents per Airtel. Expensive and cheap about other
services
12-Jio to give feedback about Jio 52% good user, to give feedba
ck about Vodafone user
Vodafone 40% is good. Airtel user 35% very good to give feedba
ck about Airtel About 58% of other services gave good answer.
SUGGESTIONS
Based on the analysis of the following suggestions, Reliance Jio,
Vodafone, Airtel and other areas
can be offered to help in completing competitions in other area
s.
Internet Speed to Improve Io Reliance Jio.
To be give attractive offer of the user Vodafone and airtel .
Call drop to remove Reliance Jio .
To crate our image vale in our customer Reliance Jio.
Airtel and Reliance Jio, Vodafone and other telecom should give
emphasis on improving the network coverage particularly in
rural areas so that more and more customers can be retained
.
3
CONCLUSION
In study we examined the perception of the subscriber of Gorak
hpur with respect to different
service provided by Reliance Jio and Airtel, Vodafone The follow
ing conclusions were derived from the study.
Most of the user unsatisfied from Rs35 Recharge plane du
e to mostly user of Vodafone Airtel , switch in Reliance Jio .
Mostly user to be use Airtel , Vodafone and Other due to i
nternet speed batter than Reliance Jio .
BIBLIOGRAPHY
WEBSITES
https://www.google.com
https://www.jio.com
https://www.airtel.com
BOOKS
Research Methodology – methods and techniques, C R Kothari
MAGAZINE
My mobile
Business World
Digital India
Business India