Market Competitiveness of Reliance Communications in Lucknow

A Report on the Project

SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT (Approved by AICTE,Govt. of India) (Equivalent to MBA) ACADEMIC SESSION (2007-2009)

Faculty Guide: Prof. Anagha Shukre IMS, Ghaziabad

Company Guide: Mr. Ashish Vats Marketing Manager Lucknow Cluster Reliance Communication Ltd. Under the Guidance of: Mr. Shah Raaz Ahmed Store Manager, COCO Burlington

INSTITUTE OF MANAGEMENT STUDIES LALKUAN, GHAZIABAD

PREFACE
I am pleased to present this report which is the outcome of the hard work put in by me for the last two months. I had been assigned with a research topic by my company guide Mr. Ashish Vats (Marketing Manager, Reliance Communications) and Project guide Mr. Shah Raaz Ahmed (Store Manager, COCO Burlington) and which is `Market Competitiveness of Reliance Communications in Lucknow . To fulfill the requirements of the research an intensive survey has been carried out to analyze the competitiveness of Reliance Products and Services. In this Report a descriptive account of the research has been mentioned. Also the Objective, Methodology, Data collected, Observations and Findings have been addressed. As I submit this Report I am sure that the orientation of the research that has been conducted is correct and the findings of it will prove to be quite beneficial to the organization.

SHIVENDRA PRAKASH SINHA

CONTENTS
Acknowledgement4 2. Introduction..5 3. Indian Telecom Industry: An Introduction...6 4. Impact of telecommunication reforms in India8 5. Market shares of public & private players in fixed telephon...10 6. Market overview.14 7. Objectives and targets of the new telecom policy 1999.16 8. Revolution in telecommunication sector17 9. Role of telecom regulatory authority of India (TRAI) ..25 10. Growth drivers.......27 11. Market share for major telecom companies...29 12. Profile of Reliance Anil Dhirubhai Ambani Group......32 13. The new identity (logo) of ADAG.36 14. Anil Dhirubhai Ambani Group Structure (ADA Group) .....37 15. Reliance Communication...38 16. Milestones of Reliance Communication (1999-2007) ........................................................................43 17. Postpaid Mobile Plans...48 18. Comparison of Postpaid Plans...65 19. STD Segment.67 20. Comparison of Lifetime Pre-paid scheme.68 21. Sample Questionnaire....69 22. Key factors of the research....73 23. Data tabulation, interpretation and findings..73 24. Reliance Communication v/s Bharti Airtel...88 25. Key finding of the survey..90 26. Conclusion.91 27. Recommendations.....92
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28.

Annexure

ACKNOWLEDGEMENT
It is an event of great pleasure in submitting this project work entitled, MARKET COMPETITIVENESS OF RELIANCE COMMUNICATION VENTURE LIMITED IN LUCKNOW CLUSTER- a marketing research project. I express my sincere gratitude to my industry guide Mr. Ashish Vats, Marketing Manager, Reliance communication Ltd. Lucknow, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of Reliance Communication Ltd. Especially Mr. Shah Raaz Ahmad and Mr. Azmi Abbas Rizvi for the regular support and help in the successful completion of my project. I am thankful to my faculty guide Prof. Anagha Shukre of my institute IMS Ghaziabad, for his continued guidance and invaluable encouragement. I would like to thank my colleagues and friends from different colleges for their help and assistance in the compilation of this work.

SHIVENDRA PRAKASH SINHA

INTRODUCTION
Telecom sector is one of the booming sectors and the market opportunities are immense this is quite evident seeing the increasing number of players in this sector. But unlike the past the competition has also increased leaps and bounds. The reason for this is the availability of so many options to choose from, these are being introduced by the current operators on a timely basis. Now-a-days in the telecom sector there is cut throat competition and only that operator who can withstand this competition can survive in the market, else suffers huge losses. To start the project, I have been told by my company guide is that a survey needs to be carried out which should be focused on retailers, customers and different tariff plans available with other operators .The findings from such a survey will be used to analyze what is the current market scenario and where Reliance Communications stands in comparison to the other operators. After this I started designing questionnaires to conduct the survey. The questionnaire was approved by my project guide and he told me that I can start the survey on retailers. This report contains the survey conducted on retailers and the data collected (Postpaid/Prepaid Mobile Plans) from various outlets of all six telecom operators in Lucknow. Based on the data collected from retailers some findings have been reported and all the competitive plans in the mobile section. This would give an analysis of what is the current status of the company among the retailers and their satisfaction levels and what are the reasons for the sale of various other mobile plans and why they are the best selling ones. In the next phase of the project a summary on the survey on Customer Satisfaction is given which will give a clear picture of the Competitiveness of Reliance among other players.

INDIAN TELECOM INDUSTRY: AN INTRODUCTION

India is one of the fastest growing telecom markets in the world
with an addition of more than 6 million connections per month. FDI inflow in Indian Telecom sector is the highest among all sectors. India is emerging as telecom manufacturing hub. Year 2007 has been declared as "Year of Broadband" in India. The telecommunication industry operates in a licensed and regulated environment. The government of India, through Department of telecommunication (DOT) and Telecom commission, both functioning under the ministry of communication and information technology decides on the policies that governs/regulates the sector and issues the licenses and registration. Indias telecom policy is guided by overall development goals and the interests of the consumer. In order to protect and promote consumer interest and ensure fair competition, an independent regulatory authority known as Telecom regulatory authority of India (TRAI) was established in 1997. The sector is more liberalized then many developing markets and in most respects, the regulatory framework has caught up with the need to manage a highly competitive market environment. Competition has been introduced into all segments and licenses are available to new entrants. Tariff control have been removed or structured as ceiling tariffs in areas where there is limited competition. There is a current initiative to simplify the charging brands for log distance calls and to remove some of the artificial constrains in the segregation of long distance and access licenses. Consolidation among operators has been facilitated. TRAI has actively intervened in many areas to ensure a level playing field between operators. Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the public players and the private players

are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers. Reforms in Indian telecommunication sector in can divide into broadly three phases.

Different phases of the Telecommunication in India

First phase: The telecommunication reforms in India started in the eighties with the mission better communication. This is regarded as the first phase of the reformation process. Several private manufacturers of tailor made equipments entered the market. There were private developer for indigenous technologies and the franchisee for STD/ISD and PCO increased. The Videsh Sanchar Nigam Limited (VSNL) and Mahanagar Telephone Nigam Limited (MTNL) were set up under the Government of India's Department of Telecommunication. Second Phase: The second phase of telecommunication reforms in India came in the early nineties. The introduction of the New Economic Policy (NEP) in the year 1991 was a landmark in the history of telecom industry sector in India. The manufacturing of equipments pertaining to telecom sector was decentralized and several value added services were introduced into the market. The telecom services were divided into basic telephony, radio paging and cellular mobile The TRAI was established an independent regulatory body pertaining to telecom sector. The growth of the private sector increased. Third phase: The third phase of the telecommunication reforms in India took place in the period of the late nineties. The government of India introduced the New Telecom Policy 1999. The TRAI was endowed with more power. The concept of revenue sharing was introduced to replace the fixed license fee. The National Long Distance was introduced with free entrance. Moreover, there was introduction of International Long Distance schemes. The Bharat Sanchar Nigam Limited (BSNL), a corporate body of the telecom service sector was formed, followed by the introduction of the Internet to the Indian market.

Impact of telecommunication reforms in India

Telecommunication Reforms in India revolutionized the telecom industries sector in India, which is an important factor for the growth of the Indian telecom sector and in turn helped the Indian economy to perform well for the past few years. The Telecommunication reforms in India were development and growth oriented. Technological advancements and innovations contributed largely towards the reformation of the telecom sector in India. The sector of telecom was a monopoly under the Central Government of India. During the 1990s this sector faced fierce challenges due to the development in the technological sector. The sector was privatized and with the abolition of the monopoly new player entered the consumer market. The competition increased in the telecom sector, the rates were slashed in order to grab the share of the market and the customers were provided with better services.

(Source TRAI)
Telecommunication Services: Telecommunication services include Basic service, Cellular service, internet Service Provider (ISP) and Very Small Apercture Terminal (VSAT) services. Government of India (GoI) plans to introduce a unified license for
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all telecommunication services in India, and has already allowed full mobility to wireless in local loop (WLL) operators as a first step. Telecom services are growing at an approximate rate of around 5 percent per year in terms of revenue and mere 10 % in terms of subscriber base in last five years. Partly the result is due to negative growth in NLD market (-14% Rs 51,410 million from Rs 59,880 million) and ILD market (-13% Rs 43,460 million from Rs 50,010 million) in 2003-04. Amongst telecom services, cellular services are the fastest growing, with CAGR of 40 percent over the past four years. Telecommunications Regulatory Authority of India (TRAI) expects that the total number of cellular connections would bypass the total number of fixed line connections by late 2004 and early 2005. (As on March 2004 subscriber base of cellular operators is 33 million and basic operator is 42.84 million) During the past three years, in terms of subscriber base telecommunications services have been growing at a CAGR of nearly 22%, owing largely to the rapid increase in cellular service subscribers. Fixed Service Provider (FSPs): Fixed line services consist of basic services, national or domestic long distance and international long distance services. The domestic market (i.e. excluding international revenues), has been growing more than 5 per cent annually during the past three years, and has a current market size of Rs 30,164 crores, with a base of 43 million lines. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in 18 circles, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. As a result, average-revenues-peruser (ARPU) of private operators are more than twice those of the stateowned service providers. The main revenue contributing value added services were NLD and ILD. The reduction in NLD and ISD tariffs punctured the potential of the key revenue streams. Internet telephony for ISD worsened the potential. Added to it was the phenomenal growth rate in cellular services. Both public players and private players are competing hard to capture more and more market share. MTNL and BSNL are the leading public sector players, whereas Reliance Info-com, Airtel, Tata-Tele-services and Touchtel are the leading private sector players.

Market shares of public and private players in fixed telephony

Source TRAI

Cellular Services: Mobile telephony was introduced in Indian markets in mid- 1990s. In the last few years, the sector has witnessed tremendous growth. The subscriber base is adding more and more customers every year. Mobile telephony recorded more than 52.2 million users in FY 2004-05, exceeding fixed line telephone subscriber base. Also, mobile segment has welcomed more and more players every year. Liberalized policies have ensured lower tariffs and reduced roaming rentals. This will lead to increased usage of mobile phones. The introduction of mobile technology in India and liberalization of sector changed the usage of telephone services in India, so many private companies entered into the sector like Bharti-Airtel, Reliance communication, Idea cellular, BPL Etc. after the NTP 1999 the competition between the private players increased as the call rates got decreased and the tariff plans has been introduced. As a result the private players offered attractive schemes to the customers and the mobile phones became cheaper for the customer in comparison to the fixed phones. The consumers of fixed line telephones shifted towards mobile telephony. The changes can be understand by the following figures, which show the percentage changes in the usage of wire line and wireless phone from 2002 to 2007.

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Number of Mobile Subscribers in India from 1997 to 2004

Year ending 31-march 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Mobile subscriber (millions) 0.34 0.88 1.2 1.88 3.58 6.43 12.69 26.15 52 143
(Source TRAI)

(Source TRAI)

The cellular services can be classified into two segments the one is CDMA (Code Division Multiple Access) and the other is GSM (Global System for Mobile Communications), CDMA and GSM are actually two

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technologies upon which mobiles works. In the starting only GSM services were launched, Reliance communications were the first to launch the CDMA technology in India, presently Reliance communication and Tata-Indicom provides CDMA technology and all the other companies namely Airtel, Vodaphone, Idea, BPL, Aircel, BSNL , MTNL are providing GSM technology. In south India reliance communications provides both GSM and CDMA technology. Number of GSM and CDMA subscribers Year 2000 2001 2002 2003 2004 2005 2006 2007 GSM SUBSCRIBERS (in millions) 3.1 5.05 10.5 22 37.4 58.5 105.4 180 CDMA SUBSCRIBERS (in millions) 0.8 6.4 10.9 19.1 44.2 85
(Source TRAI)

(Source TRAI)

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There are 25 private companies providing Cellular Services in 19 Telecom Circles and 4 Metro cities, covering 1500 towns across the country. Presently, there are five private service operators in each area, and an incumbent state operator. Almost 80% of the cellular subscriber base belongs to the pre-paid segment.

MARKET OVERVIEW:
Company Presence Subscribers Jul 06 (mn) Fixed BSNL MTNL Bharti Reliance Hutch IDEA Tata Teleservices Aircel Spice Others Total Government owned. Has ramped up GSM services. National presence (except Mumbai and Delhi) Government owned. Operates in Delhi and Mumbai. Integrated operator, with presence in all sectors. Largest mobile services provider. Integrated operator. Plans expansion of GSM network apart from being the largest private CDMA operators. Pure play GSM operator in 11 circles. Pure play GSM operator in 6 circles Integrated operator (along with VSNL) with presence in all segments. Provides CDMA services in 20 circles Operates in 2 circles. Announced Plans to expand GSM footprint in North and North east Pure play GSM player in 2 circles 0.4 50 4.0 37.4 3.8 1.4 3.0 Mobile 17.7 2.0 19.6 17.3 15.4 7.4 4.9 2.6 1.9 1.4 90 8.0% Fixed 74.7% 7.7% 2.7% 6.0% Share (%) Mobile 19.6% 2.3% 21.7% 19.2% 17.0% 8.2% 5.4% 2.9% 2.1%

Source: TRAI Several GSM cellular service companies are climbing the EDGE bandwagon. Hutch has already started and Bharti has made test calls on the EDGE platform and the company is in talks with Siemens for EDGEenabling some of its circles. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per

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cent. Previously, they were only allowed to buy companies outside their circle. Internet Service Provider: Internet has become very easily accessible with cyber cafes /kiosks increasing their density, not only in the metro towns but also in semi-urban towns. There is no restriction on the number of internet companies and more than 185 companies are operational. Internet telephony has been allowed officially from 1 April 2002. The growing demand of corporates for applications such as Electronic Commerce, internet leased lines, ISDN, VPN etc is driving the growth of the internet services market. However, the industry continues to face a number of bottlenecks in terms of regulatory treatment of ISPs, high bandwidth prices, low PC penetration, high cost of telephone access etc. Telecommunication Equipment: The domestic industry is worth Rs 303,000 million and has made little progress in comparison to the development of Telecom services in the country. The industry is faced with two major challenges: India is being steadily opened up to the global market, as trade restrictions are done away with, resulting in crashing of import duties across the board and easy movement of goods from overseas. It is forecasted that by 2005, imported telecom equipment will account for 75% of the expenditure on telecom equipment in India. Secondly, to cut down on operations costs, US, European and East Asian multinationals are outsourcing manufacturing to cheaper destinations in Taiwan and China. (Refer to Appendix 5 for more details on this segment) Growth in the telecom equipment market is expected to be driven by an increasing demand for telecom services. Key players like BSNL, Bharti, Reliance, BATATA, BPL and Hutchison will drive equipment market growth. Transmission equipment, cable and terminal equipment are expected to drive the market in the years to come. Also switching systems will remain a big market, with a size of around Rs 50 billion (CERC).

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Objectives and targets of the New Telecom Policy 1999

The objectives of the NTP 1999 are as under: Access to telecommunications is of utmost importance for achievement of the countrys social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy.

Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the countrys economy. Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country. Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower. Convert PCOs, wherever justified, into Public Teleinfo centers having multimedia capability like ISDN services, remote database access, government and community information systems etc. Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players.

Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities. Achieve efficiency and transparency in spectrum management. Protect defense and security interests of the country.
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 Enable Indian Telecom Companies to become truly global players.

REVOLUTION IN INDIAN TELECOMMUNICATION SECTOR

The telecom sector has shown impressive growth during the past decade. Today, India with more than 125 million telephone network is one of the largest communication networks in world, which continues to grow at a blistering pace. The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector. Telecom Sector Milestones:

Year 1991 1992

1994 1996 1997 1998

Event National Telecom Policy formed, telecom equipment segment liberalized Value added services like paging and VSATs opened to private sector, foreign investment guidelines initiated Guidelines for private sector participation in basic services and cellular services First round cellular services and basic services launched Telecom Regulatory Authority of India formed Internet Service Providers
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1999 2000 2001 2002 Source: Voice & Data, 2002

Policy announced, second round of bids completed New Telecom Policy, Migration from license fee to revenue sharing National long distance opened, long distance tariffs reduced, DoT corporative Fourth round of basic service licenses and cellular licenses finalized International long distance to be opened up to private sector

The Indian telecommunications sector consists of a network of over 21,000 telephone exchanges having a capacity of about 15 million lines and 12 million working connections. Indian telecom is poised for a boom by the turn of the century. The network is expected to expand to a level of 20 million connections, and telephone density is expected to grow to 2 per 100 people from the present density of 0.8. Also envisaged is further connectivity to all rural areas, comprised of 557,137 villages. The transmission network is due for expansion by the addition of 20,000 km of digital microwave systems, 23,000 km of optical fiber systems, a large number of UHF radio relay systems, and digital access via domestic satellite systems. The National Telecom Policy of 1994 has paved the way for private sector participation and funding to achieve the aim of universal coverage of telephone services at affordable prices. Initiatives have already been taken to invite proposals from Indian registered companies for grant of operating licenses for basic telephone service. In addition, a number of private sector companies have been licensed to provide various value-added services in the country. A regulatory authority is also being set up, and suitable arrangements are being made to protect and promote the interests of consumers and to ensure fair competition.

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The government has recently announced a program of incentives to boost private investment in the telecom sector. Telecom, which will now be treated as infrastructure, would be eligible for all fiscal benefits that other infrastructure sectors get. These incentives include five year tax holiday and concessional project duty import. The telecom sector would also be exempt from the minimum alternate tax. The External Commercial Borrowings limit for telecom projects will be made flexible. The Department of Telecommunications and financial institutions have also finalized an assign ability agreement which will facilitate funding of cellular and basic telecom projects. These incentives will be extended to all cellular and basic telecom operators. Status of tenders issued for value-added services: In order to achieve international standards, value-added services were opened to private investment in July 1992. In the area of radio paging, mobile radio trunking and cellular mobile telephone service, a system of tendering is being followed for the grant of licenses because of limitations of frequency spectrum. For all other value-added services, companies registered in India are permitted to operate under license on a non-exclusive basis. The government has allowed maximum foreign equity of 51% for value-added services, except radio paging and cellular mobile telephone services which are 49%. Cellular Mobile Telephone Service: The tenders for these services were invited in two phases. In the first phase, tenders for the four metropolitan cities of Delhi, Mumbai (Bombay), Calcutta and Madras were invited in 1992. Eight Indian registered companies, two for each metropolitan city were given license in November 1994. The service has started in all the four metropolitan cities in the latter half of 1995. The names of the licensees in the four metropolitan cities are as follows: MUMBAI (BOMBAY) DELHI a) BPL Systems & b) Hutchison Max Telecom. Projects Ltd. a) Bharti Ltd. Cellular b) Sterling Cellular Ltd.

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CALCUTTA MADRAS

a) Modi Telestra Pvt. b) Usha Martin Telecom Ltd. Ltd. a) RPG Cellular b) Skycell Communications Services Ltd. Pvt. Ltd.

(IIMA) In the second phase, tenders for franchising cellular mobile telephone service in 20 Telecom Circles (excepting four metro politan cities) were invited in January 1995. Thirty three (33) licenses have been awarded to 13 Indian registered companies covering 18 Telecom Circles. No bids were received for Jammu & Kashmir and Andaman & Nicobar Islands Circles. The service has been launched commercially in 11 cities in the Telecom Circles. Radio Paging Service: In the first phase, tenders to provide Radio Paging Service in 27 major cities of the country were invited in May 1992. Nineteen (19) Indian registered companies have been awarded licenses for the operation of Radio Paging Service in 27 cities. The service has since started in all the 27 cities by one or more operators. In the second phase, tenders for providing Radio Paging Service in 19 Telecom Circles, excluding 27 major cities were invited in February 1994. Thirty-one (31) licenses have been awarded to 11 Indian registered companies for operation of Radio Paging Service in 18 Telecom Circles. Public Mobile Radio Trunking Service: 262 license agreements have been signed with 29 companies for operation of PMRTS in 86 cities. Electronic Mail: Licenses have been awarded to 15 companies. Twelve companies have started the service. There are about 28,000 e-mail subscribers in India. Voice Mail and Audiotex Services: Twenty-nine licenses have been awarded to nine companies. Service has already been started by two companies in Mumbai. 64 KBps Closed User Group (CUG) Data Service through VSAT:
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Thirteen licenses have been awarded to private Indian companies. Eight companies have commenced the service. Credit Card Authorization: Licenses are likely to be issued to two companies for Credit Card Authorization. Wireless Service: Wireless services subscriber base increased by 3.53 million in March 2007 as compared with 6.21 million in February 2007. This lower growth in the month of March 2007 can be attributed to insistence by the Government to ensure verification of subscribers. The total wireless subscribers at the end of March 2007 are 166.05 million as compared to 98.78 million in March 2006 registering an annual growth of around 68%.

(Source TRAI)

Wire-line Subscribers: In the Wire-line segment a total of 0.40 million subscribers were added during March 2007 as compared to a decline of 0.02 million in February 2007. With this the total subscriber base of wire-line reached 40.78 million in March 2007 as compared to 41.54 million in March 2006 registering a decline 1.82%.

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Tele-density: The gross subscriber base reached 206.83 million at the end of March 2007. The tele density is 18.31% at the end of March 2007 as compared to 12.80 at end of the March 2006 registering an increase of 43%. Broadband Subscribers: The Broadband connections (>256 Kbps download) in the country have touched 2.30 millions at the end of March 2007 as compared to 1.35 millions in March 2006 registering a growth of 70%. The broadband subscribers were 2.21 million in February 2007 and thus there is addition of 0.09 million broadband subscribers in March 2007. Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. The share of private sector has raised from 47.05 per cent in 2005 to 72.40 per cent in December 2007.

(Source: TRAI)

Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition. The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service. The long
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distance domestic as well as international charges have also fallen considerably.

Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy (NTP) 1999. TRAI has endeavored to encourage greater corporation in the telecom sector together with better quality and affordable prices. As per a new study by TRAI (Telecom Regulatory Authority of India), percentage of dialup subscribers declined to 66 % in March 2006 from 84 % year-on-year & came down to 60 % in June 2006. India had around 7.7 million Internet subscribers by June 2006. Around 20 % of those were using broadband to access the Internet, but the segment is witnessing a fast growth rate boosted by cheap tariffs and easy & economic installation options as most broadband connections in India are DSL (digital subscriber lines) connections, provided as an add-on over existing fixed line connections, thereby reducing installing costs. In order to attract more customers, operators are offering exciting packages while some are even providing installations at zero or very low cost. As per RNCOS report "Indian Telecom Sector Analysis (2006-2007)", "The Internet Access Market in India is all set to grow twice the existing value, with the increase in de-regularization, literacy level, increasing consumer awareness, PC penetration etc. Broadband Wireless Market in India is all set to take off in a big way. Over 70% of the households in India have no access to wired lines and the number of mobile phone users far outnumbers PC owners. Such a scenario presents a very good opportunity for Wireless Broadband Services." However, broadband connections in India are still very much behind target. Till 2005, 3 million subscribers were aimed but just 0.18 million broadband subscribers were achieved. At the end of October 2006, number
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of broadband subscribers was around 1.9 million & is not likely to reach 2007-end target of 9 million. Among the major hindrances in the Indian broadband sector is the speed at which broadband is provided. Though the tariffs have reduced significantly, the speed of the connection is still insufficient to justify its price. Moreover, improper & false billing and slower connection speeds (than specified by the ISP) are the key challenges for the sector. A cost-effective & scalable technology like WiMAX is needed to achieve these set targets. WiMAX has the potential to offer a perfect solution with long-range, wireless & scalable broadband solutions, which can be quite successful in Indian market. As per the Nokia's estimation, India will be the number two mobile handset market worldwide by 2010 as demand of handset continues to grow. India will be the second largest mobile handset market by the year 2010, according to Nokia, the largest mobile manufacturer in the world. Presently, India stands at third spot in the list of mobile phone markets in terms of Nokia sales volume, after the United States and China, as per the news published on Tech2.com. "India is one of the fastest growing markets right now in terms of mobile phone consumption and usage. As this trend is expected to continue, we are planning to cash in on and soon have the country emerge as the second-largest consumer for Nokia by 2010," said Director-Sales of Nokia India, Sunil Dutt, in news published on Agency faqs. According to Nokia, the launch of affordable and smart handsets with some attractive features is the major driver of the growth in the mobile market of India. The cell phone users in India have doubled during the past years to 150 million by the end of the year 2006. In India, more than six million new mobile phone users are signing up each month that makes India the fastest developing mobile phone market in the world. This growth is predicted to come greatly from above 600,000 villages where a major fraction of Indian population lives. Although the average Indian mobile user remains costconscious because of low- income living and huge size of mobile subscriber in India uses only SMS or voice services; new and more multifunctional handset with features like cameras, FM radio and mobile video are becoming more and more popular. Also, India is the largest untapped market
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where the 20% of the total world's population lives. According o the COAI (The Cellular Operators Association of India), Mobile operators in India faces numerous regulatory obstacles, including the high fees of interconnection, abuse by present operators and shortage of spectrum, high govt. taxes and levies that include high license fees. As per the research analyst at RNCOS, "There seems no good reason why the mobile market of India can't grow more speedily than current estimation if the competitive and regulatory barriers can be removed. The Indian government's bottom line must be that if they have the mobile penetration of 3% in the year 2006, then they will be discouraging their economic position".

Role of Telecom Regulatory Authority of India (TRAI)

Indias telecom policy is guided by overall development goals and the interests of the consumer. In order to protect and promote consumer interest and ensure fair competition, an independent regulatory authority known as Telecom regulatory authority of India (TRAI) was established in 1997. The sector is more liberalized then many developing markets and in most respects, the regulatory framework has caught up with the need to manage a highly competitive market environment. Competition has been introduced into all segments and licenses are available to new entrants. Tariff control have been removed or structured as ceiling tariffs in areas where there is limited competition. There is a current initiative to simplify the charging brands for log distance calls and to remove some of the artificial constrains in the segregation of long distance and access licenses. TRAI has actively intervened in many areas to ensure a level playing field between operators.

TRAIs initiative to regulate the number of plans and increase transparency

TRAI has released a consultation paper on issues arising out of plethora of tariff offers in Access Service Provision. The telecommunication Sector in
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India has become competitive in the post-liberalization era, especially in the access segment constituting basic and cellular mobile services. The policy and frame work for tariff regulation has also been reviewed and suitably modified by the Authority from time to time keeping pace with the emerging competitive market. The tariff regulation currently stands at a point where tariffs are forborne except for fixed rural line services, national roaming in mobile service and Leased Circuits. The service providers have been given the flexibility to report their tariff plans to the Authority within 7 days from the date of implementation after conducting a self-check with the relevant regulatory principles which include tariffs being IUC compliant, non-predatory and non-discriminatory. The Authority has also placed a cap of 25 on the number of plans that can be offered by an access provider in each licensed service area. This includes both post paid and pre paid tariff plans. However, the competitive activity has also resulted in a large number of tariff offers being made by the service providers in order to acquire and retain their subscribers. Transparency in service provision is and has been one prime issue of concern for the Authority. One of the landmark provision made to protecting subscriber from any tariff hike for a minimum period of 6 months from the date of enrollment of the subscriber to that tariff plan. The Authority has issued several regulatory mandates after that also in order to enhance transparency in provision of service and to protect the interests of the consumers of telecommunications services in the country. The Consultation Paper provides the details of such consumer friendly initiatives of the Authority and some of the important decisions/mandates of the Authority are: Any tariff plan presented, marketed or offered as having long term or lifetime or unlimited validity in lieu of an upfront payment shall continue to be available to the subscriber for the duration of the period as prescribed in the plan. In the case of lifetime or unlimited validity plans, as long as the Service Provider is permitted to provide such telecom service under the current license or renewed license.

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 No item of tariff in the tariff plan can be increased by the access service provider during the relevant validity period. However, the service provider is free to reduce tariffs at any time. Tariff Plans with misleading titles prohibited. No tariff plan shall be offered, presented, marketed or advertised in a manner that is likely to mislead the subscribers. No chargeable Value Added Services shall be provided to a customer without his explicit consent. Any Value Added Services which was earlier been provided free of charge shall not be made chargeable without the explicit. Publication/advertisement of tariff for consumer information shall contain minimum essential information and websites of the service provider shall contain complete details of the tariff plans as well as financial implications for various usage slabs. Access service providers to inform the customer in writing, within a week of activation of service, the complete details of his tariff plan. In addition, as and when there are any changes in any aspect/item of tariff in the chosen package, the operator shall intimate, in writing, such changes to those subscribers whose tariff packages undergo a change. The Authority has been watching the developments in the market closely and also analyzing the feedback from the consumers on the market activities which has further intensified with several new licensees starting their operations and the existing operators expanding their roll out. Despite the various measures taken by the Authority to enhance transparency in the matter of service provision and to protect the interest of the consumers, there is a growing feeling among the customers that the various offers being made by the access service providers are not transparent and thus are not consumer friendly. The Authority continues to receive complaints from consumers and consumer organizations highlighting issues affecting transparency in the tariff offers of access service providers. Considering the sensitivity of the matter, the Authority keeps a look at the regulatory framework governing tariff offers by following the well established procedure of having an open consultation with all the stakeholders.

27

GROWTH DRIVERS
Vast geographic expanse of India acted as a catalyst to boost mobility Low call costs since 2002 fueled the wireless segment Narrowing gap of call costs between fixed and wireless convinced customers to subscribe to wireless connections Nationwide roaming facilities on GSM Internet + Subscription bundling Reduced cost of handsets (affordability factor) Customs duties have been reduced from 10% to 5% In remote areas where providing fixed line connections were difficult, wire-less did the magic. CDMA fixed wireless gave customers 3 in one advantage Mobility, internet and messaging. An accelerated rate of productivity growth wouldn't be possible unless companies large and small across the country are using information technology to cut costs, increase output, and generally rebuild the way they are doing business. The need to boost competition, provide better value to customers, and slice costs from the supply chain remains a perpetual driving force for technology spending. Depending on where the technology is positioned in the company, corporate investment in information systems will lead to increased sales of services and software.

28

Market Share for major telecom companies

Source: TRAI

The Cellular Operators Association of India (COAI):

The Cellular Operators Association of India (COAI) was constituted in 1995 as a registered, non-profit, non-governmental society dedicated to the advancement of communication, particularly modern communication through Cellular Mobile Telephone Services. With a vision to establish and sustain a world-class cellular infrastructure and facilitate affordable mobile communication services in India, COAI main objectives are to protect the common & collective
29

interests of its members. Keeping the mandate given to it, COAI is the official voice for the Indian Cellular industry and on its behalf it interacts with: The policy maker, the licensor, the regulator, the spectrum management agency, the industry (telecom /non-telecom) associations

Objectives of the COAI

To improve standards and competitiveness in the Cellular Industry and attain the status of world class infrastructure. To facilitate affordable mobile telephony services for Indians.
To study the best practices & research of the industry as well as to

analyze the Cellular Experience worldwide.

To assist relevant authorities by providing them information about

the industry to help them formulate suitable policies for the industrys growth.
To improve standards and quality of services in consultation with

GSM India the Indian chapter of the GSM Association.

To maintain and upgrade services in terms of speech transmission,

access, coverage, security etc, to enable expansion of cellular services. To help address problems of cellular operators relating to operational, regulatory, financial, or licensing through interaction with the Ministry of Communications & IT, Ministry of Finance, Ministry of Commerce, Department of telecommunications, Telecom Regulatory Authority of India, Financial Institutions etc.
To undertake continuous efforts for customer satisfaction.

30

 To dispense information and spread awareness among operators

and consumers on issues relating to quality and other value added services provided by the operators to their subscribers. To help achieve the national objectives of increased tele-density and improved Rural Access.

Members of COAI:
Core members: Name of the member Aircel Limited Bharti Airtel Limited Region Chennai, Tamil Nadu, West Bengal, Assam Orissa, North East, Jammu & Kashmir, Bhiar, Himachal Pradesh Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai (Metro), Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP (West), UP (East), West Bengal, Assam, North East, Bihar Mumbai (Metro) Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka, Punjab, Haryana, Rajasthan, U.P. ( East), U.P.(West), Kerala, Maharashtra & Goa, Tamil Nadu, West Bengal Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh,Kerala, Haryana, U.P.(W), U.P.(E), Madhya Pradesh, Mumbai, Himachal Pradesh Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh, North East, Orissa, West Bengal
31

BPL Cellular Limited Vodafone Group

Idea Cellular Limited

Reliance Telecom Limited

Spice Communications Limited

Karnataka, Punjab
Source CIOU

India poised to be a USD 40 bn - 45 bn telecom market by FY 2010: Telecom sector targets announced by Government of India
250 million subscribers by 2007 500 million subscribers by 2010 20 million broadband subscribers by 2010 Mobile access to all villages with population of more than 1,000 by 2007

Profile of Reliance Anil Dhirubhai Ambani Group

(ADA Group)

32

The Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002)

It is India's largest business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion), cash profit of Rs 12,500 crore (US$ 2.8 billion), net profit of Rs 6,200 crore (US$ 1.4 billion) and exports of Rs 15,900 crore (US$ 3.6 billion). Reliance Communications has a customer base of over 38 million customers which is by far one of the largest in India. There are about 8.5 million individual shareholders that stand among the largest in the world. The Group assets of over US$ 7.5 billion and Group net worth of over US$ 7 billion. Zero net debt at Reliance Anil Dhirubhai Ambani Group level. Group market capitalization of over US$ 21 billion and over US$ 4 billion owned by foreign investors.

Reliance flagship Stocks are included in esteemed stock exchanges as Sensex, Nifty and MSCI.
33

Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks. The group (ADAG) was formed after the 2 feuding brothers Mukesh Ambani and Anil Ambani, split Reliance Industries. Reliance Anil Dhirubhai Ambani Group is a group of companies headed by Anil Ambani. The companies under the group are: Adlabs Cinemas

Reliance Capital
o o o o o o

Reliance Capital Reliance Mutual Fund Reliance Life Insurance Reliance General Insurance Reliance Money Reliance Consumer Finance

Reliance Communications Reliance Energy Reliance Power

34

Reliance Health Reliance Entertainment Tech Reliance DA-IICT

Reliance Anil Dhirubhai Ambani Group, an outcome of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), 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 Communications is Reliance ADA Groups flagship company, it is India's largest private sector information and Communication Company, with over 30 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wire line), convergent (voice, data

35

and video) digital network, to offer services spanning the entire infocom value chain. Other major group companies Reliance Capital and Reliance Energy are widely acknowledged as the market leaders in their respective areas of operation.

The new identity (logo) of ADAG

The symbol, Reliance APEX conveys the spirit of excellence, the human urge for progress, the desire to reach higher, the resolve to shape a better future. The APEX is the highest point the pinnacle - an abiding symbol of hope and optimism, achievement and success.

The multi dimensional look conveys our deepest appreciation for the rich diversity of human life and human desires the unifying basis for our varied business interests.

36

The majestic Blue represents stability, confidence, self-assurance and optimism.

The auspicious Red represents energy, dynamism, passion and determination.

Anil Dhirubhai Ambani Group Structure

(ADA Group)

37

Reliance Communication
Type Founded Headquarters Key people Public (BSE: RCOM) 2004 Navi Mumbai, India Anil Ambani, Chairman and Managing Director
38

Industry Products Revenue Employees

Satish Seth, Vice-Chairman Reliance-ADA Group S. P. Shukla, CEO - Personal Business & Director - Reliance Telecom Telecommunications CDMA service, GSM service, Broadband Internet Service US$ 4 Billion 33,000

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company. Reliance Infocomm is an Indian telecommunications company. Reliance Infocomm is currently managed by Anil Dhirubhai Ambani. It uses CDMA2000 1x technology.

Vision of the founder- Late Shri Dhirubhai Ambani

"We will leverage our strengths in executing complex global-scale projects to make leading edge information and communication services affordable by 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 while enabling millions of India's knowledge workers to deliver their services globally". Reliance communication envisions a digital revolution that will sweep the country and bring about a New Way of Life. A digital way of life for a New India. With mobile devices, net ways and broadband systems linked to powerful digital networks, Reliance communication will usher fundamental changes in the social and economic landscape of India. Reliance communication will help men and women connect and communicate with each other. It will enable citizens to reach out to their work place, home and interests, while on the move. It will enable people to work, shop, educate and entertain themselves round the clock, both in the
39

virtual world and in the physical world. It will make available television programs, movies and news capsules on demand. It will unfurl new simulated virtual worlds with exhilarating experiences behind the screens of computers and televisions. Users of Reliance communication's full range of services would no longer need audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to see movies. Books and CD ROMs would not be needed to get educated. Newspapers and magazines would not be required to keep abreast of events. Reliance communication will disseminate information at a low cost. "Make a telephone call cheaper than a post card". These prophetic words of Dhirubhai Ambani will be a metaphor of profound significance for Reliance communication. Reliance communication will regularly unfold new applications. Continually adapt new digital technologies. Create new customer experiences. Constantly strive to be ahead of the world. Reliance communication will transform thousands of villages and hundreds of towns and cities across the country. Above all, Reliance communication will pave the way to make India a global leader in the knowledge age.

PRODUCT RANGE
For the first time in the CDMA space anywhere in the world, Reliance Infocomm has indigenously developed a revolutionary product, named Get Started Kit (GSK), to empower its subscribers with the flexibility to choose from its wide range of handsets, as well as the choice to select mobile phone numbers of one's choice. The benefits of introducing GSK are listed below. GSK offers flexibility to choose from an array of handsets. GSK also boosts second hand phone market and enables reusability of De-provisioned handsets of Reliance. Rollout across Reliance Web-Worlds and 40,000-strong channel chain

India's largest mobile services provider with over nine-million subscribers, Reliance Infocomm rolled out the GSK, which is available at Reliance WebWorlds and the 40,000-strong channel partners across the country.
40

With the new GSK, available for both prepaid and post-paid subscribers in separate packs, one can purchase any Reliance-approved handsets from the open market and get them activated, that too with numbers of their choice. Hitherto, Reliance Infocomm, or for that matter any other CDMA operator, has been providing handsets with pre-activated numbers. The GSK consists of a pre-allocated ten-digit RIM number and a nine-digit unique PIN to help activate a handset. The new product is ideally suited for those who would like to have a number of their choice, those who would like to have local numbers when they move to new cities or towns and those who would like to either sell or gift their old handsets and buy new ones. Reliance Infocomm Ltd., a Reliance group company, is India's largest mobile service provider with over 9 million customers. Reliance Infocomm has established a pan-India, high capacity, integrated (wireless and wireline) and convergent (voice, data and video) digital network, to offer services spanning the entire Infocomm value chain - infrastructure, services for enterprises and individuals, applications and consulting. Reliance communications current ventures include: Reliance India Mobile - Postpaid and Prepaid Wireless services - Fixed Wireless Phone, Fixed Wireless Telephone Reliance Data Card - A high Speed Mobile Internet Device Broadband services Reliance PCOs.

Reliance Communications provides a wide range of hand sets to their customers, Reliance India Mobile Includes LG, Nokia, Classic, Motorola and Black Berry hand sets. The handset ranges from Rs. 777(classic) to Rs. 30990(Black berry). The customer can choose any of the services of RIM (prepaid and postpaid) according to their choice and usage and then select the mobile set. The post paid services of rim gives very attractive plan which no other company is providing in the lucknow cluster, it gives individual as well as corporate connections, the advantage of corporate connection is that in this connection CUG can be activated and the subscriber of corporate connection can talk to each other for free. There are other plans for different

41

usage like all India rim to rim free (unlimited 440) and roaming plans are also provided by the RIM. In the pre paid section RIM offers 99 and 299 GSK, with these GSK a customer can start his connection the 299 GSK comes with lifetime incoming. After that RIM provides a wide range of recharge coupons starting from Rs. 10 to Rs. 10000 on Reliance mobile and from RS.25 to Rs. 3370 on Reliance FWP. RIM also provides special tariff vouchers (STV) according to the different usage of customers.

List of handsets provided with RIM In this project only Reliance India Mobiles (RIM) has been included. This has been intentionally done as the Broadband and Reliance PCOs are a Separate division under Reliance Communications Enterprise Division so these sections have been excluded.

MANTRAS OF SUCCESS of Late Shri Dhirubhai Ambani

42

 Growth has NO LIMIT at Reliance. I keep revising my VISION. Only when you dream it. You can do it. Give the youth a proper environment. Motivate them. Extend them the support they need. Each one of them has infinite source of energy. They will deliver. Dont give up, Courage is my Conviction. Think Big, Think fast and Think Ahead, Ideas are no ones monopoly. If you work with Determination and with Perfection, Success will follow. Meeting the dead lines is not good enough, beating the dead lines is my Expectation. Between my Past, the Present and the Future, there is one common factor Relationship and Trust. This is the foundation of our Growth. We bet on people. You do not require an invitation to make profits. Pursue your goals even in the face of difficulties and convert adversities into opportunities.

Milestones of Reliance Communication

(1999-2007)
1999 The Dream:

43

"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. The Reality, November 15 Reliance Infocomm begins Project Planning 2000 May 10 Optic fiber laying process commences in Gujarat, Andhra Pradesh & Maharashtra. 2001 May 1 First Media Convergence Node made "Ready for Electronics" at Jaipur. 2002 January 15 First Base Transceiver Station (BTS) made "Ready for Electronics". February 25 Obtains International Long Distance License from Govt. of India. December 27 Honorable Prime Minister of India, Atal Behari Vajpayee einaugurates Reliance Infocomm. Honorable Union Minister for Parliamentary Affairs, Information Technology and Communications, Pramod Mahajan, inaugurates NNOC. 2003 February 14 Launches Reliance Web-World in top 16 cities.
44

 March 31 Launches International Long Distance Services. April 25 Introduces color handsets May 1 Launches Reliance India-Mobile Service commercially in top 92 cities with one million customers. July 1 Introduces Monsoon Hungama Offer: Instant multimedia mobile phone and connection for just Rs 501. Sets world record - acquires one million customers in 10 days. 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 December 19 Adds 4500th Contact Centre Executive

45

Contact Centre becomes the largest such facility deployed by any single Indian Service Provider 2004

January 12 International wholesale telecommunications service provider, FLAG Telecom amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocomm. 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 May 27 Reliance Infocomm receives the Most Promising Service Provider of the Year 2003 (Asia Pacific) award at the Asia Pacific Technology Awards instituted by Frost & Sullivan. September 6 Mukesh D. Ambani, Chairman, Reliance Infocomm, receives Voice & Data "Telecom Man of the Year" award October 19 Reliance Infocomm bags the CDMA Development Group's 3G CDMA Industry Achievement Award for International Leadership. 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.
46

2005

June 26 Anil Ambani appointed Chairman of Reliance Infocomm. August 11 XLRI's Post-Graduate Certificate program in Logistics Supply Chain Management (PGCLSCM) launched on Reliance Web-World's virtual classroom platform. first of its kind e-learning program in India. September 15 Reliance Communications, UK launched Reliance India-Call service in England and Wales enabling callers to make high-quality calls to India from any landline or mobile phone at economical rates. October 13 Reliance Web-World wins Frost & Sullivan Market Leadership Award for Video Conferencing services. 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. 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. April 27 Reliance Communications launches Indias first Talking Message Service (TMS) enabling its mobile users to send voice messages to

2006

47

not only other mobiles but also fixed wireless phones (FWP) and landlines.

July 03 Reliance Communications launches 'Hello Capital Plan' to enable its subscribers in 19 state capitals to call each other at the local call rate of 40 paise per minute. July 19 Reliance Communications slashes ILD rates by up to 66%. September 5 Union Communications & IT Minister Thiru Dayanidhi Maran inaugurates Reliance Communications FALCON Cable System. December 28 Reliance Communications FLAG Telecom announces FLAG Next Gen to cover 60 countries.

2007

January 10 Reliance Communications adds a record 1.4 million subscribers in December 06. January 30 Reliance joins Lenovo and Intel for "Internet on the Move". 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.

48

May 2 A Classic Bonanza Reliance Communications unveils handsets @ Rs 777. May 9 RCOM bags West Bengal E-Governance Project. August 31 Reliance Communications , the official global partner for the first edition of ICC Twenty 20 World Cup Championship 2007 in South Africa unveils the coveted Trophy in Mumbai and announces Dhoni Dhanadan Pack. September 10 RCOM launches Black-Berry 8830 World Edition Smart-phone 'Bloomberg Professional' now on Reliance Mobile. October 20 Reliance Communications to launch nationwide GSM Services under existing Unified Access Service Licenses.

POSTPAID MOBILE PLANS

Postpaid Mobile Plans Plan Name Airtel Community Airtel Welcome
49
Gold Airtel Nights

Plan Activation Charges Rs.355 Membership Fee NIL Security Deposit Rs.250 Bill Plan Charge Rs.2499 CLIP NIL LOCAL RATES (Rs. / Min) Airtel Free** Other GSM / CDMA Rs.1 Landline / WLL Rs.1 STD RATES (Rs. / Min) Airtel Free** Other GSM / CDMA Rs.1 Landline / WLL Rs.1 Extra Benefits Free calls ** Airtel to Airtel Local Airtel to Airtel STD Discount Call Rate 4000 min/ Month 1000 min/Month NIL

Plan Rs.355 NIL Rs.250 Rs.200 NIL Rs.1 Rs.1 Rs.2

299 Rs.355 NIL Rs.250 Rs.299 NIL Rs.1 Rs.1 Rs.1

Rs.355 NIL Rs.250 Rs.399 NIL Rs.0.60 Rs.0.60 Rs.1.20

Rs.2.40 Rs.2.40 Rs.2.40

Rs.2.40 Rs.2.40 Rs.2.40

Rs.2.40 Rs.2.40 Rs.2.40

NIL NIL NIL

NIL NIL NIL

Rs.399(All Calls)

SMS Charges

NIL

NIL

NIL

50% On Tariff B/W (11PM-7 AM) (Sunday -24 Hours) Rs.0.10 Local Rs.1.00-National (B/w 11PM -7 AM) (Sunday -24 Hours) Rs.0.30 Rs.0.30 Rs.2 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

SMS (Rs.) Local CDMA National International VAS ISD (Rs. / Min) Row1 Row2 Row3 ISD Calling Rows Row1 USA, Canada, Row2 Row3

Rs.1 Rs.1 Rs.1 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

Rs.1 Rs.1 Rs.1 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

Rs.1 Rs.1 Rs.2 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin

50

Postpaid Mobile Plans

Plan Name Activation Charges Membership Fee Security Deposit Bill Plan Charge/Rental CLIP Free LOCAL RATES (Rs. / Min) Airtel Rs.1/2 min Other GSM / CDMA Rs.1 Landline / WLL Rs.1 STD RATES (Rs. / Min) Airtel Rs.1 Other GSM / CDMA Rs.1 Landline / WLL Rs.1 ** Free calls Airtel to Airtel Local NIL Airtel to Airtel STD ISD Row1 Other Discounts SMS (Rs.) Local CDMA National International VAS ISD (Rs. / Min) Row1 NIL One World Plan Rs.355 NIL Rs.250 Rs.699 Super Value 250 Rs.355 NIL Rs.250 Rs.250 Free Rs.0.30 Rs.0.50 Rs.1 Rs.2.40 Rs.2.40 Rs.2.40 NIL NIL Add-On Plan NIL NIL Rs.250 NIL Free Rs.1 Rs.1 Rs.1 Rs.2.40 Rs.2.40 Rs.2.40 SEE BENEFITS* SEE BENEFITS* -SEE BENEFITS* Rs.1 Rs.1 Rs.2 Rs.5 Rs.3 Rs.6.4 Airtel Global Advantage Rs.355 NIL Rs.250 Rs.3999 Free Free Free Free Free** Free** Free** 4000 min/ Month 2000 min/Month 100 min/ Month SEE BENEFITS* Free 5000/ Month

NIL Rs.1 Rs.1 Rs.1 Rs.5 Rs.3 Rs.2.90 (For USA/Europe Fixed Lines & Canada) Rs.6.4 Rs.9.2 Rs.40

NIL Rs.1 Rs.1 Rs.2 Rs.5 Rs.3 Rs.6.4

Rs.5 Rs.3 Free 100 Min & Rs.6.2 /min Thereafter

Row2 Rs.9.2 Rs.9.2 Rs.9.2 Row3 Rs.40 Rs.40 Rs.40 ISD Calling Rows Row1 USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Row2 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Row3 Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin Plan Name Benefits * Add-On Plan Existing customers can take upto 3 add-on connections in their name & can enjoy the calling between these three numbers @ Re.0.10/Min. Free Talktime: Rs.100 (Local +STD). Local pack of Rs.49 is applicable. Call rates: A-A: Re.0.15/Min, A-M: Re.0.25/Min, A-F: Re.0.25/Min.

51

 STD pack of Rs.98 reduces all STD to Re.1/Min. Airtel Global Advantage

Incoming, outgoing & STD calls free only while roaming on Airtel Network. Bill discount on International Roaming Usage Rs. 1000 per month.

Postpaid Mobile Plans

Plan Name Diamond 499 Activation Charges Rs.355 Membership Fee NIL Security Deposit Rs.250 Bill Plan Charge/Rental Rs.499 CLIP Free LOCAL RATES (Rs. / Min) Airtel Rs.1 Other GSM / CDMA Rs.1 Landline / WLL Rs.1 STD RATES (Rs. / Min) Airtel Rs.2 Other GSM / CDMA Rs.2 Landline / WLL Rs.2 ** Free calls 1.Airtel to Airtel Local NIL 2.Airtel to Airtel STD / NIL Other STD 3.ISD NIL 4.Roaming NIL New India Home Rs.355 NIL Rs.250 Rs.299 Free Rs.1/2 min Rs.1 Rs.1 Rs.1 Rs.1 Rs.1 NIL NIL NIL NIL Platinum 699 Rs.355 NIL Rs.250 Rs.699 Free Rs. 0.50 Rs. 0.50 Rs.1 Rs.2 Rs.2 Rs.2 NIL NIL NIL NIL Airtel Global Advantage Rs.355 NIL Rs.250 Rs.599 Free Rs.1 Rs.1 Rs.1 Rs.1 Rs.1 Rs.1 Rs.599 (All Calls & Roaming#) # 100 Min Roaming Free Airtime(FAT) NIL

Other Discounts/ Benefits SMS (Rs.) Local CDMA National International VAS ISD (Rs. / Min) Row1 Row2 Row3

SEE BENEFITS * Rs.1 Rs.1 Rs.2 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

SEE BENEFITS* Rs.1 Rs.1 Rs.1 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

SEE BENEFITS * Rs.1 Rs.1 Rs.2 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

Rs.1 Rs.1 Rs.1 Rs.5 Rs.3 Rs.6.4 Rs.9.2 Rs.40

52

ISD Calling Rows Row1 USA, Canada, Europe (Fixed Line), Australia, Singapore, Hong Kong, Thailand, Malaysia, Indonesia, New Zealand. Row2 Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world Row3 Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru, Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin Plan Name Benefits * Diamond Rs.61 Topping applicable. Local A-A Rs.0.50/min, A-M Rs.0.70/min, ALandline/Fixed Rs.1/min 499 New India Home Platinum 699
Rs.98 Topping with reduced STD Rate of Rs.1/min Roaming across Bharti circles at Re1/min Rs.98 Topping with reduced STD Rate of Rs.1/min

POSTPAID MOBILE PLAN

Plan Name
Fixed Monthly Charges Pulse rate (For intra/inter circle calls) Free calls /month (Worth Rs.)

Plan-99 (Student Power)

Plan100

Plan140

Plan-SMS Power

Plan-225

Plan-299 One India

99 60 0

100 60 0

140 60 0

198 60 0

225 60 60

299 60 0

Intra circle (Local) calls (Rs./Min)

(i) To GSM (Own network) (ii) To GSM/CDMA (Others network) (iii) To Fixed/WLL (Own network) (iv)To Fixed/WLL (Other network)

1.50 1.50

1.00 1.40

1.00 1.20

1.20 1.80

0.90 0.90

0.40 1.00

1.50

1.00

1.00

1.20

0.90

1.00

1.50

1.40

1.20

1.80

0.90

1.00

Inter Circle (STD)Calls(Rs./Min)

(i) GSM (Own network)

2.00

1.80

2.00

2.00

2.00

1.00

53

(ii) To GSM/CDMA (Other network)

2.00

2.40

2.00

2.40

2.00

1.00

(iii) To Fixed /WLL (Own network)

0 to 200 Kms > 200 Kms

2.40 2.40

1.80 1.80

2.40 2.40

2.00 2.40

2.40 2.40

1.00 1.00

(iv) To Fixed/WLL (Other network)

0 to 200 Kms > 200 Kms

2.40 2.40

2.40 2.40

2.40 2.40

2.40 2.40

2.40 2.40

1.00 1.00

ISD Calls(Rs./Min) **
ISD PULSE RATE (Sec) 60 7.20 7.20 9.60 9.60 12.00 60 7.20 7.20 9.60 9.60 12.00 60 7.20 7.20 9.60 9.60 12.00 60 7.20 7.20 9.60 9.60 12.00 60 7.20 7.20 9.60 9.60 12.00 60 7.20 7.20 9.60 9.60 12.00

*Row 1 *Row2 *Row3 *Row4 *Row4

No. of free SMS *Row 1 (Own USA, CANADA, UK network) *Row2 Sri Lanka *Row3 *Row4 *Row4

2000 -(1500 Local + 500 National) Europe (Other than UK), Singapore, Thailand, Malaysia, Indonesia, Hongkong Kuwait, Bahrain, UAE, Oman and Qatar Rest of the world

100

**-- Calling Rows ISD --

SMS Charges
--

54

Free SMS worth Rs.

--

--

20

--

30

--

a. Local (within Local Service Area) (I ) Own network (ii) Other network b. National (Outside Local Service Area)
(i) Own network (ii) Other network 0.50 0.50 0.50 1.00 0.80 0.80 0.40 0.40 0.80 0.80 0.80 0.80

0.50 0.50

0.50 1.00

0.40 0.40

0.40 0.40

0.40 0.40

0.40 0.40

C. International SMS Charges

5.00 5.00 5.00 5.00 5.00 5.00

Non Person to Person SMS

Charges 1.50 1.50 1.50 1.50 1.50 1.50

Premium non - P2P SMS Charges As per the charges of the service used SMS Delivery report/ SMS in Rs. Charges 0.10 0.10 0.10 0.10 0.10 0.10

Roaming call charges with 60 seconds pulse rate (Rs./Min) National Roaming Outgoing calls within the visited LSA Outgoing calls beyond visited LSA Incoming calls 1.40 1.40 1.40 1.40 1.40 1.40

2.40

2.40

2.40

2.40

2.40

2.40

1.75

1.75

1.75

1.75

1.75

1.00

55

Outgoing SMS (max 160 characters)

1.00

0.80

0.80

0.80

0.80

0.80

POSTPAID MOBILE PLANS

Plan Name
Fixed Monthly Charges Pulse rate (For intra/inter circle calls) Free calls /month (Worth Rs.) Plan-325 Plan-490 Plan-525 Plan-550 Plan-725 Plan-999

325 15 100

490 60 0

525 15 300

550 60 0

725 60 0

999 15 700

A. Intra circle (Local) calls (Rs./Min)

(i) To GSM (Own network) (ii) To GSM (Others network) (iii) To Fixed/WLL (Own network) (iv)To Fixed/WLL (Other network)

0.50 0.80 0.50 1.20

0.40 1.00 1.00 1.00

0.40 0.40 0.80 0.80

0.40 1.00 1.00 1.00

0.00 0.40 0.40 0.40

0.60 1.00 0.60 1.00

B. Inter Circle (STD)Calls(Rs./Min) 1.80 1.80 1.00 1.00 1.80 1.80 1.00 1.00 0.40 1.50 1.00 1.60

(i) GSM (Own network) (ii) To GSM (Other network)

(iii) To Fixed /WLL (Own network)

0 to 200 Kms > 200 Kms

1.80 2.40

1.00 1.00

1.80 1.80

1.00 1.00

1.50 1.50

1.00 1.00

56

(iv) To Fixed/WLL (Other network) 1.80 2.40 1.00 1.00 1.80 1.80 1.00 1.00 1.50 1.50 1.60 1.60

0 to 200 Kms > 200 Kms

C. ISD Calls(Rs./Min)** 15 7.20 7.20 9.60 9.60 12.00 60 7.20 7.20 9.60 9.60 12.00 15 7.20 7.20 9.60 9.60 12.00 SMS Charges -40 ---40 ------60 7.20 7.20 9.60 9.60 12.00 60 6.00 7.20 8.00 9.60 10.00 15 7.20 7.20 9.60 9.60 12.00

ISD PULSE RATE (Sec) *Row 1 *Row2 *Row3 *Row4 *Row4

No. of free SMS (Own network) Free SMS worth Rs.

a. Local (within Local Service Area) 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.00 0.40 0.50 0.50

(I ) Own network (ii) Other network

(i) Own network (ii) Other network

b. National (Outside Local Service Area) 0.80 0.80 0.80 0.80 0.80 0.80 0.80
International SMS

0.40 0.40

0.50 0.50

0.80

Charges

5.00

5.00

5.00

5.00

5.00

5.00

57

Charges Charges

1.50

Non Person to Person SMS 1.50 1.50 1.50

Premium non - P2P SMS

1.50

1.50

As per the charges of the service used

SMS Delivery report/ SMS in Rs.

Charges

0.10

0.10

0.10

0.10

0.10

0.10

Roaming call charges with 60 seconds pulse rate (Rs./Min) National Roaming
Outgoing calls within the visited LSA Outgoing calls beyond visited LSA Free Incoming calls /month Incoming calls Outgoing SMS (max 160 characters)

0.10

0.10

0.10

0.10

0.10

0.10

2.40

1.00

2.40

1.00

2.40

2.40

--

--

--

300 minutes

--

--

1.50 0.80

1.00 0.80

1.00 0.80

1.00 0.80

0.65 0.80

1.00 0.80

** ISD Calling Rows

*Row 1 *Row2 *Row3 *Row4 *Row4 USA, CANADA, UK Sri Lanka Europe (Other than UK), Singapore, Thailand, Malaysia, Indonesia, Hongkong Kuwait, Bahrain, UAE, Oman and Qatar Rest of the world

POSTPAID MOBILE PLANS

Plan Name Easy 150 Easy 250 Easy 400 ARP Family Add On Easy 786

58

Activatio n Charges Security Deposit Advance Rental Service Tax Monthly Rental CLIP Charges Monthly Commit ment Outgoing To Idea To Mobile To land Line Outgoing To Idea To Mobile To Land Line Outgoing ROW1* Row 2**

NIL Rs.500 NIL

NIL Rs.500 NIL

NIL Rs.500 NIL

NIL Rs.500 Rs.699 (6 Months) Rs.1199 (12 Months) 12.36% NIL Free NIL

NIL NIL NIL

NIL Rs.500 NIL

12.36% Rs.150 Free Rs.150

12.36% Rs.250 Free Rs.250

12.36% Rs.400 Free Rs.400

12.36% Rs.125 Free Rs.125

12.36% Rs.786 Free Rs.786

Local(UPE & UPW) 75p 60p 25p 75p Rs.1.50 STD Rs.1.3 Rs.1.3 Rs.1.3 ISD Rs.6.4 Rs.9.19 60p 60p Rs. 1.3 Rs. 1.3 Rs. 1.3 Rs.6.4 Rs.9.19 50p Re.1 Re.1 Re.1 Re.1 Rs.7.2 Rs.9.99

30p 50p Re.1 Rs.1.3 Rs. 1.3 Rs. 1.3 Rs.6.4 Rs.9.19 Rs.49.2 Rs.6.99

50p Re.1 Re.1 Rs. 1.3 Rs. 1.3 Rs. 1.3 Rs.6.4 Rs.9.19 Rs.49.20 Rs.6.99

25p 50p Re.1 Re.1 Re.1 Re.1 Rs.7.86 Rs.7.86 Rs.50 Rs.6.99

Others** Rs.49.20 Rs.49.2 Rs.50 * Special Numbers Calls to Rs.6.99 Rs.6.99 Rs.6.99 Voice Portal (456) SMS ( Short Messaging Service) Local Re.1 Re.1 25p

Re.1

Re.1

25p

59

National Internati onal VAS

Rs.1 Rs.5 Rs.3

Rs.2 Rs.5 Rs.3

25p Rs.5 Rs.3

Rs.2 Rs.5 Rs.3

Rs.2 Rs.5 Rs.3

25p Rs.5 Rs.3

POSTPAID MOBILE PLANS

Plan Name
Monthly Rental Bill Plan Charges Membership Charges Clip Total Commitment Free Value

Do More 999
Nil Rs. 25 Rs. 999 Free Nil No Rental & Clip charges for 1 year Rs.1.00 Rs.1.00 Rs.1.00 Rs.2.00 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.00 Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00

Do More 1599
Nil Nil Rs.1599 Rs. 25(Optional) Rs.25 Nil

Local Call Charges

To Tata Mobiles To Tata Fixed To Other Mobiles To Other Fixed To Tata Mobiles To Tata Fixed To Other Mobiles To Other Fixed Rs.1.00 Rs.1.00 Rs.1.00 Rs.2.00 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.00 Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00

STD Call Charges

SMS
Local Tata Phone Other Local National International Other Applications Row 1 Row 2

ISD Call Charges

Rs.6.40 Rs.9.20 Rs.6.40 Rs.9.20

60

ISD Calling Rows

Row 1 Row 2 USA ,Canada, SEA, UK, Europe, Rest of American Continent, Middle East, & Rest of World SAARC, Australia, New Zealand, Gulf Countries & Africa

POSTPAID MOBILE PLANS

Plan Name
Monthly Rental Bill Plan Charges Membership Charges Clip Total Commitment Free Value

Business Gold
Rs.349 Nil Nil Free Rs.349

Business Silver Talk World

Rs.224 Nil Nil Free Rs.224 Rs.299 Nil Nil Free Rs.299 Nil

Roaming Incoming-500 Rs.150 Min (Local/STD/ISD) Rs. 100 (Local/STD/ISD) Rs.0.10 Rs.0.10 Rs.0.50 Rs.0.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.0.50 Rs.0.50 Rs.0.50 Rs.5.00 Rs.2.00 Rs.0.50 Rs.1.00 Rs.0.50 Rs.1.00 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.0.50 Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00

Local Call Charges

To Tata Mobiles To Tata Fixed To Other Mobiles To Other Fixed To Tata Mobiles To Tata Fixed To Other Mobiles To Other Fixed Rs.1 Per 3min Rs.1 Per 3min Rs.1.00 Rs.1.00 Rs.1 Per 3min Rs.1 Per 3min Rs.1.00 Rs.1.00 Rs.1.00 Rs.1.00 Rs.1.00 Rs.4.00 Rs.2.00

STD Call Charges

SMS
Local Tata Phone Other Local National International Other Applications Row 1 Row 2

ISD Call Charges

Rs.6.40 Rs.9.20 Rs.6.40 Rs.9.20 See Separate Table** See Separate Table**

61

ISD Calling Rows (For Plans Business Gold & Business Silver)
Row 1 Row 2 USA ,Canada, SEA, UK, Europe, Rest of American Continent, Middle East, & Rest of World SAARC, Australia, New Zealand, Gulf Countries & Africa

* ISD Calling Rates ( For Plan Talk World ) * Days & Timing Countries
Mon-Fri - 9AMto 9PM Mon-Fri - 9AMto 9PM

Sat & Sun 24 Hours

USA ,Canada

Rs.6.40

Rs.2.00 Rs.4.00 Rs.4.00 Rs.6.40

Rs.2.00 Rs.4.00 Rs.4.00 Rs.6.40

Australia, Rs.6.40 New Zealand SEA Rs.6.40 UK, Europe, Rest of American Continent Gulf Countries & Africa Middle East SAARC Rest of World Rs.6.40

Rs.9.20 Rs.9.20 Rs.9.20 Rs.9.20

Rs.7.00 Rs.7.00 Rs.9.20 Rs.9.20

Rs.7.00 Rs.7.00 Rs.9.20 Rs.9.20

POSTPAID MOBILE PLANS

Plan Name
Monthly Rental Bill Plan

Get More124
Rs.99 ---

Do More012 3
Rs.123 Rs.75

Get More199
Rs.199 --

Get More 399

Rs.399 --

62

Charges Membershi p Charges Clip

---

--

-Rs.50(Optio nal) Rs.249 199 (All Calls) Rs.0.50 Rs.0.50 Rs.1.20 Rs.1.20

-Rs. 25(Optional) Rs.424 425 (Local Calls) Rs.0.50 Rs.0.50 Rs.1.75 Rs.1.75

Total Commitmen t Free Value Nil

Rs. Rs. 25(Optional) 25(Optional ) Rs.124 Rs.198 Nil

Local Call Charges

To Tata Mobiles To Tata Fixed To Other Mobiles To Other Fixed To Tata Mobiles To Tata Fixed To Other Mobiles To Other Fixed Rs.0.50 Rs.1.00 Rs.0.50 Rs.1.00 Free Rs.1.00 Rs.1.00 Rs.2.00

STD Call Charges

Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50 Rs.1.50

SMS
Local Tata Phone Other Local National Internation al Other Application s Row 1 Row 2 Rs.1.00 Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00 Free Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00 Rs.0.50 Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00 Rs.0.50 Rs.1.00 Rs.2.00 Rs.5.00 Rs.2.00

ISD Call Charges

Rs.6.40 Rs.9.20 Rs.6.40 Rs.9.20 Rs.6.40 Rs.9.20 Rs.6.40 Rs.9.20

63

ISD Calling Rows

Row 1 Row 2 USA ,Canada, SEA, UK, Europe, Rest of American Continent, Middle East, & Rest of World SAARC, Australia, New Zealand, Gulf Countries & Africa

POSTPAID MOBILE PLANS

Talk plans Monthly rental Advanced rental Additional fee/month Free local mobile mins Free talk time (voice) local + STD in Rs Free SMS (Local + STD) CLIP Itemized billing International roaming rental (Rs/ month) Usage charges Incoming FR 275 Rs.275 0 0 100 FR 375 Rs.375 0 0 300 Talk Roam 299# Rs.299 0 0 0 Talk Roam 399# Rs.399 0 0 0 AR 699 -Rs.699 ( For 6 month) 0 0 0

25 0 Rs.49 149

50 0 Rs.49 149

0 0 Rs.49 149

0 0 Rs.49 149

0 0 Rs.49 149

Free

Free

Free

Free

Free

Local outgoing / min To Vodafone phones To other mobiles To landlines 0.3 0.5 Rs.1 0.3 0.5 Rs.1 STD / min Vodafone Other phones Rs.1.30 Rs.1.30 Rs.1.30 Rs.1.30 Rs.1 Rs.1 Rs.1(120 sec) Rs.1 Rs.1.30 Rs.1.30 Rs.1 (120 sec) Rs.1 Rs.1 Rs.1(120 sec) Rs.1 Rs.1 Rs.1 Rs.1 Rs.1

ISD / min (all inclusive) Row1 Rs.9.19 Rs.9.19 Rs.9.19 Rs.9.19 Rs.9.19

64

Row2 Row3 Row4 Row5 Talk plans Local Vodafone Local Others National International

Rs.6.4 Rs.40 Rs.100 Rs.500 HR 699 1 1 2 5 3

Rs.6.4 Rs.40 Rs.100 Rs.500 AR 1199 1 1 2 5 3

Rs.6.4 Rs.40 Rs.100 Rs.500 HR 1199 1 1 2 5 3

Rs.6.4 Rs.40 Rs.100 Rs.500 FV Talk 299 1 1 2 5 3

Rs.6.4 Rs.40 Rs.100 Rs.500 Gup-Shup 400 0.3 0.3 2 5 3

SMS ( SHORT MESSAGING SERVICES )

Information services

ISD Calling Rows Row1 Row2 Row3 Gulf, UK (M), Europe (M), SAARC, Africa, Australia (M) & New Zealand (M) US, Canada, UK(F) & Europe(F), Australia(F) & New Zealand (F), South East Asia Norfolk Island, Cook Island, Cuba, Diego Garcia, Guinea Bissau, Nauru, Sakhalin, Saotome & principle, Solomon Island, Tokelau, Tuvalu, Vanuatu Special premium numbers Inmarsat /Iridium

Row4 Row5

POSTPAID MOBILE PLANS

Talk plans Monthly rental Advanced rental Minimum billing amount Additional fee/month Free local mobile mins Free talk time (voice) local + STD in Rs Free SMS (Local + STD) HR 699 --699 ( For 6 month) 0 69 0 0 0 AR 1199 ---1199 (For12Month) 0 0 0 0 0 HR 1199 ---1199 ( For 12month) 0 69 0 0 0 FV Talk 299 299 0 0 0 299 0 0 Gup-Shup 400 400 0 0 0 600 0 0

65

CLIP Itemized billing International roaming rental (Rs/ month) Usage charges Incoming Local Outgoing / min To Vodafone phones To other mobiles To landlines STD / min Vodafone Other phones ISD / min (all inclusive) Row1 Row2 Row3 Row4 Row5 Talk plans Local Vodafone Local Others National International Information services

0 49 149 Free

0 49 149 Free

0 49 149 Free

0 49 149 Free

0 49 149 Free

0.15 0.25 0.5

1 1 1

0.15 0.25 0.5

0.5 0.5 0.5

0.5 0.5 1

Rs.1.30 Rs.1.30

Rs.1.30 Rs.1.30

Rs.1.30 Rs.1.30

Rs.1 Rs.1

Rs.1.30 Rs.1.30

Rs.9.19 Rs.6.4 Rs.40 Rs.100 Rs.500 HR 699 0.5 0.5 2 5 3

Rs.9.19 Rs.6.4 Rs.40 Rs.100 Rs.500 AR 1199 0.5 0.5 1 5 3

Rs.9.19 Rs.6.4 Rs.40 Rs.100 Rs.500 HR 1199 1 1 1 5 3

Rs.9.19 Rs.6.4 Rs.40 Rs.100 Rs.500 FV Talk 299 1 1 2 5 3

Rs.9.19 Rs.6.4 Rs.40 Rs.100 Rs.500 Gup-Shup 400 1 1 2 5 3

SMS ( SHORT MESSAGING SERVICES )

66

ISD Calling Rows Row1 Row2 Row3 Row4 Row5 Gulf, UK (M), Europe (M), SAARC, Africa, Australia (M) & New Zealand (M) US, Canada, UK(F) & Europe(F), Australia(F) & New Zealand (F), South East Asia Norfolk Island, Cook Island, Cuba, Diego Garcia, Guinea Bissau, Nauru, Sakhalin, Saotome & principle, Solomon Island, Tokelau, Tuvalu, Vanuatu Special premium numbers Inmarsat /Iridium

67

Comparison of Postpaid Plans

Low Rate Calling For Local Mixed Usage

Full Value Local Calling Plans

68

Low ISD Call Rate Plans

Low Call Rate Plans for Mixed Calling

69

STD Segment
Recently all the operators have reduced their STD call Rates. The revised call rates are given in the chart given below. Company Old STD Rate Revised STD Rate Airtel Rs.2.4/Min Rs.1.5/Min Vodaphone Rs.2/Min Rs.1.3/Min Idea Rs.2.4/Min Rs.1.3/Min Tata Indicom Rs.2.65/Min Rs.1.5/Min BSNL Rs.2.4/Min Rs.1(Plan 325 & Above) Reliance Rs.2.65/min No Change

70

COMPANY

ONE TIME CHARGES

FOR NEW CUSTOMERS FOR EXISTING CUSTOMERS INCOMING TILL YEAR

Comparison of Lifetime Prepaid Schemes RELIAN AIRTEL VODAPHO IDEA BSNL CE NE Sample Questionnaire
Rs.299 Rs.198 2021 Rs.299 Rs.299 2024 Rs.299 Rs.298 2021 Rs.295 Rs.295 2021 Rs.199 Rs.99 2024

TATA INDICOM Rs. 251 Rs. 251 2021

LOCAL CALL RATES

SAME NETWORK MOBILES SAME NETWORK FIXED OTHER NETWORK MOBILES OTHER NETWORK FIXED

Rs.0.99 Rs.0.99 Rs.0.99 Rs.0.99

Rs.1.0 Rs.1.0 Rs.1.0 Rs.1.0

Rs.1.0 Rs.1.0 Rs.1.0 Rs.1.0

Rs.1.0 Rs.1.0 Rs.1.0 Rs.1.0

Rs.1.0 Rs.1.0 Rs.1.0 Rs.1.0

Rs.1.0 Rs.1.0 Rs.1.0 Rs.1.0

STD CALL RATES

SAME NETWORK MOBILES SAME NETWORK FIXED OTHER NETWORK MOBILES OTHER NETWORK FIXED

Rs.2.65 Rs.2.65 Rs.2.65 Rs.2.65

Rs.1.5 Rs.1.5 Rs.1.5 Rs.1.5

Rs.1.30 Rs.1.30 Rs.1.30 Rs.1.30

Rs.2.65 Rs.2.65 Rs.2.65 Rs.2.65

Rs.2.4 Rs.2.4 Rs.2.4 Rs.2.4

Rs.1.5 Rs.1.5 Rs.1.5 Rs.1.5

SMS CHARGES
LOCAL SAME NETWORK NATIONAL INTERNATIONAL

Rs.1 Rs.2 Rs.5

Rs.1.0 Rs.1.5 Rs.5

Rs.1 Rs.2 Rs.5

Rs.1 Rs.2 Rs.5

Rs.0.5 Rs.0.8 Rs.5

Rs.1 Rs.2 Rs.5

USAGE OF SPECIAL PACKS (APPLICABLE OR NOT )

LOCAL STVs STD CALLING CARDS STD CALLING STVs SMS CARDS

YES YES YES YES

COMMITMENT (IF ANY) FOR

MINIMUM USAGE IN Rs. TIME LIMIT OF USAGE

YES (Except YES Few) YES YES (Except YES Few) YES YES (Except YES Few) YES YES (Except YES Few) THE CONTINUATION OF SCHEME Rs.200 180 DAYS

YES

YES YES YES YES

YES YES YES YES

Rs.200 180 DAYS

71 Rs.200
180 DAYS

Rs.200 180 DAYS

Rs.200 180 DAYS

Rs.200 180 DAYS

I Shivendra Prakash Sinha a summer trainee in Reliance Communications, conducting a survey to measure Market Competitiveness of Reliance Communication Venture Limited in Lucknow Cluster. The information provided by you would be kept confidential and will be used only for academic purpose. The content of questionnaire are fourteen simple objective questions. Each question contains six options the respondents have to choose any of the six options, according to their choice.

Reference: Shah Raaz Ahmad (CIOU Manager) Reliance Communication

DEMOGRAPHIC PROFILE:
Name of the outlet__________________________________________ Name of the retailer_________________________________________ Location of the retailer______________________________________ Contact number____________________________________________

Q1. Which company is best in terms of advertising campaigns in Lucknow region?

72

1. Reliance Communication 3. Idea 4. Vodafone 6. BSNL

2. Airtel 5. Tata Indicom

Q2. Which company gives best offers at the time of new connections? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

Q3. Which one is the best service provider in terms of connectivity in Lucknow and outers of Lucknow? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL Q4. Which company provides the best offers to the customers? 1. Reliance Communication 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

2. Airtel 5. Tata Indicom

Q5. Which company gives the best customer care services to the customers? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

Q6. Which company provides best products and tariff plans to the customers? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL Q7. Which company is the best in providing prepaid services? 1. Reliance Communication 3. Idea 5. Tata Indicom

2. Airtel

73

4. Vodafone 6. BSNL Q8. Which company is the best in providing postpaid services? 1. Reliance Communication 3. Idea 4. Vodafone 6. BSNL

5. Tata Indicom

2. Airtel 5. Tata Indicom

Q9. Which company is the best in providing internet/data card services? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

Q10. Which company provides the best value added services to the customers? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

Q11. Which company is the best in communicating the changes in schemes and new schemes to the retailers? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

Q12. Which company is most profitable from the retailers point of view? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

Q13. Which company has the highest demand from the customers? 1. Reliance Communication 2. Airtel 3. Idea 4. Vodafone 6. BSNL 5. Tata Indicom

74

Q14. Which company gives the fastest response to the requests of customers and retailers? 1. Reliance Communication 2. Airtel 3. Idea 1. Vodafone 6. BSNL 5. Tata Indicom

Thank you

75

Key factors of the research

The fourteen factors on which I have compared the companies are: 1. Advertising Campaigns 2. Offer from the companies to the customers at the time of new connections. 3. Network Connectivity in Lucknow. 4. Offers to the existing customers. 5. Customer care. 6. Products and tariff plans. 7. Prepaid services. 8. Postpaid services. 9. Internet/ data card services.
10. 11.

Value added services (VAS). Communication with retailers for new schemes and changes in schemes. Profitability from the retailers point of view. Demand in the market. for the requests of the customers and retailers.

12. 13.

14. Response,

76

DATA TABULATION, INTERPRETATION & FINDINGS

The over all tabulation of the questionnaire responses is as follows. Reliance Airtel Idea Vodafone TataBSNL Comm. indicom Ad. Campaign 30 54 34 66 6 10 Offer @ new 44 40 40 30 0 46 Connections Connectivity 40 74 10 50 0 26 Offers 70 40 34 20 6 30 Customer care 40 80 10 64 0 6 Products and 74 30 54 16 10 16 tariff Prepaid 70 74 24 26 0 6 Postpaid 84 40 24 36 0 16 Internet data 70 84 4 0 16 26 VAS 44 74 20 26 16 20 Good 64 50 24 46 6 10 Communications with retailers Profitability 64 30 44 20 16 26 Demand 60 54 24 26 6 30 Response 40 70 10 60 0 20 Overall 794 794 356 486 82 288 Total 200 200 200 200 200 200 200 200 200 200 200 200 200 200 2800

1. Advertising campaigns

77

Ad. Campaign 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone T ataindicom BSNL 6 30 34 54 66

10

Ranking: I. II. III. IV. V. VI. Vodafone Airtel Idea Reliance BSNL Tata indicom

Looking at the responses Vodafone is doing very well in advertising campaigns, Reliance stands at fourth position in advertising campaigns, it depicts that the reliance advertising is not as effective as Airtel or Vodafone. Reliance is far behind Vodafone in advertising campaigns, which shows its weakness.

2. Offer from the companies to the customers at the time of new connections.

78

Offer @ new Connections 50 45 40 35 30 25 20 15 10 5 0 46 40 40 30

44

0 Reliance Comm. Airtel Idea Vodafone Tataindicom BSNL

Ranking: I. BSNL II. III. IV. V. Reliance Airtel and Idea Vodafone Tata Indicom

These offers are given by companies to attract the customer of other service providers or new customers of the industry. Surprisingly 23% of the retailers think that BSNL provides best offers with new connections. Reliance is at the second position, though reliance offers are very attractive but the reason is Reliance offers CDMA connection that may be a reason why it stands at the second position.

3. Network Connectivity in Lucknow

79

Connectiv ity 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone 10 0 T ataindicom BSNL 40 26 54

50

Ranking: I. Airtel II. III. IV. V. VI. Vodafone Reliance BSNL Idea Tata indicom

Reliance communication stands third in terms of connectivity. Airtel and Vodafone have better connectivity. Being good in connectivity is essential to survive in telecom sector, Reliance Communication uses CDMA technology which gives better connectivity and better voice clarity comparing to the GSM technology. But still retailer thinks that Reliance network is not as good as Airtel and Vodafone.

80

4. Offers to the existing customers

Offers 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone T ataindicom BSNL

Ranking: I. Reliance II. III. IV. V. VI. Airtel Idea BSNL Vodafone Tata indicom

Reliance stands at the first position in providing offers to the customers. Reliance keeps on launching new attractive offers time to time. In last two months reliance has launched five new offers on coulor mobiles of LG and Classic at the rates. No other company can offer mobile sets at such cheaper rates.

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5. Customer care
Customer care 90 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone Tataindicom BSNL

Ranking: I. Airtel II. III. IV. V. VI. Vodafone Reliance Idea BSNL Tata indicom

Customer care is a very important factor for any company in taking competitive advantage. Retailers think that Reliance is at the third position in customer care. Airtel got 40% of the votes from retailers. which show that retailers are well satisfied with Airtel customer care.

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6. Products and tariff plans

Products and tariff 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone Tataindicom BSNL 30 16 10 16 54 74

Ranking: I. Reliance II. III. IV. V. Idea Airtel BSNL & Vodafone Tata indicom

Reliance offers best plans, cheapest call rates and attractive tariff vouchers. Reliance also provides LG and Classic handsets at unbelievably low cost. And hence it stands at the first. Idea is also offering cheaper call rates and attractive tariffs to the customers.

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7. Prepaid services
Prepaid 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone 0 T ataindicom 6 BSNL 24 26 74

70

Ranking: I. Airtel II. III. IV. V. VI. Reliance Vodafone Idea BSNL Tata indicom

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37% are in the favor of Airtel and 35% are in the favor of Reliance. The reason may be due to the difference in the technology that is CDMA and GSM.

8. Postpaid
postpaid 90 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone 0 Tataindicom BSNL 40 24 16 36 84

Ranking: I. Reliance II. III. IV. V. Vodafone Airtel Idea BSNL

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VI.

Tata indicom

Reliance enjoys no. one position in postpaid services no with no competitor near it; the nearest competitor is Airtel 20%. Which is still far away it shows that reliance has well captured the postpaid market.

9. Internet/data card
Internet data 90 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea 4 0 Vodafone T ataindicom BSNL 16 26 70 84

Ranking: I. Airtel II. III. IV. Reliance BSNL Tata indicom

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V. VI.

Idea Vodafone

In broad band segment Airtel is no. one reason in Airtel broadband is available in every area of Lucknow but the conditions are not same with reliance its broadband is available in some parts of Lucknow. Reliance also provides Net connect facility which is a better service than broadband it is a wire less service which can be used with laptops and desk tops as well. Reliance offers net connect with attractive schemes. Net connect is now getting very popular in the market. The only competitor in this segment of net connect is Tata indicom.

10. Value added services (VAS)

VAS 80 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone Tataindicom BSNL 20 26 16 20 44 74

Ranking: I. Airtel II. Reliance

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III. IV. V.

Vodafone BSNL & Idea Tata indicom

In value added services reliance stands second and Airtel is again no. one in this segment. Both Airtel and Reliance are providing excellent VAS but the target customer of Reliance and Airtel are different.

11.

Communication with retailers for new schemes and changes in schemes

Good Communications with retailers

70 60 50 40 30 20 10 0

64 50

46

24 10

Reliance Comm.

Airtel

Idea

Vodafone

Tataindicom

BSNL

Ranking:

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I. II. III. IV. V. VI.

Reliance Airtel Vodafone Idea BSNL Tata indicom

I asked this question to the retailers to know which company is friendly with the retailers, since retailers play a very important role in increasing the sales of any company, and if a company is not communicating well with retailers about the changes in schemes and about new schemes. The retailer will communicate wrong or old scheme and call rates to customer which may alter the sales of that company. Retailers think that Reliance is the in communicating about changes in schemes and new schemes. This is a good sign for Reliance communication.

12.

Profitability from the retailers point of view

profitability

70 60 50 40 30 20 10 0

64

44 30 20 16

26

Reliance Comm.

Airtel

Idea

Vodafone

T ataindicom

BSNL

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Ranking: I. Reliance II. III. IV. V. VI. Idea Airtel BSNL Vodafone Tata indicom

Asking about which company is more profitable for retailers. The majority of the retailers think its Reliance. The reason behind asking this question was, retailers would promote the sales of that company more which is more profitable for them. Idea is the next more profitable company for retailers.

13.

Demand from the customers

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Demand 70 60 50 40 30 20 10 0 Reliance Comm. Airtel Idea Vodafone Tataindicom BSNL 6 24 26 30

60 54

Ranking: I. Reliance II. III. IV. V. VI. Airtel BSBL Vodafone Idea Tata indicom

The figures depicts that Reliance has highest demand in the market. The next is Airtel.

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14.

Response, for the requests of the customers and retailers

Response

80 70 60 50 40 30 20 10 0 Reliance Comm. 40

70 60

20 10 0 Airtel Idea Vodafone T ataindicom BSNL

Ranking: I. Airtel II. III. IV. V. VI. Vodafone Reliance BSNL Idea Tata indicom

Which company gives quick Responses, for the requests of the customers and retailers. Requests like demand for special mobile no., blocking the no. in case of theft of mobiles. Retailers requests like e-recharges, invalid recharge coupons etc. retailers think Airtel gives quick responses for such request. Reliance stands third in this segment and surprisingly BSNL got 10% of the votes for quick response.
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Reliance com V/s Bharti Airtel

Looking at the market share of the two companies Airtel has captured the largest segment of the market and Reliance is second in terms of market share. My survey is also showing that Airtel is giving very tough competition to reliance in every segment.

The figure shows Reliance lacks in advertising campaigns, connectivity, customer care, Internet services and value added services. In other 9 factors Reliance doing well. Airtel is only snag in Anils ambition of being the no one in Indian telecom market. The reason is Airtels seven year head start over R-com. On most counts the different between the two is fast declining. Both have pan India presence, in all 23 telecom circles; Airtel has a 62 million subscriber base; and R Com has 46 million subscribers. Every month R Com is adding 1.6 million subscribers, as compared to Airtels 2.3 million. What Airtel has
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managed to achieve in 12 years R Com has aggressively managed to achieve somewhat similar level in just about five years of operations.

Total revenues (Rs. In crores) Mobile revenue Subscriber base Average revenue per users Revenue from non voice services Capex Reach Optic fiber Revenue from sms

Reliance communication 19,067.76 15,213.54 46 Rs. 339 n/a $5.3 billion 15000 town and 4 lack villages 165000 km n/a

Bharti Airtel 27,025 21,786 62 Rs. 357 9.4%of total revenue n/a 5000 town and 3.42 lack villages 73,787 km 4.4%of total revenues

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KEY FINDINGS OF THE SURVEY

Most of retailers think that the Reliance Communications Advertisement campaigns are not as effective as other companies. Most of the retailers prefer GSM in comparison of CDMA because GSM gives a huge choice of handsets. Reliance Communication is offering good schemes to attract new customers. Most of the retailers think that Reliance connectivity is not as good Airtel and Vodafone. Most of the retailers agree that Reliance is providing the best offers and tariff plans. According to the most of retailers no. one prepaid service provider is Airtel and Reliance stands second in prepaid services. According to most of the retailers Reliance is no. one post paid service provider. According to the retailers Airtel is no. one internet provider and Reliance stands at second position. In value added services Reliance stands behind Airtel. Most of the retailers think that Reliance has maintained strong relationship with them and communicate about new schemes very quickly. According to most of retailers Reliance is most profitable for them.

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 According to the retailers Reliance has highest demand from customers.

According to the most of the retailers Reliance do not responds quickly to retailers and to the customers request

Airtel is the main competitor for Reliance and doing even better than Reliance in some areas like customer care. Idea is gradually improving its market share and it can be a threat for Reliance. Tata indicom is the weakest player in the Lucknow market. Reliance has positioned itself very well in the post paid market. Reliance is the most profitable company for retailers.

Conclusion
This project on Market competitiveness of Reliance Communications in Lucknow helped to analyze and understand the trends of telecom industry and the market position of Reliance Communications in Lucknow. With the help of the research conducted, I have tried to adjudge competitiveness of Reliance in Comparison with the other players. Telecom industry is growing very fast in India and so in Lucknow. Reliance is a major player of this industry and presently has 46 million subscriber base but still it stands at second position after Airtel which has subscriber base of 62 million subscribers. The competition in telecom market is very high and each and every area of service matters equally. Reliance Communications has strongly positioned itself for accelerating market growth but now it is emphasizing to reach in the un-served market that are rural areas where it will get huge opportunity to flourish its business. Airtel and Vodafone being the strongest competitors, Reliance is required to work on its weaknesses and grab the opportunities beforehand to maintain and improve its market position in the telecom sector. A detailed study of the postpaid and prepaid plans have also been executed which will give an insight as to what is lacking in the plans of Reliance and what could be done to improve them.
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The study reveals the weaknesses and strengths of Reliance communication. Reliance needed to improve its Customer care, network connectivity and offers to new connections. The study based on the several months of data, clearly brings out the need for ensuring effective interconnection between various operators in view of the rapid growth in the mobile customer base. The study further reveals, that to be able to cope up with this growing rate, without congestion in the network, there is an imperative need to drastically curtail the time needed for providing the interconnection or for meeting the augmentation requests.

Recommendations
PRODUCT LINE AND ATTRIBUTES
1. Company should monitor and revive its product related features. 2. Company should adapt an innovative approach and always be ahead of its competitors. 3. Always look for latest technology, equipped with enhanced set of facilities 4. Regularly modify or replace the product in order to make a niche in the target segment.

TARIFF PLANS
1. Company should make tariff plans simpler. TRAI has also its keen concern on the complexity of tariff plans which rather helping the retailers and customers they confuse them.

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2. Company should categorize the tariff plans into three categories. Each category for an individual set of customers on the basis of there usage pattern. This will help them to identify the best suited tariff plan for his/her requirement. Following categories is suggested: a) Low budget users (L) b) Medium budget users (M) c) High budget users (H)

Market expansion
1. Company should try to retain the present retailer base and look forward to unexplored markets. 2. Company should focus on those retailers, which are not giving huge business but have potential to do so. Reliance must take care of its advertising complains in Lucknow cluster. The Customer Care services needed to be improved, as most of the retailers are not satisfied with it. Reliance must take care of the connectivity problems in the network. The Net connect service of Reliance still need better promotion activities as reliance still lacks behind in internet services. Value Added Services should be advertised keeping target customer in mind. And improvement in VAS is also required. Reliance must take care of requests of retailers and customer and should give quick response to the requests. Reliance must launch GSM service in the market to further increase its market share. Because CDMA service limits the Choice of handsets.

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 Reliance must improve the quality of Classic mobiles as there are so many complain in the performance of Classic mobile sets. Reliance must make available its broadband services in all areas of Lucknow as it has a high demand from the customers. Reliance must take care of stock of the products which come under schemes for few days. Because generally such products run out of stock during the schemes period.

Bibliography
Kotler. Phillip, Keller. Kevin, Marketing management, Prentice hall India, 12th edition, 2006, (102-103) Kevin.j.clancy, Robert .s. shulmen, Marketing myths that are killing business, McGraw hill (New York), 4th edition, 1994, (213215)

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Chrsto. f. lovelock , Jachen wirtz, Service marketing, Pearson education, 5th edition, 2004, (231-241) Chrsto. f. lovelock , Jachen wirtz, Service marketing, Pearson education, 5th edition, 2004, (231-241) Saxena rajan, Marketing management, Tata McGraw hill, 2nd edition, 2004, (55-67) Levin.m.david , Bearson.l.mack, Business statistics, Pearson education, 2nd edition, 2001, (503-509)

REFERENCES
COMPANY OVERVIEW http://www.rimweb.in/forums/indexphp?showtopic=1896&mode http://www.rcovl.com/rcovlportal/business_profile.html http:www.rcovl.com/rcovlportal/home.jsp INDUSTRY OVERVIEW www.trai.gov.in/trai/upload/tarifforders/54/torder21maro6.pdf
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www.coai.co.in www.auspi.co.in COMPITITIVE ANALYSIS http.//www.vodafone.in/bottom/aboutus.asp http.//www.vodafone.in/postpaid/talk_plans_upe.asp http://www.airtelworld.com/about.jsp http://www.tataindicom.com/aboutus.asp Research Methodology: C.R.Kothari, Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch 4 Ps Business and marketing

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