A STUDY ON RELIANCE COMMUNICATIONS LTD.

An Assignment for
Business Policy and Strategy Making

Authors: Yusra Iqba Prateek Singh Adeel Rahman Molla Asmare Jahir Alam Shahira Shahir Kulsum Siddiqui Zoha Fatima

Department Department of Business Administration Faculty of Management Studies And Research Aligarh Muslim University

FollowsContribution by the Authors is as FollowsYusra Iqbal: Introduction, Strategic Environment, General Balanced Environment, Organisational Appraisal, Balanced Score Card, and SWOT Analysis, Continuum of international industry, Strategic Group Mapping Prateek Singh: CSR, Cooperative Environment, Task Environment, SAP, and Competitive Strategy Adeel Rahman : Corporate Governance Molla Asmare : Four linkage Model Alam: Financial Zaheer Alam: Financial Ratio interpretation Shahira Shahir: Competitor Analysis Kulsum Siddiqui: Competitive Strategy Zoha Fatima: --

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CONTENTS

Brief History Business Definition Vision and Mission Corporate Governance Corporate Social Responsibility Strategic Audit
Environmental Appraisal Organisational Appraisal

Competitor and Competitive Strategy

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Brief History
Reliance Communications was set up as Reliance Infocomm in 1999 and from 2000 onwards laying of optical fibers started in Maharashtra, Gujarat and Andhra Pradesh. Reliance Infocomm was inaugurated in 2002 and first of interconnect (POI) was established in New Delhi in same year. Also in that year, Reliance Communications commissioned their 1st optic fiber backbone. In 2005, this company launched global roaming facility and CDMA services. Reliance Communications was formed in 2006 and listed in Bombay and National stock exchanges.

Business Definition
Reliance Communications Limited is engaged in the business of providing telecommunications services. The Company has five segments: Wireless segment includes wireless operations of the Company; Broadband segment includes broadband operations of the Company; Global segment include national long distance and international long distance operations of the Company and the wholesale operations of its subsidiaries; Investment segment includes investment activities of the Group companies, and Other segment is consists of the customer care activities and direct to home (DTH) activities. As of March 31, 2011, the Company had approximately 136 million wireless subscribers. During the fiscal year ended March 31, 2011, the Company launched high definition (HD) set top box (STB). On December 6, 2010, the Company acquired Reliance Mobile Commerce Limited. On January 31, 2011, the Company acquire Reliance Communications Maharashtra Private Limited.

Reliance Communications services may be differentiated into ‘consumer’ service and ‘enterprise’ service. Consumer services offered by Reliance Communications include mobile service, wireless terminal and phone, Reliance landline, ‘netconnect’, broadband connection, BlackBerry, and Reliance IPTV Enterprise services of Reliance Communications comprise audio conference, office centrex, video conferencing, internet data center (IDC), BlackBerry, broadband services, and public call operator.

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

Mission
To attain global best practices and become a world-class communication service provider guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigour, dedication and innovation to achieve excellence in service quality, reliability, safety and customer care as the ultimate goal. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, the people. To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenge and attain goals. To encourage ideas, talents and value systems. To uphold the guiding principle of trust, integrity and transparency in all aspects of interpretation and dealings.

Corporate Governance
Organisations, like individuals, depend for their survival, sustenance and growth on the support and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can.

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This ethical standpoint. The Company’s philosophy on Corporate Governance envisages the attainment of the highest levels of transparency. In their commitment to practice sound governance principles. and society at large”. including shareholders. being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school. eco-system. These Policies and Code prescribe a set of systems. customers and vendors to business partners. At reliance they strongly believe that their primary obligation or duty as corporate entities is to their shareholders. economic and environmental costs and concerns. they say “we are just as mindful of the fact that this imperative does not exist in isolation. lies at the heart of the CSR philosophy of the Reliance Group. Transparency 6 . which is integrated into the very core of our business objectives and strategy. derived from the vision of the founder. it is part of a much larger compact which we have with our entire body of stakeholders: From employees. Reliance Communications Limited has maintained the highest standards of corporate governance principles and best practices by adopting the “Reliance Group Corporate Governance Policies and Code of Conduct” as is the norm for all constituent companies in the group. which conform to the best international standards and are reviewed periodically to ensure their continuing relevance. they are guided by the following core principles: 1. local communities. lenders and the society. The Company believes that all its operations and actions must serve the underlying goal of enhancing long-term shareholder value. hospital or environmental NGO. effectiveness and responsiveness to the needs of investors both local and global and all other stakeholders. They evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest. driven by the need to minimize risk and to proactively address long-term social. For Reliance. accountability and equity. employees. It is an ongoing year-round commitment. processes and principles. the government. in all facets of its operations and in all interactions with its stakeholders.

fairness. employees. Compliances To comply with all the laws. They believe that any business conduct can be ethical only when it rests on the nine core values viz. 2. lenders. Governance practices beyond regulatory requirements Governance practices go beyond the mere letter of statutory and regulatory requirements. Stakeholders’ interest To promote the interests of all stakeholders including customers. shareholders.To maintain the highest standards of transparency in all aspects of interactions and dealings. Ethical conduct To conduct the affairs of the Company in an ethical manner. 6. trust. Empowerment and accountability To demonstrate the highest levels of personal accountability and to ensure that employees consistently pursue excellence in everything they do. Disclosure To ensure timely dissemination of all price sensitive information and matters of interest to stakeholders. responsibility. respect. integrity. 5. B. With this in mind. purposefulness. 4. Values and commitments They have set out and adopted a policy document on ‘values and commitments’ of Reliance Communications. Code of ethics 7 . rules and regulations applicable to the Company. 3. vendors and the community. citizenship and caring. honesty. there are a number of policy documents and following set of governance practices: A.

Business policies Cover a comprehensive range of issues such as fair market practices. environment and quality. Prohibition of insider trading policy There is a policy on prohibiting trading in the equity shares of the Company. E. external communication. safety. I. Separation of the Board’s supervisory role from the executive management In line with the best global practices.Policy document on ‘code of ethics’ demands that employees conduct the business with impeccable integrity and by excluding any consideration of personal profit or advantage. work ethics. F. G. H. health. Policy on prevention of sexual harassment It aims at promoting a productive work environment and protects individual rights against sexual harassment. Environment policy The Company is committed to achieving excellence in environmental performance. financial records and accounting integrity. preservation and promotion of clean environment. Whistle blower policy Whistle Blower policy encourages disclosure in good faith of any wrongful conduct on a matter of general concern and protects the whistle blower from any adverse personnel action. they have adopted the policy of separating the Board’s supervisory role from the executive management. D. insider information. Risk management Ensure that the management controls various business related risks through means of a properly defined framework. based on insider or privileged information. C. personal conduct. 8 . These are the fundamental concern in all business activities. policy on prevention of sexual harassment. They have also split the posts of Chairman and CEO.

v. Board committees The Board constituted Audit Committee. the Board has appointed an independent director as the lead independent director. iv. iii. the scope and function of various Board committees etc. subject to their re-appointment on retirement by rotation as per statutory provisions. Independent director’s interaction with shareholders Member(s) of the Shareholders’ / Investors’ Grievances Committee interact with shareholders on their suggestions and queries. which sets out clear and transparent guidelines on matters relating to the composition of the Board. which are forwarded to the Company Secretary. ii. Tenure of independent directors Tenure of independent directors on the Board of the Company shall not exceed nine years. Chairman In line with the highest global standards of corporate governance. Boardroom practices i. Board charter The Board of Directors has adopted a comprehensive charter. Lead independent director Recognizing the need for a representative and spokesperson for the independent directors. Nomination/ Remuneration Committee and Shareholders’/ Investors’ Grievances Committee. the Board has separated the Chairman’s role from that of an executive in managing day-to-day business affairs. vi. The lead independent director performs 9 . if any.J. The Board rotates the Chairman of these Committees once in two years.

financial matters and business operations. performance and compensation. • work closely with the Chairman to finalized the information flow. flow of 10 . risk management strategies. strategic issues for Board consideration. vii. Periodic presentations are made at the Board and Committee Meetings. These discussions may include topics such as. viii. measures to improve efficiencies. on business and performance updates of the Company. reports and internal policies to enable them to familiarize with the Company’s procedures and practices. core values including ethics. Periodic updates and training programs for Board members are also conducted on relevant statutory changes and landmark judicial pronouncements encompassing important laws. Meeting of independent directors with operating team The independent directors of the Company meet in executive sessions with the various operating teams as and when they deem necessary. The Directors are facilitated to get familiar with the Company’s functions at the operational levels. corporate governance practices. • The position of the lead independent director is rotated. • liaise between the Chairman and the independent directors on the Board. operating policies and procedures. Training of Board Members The Board members are periodically given formal orientation and training with respect to the Company’s vision. The Board members are also provided with the necessary documents/brochures. strategic direction. meeting agenda and meeting schedules.the following roles in addition to the role of a non-executive independent director: • preside over all executive sessions of the Board’s independent directors. • take a lead role along with the Chairman in the Board evaluation process. global business environment. business strategy and risks involved.

as the independent directors may determine and deem fit. events and extensive Employee communications involving employees and their families. During these executive sessions. ix. Some of the major ones among them are: i. management progression and succession and others as the independent directors may determine. Customers can view and pay their bills online and manage their account information online.information to directors. employee engagement score. In addition to this. They also have captive contact centers having one of the largest facilities accommodating approx. Customers They have taken various customer caring initiatives. there are various on line measures on Reliance World platform which also gives ready access to the customers. employee retention. better quality of 11 . the independent directors have access to members of management and other advisors. thereby leading to higher productivity. This is aimed at increasing the Happiness Quotient of employees. Commitment of directors The meeting dates for the entire financial year are scheduled in the beginning of the year and an annual calendar of meetings of the Board and its committees is circulated to the directors. This enables the directors to plan their commitments and facilitates attendance at the meetings of the Board and its committees.500 personnel on round the clock shift basis. K. which give various services to subscribers at all times. Employees They are committed in making Reliance Communications a “Great Place to Work” and hence the pursuit has been to drive ‘Employee Engagement’ through multiple platforms. 9. Governance practices being followed to promote the interests of our stakeholders Reliance communication has introduced several trend setting governance practices to improve stakeholders satisfaction. ii.

has helped to build a healthy employee stake in the Business. but also outperformance of competition. align employees completely with Business goals and enable them to get immediate rewards. productive and agile organization. They are relentlessly driving capability. To ensure this. Continuous effort has been in re-engineering Organization Design work flows and processes. iii. it is imperative that there is not only surpassing of Annual targets. which identifies high potential talent on a periodic basis and provides necessary learning interventions to help them take on larger responsibilities and roles. enhanced automation.products and services and thus creating Happy Customers. Shareholders The Company recognizes the importance of two way communication with shareholders and of giving a balanced report of results and progress and responds to questions and issues raised in a timely and consistent manner. leadership and culture building and acquiring. highperforming culture. thereby. Lenders The Company has been prompt in honoring all debt obligations to its lenders.rcom. developing and retaining talent. This. details of which are available on the Company’s website. Shareholders can contact RCOM via dedicated shareholders contact points as provided in this report or through any of Investor Service Centers of the Company’s Registrars and Transfer Agents spread in more than 84 cities across India. iv. They have introduced Incremental Revenue Market Share (iRMS) as a critical measure for rewarding individual and team achievements. 12 .in has information for institutional and retail shareholders alike. In the hyper competitive market scenario. The leadership development process is aligned to the Reliance DNA. in conjunction with quarterly performance assessment and payouts. institutionalizing an objective and transparent. the Company’s corporate website.co. They also have an opportunity to ask questions in person at the Annual General Meeting. www. enabling to evolve into an efficient. Shareholders seeking information may contact the Company directly throughout the year.

details and documents are made available to the directors and senior management for effective decision making at the meetings. Children CSR Areas 2. education. All the Directors of the Company have access to the advice and services of the Company Secretary. Role of the Company Secretary in Governance Process The Company Secretary plays a key role in ensuring that the Board procedures are followed and regularly reviewed. Healthcare Publish Sustainability Report Member of Global Compact No No Social Commitment they have undertaken several important initiatives and measures in the area of education and healthcare. focuses on healthcare. Education Three main CSR activities 2. L. and other social initiatives. The Company Secretary ensures that all relevant information. Healthcare 1. The Company Secretary is primarily responsible to ensure compliance with applicable statutory requirements and is the interface between the management and regulatory authorities for governance matters. Society The Company. in keeping with its Corporate Social Responsibility policy.v. CSR activities in brief 13 . signifying our continued and long-standing commitment to social and community welfare. Corporate Social Responsibility undertaken by reliance communications Trust / Foundation for CSR No 1. Education 3. Children 3.

Besides this. Over 200 RCOM employees and their families participated in this program. over 500 samplings were planted in the premises of The Bangalore University Campus at Gnana Bharathi in Kengeri. Karnataka Circle Head – Reliance communications said “ We are delighted to spend quality time on a noble initiative like tree planting which is essential in today’s context”. Harmony for Silvers is yet another significant initiative which conducts programs such as Senior citizens run etc. Rashmi the Cine Star from the popular movie ‘Duniya’. In a statement release to press on the occasion Mr. “We are committed to conserving the environment in and around us with many more such initiatives.Instances of social responsibilities Plants over 500 samplings in Bangalore University Campus as part of its CSR initiative Reliance Communications. Neem and Honge (Pongamia Pinnata) The RCOM Vriksha Abhiyan was inaugurated by the Guest of Honour. Rupak Agarwal. RCOM Partners With SNDT Women's University To jointly promote education among challenged children To create resource hub Sponsors ‘Tarang 2010’ First ever initiative in Mumbai 14 .” He added Reliance Communications as part of its CSR (Corporate Social Responsibility) has undertaken such programs in Himachal Pradesh and Kerala. As part of this initiative. The saplings that were planted include Simarouba (Lakshmi Taru). India’s largest and only telecom service provider to offer nationwide GSM and CDMA services as part of its Corporate Social Responsibility program today launched ‘Vriksha Abhiyan’ a tree planting initiative in Bangalore.

The national education policy is laying emphasis on inclusive education – wherein children with special needs have to be integrated into the mainstream educational system. parents of special students.We is sure that our joint efforts will benefit thousands of physically and mentally challenged children and inspire other organizations to contribute their best Tarang 2010 was attended by most of the renowned special schools in Mumbai and Navi Mumbai. helplines etc. Providing the technical inputs on the subject as well as necessary tools to create the platform for the knowledge sharing i. Mumbai for creating a resource hub aimed at promoting education among physically and mentally challenged children. To this end. special educators.D. 2010. There is a ‘special’ fair being organized as the first of a series of events. Taranga 2010 was a curtain raiser endeavoring to increase sensitivity of the society toward children with special needs. Mumbai on February 11. policy makers. This fair will provide a platform where all the stake holders relating to disabilities/ Special 15 . This will be the first time in Mumbai that such an event is being planned. Educational and therapy equipment companies.T Women's University. the two are jointly organizing Tarang 2010 at SNDT campus in Juhu. More than 30 organizations which are directly involved with the special needs of these hapless children have been invited to this major event. Over 1500 visitors comprising parents. students.N.e. sensitize teachers in normal schools about children with special needs and accelerate the pace of inclusive education and enhance the knowledge base about the subject among the experts and develop viable tools and strategies to help such children. Efforts are being made to benefit a large majority of such children from the Tarang initiative. decision makers and other important people will grace the event. book distributors /book publishers and pharmaceutical companies will display their products and services. promote Special Education as a career option among the youth.As part of its ongoing Reliance Anil Dhirubhai Group CSR initiatives. Reliance Communications has partnered with S. teachers.

This event will give differently-enabled children an opportunity. Around 450 special children from various special schools across Mumbai will be competing in various events like singing. It will also create awareness about the scope of Special Education as a career option. 16 . painting etc. dancing.Education can come together and share their opportunity/skill sets. to mingle with children with different disabilities.

35 per cent) 85. The Indian telecom industry is growing at the fastest pace in the world and India is projected to be the second largest telecom market globally by 2010.65 per cent) 282.STRATEGIC AUDIT Environmental APPRAISAL Strategic Environment Market Definition and size Today. Upcoming services such as 3G and WiMax will help to further augment the growth rate. there are more than 225 million telecom subscribers in India.32 17 .08 Million (66.50 per cent 564.23 Million (33.89 157. 67 million new subscribers are added.89 per cent 70. Snapshot for the Indian telecom industry for the quarter ended March 2011: Data as on 31st March 2011 Telecom Subscribers (Wireless +Wireline) Total Subscribers per cent change over the previous quarter Urban Subscribers Rural Subscribers Market share of Private Operators Market share of PSU Operators Teledensity Urban Teledensity 846. A conducive business environment is also created by a favourable regulatory regime. India’s demographic outlook makes it one of the largest markets in the world. which is close to 19 per cent presently. Every month.11 per cent 14. the Indian economy is slated to sustain its 7-9 per cent growth rate in the near future. Furthermore. This is supported by the political stability that the country is experiencing currently. There exists enormous business potential for telecom companies on account of the country’s low teledensity.32 Million 7.

59 Million 7.90 per cent 538.39 per cent 82.816.89 Million US$ 9.68 Million 6.04 Million Rural Subscribers 8.64 Million 5.97 per cent) (25.58 Million 3.03 per cent) 17.16 per cent 18 .29 per cent 11.37 Million (86.73 miillion -1.03 per cent (74.61 per cent 2.70 per cent) 698.787.01 per cent 11.00 per cent US$ 6.Rural Teledensity Wireless Subscribers Total Wireless Subscribers per cent change over the previous quarter Urban Subscribers Rural Subscribers GSM Subscribers CDMA Subscribers Market share of Private Operators Market share of PSU Operators Teledensity Urban Teledensity Rural Teledensity Wireline Subscribers Total Wireline Subscribers per cent change over the previous quarter Urban Subscribers 26.54 Million (33.95 per cent) 88.05 Million (66.79 811.05 per cent) 113.75 34.05 per cent 18.04 0.30 per cent) 273.33 Million 19.91 7.22 Million (13.26 1.67 Million 5.06 32.99 per cent 67.69 Million Market share of Private Operators Market share of PSU Operators Teledensity Urban Teledensity Rural Teledensity Village Public Telephones (VPT) Public Call Office (PCO) Internet & Broadband Subscribers Total Internet Subscribers per cent change over the previous quarter Broadband Subscribers Telecom Financial Data (for the QE Mar11) Gross Revenue during the quarter per cent change in GR over the previous quarter Share of Public sector undertaking's in GR Adjusted Gross Revenue (AGR) per cent change in AGR over the previous 33.98 150.

The number of telephone subscribers in India increased from 787. registering a sequential growth of 7. This reflects year-onyear (Y-O-Y) growth of 36.89 billion during 2009-10 and is expected to increase to US$ 3 billion in 2010-11. The success of the Indian telecommunications sector has become the cynosure of the world and has made the country a truly attractive investment destination.3 million at the end of March 2011.quarter ARPU for Access Services Market Growth Rs 100 The opening of the telecom sector to the foreign investors has not only led to rapid growth in subscriber base but also helped a great deal towards maximization of consumer benefits.3 million in Dec 2010 to 846.36 billion in 2008-09 to US$ 2. The overall Teledensity in India has reached 70.Presently India has one of the lowest tariffs and one of the fastest growing teIecom markets in the world. Exports of telecom has also increased from US$ 2.5 per cent over the previous quarter as against 8.2 per cent over the same quarter of last year. 19 . particularly in terms of price discovery following the moderate approach in tariffs.8 per cent during the quarter ending December 2010.9 as on 31st March 2011.

3 per cent in quarter ending December 2010 to 6.9 at the end of March 2011.2 per cent in the previous quarter. With 59.3 per cent in total subscription from 33 per cent at the end of December 2010.3 per cent.9. Rural subscription increased from 259.8. About 61. total wireless (GSM+CDMA) subscriber base registered a growth of 7. Internet subscribers increased from 18.6 million at the end of March 2011.3.5 million at the end of Dec-10 to 564. bringing down the wireline teledensity from 2.9 per cent. and the rural teledensity increased from 31. 20 .9 per cent in quarter ending March 2011.6 per cent in quarter ending March 2011. Wireline subscriber base further declined from 35.9 to 157.8 per cent of the total Internet subscriber base.7 million at the end of March 2011. registering a quarterly growth rate of 5.4 million net additions during the quarter. It declined from 9.2 to 33.2 to 67.9 at the end of December 2010 to 2. Wireless teledensity increased from 63.1 million at the end of December 10 to 34. taking the urban teledensity from 147.7 million at the end of December 2010 to 19.1 million at the end of March 2011. Top 10 ISPs together hold 94.9 per cent over the previous quarter and increased from 752.9 per cent of the total net additions have been in urban areas as compared to 63. The year-on-year (Y-O-Y) growth over the same quarter of last year is 38.9 per cent in December 2010 to 8.8 million to 282.2 million.7 million at the end of March 2011. The share of rural subscribers has increased to 33. Rural subscription recorded a decline in rate of growth during the quarter.Subscription in urban areas grew from 527.2 million at the end of December 2010 to 811. Rate of growth for urban subscription also declined from 8.

234. Pass-through charges accounted for 30. There has been an increase of 6.8 per cent respectively.1 per cent and 22.76 billion respectively. Assessing the Dynamics of the Environment Turbulence Level Changeability Complexity Familiarity of 2 3 21 . The quarterly and the year-on-year (Y-O-Y) growth rates of pass-through charges for quarter ending March 2011 are 8. Share of Broadband subscription in total Internet subscription increased from 58. Gross Revenue (GR) and Adjusted Gross Revenue (AGR) of Telecom Sector for the quarter ending March 2011 has been US$ 9. registering a quarterly growth of 8. 86.9 million at the end of March 2011.77 crore and in 2011 a further drop made it stand at 12614.8 per cent of the GR for the quarter ending March 2011.4 per cent in March 2011.2 per cent in GR and AGR respectively as compared to previous quarter.2 per cent respectively. The year on year (Y-O-Y) growth in GR and ARG over the same quarter in last year has been 13 per cent and 9.Number of Broadband subscribers increased from 10.5 per cent. Market Share The market share of Reliance Communications has been seen to be declining. The Revenue in 2009 stood at 19. In 2010 it dropped to 16009.79.1 per cent of the Broadband subscribers are using Digital Subscriber Line (DSL) technology.02 crore at the close of the previous financial year.1 per cent and 5.2 per cent and Y-O-Y growth of 35.9 million at the end of December 2010 to 11.77 billion and US$ 6.8 per cent in December 2010 to 60.

but these connections have cost their reputation.Events Rapidity of Predictibility Change Visibility of Futute 3 4 General Environment PESTEL ANALYSIS Political Future The Ambani image has taken a beating. a unit of Reliance Communication Ltd. This could spell serious trouble for the Reliance communication Chairman and other bigwigs of the company Sociocultural Future The company in order to better its image has initiated ventures in a variety of social development programmes related to education and particularly e learning of English language by the masses. They are known for their political connections. was used as a front company by Reliance Telecom. Legal Future The Comptroller and Auditor General found that the 2G spectrum allocation had caused a loss of 01. One plank of the Central Bureau of Investigation’s (CBI’s) criminal conspiracy charge in the 2G scam is that Swan Telecom. brand name and investor confidence. to illegally apply for telecom licences in 2007 A sum of 900 crore issued by Reliance Communications in favour of Swan Telecom has been identified.76 lakh crore to the government. 22 .

the social initiatives may benefit Reliance to a certain extent. The inflation has driven prices to the roof and in such times consumer does not have much disposable income to spend on communication Technological Future The technology being employed by Reliance Communication at present is current. but there are fears that this time round the country is not even ready for a crisis of much lesser magnitude.Sincce the 11th five year plan talks about inclusive growth from every direction. India weathered the 2008 crisis well. 23 . Morever the inflation has pushed up the intrest rates and exchange rates too are quite high. Reliance Communication was the first company in India to issue bills in braille for visually impaired customers. persistently high inflation and policy inertia have considerably weakened the Indian government's position today. Environment Future Although Reliance Group has made endeavours for energy management systems and in the field of energy use and environment conservation but as such Reliance Communication is not involved in any environment campaigns. Also. Reliance Group is running a programme called Tarang for the mentally challenged children and it has been quite a success. telecom infrastructure. Economic future Weak finances. Globalcom and DTH and IPTV etc and other Tech services by leveraging internal IT development capabilities. let alone a full-blown debt default in Europe or a possible US recession. The company has come in the 3G spectrum and moved into a host of other interne related products and services like wireless.

Bharti Airtel. S P Shukla. said existing players had the crucial time-advantage. This would hamper their efforts to provide quality services. Importantly. Reliance Communications (RCom) President-Wireless. 1. compared with 900 MHz used by existing players. And existing service providers were well placed to provide this. Arun Gupta.Task Environment Porter’s Five Forces Model Threat from new entrants. Loop Telecom. Etisalat DB Telecom India and S-Tel are planning to launch services.Brand loyalty As many as six new licencees. while existing players were already providing 2. 2. so the people are not so much aware of such companies and they would continue to stick to the brand which they have been getting the services. which started operations in 1999. 4.” said Media Tek India Technology’s director. as new entrants would take time to build a quality network and infrastructure. RCom. Aircel. Shyam Sistema.800 MHz spectrum. is also considered a new player. Bargaining Power of customer 24 . 3.5 G services using 900 MHz spectrum. including Unitech Wireless. it will not affect existing players.Ease in distribution and quality service-the new entrants would have to operate on the less-efficient 1. business development.Economies of scale“While competition for the new operators is tough. as consumers always move towards a multidevice lifestyle. Vodafone-Essar and state-owned BSNL and MTNL are the existing players.Strong Capital base CDMA majors like Tata Teleservices Ltd (under the Tata DoCoMo brand) and RCom have rolled out GSM services and existing players like Idea Cellular are expanding operations. as it had got additional licences. and the appetite for content and communication is growing.

It will also enhance the company's competitive advantage in attracting new subscribers RCom already operates a GSM network. that seeks to extend its next generation. We have a little table which reflected the percentage of dropped calls that subscribers faced across various operators. RCom had some 31.500 subscribers Bargaining Power of Suppliers The current network expansion undertaken by Reliance is the largest wireless network expansion undertaken by any operator across the world. Huawei will supply and provide services for CDMA & GSM base stations. The latest article has actual operator specific numbers(As of January 16th) Reliance GSM and CDMA combined lost over 13. integrated (wireless and 25 . It stated that Reliance and Loop faced the highest percentage of dropped calls. including BSC (Base Station Controller) and switches. it isn’t necessary that the same trend may carry over to the rest of the country as some local factors could influence it.Under the agreement. and though clever use of CDMA licenses has become the country's largest CDMA operator.3 million CDMA subscribers at the end of September along with 5 million GSM customers. but the numbers are worth looking at. and it is presumed will seek to undercut the GSM service when its national network is ready. The technology provided by Huawei is expected to bring down Reliance Communications' total cost of ownership (TCO) by enabling a significantly faster and more cost-effective expansion of existing CDMA & GSM network services.The contract will play a significant role in Reliance Communications' planned roll out of its pan-India CDMA and GSM network expansion.Mobile Number Portability has brought a big solution to those aiming to change their service provider but to keeping the same no was the main issue especially for the businessman . According to figures from the Mobile World. The company's CDMA network has been engaged in a sharp price war with the GSM operators. and help to create first class all-IP Next Generation Network infrastructure.

1Mbps in 62 cities.000 crore.there is no way to exit. All 9 telecom firms qualify for 3G auction.500 crore for all-India 3G spectrum. We rolled out CDMA mobile broadband network offering Internet speed up to 3. Our market leadership in the CDMA space combined with our recent entry into pan-India GSM service gives us an opportunity to aggressively pursue revenue growth. The industry continues to remain challenging with hypercompetition. A major shift seems to be happening on the use of multiple SIM phones as its popularity continues to rise rapidly.000 villages creating India's largest telecom network. Competitor in themarket Extent of exit barriers.000 towns and 600. As the cult of multiple 26 . the bid could be much higher as the number of operators in the fray outweighs the number of slots available. and will add another 63 cities within the next 100 days. Though the government had fixed a reserve prices of Rs. we shall aggressively expand our GSM network and CDMA mobile broadband network. data and video) digital network to over 20. if one takes into account only the reserve price. Competitive structure of industry As we move into the next round of our success journey.The government could garner at least about Rs. and is expected to continue for few more quarters. saddled with high customer acquisition costs with exuberant trade schemes in the mobile industry. we continue to see some select tariff changes from the competition in the industry. 20. We shall be having a renewed focus on customer-centric innovations and enhancing the overall Customer Experience.wire-line) convergent (voice. as this business requires huge investment and reliance is one among those who has such a huge paid up capital to take risk associated in the telecom sector where scenario is quite versatile and company requires huge capital back up to stand against those contingencies. Amount of fixed cost fixed cost is quite high and when all 9 telecom sector went for 3G auction. As the company move into the new fiscal year. 3. taking the total number of cities covered to 125 offering Reliance Netconnect Broadband+ service.

Co-operative Environment Anil Ambani-promoted Reliance Communications (RCom).SIMs grows. for ex-Reliance SMART GSM service. some of the prevalent per user KPIs like ARPU. The contract is an annualised one and is slated to come up for renewal shortly. Bigadda.a 67:33 JV between Alcatel Lucent and RCom. though after using 6months most of subscribers are back to their previous operator. For the first time. NO COMPETITION from other operators in this field. the Anil Ambani flagship is looking to hand over operations. Facebook. Huawei and Sweden's Ericsson.so from different value added services we can see options available to the public. are getting relatively less relevant in the industry. planning. Online marketing – Tata Docomo doing the job better than even Virgin Mobile !! They are present on Orkut. and as subscriber base increases. Threat to new substitute Various new schemes makes things possible for public to look for substitute and alternatives in terms of plans and switching to other service provider. the country's second-largest mobile phone company by customers. is in advanced talks to ink a near $1. maintenance and management of its country-wide CDMA and GSM networks to a cluster of vendors as opposed to a single entity. during its relaunching in Kolkata offered all local calls @ 35p/min for 6months and got a huge response.5-billion. Docomo’s ‘per second pulse’ offer doesn’t make most of my friends excited. you will face more problems as seen with Aircel & Reliance GSM!! another instance. multi-vendor managed services outsourcing deal with a clutch of telecom gearmakers such as China's ZTE. MoU/Sub etc.RCom's mobile networks have for the past three years been managed by Alcatel Lucent Managed Solutions . 27 . New GSM operators are unable to offer a robust network at first. Twitter and different telecom based forums.

Bharti Airtel. airwaves.Over the years. or 3G. The networks of all leading mobile phone firms in the country . a concept pioneered by Bharti Airtel. has been the low-cost. high-volume business model employed by most mobile phone companies in India. Tata Tele. Even new entrants such as Unitech Wireless (Uninor). Loop and SistemaShyam have outsourced the management and maintenance of their networks to foreign vendors. since RCom's networks have become more complex. everywhere in Pune City through Wireless Broadband Network • • • 28 . who did not wish to be named. "Talks are on with some of the biggest global telecoms gear makers since the objective is to scale up the quality of network management operations by several notches to enhance the quality of services. Finland-based Nokia Siemens. AlcatelLucent or Chinese players such as Huawei and ZTE. multi-year managed services execution model. an executive directly aware of the development. it is actively considering migration to a multi-vendor. reliance comm. Vodafone. especially. involving cross-vendor technologies and equipment. They also did not Reliance Communications ties up with Cisco to launch Business Internet Services for SMEs in Pune • • Reliance Communications Bundled Offering aimed at promoting IT adoption by Small and Medium Enterprises Ties up with Cisco to offer single window IT solutions for SMEs and reduce entry costs Offerings do not require any capital expenditure Available anywhere. after the company won third generation. and Idea .are being managed by either Ericsson." said another executive. Outsourcing key operational functions. RCom executives declined to respond to ET's specific email query on whether Alcatel-Lucent will be compensated if the company's managed network services contract is not renewed.

eBizNET helped RelCom in developing and deploying an IT solution for the extended supply chain – from OEMs in Korea to the end customer Meeting Market Demands with Robust Distribution Solution for Reliance CommunicationsAccelerated Business Growth with eBizNET . RelCom initiated development of an optic fiber network covering 116.000 villages. 110 City Distribution Centers and over 2000 POSSerial No.Reliance Communications. The launch of Reliance Business Internet Services. As part of an ambitious project to create an overarching digital infrastructure. India's largest integrated telecom service provider and Cisco Systems. 2. developed and implemented a distribution solution within a record time of 50 days. eBizNET conceptualized. is a composite bundled suite aimed at fuelling IT adoption by SMEs by considerably reducing the high entry costs. Tracking of handsets required .000 km and providing revolutionary data. multi-site and multi-user capability and was preferred over SAP WM 29 .from OEM to end customer Business processes not fully defined – extensible system required to swiftly map new processes Macro management & micro information requirements – extensive MIS reporting. To meet the requirement in short span of time. The highly scalable and robust solution carried multicompany. video and value-added services across 640. Inc TM eBizNET SOLUTION BENEFITS BUSINESS VALUE Leveraging domain expertise in supply chain and distribution network. the worldwide leader in networking have joined hands to launch Reliance Business Internet Services for Small and Medium Enterprises in Pune. The mammoth and complex project required a highly robust supply chain.WMS Solution for Alpha Comm Enterprises.500 towns and cities of India. enabled by the state-of-the-art Wireless Broadband Network recently deployed by the company. Other concerns being faced in creating the distribution network were: No existing System Highly scalable supply chain needed to meet the peaks in market demandSystem to handle 2000 concurrent users across 37 Regional warehouses.

Track and Trace with POD. POS Order Management and Channel Inventory Status as part of solution scope. Reports & Performance Monitoring. through our own capacities or through partnerships with leading global vendors. per circle. in keeping with globally evolving technologies and standards. Any new partnership demonstrates this business ethic as well as our ongoing growth in the Indian market. Though specific deal details are not available. An Interface Manager was built to integrate with various Host comment on whether RCom would exit the Alcatel-Lucent JV in case the company opts for a new set of global vendors. the highly user configurable. scalable and extensible solution covered Pre-Airport Operations. As post implementation. Airport Receipt & Dispatch to Warehouse. "RCom continually explores all options to improve its network and services. The latest discussions come barely three months after RCom lost two frontline executives in charge of networks. A full functionality WMS with PDT support and ability to handle complex reverse logistics was incorporated in the solution." said one of the executives quoted above. Arun Sur and Jagbir Singh. respectively. It is independent of our existing business partnerships. Ranked among top 3 out of 22 systems being utilized at RelCom. two people familiar with the talks said the multi-year managed services contract could be benchmarked at roughly $20 million a year. systems – SAP.and other Tier 1 systems." an RCom spokesman said in a written response to ET's email query. to ZTE and Bharti Airtel. over 250 executives were trained in a short span of 2 weeks and a 24x7 help desk was setup for providing continued 30 . Status information was available on every handset from the time it left OEM till it reached a customer. Warehouse Management. "The final size of a multi-vendor managed services deal of this scale could exceed billion dollars by a long shot since it will involve a long-term tenure. Selectica & Clarify along with standard interfaces made available for data exchange with host systems.

Rcom-radio (Rcom) had Netherlands Netherlands signed worldwide.Formal cooperative links Formal cooperative linkages can take many business forms but are usually bounded together by some form of legal contract And some of those legal forms of collaboration of RCOM with other companies are listed below.solution support. which includes regularly updated international news. (Source: Business Standard Date: 18. would offer 24/7 live streaming of radio Netherlands worldwide and will show case its RNW WAp news feed on R world. which helped reliance communication to achieve economies of scale and to come up with tools and products in market at the right time.2011 Edition: New Delhi Page No. : 02) 31 . the customer base further increased to 6 million in the span of 10 months post launch. an worldwide agreement the deal: with Reliance broadcast Rworld . RelCom launched Reliance IndiaMobile Services and created history by signing up over 1 million subscribers in just 10 weeks of launch from 111 cities thus capturing nearly 60% of the incremental post-paid market or 25% of the total postpaid segment. from Rcom. Later. Global view of inventory. sales and receivables across the distribution network enabling better access and control on the supply chain Extensive reporting capabilities and performance monitoring Ability to trace individual handset anywhere in the distribution network Seamless integration of supply chain headquarter with all host systems High operational efficiency After the implementation of eBizNET Distribution Solution.the communication company mobile radio portal Under agreement. Analysing The Cooperative Environment Four Links Model A.02.

and GetJar. the world’s second largest app store announced today a strategic alliance between the two companies. founder and CEO of GetJar.” “Our agreement with Reliance Communications allows it to immediately connect its customers with over 65. In India where mobile phones have become an important part of everyone’s livelihood the country is adding more mobile phone subscribers each month than any other.” said Ilja Laurs. GetJar will offer Reliance Communications its extensive catalog of over 65. GetJar will also enable RCOM to offer its Apps Store to a large bandwidth of mobile handsets across multiple brands and not remain restricted to a few high-end smartphones. Head – VAS. Reliance Communications will offer the GetJar Apps Store across GSM and CDMA networks. “open” application catalog “Our provider to with address GetJar virtually means any that device all being used by our customers.” said Mr. easy and scalable distribution channel RCOM will be able to leverage in order to generate traffic to its network. entertainment and productivity applications. partnership Reliance Communications customers will instantly have access to thousands of applications ranging from games.000 free applications with very little effort. INDIA – APRIL 27. “We wanted to partner with the largest. 2010 – Reliance Communications (BSE: RCOM). MUMBAI.000 free mobile applications. Anil Pande. GetJar averages nearly two million downloads per day globally. GetJar is the most cost effective. According to this alliance. Reliance Communication’s over 100 million subscribers will gain immediate access to GetJar’s massive library of applications via a GetJar apps store through RCOM’s VAS platform RWorld. India’s largest and only telecom operator offering nationwide CDMA and GSM mobile services. “It made a great deal of sense to partner with India’s largest integrated communication service 32 . most experienced.Reliance Communications signs strategic alliance with GetJar to create India’s largest and free mobile Apps Store. shopping and lifestyle applications to sports. Reliance Communications. As the world’s largest independent app store. With over 300% growth year-on-year.

Following the alliance with GetJar. The enabler of enhanced data usage is possible when a key element is given away for free. The GetJar alliance is part of RCOM’s strategy to offer a comprehensive Apps Store service that will include its white-field Apps store RWorld2. This will be the immediate upside to its strategic alliance with GetJar.” Reliance and Communications customers Popular will have access as to thousands of free applications through Reliance applications ranging from games. open app store approach including Sprint. The RCOM – Nokia alliance will aim to foster greater use 33 . Sony Ericsson. apps such Facebook® Mobile. We are very excited to offer our catalog of Communications’ R-World platform. Fandango and eBuddy can be easily downloaded to over 2300 handsets across all major platforms. sports. RCOM will offer the service at 50 paise per MB of usage. social networking. The Carphone Warehouse and Virgin Mobile France.0 and GetJar’s third party service offering over 65. Yahoo!.000 mobile applications in all.provider as GetJar is also the fourth most visited mobile site in India. RCOM & Nokia join hands for a first-of-its-kind multi-faceted business partnership: Reliance communications India’s largest integrated telecom operator and Nokia India today jointly announced a first-of-its-kind multifaceted business alliance. The application download and use by itself will be free of cost. Reliance Communications joins a list of leading global companies using GetJar’s flexible. entertainment productivity applications. The free applications in RCOM’s Apps Store strategy will help achieve mass mobile data plan adoption and mobile internet use. increase in data plan adoption and sale of other services through the use of free applications. 3UK. RCOM application store strategy is directly linked to increase in data traffic.

The two companies will jointly create an enabling environment to address the information gaps in rural & semi-urban India by making available Ovi Life Tools for Reliance users. Mobile Music has become increasingly popular among the Indian consumers. Education Entertainment targeted consumers will be an integral component of this RCOM & Nokia alliance. Subscription and Pay per Use. While the Subscription Service for education and entertainment services will be offered at Rs. RCOM GSM customers can download music upto 12GB data usage (approximately 2400 songs) from Nokia’s breakthrough music service – Ovi Music Unlimited (OMU) using Nokia’s OMU- 34 . Making available Ovi Life Tools services targeted at the rural and semi-urban segments for Reliance customers 2. data and services offerings in India. To make it easier for consumers. The RCOM–Nokia partnership is structured on a one-of-its-kind blue-print to engage with the Indian consumes to offer an array of unmatched & innovative mobile. Ovi Life Tools. According to some estimates close to 40% young people prefer to listen to music on their mobile phones.3/Request. The Payper-Use will be priced at Rs. Nokia 5800. Reliance will offer Ovi Life Tools services in two versions. giving consumers an opportunity to get richer experiences and do more with their phones. The alliance covers – 1. Nokia X6 16 GB.30/Month and the agriculture service at Rs. Nokia X6 8 GB and Nokia 5235 – for faster music downloads * An exclusive offer on Reliance Netconnect Broadband + USB Datacards on the purchase of NokiaOMUenablephones 3. a range and of innovative and personalized at both services urban covering and rural Agriculture. The business partnership with Nokia is in line with the multitude of innovations lined-up by the two companies to take mobility to the next level. Special data packages for Nokia GPRS phones (other than OMU-enabled devices). Exclusive offers on Ovi Music Unlimited (OMU) devices – including Nokia 5530.60/Month.of mobile services.

B. The jointly developed offering will extend affordable. to introduce world's first wireless.2GB on Nokia GPRS enabled handsets (other than the OMU-enabled phones). India’s largest and only telecom operator offering nationwide CDMA and GSM mobile services.enabled phones including Nokia 5530. media & entertainment. Bundling the easy-to-use Polycom QDX 6000™ video conferencing system with dedicated VPN connectivity through the Reliance Netconnect Broadband+ wireless broadband data card. the service significantly lowers the price barrier to adopting video conferencing and is expected to be a mass enabler of video conferencing usage across multiple industry verticals inIndia. Collaboration link with complementors Reliance Communications and Polycom Forge Partnership To Jointly Drive Market Opportunities in India: Mumbai . The service will be marketed through Reliance ADA Group's retail arm. 1999/. event management. Nokia X6 8 GB and Nokia 5235. 2010: Reliance Communications (BSE: RCOM). plug-and-play video conferencing to organizations of all sizes. Besides small and medium enterprises (SMEs). enabling them to realize immediate productivity and efficiency benefits from real-time. and hospitality are among the sectors likely to take advantage of the flexible and affordable video conferencing service developed by Reliance and Polycom.March 17.along with the purchase of Nokia OMU-enabled devices. has forged a partnership with Polycom Inc. RCOM is also offering mobile data bundle of 1. RCOM is offering up to 1800 free on-net minutes bundled with Nokia 1800. Nokia X6 16 GB. 35 . Nokia 5800. face-to-face visual communication. video and voice solutions. These free voice minutes and mobile data bundles has a validity of six months. As part of this alliance. Consumers can also purchase Reliance Netconnect Broadband+ Datacards at an exclusive price of Rs. (Nasdaq: PLCM). In addition. education. high-resolution video conferencing service. the global leader in tele-presence. Reliance Webstore Limited.

integrated.000 route kilometers of fibre optic cable systems.Reliance Webstore Limited already offers wired video conferencing services to over 1500 corporate clients through its network of over 200 video conference suites at Reliance World stores across the country. Commenting on its partnership with Polycom. along with simple-to-use content sharing capabilities – even at a bandwidth of 256 kbps. Reliance Webstore Limited said. next generation.” The Polycom QDX 6000 video conferencing system delivers high-resolution video and CD-quality audio. Although mobile broadband exists in many markets. India is the first country in the world to deliver a wireless video conferencing service. Reliance Communications’ extensive pan-India. Through our alliance with Polycom. Through our partnership with Reliance Communications. Customers of the wireless video conferencing service will be able to connect to any industry standards-based video conferencing system. The service will be expanded to more cities in a phased manner. Vice President and Managing Director. even family events like weddings. said. This network is capable of supporting best-of-class services spanning the entire 36 . Polycom sees that visual communications will be ubiquitous within two to three years. Using this service. Director & CEO. Polycom Asia Pacific. Mr Sarup Chowdhary.” Leveraging Reliance Webstore's extensive retail reach. Mr Hansjoerg Wagner. The Wireless Video Conferencing service will ride on Reliance Communications’ telecom infrastructure backbone. “Reliance World operates the world's largest network of video conferencing suites. we are making video conferencing a simple plug-and-play operation that can be deployed and used virtually anytime. parties and ceremonies can be webcast live by event managers on a pay-per-use basis. and our relationships with other leading vendors in the Unified Communications ecosystem. the service is being commercially rolled out in over 40 Indian cities. anywhere. anywhere in the world. convergent digital network spans over 190. “The wireless video conferencing solution jointly developed by Polycom and Reliance is truly a unique innovation on a global scale. The wireless nature of the service also makes it suitable for out-of-office events.

”universal has catalogues of 300000 tracks and it will be offered to the customers called simply. Intel has teamed up with Reliance Communications (RCom) and Asus to accelerate broadband penetration. While the deal let universal make money by sharing its digital library Rcom will get share of the revenue as subscriber use the offerings. which is where the Asus X101 Meego powered netbook comes in. Rcom said investment would be made by both the parties to offer 360 degree music experience to customer across all plat form including voice. ROB Intel collaborates with Asus and RCom for affordable computing: While broadband Internet has spread far and wide in our country. ivr . WAp. ( source : Business Standard Date : 05. Informal cooperative linkages 37 . senior vice president digital universal music group international. : 03). video streaming.communications value chain. Universal music has got in to an exclusive partnership agreement with reliance communication: to provide its catalogue of music on the operators plat form and develop other music related properties. In order to reduce that. Additionally we will have music concerts in India and with 3g rollout users will have access to this live concert “said WELL. Subscriber of the service will access to music down loads.blog and through on ground events. They hope to accomplish this by offering affordable computing devices. web. which is still in the dark.08. there’s a sizable population. C.2010 Edition: Mumbai Page No. live concerts and ring tone on 3g mobile phones when this services will fully operated in the country.

To this end. Sr. Mumbai for creating a resource hub aimed at promoting education among physically and mentally challenged children.T Women's University. Speaking on the occasion.We is sure that our joint efforts will benefit thousands of physically and mentally challenged children and inspire other organizations to contribute their best. Mumbai on February 11. 2010. “We are glad to partner with SNDT Women’s University in this noble cause. This will be the first time in Mumbai that such an event is being planned.D.” 38 . Reliance ADA Group CSR remarked. Taranga 2010 is a curtain raiser endeavoring to increase sensitivity of the society toward children with special needs. Reliance Communications has partnered with S. helplines etc. We shall be providing the technical inputs on the subject as well as necessary tools to create the platform for the knowledge sharing i. the two are jointly organizing Tarang 2010 at SNDT campus in Juhu. promote Special Education as a career option among the youth. 2010 : As part of its ongoing Reliance Anil Dhirubhai Group CSR initiatives.N. February 11. sensitize teachers in normal schools about children with special needs and accelerate the pace of inclusive education and enhance the knowledge base about the subject among the experts and develop viable tools and strategies to help such children. More than 30 organizations which are directly involved with the special needs of these hapless children have been invited to this major event.These are cooperative links and network occasions which Rcom link for a mutual or common purpose without legally binding contractual relationship and some of the following are among from those relationships RCOM Partners With SNDT Women's University • • • • To jointly promote education among challenged children To create resource hub Sponsors ‘Tarang 2010’ First ever initiative in Mumbai Mumbai. Vice President.e. Krishnan S Kumar.

The CSCs are meant to provide high quality and cost effective video. private With a Entertainment services. in the areas and about of E-Governance. voice and data content. the event. Government of India proposes to facilitate the establishment of a net work of more than 100.Tarang 2010 will be attended by most of the renowned special schools in Mumbai and Navi Mumbai. and technologies. equipment companies. D. Efforts are being made to benefit a large majority of such children from the Tarang initiative.000 internet enabled Information and Communication Technology (ICT) access points termed as Common Services Centres (CSC). Health. Over 1500 visitors comprising parents. Cooperation link with government The Department of Information Technology (DIT). and students. large and government through modern The goal of the CSC Project is to empower the rural community and to bring heterogeneous geographical area. teachers. This fair will provide a platform where all the stake holders relating to disabilities/ Special Education can come together and share their opportunity/skill sets. and therapy parents other of special students. other social change Education. the private and civil society sectors are expected to play an active role in development and implementation of the CSC Project in supplementing the Governments' efforts to realize its vision for the project. There is a ‘special’ fair being organized as the first of a series of events. will book special grace educators. distributors publishers and pharmaceutical companies will display their products and The national education policy is laying emphasis on inclusive education – wherein children with special needs have to be integrated into the mainstream educational system. It will also create awareness about the scope of Special Education as a career option. /book decision makers important people Educational services. Tele-medicine. policy makers. 39 .

capable of making economies of scale.Continuum of International Industry Reliance Comm. low acceptance of products and temporary usage so long as the scheme continues. Reliance Comm Product Line Breath STRATEGIC ADVANTAGE PROFILE (SAP) A picture of the more critical areas which can have a relationship of the strategic posture of the firm in the future. Vodafone. MTNL Tata docomo. Price Airtel BSNL. excellent -parts & components available. Capability Factors Factors Direction Competitive strengths / Weakness Finance Marketing Operational Personnel High cost of capital. Global Multi Domestic Mapping Strategic Groups Idea. reserves & surplus required and high initial cost. customer grievances and high load on personnel to work in this extensive selling scenario 40 . quality of service is poor. Late market entry for GSM mobile services. company position insecure. Fierce competition. Quality of management & personnel not par with competition.

Competitors` Vulnerabilities Threat 1.New Market 4.Lack Opportunity 1.Branding Image 2.Vertical& Horizontal Integration 5.Market Demand 4. IT Development 3.Fast Activation Process 4.Network 5. Entry in GSM market 5.General High Quality experienced top management take reactive stance instead of proactive approach.Number Portability Service PROBLEM BEING FACED Lack of communication between retailers and distributor Consumer switching to other networkseasily with the help of Number Portability services Lack of improper distribution channel All retailers are not aware of new scheme of RCOM Lack of effective sales promotion and advertisement Retailer doesn’t get claim at proper time No visit of TSM or any other person to the retailer’s shop WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE PROBLEM Customer Satisfaction Retailer Satisfaction 41 . Commission Structure 1. SWOT Analysis of Reliance Communication Ltd. Strength 3.New Specialist Application 2.Quality of service 1.Low Entry Cost 2. Distribution problem 3.New Entrants 2.Rural Telephony 3.Data GPRS Weakness of Competitive Strengt 4.

integrated (wireless and wireline).Increase in Sale Sales Promotion Proper Distribution Channel Also entry into the GSM market meant that now consumers can switch network provider if they are dissatisfied as was not the case with CDMA where the switching cost for subscriber was high because of the network provider’s handset that they had to buy. 42 . Reliance Communications owns and operates the world’s largest next generation IP enabled connectivity infrastructure.77. Middle East and the Asia Pacific region. Europe. next generation. were now at liberty to shift to other networks as was not the case with CDMA where subscriber had to stick with Reliance Communication despite unsatisfactory services.000 towns and 600. convergent (voice.000 villages. ORGANISATIONAL APPRAISAL A. the subscribers which it acquired with GSM because of low pricing. comprising over 2. data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain. covering over 24.000 kilometers of fibre optic cable systems in India. USA. With consistently poor quality of service delivery. INTERNAL ANALYSIS (1) Value chain Analysis Step 1 – Activity Analysis Reliance Communications has established a pan-India.

Step 3.00 0. Hubs opened everywhere along with retail shops catering to the rural areas.50 2.87 16.16 -Mar '10 Mar '09 43 .66 20.75 5.09 239.63 65.91 21.84 5. Mar '11 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital 5.00 0.18 4.users report that the network has deteriorated over time Ease of Payment – Online payment facility available.04 58. Communication network needs to be upgraded to deal with an increased traffic so that service level does not go down (2) Quantitative analysis Financial.85 10.Ratio Analysis Key Financial Ratios of Reliance Communications Ltd.03 -5.67 233.00 0.03 34.Step 2 Value Analysis Continuous service.80 25.34 73.77 --Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) 12.82 0.85 0.Evaluate Changes and Plan for Action.

29 2.70 0.59 4.70 30.65 5.45 2.77 -6.33 1.84 1.26 233.65 0.46 1.84 Management Efficiency Ratios Debtors Turnover Ratio Investments Turnover Ratio 7.26 -2.44 2.33 3.14 0.16 0.32 3.48 2.36 0.47 4.47 30.00 -5.57 250.60 0.Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds (%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio 2.34 1.44 Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax 1.03 -1.80 9.33 244.66 244.57 -4.60 5.40 1.48 0.38 1.94 -2.70 20.39 2.97 0.32 2.43 5.43 250.81 0.12 6.09 12.12 0.66 2.37 2.12 20.74 5.41 233.42 41.72 -- 44 .20 11.63 8.78 1.18 39.

37 -4.23 -5.71 10.47 23.02 2. The current ratio of the company has improved it is 1.19 -5.43 The operating profit for the year is 421.30 259.08 9.38 --0.16 0. The profit and loss account shows decreasing trend from the year 2008-09 till date.57 73.20 -3.12 9.99) crores means loss of 757.26 0.99 crores.27 117.53 --7.59 -0. This difference is because of amount of depreciation charged which is 2.67 233.68 0.27 250.48 43.36 38.63 286.84 and ideally it should be 2.89crores. 45 .62crores.73 -83. Where as the reported net profit is (-757.855.51 2.89 6.66 4.03 0.32 244.Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times Earnings Per Share Book Value -0.76 386.86 85.48 94.15 0.26 42.

(3) Qualitative Analysis Corporate culture They put customer first at all times. ’The company ranks among the Top 4 Telecom companies in the world by number of customers in a single country. regional and domestic carriers. Reliance Communications 742 So we see that Reliance Communications ranks 742nd out of 2000 of the world’s best companies.17 crores to 484. Debt-equity ratio of the company is 0.455.20 crores which is less than what was paid last year (175.26 Rs. The book value of the share is 233.44) crores.25 crores.65 which means that against each rupee of an equity there is a debt of 65 paisa. 46 . and built long term relationship with them.81 which good and also it is very close to current ratio which means that it’s assets are highly liquid in nature. Non financial qualitative analysis Market Ranking ‘The Forbes Global 2000’ companies. Total equity dividend paid in current year is 103. Sales turnover shows about 10% decrease from the last year so as the net sale also The income from other sources has decreased from 2.Quick ratio is 1.100 Indian and multinational corporations. According to the company’s Annual report 2010-11. Total expenditure is same as compared to ladt year but the income has declined. Reliance Communications corporate clientele includes 2. and over 800 global.

70 Name Bharti Airtel Vodafone Tata Comm Idea Cellular Market Cap.80 9. They try to approach every endeavour with zeal & an attitude towards excellence B.90 3.25 297.20 94.) 150.) 38.18 47 .) 1400 797 162.015.222.009.00 15.625.389.335.00 187.10 24239.46 22.067.56 154.77 Sales Turnover (Rs.097. Cr.310.80 37. They strive to operate with honesty and integrity interpretation all their dealings.20 31.They believe in interpretation and keep every commitment that they make. They seek to treat every individual with dignity and respect. cr.1 56. (Rs. COMPARITIVE ANALYSIS (1) Benchmarking Last Price 395.00 Net Profit Total (in Cr) Assets(in Cr.888.38 145.409.8 5.

21 80. Net worth and Net Profit to such an extent that the company has had huge losses in the previous financial year ie 2010-11.22 14.000 0 Year Year ' Year '09 10 '11 Net Profit (in Cr) Revenue (Rs.908.99) (-1099. The increase in subscribers can be attributed to the expansion in the company’s market because of the introduction of a host of new internet based services.597.17 79.275.90 1.24 11.30 3.70 30.000 20.036.234.23 (-757.TataTeleservice Reliance Communications MTNL 17.19 3.128.000 Net Worth (in Cr) Net Worth (in Mn) Year Year Year '09 '10 '11 Revenue (Rs.05 83.102.989.90 3. Mn) 25.000 50.72 17.000 48.17 (2) Historical Analysis Subscibers(in Mn) 150 100 50 0 Year '09 Year '10 Year '11 6000 4000 2000 0 Subscibers(in Mn) 52.000 15.841.000 5.000 46. Mn) Net Profit (in Cr) Year '09 Year '10 Year '11 -2000 The graphs show a decreasing trend in terms of Revenue.000 10. (C) COMPREHENSIVE ANALYSIS Balanced Score Card Perspec Objectives tive Measures 48 .5) 4.

to offer services that span the entire communication value chain – infrastructure. applications and consulting. integrated (wireless and wire-line) and convergent (Voice. Employee Self Service. Internal Process Perspective Learning and Growth Perspective Corporate citizenship Social measures HUMAN CAPITAL Learning and Growth Perspective Learning and Growth Perspective INFORMA TIONAL CAPITAL ORGANISA TIONAL CAPITAL hiring world-class talent and supporting them with an enabling organisational framework.Financial Perspective Customer Perspective Increase market share and size extensively Retain and attract new customers Penetration of every segment of all markets related to communication Expansion in scope of services provided Providing low cost and establishing a nationwide. the employee invigorating physical work settings acquiring skills to solve specific challenging assignments and career problems but also expanding opportunities minds to address problems and opportunities which have not become apparent building a non-hierarchical and open work environment work culture marked by positive energy. Continuing personal development is the constant obligation of all employees and constant responsibility of all Executives. We are introducing several progressive and employee friendly HR practices in e-HR. data and video) digital network. team work and performance Customer centricity Developing initiative and attitude of ownership Entrepreneur &Stretch 49 . Organisational Expansion Increasing the scope of services Employee data tracking Crafting marketing Strategy Developing cross functional linkages LEADERSHIP & CORPORATE CULTURE selfhelp and guidance to foster common purpose and cohesion respect for the development of Promoting result-driven meritocracy. Managers and Supervisors. services for enterprises and individuals. 360° Feedback and Leadership Development initiatives. Performance Management System. Integration of work force Social benefit programs for education etc Invested in 50. high capacity.000 person training days and state-of-the-art e-learning facilities.

CDMA mobile. Within a span of five years it has become one of the largest public sector unit in India. Comp a-ny Year of esta blish ment Company profile Global Presence/ Marketing network Acqui sition s/ Strat egic Allian ces Future Prospect BSNL 2000 MTNL 1986 Bharat Sanchar Nigam Ltd. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Broadband. (UTL) in collaboration with Telecom Consultants India 50 . IN Services etc.Competitors and Competitive Strategy Competitor analysis in strategic management is an assessment of the strengths and weaknesses of current and potential competitors. MPLS-VPN. Profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation. MTNL was set up by the Government of India to upgrade the quality of telecom services. GSM Mobile. monitoring and adjustment. implementation. Internet. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline. Carrier service. In this project we analysis the competitor of Reliance Communication to identify their strengths and weaknesses of current potential. introduce new services and to raise revenue for telecom development needs of India. VSAT.s key It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections BSNL plans to expand its customer base from present 47 millions lines to 125 million lines and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16. VoIP services.67 million) in the next three years MTNL has formed a Joint Venture company in Nepal by the name of United Telecom Ltd. expand the telecom network.

Mahanagar Telephone Mauritius Limited. MTNL with a market share of about 13% of the National telecom Network has a customer base of 5. MTNL has set up its 100% subsidiary .92 million. switches. submarine cable systems. for USD 130 million in 2005 Bharti Telecom and British The company plans to expand its wholesale voices services across the EU. and value added service nodes to provide a range of basic and value added services and has a dedicated work force of about 2000 employees. Kolkata and Chennai Limited (TCIL) in 2001 for providing WLL based basic services in Nepal. of India currently holds 56. (MTML) in Mauritius. The Govt. for providing basic. The company operates a network of earth stations. submari ne cable system. New Delhi. 1995 for promoting investments in The mobile business provides mobile & fixed wireless services VSNL acquired Nasdaqlisted Teleglob e Internati onal Holdings Ltd for $239 million in 2005 Videsh Sanchar Nigam Ltd acquired Tyco Global Network. The company is also offering flexible agreements and charging methods to meet the growing demands of the wholesale voice market Bharti Airtel company is planning to set up 3000 more towers 51 . VSNL is adding its capacity to meet the overwhelming demand for connectivity to India in the wholesale voice services domain.a wholly Government owned corporation. mobile and international long distance The company has 52 subsidiaries in 21 countries as well as operations across four continents Bharti airtel 1985 Bharti Tele-Ventures Limited was incorporated on July 7. VSNL's main gateway centers are located at Mumbai. to effectively enable enterprise customers and retail voice carriers to connect to India.25% stake in the company VSNL 1986 The Videsh Sanchar Nigam Limited (VSNL) .metros.

Middle Telecom formed a 51%:49 % joint venture. in 1998 Bharti TeleVentures acquired an effective 32. Bharti BT Internet for providin g Internet services. Europe. This portal leverages the Reliance Communications has IP-enabled connectivity infrastructure comprising over 150. Bharti’s operations are broadly handled by two companies: the Mobility group and the Infotel group using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities Relianc 1999 e Commu nication s Reliance Telecom's cellular services are available in 340 towns within its eight-circle footprint. FLAG Teleco m as part of enhancing their rural coverage and will now focus on rural and semi-urban areas 52 .000 kilometers of fiber-optic cable systems in India. Reliance Infocomm also offered for the first time in India. the US. the cellular services provider in Karnatak a and Andhra Pradesh circles in 1999 Internati onal wholesa le telecom municat ions service provider .telecommunications services. mobile data services though its RWorld mobile portal.36% equity interest in Bharti Mobile (formerly JTMobil es). Its subsidiaries operate telecom services across India.

calling card services and enterprise services. Wi-Fi Internet. Karnataka. Punjab. Maharashtra. and has paid Rs. In Vodafone Essar in India is 2007 a subsidiary of hutchis Vodafone Group Plc and son commenced essar operations in 1994 when has its predecessor been Hutchison Telecom East. group calling. Rajasthan.co m (India) Limited [now renamed Tata Teleserv ices (Mahara shtra) Limited] in 2002 The company is also expanding its footprint.000 shops and thousand of hutch’s 53 .3 million shareholders.Tata teleservi ces vodafon e data capability of the CDMA 1X network. amalga mates with Relianc e Gatewa y. roaming. Public Booth Telephony and Wireline services. Delhi. Reliance Infocomm offers a complete range of telecom services covering mobile and fixed line telephony including broadband.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime Vodafone Essar is expecting to touch over 35 million customers across 400. and the Asia Pacific region. Tamil Nadu. Chennai. Kerala. Mumbai. Madhya Pradesh and West Bengal It has operations in 25 countries across 5 continents and 40 partner networks with over 200 million Tata Teleserv ices has acquired Hughes Tele. 1996 Tata Teleservices is a part of the $12 billion Tata Group. Kolkata. data cards. Uttar Pradesh (E). Uttar Pradesh (W). 4. over 200. which has 93 companies. national and international long distance services.000 employees and more than 2. Haryana. Gujarat. Bihar. data services and a wide range of value added services and applications aimed at enhancing productivity of enterprises and individuals. Himachal Pradesh. Tata Teleservices’ bouquet of telephony services includes Mobile services. Orissa. USB Modem. a wholly owned subsidi ary of Relianc e Infocom m in 2004 Tata Teleservices has presence in across 19 circles that includes Andhra Pradesh. Wireless Desktop Phones. 3-way conferencing. Other services include value added services like voice portal. post-paid Internet services.

for Mumbai. Chart showing different style and technique.78 million customers. 17 million. Haryana. Vodafone Essar. thereby acquiring which is India's IDEA original license for the first truly Cellular has Andhra multinational operations Pradesh Circle corporation. UP(W) & per cent in Haryana. license for the Madhya per cent. has been named the 'Most Respected Telecom Company'. 2001 In cent. it will also look at international long distance in the near future. Group.9 per Pradesh. Birla Gujarat. Pradesh.5 per cent. avenues selected to get maximum share growth in the market to compete other players in the market. Grasim Madhya 2004 acquired Escotel. Kerala Idea. and new licensee in Himachal HP Acquired Escorts Pradesh Telecommunications and Kerala. the 'Best Mobile Service in the country' and Idea Cellular is Has a Merged with Tata part of the customer Cellular Limited in Aditya Birla base of over 2001. smaller base transmission stations that will mean lesser infrastructure requirements and expenses and independent tower operators. under the Hutch brand. in Delhi. Acquired RPG Cellular Aditya Birla Maharashtr Limited Nuvo Ltd.7 Goa. UPWest.1 Uttaranchal. incumbent cellular and Hindalco Chattisgarh. and consequently the holds 35. sharing cell sites.taken over by vodafo ne idea 1995 acquired the cellular customers licence worldwide. service provider in 10. 44. Along with its plan to go for a national long distance licence. 54 . 7. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base. Other advancements in the telecom industry will help it cut costs . with over 45.use of email to send bills to customers. Pradesh (including TMT Holdings Andhra Chattisgarh) Circlein Ltd. Idea also plans to enter rural and neglected circles as a strategy to gain subscribers. a. Limited (subsequently renamed as Idea Telecommunications Limited) in 2006 own employees along with employees of its business associates.

India’s largest Cable TV service provider. cinema.000 crore (US$ 11 billion) deal to create the world’s largest independent telecom infrastructure company. R-Com shall continue to own India’s largest optic fibre network of over 190. IPTV. and its subsidiary. by over 2 million shareholders of Reliance Communication and the minority shareholders of Reliance Infratel.25.000 towers and over 1. etc. leading to substantial reduction of its consolidated net debt and improved leverage ratios which in turn would. through: → Cash infusion to Reliance Communication. In the last quarter.Let me now share the operational performance of our wireless business.In a major transformational move. that are rapidly becoming an integral part of consumers’ daily lives. the Boards of Reliance Communications. unlocking of value. communication and entertainment solutions.000 local cable operators to offer world-class digital TV entertainment and ultra-high speed broadband experience in over 100 mn Indian homes. TV and computer screens. 50. However. In another important and game changing strategy. Tata Teleservices. S Tel. This acquisition is in line with our ‘4-screen strategy’ to own the mobile. Aircel. This new venture is set to leverage combined strength of Reliance’s fully integrated telecom infrastructure and 10. neither owned nor controlled by any telecom operator. Reliance Infratel and GTL Infrastructure have in-principle approved a Rs. and → The receipt of free listed shares of the merged entity.000 Rkms and related assets presently. This would enable their continued participation in future prospects of the high growth telecom infrastructure sector. MTS. diversified multi-product company that offers true world-class convergence of information. It is aligned with our vision to be an innovative.000 tenancies from over 10 telecom operators such as Reliance Communications. the new subscriber This merger will lead to substantial 55 . the Board of Directors of Reliance Communications approved a proposal to acquire Digicable. and retail broadband businesses along with Digicable acquisition will catapult Reliance Communication to becoming Asia’s largest and the world’s 5th largest digital TV and ultra high-speed broadband service provider. Integration of Reliance Communication’s DTH. The merged entity will have over 80.This deal will be implemented through a demerger of the tower business including Reliance Infratel’s tower assets into GTL Infrastructure. Vodafone. contribute to enhanced financial flexibility.

Reliance Communication is clearly focused on building a 'healthy portfolio mix'. On the CDMA front. 4. This will go a long way in laying the foundation for a sustained profitable revenue growth. Now we are at par with the industry players through a well executed strategy of focusing on 'quality of the customers' and the usage. RCOM’s RPM was lower than other industry players by 8-10 p/min. The fat reduction is almost 50% in Q1 and as a consequence. The above results bear out the strategy that customers love the simplicity in tariffs. it has driven quarterly growth in the “paid MOU”. These actions also reinforce the thought behind the launch of “Simply Reliance” with its three variants where we had indicated that Reliance Communication is not creating a downside risk on its RPM through these plans. Three quarters back. through driving profitable Data and VAS businesses thereby future proofing the business against voice led growth alone. For the last 3 quarters. Delhi and 56 . With 3G services and focus on Mumbai. They have succeeded in consolidating the RPM (rate per minute) in Q1 at 44 p / min. They are the largest Indian player in Data services. widest and deepest footprint of 3G enabled data services in the country in the coming quarters.acquisitions have maintained a steady pace. have nationwide coverage for 1x data services and now we cover more than 65 towns for our High Speed Data services. Both these segments of Data and VAS are growing at a healthy double digits rate. to attract high-end usage segment. We remain bullish on the prospects of CDMA being further leveraged increasingly more for data and voice applications due to its unique capabilities. as shown in the number of people who have migrated and stayed on the plan. 1. During the period.199 crore. Reliance Communications saw modest revenue growth in an extremely low discounted tariffs market with quarterly revenues at Rs. The customer response to the unlimited offerings has been encouraging. We will continue this focus and are set to have the largest.153 crore and EBITDA of Rs. Towards this. to leverage the expanse of network. they have taken steps to induce discipline in minutes usage by trying to reduce 'free minutes' (also known as 'fat' in the industry) and focusing on building 'paid minutes usage'. they introduced another ground-breaking “Simply Unlimited CDMA Offer”. The Global market is also moving in the same direction in terms of the We already portfolio mix. we have been focusing on the quality of the customers and have been driving growth through segmented circle and cluster level activities. despite reduction of RPM for the industry key players in the last 3 quarters.

Celebrity brand ambassadors 4.High brand visibility and MTNL 5.Strong advertising with celebrity brand ambassadors.Ability to attract customers with various plans 5.Largest Telecom operator in the world with 207.61 million subscribers at the end of April 2011 BSNL and MTNL 2.Service centre issues 3.Network and handset quality not up to the competition By comparing the strengths and weaknesses of airtel with reliance we can say that the competition position of reliance and what are their opportunities and threats.Flexible plans BSNL and MTNL Comm. In this stage we can see that airtel’s strengths are stronger than reliance and it is the largest service provider in India and with the strong advertising and largest Telecom operator in the world.Good advertising 2. Opportunities Airtel 1. with over 1. Reliance Communication has many competitors because telecommunication industry is a very big industry in India.Latest and low cost technology Threats 1. with VSNL.8 million 2. that has an international submarine cable 4. Data and VAS would continue to drive the Company’s Wireless business growth going forward.Kolkata like metros.High brand visibility 3.Untapped Rural Market 4.Price competition from 164. Aircel and so on.Only Indian operator.Fast expanding cellular market 2. 1. New entrant's low price offering 57 .Price Higher than BSNL 4.Untapped Rural Market 3. which includes Airtel.Largest cellular service provider in India. Vodafone . Strengths Airtel Weakness 1.Service centre issues subscribers across 19 countries at the end of 2010 3.Price Higher than BSNL and MTNL 5.Price competition from Reliance 1. 2. In term of weaknesses both of them their prices are higher than BSNL and MTNL and both of them have service centre issues and they are untapped Rural Market.

Untapped rural market 2. The company’s involvement in 2G scam made the Brand image even worse. CONCLUSION The Reliance Company’s focus was mainly focussed on promotion and not on Quality. They should come up with a new zest in the market and should brand themselves anew.Saturation point in Basic telephony service 3. The strategy that the company shold follow should be focussed on improving internal processes and Quality of service and checking unethical practices. New entrant's low price offering 2. The result was huge losses that the company incurred in 2011. Fast expanding cellular market 2.3.Untapped rural market Reliance Comm 1. 58 .Latest and low cost technology 3.Mobile Number Portability In term of opportunities and threats almost both of them are similar but we can say that because of airtel strengths is strong than reliance so it can use from opportunities more than reliance. Saturation point in Basic telephony service 3. In conclusion I can say that in the comparing this two company airtel is stronger than reliance and by the analysis of strengths and weaknesses of both company we understood the position of them and by analysis of opportunities and weaknesses we understood the situation of them. So we see unethical practices and poor services lead to a loss in trust and goodwill in the market.Mobile Number Portability 1.