3g Market in Delhi Corporate Space - Scope of Reliance Communications in the Delhi Gsm Corporate...

A REPORT ON

3G MARKET IN DELHI CORPORATE SPACE - SCOPE OF RELIANCE COMMUNICATIONS IN

THE DELHI GSM CORPORATE SPACE

By:

Himanshu Manchanda

11BSP1948

RELIANCE COMMUNICATION LIMITED

SUMMER INTERNSHIP PROJECT REPORT -13

A REPORT ON

3G MARKET IN DELHI CORPORATE SPACE- SCOPE OF RELIANCE COMMUNICATIONS IN THE DELHI GSM

CORPORATE SPACE

By:

Himanshu Manchanda

11BSP1948

RELIANCE COMMUNICATIONS LIMITED

A report submitted in partial fulfillment of the requirements of PGPM Program of IBS Gurgaon

Distribution List: i) IBS Gurgaon

ii) Reliance Communications

Date of Submission: June14, 2012


AUTHORIZATIONAUTHORIZATION

It is to hereby acknowledge that Himanshu Manchanda is a bonafide student of IBS-Gurgaon (PGPM 2011-13). He has successfully completed his summer internship program at Reliance Communications limited, Maharaja Ranjit Singh Marg. All the contents in this report are reproduced with prior consent from the company.

This report is submitted as partial fulfillment of the requirement of PGPM program at IBS-Gurgaon.

1


ACKNOWLEDGEMENTSACKNOWLEDGEMENTS

Through this report, I take the opportunity to express my sincere gratitude to all those who have helped me in making my training at Reliance Communications Ltd. (Delhi circle), a success.

First of all I would like to thank the academic fraternity at, IBS Gurgaon, for having such a system in place, where students are given opportunities to learn about their areas of interest, as part of training and internship programs.

I would like to thank my faculty guide PROF. EKTA RANI CHAUHAN, Faculty Member IBS, Gurgaon, without whom it would not been possible for me to undergo training at Reliance Communications Ltd. Her regular guidance and help has given shape to my project and evolved it to its current being. She has been a source of inspiration and motivated me to perform to the best of my abilities.

I express my deepest sense of gratitude towards MR. RISHI SABHARWAL, my guide and mentor at Reliance Communications Ltd, for taking time out of his busy schedule and helping me, in every possible way, to proceed with my work. He has been a constant help throughout the project and an impartial leader. I would like to thank him for his selfless help and cooperation at every step.

Furthermore I wish to extend a warm gratitude to MR. MAYANK PAINULY, for helping me throughout the summer internship program and providing me with wonderful insights which helped me in understanding the business as a whole. He has been extremely warm and kind hearted.

At last, I would like to thank all the TEAM MEMBERS of the office, who had contributed in completion of the project. I acknowledge their efforts in making me understand the various business functions at Reliance Communications Ltd and their guidance for developing the deliverables to the organization.


TABLE OF CONTENTSTABLE OF CONTENTS

Authorization 3

Acknowledgements 4

Executive Summary 7

Abstract 8

List of Figures 9

List of Tables 11

List of Abbreviations 12

1. Introduction 1.1 Background 131.2 Purpose & scope 141.3 Objective 141.4 Methodology 151.5 Limitations of the study 16

2. Industry2.1 Introduction 172.2 Market structure 192.3 Competition in the market 202.4 Major players in Indian market 37

3. Report Organization3.1 Introduction 413.2 Business mix 453.3 Hierarchy of Reliance Communications 463.4 Corporate Wireless Group 473.5 Reliance SWOT analysis 48


4. 3G services4.1 Evolution of 3G 544.2 3G uses & features 564.3 Advantages of 3G 594.4 3G Vs HSDPA 614.5 Availability of 3G in India 63

5. Delhi telecom market analysis5.1 Susbcriberbase in Delhi 695.2 Major players in Delhi 3G market 835.3 Comparison of tariff plans 835.4 SWOT Analysis of major players 855.5 3G for Business 895.6 Scope in Delhi corporate space 91

6. GSM Services6.1 Evolution of GSM 966.2 World GSM Scenario 1006.3 GSM market analysis 1016.3 Trends of GSM market 1066.4 Network and Customer related parameters 1076.5 Service provider wise growth in Delhi 1086.6 Key statistics & Market Share of Delhi 110

7. Data analysis and Interpretation7.1 Data Interpretation 1157.2 Findings 1337.3 Conclusion 1357.4 Recommendations 136

8. References 139


EEXECUTIVE XECUTIVE SUMMARYSUMMARY

The Indian mobile market has undergone a revolutionary change over the past few years to become one of the leading mobile markets on the global map. Easy availability of low-priced devices, better network coverage and affordable services are some of the major factors that have boosted its growth and will continue to do the same in future. According to a research report the number of 3G mobile subscribers is expected to grow at a CAGR of around 80% between 2011 and 2013 to around 55 Million by the end of the period.

This research provides in-depth analysis of the various factors and issues that will play an important role in the 3G & GSM market in corporate sector of Delhi. The sector chosen is particularly 3G & GSM cellular service in Delhi Corporate space. Research have also focused on understanding the market share of various 3G & GSM operators, different tariff plans that Corporate customers prefer to avail, average call rates Corporates look for, extent to the usage of 3G/Internet and other features like application download and Video conferencing. It also throws light on factors influencing buying decision that makes Corporates stick to any particular operator over a period of time. This research will give a broad scope for Reliance marketers & product managers to promote & design 3G & GSM services in such a way that it has competitive edge over others. It will help in developing strategies that can be used to formulate sales plans. It would support how corporate Customer’s loyalty can be gained through effective 3G & GSM cellular services & which attributes needs to be given the top most priorities. It will give deeper insight to Reliance marketers about how to modify service features on timely basis that can best fit to their target market and design the product in such a way that it is able to differentiate from rest of the market players.


ABSTRACTABSTRACT

In today’s business environment the world is shrinking rapidly. Companies now are not restricted by boundaries of countries. Technology is the main driving factor behind this emergence of a closely knit business world. The need for faster communication and decision making is gaining immense importance. Moreover, easier access to the web has been very effective for the companies as well as its employees. In this emerging conquest for highly customized products, there has been a growing demand for efficient tools for processing the products and its related documents. All functions – such as sales, marketing, manufacturing, service, and even human resources affect not only the bottom line but also a company’s financial integrity.

The main aim of this project is to understand the various functions of marketing division in the day to day business activities in the telecom sector. It also aims to identify the concern areas after an in-depth Analysis of the company’s Sales operations and recommend solutions for the same. It stresses on analyzing the key aspects of sales & marketing like corporate consumer buying behavior patterns and revenue generation. It requires integration of various parameters needed to analyze the possibilities in corporate sector. It mainly focuses on increasing the corporate customer base of GSM and 3G in the region of Delhi. It also takes a step forward by looking into various strategies adopted by Reliance Communications to generate high revenue by increasing sales in corporate sector.


LIST OF FIGURESLIST OF FIGURES

S.NOS.NO CONTENTSCONTENTS PAGE NO.PAGE NO.

11 Top 10 countries with mobile subscribersTop 10 countries with mobile subscribers 1818

22 Market share in IndiaMarket share in India 2020

33 Service providers share in net additions Service providers share in net additions 2222

44 Subscribes for wireless services in metrosSubscribes for wireless services in metros 2424

55 Market share of top 5 ISP in IndiaMarket share of top 5 ISP in India 2525

66 Growth of subscriber base 2000 to 2010Growth of subscriber base 2000 to 2010 2626

77 Trend in Teledensity Trend in Teledensity 2828

88 Trend in wireless subscribersTrend in wireless subscribers 2929

99 Trend in wireline subscribersTrend in wireline subscribers 3030

1010 Trend of Internet subscribers in IndiaTrend of Internet subscribers in India 3131

1111 Revenues of telecom service providers in IndiaRevenues of telecom service providers in India 3434

1212 Market share of GSM operators in IndiaMarket share of GSM operators in India 3535

1313 Market share of CDMA operators in IndiaMarket share of CDMA operators in India 3636

1414 Top 10 CDMA operators in the worldTop 10 CDMA operators in the world 4343

1616 Business Mix of Reliance CommunicationsBusiness Mix of Reliance Communications 4545

1717 3G uses and Features3G uses and Features 5656

1818 Availability of 3G in IndiaAvailability of 3G in India 6363

1919 Wireline and wireless subscribers in DelhiWireline and wireless subscribers in Delhi 6969

2020 Market share in Delhi Market share in Delhi 7171

2121 Trend of telecom subscribers in Delhi and NCRTrend of telecom subscribers in Delhi and NCR 7373


2222 Service provider wise growth trend in DelhiService provider wise growth trend in Delhi 7474

2323 Applications of 3G for BusinessApplications of 3G for Business 8888

2424 Growth of establishments in DelhiGrowth of establishments in Delhi 9191

2525 Market share of corporate establishments in DelhiMarket share of corporate establishments in Delhi 9292

2626 Employment Dist. in Delhi Corporate establishmentsEmployment Dist. in Delhi Corporate establishments 9494

2727 Top gsm operators in worldTop gsm operators in world 100100

2828 Proportion of GSM subscribers circle wiseProportion of GSM subscribers circle wise 101101

2929 Market share of GSM operators in the IndiaMarket share of GSM operators in the India 102102

3030 5 year trend in GSM subscribers5 year trend in GSM subscribers 106106

3131 Service provider wise growth in Delhi Service provider wise growth in Delhi 110110

3232 GSM market share in Delhi GSM market share in Delhi 112112


LIST OF TABLESLIST OF TABLES

S.NOS.NO CONTENTSCONTENTS PAGE NO.PAGE NO.

11 Wireless subscribers added & growth rateWireless subscribers added & growth rate 2323

22 Trend in subscriber base of wireless ServicesTrend in subscriber base of wireless Services 2727

33 Service provider wise switching capacityService provider wise switching capacity 3232

44 Mobile Number Portability in IndiaMobile Number Portability in India 3333

55 Telecom operators in Delhi, Haryana, UP (E & W)Telecom operators in Delhi, Haryana, UP (E & W) 6868

66 Cellular phone subscribers in Delhi and NCRCellular phone subscribers in Delhi and NCR 7070

77 MNP in Delhi and NCRMNP in Delhi and NCR 7272

88 Profile of Bharti AirtelProfile of Bharti Airtel 7575

99 Profile of RelianceProfile of Reliance 7878

1010 Profile of VodafoneProfile of Vodafone 8080

1111 Comparison of Tariff plansComparison of Tariff plans 8383

1212 Timeline of development of GSMTimeline of development of GSM 9797

1313 Outgoing traffic patterns GSMOutgoing traffic patterns GSM 103103

1414 MOU & SMS Patterns GSMMOU & SMS Patterns GSM 104104

1515 ARPU of GSM operatorsARPU of GSM operators 105105

1616 Trends of key parameters GSMTrends of key parameters GSM 107107

1717 Network related parametersNetwork related parameters 108108

1818 Customer service related parametersCustomer service related parameters 109109

1919 Service area wise stats of subscribersService area wise stats of subscribers 113113


LIST OF ABBREVATIONSLIST OF ABBREVATIONS

ABBREVATIONABBREVATION MEANING OF ABBREAVATIONMEANING OF ABBREAVATION

COCPCOCP Corporate on Company PaidCorporate on Company Paid

EOEPEOEP Employee on Employee PaidEmployee on Employee Paid

MDNMDN Mobile directory NumberMobile directory Number

RSDRSD Regional Service NumberRegional Service Number

CSACSA Corporate Sales AssociateCorporate Sales Associate

CWGCWG Corporate Wireless GroupCorporate Wireless Group

KAMKAM Key Account ManagerKey Account Manager

CAFCAF Customer Application FormCustomer Application Form

CDMACDMA Code Code DDiivviisisioonn MMuullttiippllee AcAccceessss

GSMGSM Global System for Mobile CommunicationGlobal System for Mobile Communication

FWPFWP Fixed Wireless PhoneFixed Wireless Phone

HSDHSD High Speed Data CardHigh Speed Data Card

MISMIS Management Information SystemManagement Information System

GSKGSK GSM Startup KitGSM Startup Kit

AVAV Address VerificationAddress Verification

FWTFWT Fixed Wireless TerminalFixed Wireless Terminal

ARPUARPU Average Revenue per UserAverage Revenue per User

MNPMNP Mobile Number PortabilityMobile Number Portability

MOUMOU Minutes of UsageMinutes of Usage

FWTFWT Fixed Wireless TerminalFixed Wireless Terminal


ININTTRROODDUUCCTTIIOONN

BACKGROUND

India like many other countries of the world has adopted a gradual approach to telecom sector reforms through selective privatization and managed competition in different segments of the telecom market.

To begin with, India introduced private competition in value added services in 1992 followed by opening up of cellular and basic services area to private competition. The Telecom Regulatory Authority of India (TRAI) was constituted in 1997 as an independent regulator in this sector. Competition was also introduced in national long distance (NLD) and international long distance (ILD) telephony at the start of that current decade.

Despite asymmetry in initial market endowments between public sector incumbents and private operators, the act of opening up of the market unleashed dynamism that was hitherto latent in the sector.

Three types of players now exist in ' Telecom Industry India ' community –

State owned companies like - BSNL and MTNL.

Private Indian owned companies like - Reliance communications and Tata

Teleservices.

Foreign invested companies like – Vodafone, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc.

The Indian mobile service market is filled with eighteen to twenty players operating in each of the 23 telecom circles that country n divided into. While the Delhi telecom space is highly competitive with 9 telecom service providers which will be operating in 3 different service areas CDMA, GSM & 3G. There are 7 players in GSM services, while 4 players are operating in CDMA space and 3 players in 3G services. The intensity of competition has increased in recent months following the launch of 3G services by Airtel, Reliance & Vodafone in Delhi telecom space.


3G services shows huge potential in Delhi corporate space where the demand for 3G & other Tele-services such as GSM is high, Corporates are heavy users of telecom services and Delhi corporate space is growing rapidly which makes corporate clients most attractive for telecom service providers.

PURPOSE AND SCOPE

The main purpose of this project is to understand the various verticals of Sales & Marketing function at Reliance Communications. An in-depth analysis of the corporate clients was done based on the primary data available, in order to gain insights into the corporate consumers buying behavior patterns. Based on these patterns further studies were conducted to develop revenue generating Sales models for the company.

This project helped me in gaining insights about how a telecom firm is dealing with the existing price war, declining revenues and increasing competition. It is an opportunity for me to be a part of the corporate world. Further, it will also help in reaching my objective of understanding and analyzing the telecom industry as a whole.

The scope for doing this project is limited to the geographic boundaries of Delhi and the data that is available while conducting the studies. The resources available are utilized to the optimum. It will help me to understand the highly competitive environment and means of tackling the surmounting pressure over the telecom sector.

OBJECTIVE

The project has following objectives:

To analyze the buying behavior of corporate clients and to formulate selling plans based on the analyzed patterns.

Analyze reasons for customer attrition and finding solutions to the impending problems.

To make logical and practically feasible suggestions in order to make improvements in the selling system thereby making it swift, effective and more profitable.


METHODOLOGY

RESEARCH DESIGN:

A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The survey research was used in this project, because consumer’s feedback was necessary for obtaining the data.

DATA SOURCE:

Primary Data was collected by the questionnaire based market survey.

Secondary Data was obtained from journals, magazines, newspapers, books and the internet.

RESEARCH INSTRUMENT:

For doing this survey research, structured Questionnaire with close ended questions was used.

MODE OF SURVEY:

The mode of survey was personal interview with the respondents during the filling up of the questionnaires.

SAMPLING:

The sampling used for this study was probability sampling since the study is only meant for certain specific categories within the total population (corporates, in this case), a stratified random sample was used.


SAMPLE SIZE:

A sample size of 50 Respondents is used for the study.

SAMPLING UNIT:

This study is basically an opinion survey of the corporates of Delhi who are heavy users, about the 3G & GSM Services.

PLACE OF STUDY:

Delhi

LIMITATIONS OF THE STUDY:

There is a possibility of respondents’ bias or no response bias while conducting the primary research.

The sample taken for the primary research might not be true representative of the total population.

Inadequacy of data.

Competitive analysis is majorly dependant on secondary resources of data.

Control sample might be adulterated due to word-of-mouth.


INDUSTRYINDUSTRY

INTRODUCTION

The telecom industry is one of the fastest growing industries in India. India has nearly 951 million telephone subscribers making it the second largest network in the world after China. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power).

Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.

After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.

In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions.

Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).


The GSM sector is dominated by Airtel, Vodafone, Reliance and Idea Cellular, while the CDMA sector is dominated by Reliance Communications and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry.

Mobile growth is forecasted to remain in the double digits until the end of the forecasted period, with an average growth rate of 22.8% between 2009 and the end of 2014.

At that time, mobile subscribers are forecasted to have reached 1 billion and a penetration rate of 51.8%.With over 1.1 billion inhabitants and a highly competitive telecom market, India is and will remain one of the world’s most dynamic and promising telecom markets for the next five years, even surpassing China in terms of market vitality.

China India U.S. Brazil Indonesia Russia Japan Pakistan Germany Nigeria0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

Top 10 countries with Mobile Subscribers

Source: Operator's Website, Press Release & Regulatory


MARKET STRUCTURE

Telecom reforms across the world are energizing businesses and people. Long considered a natural monopoly, recent technological developments have facilitated competition in this sector leading to increased access to telecom services and gains in efficiency and quality of service. India has emerged as an international destination for processing and distribution of information.

Availability of infrastructure for electronically transferring and assessing information are critical to maintaining the competitive advantage that it currently enjoys and embracing telecom reforms is a part of achieving that goal. Though the results of telecom reforms the world over have been positive on average, domestic political economy and institutions have impacted every country experience and India is no exception. India’s economic liberalization program began in 1991.

Aimed at raising the economy from low-growth equilibrium and putting it on a sustained growth path, these reforms targeted a wide range of sectors – from international trade to finance and infrastructure. Following these reforms, traditional sectors such as agriculture and industry that used to contribute nearly 70 per cent of the GDP now constitute an increasingly smaller share of economic output.

Simultaneously, there has been rapid growth in the service sector that now contributes nearly 48 per cent to GDP (1998) and is growing at 8 per cent per annum. Indian policy-makers also increasingly recognized the need for reforms and investment in telecommunication Infrastructure in order to realize the forecasted economic and social growth rate of the country. It has been shown that investment in telecommunications infrastructure leads to economic growth in various ways.

While telecommunication investment itself leads to growth by creating a demand for the goods and services used in their production, the economic returns on this investment are far greater than the returns from the investment alone. The multiplier effect of telecom investment on GDP is likely to be higher because of both the direct and indirect effect that this investment has on production.

However, it has also been shown that since telecommunications infrastructure is characterized by network externalities the positive growth effects of investment in this sector are subject to having achieved a critical mass in a given country’s communications infrastructure.


COMPETITION IN THE MARKET

A characteristic of telecom industry is heavy dependency on Advertisement and Promotional Strategies-Each company viz. Airtel, Vodafone, Reliance Communications, Tata Indicom and BSNL spend lots of funds on acquiring Indian movie stars and sport stars. Thus due to the cost of heavy expenditure on Advertisement the industry is more or less a very heavy revenue generating industry for a lot of other sectors.

A characteristic of this kind of Competition is the close interdependence between the different companies regarding each company’s policy decisions. These companies have to monitor each activity of its competitors and even a little ignorance can prove very costly. Like, when Reliance started the ONE-INDIA plan, Airtel, Vodafone and others also started and pushed similar plans.

Airtel; 19.60%

Reliance ; 16.70%

vodafone; 16.40%Idea; 11.90%

BSNL; 10.80%

Tata; 9.30%

Aircel; 6.90%MARKET SHARE IN INDIA (%), 2012

Source: Operator's Website, Press Release & Regulatory


There are three major players in Indian telecom sector Airtel is at top with 19.05% of market share while reliance is at second position with share in customer base of 16.7% and Vodafone is at third position with 16.4% share of customer base.

Total 7 number of telecom subscribers are analyzed where 52.7% of market share is with top three operators and the remaining 47.3% is with other four operators.

In this kind of competition the major players occupy a very high market share and these players could dictate terms for the other players but in Indian Telecom Industry all the players are very close in terms of market share so the question of dictating terms comes only when a company takes the First-mover Advantage. Then it could dictate terms for the particular time period but again the other companies are always at their heels so the question of keeping the advantage for a long time doesn’t seek in.


NET ADDTIONS DURING MARCH 2012

Source: TRAI Annual Report

In the month of march the highest customer addition is done in Bharti Airtel where 31.26% of new customers are added by Airtel on the other hand Idea is at second position with 25.15% of customer addition, Where the second top performer in subscriber base reliance communication is at fourth position with 13.04% of customer acquisition in case of new customer acquisitions in the month of April, Where Vodafone is just behind reliance with 12.81% of customer acquisition.


WIRELESS SUBSCRIBERS ADDED & GROWTH RATE IN DIFFERENT CIRCLES DURING


In the last 3 years Circle B is at top in 2 years with more than 50% of customer additions. Circle B is growing in a better way than other 2 sectors and metros.

During year 2010-11 Circle A has reported 35.87% growth where Circle B has reported 42.21% growth and Circle C has reported 40.26% of growth in the subscriber base, Where metros encounter 36.03% of growth in subscriber base.


SUSBCRIBER BASE FOR WIRELESS SERVICES IN METROS AND CIRCLES


In the trend of last 5 years Circle B is growing faster than other two sectors where Circle A and Circle C has reached to 288.43 &107.78 million subscribers respectively. The Circle B has reached highest of them all at 318.54 million subscriber base.

The highest customer base is in Circle B and lowest customer base is in Metros. The main reason behind that Circle A & metros are already saturated.


MARKET SHARE OF TOP 5 INTERNET SERVICE PROVIDERS IN INDIA

BSNL58%

MTNL12%

Reliance11%

Airtel7%

Hathway2%

Others10%

MARKET SHARE OF ISP IN INDIA


In case of Internet Service Providers (ISP) in India BSNL is at top with 58% of market share with 57.52 million customer base where MTNL is at second position with 12% of market share with 12.31 million customer base.

Reliance holds 3rd position in ISP’s in India with 11% of market share and 11.05 million of customer base. 80% of the ISP market is in the hands of these 3 ISP’s.


GROWTH OF SUBSCRIBERBASE

SUBSCRIBERS (In million)0

100

200

300

400

500

600

700

28.53 36.29 44.97 54.62 75.54 98.41140.320000000001

206.83

300.489999999999

429.72

621.280000000001

TREND IN SUSBCRIBER BASE

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010


Indian telecom shows the tremendous growth in the last 10 years the Indian telecom market has reached over the mark of 620 million customers. No other sector is growing at that high rate as telecom sector is gro

wing.

Last three years shows triple digit growth in the subscriber base in India. There is huge potential in the telecom sector because customers and increasing day by day.


TREND IN SUSBCRIBERBASE OF WIRELESS (CDMA & GSM) SERVICES


Bharti Airtel is the market leader from last 5 years with current subscriber base of 162.2 million customers where reliance is just behind Airtel with 135.72 million customer base. But in terms of growth in customer base reliance is ahead of Airtel in the financial year 2010-11 reliance customer base grows at the rate of 32.51% where Airtel has reported growth of 27.10%. On the other hand Vodafone is at third number in customer base but the rate of growth in customer is the highest in case of Vodafone 33.42%.

The highest customer base growth is reported in Aircel 48.78% and lowest is reported in MTNL 7.44%. but according to number of subscribers the top three market leaders are Airtel , reliance and Vodafone.


TREND IN TELEDENSITY IN INDIA

0

10

20

30

40

50

60

70

80

12.8618.23

26.22

36.98

52.74

70.89

TREND IN TELEDENSITY

200620072008200920102011


In last 5 years teledensity is increased rapidly, in the financial year 2011 teledensity is reported 70.89 where last year it was 52.74 in one year the growth reported is 18.15. As it is visible in the figure the teledensity is growing year by year.

In last 5 years teledensity is increased by 6 times where in year 2006 teledensity were 12.86 in year 2011 it was 70.89.


TREND IN WIRELESS SUBSCRIBER BASE IN INDIA

WIRELESS SUSBCRIBERS (In million)0

100

200

300

400

500

600

700

800

900

98.77165.11

261.07391.76

584.32

811.59

WIRELESS SUBSCRIBER BASE

200620072008200920102011


Year 2011 gives a new mark to telecom industry as wireless subscriber base has reached to new heights of 811.59 million customers which were 227.27 million users more than the base year this way wireless subscriber base is growing at the rate of 38.89%. This triple digit growth shows a huge potential in the telecom market.


TREND IN WIRELINE SUBSCRIBER BASE IN INDIA

WIRELINE SUBSCRIBERS (In million)30

32

34

36

38

40

42

44

41.5 40.7539.42

37.9636.96

34.73

WIRELINE SUBSCRIBER BASE

200620072008200920102011


In the financial year 2011 the wireline customer is decreased again and reached to 34.78 million users which are 2.23 million users below than the base year. As it is visible the wireline customer base is decreasing year on year from 41.5 million users in the financial year 2006 to 34.73 million users in year 2011 in the last years the subscriber base is decreased by 16.31% users.


TREND OF INTERNET SUBSCRIBERS IN INDIA

2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

14

16

18

20

5.596.93 7.23 7.32 7.41 7.78

1.352.34

3.87

6.22

8.77

11.89

6.94

9.2711.1

13.54

16.18

19.67INTERNET SUSBCRIBERS

NARROWBAND BROADBAND TOTALSource: TRAI Annual Report

In 2011 internet subscriber base is reached to 19.67 million users. In which broadband subscribers are 11.58 million and narrowband customers are 7.78 million, where in the last 5 years narrowband subscriber base is not increased as rapidly as broadband subscriber base has increased.


SERVICE PROVIDER WISE SWITCHING CAPACITY

Source: TRAI Annual report 2010-11

The equipped capacity and working connections of all the companies are have more or less same difference. Most of the companies currently utilizing roughly half of their equipped capacity but Airtel is an exception it is currently utilizing only one third of its equipped capacity.


MOBILE NUMBER PORTABILITY IN INDIA

Source: TRAI monthly subscription report

As per the data reported by the service providers, by the end of March 2012 about 41.88 million subscribers have submitted their requests to different service providers for porting their mobile number.

The highest number of MNP requests are from Karnataka where the lowest number of MNP requests are from J&K. where Delhi has 17,48,385 MNP requests.


REVENUES OF TELECOM SERVICE PROVIDERS IN INDIA

Airtel Bharti BSNL Idea MTNL Reliance Tata Vodafone Others0

5000

10000

15000

20000

25000

30000

35000

40000

45000

4648

38390

32045

11990

5058

14792

8737

26080

89808264

41138

29688

15789

3992

15003

11508

30123

11648

REVENUE

2009-10 2010-11

Source: TRAI Annual report

Bharti tops in the list of revenue of telecom operators with 41138 million where Reliance Communication is at 5th position with 15003 million. Both the public sector companies (BSNL & MTNL) have reported negative revenue growth, while all other companies have reported increase in revenue.


MARKET SHARE (%) OF GSM OPERATORS

Bharti22%

Vodafone19%

Idea/Spice14%

Reliance12%

BSNL12%

Aircel/ Dishnet8%

Tata6%

Unitech5%

Videocon1%

MTNL1%

S Tel0%

Loop0%

Etisalat0%

Quadrant (HFCL)0%

GSM MARKET SHARE


There are 14 telecom service providers in the GSM market where the major market is with 8 major service provider providers namely Bharti Airtel, Vodafone, Idea, Reliance, BSNL, Aircel, Tata, and Unitech. 98% of market is with these 8 major players.

The major 3 service providers who have 50% part of GSM market are Bharti Airtel, Vodafone and Idea. Bharti Airtel is at top with 22% of market share while Vodafone is behind Airtel with 19% of market share, while reliance is at fourth position with 12% of market share.


MARKET SHARE (%) OF CDMA OPERATORS

Reliance51%

Tata30%

Sistema14%

BSNL4%

MTNL0%

Quadrant (HFCL)0%

CDMA MARKET SHARE


There are 6 telecom service providers in the CDMA market where the major market is with 4 telecom service providers namely Reliance, Tata, Sistema & BSNL 99.7% of market share is with these 4 major players.

Reliance is the market leader in CDMA space with 51% of market share where Tata holds the second position with 31% of market share and Sistema holds the third position with 14% of market share.


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Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom services providers with operations in India and Sri Lanka. Bharti Airtel since its inception, has been at the fore front of technology and has pioneered several innovations in the telecom sector. The company is structured into four strategic business units – Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India and Sri Lanka. The Telemedia business provides broadband, [IPTV] and telephone services in 95 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to- end telecom solutions to corporate customers and national and international long distance services to telcos.

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group [ADAG] of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading integrated telecommunication company. Their business encompasses a complete range of telecom services covering mobile telephony and data services along with an exhaustive range of value-added services and applications. RTL(Reliance Telecom Ltd.) is one of the oldest licensees of CMSP. Its license dates back to 12.12.1995.[RTL] launched its [GSM] services during October 1997.With the merger of RISL now [RTL] is operating in 8 Telecom circles


Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, [CDMA] mobile, [GSM] Mobile, Internet, [BB], Carrier service, [MPLS]-[VPN], [VSAT], [VoIP] services etc. Presently it is one of the largest & leading public sector unit in India. [BSNL] is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide [ICT] sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country.

The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader – a position it has held since.


Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company now has operations across the country with over 85.82 million customers. Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective Advertiser of the Year’. Vodafone is the world’s leading international mobile communications group with approximately 315 million proportionate customers.

IDEA Cellular is a leading [GSM] mobile services operator in India with over 53 million subscribers, under brand IDEA. It is a pan India integrated [GSM] operator covering the entire telephony landscape of the country. A front runner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre-Paid offerings, for the first time in India, in an increasingly segmented market. From basic voice & [SMS] services to high-end value added & [GPRS] services such as Blackberry, Data card, Mobile TV, Games etc. – IDEA is seen as an innovative, customer focused brand .


BPL Mobile has had the privilege of serving the communications needs of the financial capital of India for the last 13 years. BPL Mobile has been rebranded as Loop Mobile in Mumbai. New identity, Loop Mobile, represents growth with continuity. While they constantly work towards giving their subscribers a better network, innovative products and a superior mobile telephony experience.,

Spice Telecom, the brand name of Spice Communications Limited is presently operating Cellular Phone Services in the states of Punjab and Karnataka.

A new mobile operator, with a localized approach to the Indian market. They combine the force of India’s second largest real estate company, Unitech Ltd and Norway-based Telenor, the 6th largest mobile communications group in the world. Now they are bringing their services and innovation in communications to India.


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INTRODUCTION

Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 89,000 crore (US$ 19.7 billion) , cash flows of Rs. 10,900 crore (US$ 2.8 billion), net profit of Rs. 331.6 crore.

RCOM is India’s largest integrated and fully converged communications service provider in the private sector, and has been rated among “Asia’s Top 5 Most Valuable Telecom Companies”. Reliance Communications is India's foremost and truly integrated telecommunications service provider.

The Company, with a customer base of over 153 million including over 2.5 million

individual overseas retail customers, ranks 4th among the Top 10 Telecom companies in the world by number of customers in a single country.

Reliance Communications corporate clientele includes 35,000 Indian and multinational corporations, and over 800 global, regional and domestic carriers. Reliance Communications as established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best of- class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages.

It owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.


The Reliance Communications network consists of 60,000 kilometers of optical fiber cables spanning the length and breadth of India. These cables can carry thousands of billions of bits per second and can instantly connect one part of the country with another.

This physical network and its associated infrastructure will cover over 600 cities and towns in 18 of the country's 21 circles, 229 of the nation’s 323 Long Distance Charging Areas and broadband connectivity to over 190 cities.

This infrastructure will be backed by state-of-the-art information management systems and a customer-focused organization. Reliance Communications objective is to create value for our customers.

Reliance will innovate ceaselessly so that state-of-the-art technology can be leveraged to create products and services that are affordable. Reliance has a demonstrated track record of conceptualizing, and executing complex, multi-billion dollar projects in a timely and cost effective manner.

Reliance Communications is committed to delivering products and services of world class quality to customers. It has attracted the best people in each of its businesses, by empowering people, providing attractive growth opportunities, and creating a world class working environment.

Reliance Communications believes that knowledge resides in people, and has, accordingly, always built its growth plans around people. It is a youthful enterprise, with a strong entrepreneurial spirit, fostering an environment that facilitates informality and flexibility, and emphasizes depth of planning and speed of execution.


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Source: Operator’s Website, Press Release & Regulatory

The following attributes define future leadership at Reliance Communications:

Customer centricity.

Initiative and an attitude of ownership.

Passion for excellence and an ability to energize.

Problem solving and an innovative "can do" mindset.

Entrepreneurship and stretch.

The strong underlying fundamentals of the Indian economy, and the latent demand potential in our markets, provide the platform for building world scale businesses. Reliance Communications leadership in its several businesses is centered around its ability to build world scale assets, obtaining the benefits of economies of scale, and competing on an even level with the global peer group.


Reliance Communications leverages its core competencies to create a sustainable competitive advantage in its various businesses. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life.

VISION

Reliance Communications has a vision to leverage its strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. It also aims to offer unparalleled value to create customer delight and enhance business productivity. It also focuses on generating value for their capabilities beyond Indian borders and thus enabling millions of India's knowledge workers to deliver their services globally.

KEY STATISTICS


Source: Quarterly Report of Reliance Communications

BUSINESS MIX


Source: Annual Report of Reliance Communications

It covers an entire range of products and services:

Wireless Enterprise

Tower Home

Globalcomm Other businesses


HIERARCHY OF RELIANCEHIERARCHY OF RELIANCE COMMUNICATIONSCOMMUNICATIONS

RELIANCE COMMUNICATIONS

BROADBAND WIRELESS (RIM, FWP, FWT, DATA CARDS)

CORPORATE WIRELESS

GROUP (CWG)

KEY ACCOUNT (HIGH REVENUE, CATEGORY 'A')

SME ACCOUNT ( LOW REVENUE,

CATEGORY 'B', 'C')

CORPORATE SALES

ASSOCIATES (CSA)

PERSONAL

WEBWORLD

INDIVIDUAL BUSINESS

FRANCHISE

WIRELINE


CORPORATE WIRELESS GROUPCORPORATE WIRELESS GROUP

Corporate Wireless Group (CWG) is a department of reliance communications which mainly deals with all the corporates. CWG is responsible for handling all the corporate clients of reliance and acquiring new corporate clients. CWG offer customized plans to corporates and fill their day to day requirements from telecom sector. CWG is well known in the big corporates of Delhi; currently CWG is handling all the big corporates like GE, United Spirits (Kingfisher), New Holland Fiat, NDTV & Videocon are some of the clients of CWG.

Some of the wireless products of Reliance CWG Group are:Some of the wireless products of Reliance CWG Group are:

Mobile Phones (Both CDMA & GSM)

Data Card (Both HSD & 3G)

Blackberry

FWP

FWT

These products of reliance are very popular in corporates because reliance offers customized plans according to the requirements of the corporates. CWG deals with all the corporates and offer them plans according to their needs which help reliance in acquiring more corporates by that reliance is able to acquire more high usage customers base.

Sales are also done in CWG by CSA’s (Corporate Sales Associates) the main work of CSA’s is to sell the products of RComm. They are not the internal part of the organization they act as an agent between Reliance Communication and Customers. CSA’s deals in all the products of CWG group and according to the slabs CSA got paid. This helps also CWG and Reliance in acquiring more number of customers.


SWOT ANALYSIS OF RELIANCESWOT ANALYSIS OF RELIANCE

RCOM is an integrated communications service provider in India. The company serves consumer, enterprise and carrier customers. It offers wireless, wireline, and long distance, voice, data, video and internet communication services. RCOM also participates in submarine cable network infrastructure, and owns, operates and develops telecom infrastructure, such as wireless communications sites and towers. The company's well integrated operations can prove to be a competitive advantage by allowing it to maintain control on quality of services delivery and expand its offerings. However, increasing competition may impact the company's market share in coming years.

Strengths Weakness

Well integrated operations

Robust market position

Legal proceedings

Declining ARPU could impact profitability

Opportunities Threats

Strategic collaboration with

Google

Positive outlook for Indian

telecom market

Growing DTH market in India

Increased competition in the

telecommunications industry

Regulations


StrengthsStrengths

Well integrated operations: RCOM is an integrated telecom operator in India. The company’s operations encompass wireless, wireline and long distance retail operations, data center and IT related operations, telecom infrastructure business, and retail network. It has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages and all major railway routes and highways which covers 90% of the country’s population. RCOM also owns and operates the world’s largest next generation IP enabled connectivity infrastructure, comprising over 277,000 kilometers of fiber optic cable systems in India, the US, Europe, Middle East and the Asia Pacific region.

The company’s national networks are integrated with its international networks. It has relationship with over 800 global, regional and domestic carriers capable of offering services in over 230 countries. RCOM’s managed network services are available in over 60,000 locations in over 160 countries. It also owns 22,000 kilometers of metro fiber network in the US in 14 metros allowing it to offer connectivity to these key business markets. In addition, RCOM’s consumer and SME offerings are supported by one of the extensive distribution networks in India. The company retails Netconnect products in 17,000 IT and telecom retail outlets across India as well as 2,300 exclusive Reliance Communication retail stores and nearly 240 Reliance World outlets.

The company’s infrastructure businesses are mainly handled by its subsidiaries, Reliance Globalcom and Reliance Infratel. Reliance Globalcom serves over 2,100 enterprises, 200 carriers and 2.5 million retail customers in 163 countries across six continents. RCOM’s retail and distribution reach and infrastructure base has allowed it to expand into related fields such as DTH and GSM services. The company’s established infrastructure made it the only player in India offering both GSM and CDMA services on a nationwide basis, as well as significantly reduced the capital required to establish infrastructure for launch. As of FY2011, the company had a customer base of 142 million. RCOM's integrated operations provide synergies from presence in different areas of the telecom market to launch several new services to diversify its portfolio and to have a control on quality of service delivery.


Integrated operations can prove to be a competitive advantage to the company by allowing it to maintain control on quality of services delivery and expand its offerings.

Robust market position: The Company has established itself as a significant player in the Indian telecom market. It is one of the largest private integrated telecom companies in India and the second largest wireless operator in terms of customer base with a market share of 16.9% at the end of December 2011. In addition, RCOM is the second largest wireless operator in India. Similarly, the company has 3G license in 13 circles, the highest number of circles by a single operator. It also holds 11% share of the Indian DTH market.

Moreover, RCOM is among the top 15 largest international long distance carriers with over 15 billion minutes of traffic and is the world's largest private submarine cable system owner and capacity provider. The company is also the leading NLD infrastructure provider in India. Further, RCOM is the leading enterprise services provider in India and is among the top six leader-boards of global Ethernet service providers. Robust market position provides RCOM a competitive advantage over its peers.

WeaknessesWeaknesses

Legal proceedings: The Company was involved in several legal proceedings. For instance, in December 2011, RCOM was penalized by the Department of Telecommunication (DoT) for violating the Universal Service Obligation norms. The company had unilaterally switched off mobile coverage in 12 states for more than two months under the shared mobile infrastructure policy of the Universal Service Obligation Fund in 2010. RCOM was fined an amount of INR528.8 million ($11.5 million).

Similarly, in February 2012, DoT issued show-cause notices to five private operators including Airtel, Vodafone and RCOM, for under reporting revenues, as per a special audit report, for assessment years 2006 to 2008 and penalized the company with a fine INR16,370 million ($356.9 million). It is estimated that RCOM would have to pay penalties of INR5,510 million ($120 million).

RCOM may face similar proceeding of liability in the future. Any negative outcome in such proceedings could force the company to pay heavy penalties, which would further impact its financial performance. In addition, it would dent the brand image of RCOM.


Declining ARPU could impact profitability: The Company has witnessed a decline in its average revenue per user (ARPU) in India during recent years. Despite having one of the world's lowest tariffs for local and long distance calls, RCOM continued to reduce its charges in India to cope up with the competition. As a result, the company's ARPU decreased from INR244 ($5.3) at the end of FY2009 to INR107 ($2.3) at the end of FY2011. In addition, the company had the lowest ARPU as compared to its peers like Airtel whose ARPU was INR194 ($4.2) in FY2011. Similarly, Idea Cellular had an ARPU of INR162 ($3.5), which was more than the company's ARPU.

Although, RCOM managed to register revenue growth due to new customer additions, its overall revenue growth rate and margins continued to decline. For instance, the company's operating margin declined from 20.9% in FY2009 to 2.5% in FY2011. In addition, its net profit margin declined from 26.3% to 5.8% during the same period. Declining ARPU would further put pressure on RCOM's profitability.

OpportunitiesOpportunities

Strategic collaboration with Google: In April 2012, RCOM entered into a strategic collaboration with Google to exclusively market Android devices in India over its network for the next two years. Through this strategic collaboration with Google, RCOM intends to market the Android mobile operating system and Google Mobile Services in order to promote the usage of Android devices in the country. As part of the collaboration, the company will offer an exclusive free 1GB usage per month 3G plan to all Android device users. The marketing activities will also include developing co-branded mobile applications for Android Smartphone’s and marketing campaigns promoting the Google Mobile Services.

The strategic collaboration involves two strong brands that are expected to bring monetary benefits to the company. It will allow RCOM to position itself as a network for premium users, enhancing its current image. In addition, this collaboration will also strengthen RCOM's 3G offerings and increase its revenues and market share in coming years.

Positive outlook for Indian telecom market: The Indian telecom industry has undergone a revolutionary change in the last few years. It has emerged as one of the leading telecom markets in the world. Availability of low priced mobile devices, robust network coverage, and affordable services are some of the factors that boosted its growth. The growth is expected to continue at the same pace in the future. According to the latest


data released by Telecom Regulatory Authority of India (TRAI) there were approximately 911 million mobile subscribers at the end of February 2012, an increase of 15.1% over February 2011. In addition, the Indian mobile market expanded by over 12% in the second half of 2011. It is forecasted that the number would double by 2016 to cross 1.6 billon mobile subscribers.

Similarly, According to TRAI, there were 13.5 million broadband subscribers at the end of February 2012. The number of broadband subscribers is expected to cross 38 million by the end of 2016. Moreover, in India wireless teledensity has increased more than 75.4% at the end of February 2012. The emergence of 3G services has changed the way of mobile communication India. The deployment of 3G services are expected to play an important role for development of data based value added services in the Indian market. It is forecasted that the number of 3G mobile subscribers in India is expected to grow at a CAGR of around more than 85% during 2011-2014.

RCOM is keen to benefit from the rapidly growing telecom market in India. The company has a significant presence in Indian market. It offers a diversified range of voice, data, messaging, and other services. The company had 137 million mobile customers in India during FY2011, with a market share of approximately 17%. RCOM's strong presence and the positive outlook for the Indian telecom market would provide the company an opportunity to increase its customer base and revenues in future.

Growing DTH market in India: The direct-to-home (DTH) market in India has been growing at a rapid pace in India. The Indian DTH market has witnessed an increasing demand for easy and convenient payment modes. The Indian broadcasting system has been going through a phase of evolution due to changes in consumer preferences and increasing standards of television viewership. The number of DTH subscribers in India is anticipated to grow at a CAGR of over 20% during 2011-2014.

RCOM is poised to benefit from the growing DTH market in India. The company launched its DTH services in 2009 under the brand name of Reliance Digital TV. Reliance Digital TV service boasts of over 250 channels and service, including six interactive services and subscription video-on-demand/pay-per-view offerings. Reliance Digital TV had 3.5 million customers with a market share of 11% in FY2011.

The growing DTH market in India would provide the company and opportunity to further increase its market share and revenues in future.

ThreatsThreats


Increased competition in the telecommunications industry: The Company operates in the highly competitive and rapidly changing technology-based telecommunications industry. The focus of competition in many of its markets continues to shift from customer acquisition to customer retention as the market for mobile telecommunications has become increasingly penetrated. RCOM competes with national and international players in various markets. Major competitors of the company include Vodafone, Tata Teleservices, Aircel, Mahanagar Telephone Nigam Limited, Airtel, Sistema Shyam TeleServices, Idea Cellular, and Bharat Sanchar Nigam.

In addition, the entrance of new competitors into the converged communication services market has threatened the competitive position of the company. Increased competition has also led to declines in the prices RCOM charges for its mobile services and is expected to lead to further price declines in the future. Moreover, in recent years, the telecom operators in India continuously decreased call rates as a result of increased competition to attract and retain customers. This trend negatively impacted the ARPU of telecom players. For instance, RCOM's ARPU declined by 23% in FY2011 compared to FY2010. At the end of FY2011, the company recorded an ARPU of INR107 ($2.3).

Increased competition may put pressure on margins thereby adversely impacting the company's profitability and market share in coming years.

Regulations: The telecom regulations in India have been increasing in recent times. The regulations on communication in India are handled by the Department of Telecommunication (DoT) and TRAI. In recent times, there have been significant modifications and additions to regulations. For instance, in February 2012, TRAI floated a consultation paper for reviewing existing tariff policy which may see the mobile service and data usage service on the mobile, to be brought under regulation. Such a move could impact telecom operators' ongoing efforts to raise tariffs. In addition, any unexpected changes or new application of tax systems and economic measures by the government may adversely impact the performance and financial conditions of the company.


3G SERVICES 3G SERVICES

EVOLUTION OF 3G

3G is beginning to be standardized because more and more users want to know whether their connectivity is within optimal range. Various tools and options are being featured by various manufacturers all over the world. Perhaps in a few years, individuals will get to experience higher capacities and better efficiency in the form of 4G. Here are some more details about the standardization and what other nations have been up to lately.

The Progression

The standardization of 3G evolution is improving in both the 3GPP2 and 3GPP. The related specifications of 3GPP2 and 3GPP developments are known as UMB and LTE, respectively. Qualcomm has cancelled developments on UMB in November 2008. 3G evolution applies a part that goes further than 3G technologies to boost the performance and functions, as well as create a smoother migration path for users.

There are various ways from 2G to 3G. The main path begins in Europe from GSM once GPRS is added to a given system. From a given point, it is possible to be directed to the UMTS system. The system evolution in North America will begin from TDMA or Time division multiple access, change to EDGE or Enhanced Data Rates for GSM Evolution or EDGE, then finally to UMTS.

The others

A couple of 3G standards are being used and applied in Japan namely W-CDMA done by NTT DoCoMo. This is FOMA, which is attuned to UMTS, and Softbank Mobile which uses UMTS. CDMA2000 is used by KDDI. The transition for marketing reasons to 3G was finalized in Japan in 2006. 3G, when first introduced in the form of UMTS and HSDPA technology was managed by SETAR in the Caribbean, particularly Aruba in December 2007. The network's implementation phase was brought out by Alcatel-Lucent. SETAR also implemented a 3G network founded on CDMA 1X EV-DO dated April 2007.


The Networks

Broadband internet is not the only one that can be exploited using multi-megabits speeds. VOIP and video calling can also be done. HSDPA or high speed data packet access has capacities of taking 14.4 Mbit/s downstream, which is faster compared to majority of the standard lines. This is still faster compared to cities belonging to advanced and well-developed places. The capabilities of 5.8 Mbit/s uplink is above 10 times better than standard ADSL. It is also 7 times faster compared to the number one cable provider, Virgin Media.

Growing Networks

At present, there are about 400 3G and HSDPA networks all over the globe in one-fourth of the nations in the world. The migration of worldwide subscribers to 3G has already exceeded 15%, not to mention more than 35% among nations where 3G has been launched by the end of 2008. Several operators have launched fixed rate data plans and low cost plans for 3G information use, leading to the increase in usage and reduced costs.

During the launch of 3.5G HSDPA, the technology is given as a movable broadband modem link for both laptop and desktop users. These are priced at the low end for consumer affordability. 3G data can be quite pricey when roaming, with the average cost for every megabyte priced at around 10 dollars.

It will be very difficult to us several megabytes because of the undeveloped speeds that several networks give. You should assess and compare prices from different network providers first.


3G USES AND FEATURES

3G was successfully launched and introduced to millions of consumers all over the globe. However, there are still some features and uses that are still questioned by many. Knowing the effects and details will help you take advantage of aspects like price, functions and accessibility. Here are some more information regarding the full uses of 3G technology.


Some Concerns

Some of the concerns between users and consumers are the pricey fees of input given for the 3G service agreements and service licenses. Expense of 3G phones are also currently on the rise, as more and more people are becoming aware of the advantages in terms of speed and connectivity. There is a big amount of debt at present sustained by various telecommunication companies, making it a very huge challenge to create the important infrastructure for 3G technology. There are also several differences in the terms of the license.

There may also be lack of member state support for financially challenged operators. There can be inadequate buy-in by 2G mobile users for the new services of 3G wireless. The prices of 3G mobile services in various nations can be very high, which includes access to the internet. There is also inadequacy of users required for 3G voice and data services in a handset or mobile device.

More Uses

3G is the most recent wireless technology available, although there are now plans immediately of using 4G. The technology is also popular as UMTS or Universal Mobile Telecommunications System, which is a progress over 2G or second generation. This provides wireless access to information and data to consumers from all areas of the world and at different times and dates.

This is the latest mobile technology and is described as a generic name for mobile technology host. 3G cellular phones are the very first released in Japan in October 2001. The 3G phone was created and designed for users to have the ability to surf the internet, watch movies, download songs and videos and view pictures of other individuals that they are in contact with.


Some Benefits

You can perform all the functions in a 3G phone, as you would normally do with your current mobile device. The speed, efficiency and connectivity will be better than before, however. 3G technology offers you faster connectivity, music entertainment with the best quality and faster internet access. The advantages are so many so you can easily get other benefits like quick and easy video calling, video call facility, clearer communication experiences and faster speeds when the two parties are using 3G technology.

Accessibility

Because of easy and fast accessibility, you get to enjoy data transmission speed up to a maximum of 2 Mbps, if the individual is using the cellular phone on stationary phone. This also gives bigger and faster data transfer rates of increased networking and connectivity. On top of it all, you get to enjoy noise resistance.

The technology has increased bit rate that allows service providers to give high speed internet facilities, host of the multimedia applications to customers and heightened call volumes. The prices of units will differ, depending on the features and service provider. When you are in a moving vehicle, expect to have slower speeds than usual.

There are also greater potentials for the uses of 3G. These are still currently being worked on by professionals.


ADVANTAGES OF 3G

3G has provided a new way of life among mobile phone and handset users. Consumers are quickly getting on the bandwagon and investing in 3G-powered devices and tools. 3G can change the way you look at network, with the various features and effects. You can get ahead and take advantage of the highest details and gadgets by understanding the functions and uses of the system, as well as the available networks. Here are more details.

The Functions

People can perform a lot of functions such as sending information and data and acquiring these via wireless access. You get to have data regardless of the time and location. 3G is the latest mobile technology and is now the fastest growing host among mobile units and handsets. 3G provides you with the highest speed possible, compared to other technologies before it.

You get to have faster connectivity, music entertainment with better quality and faster access to the internet. The advantages are very side. You can also avail of the benefits of video calling because of the faster speed. You get to enjoy calls to family and friends all over the world with video call facility. The quality and clarity are enhanced, with the facility enjoyable as long as the two parties are using the 3G technology.

Using the Technology

People can use their handsets and let it function as a modem for their computer to mail and send necessary documents. Downloading songs and games will be much faster compared to older technologies. People can also enjoy and download their favorite games via their mobile units and play simultaneously. The latest music videos and songs can be acquired very easily. The technology also allows very quick downloads, so you need only a few minutes to download albums and movie clips.


Getting Information

Getting information is one of the best features of 3G technology. You can also watch the latest news and headlines, getting data like the weather, sports and economic details. You get to acquire the latest scores in an ongoing baseball match and other favorite sports. The 3G cellular phones with the very advanced feature can feature highlights of popular sports and shows. The improved quality of services and speed of 3G phones can allow you to watch music videos and movie clips with crisp and clear photos, compared to 2.5G technology phones.

Higher Speed

With 3G technology, you get to enjoy data transmission speed leading up to 2Mbps, considering that you have a phone in stationary mode. It also gives you high degree of connectivity and higher networking, plus resistance to noise.

The technology has enhanced the bit rate, allowing service providers to give high speed internet facilities, higher call volumes and host of the multimedia applications that can be given to the customers. All the services can be given to the customers based on the data quantity transmitted and not on the time used for the service. The services rendered to clients are cheaper overall.

On Price

Despite the new speeds and features of 3G technology, the prices of handsets and mobile units are relatively the same. The most recent models, however, may be priced higher compared to those featuring 2.5G. You can avail of discounts and other promos by visiting web sites and other private sellers on the market.


3G Vs HSDPA

3G is the common name for the third generation of mobile phone technologies. But instead of being a single standard, 3G is composed of multiple technologies that provide the same level of service. HSDPA (High Speed Downlink Packet Access) is a later addition to the 3G technologies to provide better and faster data speeds to subscribers.

3G is an improvement of the older 2G standard and introduces multiple advanced features. The most significant is video calling, which allows the two parties to see each other during the call. Another improvement is the much faster internet connection speeds that are being offered by 3G. But as more people are using the service and the demand for better and faster connection rose, HSDPA was added to 3G. HSDPA does not offer any new features like 3G did, it simply offered a faster connection that the 3G features can take advantage of. HSDPA also provides better latency compared to the older technologies of 3G. Latency is the time between the request was sent and the time for the reply to get back. This might not be noticeable for most people who use their mobile phones to browse web sites, but it is quite important for people who use real-time services like VoIP. A higher latency results to lag in the voice signal or dropped packets which can deteriorate the call quality.

Implementing HSDPA is quite a big step for mobile companies who are still using the older 2G standard. As with all 3G technologies, HSDPA is not compatible with 2G and requires a new network altogether. But for companies who already have 3G networks deployed, implementing HSDPA is relatively cheap and simple that there is really no argument against deploying it. Aside from the network side, mobile phones must have HSDPA capabilities in order to take advantage of the added speed. Just because a mobile phone advertises that it is capable of 3G does not mean that is capable of performing at HSDPA speeds.

In Conclusion:

1. 3G is a group of technologies for mobile communications while HSDPA is an extension of the 3G technologies to provide faster speeds

.


2. 3G introduced new features like video calling and online TV

3. HSDPA provides better latency compared to the older 3G technology

4. HSDPA is relatively easy and cheap upgrade to existing 3G networks

5. There are mobile phones that have 3G support but not HSDPA


AVAILABILITY OF 3G IN INDIA

Reference www.dot.gov.in

There are three major players in the 3G market Airtel, Reliance and Aircel these three have won 3G Spectrum in 13 circles while other three players DoCoMo, Vodafone and Idea got 3G Spectrum in nine, nine and eleven circles respectively.

3G service providers for Delhi:Delhi was the most wanted circle and so was highly priced. The successful bidders for Delhi circle are Vodafone, Bharti and Reliance. It's the bad luck of TATA who doesn't even have a 2G license for Delhi.

http://www.dot.gov.in/


3G service providers for Mumbai:

Again Mumbai was highly priced. After all it's the commercial capital of India. The successful bidders who will provide 3G services in Mumbai are Reliance, Vodafone and Bharti.

Same 3G network providers in Delhi and Mumbai. This is a good result because people moving between Delhi and Mumbai don't need to worry about the presence of their network in Mumbai or Delhi.

3G service providers in Maharashtra:

Tata lost it in both Mumbai and Delhi. But here is the good luck of Tata teleservices. Tata is one of the 3G service providers in Maharashtra. The other 3G service providers in Maharashtra are Vodafone and Idea. Well this may be a bit problematic for the people of Maharashtra. Only Vodafone is the common 3G service provider in Mumbai and Maharashtra. This will attract mobile users to Vodafone.

3G service providers in Gujarat:1. Tata2. Vodafone3. Idea

3G service providers in Andhra Pradesh:1. Bharti2. Idea3. Aircel

3G service providers for Karnataka:1. Tata2. Aircel 3. Bharti


3G service providers in Tamil Nadu:1. Bharti2. Vodafone3. Aircel

3G service providers in Kolkata:1. Vodafone2. Aircel3. Reliance

3G service providers in Kerala:1. Idea2. Tata3. Aircel

3G service providers in Punjab:1. Idea2. Reliance3. Tata

3G service providers in Haryana:1. Idea2. Tata3. Vodafone

3G service providers in Uttar Pradesh (East):1. Aircel2. Idea3. Vodafone


3G service providers in Uttar Pradesh (West):1. Bharti2. Idea3. Tata

3G service providers in Rajasthan:1. Reliance2. Bharti3. Tata

3G service providers in Madhya Pradesh:1. Idea 2. Reliance 3. Tata

3G service providers in west Bengal:1. Bharti2. Reliance3. Vodafone4. Aircel

3G service providers in Himachal Pradesh:1. Bharti 2. S. Tel 3. Idea 4. Reliance

3G service providers in Bihar:1. Bharti 2. S. Tel 3. Aircel 4. Reliance


3G service providers in Orissa:1. Bharti 2. S. Tel 3. Reliance

3G service providers in Assam:1. Bharti 2. Aircel3. Reliance

3G service providers in North East:The other states of North east are clubbed together except for Assam. 3G network will be provided by Aircel, Bharti and Reliance.

3G service providers in Jammu and Kashmir:3G in Jammu and Kashmir will be supported by Idea, Aircel, Reliance and Bharti.

BSNL and MTNL were not part of this bidding process. MTNL 3G services are operational in Mumbai and Delhi only. For rest of the country, BSNL is providing 3G services.


DELHI TELECOM MARKETDELHI TELECOM MARKET ANALYSISANALYSIS

TELECOM OPERATORS IN DELHI HARYANA AND UP (E&W)

Source: TRAI Quarterly Report

Delhi has 3 service providers in 3G market namely Airtel, Reliance and Vodafone. Where Airtel and Vodafone has both 900/1800 MHz of frequencies in Delhi Reliance has only 1800 MHz of frequency.


WIRELESS AND WIRELINE SUBSCRIBASE IN DELHI, 2012

Tata Reliance Airtel

Wireline 78189 183027 1074222

Wireless 4640386 8653048 8792236

1000000

3000000

5000000

7000000

9000000

11000000

DELHI SUBSCRIBER BASE

Axis Title

Source : AUSPI

Airtel is the market leader in Delhi in case of wireless services. And reliance is at second position. The situation is similar even in case of wireline connections we can see that even in case of wireline connection Airtel is the market leader and Reliance is at second position behind Airtel. And Tata is at last position or we can say that Airtel subscriber base is double of Tata. Tata has to cover long distance to reach the level of reliance.

But we can also see that the difference between the subscriber base of Airtel and Reliance is very less in case of wireless connections. The difference is just 1, 39,188 users which is very minimal.

But in case of wireline connection reliance is way behind Airtel on the one hand Airtel crosses the 1 million mark and reliance is still far behind Airtel. Currently Airtel is at the level of 10, 74,222 users while reliance is at 183027 users. In case of wireline reliance has to work hard to reach the level of Airtel.

CELLULAR PHONE SUBSCRIBERS IN DELHI & NCR, MARCH 2012


SERVICE PROVIDER

Delhi HARYANA U.P. (EAST) U.P. (WEST)

Airtel (GSM) 87,48,943 24,33,163 1,46,93,835 66,46,966

Reliance (CDMA+GSM)

87,70,233 42,61,883 1,28,15,136 98,91,891

Vodafone (GSM)

86,23,095 44,51,590 1,49,34,620 95,34,452

Uninor (GSM) 432 70,22,779 50,13,924

MTNL(GSM) 27,60,058

Idea (GSM) 47,64,047 37,67,079 76,60,386 1,03,14,303

Aircel (GSM) 25,23,574 6,06,727 26,12,007 21,94,619

Etisalat DB(GSM)

7,59,210 15,171 50,246 47,133

Tata (CDMA) 45,70,698 28,84,838 46,47,678 46,71,999

MTS (CDMA) 11,79,004 2,20,922 5,29,153 5,40,239

BSNL (GSM) 29,72,891 96,76,298 46,36,191

Videocon (GSM)

9,25,500 16,719 8,477

Loop Mobile (GSM)

88 8


Reliance is at top in Delhi with 87, 70,233 subscribers where Airtel holds second position with 87, 48,943 subscribers and Vodafone is at 3rd position with 86, 23,095 subscribers.

Reliance is at top in Delhi because the whole cdma sector is headed by reliance with 51% of market share while Airtel and Vodafone are only in GSM space.

MARKET SHARE IN DELHI


Airtel (GSM)20%

Reliance (CDMA+GSM)21%Vodafone

(GSM)20%

MTNL (GSM)6%

Idea (GSM)11%

Aircel (GSM)6%

Etisalat DB (GSM)2%

Tata (CDMA)11%

MTS (CDMA)3%



Delhi has 9 telecom service providers namely Reliance, Airtel, Vodafone, Idea, Tata, MTNL, Aircel, MTS and Etisalat. The major 3 players in Delhi market are Airtel, Reliance and Vodafone with market share of more than 60%.

The market leader in Delhi telecom space is Reliance with 21% of market share where Airtel and Vodafone both are at same place with 20% of market share.


MOBILE NUMBER PORTABILITY IN DELHI & NCR

Serial No. Service Area Number of Porting Requests

1 Delhi 17,48,385

2 Haryana 18,23,692

3 U.P. (E) 23,48,832

4 U.P. (W) 23,23,789


Delhi has 17, 48,385 MNP requests this shows that now customers are more aware about MNP and using it in large number this gives huge potential to telecom operators to grab existing customers of other service providers by providing them better services at more affordable prices. But this acts as a double edged sword because MNP increases the competition in the market because now telecom operators have to decrease their prices to retain their existing customer which becomes the main reason for low ARPU.


TREND OF TELECOM SUBSCRIBERS IN DELHI & NCR

Qtr 1 Qtr 2 Qtr 3 Qtr 40

10

20

30

40

50

60

70

80

TELECOM SUSBCRIBERS (in million)

DelhiHaryanaU.P. (E)U.P. (W)


UP (E) is at top with more than 70 million subscribers where Delhi has 44.5 million subscribers and the growth in Delhi is by and large stagnant in Delhi from last 3 quarters while the first quarter gives 2.36 million subscribers. Where the highest growth is in UP (E) Circle and the lowest growth is in Haryana Circle where the susbcriberbase has minimal movements.

SERVICE PROVIDER WISE GROWTH IN DELHI


Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Airtel 8450403 8461711 8525943 8589731 8666307 8748943

Reliance 8517087 8524334 8582502 8686907 8653048 8770233

Vodafone 8170241 8210255 8270357 8340459 8415704 8623098

Tata 5387083 4873344 4933285 4856373 4640386 4570698

Idea 4311419 4283768 4353653 4585267 4736999 4764047

Aircel 2305643 2315972 2328051 2364118 2444970 2523574

500000

2500000

4500000

6500000

8500000

GROWTH IN DELHI

Axis Ti

tle


MAJOR PLAYERS IN DELHI 3G MARKET


1. BHARTI AIRTEL (20%)

2. RELIANCE (21%)

3. VODAFONE (20%)

PROFILES OF MAJOR PLAYERS IN DELHI:

1) BHARTI AIRTEL

Name Bharti Airtel

Year of Establishment 1985

Company Profile Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by two companies: the Mobility group and the Infotel group.

Global Presence/ MarketingNetwork

The mobile business provides mobile & fixed wireless Services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities.


Acquisitions / StrategicAlliances

Bharti Telecom and British Telecom formed a 51%:49% joint venture, Bharti BT Internet for providing Internet services, in 1998 Bharti Tele-Ventures acquired an effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the cellular services provider in Karnataka and Andhra Pradesh circles in 1999 Bharti Telesonic entered into a joint venture, Bharti, With SingTel for establishing a submarine cable ending station at Chennai in 2001 A 50:50 joint venture between Bharti and SingTel, to undertake the largest infrastructure project between Singapore and Indian companies in 2001

Future Prospect Bharti Airtel company is planning to set up 3000 more towers as part of enhancing their rural coverage and will now focus on rural and semi-urban areas.

Bharti Airtel (20%)

Bharti Airtel is one of the topmost companies in the telecom sector in India and is under the Bharti Enterprises Group. Airtel Bharti has been ranked as the best performance company in the whole world by the Business Week magazine in 2007.

The Company Bharti Airtel is in India the biggest integrated and also the 1st telecom service provider in the private sector, which has footprint in around 23 telecom circles. Bharti Airtel Limited has been since its very beginning using the latest technology and thus the company has paved the way for the telecom sector in India with its world-class services and products. This has helped Bharti Airtel Company to grow for the number of its customers has increased very rapidly over the years. The company has around 50 million customers in 2007 and its market share of mobile subscribers in India is at 23.4%.


The company Bharti Airtel Limited's total revenue amounted to Rs.12,242 crore in 2006- 2007 and the net profit stood at Rs.3,126 crore. The Company Bharti Airtel is divided into 3 business units that are:

Broadband & Telephone (B&T) services Enterprise services

Mobile services Among the various services that the Bharti Airtel Limited

Company provides to its customers, the services of broadband and telephone (B&T) are 1 of them. The company provides broadband Internet services of high speed for it has the best network in India. The company Bharti Airtel also provides telephone services in around 94 cities of the country and this helps the people to stay connected with one another. The company plans to expand its broadband and telephone services by providing IPTV services and DTH operations.

Further Bharti Airtel provides enterprise services to its customers. The services of enterprise provide telecom end-to-end solutions to customers who belong to the corporate sector and also long distance services to international and national carriers. The company Bharti Airtel has more than 35,016 kilometers of optic fiber, a submarine landing station, and is also a member of South East Asia- Middle East- Western Europe- 4. All this has helped the company to provide the best enterprise services to its customers. The company Bharti Airtel Limited plans to expand its enterprise services so that it can achieve the status of a global carrier within a period of 2- 3 years.

The company Bharti Airtel Limited provides mobile services to its customers. The company provides fixed and mobile wireless services in around 23 telecom circles by using the GSM technology. Bharti Airtel Company has become the biggest mobile service provider in India on the basis of the number of customers. The company in the future plans to expand its network order to establish its presence in more than 500,000 villages all across the country by 2010.

Bharti Airtel has become a leading company in the telecom sector in India due to the fact that it has provided the best quality of services to its customers. And this has been possible for the company has a wide telecom network that is of the latest technology. The Company Bharti Airtel Limited in the future also should continue to upgrade its facilities for this will ensure that high grade of services are provided to its


customers.2). RELIANCE COMMUNICATIONS

Name Reliance CommunicationsYear of Establishment 1999Company Profile Reliance Telecom's cellular services are

available in 340 towns within its eight-circle footprint. Reliance Infocomm also offered for the first time in India, mobile data services through its R- World mobile portal. This portal leverages the data capability of the CDMA 1X network. Reliance Infocomm offers a complete range of telecom services covering mobile and fixed line telephony including broadband national and international long distance services, data services and a wide range of value added services and applications aimed at enhancing productivity of enterprises and individuals.

Global Presence/ MarketingNetwork

Reliance Communications has IP-enabled connectivity infrastructure comprising over 150,000 kilometers of fiber-optic cable systems in India, the US, Europe, Middle East, and the Asia Pacific region.

Acquisitions / StrategicAlliances

International wholesale telecommunications service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm in 2004


Reliance Communications (21%)

Reliance Communications started its operations in 1999 and is under the Anil Dhirubhai Ambani Group (ADAG) of companies. The company Reliance Communications Limited has been set up with the aim of providing communication and information to people at affordable price.

The company Reliance Communications business includes the whole range of services related to the telecom sector such as fixed line telephones and mobiles. The business of the company also includes services like broadband, data services, international and national long distance services. Reliance

Communications also provides to its customers a wide range of value added applications and services. The company is able to provide such a vast range of services to its customers for it has a high- capacity, reliable, convergent, and integrated digital network.

The Company Reliance Communications Limited in order to provide the best quality of services to its customers laid down 60,000 kilometers of optic fiber all across India. The company launched the Reliance Mobile services in December 2002 and this has helped to increase the subscriber base of the company. The company Reliance Communications Limited's subscriber base has increased a lot over the years and at present stands at 38 million. The company provides telecommunication services to individuals and enterprises. Reliance Communications Company has become the leading telecommunication integrated company in India and the chairman of the company is Anil Ambani.

Reliance Communications Limited further plans to expand its operations and also plans to upgrade its technology. This is sure to help the company serve its customers better and will also increase its subscriber base. The Company Reliance Communications Limited should always try to provide the best quality of services to its customers for this would lead to customer satisfaction and loyalty. And this will in turn help the company to grow and prosper even more.


3). VODAFONE

Name VodafoneYear of Establishment Acquired majority stake in Hutch Essar in

India, by buying out complete stake of Hutch in 2007, Essar is still minoritystakeholder in company

Company Profile Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 45.78 million customers. Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country and the 'Most Creative and Most Effective Advertiser of the Year'.

Global Presence/ Marketing

Network

It has operations in 25 countries across 5 continents and 40 partner networks with over 200 million customers worldwide.

Acquisitions / StrategicAlliancesFuture Prospect Vodafone Essar is expecting to touch

over 35 million customers across 400,000 shops and thousand of hutch’s own employees along with employees of its business associates.


Vodafone Essar (20%)

Vodafone Essar started its operations in India in 1994 and is under the Vodafone Group. The company Vodafone Essar Limited has become one of the leading companies in the telecom sector in India due to its high standard of services that it provides to its customers.

The company Vodafone Essar has its operations in 16 telecom circles of the country, which covers around 86% of the customer mobile base in India. The company offers both postpaid and prepaid GSM cellular mobile coverage all across India and its hold is especially strong in the metropolitan cities. The company Vodafone Essar Limited provides services like 2G, which are based on 1800Mhz and 900Mhz GSM digital technology. The company Vodafone Essar also offers voice and data services.

Vodafone Essar Limited has received many awards over the years such as the Best Mobile Service in India, Most Effective and Most Creative Advertiser of the Year, and Most Respected Telecom Company. The company Vodafone Essar Limited's chairman is Asim Ghosh, vice chairman is Arun Sarin, and non- executive chairman is Ravi Ruia. The Vodafone Essar subscriber bases in the cities of India are:

Kolkata - 1,632,875

Mumbai - 2,989,970

Delhi - 3,002,442

Chennai - 981,996

Vodafone Essar plans to sell the low price handsets from its 4 lakhs distribution outlets. The company will buy the low cost cell phones from the firm ZTE that is located in China. The Company ZTE will ship more than 10 million low cost cell phones to India that will then be sold by the company Vodafone Essar. Vodafone Essar Company also has plans to expand in the near future and for this it is planning to take a loan overseas of around US$ 500 million. The company Vodafone Essar Limited will use the money to expand the company's network, better its technology, and open more distribution centers. All these measures will help to increase the customer base of the company Vodafone Essar.


Vodafone Essar is one of the topmost companies in the telecom sector in India and is well known for the best quality of products and services offered to its customers. And this is the reason that the customer base of the company Vodafone Essar Limited has been increasing at a very rapid pace. The company is planning to launch low price cell phones in the country and also expand its operations. This is sure to help the company Vodafone Essar to grow and prosper even more in the future.


COMPARISON OF TARIFF PLANS OF MAJOR PLAYERS

AIRTEL POSTPAID 3G PLANS

Pack typePack typeMaxMax

serviceservice chargecharge

Free dataFree data validityvalidityBill shieldBill shield

valuevalueIn plan VBCIn plan VBC

9999 100100 200MB200MB 30 days30 days Rs. 750Rs. 750Post limitPost limit (3p/10kb)(3p/10kb)

200200 200200 500MB500MB 30days30days Rs. 1000Rs. 1000Post limitPost limit (3p/10kb)(3p/10kb)

450450 450450 1200MB1200MB 30 days30 days Rs. 1500Rs. 1500Post limitPost limit (3p/10kb)(3p/10kb)

750750 750750 5GB5GB 30 days30 days Rs. 4000Rs. 4000Post limitPost limit (3p/10kb)(3p/10kb)

675675 675675 2.5GB2.5GB 30 days30 daysPostPost

limit(2p/100kb)limit(2p/100kb)

12501250 12501250 10GB10GB 30 days30 days Rs. 5000Rs. 5000Post limitPost limit (3p/10kb)(3p/10kb)

VODAFONE POSTPAID 3G PLANS

Pack typePack typeMonthlyMonthly

rentalrentalAllowanceAllowance ValidityValidity Beyond usageBeyond usage

3G3G 100100 100+100 MB100+100 MB 30 days30 days 2p/10kb2p/10kb

3G3G 375375 512+512 MB512+512 MB 30 days30 days 2p/10kb2p/10kb

3G3G 650650 1024+10241024+1024 30 days30 days 2p/10kb2p/10kb


MBMB

3G3G 850850 3 GB3 GB 30 days30 days 2p/10kb2p/10kb

3G3G 12501250 5GB5GB 30 days30 days 2p/10kb2p/10kb

RELIANCE POSTPAID 3G PLANS

Pack typePack type Monthly rentalMonthly rental AllowanceAllowance validityvalidityBeyond UsageBeyond Usage

3G my best3G my best plansplans

350350 500MB500MB 30 days30 days 6p/MB6p/MB


350350 1000MB1000MB 30 days30 days 60p/MB60p/MB


650650 6000MB6000MB 30 days30 days6p/MB above6p/MB above

1000 MB1000 MB

3G unlimited3G unlimited 750750 5 GB5 GB 30 days30 daysFree at 1XFree at 1X

speedspeed


speedspeed


speedspeed

Reliance has the cheapest rates of postpaid internet Rs. 750 for 5 GB Unlimited Download Plan where Airtel is at second position with Rs. 750 for 5GB limited Download plan while Vodafone is the costliest of the lot with Rs. 1250 for 5GB Limited Download plan. Where the post usage charges is highest in case of Airtel 3p/kb where Reliance is the cheapest with 6p/MB.

Reliance has the advantage in the Delhi telecom sector because reliance is the cheapest of lot and has lots of potential in the market to acquire new customers.


SWOT ANALYSIS OF MAJOR TELECOM PLAYERS IN DELHI

1). BHARTI AIRTEL


2) RELIANCE COMMUNICATIONS

STRENGHTSlargest cellular service provider in India, with over 164.61 million subscribers at the end of April 2011 Only Indian operator, with VSNL, that has an international submarine cable

High brand visibility

Strong advertising with celebrity brand ambassadors

WEAKNESSPrice competition from BSNL and MTNL

Untapped Rural Market

OPPORTUNUTIESFast expanding cellular market

Latest and low cost technology

Untapped rural market

THREATSNew entrant's low price offering

Saturation point in Basic telephony service

Mobile Number Portability

A I R T E L


STRENGHTS

Ability to attract customers with various plansCelebrity brand ambassadorGood advertisingHigh brand visibilityFlexible plans

WEAKNESS

Price competition frm BSNL & MTNLUntapped Rural Market

OPPORTUNUTIES

Fast expanding cellular market

Latest 3G technology

Untapped rural market

THREATS

New entrant's low price offering Saturation point in Basic telephony serviceMobile Number Portability

R E L I A N C E


3). VODAFONE

STRENGHTSOne of the most popular cellular service provider in India One of the largest Telecom operator in the world Only Indian operator, with VSNL, that has an international submarine cable High brand visibility Strong advertising with ZooZoo concept Tieup with international sports like FormulaOne

WEAKNESSPrice competition from BSNL and MTNLUntapped Rural Market

OPPORTUNUTIESFast expanding cellular market Latest and 3G technologyUntapped rural market

THREATSSaturation point in Basic telephony service Mobile Number Portability

V O D A F O N E


3G FOR BUSINESS

Applications of 3G for Corporates

Embrace the next generation of mobile communications - the generation of 3G. 3G brings to you a world class network capable of delivering amazing access speeds to keep you ahead, increasing bandwidth on your mobile to broadband speeds. 3G not only promises faster web browsing and file downloads but also empowers demanding multimedia applications such as video conferencing, Voice-over-IP (VoIP), full motion video and streaming music. Experience a whole new world of applications with amazing speed on 3G.


Video calling

See the person you are talking to and show things as you chat

Express feelings that can’t be conveyed with words alone

Switch between voice calls and video calls

Mobile TV / m-entertainment

Take a break in between a meeting to catch up with latest business updates and your favorite news, sports and infotainment programmes while on the move with Mobile TV

Online gaming

Video on demand

Video talkies

Faster internet

Access faster Internet from your mobile

Upload & download heavy files

Watch & download videos

Connect to your friends on social networking sites

Video blogs: record videos on your mobile and upload instantly to share with friends

Enjoy speeds up to 21 mbps

M-commerce

Pay your bills and do all other financial transactions

Enable safe transactions

Stock transactions

Video conferencing


Connect face-to-face with your colleagues, business associates, friends and relatives using your mobile

Experience high quality, real time audio & video calling

location based services

Know real time location of your friends & family

Track location of your field force

Find routes, location of banks, restaurants, cinema halls etc. near you

Check for traffic jams along your route

Voice & Data convergence

Enjoy simultaneous voice and data sessions

Chat or email even if you are on a call

Multimedia capabilities on your mobile phone

Improved voice quality

Direct voice calls to voice mail when you are busy

E-mail on the go

A never before experience of sending and receiving e-mails

Share files, photos and videos

Bring life to your emails with pictograms, animation and moving characters

Always stay connected

Enjoy greater level of security

SCOPE IN DELHI CORPORATE SPACE


GROWTH TREND OF CORPORATE ESTABLISHMENTS IN DELHI

1990 1998 2005 20110

100000

200000

300000

400000

500000

600000

700000

800000

289893

454729

685852

757743

Source: Census Report

In the year 2011 corporate establishments in Delhi have reached to the new heights of 7, 57,743 establishments where in the year 1990 it was just 2, 89,893 establishments in Delhi the average rate of growth in establishments in Delhi is 75% p.a. this way there is lots of potential for reliance communication to acquire the market and become the market leader in the Delhi corporate space because currently Reliance is the cheapest of the lot with customized plans for corporates. Currently reliance has maintained decent position in Delhi corporate space and can increases this by offering special corporate plans and by tapping the 3G market with the help of Reliance and Google deal because Android is the hottest selling OS in the market with more than 256% yearly growth. Reliance can also offer special offers and plans to corporates on 3G & Android combine deals.

MARKET SHARE OF CORPORATE ESTABLISHMENTS ACCORDING TO ECONOMIC ACTIVITY



The major part of Delhi corporate space is with Retail sector (48.86%) while manufacturing sector holds second position with 14.76% of corporate space and third position is with Community Social & personal services these 3 sectors have the major share of corporate space in Delhi.

Reliance can offer special customized plans to these three sectors this way by targeting the particular segment reliance can acquire the major share of market. This way reliance


can offer customized plans according to these major establishments. Like in case of retail sector who has 48.86% of market share reliance can offer special schemes in CUG & local calling with customized 3G data plans.

Likewise in case of manufacturing sector reliance can offer special CUG offers by which the inter group calling can be done free or at minimal prices and reliance can also offer customized 3G data plans.

In case of community, social and personal services Reliance can offer them low cost local calling plans because in this case mostly the calling pattern is local calling so by giving special offers and plans in local calling with customized 3G data plans this way Reliance can acquire more customers.

DISTRIBUTION OF EMPLOYMENT IN DELHI CORPORATE ESTABLISHMENTS



Manufacturing sector has maximum number of employment 30.90% where retail sector is the second major employer with 25.23% of employment share while Community, social, personal services & others sector is the third largest employer.

When the employment data is matched with market share of establishments in Delhi then the output shows that the major share of employment is with retail sector while manufacturing sector holds the second position and the community sector is at third place this way these sectors have the major customer base.


Reliance can acquire more customers by targeting these 3 sectors mainly by providing them customized plans and reliance can also provide them tailor made plans according to the needs of these 3 sectors.

Some of the sample plans for these 3 sectors are as follows:

Free CUG plans for retail sector

special local calling plans

Special employee slabs for corporates

Special discount for retail sector employees

Tailor made 3g data card plans

Customized plans


GSM SERVICESGSM SERVICES

Evolution of GSM

The GSM story began in the early 1980’s, when European countries struggled with no fewer than nine competing analog standards, including Nordic Mobile Telephony (NMT), Total Access Communications Systems (TACS), and so on. In order to put the rise of GSM in context, it is important to note that the climate of economic liberalization and opening up of new markets in Asia, Latin American and Eastern Europe helped boost analog system subscriber numbers throughout the 1990’s. The roll-out of a multi-national global communications standard faced several formidable barriers. Operators were concentrating on new methods for expanding old analog networks, using methods like NAMPS (Narrowband Advanced Mobile Phone Service) by Motorola; unsurprisingly, there was resistance to the prospects of a digital launch.

Pan-European roaming was nothing more than a distant dream at that point, and capacity was a particularly difficult issue. Europeans recognized the need for a completely new system – a system that could accommodate an ever-increasing subscriber base, advanced features and standardized solutions across the continent. Because of the shortcomings and incompatibility issues associated with analog systems, a completely new digital solution was instituted. The new standard, Groupe Spéciale Mobile (GSM), was built as a wireless counterpart of the land-line Integrated Services Digital Network (ISDN) system. Although GSM initially stood for ‘Groupe Spéciale Mobile’, named after the study group that created it, the acronym was later changed to refer to ‘Global System for Mobile communications’. This transition as well as other key aspects of GSM history are elaborated upon in subsequent sections.


Timeline of the development of GSM

Year Events

1982 CEPT establishes a GSM group in order to develop the standards for a pan-European cellular mobile system

1985 Adoption of a list of recommendations to be generated by the group

1986 Field tests were performed in order to test the different radio techniques proposed for the air interface

1987TDMA is chosen as access method (in fact, it will be used with FDMA) Initial Memorandum of Understanding signed by the telecommunication operators (representing 12 countries)

1988 Validation of the GSM system

1989 The responsibility of the GSM specifications is passed to the ETSI

1990 Appearance of the phase I of the GSM specifications

1991Set date for the ‘official’ commercial launch of the GSM service in Europe

1992 Actual launch of commercial service, and enlargement of the countries that signed the GSM – MoU > Coverage of Larger cities / airports

1993 Coverage of main roads GSM services start outside Europe

1995 Phase II of the GSM specifications Coverage of rural areas

Source: The ITU and “An Overview of the GSM System”.


Launch of GSMThe launch of GSM took place in the latter part of 1992, with the first GSM digital cellular network going ‘live’ in Finland in 1991; Finland and Germany (in 1992) were among the first European countries to launch. Germany, specifically, was known as “the main driver of European GSM cellular penetration” through the early 1990’s. In early 1992, only three or four GSM networks had launched. Within seven years, GSM networks had over 50 million subscribers in Europe. By comparison, it took fixed networks nearly 50 years to acquire the same number of subscribers worldwide, and about 15 years for the Internet to attract 50 million users worldwide. Among the early runners were Finland (two operators), Germany (two operators), Denmark (two operators), Portugal (two operators), Sweden (three operators), Italy and France. On June 17, 1992 the first roaming agreement was signed between Telecom Finland and Vodafone in the UK, amidst great concern amongst operators mainly as a result of non-existent or interim type-approved handsets.

\By 1993 the MoU boasted 70 members from 48 countries and 25 roaming agreements. Approximately two million people were now using the GSM network, with the next million already on the horizon. And, perhaps most significant of all, the Australian company Telstra had added its name to the growing MoU membership. After two years, GSM had expanded beyond Europe and Australia, establishing a presence in India, Africa, Asia and the Arab world. By June 1995, the MoU was formally registered as an Association in Switzerland, with 156 members serving 12 million customers in 86 countries.

GSM (and its twin system operating at 1800 MHz, called DCS1800) was at this time perceived to be one of a number of new or revamped mobile services entering the market, though its ‘presence in a crowd’ of competing 2G systems would not undermine the critical role it was to play. This was true not only due to technological features, but to how it was introduced, which was contributing to the reorganization not only of the cellular market, but of the configuration of the telecommunications services industry across Europe. Operators in 1993 were piggy-backing ‘local’ digital services, with lower access and call charges, on the 900 MHz GSM networks.


Most of Europe’s public telecommunication operators (PTOs) at this point in time were anxious for privatization and greater operational flexibility, hence the frequent separation of mobile divisions, allowing for bids for overseas licenses and work with private sector partners. In the years ahead, licensing administrations throughout the world would employ this system – which utilized modified GSM specifications – as a means of introducing further competition into the mobile market. The impact of such intensive competition was to shift mobile communications away from the business community and into the mass market.


TOP GSM OPERATORS IN THE WORLD

China mobile28%

Vodafone16%

Telenor9%

China Unicom8%

Telia sonera8%

T-Mobile7%

France Telecom (Orange)7%

MTS6%

Bharti Airtel5%

MTN Group5%

GSM Market Share in the World (%)

Source: Operators website, Press Release & Regulatory

The world telecom market is growing at high pace the growth of telecom sector is highest in all industries and the top 3 GSM players in the world are china mobile, Vodafone and Telenor these 3 have 53% of market share while the remaining 47% is with other 10 players. Where Indian telecom leader Airtel holds 5% market share of international market and Vodafone who holds third position in India has 16% market share in world telecom market.


GSM MARKET ANALYSIS

PROPORTION OF GSM SUSBCRIBERS


Circle C has the highest proportion of GSM subscribers while circle B is just behind and Circle A holds third position and Metros are at 4th position.

The all India susbcriberbase of GSM services is increased by 0.04% where the Circle A & B has reported growth of 6 & 2% respectively where Circle C has reported highest growth of 8%. Metros are the only Circle who reported fall of 12% in customer base from the last year. The main reason behind this negative growth is the saturation in the telecom space in metros.

Metros are already saturated and this becomes the main reason behind the less growth and stiff competition Reliance has to make policies according to this stiff competition and provide customers better services and plans to attract more customers.


MARKET SHARE OF GSM OPERATORS IN INDIA

Bharti22%

Vodafone19%

Idea/Spice14%Reliance

12%

BSNL12%

Aircel/ Dishnet8%

Tata6%

Unitech5%

Videocon1%

MTNL1%

S Tel0%

Loop0%

Etisalat0%

Quadrant (HFCL)0%

GSM MARKET SHARE


In Delhi telecom space Bharti Airtel is the market leader having 22% of market share with subscriber base of 175.65 million where Vodafone holds the second position with 147.75 million subscribers and 19% of market share. And Idea/ Spice is at third position and have subscriber base of106.38 million with 14% of market share.

Reliance is the market leader is Delhi CDMA space with 51% of market share but in GSM space Reliance holds 4th position and have subscriber base of 94.72 million users with 12% of market share.

67% of market share is with these 4 major players and the remaining 33% is with other 10 players.


OUTGOING TRAFFICE PATTERNS (MOU) IN GSM SERVICES



MINUTES OF USAGE AND SMS (subs/month)-GSM SERVICES


In postpaid GSM services the highest MOU Outgoing is in circle A while Metros has the lowest MOU Outgoing. The main reason behind low MOU in Metros is the proportion of prepaid to postpaid in metros most of the people here use prepaid connection rather than postpaid because of easy availability and less time consuming documentation process. The same trend can also be seen in Incoming MOU and outgoing SMS also.

In most of the cases postpaid connections are used by those who monthly usage is high while prepaid connections are used by those whose monthly usage is low. Currently in Delhi we have 90.22% of prepaid customers so there is huge potential in the market to tap these customers and convert them to postpaid customers. This gap between prepaid and postpaid customers needs to be filled by providing customers hassle free and less time consuming activation. Another reason for less postpaid connection is the wrong perception of customers that postpaid is expensive than prepaid which needs to be changed.


ARPU OF GSM OPERATORS


The highest ARPU is in postpaid customers of Metros 646 where the lowest is in circle C cities postpaid connection 462. The same trend like in case of MOU can be seen here also as it is visible that the highest ARPU is coming from postpaid customers and lowest is coming from prepaid customers in metros only 72.

To increase the ARPU prepaid customers needs to be changed from prepaid to postpaid. Currently we have only 9.78% of postpaid customers which needs to be increase to increase ARPU because the postpaid customers are the highest revenue giving customers. Reliance can offer special offers to their existing prepaid customers by that the revenues of reliance can also be increased for that there are various strategies that reliance can adopt.

Some examples of strategies for prepaid to postpaid conversion:

1). Customer loyalty bonus to existing customers.

2). Within 1 day prepaid to postpaid conversion.

3). Special plans of existing prepaid customers.

4). Customised plans according to the needs of customers aa dell is doing.


5 YEAR TREND IN GSM SUBSCRIBERS

2006 2007 2008 2009 2010 20110

100

200

300

400

500

600

700

800

69.19120.47

192.7

297.26

478.68

698.37

GSM Subscribers Trend


This year GSM Subscriberbase reached new heights of 698.37 Million Susbcribers as it can be seen that GSM is achieveing new level year on year. As in year 2006 only 69.19 million susbcribers were there in year 2007 the growth rate was 74.11% while the growth level allways around 50% p.a.

In year 2010-11 year the growth rate is 45.89% this way the future prospects of GSM market is also good we can expect this growth to be continue in future also. As the forecase trendline also shows that the trend continues iin future also and GSM market is continue growing in the same pace.


TRENDS OF KEY PARAMETERS- GSM SERVICES


In the last one year ARPU has been constantly decreasing month by month where in December 2010 it was 105 in December 2011 it is 96 the reason behind this downfall is the saturation in telecom market as the competition has increased in the market as more and more of the telecom companies entered in this sector.

If we take a look at whole parameters we can observe that the whole telecom sector is facing downfall because of stiff competition in the market as more and more of the competitors have entered in the market.


Network Related Parameters

Network availability

Connection Establishment (Accessibility)

Connection Maintenance (Retain

ability)POI

S.No

Name of

service

area

Name of

service

provider

BTSs accumul

ated downti

me (%age)

Voice affect

ed BTSs

due to downtime

(%age)

Call setu

p success rate (%ag

e)

SDCCHI

paging Chl.

Congestion

(%age)

TCH Conges

tion (%age)

Call drop

Rate

(%age)

Vorst affected cells having

more than 3% TCH Drop

Connection with Good Voice

Quality

Point of interconn

ection

<2% <2%>95% <1% <2% <2% <3% >95% <0.5%

1

DEL

HI

RCOM

CDMA 0.14 0.03

98.77 0 0.95 0.79 0.49 98.74 0

2

RCOM

GSM 0.26 0.3599.4

3 0.08 0.19 0.9 0.45 99.1 0

3 Airtel 0.01 099.8

6 0.04 0.06 0.62 0.98 98.99 0

4Etisal

at 1.03 1.9898.7

7 0.11 0.18 1.16 2.89 97.04 0

5 Idea 0.1 0.0299.7

2 0.62 0.79 0.71 2.2 98.06 0

6MTNL CDMA 1.68 1.2 98.7 0.33 0.31 1.68 1.2 98.92 0

7MTNL GSM 0.38 1.6

97.94 0.1 1.27 1.65 2.44 97.97 0

8 MTS 0.06 0.0899.0

7 0 0.21 0.43 0.9 99.98 0

9Vodafone 0.03 0

99.99 0.86 0.87 0.99 3.39 97.66 0

10 Aircel 0.2 1.07 98.1 0.11 0.08 0.79 1.8 97.27 0

11TATA

CDMA 0.01 098.7

4 0 0 0.68 1.77 98.07 0


Customer Service Related Parameters

S.No

Name of servi

ce area

Name of

service

provider

Metering & BillingResponse time to the customer for

assistance

Term ination/ closure of service

Metering and billing

credibility

postpaid

Metering and billing

credibility

prepaid

Resolution of

billing/ chargin

g/ validity complai

nts

Period of

applying credit/ vaiver/ adjustment to

customer's

account from

the date of

complaint

Accessibility of

call centre/

customer care

Accessibility of calls

answered by the operator with in 60 secs

% age requests

for terminati

on/ closure

of service complied

1.00

Time taken

for refund of

deposits

after closur

e

<0.1% <0.1% 100% with in

4 weeks

100% of resoluti

on of complai

nt

>95% >90% 100%100% within 60 days

1

DEL

HI

RCOM CDMA 0.08 0.06 100 100 99.17 93.28 100 100

2RCOM GSM 0.09 0.1 100 100 98.9 91.37 100 100

3 Airtel 0.03 0.03 100 100 99.81 94.74 100 1004 Etisalat 0 0.07 100 100 98.96 98.45 0 05 Idea 0.11 0.01 100 100 99.3 89.06 100 100

6MTNL CDMA 0.01 0 100 100 97.3 0 100 100

7MTNL GSM 0.07 0.01 100 100 99.9 92.4 100 100

8 MTS 0 0 100 100 98.13 95.46 100 100

9Vodafo

ne 0.05 0 100 100 100 97.44 100 10010 Aircel 0.07 0.04 100 100 100 93.8 100 100

11TATA CDMA 0.01 0.01 100 100 98 94 100 100


SERVICE PROVIDER WISE GROWTH IN DELHI

Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Airtel 8450403 8461711 8525943 8589731 8666307 8748943

Reliance 8517087 8524334 8582502 8686907 8653048 8770233

Vodafone 8170241 8210255 8270357 8340459 8415704 8623098

Tata 5387083 4873344 4933285 4856373 4640386 4570698

Idea 4311419 4283768 4353653 4585267 4736999 4764047

Aircel 2305643 2315972 2328051 2364118 2444970 2523574

500000

2500000

4500000

6500000

8500000

GROWTH IN DELHI

Axis Ti

tle



In last 6 months Reliance (CDMA+GSM) is at top in Delhi market where Airtel holds the second position & Vodafone is at third position. All these 3 service providers show the positive growth in past 6 months with subscriber base under 80, 00,000 to 90, 00,000 subscribers. As it is visible Reliance and Airtel has neck to neck competition where on the other hand Vodafone is just behind reliance and Airtel.

On the other hand other 3 service providers are under 40, 00,000 to 60, 00,000 subscribers are Tata, Idea and Aircel. Where Idea & Aircel are constantly growing but in the other side Tata shows the downfall in subscriber base.

Reliance in past 6 months:

In past 6 months reliance has showed good results as it is constantly growing the main reason behind this growth is the less costly plans and special customized plans according to the need of customers. But this subscriber base included CDMA subscribers also where in case of GSM reliance is at 4 th position behind Airtel, Vodafone and Reliance to gain susbcriberbase in GSM also reliance has to work on quality of services provided to subscribers as the quality of reliance GSM is not as good as Airtel and Vodafone has. Reliance has to work on their signal quality and quality of services to make better hold in the market.



Airtel (GSM). 26.78%

Reliance (GSM). 13.75%Vodafone (GSM). 26.39%

MTNL (GSM). 8.45%

Idea (GSM). 14.58%

Aircel (GSM). 7.72%Etisalat DB (GSM). 2.32%

DELHI GSM SPACE


Airtel is the market leader in Delhi GSM space with 26.78% of market share where Vodafone is just behind Airtel with 26.39% of market share. While idea is at 3 rd position with 14.58% of market share and Reliance holds the 4 th position with 13.75% of market share in Delhi.

Reliance is the market leader in Delhi CDMA space but in GSM it holds 4 th position the main reason for Airtel success is the first mover advantage that Airtel is enjoying while Vodafone of earlier hutch have the same privilege. Where in case of CDMA reliance is the first one to enter in the market for that reliance is still enjoying 51% of market share on CDMA space.


SERVICE AREA WISE STATISTICS OF SUBSCRIBERS

ServiceService areaarea

% of% of prepaidprepaid in totalin total

subscribsubscribersers

ARPARPUU

(Rs.(Rs. PerPer

montmonth)h)

OutgoinOutgoing SMSg SMS

perper subscribsubscrib

er perer per monthmonth

O/GO/G MOU/Sub/moMOU/Sub/mo

nthnth

I/CI/C MOU/sub/moMOU/sub/mo

nthnth

TotalTotal MOU/sub/moMOU/sub/mo

nthnth

DelhiDelhi 90.22%90.22% 144144 4747 219219 184184403403

HaryaHaryana na

98.35%98.35% 7676 2424 149149 143143292292

U.P.U.P. (E)(E)

99.1%99.1% 8383 1313 141141 195195336336

U.P.U.P. (W)(W)

98.67%98.67% 7575 2020 136136 150150286286


Delhi has the highest number of postpaid customers in Delhi 9.78% because of this high ratios of prepaid to postpaid Delhi also have highest ARPU of 144 else we can say that Delhi has the most talkative persons outgoing SMS rate is also high in Delhi 47 SMS’s where all other states are at half of below half of that number.

The outgoing MOU is also highest 219 in Delhi. The main reason behind this high usage is living style of people and high adaptation of telecom services. Here people are more adaptive towards telecom services but as of now only 9.78% are using postpaid connections so reliance has huge potential in postpaid sector by converting prepaid customers to postpaid. As it is visible Delhi has high number of postpaid customers this shows Delhi people are more adaptive towards postpaid connection in comparison with


other states this way the chances of conversion from prepaid to postpaid is high. The only thing needs to be done is to tap the right market with right target customers.

As we know revenues (ARPU) are high in case of postpaid connection so by converting prepaid to postpaid companies can also raise their revenues.

Some of the ways by which Reliance can convert prepaid customers to postpaid are as follows

By offering special loyalty bonus to existing customers

Special tariff plans for corporate employees

Customized plans


Q1.

Table: 1

Number of Employees in organization

Options Options Number of RespondentsNumber of Respondents

0-500-50 99

50-10050-100 44

100-150100-150 88

150 or More150 or More 2929

Figure: 1

Number of Employees in organization


less than 5018% 50 - 100

8%

100 - 15016%

More than 15058%

How many employees do you have in your organization?

Q2.

Table: 2

Current Service Provider


VodafoneVodafone 1616

IdeaIdea 22

AirtelAirtel 2525

TataTata 1515

RelianceReliance 2020

OthersOthers 33

Figure: 2

Current Service Provider


Vodafone Idea Airtel Tata Reliance Others0

5

10

15

20

25

30

Which service provider you are currently us-ing?

Q3.

Table: 3

Duration of current Services

OptionsOptions Number of RespondentsNumber of Respondents

Less than yearLess than year 1212

1-3 years1-3 years 99

3-5 years3-5 years 1717

More than 5 yearsMore than 5 years 1212

Figure: 3

Duration of Current Services


0

2

4

6

8

10

12

14

16

18

less than year

1 - 3 Years

3 - 5 Years

More than 5 Years

From how many years you are using your current service provider?

Q4.

Table: 4

Currently Availing Customized Plan


Yes Yes 2424

No No 2626

Figure: 4

Currently Availing Customized Plan


Yes 48%

No52%

Does your existing service provider offer you customized plan?

Q5.

Table: 5

Service use the Most


CallingCalling 4545

InternetInternet 44

SMSSMS 88

OthersOthers 55

Figure: 5


Service use the Most

Calling73%

Internet6%

SMS13%

Others8%

Which service you use the most in your phone?

Q6.

Table: 6

Mobility of Employees


Less than 20%Less than 20% 1111

20-50%20-50% 1818

More than 50%More than 50% 2121

Figure: 6

Mobility of Employees


Less than 20% 20-50% More than 50%0

5

10

15

20

25

Are the employees mobile? If yes, What %?

Q7.

Table: 7

Currently Calling pattern


Inter group CallingInter group Calling 2222

STD CallingSTD Calling 2020

ISD CallingISD Calling 33

Local CallingLocal Calling 2727

Employee SlabsEmployee Slabs 44

Figure: 7

Current Calling pattern


Inter group calling 29%

STD Calling26%

ISD Calling4%

Local Calling36%

Employee Slabs5%

What is the calling pattern in your organiza-tion?

Q8.

Table: 8

Average Monthly Bill


Less than 10,000Less than 10,000 99

10,000-20,00010,000-20,000 1111

More than 20,000More than 20,000 3030

Figure: 8

Average Monthly Bill


18%

22%60%

What is your average monthly telephone bill?

Less than 10,000 10,000-20,000 More than 20,000

Q9.

Table: 9

Problems with Current Service Provider


Billing problemBilling problem 1212

Servicing issuesServicing issues 2222

Other issuesOther issues 1414

No issuesNo issues 22

Figure: 9


Problems with Current Service Provider

Billing problemsServicing issues

Other issuesNo issues

0

5

10

15

20

25

What are the usual problems that you are facing with your current service provider?

Q10.

Table: 10

Information source of Reliance 3G


Internet Internet 99

Family Family 22

FriendsFriends 00

T.V.T.V. 2222

NewsNews 1111

OthersOthers 66


Figure: 10

Information source of Reliance 3G

InternetFamily

FriendsT.V.

News Others

0

5

10

15

20

25

Do you know reliance has launched 3G services? If yes, how?

Q11.

Table: 11

Knowledge about 21MBPS speed at Reliance 3G


YesYes 2323

NoNo 2727

Figure: 11


Knowledge about 21MBPS speed at Reliance 3G

Yes46%

No54%

Do you know you can surf internet at high speed of 21 MBPS at reliance 3G?

Q12.

Table: 12

Currently Using 3G


YesYes 2424

NoNo 2626


Figure: 12

Currently Using 3G

Yes48%No

52%

Are you currently using 3G services?

Q13.

Table: 13

Current 3G Service provider


RelianceReliance 88

AirtelAirtel 99

VodafoneVodafone 77


Figure: 13

Current 3G Services provider

0

1

2

3

4

5

6

7

8

9

Reliance

Airtel

Vodafone

3G SERVICE PROVIDER

Q14.

Table: 14

Current 3G Service


InternetInternet 2121

Social networkingSocial networking 33

Entertainment Entertainment 00

Mobile TVMobile TV 33

Video callingVideo calling 1414

OthersOthers 44


Figure: 14

Current 3G Service

Internet47%

Social networking7%

Mobile T.V.7%

Video calling/ Conferenc-ing

31%

Others9%

Which 3G service you are using?

Q15.

Table: 15

Level of Satisfaction


11 33

22 44

33 77

44 88

55 22


Figure: 15

Level of Satisfaction

1 2 3 4 50

1

2

3

4

5

6

7

8

Rate your level of satisfaction with overall 3G service? (Very high-1 and Very low-5)

Q16.

Table: 16

3G Device


MobileMobile 11

3G Stick/ Dongle3G Stick/ Dongle 2020

OthersOthers 33


Figure: 16

3G Device

Mobile4%

3G Stick/ Dongle83%

Others13%

Which 3G device you are currenlty using?

Q17.

Table: 17

Planning to switch to 3G


YesYes 1313

No No 66

Can’t SayCan’t Say 77


Figure: 17

Planning to switch to 3G

Yes50%

No23%

Can't say27%

If no, are you planning to switch to 3G services?

Q18.

Table: 18

3G Service like to use


Internet Internet 1212

Video CallingVideo Calling 77

Mobile T.V.Mobile T.V. 00

Other ServicesOther Services 66


Figure: 18

3G Service like to use

Internet48%

Video calling28%

Other services24%

If yes, which 3G service you would like to use?

FINDINGSFINDINGS

Out of the corporates analyzed more than 58% have 150 or more employees. Where 18% of corporates have less than 50 employees.

Airtel tops in the list of corporate connection where 25 out of 50 analyzed corporates use Airtel while Reliance holds the second position with 20 out of 50 and Vodafone is at 3rd position with 16 out of 50 corporates. Some of the corporates are also using services of more than one service provider.

It was analyzed that 34% of the corporates are using services of their current service provider form last 3-5 years this shows that corporates are resistive in changing service provider.


48% of the analyzed corporates are currently availing customized plans while 52% of corporates does not offered customized plans.

73% of the analyzed corporates are using phone for calling purpose while 13% use SMS services and 6% use cell phone for Internet browsing.

42% of the analyzed corporates have more than 50% mobile employees while 36% have 20-50% mobile employees. This shows huge potential for 3G and HSDPA Data cards.

The calling pattern in the analyzed corporates shows that 36% of the corporates using phones for local calling while 29% use for intergroup calling and another 26% of the corporates use for STD calling.

60% of the analyzed corporates are heavy users with more than Rs.20, 000 monthly bills where another 22% are mild users with monthly bill in the range of 10,000-20,000.

44% of the analyzed corporates have servicing issues while another 24% have billing problems. Where another 28% have other issues (issues like time taking activation process, long list of docs required etc.)

According to the analyses the most famous source of knowledge about Reliance 3G is T.V. 44% of corporates knows about Reliance 3G through TV while 22% of corporates knows through News. While internet is at 3rd position is spreading awareness about Reliance 3G.

Only 46% of the analyzed corporates knows about 21 MBPS speed in Reliance 3G while 54% is still unknown about 21MBPS speed.

48% of the analyzed corporates are currently using 3G services while 52% is still on 2G technology.

37.5% of the analyzed corporates are currently using Airtel 3G services while Reliance holds 2nd position with 33.33% usage of 3G services where another 29.16% are using Vodafone 3G services by which Vodafone holds 3rd position.


The 2 most famous 3G services between analyzed corporates are Internet and Video Calling/ Conferencing, 46% of the corporates who are using 3G are using it for Internet while another 31% are using it for Video Calling/ Conferencing.

33.33% Rate their 3G experience at 4 in the level of 1 to 5 where 1 stands for unsatisfied customers and 5 is fully satisfied. While 29.16% of corporates Rate 3G experience at 3. Where another 12.5% corporates are completely unsatisfied and 8.33% are fully satisfied.

3G stick/ Dongle is the most commonly used device for 3G services in analyzed corporates. 83% of the corporates are using 3G stick/ Dongle for 3G. Where 13% of analyzed corporates are using other devices for 3G and only 4% are using 3G through mobile.

50% of those 52% corporates who currently are not using 3G services are willing to use 3G services while another 27% are still undecided about 3G services while 23% is not interested in 3G services.

48% of the willing corporates wants to use 3G for Internet while 28% wants 3G for Video calling/ Conferencing. Where another 24% wants 3G for its other services.

CONCLUSIONCONCLUSIONIndian economy is an emerging one and is growing very fast at the average GDP rate 8-9% so in this emerging market competition level among telecommunication services provides new players are coming who will necessarily intensify the competition. New products and new schemes are being offered by the telecom service providers. The need for large information capacity has grown tremendously due to the demand of real time information. Telecommunication has now become a major information transmission system and telecom has undoubtedly emerged as the most important industry in India. Indian telecom companies are putting in their best offer to rope in major telecom operators of the world e.g. Vodafone, Aircel and MTS etc. are playing their role in synergy with the operation of the Indian companies. Process of acquisition and merger are in process and future will be only for those companies who have an edge over others in the field. Service provided and the better quality of network etc. is provided at


affordable cost. In this process of competition it is assumed that only those companies will survive who adopt suitable market strategy and technology innovation and up gradation to suit the aspiration and demand of the consumer.

Reliance Communications ltd. SBU of ADAG Group is very fast catching up with the market by providing cheap calling and Data rates. The market strategies adopted by its executives are bearing fruits and the company currently holds the second position in Delhi corporate space and has found a suitable niche and recognition in the Corporates.

But this is not a thing for self contentment as the survey reveals that Airtel is the market leader in Delhi. Reliance holds second position in Delhi while Vodafone is at third position in Delhi Corporate telecom space. In order to reach at top position Reliance needs to improve its services and upgrade its quality

As per Corporate subscribers quality of services provided is the first & foremost criteria for the selection of particular operator’s service where the tariff is also an important factor in selecting the service provider.

Market access and growth is alright but to reach at top level the improvement of GSM & 3G quality is required as it is necessity of the time.

RECOMMENDATIONS RECOMMENDATIONS

On the basis of extensive study and research, here are some recommendation and suggestion which may help Reliance in acquiring corporate clients more profitably and increase its share in Delhi telecom market.

Corporates rely more on postpaid than prepaid services, so Reliance should continue promoting postpaid connection to higher extent by providing added advantages to corporate clients.


Corporates prefers the best services and they shift to the company, which provide them better service than other. So it is the big weapon for the Reliance in order to increase their market share Reliance has to provide the more as well as better services than the other competitors.

Operational performance should be given the utmost priorities for corporate clients. Such as network capacity, internet speed & download capacity.

The other thing, which influences the service user more, is the cost of the service. Indian consumer is very cost conscious and like to prefer the services which are more economical for them so Reliance should try to provide the services at the minimum cost.

There should be more visibility about corporate plans and offerings for corporates on Reliance Communications website.

Advertising have a huge effect on the perception of the consumer about the service of a particular service provider. Advertisement helps in creating a brand image of the company in the mind of the consumers so it effects their choice about the service.

Date:-____/____/____

Company’s Name: -_________________

Name: - __________________________

Contact No: -______________________

Email I.D.: - _______________________

Q1. How many employees do you have in your organization?

a) 0-50 c) 100-150


b) 50-100 d) 150- More than 150

Q2. Which service provider you are currently using?

a) Vodafone c) Airtel e) Relianceb) Idea d) Tata f) Others

Q3. From how many years you are using your current service provider?

a) Less than 1 year c) 1-3 Yearsb) 3-5 years d) More than 5 years

Q4. Does your existing service provider offer you customized plans?

a) Yes b) No

Q5. Which service you use the most in your phone?

a) Calling c) SMSb) Internet d) Other Services

Q6. Are the employees mobile? If yes, what %?

a) Less than 20% b) 20-50% c) More than 50%

Q7. What is the calling pattern in your organization?

a) Inter group calling c) ISD calling e) Employee Slabsb) STD Calling d) Local calling

Q8. What is your average monthly telephone bill?

a) Less than 10,000 b) 10,000-20,000 c) More than 20,000

Q9. What are the usual problems that you are currently facing with your service provider?

a) Billing Problem c) Servicing Issues c) Other issues

Q10. Do you know reliance has launched the 3g services? If yes, how?

a) Internet c) Friends e) Newsb) Family d) T.V f) Others

Q11. Do you know you can surf internet at high speed of 21 MBPS on reliance 3G?

a) Yes b) No

Q12. Are you currently using 3g services?


a) Yes b) No

Q13. If yes, which is your service provider?

a) Reliance b) Airtel c) Vodafone

Q14. Which 3g service you are using?

a) Internet c) Entertainment e) Video Calling/ Conferencingb) Social Networking d) Mobile T.V. f) Others

Q15. Rate your level of satisfaction with overall 3g service? (E.g: Very high -1 and very low -5)

1 2 3 4 5

Very high Very Low

Q16. Which 3g device you are using?

a) Mobile b) 3G Stick/Dongle c) Other

Q17. If no, you are planning to switch to 3g service?

a) Yes b) No c) Can’t say

Q18. If yes, which 3g service you would like to use?

a) Internet c) Mobile T.V.

b) Video Calling d) Other Services


REFERENCESREFERENCES

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[4] Buckinx W., Verstraeten G., Van den Poel D.: Predicting customer loyalty using the internal transactional database. Expert Systems with Applications xxx (2005)

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http://www.ft.com/cms/s/

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[10] McLeod, D. (2007). “Breakthrough nears” Financial Mail, 8 June 2007 [Online]http://free.financialmail.co.za/ (Accessed: 8 June 2007).

[11] Mobile Messaging Analyst. (2007b). Mobile e-mail the messaging application to watch in 2008. Mobile Messaging Analyst, November 2007.

[12] MobileYouth. (2008). mobileYouth® 2008 report (2) – marketing & advertising, Vodacom Intranet [Online]. Available at: h tt p: / / v o d ac t l s 1/ w i zca t / S ea r c h _2006_ New _look/adv_search_response.asp (Accessed: 25 Sep 2008).

[13] Pindyck R., Rubinfeld D. Econometric models and econometric forecasts. Irwin/McGrawHill (1998). ISBN 0071188312

[14] Vecchiatto (c), P. (2008). “Telcos battle for corporate pie”. ITWeb, 4 August 2008 [Online] Available at: h tt p: / /ww w . i t w e b . c o . za / s ec t i o n s / t e l ec o m s /2008 / 0 8 08041048 . a s p ? O=FPTOP&S=Business&A=B US (Accessed: 13 Sep 2008).

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http://vodactls1/wizcat/Search_2006_

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