Report on Reliance Telecomunication

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    ACKNOWLEDGEMENT

    It is our great privilege to express a deep sense of gratitude and regard to Director Sir

    Dr.G.C.Patro, PGP coordinator Prof.Umakant Nayak and our guide Swapna Dayal kolluru. She

    encouraged us to make a report which will be very helpful in coming summer project. For

    providing assistance in data collection we are thankful to distributor of Parlakhemundi without

    which we could not have finished the report.

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    DECLARATION

    We hereby declare that project report PENETRATION OF RELIANCE

    TELECOMMMUNICATION is an honest attempt, to put entire findings on actual data gathered

    through survey of Parlakhemundi market and mobile users in CSREM hostel.

    The work presented is our original work and has not been copied from any other sources. This

    project has not been submitted for the award of any other degree from any bother institutionneither in full nor as a part and has not been published anywhere else before.

    Parlakhemundi Vijay Kumar (s0963)

    Date: Vindhyachal (s0964)

    Subahu Kumar (s0951)

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    INDEX

    ACKNOWLEDGEMENT 1

    DECLARATION 2

    INDIAN TELECOME INDUSTRY 4-7

    OBJECTIVE 8

    METHODOLOGY 9

    COMPANY PROFILE 10

    BOARD OF DIRECTOR 11

    COMPANY VISION 11

    DISRRIBUTION CHANNEL 12

    TELECOMUNATION PROBLEM IN PARLAKHMUNDI 13

    ANALYSIS 14-26

    FINDINGS 27

    CONCLUSION 28

    ANNEXURE 29-31

    REFERENCE 32

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    INTRODUCTION

    INDIAN TELCOM INDUSTRY

    The Indian Telecommunications has more than with 225 million telecom subscribers. Today, it

    is the fastest growing market in the world and represents unique opportunities for U.S.

    companies in the stagnant global scenario. Every month, 6-7 million new subscribers are added.

    In the last 3 years, two out of every three new telephone subscribers were wireless subscribers.

    Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as

    compared to only 40% in 2003. The wireless technologies currently in use are Global System

    for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are

    primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4

    metro cities, covering 2000 towns across the country.

    TRAI had earlier announced that India will cross the 500 million Telecom subscriber mark by

    mid next year (2010), but there is a very strong chance that it will happen by end of this year

    itself. Thanks to mobile telephony growth.

    Following Charts and Graphs will showcase the explosion of Indian Wireless Subscriber growth

    in more detail.

    Indian Telecom (Wire line+ Wireless) Snapshot

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    Indian Wireless Subscriber Snapshot

    Compared to a near negative growth of Wire line phones, Wireless are growing at close to 13%

    quarter on quarter and it is astonishing that this growth comes when monthly India is adding at

    an average of 10 million mobile subscribers.

    Indian Mobile Subscriber Growth

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    In 5 years, India has gone from 33 million mobile subscribers to close to 400 million. The

    Mobile subscribers have reached 391.76 million as on 31st March 2009 as against 346.89

    million subscribers in the previous quarter. During this quarter 44.87 million wireless

    subscribers were

    added.

    Market Share of GSM VS CDMA

    There were 297.26 million GSM Mobile subscribers (75.88%) compared to 94.50 million

    CDMA subscribers(24.12%) at the end of March 2009.

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    GSM Subscriber Growth

    The GSM Mobile subscriber base reached 297.26 million in the quarter

    ending March 2009 as against 258.23 million at the end of the previous

    quarter.

    CDMA Subscriber Growth

    The CDMA Mobile subscriber base reached 94.50 million in the quarter

    ending March 2009 as against 88.66 million at the end of the previous

    quarter.

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    OBJECTIVE

    Objective of study-To know about market share of Reliance telecom in Parlakhemundi.

    Potential of acceptance of any new service provider entering the market.

    To know about which service provider is in more demand and reason behind that.

    To know about telecom market in rural area and analyzing their past growth.

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    METHODOLOGY

    DATA COLLECTION-Primary source-Survey of Parlakhemundi market and respondent of

    CSREM HOSTEL

    SECONDARY SOURCE-For data collection about Indian telecom industry sources are

    Business standard sites, for making company profile Reliance telecom site has been used.

    SAMPLE SIZE- Whole population of distributor in Parlakhemundi, among respondent in

    CSREM hostel

    SAMPLING METHOD:

    For Hostel: Random sampling is utilized.

    For distributer: we have done census method

    SAMPLE AREA Parlakhemudi municipality of Gajpati district

    STATISTICAL TOOLS: for statistical analysis we have utilize following tools

    Univariate table Bar diagram Line graph Pie chart

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    COMPANY PROFILE

    Reliance telecom is a flagship company of Reliance Anil Dhirubhai Ambani Group. It was

    started in 1994 when it started its operation in 7 circles. May 2003 is the turning point for the

    company because from this very year it started providing nationwide service. It is Indias

    largest integrated and fully converged communications service provider with over 35million

    individual, enterprise and carrier customers in India and across the world .Its pan- Indian

    operations span for the full spectrum of wireless, long distance, voice, data, video and internet

    communication services. It offers a comprehensive international portfolio through a submarine

    cable network that spans 4 continents and 40 countries.

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    BOARD OF DIRECTOR

    Sri Anil Dhuribhai Ambani-Chairman Prof J Ramachandran Sri S.P. Talwar Sri Deepak Shourie Sri A.K Purwar

    COMPANY VISION

    According To the Company-

    We will leverage our strengths to execute complex global-scale projects to facilitate leading-

    edge information and communication services affordable to all individual consumers and

    businesses in India.

    We will offer unparalleled value to create customer delight and enhance business productivity.

    We will also generate value for our capabilities beyond Indian borders and enable millions of

    India's knowledge workers to deliver their services globally.

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    DISTRIBUTION CHANNEL

    COMPANY DISTRIBUTER RETAILER CONSUMER

    SHOP NAME Sales (monthly) Max v.sales (smart) Customer demand

    M gift house 30000 10,29,30 BSNL

    Shree 50000 110,30 BSNL

    Shree mobile 100000 30,29,110 RELIANCE

    Mobile,Karan street 70000 10,29,30,110 RELIANCE

    Maa kalua house 120000 29,30,110 BSNL

    Nutty corner 90000 30,29,110 BSNL

    Maximum Usages-BSNL and RELIANCE

    BSNL and RELIANCE Company are the main competitor In parlakhmundi market. But

    reliance provide better offer as compare to other service provider. Retailer get 3% margin from

    the service provider.

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    TELECOMUNATION PROBLEM IN PARLAKHMUNDI

    Lacks of network facility due to the cause of many of the people are using relianceservices.

    The main problem in both reliance and BSNL unnecessary cutting balances .when theyare call after sometimes balance are decreasing in unexpected way.

    Reliance office in parlakhmundi is very small but the customer rate is very high.Consumer are facing many problem like connection cutting, document lost etc.

    Retailers are facing shortage of voucher, delay in the connection opening , documentverification.

    Lack of Proper distribution channel.

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    QUESTIONNAIRE USED IN SURVEY

    1. Age of the Respondent

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    17 yrs- and

    Below

    17 -25yrs 26-34yrs 34-45 yrs 45 yrs- and

    above

    0

    9

    3 3

    0

    NUMBER

    Age Number

    17 yrs- and Below 0

    17 -25yrs 9

    26-34yrs 334-45 yrs 3

    45 yrs- and above 0

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    2. Gender - Male Female

    Gender NumberMale 12Female 3

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    3. Educational qualification

    SSC/HSE Bachelor degree Master degree Professional degree Others

    Educational qualification Number

    SSC/HSE 1

    Bachelor degree 6

    Master degree 1

    Professional degree 6

    Others 1

    0

    1

    2

    3

    4

    5

    6

    7

    SSC/HSE Bachelor degree Master degreeProfessional degree Others

    Series 1

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    4. From which service provider you are taking services

    Airtel Reliance Vodaphone Tata indicom BSNL

    Company Number

    irtel 3

    Reliance 9

    odaphone 0

    Tata indicom 0

    BSNL 3

    Reliance is the leading the market followed by airtel and bsnl

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    5. What type of connection do you use for your cell phone?

    Pre-paidPost-paid

    Connection type Number

    Pre-paid 15

    Post-paid 0

    Postpaid almost absent from the market

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    6. Your expenditure on mobile service you are taking

    Rs200 Less Rs200-Rs500 Rs500-Rs800 Rs 800-Above

    Expenditure Number

    Rs200 Less 5

    Rs200-Rs500 4

    Rs500-Rs800 4

    Rs 800- bove 2

    Majority of the respondent are expending 200 and less on telecommunication service

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    7. Why did you choose the service provider?

    Less service chargeLarge number of offersBetter networkAny other

    Reason Number

    Less service charge 3

    Large number of offers 7

    Better network 5

    ny other 0

    Most of the customer are attracted by large number of offer after that they give preference to

    better network.

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    10. Satisfaction from customer care service

    1Very

    Satisfied

    2

    Satisfied

    3

    Indifferent

    4

    Dissatisfied

    5

    VeryDissatisfied

    Level number

    ery Satisfied 0

    Satisfied 12

    Indifferent 1

    Dissatisfied 2

    ery Dissatisfied 0

    0

    12

    1

    2

    0

    0 2 4 6 8 10 12 14

    Very Satisfied

    Satisfied

    Indifferent

    Dissatisfied

    Very Dissatisfied

    Series 1

    Almost all respondent are satisfied with their service provider, but even a single one not said

    that they are very satisfied.

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    11. Would you open to take service from a new service provider that is totally new in the

    market? Yes No Does not know/ not sure

    Yes 9

    No 6

    Does not know/ not sure 0

    Majority are ready to accept the new entrants in the market.

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    12. Please indicate the central purpose for taking this service

    Entertainment Official purpose Internet Any other please specify

    Purpose Number

    Entertainment 4

    Official purpose 7

    Internet 2

    other please specify 2

    4, 27%

    7, 47%

    2, 13%

    2, 13%

    Column1

    Entertainment

    Official purpose

    Internet

    other please specify

    Main purpose for using mobile by respondent is official purpose followed by entertainment.

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    13. How long have you been using the service?

    Less than 6 months Between 6 -12 months Between 13-18 months Between 18-24 months More than 24 months

    Less than 6 months 0

    Between 6 -12 months 3

    Between 13-18 months 4

    Between 18-24 months 2

    More than 24 months 6

    0

    3

    4

    2

    6

    0 1 2 3 4 5 6 7

    Less than 6 months

    Between 6 -12 months

    Between 13-18 months

    Between 18-24 months

    More than 24 months

    Series 1

    Series 1

    Most of the customers are using mobile service for more than two year.

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    14. Which service you use?

    CDMA GSM

    SERVICE NUMBER

    CDMA 2

    GSM 13

    In the Parlakhemundi market major market share is of GSM.

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    16. Are you loyal to the current brand of mobile service provider?

    Continue With same company Continue with the same company even if you are dissatisfied Change over to the other company Discount using cell phones altogether

    Continue With same company 14

    Continue with the same company even ifyou are dissatisfied

    0

    Change over to the other company 1

    Discount using cell phones altogether 0

    Most of the customers are ready to continue with the same company from which they are

    taking service

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    FINDINGS

    Maximum number of respondent is of 17-25 age groups. Among the respondent 80% were male and 20% female. Educational qualification of respondent having bachelor degree and professional degree is

    equal

    Reliance is leading the market, airtel and bsnl having equal share in market according tothe data collected but on interviewing various distributors we found maximum demand is

    of bsnl due to early occupying the market and better network facilities.

    Postpaid service is completely absent from the market reason as we found is lackingknowledge among customer, though many distributor said many service provider is not

    providing this facilities but bsnl is providing this facility from very early but it is actually

    lacking promotion facilities so there is less awareness among customer.

    From the above bar chart we see customer are more sensitive towards price because mostof the customer are spending less than rs.200 but there may be one more reason behind it

    i.e. Large number of offer and various tariff facilities provided by different service

    provider. People are more attracted by large number of offer in comparison to better network while

    choosing any service provider.

    major percentage of the sample size are satisfied from which they are taking service. 60% of respondent are ready to accept any new service provider entering the market. Main purpose for using mobile is official purpose followed by entertainment. Internet

    purpose lagging behind these two. Among other reason main purpose is talking.

    Majority of the customer are using mobile phone from more than two year. Major proportion of customer wants to continue with the same service provider the reason

    behind it may be they have spread same sim card among their relatives to enjoy the

    benefits provided by the company eg.airtel 5 to 5, bsnl number at low rate

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    CONCLUSION

    The Indian market has been experiencing an extremely strong growth phase in mobile

    telephony. However, this now needs to be replicated across other telecom segments, such as

    broadband in order to maintain growth. Operators have also recognized the key role that rural

    markets will play in future growth and the need for communications services to address

    localized issues.

    The advent of 3G networks is likely to provide a significant fillip to the growth of mobile

    broadband and advanced data services. At the same time, operators in India are continuously

    innovating to ensure that margins remain high in a market where Average Revenues Per User

    (ARPU) are continually declining. The Indian Government recognizes that a proactive

    regulatory and policy environment is the need of the hour, and is taking action to support the

    Indian telecom growth story to the next level. And this growth story is going to be led, for a

    change, by the vast untapped rural markets of India.

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    ANNEXTURE

    The questionnaire for penetration of reliance telecommunication market inparlakhemundi

    1. Name.

    2. Age 17 yrs- and Below 17 -25yre 26-34yrs 34-45 yrs 45 yrs- and above3. Gender - Male Female4. Educational qualification

    SSC/HSE Bachelor degree

    Master degree Professional degree Others5. From which service provider you are taking services

    Airtel Reliance Vodaphone Tata indicom BSNL6. What type of connection do you use for your cell phone? Pre-paid Post-paid7. Which type of problem you are facing in postpaid connection?

    Bill Payment Never get Bill on time Charged Wrongly Never get Bill Not Applicable

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    8. Your expenditure on mobile service you are taking

    Rs200 Less Rs200-Rs500 Rs500-Rs800 Rs 800-Above9. Why did you choose the service provider?

    Less service charge Large number of offers Better network Any other

    10. Satisfaction from customer care service

    1Very

    Satisfied

    2Satisfied

    3Indifferent

    4Dissatisfied

    5VeryDissatisfied

    11. Would you open to take service from a new service provider that is totally new inthe market?

    Yes

    No Does not know/ not sure12. Please indicate the central purpose for taking this service

    Entertainment Official purpose Internet Any other please specify13. How long have you been using the service?

    Less than 6 months Between 6 -12 months Between 13-18 months Between 18-24 months More than 24 months14. Which service you use?

    CDMA

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    GSM15. How many time you visited customer care center?

    16. Are you loyal to the current brand of mobile service provider?

    Continue With same company Continue with the same company even if you are dissatisfied Change over to the other company Discount using cell phones altogether

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    REFERENCE

    www.hindustantimes.com www.Rcom.co.in thehindubusinessonline.com