RESEARCH PROJECT REPORT ON Study on Telecommunication Sectors in the post five year with special to Docoment at reliance Communication

Submitted in partial fulfillment of the requirement for Three year

BACHELOR OF BUSINESS ADMINISTRATION (2009-2012) of Mahatma Gandhi Kashi Vidyapith Varanasi

SUBMITED TO Mr. Shubhagata Roy Senior Lecturer, SMS SUBMITED BY M.D. Shahnawaj Alam Exam Roll No. 11410060063 BBA 6th Semester

(SCHOOL OF MANAGEMENT SCIENCES, VARANASI)

DECLARATION

I M.D. Shahnawaj Alam.hereby declare that the information presented here is correct to the best of my knowledge and the analysis is as per the norms and guidelines provided for the report. I have utilized the requisite concepts and applied the required methodologies to analyze the primary data collected to reach the conclusion present in the report. I claim the report to be my indigenous work and have not been presented anywhere for any purpose what so ever.

M.D. Shahnawaj Alam B.B.A 6th Semester SMS,Varanasi

ACKNOWLEDGEMENT
It is indeed a moment of immense gratefulness for me to express my deepest gratitude to the faculty of SMS for providing me with any opportunity to carry out this survey and help me create survey report on STUDY ON TELECOMMUNICATION SECTORS IN THE POST FIVE YEAR WITH SPECIAL TO DOCOMENT AT RELIANCE COMMUNICATION

I am immensely grateful to Prof P.N. Jha (Director of SMS) for providing me opportunity to prove my skills and shoulder the responsibilities through this survey report. I would also like to convey my sincere gratitude to co-coordinator Mr. Atish Khadse and my project guide Mr. Shubhagata Roy. for his valuable guidance and suggestions while pursuing the project and for taking pains to give his valuable inputs to structure the report. Without his help and valuable inputs and guidelines, the completion of this project would not have been possible.

I am highly indebted and thankful to each and every person who devoted valuable time out of their busy schedule to fill-up the questionnaire in the time. I am also thankful to our faculty and classmates for their suggestion and support to undertake this work and also during the course of study.

M.D. Shahnawaj Alam B.B.A 6th Semester SMS, Varanasi

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PREFACE

It is great privilege for me to place this report before the reader. This report is concern with STUDY ON TELECOMMUNICATION SECTORS IN THE POST FIVE YEAR WITH SPECIAL TO DOCOMENT AT RELIANCE COMMUNICATION This project is done to know about their prospects in the coming time. This project has been completed with the help of many people who guided through thick and thin and provided me every kind of support in completing my project. At last I want to give my thanks to everybody who has co-operated me a lot in completing my project.

CONTENTS
CHAPTER-I INTRODUCTION OF THE STUDY OBJECTIVES OF THE STUDY SCOPE OF THE STUDY METHODOLOGY OF STUDY LIMITATIONS OF THE STUDY

CHAPTER-II INDUSTRY PROFILE

CHAPTER-IH COMPANY PROFILE

CHAPTER-IV THEORETICAL FRAME WORK

CHAPTER-VI FINDINGS SUGGESTIONS

BIBLIOGRAPHY

INTRODUCATION TELECOM: The word Telecom (which is an abbreviated version of ' telecommunication) in real sense refers to the transfer of information between two distant points in space. This meaning however, has been subjected to modifications in accordance with further innovations made be the Telecom Industry. Industry: A clear indication of the way in which human effort has been harnessed as a force for the commercial production of goods and services is the change in meaning of the word industry. Coming from the Latin word industrial, meaning "diligent activity directed to some purpose," and its descendant, Old French industries, with the senses "activity," "ability," and "a trade or occupation," our word (first recorded in 1475) originally meant "skill," "a device," and "diligence" as well as "a trade." Industry analyses: An Industry Analysis is an assessment of the profitability of an industry. In order to perform this assessment, your objective is to characterize the driving forces of competition within an industry. The purpose of this analysis is to help management create and maintain a competitive advantage that allows the company to excel in the industry. The purpose of industry analysis is to review prevailing conditions within specific industry and its segments. The company's industry obviously influences the outlook for the company. Even the best stocks can post mediocre returns if they are in an industry that is struggling.

TELECOM INDUSTRY The Indian telecommunications sector has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth. It is the fastest growing telecommunication market in the world, and with 264.77 million telephone connections, is the third largest telecom market and the second largest among the emerging economies of Asia with an average growth of over 90%. In fact, India has achieved its target of reaching 250 million telephone subscribers by 2007, two months before time. Simultaneously, overall tele-density has increased to 23.21 percent. Today, the Indian telecom industry represents unique opportunities for U.S. companies in the stagnant global scenario. According to Broadband Policy 2004, Government of India achieves the target of 9 million broadband connections and 18 million internet connections in 2007. 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. Wireless subscriber growth has bypassed 2.5 million new subscribers per month in the 2007. 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 more than 2300 towns across the country.

HISTORY In 1880, two telephone companies namely The Oriental Telephone Company Limited and The Anglo-Indian Telephone Company Limited approached the Government of India with the objective of establishing Telephone Exchanges across the country. Initially, the Government denied the permission as it wanted to exercise its monopoly power over the promising industry once it emerged. By the following year, it changed its decision and finally on 28 the January, 1882, license was granted to The Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai and Ahmadabad.

Evolution of the industry-Important Milestones History of Indian Telecommunications YEAR 1851 1881 1883 1923 1932 1947 First operational land lines were laid by the government near Calcutta (seat of British power) Telephone service introduced in India Merger with the postal system Formation of Indian Radio Telegraph Company (IRT) Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC) Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system) Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in Metropolitan areas. Telecom Regulatory Authority of India created. Cellular Services are launched in India. New National Telecom Policy is adopted. DoT becomes a corporation, BSNL

1985

1986

1997 1999 2000

2001

Convergence Bill to promote, facilitate and develop the carriage and content of communications tabled in the Parliament. Policy for GMPCS service has been announced. Policy for PMRTS has been announced. Policy for UMS was announced.

2002

VSNL came under private management. International Long Distance Service opened for private competition. Internet telephony was started.

Targets (by 2010):

500 million telephone connections Broadband: 20 million subscribers Geographical coverage: 90% Rural Connections: 80 million

Scope

Showcase the latest products, formulation and capabilities. Opportunities for transfer of technology, setting up of R&D base with International firms. Joint ventures, collaborations and investment opportunities. Supply of machineries, process control equipments, projects and services etc. One-to-one business meetings and networking opportunities.

Indian Economy An economy is the system of human activities related to the production, distribution, exchange, and consumption of goods and services of a country or other area.

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The composition of a given economy is inseparable from technological evolution, civilization's history and social organization, as well as from Earth's geography and ecology, India's economy is on the fulcrum of an ever increasing growth curve. With positive indicators such as a stable 8-9 per cent annual growth, rising foreign exchange reserves, a booming capital market and a rapid rise in FDI in the last year, India has emerged as the second fastest growing major economy in the world. The economy has been growing at around 9 per cent in the past two years recording a growth rate of 9 per cent and 9.4 per cent in 2005-06 and 2006-07 respectively. Significantly, the industrial and service sectors have been contributing a major part of this growth, suggesting the structural transformation underway in the Indian economy. For example, industrial and services sectors have logged in a 10.9 and 11 per cent growth rate in 2006-07 respectively, against 9.6 per and 9.8 cent in 2005-06. Similarly, manufacturing grew by 9.1 per cent and 12.3 per cent in 2005-06 and 2006-07 and trade, hotel, transport and communication recorded a growth of 10.4 per cent and 13 per cent, respectively. Independent Indias economic development program has been based on the key objectives of self-reliance and social equity. Till the eighties, Indias industrial policy created Indias industrial base under a system of licensing, strict foreign exchange controls and excessive protection from imports, which protected even inefficient and internationally non-competitive enterprises. In 1991 the Central Government embarked on a program of economic liberalization. This included, among others removal of governmental control, rationalization of regulation, attracting Foreign Investment. The government has also identified the infrastructure sector (Power, Telecommunications, and
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Transportation) as a key target and is taking steps to attract investments in the area. Encouraged by economic developments over the past decade, the government is committed score a GDP growth rate 9% by the year 2005. The fact is that the Indian economy is growing faster than ever before. Between 1992-93 and 1997-98, India's GDP at 1980-81 prices has recorded a trend growth rate of 5.4 per cent. Never once has the growth rate fallen below 5 per cent since 1991-92 when it grew by only 1 per cent and when the economic liberalization process started. Telephones in Rural and Remote Areas Promotion of rural telephony and accessibility of telephones to remote areas is an important thrust area of the department. The Universal Service Obligation Fund (USOF) of India is one of the few operational USO Funds in the world. The scope of USOF covers rural and remote areas with public access and individual household telephones in Net High Cost rural and remote areas. Under USOF, a scheme has been launched by the Government to provide support for setting up and managing 7871 number of infrastructure sites spread over 500 districts in 27 states of the country for the provision of mobile services. The infrastructure so created, shall be shared by three service providers for provision of mobile services including other Wireless Access Services like Wireless on Local Loop (WLL) using Fixed/Mobile terminals in the specified rural and remote areas, where there is no existing fixed wireless or mobile coverage. Mobile services through these shared towers are targeted to be made operational in a phased manner by May 2008. Broadband Recognizing the potential of Broadband service in the growth of GDP through enabling the development of knowledge based society, the government has announced Broadband Policy 2004. Several measures have since been taken to promote broadband in the country. As a result of these measures, broadband subscribers grew from a meager 0.18 million as on 31, March 2005 to 2.61 million, up to September 2007.

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INVESTMENT AND GROWTH In 2005-2006, the telecom industry witnessed a growth of 21% with total revenue of Rs. 86,720 crores, and the total investment rising to Rs. 2, 00,660 crores. It is projected that the telecom industry will be enjoying over 150% growth in the next 4-6 years. The growth also requires a huge investment by the players in the sector. Bharti Airtel is planning to invest about $8 billion by the year 2010. Liberalization policy and some socio-economic factors are mainly responsible for the immense growth in the sales volumes. The lifestyle of the people has changed. They need to be connected to the other people all the time. With the lowering down of the tariffs the affordability of the mobile phones has increased. The finance sector has also come up with loans for handsets on 0% interest. Mobile services providers are also expanding their coverage area by installing more and more antennas and other equipments. Budget 2007 has brought disappointment to the telecom sector. Mobile service providers have been asked to cut down their roaming rentals as well as their long distance and international call tariffs. This has led to discontent on the part of the service providers. However, Telecom Regulatory Authority of India (TRAI) is of the opinion that this will lead to increased use of roaming, which will ultimately lead to more revenue generation. Moreover, with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. The Total Market (TM) for semiconductors in India in 2005 is estimated at $2.82 billion and the telecommunications market accounts for about 45.4 percent of the TM. The Total Available Market (TAM) for semiconductors in India was valued at $1.14 billion in 2005 and the telecommunications market accounts for 8.0
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percent of the TAM. Bulk of the telecommunication equipment is imported as CBUs and SKDs. The larger share of the imports in the telecommunication market reflects in the higher TM and lower TAM. The study is comprehensive and it covers all the major telecom products contributing the semiconductor TM and TAM. The major markets of the telecommunication industry that are covered in this study include Wireless handsets (GSM and CDMA), Wireless infrastructure equipment , Wire line switches, Access network equipment, Electronic push button telephones, PBX systems, Modems and VoIP phones. The wireless handsets and wireless infrastructure equipment together hold major share of about 88 percent of the telecommunication TM in 2004. However, with respect to TAM, wire line switches are the major segment due to the presence of domestic manufacturing base.

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Telecoms and Indias Growth Communications is the fastest growing sector in Indias economy. The average compound rate of growth of the economy works out to 24.02 per cent per annum since the turn of this millennium (Table 2). No other sector of the economy has clocked such a rate of growth. The sector accounts for about 4 per cent of GDP and the recent high rate of growth has contributed to about 11 per cent of the growth in overall GDP of the country. In information and communications technology (ICT), it is again communications that is more important. This is evident from a dataset on ICT spending developed by World Information Technology and Services Alliance (2006), of the total spending on ICT by India, about 63 per cent was in communications. The communication sector comprises both services and equipment manufacturing, although in the above characterization the data refers only to the services segment. The domestic production of telecom equipments has shown some impressive increases during the period since 2001, but it accounts for only about 15 per cent of the total telecoms industry. With some fluctuations, the equipment sector is slowly seeing a decrease in its share in the total revenues of the telecommunications industry. Dimensions of Growth In 1991, India had just five million telephone subscribers. As at the end of July 2007, there were 233 million subscribers, an average annual growth rate of over 27 per cent per annum. No other country in the world, other than China, has shown such high rates of growth (see Table3). Teledensity too which was below one telephone per 100 population has now risen sharply to about 20. Among the infrastructure industries, telecommunications is the only one that has shown significant improvements over the reform period. Consequently, it is generally opined that a revolution of sorts is taking place in the Indian telecoms industry. There are at least seven dimensions of this growth performance that merit our attention.
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(i) Dominance of Wireless Technology: The Indian telecom sector is now heavily dominated by wireless technologies, which include cellular mobile and fixed wireless technologies. In fact, almost the entire increase in the availability of telephones has been contributed by wireless technologies. India has one of the highest ratios of wireless to wire-line services, which is now almost five (Table 3, p 39). In fact what is interesting is that since 2005, the wire-line services have started falling. A number of factors explain this decrease in the popularity of fixed telephones, which has now become a worldwide trend. This heavy reliance of wireless technologies, while extremely positive from the availability point of view, has some implications for the diffusion of the internet in the country. This will be analyzed in some detail in one of the subsequent sections. (ii) Growing Market for Telecom Handsets: As a corollary of the above, it is seen that there has been a steady increase in the average number of mobile subscribers per month since 2003. In 2003, on an average 1.5 million new subscribers were added to the existing stock. This increased to 6.4 million until September 2007. These large increases in the number of mobile handsets have strong positive implications for the telecom equipment industry and specifically the mobile handsets industry, which means that close to six million handsets are being sold every month. Consequently, a huge domestic market for telecom equipment has suddenly emerged in the country spawning the creation of a significant manufacturing base. Chennai has become a thriving cluster for mobile handsets manufacturing and this has important implications for the downstream industries such as the semiconductor industry. This point will be discussed at some depth in the fourth section. (iii) Increasing Privatization: The share of the private sector in the overall telecoms industry has been raising and the ratio of private to public actually crossed unity in 2006. This again is due to the fact
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that the public sector is more dominant in wire-line (or fixed) and the private sector is dominant in the wireless (mobile) segment. This sort of a structure is largely the product of historical reasons. The two public sector service providers (BSNL and MTNL) dominated the wire-line sector, while the private sector was able to dominate the new wireless technology. In fact it was only in the late 1990s, early 2000s that the government allowed the public sector entities to provide wireless communication services. (iv) Competition Fixed v/s Mobile and GSM v/s CDMA: An interesting feature of the industry is that after a very long time, it has suddenly become very competitive. There are three dimensions to this competition. First, it is competition between two standards or technologies, namely, the Global System for Mobile Communications (GSM) v/s Code Division Multiple Access (CDMA) standards. Second, it is competition between various service providers, although this competition was restricted to public policy designed spaces or markets known as telecom circles. A yet another dimension is the type of market. There are essentially three types of markets based on the geographic coverage of the service. They are: (i) the local telephone market; (2) long distance or national telecom services; and (3) foreign or the overseas market. We focus here on all the three dimensions of competition between the service providers. Competition in Fixed and Mobile Technologies: The markets for mobile services are much more competitive than the one for fixed line services. In the latter, the incumbent service provider, BSNL continues to have the lions share of the market. However, the existence of mobile communication services has made the market for fixed line services contestable and as a result despite high concentration, the prices of fixed telecom services kept falling or kept under check over the last five years or so.
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(a) Competition in Fixed Telephone Services: If one goes by overall summary measures of domestic competition, the market for fixed telephone services is much more concentrated than the one for mobile services. For instance (as on May 31, 2007), The market for fixed telecom services is highly concentrated in all the telecom circles, although in seven of them, namely, Delhi-NCR, Chennai, Madhya Pradesh, Mumbai, Punjab and Karnataka, the H-Index has a value less than 0.8. Of course, this does not mean that the market for fixed telecom services is not competitive. There are two dimensions to this level of competition for fixed services. First, the consumers are increasingly substituting mobile for fixed services, so the fixed service providers face intense competition from mobile services. Second, the existence of the telecom regulator too has acted as a check on the dominant service provider, Bharat Sanchar Nigam (BSNL), from charging high prices. Instead what one sees is a significant improvement in the performance of BSNL during this period.1 First of all, BSNL is one of the leading profit-making central public sector enterprises in the country: in 2005-06 it made a net profit of Rs 8,940 crore one of the few non-oil public sector enterprises (PSEs) in the top 10 profit-making PSEs in the country. Three areas where the firm has made performance improvements are: (i) considerable reductions in the number of consumers on the waiting list for a connection; (ii) reductions in the number of faults per subscriber; and (iii) number of personnel per 1,000 subscribers. On all the three indicators BSNL has made substantial progress [Department of Telecommunications 2007] and I argue that this is entirely due to the force of competition leading to efficiency gains for this rather monopolistic firm which has had a previous history of being completely impervious to the demands of consumers. (b) Competition in Mobile Services Industry: Compared to the fixed services, the mobile services industry has a number of distinguishing features. First, the industry started as one dominated by private sector enterprises and the government religiously followed a policy of managed competition by
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licensing more than one service provider in a telecom circle. In fact majority of the 28 circles have at least four services providers and in a number of cases there are six service providers well. In short, right through inception the government envisaged an oligopolistic form of competition. Second, most of these private sector enterprises had some of foreign equity holding of sorts. Third all of them are based on new technologies that were state-of-the art. Fourth, the conduct of the industry was, relatively speaking, more regulated by the newly created independent regulatory agency, the Telecom Regulatory Authority of India (TRAI). Fifth, it is the rapid growth of this industry that has catapulted the communications sector into one of the major growth-contributing sector of Indias economy. Sixth, the mobile communications industry, especially the equipment part of the industry is the second largest in the world (next to China) and therefore has attracted considerable FDI in the manufacture of handsets leading to the employment of skilled manpower. Seventh, India is supposed to be having the cheapest mobile telecom tariffs in the world. Since all the services providers were new and had the same vintage of technology, their competition was more in terms of price and conditions of sale and of late these two aspects are much in public scrutiny thanks to the timely intervention, on various occasions, by the regulator. If one computes the H-Index for the industry, at the national level (which is not exactly a meaningful as some of the providers are only at specific telecom circles), it shows a mild increase: the H-Index for the industry increases from 0.1370 in 2002 to 0.1593 in 2007. Most of the service providers have focused on specific regional markets, with the exception of Bharti (the largest mobile service provider). In fact, there are only four service providers who have a presence in at least 20 of the 29 circles. It is also interesting to see that the circles where BSNL has a monopoly position are also those with very low revenue potential. In other words, the private sector providers have positioned themselves in the most revenue earning circles. Also it is seen that it is the circles with high revenue earning potential where there has been an increase in the intensity of competition in the metros of Delhi, Mumbai and Chennai for instance.

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Competition between Mobile Standards: It was seen above that mobile phones were introduced in the country towards the latter half of the 1990s and specifically in 1997. Ever since that year and until the end of 2002, the market was dominated by just one technology, namely, GSM. But in December 2002, a Reliance Info-com launched CDMA services across 17 circles on a countrywide basis. CDMA has since been growing faster than GSM, although there are some year-toyear variations (see Figure 3, p 41). Most Indian consumers are unaware of the nitty-gritty of the two technologies. So the deciding factor between the two technologies is often based on price and other conditions of offer such as the coverage of the service ease of obtaining a new connection and whether a handset is available at a reduced price as part of the deal. Given this sort of a possibility of perfect substitution between the two types of technologies, the existence of the two standards has made both the markets for GSM and CDMA services very competitive. This is especially so when the market for CDMA services is highly concentrated with just two service providers accounting for almost the entire output. This is further indicated by the higher Herfindhal Index for CDMA services. What is being argued here is that despite being highly concentrated, CDMA service providers have to compete with GSM service providers and this has prevented the CDMA service providers from wielding any excessive market power. One of the most important institutional requirements for competition to emerge and sustain is the introduction of number portability. Number portability allows a customer to move from one mobile service to another within GSM, and also between GSM and CDMA, while retaining the same number. TRAI had recommended in March 2006 to the Department of Telecommunications (DoT) that mobile number portability be introduced by April 2007.

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(v) Price of Telecom Services: One of the more direct effects of this competition is lower prices. Before the deregulation of the telecom services industry and indeed the entry of mobile service providers, telecom consumers were periodically subjected to increases in the tariff. This has now been effectively checked. The price of telecom services basically follows a two-part tariff, both in the case of fixed and mobile services: first an activation charge followed by a charge for each type of calls. For mobile communication consumers then there is the additional cost of calls according to whether it is post or prepaid. Based on estimates made by TRAI (2006), I have obtained the minimum effective charge derived out of an outgoing usage of 250 minutes per month per quarter during 2003 through 2005. This is plotted for both fixed and mobile services as well. Although charges for both the calls have come down, a higher reduction is noticed in the case of mobile services. In fact, India now has one of the cheapest mobile tariffs in the world (Table 7) and this can give an additional fillip to the growth of ICT industry in the country. If one were to plot the price of telecom services and the number of subscribers, one can see an inverse relationship in the case of mobile services although in the case of fixed services such an inverse relationship is not visible. This is because of the relative advantages which mobile technology can bestow on its user. (vi) Institutional Support: An interesting feature of the growth of telecommunications industry in the 1990s and beyond, compared to the earlier period is the strong public policy support that the industry has received. It was manifested in the form of the following policies: (i) National Telecom Policy of 1994, (ii) Telecom Regulatory Authority Act of 1997, (iii) New Telecom Policy of 1999, and (iv) Broadband Policy of 2004. Of these four main policies, in my view, the most important piece of legislation that is determining the growth performance of the industry is the establishment of the regulatory agency TRAI.2 the 10-year history of telecommunications
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regulation in India can be divided into two phases: the first covering the period 1997- 2000, when TRAI had just been established and the second covering the period 2000 onward, when considerable amendments were made to the original TRAI Act. On the whole, TRAIs functioning has been marred by a number of bitter disputes between it, the DoT and the service providers, although in more recent times (especially since 2001) it has been rather effective in shaping the conduct of the industry in terms of pricing behavior and indeed in quality of service. TRAIs functions can be broadly categorized into two: recommendatory and mandatory. It is seen that in most of the important conduct variables such as the promotion of competition, pricing, technology and quality of service and in the efficient use of spectrum, etc, the pronouncements of TRAI are merely recommendatory and the final decision is to be taken by the government. The mandatory powers of TRAI are restricted to a number of technical issues such as fixing the terms and conditions of inter-connectivity between the service providers, laying down the standards of quality of service and to ensuring that these conditions are actually met by the service providers and ensuring the effective compliance of the Universal Service Obligation. After a detailed review of its functioning during the earlier period (1997-2000), Mani (2002) referred to the TRAI as a muddled regulator. This is because during this phase, TRAIs functions were poorly articulated, and it was generally viewed as driven by the well-organized and vociferous lobby of private phone service operators. TRAI did little to hide its pronounced contempt for the DoT and the stateowned providers, BSNL and MTNL. At the same time, it failed to ensure that private operators adhered to their license conditions. Its authority and credibility were undermined by court rulings that clearly exposed its lack of power. Its reputation suffered even
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more when it allowed the private operators to fight its court battles. In short, it would not be incorrect to state that there was regulatory capture during this first and initial phase of its operations. TRAIs recommendations to the government are binding only with respect to the non-compliance and efficient use of the spectrum. On the crucial issues of timing and licensing of new service providers, TRAIs recommendations are not binding. In sum, the TRAI has been reduced to a tariff setting body empowered only to fix tariffs and inter-connection charges and to set norms on quality of service. And on these two and especially on the tariff issue, TRAIs role is generally considered to be very satisfactory. (vii) Growing R&D Outsourcing: It is generally held that India has emerged as a major R&D hub. The Technology Information and Forecasting Assessment Council (TIFAC) (2007) study confirmed this commonly held proposition: R&D investment worth of $ 1.13 billion has flowed into India during the five-year period 1998-2003. The total receipts of R&D services have doubled from $ 221 million in 2004-05 to $ 519 million in 2005-06 [Reserve Bank of India 2006, p 1355].

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Three Disquieting Features In the previous section I have outlined several dimensions of the growth of the industry. All these were positive features the phenomenal growth of the industry, significant reductions in the waiting time to get a telephone connection and indeed in the price of telecom services. However, this growth has also been with some disquieting features. Three such disquieting features of the growth of the industry have been identified. They are: (1) the growing digital divide; (2) increased dependence on imports as far as the equipment is considered; and (3) the relatively low penetration of the internet in India. (i) The Growing Digital Divide: Several commentators, notably Desai (2006), had referred to the growing inequalities in the availability of telephones especially between states and indeed between the rural and urban areas within a state. This is so severe that the national picture that I presented above is only representative of the urban areas of some of the states. This growing digital divide, as it is usually referred to, is of course a reflection of the growing divides within the country as far as income and wealth is considered. The ratio of urban to rural tele-density, which was falling until 2002 has started rising again since 2003 and in 2005 was much higher than what was in 1996, when the mobile revolution was just about to begin. To illustrate, the ratio of urban to rural tele-density increased from 14 in 1996 to nearly 20 by the end of 2005 [Department of Telecommunications 2006]. A yet another dimension of the digital divide is the variation in teledensity across the various telecom circles (Table 9). Teledensity (in 2005) ranged from as high as 60 per 100 people in the national capital region to just two in the backward state of Chhattisgarh. The urban divide within each of the telecom circles is presented in Table 9. It shows that Kerala, Tamil Nadu (excluding Chennai) and Punjab
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have one of the lowest urban-rural divides, while Uttar Pradesh, Bihar and Assam have the highest digital divides. The table also shows that rural teledensity is significantly below the urban one across all the circles and even for the nation as whole it has remained at a very low level. This confirms the oft-expressed view that the telecom revolution spearheaded by the mobile phones has remained largely an urban phenomenon. The government has put in place an institutional arrangement for bridging the digital divide. Specifically, the National Telecom Policy of 1999 envisaged implementation of the Universal Service Obligation (USO) Fund to provide telecom services in rural, remote areas and nonremunerative areas. This fund is raised through a universal access levy, which is 5 per cent of the adjusted gross revenue earned by the service providers under various licenses. The Universal Service Support Policy for Implementation of USO took effect from April 1, 2002. It is administered by the DoT and it has three major components: (1) providing public shared access; (2) providing individual access; and (3) infrastructure support for mobile service providers. The latter policy is on the anvil and is yet to take shape. The overall performance of the USO fund is far from satisfactory, as cumulatively speaking only about a third of the funds accumulated have actually been disbursed. The service providers, excepting for the state-owned BSNL, are rather reluctant to provide shared access. However, the private providers are keen to participate in the provision of individual access in rural areas as it is more profitable than providing shared access [Department of Telecommunications 2007]. Hitherto, the USO funds have been utilized only for provision of fixed line connections. Given the fact that the future is in mobile communications, it is prudent to involve
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mobile service providers too. Some amendments made to the utilization of USO funds have expanded the scope of the funds to include more items.3 The following additional four items were included: (i) Creation of infrastructure for provision of mobile services in rural and remote areas; (ii) provision of broadband connectivity to villages in a phased manner; (iii) creation of general infrastructure in rural and remote areas for development of telecommunication facilities; and (iv) induction of new technological developments in the telecom sector in rural and remote areas. Only the first of four are in the form of some implementation. In fact, the four metros have ceased to be the major force behind the growth of the mobile connections in the country. Encouraging the growth of mobile communications in the other circles and the rural areas within the circles can increase tele-density in the country. Such increases in tele-density through mobile phones also have some negative consequences, which is discussed below.

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(ii) Import Dependence for Telecom Equipment: The country had earlier assiduously built up a domestic telecom equipment manufacturing industry in all the three segments of the industry, namely in switching, transmission and terminal equipment. Until 1985 or so, the manufacture of telecom equipment was exclusively reserved for the public sector, when in that year certain customer premises equipments like the Electronic Private Automatic Branch Exchanges (EPABX) were thrown open to the private sector. In fact, the very first public sector enterprise established in independent India, Indian Telephone Industries (ITI) was devoted to the manufacture of telephone switching and terminal equipment. In 1985, the government established the standalone laboratory, Centre for Development of Telemetric (CDOT) to develop a family of digital switching technologies, which it licensed to both government and private sector enterprises. In fact, Mani (2005) had argued that the C-DOT is credited with the establishment of a modern telecom equipment industry in the country. The governments policy of public technology procurement practiced through its DoT, which was the only telecom service provider for a very long time until the late 1980s also contributed to the emergence and sustenance of a domestic manufacturing industry in telecom equipment which fitted very well with the overall policy of import substitution that being followed. The deregulation of both the equipment and services industries, the liberalization of the economy, the virtual abandoning of the public technology procurement policy and above all the growth of the mobile communications industry put a leash on the growth of a domestic manufacturing industry. This is because both the research and production components of the industry focused only on fixed telephone technologies and with the mobile communications becoming very important, the demand for such equipment had to be increasingly met through imports. I have
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attempted to estimate the net self-sufficiency rate for Indias telecom equipment industry during the period 1992-93 to 2004-05.

iii) Low Penetration of the Internet: Internet services in India were launched in 1995 by Videsh Sanchar Nigam (VSNL). By the end of March 1998, the number of subscribers had barely reached 140,000. In November 1998, the government recognized the need for encouraging the spread of the internet in the country and opened the sector for provisioning of services by private operators. To date there are 389 ISP licensees, but only 135 are operational. Public sector providers dominate with 56 per cent of the market (2006).. Approximately 60 per cent of the users still use dial-up internet access. Broadband access was introduced in October 2004, but its diffusion remains low. According to TRAI estimates (Table 10, p 43), there were 9.27 million internet subscribers as of end March 2007 and 2.34 million broadband subscribers. Only about a quarter of the internet subscribers have changed over to broadband access technologies. Majority of the subscribers use the older dial-up technologies for accessing the internet. According to a recent study on internet in the country by the internet and Mobile Association of India (2006), almost 76 percent of PC users have taken internet connections. This means that the two technical reasons militating against the higher internet diffusion in the country is the lack of ownership of PCs and not
28

having a fixed telephone for accessing the internet. Although it is possible to access internet over a mobile phone, the current generation of mobile technology that is common in the country is 2 G and 2.5 G. Of course, it is generally held that whenever the country moves over to 3G phones, accessing the internet over mobile phones is easier. But given the much higher prices of 3G handsets, it is not very likely that its diffusion will be high in the initial years. So the low internet diffusion in the country is a direct consequence of the country becoming too reliant on mobile phones.

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INTRODUCTION OF RELIANCE COMMUNICATION

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WIRELESS NETWORK IN INDIA

Urban Population- 97% Rural Population-42% National Highways-50% Rail Lines- 58% Census Towns-3,381 Non-census Towns/villages-

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RELIANCE GROUP Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (19322002), ranks among Indias top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Energy Ltd). Reliance ADA Groups flagship company, Reliance Communications, is India's largest private sector information and Communications Company, with over 30 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wire line), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies Reliance Capital and Reliance Energy are widely acknowledged as the market leaders in their respective areas of operation.

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AWARDS & RECOGNITION 2007 January 10 Reliance Communications adds a record 1.4 million subscribers in December 06 January 18 Say Hello on Reliance Simply 2030 January 30 Reliance joins Lenovo and Intel for "Internet on the Move" February 2 Reliance Communications market capitalization tops Rs 1 lakh crore ( 1 trillion rupees or 24.39 billion US dollars) on Bombay Stock Exchange February 16 Reliance Communications offers best value on roaming March 23 Govts Rural Telephone Scheme(RDEL)through Reliance Communications successfully closes by March 31,2007 April 6 Reliance Communications acquires 1.2 million subscribers in March 2007. May 2 A Classic Bonanza Reliance Communications unveils handsets @ Rs 777 May 10 Reliance sets a new record, one million Classic handsets sold in just one week

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May 14 Reliance Communications launches Classic Color Bonanza - Color handsets @ Rs 1234 June 6 Reliance Communications adds 1.4 million new mobile subscribers in May2007 June 6 Reliance Classic' Makes Music - FM Radio Phones Launched at just Rs.1888

2006 January 01 Reliance Infocomm launches "One Nation, One Tariff" to enable Reliance India Mobile prepaid users to call anywhere in India at Re one per minute. March 06 Reliance Communications Ventures Ltd. (RCVL), India's leading integrated telecommunications company, a member of the Reliance - Anil Dhirubhai Ambani group, lists on the Bombay Stock Exchange and National Stock Exchange. June 22 Reliance Communications ties up with Disney to offer on Reliance Mobile World India's first 3D animation on mobile. November 17 Reliance Communications launches Free Group Term Life Cover for its CDMA subscribers December 28 Reliance Communications FLAG Telecom announces FLAG Next Gen to cover 60 countries
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2005 January 04 Reliance introduces first e-recharge facility in CDMA in India. January 24 Reliance India Mobile announces mega rural plan to cover 4 lakh villages and 65 crore Indians by December 2005. June 26 Anil Ambani appointed Chairman of Reliance Infocomm July 30 Air Deccan and Reliance Web World join hands to offer air ticket booking facility at Reliance Web World. August 18 Reliance Infocomm rolls out international roaming facility across several countries to become the first Indian CDMA operator to offer its customers such a service. September 21 Apollo Hospital and Reliance Infocomm join hands to provide top class healthcare service to millions of Indians in over a hundred Indian cities. December 12 Reliance Infocomm and China Telecom sign agreement for telecom services to provide direct telecommunication service, including a global hubbing service, to subscribers in the two countries.

2004 January 12 International wholesale telecommunications service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm

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February 9 Launches RIM Prepaid with attractive offer - For Rs 3500 get a Motorola C131 mobile phone and Rs 3240 worth of re- charge vouchers instantly and stay connected for 1 year February 17 Reliance subsidiary Flag Telecom announces FALCON Project - a major new Middle East Loop Terabits Submarine Cable System with links to Egypt and Hong Kong via India April 23 Reliance Infocomm introduces first ever auction facility on Mobile phones through R World. June 8 Reliance Infocomm introduces World Card - a Prepaid International calling card for affordable and convenient ISD calls from India. August 5 launches the first regional Customer Contact Centre in Chennai 2003 February 14 Launches Reliance Web World in top 16 cities March 31 Launches International Long Distance Services April 25 Introduces colour handsets May 1 Launches Reliance India Mobile Service commercially in top 92 cities with one million customers. June 10 Launches India's first wireless Point of Sale (POS)

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July 3 Launches R Connect Internet connection cable Aug 26 Introduces Reliance India Phone Fixed Wireless Phone and Terminal October 6 Launches integrated broadband centre at Reliance Web World, Bangalore October 30 Reliance becomes India's largest mobile service provider within 7 months of commercial launch November 3 Customer base touches 5 million November 16 Launches National Roaming 2002 February 25 Obtains International Long Distance License from Govt. of India December 22 Commissions 1st Optic Fibre Backbone ring December 24 Establishes 1st Point of Interconnect (POI) in New Delhi 2001 May 10 Optic fibre laying process commences in Gujarat, Andhra Pradesh & Maharashtra
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2000 The Dream, 1999 "Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians" Dhirubhai Ambani 1999 The Reality, November 15 Reliance Infocomm begins Project Planning

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MISSION Excellence in Communication initiatives To attain global best practices and become a world-class communication service provider guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigour, dedication and innovation to achieve excellence in service, quality, reliability, safety and customer care as the ultimate goal. To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organization. To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, the people. To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals. To encourage ideas, talent and value systems. To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

40

VISION

We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India.

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

We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.

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42

PRODUCT

DEFINITION: A product is a bundle of physical service and symbolical particulars expected to yield satisfaction benefits to the buyers. (Phillip Kotler) A product is a complex of tangible and intangible attributers, including packaging, colors, price, manufacture and retailers service which the buyer may accept as offering satisfaction of wants of needs. (William J Stanton)

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RELIANCE NETCONNECT USB MODEM

Features:

Connectivity:

Wireless internet access across 5300 towns and 3 lakh villages. Internet browsing and download speed upto 153.6 kbps. Compatible with Windows 2000 and Windows XP.

Voice and SMS Compatible:

Make and receive voice calls Send and receive SMS upto 1000 characters Store 1000 contacts in your phone book

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Specifications: Item Protocol working frequency Dimensions Weight Receiver sensitivity Power consumption Power supply Description CDMA2000 1X RTT 824MHz ~ 849MHz/869MHz ~ 894MHz Uplink/Downlink 84 mm (D) x 42 mm (W) x 12 mm (H) About 32 g Better than -104dBm 1.5W 5V/500ma, from USB

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RELIANCE NET CONNECT DATA CARD

Features

Uninterrupted high-speed wireless Internet connectivity, across 10000 towns, 3 lakh villages and growing. Better surfing speeds, with download speeds up to 144 kbps. High download speed of heavy email attachments One-time installation of the dial-up software without the need to change the dial-up configuration. Hassle-free connection o Connect instantly (No line busy / waiting tone) o Easy to remember username / password (your phone / card number)

Enables a user to surf the Internet without being tied down to a landline from any location your bedroom, drawing room, hotel room, office, outdoors or on the move in a car, train or bus.

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The network advantage This remarkable service virtually converts the whole of India into a wireless hot spot.

10000 towns and cities and 300,000 villages On highways, rail routes, airport lounges and remote locations

The plan advantage

The tariff is inclusive of all charges (the ISP charge as well as the Telecom connectivity charge). No need for an external or internal modem. No need for an ISP account. No need for a separate landline connection. One free e-mail account (with a 10 MB mailbox) and 2 MB of web space A choice of prepaid and postpaid options to suit your usage needs Use of data cards to make voice calls and send SMS

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RELIANCE POSTPAIDS FIXED WIRELESS PHONES Current models

CLASSIC 2208

CLASIC WP 820

48

LG LSP 410

CLASSIC WP 829
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RELIANCE MOBILES

50

51

Old handset models

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Color Handset Current handset models

53

54

55

Old handset models

Color Handset with camera Current handset models

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57

Video Camera Phone Current handset models

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PDA color phone Current handset models

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60

61

Reliance Hello Postpaid Plans Plan sNeed . Mont hly Clip renta l Free usag On e net pack On char net Local ges other GSM Fixe d On net Othe r Fixe GSM d High STD calls On Sim e ply In 203 18 130 dia 0 0 0 0 50 0 22 5 0. 40 1. 00 1. 00 0. 40 1. 00 1. 00 225 1.2 0 1.2 0 1.2 0 1.2 0 1.2 0 1.2 0 High local High local fixed calls mobile Pl loc Pl Hecalls Mo an al an llo bile 15 29 50 12 299 15 29 50 12 299 0 9 0 5 0 9 0 5 50 0 0 0 0 35 0 47 0 150 0 17 12 75 22 125 5 5 5 0. 0. 0. 0. 0.4 40 50 37 40 0 1. 0. 1. 0. 0.4 60 50 47 40 0 0. 0. 0. 1. 1.2 40 50 37 20 0 Intra circle (Rs./min.) 0. 0. 0. 0. 0.4 40 50 37 40 0 1. 1. 1. 0. 0.4 60 20 47 40 0 1. 1. 1. 1. 1.2 20 20 10 20 0 Inter circle (Rs./min.) Hig h on Pla net n call 600 600 s 0 600 On N.A net . 0.3 3 1.4 7 0.3 7 0.3 0 1.4 7 1.1 0 Special ones Pl Pla An n 10 15 10 15 00 00 00 00 0 0 97 15 5 25 75 75 0. 30 1. 33 0. 33 0. 33 1. 33 1. 00 0. 30 1. 20 0. 30 0. 30 1. 20 0. 90

On 0. 1.2 2. 2. 2. 2. 2.4 0.3 2. 1. net 40 0 40 40 20 40 0 0 00 80 Othe 1. 1.2 2. 2. 2. 2. 2.4 2.2 2. 1. r 00 0 40 40 20 40 0 0 00 80 Fixe 1. 1.2 2. 2. 2. 2. 2.4 2.2 2. 1. GSM d 00 0 40 40 20 40 0 0 00 80 I Plan one India offers lowest call rate of 0.40p/min on Reliance hello to Reliance hello.

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HELLO PACKS SMS PackGet unlimited on net SMS anywhere in India +Rs. 25 worth off net SMS in just Rs.50 only STD PackCall any phone in India for Rs. 1/min. on rental just Rs. 99/month only Night PackCall any Reliance phone in Mahrashtra and Goa and Mumbai free between 11 pm to 7 am on rent Rs. 99/month HANDSET PROPOSITIONS Get Rs.2400 intra circle on net talk time free Free intra circle on net talk time-Rs.100 per month for 24 months Applicable on Plan 150, plan 290, plan 500, plan 1000, plan 1500, plan 125, plan local 299, plan mobile 299, plan one India 225, plan one India 225.

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PLANS FOR RELIANCE MOBILES POSTPAIDS These are divided into three level of plans Entry level plans Mid level plans High level plans ENTRY LEVEL PLANS PLAN TYPE SP 149 ENTRY PLAN NJ NJ CHAT 199 199 & SOH INDI PLAY O A 199 199 199 -

MONTHLY RENTAL 124 CLIP & PLAN 25 CHARGES TOTAL MONTHLY 149 199 199 199 COMMITMENT FREE INTRA CIRCLE 150 199 TALK TIME CALL RATES WITH IN M&G (Rs./Min.) TO ALL RELIANCE 0.5 0.50 1.20 1.2/0 PHONE 0 * TO OTHER MOBILES 0.5 0.50 1.20 1.2/0 0 .5* TO LANDLINE 1.0 1.00 1.20 1.2/0 0 .5* STD RATES REST OF INDIA (Rs./Min.) TO ALL RELIANCE 2.0 2.49 2.40 2.40 PHONE 0 TO OTHER PHONES 2.0 2.49 2.40 2.40 0

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MID LEVEL PLANS PLAN TYPE MID LEVEL PLAN RIO RIO NJ 299 299 399 SOHO 299 399 299 -299 100 0.50 0.50 1.00 1.50 1.50

MONTHLY RENTAL CLIP & PLAN CHARGES TOTAL MONTHLY 299 399 COMMITMENT FREE INTRA CIRCLE TALK TIME CALL RATES WITH IN M&G (Rs./Min.) TO ALL RELIANCE 0.40 0.40 PHONE TO OTHER MOBILES 1.00 1.00 TO LANDLINE 1.00 1.00 STD RATES REST OF INDIA (Rs./Min.) TO ALL RELIANCE 1.00 0.40 PHONE TO OTHER PHONES 1.00 1.00 INDIA ROAM FREE PLANS

India Roam Free Roaming tariff for mobile roam free plans Local out going calls while roaming STD out going calls Incoming To Reliance/ others All phone call rate Free incoming talktime Plan 390 Plan 990 40p/Rs. 50p 1 1.00 1.00 1.00 1.00

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HIGH LEVEL PLANS PLAN TYPE MID LEVEL PLAN NJ 399 NJ 499 399 499 50 50

MONTHLY RENTAL CLIP & PLAN CHARGES TOTAL MONTHLY 449 549 COMMITMENT FREE INTRA CIRCLE TALK TIME CALL RATES WITH IN M&G (Rs./Min.) TO ALL RELIANCE 0.40 0.40 PHONE TO OTHER MOBILES 0.85 0.75 TO LANDLINE 0.85 0.75 STD RATES REST OF INDIA (Rs./Min.) TO ALL RELIANCE 0.85 0.75 PHONE TO OTHER PHONES 0.85 0.75

Unlimited Reliance Mobile Calling Pack Call any Reliance mobile on rental of Rs. 375 per month Pack is available with all plans Only for Reliance mobile calls in Maharashtra & Goa This pack will not be applicable while roaming

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RELIANCE NETCONNECT TARIFF PLANS FOR DATA CARD & USB MODEM 1. Time Based Plans 2. Data Based Plans Time Based Plans Post paid plans Monthly charge Peak hours (6 am to 10 pm) Off peak hours (10 pm to 6 am) Additional usage rate Free E-mail account Free web space Free SMS/month Freedo Swift Swift m 40 72 @ night Internet Tariff 400 400 650 Bundled hours/month Rs.50p 20 36 /min. hours hours Unlimit ed N.A. 10 MB 2 MB 20 hours Rs.50 p/mi n. 10 MB 2 MB 36 hours Rs.50 p/mi n. 10 MB 2 MB Swift 100 900 50 hours 50 hours Rs.50 p/mi n. 10 MB 2 MB 100 per mont h Swift 180 1500 90 hours 90 hours Rs.50 p/mi n. 10 MB 2 MB 100 per mont h

Voice & SMS Tariff Nil Nil 100 per mont h

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Data Based Plans Post paid plans Monthly charge Bundled data Exchange/mont h Additional usage rate Free E-mail account Free web space Free SMS/month Freedom Freedom Plus Internet Tariff 650 900 1 GB 1.5 GB Rs. 2/MB 10 MB Platinum 1500 Unlimited N.A. 10 MB 2 MB 100

Rs. 2/MB 10 MB

2 MB 2 MB Voice & SMS Tariff 100 100

PREPAID PLANS GSK Value Rs.99 Rs.220 Rs.375 Rs.660 Validity 7 days 6 months 1 year 2 year Talk time Rs.10 Rs.10 Rs.10 Rs.10

Usage rate for internet access- 30p between 10 pm to 6 am & 60p between 6 am to 10 pm

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Research Methodology
Problem Statement:

An Industry analysis of Telecommunication sector

Research Objective: To study the emerging trend of telecom sector To study the opportunity exist for telecom market To know the future out let of telecom sector To know the emerging technologies in the telecom sector To study the financial performance of telecom sector Research design: Descriptive Descriptive study is used to study the situation. This study helps to describe the situation. A detail descriptive about present and past situation can be found out by the descriptive study. In this involves the analysis of the situation using the secondary data. Data collection method: Secondary data This report is based on the secondary data, which is collected through internet and various magazine or news paper, for evaluation purpose the data collected through www.nseindia.com, www.businesstoday.intoday.in Site. Method of analysis:

SWOT analysis Ratio analysis

1. Profitability Ratio 2. Payout Ratio 4. Liquidity Ratio 5. Leverage Ratio 69 6. Per share ratio

Limitation of the Study

As the project based on the secondary data the data may not be updated. The data are collected from the various sources as they may not be accurate.

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DATA ANALYSIS & INTERPRETATION

Reliance Communication
RCom has an upper edge over all its rivals and is a step ahead than the major telecom players. Department of Telecom has awarded an to India GSM license Reliance

Communications. The company had already paid the requisite license fee of Rs 1,651 crore for an India GSM license on October 19, 2007, after DOT, in its new telecom policy, had said telcos could offer services using dual technology. The license will guarantee that RCom will be in queue for GSM spectrum ahead of the 46 others that have applied for licenses recently. The development comes even as leading GSM players have challenged the policy of allowing dual technology in the telecom tribunal. RCom will now have to wait for DOT to allot 4.4 MHz of GSM spectrum in each of the circles to launch commercial operations.

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BHARAT SANCHAR NIGAM LIMITED (BSNL)

Founded in 2000, Bharat Sanchar Nigam Ltd. is India's largest public sector Telecommunications Company providing a wide variety of telecom services. Its service range covers Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services, etc. In 2005-06, the BSNL earned revenues of Rs. 40,177 crore, representing a growth rate of 11.32 % over the previous year. BSNL's Board of Directors consists of CMD Shri A.K. Sinha & five full time Directors- Director of Human Resource Development (HRD), Director of Planning & New Services, Director Operations, Director Finance and Director of Commercial & Marketing. BSNL offers both fixed line and mobile services with broadband connections.

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BHARTI-AIRTEL
Established in 1995 by Sunil Mittal as a Public Limited Company, Airtel is the largest telecom service provider in Indian telecom sector. With market capitalization of over Rs. 1,360 billion, Airtel has 31% of total market share of GSM service providers. Providing GSM services in all the 23 circles, Airtel was the first private player in telecom sector to connect all states of India. Also, Airtel is the first mobile service provider to introduce the lifetime prepaid services and electronic recharge systems. After establishing itself in the domestic market, Airtel is now spreading its wings in US by providing its mobile service under the name 'CALLHOME' to the NRIs. Having achieved huge success in mobile services- postpaid and prepaidAirtel has now entered fixed-line telephony providing broadband services in 92 cities across India. The company has an optical fiber network of 35,016 km and a customer base of 35,440,406 GSM mobile and 1,819,083 broadband subscribers. Airtel is listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).

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Bharti Airtel
Bharti group plans to roll out cellular services under Airtel brand in SAARC countries like Bhutan, Nepal, Maldives, etc. It will soon start exploratory talks with relevant telecom regulators to secure GSM licenses to operate 2G/3G mobile services in these countries. It has no plans to take the Airtel brand to Pakistan. Bharti's bid to enter SAARC markets comes at a stage when the Indian govt is trying to play a decisive role in bringing about a sharp reduction in the ultra high global roaming rates within the SAARC group. Bharti Airtel plans to kick off cellular services in Sri Lanka by April 2008. While telecom penetration in Sri Lanka is 30%, there's a huge opportunity for new entrants. Bharti Airtel and Western Union today decided to jointly develop and pilot a Mobile Money Transfer service in India. They expect the service to be launched within the next six months. Only banks and the Indian Post, through money orders, are currently allowed such transfers.

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RELIANCE INFOCOMM
Established in 2002, Reliance communication is the wholly owned subsidiary of Anil Dhirubhai Ambani Group of Companies providing the telecommunication services. Reliance offers prepaid and postpaid mobile services with R-world and fixed line services with broadband services. During the financial year 2005-06, Reliance's subscriber base had crossed the mark of 25 millions. Having its operations in 673 cities, Reliance Communications offers a wide range of telephony services. The company's business line varies from providing Fixed Line Telephony services to wireless mobile telephony services. Reliance is the only telecom company that is providing mobile services over both- CDMA and GSM networks. With an optical fiber network of 80,000 kms, the company aims at providing best services to its customers. It also has 15,000 Base Transceiver Stations across the country providing reliable wireless network.

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IDEA CELLULAR
Established by AT&T, Aditya Birla Group and Tata Group as joint venture, Idea Cellular, is a part of Aditya Birla Nuvo, a flagship company of the Aditya Birla Group, Idea is growing its network in 11 circles. Idea offers both prepaid and post paid services in the GSM network. Having 13% market share, Idea has a base of 2.3 crores subscribers all over the country. A three-year contract was signed between Idea cellular and Ericsson for GSM expansion. The network will now cover Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and Himachal Pradesh telecom circles (operator-licensed areas). Idea is also in the process of setting up new networks to provide wider coverage area to its subscribers. It also keeps on announcing attractive discount schemes for the value added services. Idea was the first cellular service provider to launch GPRS and EDGE in the country. For the very first time in India, 'Background Tones', 'Group Talk', 'Super Power', 'Women's Card', etc. were launched by Idea. Idea has remained popular among the customers because of tariff plans such as free I -I calls, '2 Minutes Outgoing Free', and other discount schemes and GPRS enabled services.

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Idea Cellular
Aditya Birla group firm Idea Cellular is a wireless telecom company, operating in various states of India. Idea Cellular was the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas. The Ericsson Idea Cellular $100m contract could be a precursor to Idea Cellular getting spectrum from the Government to commence services in the Circle. The company will also be responsible for network deployment and integration, as well as managed services including network and field operations. Rollout is planned to begin shortly, with commercial launch rescheduled for May 2008.

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TATA TELESERVICES:
Established in 1996, Tata Teleservices, one of the 96 companies of Tata Group, has its network in 20 circles. It is the first company to launch CDMA mobile services in India. With investment of Rs.36, 000 crores during financial year 2005-06, Tata Teleservices has reached the mark of 1.07 crore subscribers. The company covers a wide range of services like Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wire line services. It also offers some value added services like voice portal, roaming, post-paid Internet Services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Tata Teleservices has partnered with Motorola and Ericsson for providing reliable services to its customer base. Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited serves over 15.9 million customers (with 75% increase in FY 2007 over March 06-sub base) covering over 3200 towns. Income from Telecommunication reached to 1,095.13, with 7.9 lakhs mobile subscribers and 8.3 lakhs fixed wireless subscriber. Formerly named as Hughes Tele.pcom (India) Ltd., Tata Teleservices Maharashtra Limited (TTML) with 70.83% equity shareholding by TATA Group is the premier telecommunication service provider licensed to provide services in Maharashtra (including Mumbai) and Goa. In February 2002, the Government of India released 25% of VSNL's equity to Tata Teleservices.

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MAHANAGAR TELEPHONE NIGAM LIMITED

Mahanagar Telephone Nigam Limited popularly known as MTNL is an Indiabased telecommunication service providing company. MTNL operates under the guardianship of the Ministry of Communication, Government of India and Department of Telecommunication, Government of India. Mahanagar Telephone Nigam Limited operates according to the telecommunication policy laid as per the Indian Telecommunication Acts and Rules. MTNL enjoyed virtual market monopoly till the end of the year 2000. Mahanagar Telephone Nigam Limited operates in two major metro cities of India, Mumbai and Delhi and this giant telecommunication company enjoyed complete market leadership till the aforesaid time. With the entry of private players in the cities of Mumbai and Delhi, Mahanagar Telephone Nigam Limited lost its market monopoly. This led to lowering of tariff by the Mahanagar Telephone Nigam Limited. This Indian telecommunication company is one of the market leaders in the Indian telecommunication industry and enjoys market dominance in the area of basic telephony, rural telephony and Internet connection. Furthermore, the company is also planning to expand its Internet services and IT related services to help it grow along the lines of other major telecommunication players operating in India. As per the latest company policy in accordance with the tenth telecommunication plan of India, the company is expected to add 27.56 lakh basic telephone connections along with 11.57 lakh cellular phone connections.

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80

SWOT ANALYSIS OF RELIANCE COMMUNICATION

STRENGTH Big brand name The new technology launcher (CDMA) First in FWPs Strong market Good network in INDIA OPPORTUNITIES Growing data card market Growing market of CDMA phones Establishment of new business in Pune WEAKNESS Services Customer care section Not very good tariff plans for STD users Battery life of hand sets THREATS Launch of TATA Indicom USB modem Big market share of Airtel and growing TTSL in Maharashtra

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CONCLUSION
Reliance communication is a very big brand name and I am very thankful to the Reliance people to help me in completing my project in Reliance communication. Reliance communication provides me the good opportunities to make my skills stronger in marketing. I am also very thankful to my project guide Mr. Rajiv Taneja for giving me his useful guidelines and important time. While doing this project I have talked with many people and came to know about the market and I learnt that how the companies works and what they have to do for retaining there position in the market. Reliance Communications has trained me to face the challenges whatever in the market.

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RECOMMENDATION
After completing my work of analyzing and creating customers for postpaid mobiles, fixed wireless phones, Data cards and USB modem of Reliance communication I want to recommend some important facts to the company about its products. Company should come with some good and effective plans to make the customer satisfied. Company should move towards the good customer relations so company should plan for the customer relationship management. Reliance Communications is having good range of its products that is why they are challenging the competitors so make it large. Sales Executives are not getting proper guidance and support from the seniors because of heavy workload on them so there is a need to manage workload so managing manpower is also a big task to do. Majority of respondents complain about the after sales services like billings, and interruption in the network so the quality of after sales services should be improved. Customer care services are very poor company should improve that part also. Device installation and registration on site should be easier to work so that customers need not to give more papers at the time of purchasing a new connection. Reliance Communication should make such strategies which suits the companys name and brand. Reliance Communication is already having a good brand image.

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BIBLIOGRAPHY
WEBSITES:\ WWW.Reliancecommunication.com www.google.com www.altavista.com BOOKS PREFFERED: Marketing Management- Philip Kotler Marketing Management- Rajan Saxena NEWS PAPERS: THE ECONOMIC TIMES THE TIMES OF INDIA

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