MANAV SHAH

COMMERCE
FYBCOM SEM II
HFBC 826
RECENT TRENDS IN SERVICE SECTOR : TELECOMMUNICATION SETOR

INTRODUCTION

The Telecommunications industry is divided into following subsectors: Infrastructure,

Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G,
Telephone service providers and Broadband.

RELIANCE JIO

COMPANY PROFILE

Jio was established on 15th February, 2007. After, Reliance became

popular and launched Jio as the fastest network service provider. Jio
reached in every corner of India. The company motive is to provide digital
platform to the world. Jio launched many services include entertainment
services, social benefits, internet services, broadband, etc. in 2016, the
company launched Jio apps, like Jio browser, Jio meet, Jio tv, Jio security,
Jio Saavan, Jio cinema, Jio cloud, Jio news, Jio health, etc. Jio has signed
on more than 340 million customers by offering free domestic calls and
data service.

Products

 Mobile phones
 Broadband
  Internet services
 OTT services
 Digital television
Founder
The main founder of Jio is Mukesh Ambani. He is the chairman and
managing director of Reliance company. Mukesh Ambani is an Indian
billionaire businessman. He is currently the richest man in Asia with
networth of US$1.6 billion and he is listed as fifth richest man in world. He
is a successful man. Ambani was born on 19th April, 1957. Ambani is
famous in over the world. He is also focused on development of country.
He also provide social benefits to people. On 2016, he is honored as
Othmer Gold Medal by Chemical Heritage Foundation.

Journey
On 5th September, 2016, Jio launched its new services with cheap tariff
plans. Jio changed the domestic telecom industry in a big way. The
company announced unlimited data, voice calls and SMS. Jio also provide
online payment platform in which customer pay their bills or recharge
online. Now, Jio is the largest telecom industry in India. The company
provide many opportunity to customers to grow with them and make a
“Digital India”. Reliance Jio has partnership with Google to manufacture 4G
handset at affordable prices. Jio brand Ambassador is Shah Rukh Khan.

Mission
Jio mission is to make a digital India and to ensure Indian’s have highest
quality and highest quantity data at affordable prices. The Jio target is to
reach in each and every corner of the world.

Company Assets
Jio is one of the fastest network in India. In 2020, the total assets of Jio
Rs.187,720crore (US$26billion).

Networth
 Reliance launched Jio with a target that it will be the largest telecom
industry in the world. In 2020, the total networth of Jio Rs.18,632 crore
(US$2.6billion).
 MARKETING MIX

Telecommunication Marketing
 
Telecommunication services play an incremental role in the multi-
dimensional development activities. A well functioning
telecommunications network is an essential component of economic
infrastructure. The application of modern marketing principles in the
telecommunication services would make ways for the generation of profits
and at the same time would also make the services affordable to the users
at large. The telecommunications organizations are supposed to market the
services in such a way that a high level of efficiency generates a high level
of profit. With the growing sophistication in the process of
telecommunication technologies, multi-faceted services are being offered
by the telecommunication organisation which is managed and controlled as
a government department by the Ministry of Communications.
Telecommunications marketing focuses on marketing the services
professionally and this makes it a managerial process. The marketing
professionals bear the responsibility of managing the services which enrich
the service profile of telecom in order that the world class services are
made nationally and internationally competitive.
 
Marketing Mix for Telecommunication Organizations
 
The formulation of a sound marketing mix is found essential to make
possible an optimal development of marketing resources. The marketing
professionals bear the responsibility of developing optimal marketing
inputs so that the world class services reach to the different segments of
users in a right way. It is in this context the formulation of marketing mix
for telecommunication is considered. It goes through the different
submixes such as the product mix covering he designing of a quality
services profile, the promotion mix having more creativity and sensitivity,
the tariff policy making possible designing of a sound tariff structure, the
place mix containing the problem of processing the services with the motto
of bridging over the gap between services –promised and services –offered
and the people mix for striking a balance between performance-orientation
and employee-orientation.
 
Product Mix
 
The telecommunication organizations offer multi-dimensional services to
the different categories of domestic and institutional users.
 telecommunication include a number of services such as the telephonic
service including cell services, telegraphic services, e-mailing services, fax
services, internet services and so on. On one hand the telecom
organisatoins feel that the services are quite satisfactory, while on the other
hand there are increasing cases of dissatisfaction among the users. This
makes it essential that sincere efforts to be made to improve the quality of
service.
 

Promotion Mix
 
This submix of the marketing mix focuses on creative promotional
measures helping the telecom organisatoins in informing, sensing and
persuading the users. In this context, different constituents of promotion,
such as advertising, publicity, sales promotion, personal selling, word-of-
mouth promotion are discussed.
 
Advertising
 
Like other organizations, the telecommunication organisatoins may also
advertise with the help of media. All the three media, such as the print
media, broadcast media and telecast media can be used for that very
purpose. While advertsing, the marketing professionals in general and the
advertising professionals in particular are supposed to make the slogans,
themes and appeals more creative so that the target prospects are sensitized
in a right way.
 

Publicity
 
Another component of promotion focuses on publicizing the business with
the support of media personnel and opinion leaders. The telecom
organizations may use this constituent with he motto of informing the
prospects the salient features of innovative services offered or to be
included in the services mix. The marketing professionals or the public
relation officers need to accept the responsibility of developing rapport
with the media people, to arrange for them lunch or dinner and to offer to
them some small gifts to write news items or articles related to the services
and to place them at the eye catching locations.
 
Sales promotion
 
 It is essential that the telecommunication organisatoin makes use of sales
promotion measures for promoting the innovative services, specially used
by the large-sized customers. If he prospects are offered some small gifts,
the motivation process would be switched on. In addition, they also need to
offer innovative tools of sales promotion to some of the high performers in
the group of employees who instrumentalise the process of getting the
profitable business.
 
Personal selling
 
The instrumentality of personal selling is involved in the essence of
promoting the business with the support and cooperation of sales people.
The telecommunication organisatoins are required to promote its business
to tap the sales potentials or the market potentials which remain untapped
or partially tapped due to a communications gap. The role of personal
selling becomes important in the context of privatization of telecom
services and due to emergence of buyers‟ market.

Word-of-mouth promotion
 
This constituent of the promotion mix is found based on the quality of
services offered by the service generating organisatoins. In the
telecommunication organisatoins, we find this component instrumental
because the satisfied group of users would narrate to their friends, relatives,
well wishers regarding the outstanding services they experienced as a
customer.

Price Mix
 
Almost all the organizations either producing goods or generating services
find pricing decisions significant to the development process. In the context
of telecommunication organisatoin the different categories of users buy the
services and therefore the telecommunication organisatoin is required to be
more careful in setting the tariff structure

GROWTH AND RECENT TREND

Telecom companies are at an inflection point witnessing a broad landscape of

significant changes. There has been a business and customer model disruption, with

technologies like AI, big data and the internet of things redefining service-delivery

and value-capture models, while start-ups/OTT setting new standards for seamless

customer experience.

With the pandemic staggering the world in the last two years, the recovery post

pandemic has shifted the focus to supporting consumers and businesses

through digital transformation and building an ecosystem that adds value.

Consumers are heavily relying on bandwidth as activities like remote learning, work

from home and gaming have become permanent. 

With the spectrum auctions taking place now, India can expect by the end of the year

to join the ranks of countries with 5G telecom networks. It will also bring a radical

change to the telecom sector in India. Telecom companies will need to reinvent

themselves to stay relevant in the enterprise segment as they may face competition

from non-telecom companies that could soon start offering their own 5G services

focused on the enterprise segment.

The 5G standard for cellular networks has advanced the experience of

communication not only due to reduced latency, better coverage, and energy savings

but also by transforming various sectors and revolutionizing the functionalities of

emerging technologies such as AI, AR/VR, edge computing, and the internet of

things (IoT) in more than 70 countries where it has been launched. From self-driving

vehicles to remote surgery, machine-to-machine communications, and smart cities,

5G will enable various new use cases in consumer and enterprise markets across

industries. 

The entry of non-telecom companies into the 5G ecosystem will completely change

the current shape and structure of the telecom sector. Further, the lines that separate
businesses will become increasingly blurred as companies from IT to online retail are

working on their own 5G solutions that will eventually compete with or complement

telcos’ offerings.

The prospect of future competition as well as the evolving needs of their enterprise

clients is also making Telcos change the way they have traditionally operated. From

being plain vanilla suppliers of bandwidth, they are transforming to business

ecosystem partners

Driving the demand for 5G solutions is the adoption of Industry 4.0 which is finally

coming into its own as enterprises transform into “digital enterprises”. The

convergence of AI, 5G and IoT require a deeper shift in investments, IT systems,

operations, skills, and even organizations’ culture. Operators need to define a

detailed vision of what the next-gen telcos will look like with some bold moves

focussing on digital service models, improving cost and capital efficiencies.

Over the last seven years, the Indian Telecom Tower industry has grown significantly by
65%. The number of mobile towers increased from 400,000 in 2014 to 660,000 in 2021.
Similarly, the number of Mobile Base Transceiver Stations have grown rapidly by 187% and
increased from 800,000 in 2014 to 2.3 Mn in 2021. Rural tele-density jumps from 44% in
March 2014 to 58% in October 2022.

As per GSMA, India is on its way to becoming the second-largest smartphone market
globally by 2025 with around 1 Bn installed devices and is expected to have 920 Mn unique
mobile subscribers by 2025 which will include 88 Mn 5G connections. It is also estimated
that 5G technology will contribute approximately $450 Bn to the Indian Economy in the
period of 2023-2040. 

India added over 500 Mn new smartphone users over the last decade. We are expected to
have 850 Mn smartphone users by 2026, representing ~55% of the total population.  
The DoT is targeting a combination of 100% broadband connectivity in the villages, 55%
fiberization of mobile towers, average broadband speeds of 25 mbps and 30 lakh kms of optic
fibre rollouts by December 2022. Broadband connections rise to 816 Mn in September 2022
from 61 Mn in March 2014, growing by 1238%. By December 2024, DoT is looking at 70%
fiberization of towers, average broadband speeds of 50 Mbps and 50 lakh kms of optic fibre
rollouts at a pan-India level.