Sip Report

KARNATAK UNIVERSITY, DHARWAD

KOUSALI INSTITUTE OF MANAGEMENT STUDIES REPORT ON

“How to Increase the Sales of the Reliance GSM Post paid service”. STUDY CONDUCTED AT

Mysore A Project report Submitted to Karnatak University In partial fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY

Prashanth S. Anagoudar MBA08001032

UNDER THE GUIDANCE OF External Guide

INTERNAL GUIDE

Mr.Raghavendra Raikar Snr. Manager, Retail Business Reliance Communications Mysore

Prof. Shivappa Faculty in Management

2008-09

KARNATAK UNIVERSITY, DHARWAD KOUSALI INSTITUTE OF MANAGEMENT STUDIES

CERTIFICATE This is to certify that Mr. Prashanth S Anagoudar student of 2nd semester has completed his Summer Inplant Project entitled Study on “How to Increase the Sales of Reliance GSM Post paid” at Reliance Communications Mysore. In partial fulfillment of MBA degree as prescribed by Karnatak University, Dharwad, during the academic year 2008-09.

Exam Seat Number: MBA08001032

Internal Guide

Dean

&Director (Prof.SHIVAPPA) (Dr.A.H.CHACHADI)

Examiners

1.

2.

DECLARATION

I Prashanth S Anagoudar intern student of Kousali Institute of Management Studies, Karnatak University Dharwad. hereby declare that this project report titled “How to Increase the Sales of Reliance GSM post paid service”

undertaken at Reliance Communications Mysore is a record of an

original and independent work carried out by me under the guidance of Prof. Shivappa I further declare that this project has not formed the basis for the award of any other degree /diploma of any other university /institution.

Date: 15.08.2009

Prashanth S

Anagoudar Place: Mysore

MBA08001032

ACKNOWLEDGEMENT

I would like to express my sincere thanks to all those instrumental in this project Work. First of all, I would like to thank Prof. Dr. A. H. Chachadi Director of Kousali Institute of Management Studies Dharwad for giving me this opportunity to do this project and learn from it. I am thankful to Reliance Communications Ltd for giving me helpful information to complete this project (Research). I express my sincere thanks to my external guide Mr. Raghavendra Raikar Senior Manager of Retail Business RCom, my interal guide Shri Shivappa who helped me in every step of the project. I also express my heartfull thanks to our placement officer Mrs. Kamaksha Kongovi who allotted me to Reliance Communication. I extend my regards to Mr. Ashish Reliance store owner who gave information regarding the Reliance Communication products and Mr. Darshan Relinace Sales executive who helped me in Data collection. Finally I thank all my family members and friends who gave me moral support and who helped directly or indirectly for completing this project.

Date: Place: Mysore Anagoudar

Prashanth

S

CONTENTS 1

Executive Summary

1-3

Research methodology

4-6

. 2 . 3

Introduction

7-21

. 4

Company profile

22-39

. 5

Data

Analysis

.

interpretation

6

Findings

and

40-45

46-47

. 7

Suggestions

and

48

Recommendations 8

Conclusion

49

Bibliography

50

. 9 . 1

Annexure

51-52

0 .

Executive Summary Indian telecom is more than 165 years old, beginning with the commissioning of the first telegraph line between Kolkata and Diamond Harbour in 1839. In 1948, India had 0.1 million telephone connections with a telephone density of about 0.02 telephones per hundred population. As of 2009, there are 403.6 million telephone (including cellular mobile) connections in the country with a telephone density of 22.86 telephones per hundred population. Out of total 403.6 million telephone connections, 225.13 million (nearly 82 percent) connections pertained to wireless and mobile phones. Indian telecom continued to grow unmindful of any global economic meltdown or financial crisis. The mobile sector, in fact, broke all its previous records and added a robust 114 million cellular subscribers between January and December 2008. Leading into the New Year the streak continued, driven by new forces such as Reliance and Tata

as the duo crossed over from CDMA to GSM, thus adding additional streams of new subscribers. Leading GSM operators Bharti Airtel and Vodafone Essar have added 2.8 million and 2.7 million subscribers in April, continuing their respective growth momentum. The second- largest mobile operator Reliance Communications added over 2-million subscribers last month, according to data released by telecom regulator Trai GSM operator Aircel added about 1.1 million new subscribers in April taking its total subscriber base to 19.5 million. Tata Teleservices, a CDMA operator, added about 0.6 million new users in the given month taking its subscriber base to 35.7 million. Idea Cellular and Spice Communications together added a notch over 1-million subscribers in April. State-owned telco MTNL added 47,045 new subscribers in April. RCOM, the country’s largest telecom operator on CDMA technology platform, had launched GSM-based services in January with schemes providing free talk time up to Rs 900 and this resulted in its subscriber numbers surging between January-March. The free scheme was taken away by March-end, which resulted in subscriber additions falling in April. RCOM had outperformed the industry in these three months, it added 5-million new users in January and over 3-million new subscribers in February and March. In comparison, the largest mobile operator, Bharti, added 2.7 million new users each in January and February 2009 and 2.8 million in March. RCOM now has a mobile subscriber base of 74.8 million and Vodafone Essar's total subscriber base stands at 71.5 million, while Bharti Airtel leads with 96.7 million total subscribers. Vodafone Essar also saw a drop of about 0.07 million users in its monthly additions in April and the telco added just over 2.7-million subscribers as against 2.84 million in March. The total wireless subscriber base now stands at 403.66 million, while the total telecom base, which includes that of landline, is 441.47 million, TRAI added. But, the number of new mobile connections added in April saw a 23% drop compared with 15.64 million new additions in the previous month. customers for whom mobile phone is a lifeline to business or lifeline to family members or those who want to talk more with their family members need better network coverage, voice clarity, lowest local call rates for the monthly rental for which they are paying and lower STD call rates for businessmen who have their business with out of state customers. The Indian connectivity scene has witnessed a dramatic change over the past

couple of years. The scenario changed when big private players like Reliance, Tata and Bharti entered the Indian telecom sector. Now these majors are coming up with schemes to attract more customers. Apart from prepaid they are offering better tariffs through post paid schemes they are coming up with unlimited plans and extra features based on the customer needs. There are many other cellular service providers apart from Reliance, Airtel, BSNL and Vodafone like Idea, Aircel and Tata Indicom

In this regard, I have collected both primary data and secondary data. Primary data through the questionnaire and interview with post paid using customers of Airtel, BSNL, Vodafone and Idea. Secondary data is collected through the various websites and visiting Retail stores of the leading cellular service providers. The project title is “How to increase the Sales of Reliance GSM Post Paid Service” completed at Reliance Communications Ltd Mysore. The project is carried out to determine the factors that influence the respondents to use a particular Cellular Post Paid Service. The project was to analyze the satisfaction level they get by using the existing service and also to check out what do respondents feel about this service and to collect the feedback about Reliance GSM service. Sample size: The sample size for the survey was 180. These questionnaires Were filled in by customers using post paid service of Airtel, BSNL, Vodafone and Idea. Most of the customers prefer better network coverage, voice clarity and lower call rates and also want to have free minutes. Customers who are having business are ready to pay monthly rental with highest amount for which they want to have free minutes to local calls and STD calls.

Objectives of Research •

To study the factors that influence the respondents to go for a particular cellular post paid service.

•

To understand the reasons whether they are interested in Reliance GSM post paid service or not.

•

To eventually know about the customer’s way of analyzing the post paid service providers.

•

To get awareness about Reliance GSM service to the customers.

Research Methodology Descriptive Research The research undertaken is mainly Descriptive Research as the study is to know the buying behaviour of customers for the post paid service that are prevailing in the market and their opinion towards Reliance GSM cellular service.

Sampling Process Population Element: The research was conducted on the people who are currently using the post paid connection of BSNL, Airtel, Vodafone and Idea

Sample size:

The total sample size consists of 180 customers.

Sampling Method:Non Probability: The customers Were randomly selected according to convenience and the data is collected from them by standing near the particular retail stores.

Data Collection: For the research purpose the data is collected in the form of Primary data and Secondary data.  Primary data is collected in the form of Structured Questionnaire.  Secondary data is collected from various Boucher’s, leaflets, pamphlets and Websites.

Primary Data:Primary data is collected through direct interviews with the customers using post paid service of various cellular providers except Reliance Communication in Mysore city. The data is collected on the basis of the requirement of the research and asking customers to fill the questionnaire which is prepared according to the objectives of the research.

Secondary data:The secondary data is collected from various Business, Magazines, and news papers and even from different websites related to Mobile services. Some of the websites referred are as follows www.google.com www.rcom.com www.airtel.in www.vodafone.in

Major Limitations:-

 Many customers didn’t responded well as the survey is conducted by standing near retail stores during their bill payment, so it was difficult to collect the required data.  There might be some bias in the data collected due to the huge population.  Awareness about the brands in Reliance GSM was low.  Most of the customers are do not know the difference between CDMA and

GSM cellular service.

Major findings: There are large number of post paid users exist in Mysore, Reliance has recently launched its GSM service so to increase the sales of the Reliance GSM post paid service the opinion of the post paid users has been collected by survey, there some of the findings are customers want to have post paid of cellular service which is having total network coverage, freedom in handset selection here still they are not know the difference between the CDMA and GSM service, the customers want to have post paid which gives more free minutes of talk time for the local calls and SMS to local numbers apart from that I found that some of the customers are not aware of the tariff plan which they are using at the present and what is the call rate and monthly rental of that post paid simply they are using that service and some complained that there are some hidden charges even when they don’t call they are being charged without

providing any service. Some customers told that they will not get network while they are traveling and they are not happy with this.

Introduction Major Players There are three types of players in telecom services: • -State owned companies (BSNL and MTNL) • -Private Indian owned companies (Reliance communications, Tata Teleservices,) • -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL

On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now India’s leading Telecommunications Company and the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is toprovide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base

BHARTI Established in 1985, Bharti has been a pioneering force in the telecom sector with any firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti TeleVentures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellitebased services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. The group has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2004. In mobile, Bharti’s footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities the company believes are available in the Indian telecommunications

market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services”. MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India’s key metros – Delhi, the political capital, and Mumbai, the business capital. In the past 17 years, the company has taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating companies. The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stake in the company. In the year 2003-04, the company's focus would be not only consolidating the gains but also to focus on new areas of enterprise such as joint ventures for projects outside India, entering into national long distance operation, widening the cellular and CDMA-based WLL customer base, setting up internet and allied services on an all India basis. MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market for fixed wireline phones is stagnating, MTNL faces intense competition from the private players—Bharti, Hutchison and Idea Cellular, Reliance Communications—in mobile services. MTNL recorded sales of Rs.60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the previous year’s annual turnover of Rs.63.92 billion.

RELIANCE COMMUNICATIONS Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Communications offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Communications initiatives was launched on December 28, 2002. This marked the beginning of Reliance's

vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Communications plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was permitted to provide only “limited mobility” services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market.

TATA TELESERVICES Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as Well. The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new licenses, coupled with the six circles in which it already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Communications. The company hopes to start off services in these 11 new circles by August 2004. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.

VSNL

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services and has a dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-ME-RELIANCE COMMUNICATIONS -2 and SEA-ME-RELIANCE COMMUNICATIONS -3. The company's ADRs are listed on the New York Stock Exchange and its shares are listed on major Stock Exchanges in India. The Indian Government owns approximately 26 per cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the public. The company provides international and Internet services as well as a host of value-added services. Its revenues have declined from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic long distance services and is launching broadband services. For this, the company is investing in Tata Teleservices and is likely to acquire Tata Broadband.

VODAFONE Hutch’s presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995. Between 2000 and March 2004, Hutch acquired further operator equity interests or operating licences. With the completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in 16 of the 23 defined license areas across the country. Hutch India has benefited from rapid and profitable growth in recent years. It had over 17.5 million customers by the end of June 2006 and now it is having 22.16 million customer base.

IDEA

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in Reliance Communications stern India, and has received additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group . The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also. The fast track growth of the Indian telecom industry has made it a key contributor to India’s progress. India adopted a phased approach for reforming the telecom sector right from the beginning. Privatization was gradually introduced, first in value-added services, followed by cellular and basic services. An independent regulatory body, Telecom Regulatory Authority of India (TRAI), was established to deal with competition in a balanced manner. This gradual and thoughtful reform process in India has favoured industry growth. Today, there are more than 403.66 million telecom subscribers in India. Every month, 6-7 million new subscribers are added. Upcoming services such as 3G and WiMax will help to further augment the growth rate. Furthermore, the Indian economy is slated to sustain its 7-9 per cent growth rate in the near future. This is supported by the political stability that the country is experiencing currently. India’s demographic outlook makes it one of the largest markets in the world. A conducive business environment is also created by a favorable regulatory regime. There exists enormous business potential for telecom companies on account of the country’s low teledensity, which is close to 19 per cent presently. The Indian telecom industry is growing at the fastest pace in the world and India is projected to be the second largest telecom market globally by 2010.

The Indian telecom market generated revenues of approximately US$ 20 billion in 200607. The market witnessed a growth rate of 33 per cent over the last year and recorded a CAGR of 22 per cent for the period 2002-03 to 2006-07. This growth has resulted in doubling the revenues of the telecom segment in the past three years. Further, it is expected that the industry will generate revenues worth US$ 43 billion by 2009-10. Basic services encompass fixed wire line and Wireless in Local Loop (WLL-fixed) services. BSNL and MTNL are the two largest operators in this segment. MTNL is present in Delhi and Mumbai, whereas BSNL covers the rest of the country. Though private players, such as Bharti and Reliance, have registered notable growth, the Government-owned BSNL dominates the segment in terms of subscriber base

History of Indian Telecommunications Year 1851

First operational land lines were laid by the government near Calcutta (seat of British power)

1881

Telephone service introduced in India

1883

Merger with the postal system

1923

Formation of Indian Radio Telegraph Company (IRT)

1932

Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC)

1947

Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications

1985

Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system)

1986

Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

1997

Telecom Regulatory Authority of India created.

1999

Cellular Services are launched in India. New National Telecom Policy is adopted.

2000

DoT becomes a corporation, BSNL

MISSION, AIMS AND OBJECTIVES Preamble The Telecom Regulatory Authority of India (TRAI) has always endeavored to encourage greater competition in the telecom sector together with better quality and affordable prices in order to meet the objectives of New Telecom Policy, 1999. Vide a Notification dated 9th January, 2004 of the Government; Broadcasting and Cable Services also have been brought within the definition of ‘telecommunication service’ in terms of section 2(k) of the Telecom Regulatory Authority of India Act, 1997 as amended by the TRAI (Amendment) Act, 2000. A number of policy initiatives Were taken in 2007-2008 to transform the telecom sector including the broadcasting and cable services to extend the scope, availability and reach of these services in India. Mission of TRAI TRAI’s mission is to create and nurture conditions for the growth of telecommunications including broadcasting and cable services in the country in a manner and at a pace which will enable India to play a leading role in the emerging global information society. Aims and Objectives of TRAI The goals and objectives of TRAI are focused towards providing a regulatory regime that facilitates achievement of the objectives of the New Telecom Policy (NTP) 1999. As shown by the various initiatives mentioned later in this Report, the goals and objectives of TRAI are as follows:  Increasing tele- density and access to telecommunications in the country at affordable prices,  Making available telecommunication services which in terms of range, price and quality are comparable to the best in the world, 

Providing a fair and transparent policy environment which promotes a level playing field and facilitates fair competition,

 Establishing an interconnection regime that allows fair, transparent, prompt and equitable interconnection,

 Re-balancing tariffs so that the objectives of affordability and operator viability are met in a consistent manner,  Protecting the interest of consumers and addressing general consumer concerns relating to availability, pricing and quality of service and other matters,  Monitoring the quality of service provided by the various operators,  Providing a mechanism for funding of net cost areas/ public telephones so that Universal Service Obligations are discharged by telecom operators for spread of telecom facilities in remote and rural areas,  Preparing the grounds for smooth transition to an era of convergence of services and technologies, 

Promoting the growth of coverage of radio in India through commercial and noncommercial channels,

 Increasing consumer choice in reception of TV channels and choosing the operator who would provide television and other related services.

A decade of journey towards excellence in telecommunications o India became the second largest wireless network in the world, overtaking the USA and second only to China, with addition of about 8 million subscribers every month in the recent times. o Subscriber base reached 300.49 million as on 31st March 2008 as compared to 14.88 million for the same period in 1997. o Tele density of 26.22 as on 31st March 2008 as compared to 2.30 for the same period in 1998 – much ahead of the teledensity target set under NTP, 1999 of 15 by the year 2010. o Rural teledensity at the end of March 2008 was 9.20 as compared to 0.40 for the same period in 1998 – which too is much ahead of the NTP, 1999 target of 4 by the year 2010. o Decline in Tariffs:



Local call tariff for mobile @ Rs. 15.00 is now less than Re. 1.00



One minute STD call between Delhi and Mumbai at the rate of Rs.37.00 now cost Re. 1.00 i.e. at the rate of local call



ISD call to American continent @ Rs. 75.00 now costs less than Rs. 7.00

o Subscriber base of internet reached 11.09 million on 31st March 2008 as compared to 0.09 million in 1997 o Putting in place Interconnection and Cost Based Interconnection Usage Charges regime. o Introduction, continuation and phasing out of Access Deficit Charges regime o Introduction of Calling Party Pay regime o Introduction of Mobile Termination Charges, which is lowest in the world o Putting in place Tariff Order regime with the issue of Telecom Tariff Order 1999 and shift to a regime of tariff de-regulation in gradual manner. o Important Recommendations on USO, Spectrum issues, Broadband, Internet Telephony, Growth of Telecom Sector in Rural areas facilitating the Government to formulate policies on these issues. o Putting in place a regulatory framework in the Broadcasting & Cable Sector after the same was brought within the purview of TRAI in January 2004 o Successful roll out of Conditional Access System (CAS) in the metro city of Delhi, Mumbai, Chennai and Kolkata o Introduction of Tariff and Interconnection regime for the Broadcasting & Cable Sector. o Tariff ceiling for cable subscribers in Non-CAS areas o Ensuring orderly growth of the sector with a Consumer Centric approach o Engaging consumer Advocacy Groups (CAGs) & NGOs in regulation of the telecom sector and regular interaction o Establishment of three tier consumer grievances redressal mechanism o Establishment of Telecommunication Consumers Education and Protection Fund o Putting in place a mechanism for restricting unsolicited commercial communications

Indian telecom subscriber base year

No in million

2002-03

53

2003-04

76

2004-05

98.4

2005-06

140.3

2006-07

206

2007-08

225

2008-09

403.6

T e le c o m s u b s c rib e r b a s e o f In d ia 450 400 350 300 250 200 150 100 50 0

No in m illio n

2002- 2003-2004- 2005-2006- 2007-200803 04 05 06 07 08 09 ye a r

Major GSM service providers of Indian Telecom sector and their market share Market share of GSM service providers GSM service provider

market share in %

Bharti

30.83

BSNL

22.77

Vodafone

21.95

Idea

11.63

Aircel

4.57

Reliance

2.81

MTNL

2.28

Spice

2.27

BPL

0.89

M ark et s ha re of G S M s ervic e providers

m a rk et s hare in %

1% 2% B harti

2% 5% 3%

30%

12%

B S NL H utc h Idea A irc el R elian c e M TN L

22%

S pic e 23%

BPL

Market share of CDMA service providers CDMA service provider

market share in %

Reliance

55.15

Tata Tele service

35.89

BSNL

7.95

MTNL

0.45

HFCL

0.34

Shyam Tele link

0.22

market share in % 0.22 0.34 0.45 Reliance 55.15%

7.95

Tata Teleservice 35.89% BSNL 7.95% 35.89

55.15

MTNL 0.45% HFCL 0.34% Shyam Telilink 0.22%

Mobile Services Mobile services have led the spectacular growth of the Indian telecom industry. Currently, 12 players are active in this segment. The total number of wireless subscribers escalated to 185.13 million by the end of June 2007, with the monthly addition of more than 6 million wireless subscribers. GSM continues to dominate this segment by a large margin as compared to CDMA, which has a share of only 23 per cent.

p e r ce ntage of GSM an d C DM A

27% GSM CDMA 73%

India is one of the few countries in the world to have more GSM subscribers than fixed line subscribers. All the operators predominantly provide voice services, value added and data services such as SMS, mobile internet service, email, chatting, conferencing, GPRS service, etc. Services such as video conferencing and Closed User Group (CUG) facility are also gaining momentum. Reliance is the market leader in the CDMA service but Indian Telecom industry is lead by the GSM service which is having 73% market share compared to 23% that of CDMA, because of this Reliance decided to enter into GSM service. At present the GSM mobile service market is lead by Airtel and BSNL. Some of the competitors of Reliance GSM service are Airtel, BSNL, Hutch and Idea because of stiff competition in the market Reliance is offering post paid connection at lowest monthly rental of Rs-199 and call rates at Rs-0.3 per local and Rs-0.6 per STD. I was been assigned to collect the feedback for this post paid connection and whether they want to shift to Reliance GSM or not.

BRIEF STUDY OF THE ORGANIZATION

Over view of Reliance Communications The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance Communications (formerly Reliance Communications) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire Communications (information and communication) value chain, including infrastructure and services — for enterprises as Well as individuals, applications, and consulting. Today, Reliance Communications is revolutionising the way India communicates and networks, truly

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

Iii

Mile stones of Reliance Communications In the year 1999

The Reality, November 15 Reliance Communications begins Project Planning The Dream, 1999 "Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians" - Dhirubhai Ambani In the year 2008 January 12 Wereceives Start-up GSM Spectrum

Chairman’s profile Reliance Communications Limited founded by the late Shri. Dhirubhai H Ambani (19322002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. It is India's foremost truly integrated telecommunications service provider. With a customer base of over 36 million including close to one million individual overseas retail customers, Reliance Communications ranks among the top ten Asian Telecom companies. Its corporate clientele includes 600 Indian, 250 multinational corporations and over 200 global carriers and owns and operates the world's largest next generation, IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, amely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources. He is also the president of the Dhirubhai Ambani Institute of Information and Communications Technology, Gandhinagar An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is redited with pioneering several financial innovations in the Indian capital markets. He spearheaded the country’s first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Under his chairmanship, the constituent companies of the Reliance ADA group have raised nearly US$ 3 billion from global financial markets in a period of less than 15 months. Shri Ambani has been associated with a number of prestigious academic institutions in India and abroad. He is currently a member of:

· Wharton Board of Overseers, the Wharton School, USA · Board of Governors, Indian Institute of Management (IIM), Ahmedabad · Board of Governors, Indian Institute of Technology (IIT), Kanpur · Executive Board, Indian School of Business (ISB), Hyderabad Select Awards and Achievements · Voted ‘the Businessman of the Year’ in a poll conducted by The Times of India – TNS, December 2006 · Voted the ‘Best role model’ among business leaders in the biannual Mood of the Nation poll conducted by India Today magazine, August 2006 · Conferred ‘the CEO of the Year 2004’ in the Platts Global Energy Awards · Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management Association, October 2002 · Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001 Selected by Asia week magazine for its list of 'Leaders of the Millennium in Business and Finance' and was introduced as the only 'new hero' in Business and Finance from India, June 1999.

ORGANIZATIONAL SET UP

Reliance Communication Limited CHAIRMAN

PRESIDENT PRESONAL BUSINESS

PRESIDENT ENTERPRISES BUSINESS

PRESIDENT HOME BUSINESS

SENIOR V.P

V.P

GM

DGM

AGM

SENIOR MANAGER

MANAGER

DEPUTY MANAGER ASST. MANAGER

MANAGEMENT TRAINEE

Reliance Anil Dhirubhai Ambani Group Companies

Code of Conduct (adopted by the Company) Reliance – Anil Dhirubhai Ambani Group of Companies continually reviews corporate governance best practices to ensure that they reflect global developments. It takes feedback into account, in its periodic reviews of the guidelines to ensure their continuing relevance, effectiveness and responsiveness to the needs of local and international investors and other stakeholders. The Code of Conduct(s) and Business Policies adopted by the Reliance – Anil Dhirubhai Ambani Group (ADAG) Companies are given here. 1. Values and Commitments 2. Code of Ethics 3. Business Policies 4. Ethics Management 5. Prevention of Sexual Harassment 6. Policy on Insider Trading

1. Values and Commitments Introduction Every significant management decision has ethical value dimensions. Managing ethics is particularly relevant for Reliance – ADAG Companies today because it is critical to understand and manage highly diverse values in the workplace. Attention to business ethics is critical during times of fundamental change – times much like those faced now by businesses like Reliance Communications s. In times of such fundamental change, values that Were previously taken for granted are now strongly questioned. Many of these values are no longer followed. Consequently, there is no clear compass to guide us through complex dilemmas about what is right or wrong.

To that end, Reliance – ADAG Companies’ Values and Commitments are presented here. These should be used to guide Reliance Communications actions in business conduct. Ethics and Values at Reliance – ADAG Companies Background At Reliance – ADAG Companies, the issue of ethics is simple: it is a simple process that involves defining what is right or wrong, and then doing the right thing. Ethics Management at Reliance – ADAG Companies is about values and associated behaviors. It is a process of defining values and ensuring that corporate and individual employee behaviors epitomize those values. At Reliance – ADAG Companies believe that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring. Strong commitments to these high values have long been building principles for Reliance – ADAG Companies. These values are not to be lost sight of by anyone at Reliance – ADAG Companies under any circumstances irrespective of the goals that are intended to be achieved. To us, means are as important as the ends. Though the deeper significance of these values for us cannot be captured in words, a brief description of what Wereally feel about these virtues is outlined below: Honesty Reliance Communications are committed to be truthful in all Reliance Communications actions. Reliance Communications strive to be honest and forthright with one another and with all Reliance Communications stakeholders. Integrity Reliance – ADAG Companies insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships with all those with it does business. There exists a clear vision and picture of integrity throughout Reliance – ADAG Companies. We reward and promotion systems are aligned with this vision of integrity. Upholding the Reliance – ADAG Companies reputation is paramount. Reliance

Communications are judged by how Reliance Communications act. Reliance Communications

reputation will be upheld if Reliance Communications

integrity in all Reliance Communications

act with

dealings, even at a personal level, and

Reliance Communications always do what Reliance Communications think is right a t all times. Reliance Communications say what Reliance Communications mean, and deliver what Reliance Communications promise and promise to stand for what is right. Reliance Communications always honor all Reliance Communications commitments. Reliance Communications stand for loyalty and trustworthiness. Respect Reliance Communications are committed to treat everyone fairly and with respect and dignity. Reliance Communications appreciate and value the skills, strengths, and perspectives of Reliance Communications diverse workforce. Werequest the uniqueness of each employee. Reliance Communications believe that each employee makes a meaningful contribution in Reliance – ADAG Companies’ success. Fairness Reliance – ADAG Companies is firmly committed to fairness and objectivity in all its action and interactions. Justice and fairness imbibed in the Organization’s fabric ensure procedural fairness, impartiality and consistency in Reliance – ADAG Companies operations. Purposefulness Reliance – ADAG Companies sees its activities in terms of higher purposes and ideals. This purposefulness is a way of operating which ties Reliance – ADAG Companies to its environment at a mutually beneficial dimension. Trust Reliance Communications endeavor to foster a participatory work environment where trust and confidence bet Reliance Communications en team members is spontaneous. Reliance Communications always encourage teamwork with open, candid and speedy communication. Responsibility

Reliance Communications employees are expected to demonstrate highest levels of personal responsibility and continually affirm that they are responsible to themselves for the pursuit of excellence. At Reliance – ADAG Companies accountability is individual rather than collective. Reliance Communications employees are committed and enthusiastic to assume responsibility for actions for the organization. Citizenship They are a fiercely patriotic company, fully committed to achieving and participating in every conceivable way in the progress and integrity of India. Reliance Communications is committed to obey all the laws of India and the countries in which Reliance Communications do business and to do Reliance Communications part to make the communities in which Reliance Communications live better. Caring Compassion, sharing and kindness are values and try to inculcate in Reliance Communications decision making process to achieve fairness. It is imperative that each one of us gets intensely driven from the heart towards upholding of these values in Reliance Communications day to day conduct. This initiative will further stimulate the creation and maintenance of a highly ethical work environment. Commitments Background A firm belief that every Reliance – ADAG Companies team member holds is that the other person’s interests count as much as his / her own. It is not surprising that Reliance – ADAG Companies has always been able to strike a mutually profitable equilibrium with ease while interacting with diverse internal and external stakeholder groups. Reliance – ADAG Companies strives to make the good of these diverse stakeholder groups as part of its good. Reliance – ADAG Companies recognizes that maintaining the trust and confidence of all its stakeholders is crucial to its continued growth and success. Reliance Communications are aware that a company must be an integral part of the society in which it operates: that it must fulfill a number of different expectations – financial, social and environmental: and that there is no substitute to being right. Employees seek success by being sensitive and alive to the interests and concerns of

others in the society, and by working constructively with them to find solutions of mutual benefit. In pursuit of these values outlines above, Reliance Communications are committed to the ethical treatment of all Reliance Communications stakeholders. Commitment to Stakeholders In all Werelationships Reliance Communications demonstrate Reliance Communications steadfast commitment to all Reliance Communications stakeholders: Reliance Communications employees Reliance – ADAG Companies recognize that its commercial success depends on the full commitment of all employees. Reliance Communications are committed to respect the human rights of Reliance Communications employees. Reliance Communications strive to treat Reliance Communications employees with honesty, just management, due dignity and fairness. Reliance Communications are committed to provide Reliance Communications employees with a good, safe and healthy environment and competitive terms and conditions of service. Reliance – ADAG Companies promotes the development and best use of human talent. It encourages the involvement of employees in the planning, direction and fair appraisal of their work. The employees are also encouraged to participate in the application of these ethics and values within the company. Reliance Communications customers Reliance Communications are committed to produce reliable, world-class quality products and services, delivered on time, at a fair price. Reliance – ADAG Companies strives to win and maintain customers by developing and providing products and services which offer value in terms of price, quality, safety and environmental impact, which are supported by the requisite technological, environmental and commercial expertise.

Reliance Communications environment Reliance – ADAG Companies are committed to acting as a concerned and responsible community participant reflecting all aspects of good corporate citizenship. Reliance – ADAG Companies are committed to achieving the global standards of health, safety and

environment. Reliance – ADAG Companies works with its community by volunteering and supporting education, medical Reliance Communications lfare and other worthy causes that lead to sustainable development. Reliance Communications shareholders Reliance Communications are committed to pursuing sound growth and earnings objectives and to exercising prudence in the use of Reliance Communications assets and resources. Enhancing shareholder value remains the prime driving force of Reliance – ADAG Companies’ business and financial decisions. Reliance Communications will ensure Reliance Communications success by satisfying Reliance Communications customers and increasing shareholder value. Reliance Communications lenders and other investors Reliance Communications are committed to truthful disclosure of all material facts and the regular and timely payment of all Reliance Communications debt service obligations. Reliance Communications Suppliers and other service providers Reliance Communications are committed to fair competition and the sense of responsibility required of a good customer. The government Reliance – ADAG Companies are fiercely patriotic company and is enthused and proud to be a home grown enterprise. Reliance Communications are committed to the payment of all-applicable taxes and duties and adherence to all applicable laws and regulations.

2. Policy on Code of Ethics Background Reliance – RELIANCE – ADAG Companies’ Code of Ethics is in alignment with its values and commitments. The essence of this code is that each employee should conduct

the Company’s business in a way that upholds its values and commitments. This code expects every employee to conduct business with integrity, in compliance with applicable laws, and in a manner that excludes consideration of direct or indirect personal advantage / gains. It is the individual responsibility of each one of Reliance – RELIANCE – ADAG Companies’ employee to ensure that all of us are aware of these values, commitments, and procedures, and behave in accordance with the spirit as Well as the letter of this code. Reliance – ADAG Companies recognize that it is vital that the behaviour of its employees matches the high intentions and values. Hence, adherence to all the elements of this code and the accompanying principles and procedures is necessary. The principles and procedures in this Code of Ethics apply to all material transactions, large or small, and describe the conduct expected from every Reliance – ADAG Companies’ employee.

Issues dealt with by Reliance – ADAG Companies’ Code of Ethics 

Code of Ethics contains the policy on the following:



Conflict of Interest



Payments and Gifting



Receipt of Gifts



Purchases through suppliers and other service providers



Regarding full-time consultants, agents, representatives and others



Political Contributions

CONCEPT OF RELIANCE COMMUNICATION Anil Ambani: Telecom person of the year 2007 His marketing strategy has made millions of Indians happy, they got the best mobile tariffs in the world-local call costs at 15 paise/minute, and STD call at 40 paise/minute

When the VOICE&DATA jury, comprising eminent professionals from the telecom field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-hour Communications selection process was steamy. The reason was obvious: The telecom sector is growing faster than any other segment and naturally their CEOs have a lot to crow about. The jury had to select one from three CEOs, who had made it to the final list through nominations from the industry and the initial scrutiny. Among the three, one of the main contenders was a young CEO. The jury decided that he should come back next year to try and win the coveted award. The list now had two names-both CEOs of two Well-known companies. The pivotal difference between the two: one is an entrepreneur and the other is not so popular, as his credit is shared among a number of his big daddies. Following a five-hour closely held, hotly debated discussion, the name was announced: Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil Ambani joined Reliance Industries (currently promoted by his brother Mukesh Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked him number 104 among the World's Richest People in 2006. The Ambani family faced criticism when it announced its ambitious plans to build a countrywide telecom network, as its prior expertise lay in commodities-textiles and petrochemicals business only. Apart from that telecom needs a service-oriented mindset, critics felt. What they did not remember was how the family had served its millions of shareholders. Policies in India are made in line with Ambani's vision, says an industry expert. His business acumen and closeness to politicians assisted him in making it to the Rajya Sabha in June 2004, as an independent member. Ambani chose to resign voluntarily on March 25, 2006. The same association with politicos gave him negative returns too when the Mayawati Government in Uttar Pradesh put a spanner on his ambitious plans to build a 1,200-acre SEZ. Media sees his aggression when he announces financial results for the Reliance ADA group of companies, and when he attends the annual general meetings and faces questions from shareholders. When he meets the press, he has answers to all their questions. He also remembers to call select journalists by name. To merchant bankers he, who has already contributed immensely to the financial reforms of the country, is one of the financial wizards of the world. May be because of his expertise, he gave up in the race to grab Hutchison Essar stake, after indirectly jacking up the valuation. His negotiations with the Qualcomm chief are also a folk theory now.

How did Ambani become the VOICE&DATA Telecom Person of the Year 2007? What are his personal and organizational achievements in the recent past? His path-breaking marketing strategy that was put in by the strongest team of telecom professionals the country has ever seen has made millions of Indians happy as they got the best mobile tariffs in the world. The aggression resulted to adding to his already swollen kitty. Every hour India will be adding around 20,000 new mobile customers and Reliance Communications over 4,000. When mobile telephony first began in India, a local call cost Rs 16 per minute; an STD Rs 50; and a call to the US Rs 100 per minute. With Reliance Communication’s pioneering price initiative, a local call now costs a mere 15 paise per minute, STD 40 paise, and a call to the US costs less than Rs 2 per minute. The presence of Reliance Communications is making the competition in India panicky. Global telecom forces will also shortly start feeling the heat. Ambani has also recently announced his

Rs 1,200 crore buyout of Yipes Holdings.

Achiever's Pride · Undertook financial restructuring of Reliance communications · To spend Rs 16,000 crore to expand and strengthen network coverage · After expansion, Reliance Communications will have the single largest wireless network in the world · Launched the lowest-cost classic brand handset at Rs 777 · Subscriber base grew to over 28 mn during last fiscal, registering 60% growth · Total Revenue shot up to Rs 14,468 crore, an increase of 34% · Net Profit rises to Rs 3,163 crore, an increase of over 600% · Revenues of the wireless business increased by 46% to Rs 10,728 crore · Broadband achieved revenue growth of 123% to Rs 1,144 crore · Market capitalization crossed Rs 100,000 crore · Will add 23,000 more to Reliance Communications

· Telecom services will be available in over 23,000 towns and 600,000 villages · Next generation DTH network will be launched before end of the year Reliance Communications' wireless subscriber base grew to over 28 mn last fiscal, registering a 60% growth. This makes it one of the top two wireless operators in India. "Economic growth in the future will be indexed to connectivity of millions of enterprise and individual customers. Over the next few years, Reliance Communications will have over 100 million customers, making us one of the top 5 telecom players in the world. In four years, Reliance Communications put up a total of 14,000 to Reliance Communications across the country. This year alone Reliance Communications will add 23,000 more to Reliance Communications. Reliance Communications wireless network is currently available in 10,000 towns. By the end of this year, it will be available in over 23,000 towns and 600,000 villages," Anil Ambani said at the first annual general meeting of Reliance Communications since the re-organization of the Reliance Group in June 2005. "In years of operations, Reliance Communications invested around Rs 32,000 crore. This year alone Reliance Communications will invest over Rs 20,000 crore. At the end of this year, Reliance Communications will have covered over 90% of Reliance Communications population. If Version 1.0 of the Indian telecom story was all about affordability, Version 2.0 will be about reach. Reliance Communications Network expansion will give us the power to drive the market and stay ahead of the curve," Ambani adds. According to Ambani, the financial restructuring of Reliance Communications is the biggest turnaround story in the history of corporate India. The inherited ownership structure of Reliance Communications was complex. The reorganization has yielded a simple, fair, and transparent ownership structure, and given Reliance Communications 100% ownership of all operational and associate companies. Reliance Communications is now among the three most valuable private sector companies in India, and the five most valuable telecom companies in Asia. In the current Fiscal, Reliance Communications will spend Rs 16,000 crore to further expand and strengthen its network coverage across India and the rest of the world. In addition to organic growth, Reliance Communications will leverage the advantages derived from this impressive financial platform to explore and pursue any significant opportunities available in the telecommunications sector. "Reliance

Communications are currently evaluating a number of inorganic opportunities in select international markets to further expand Reliance Communications footprint," Ambani said. Reliance Communication’s One India,. The company was the first one to break the Rs 1,000 entry-barrier with the launch of the Reliance Communications low cost classic brand handset at Rs 777. As per its expansion plan, Reliance Communications will have the single largest wireless network in the world, covering over 900 mn Indians or more than 15% of the global population. It will cover 23,000 towns or every single Indian habitation with a population of over 1,000. Reliance Communications will cover almost 100% of all rail routes, providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters every day. It will also cover almost 100% of all national highways, and 84% of all state highways, giving millions of users the Reliance Communications r to talk, text, surf, play, chat or simply stay in touch across nearly the entire length of India's 2,00,000-km-long road network. Having achieved tremendous growth, the main challenge for Reliance Communications is to improve quality of service and ARPU. Its enterprise business is also not in a position to compete with the global majors. Stock market valuations may boost the fortunes of an entrepreneur, but Ambani needs to address the issues faced by the growing mobile customer base, especially in India, where bureaucracy takes pride in checking the businessman.

AN OVERVIEW OF CURRENT MARKET SCENARIO

Reliance Communications (formerly Reliance Communications Ventures) is one of India's largest providers of integrated communications services. The company has more than 20 million customers and serves individual consumers, enterprises, and carriers, providing wireless, wire line, long distance, voice, data, and internet communications services through a number of operating subsidiaries. The company sells communications and digital entertainment products and services through its chain of Reliance Web World retail outlets. The company's Reliance Communications subsidiary provides wireless communications services throughout India. Reliance Communications is part of the Reliance - Anil Dhirubhai Ambani Group. The current network expansion undertaken by Reliance is the largest wireless network expansion undertaken by any operator across the world. It was with this belief in mind that Reliance Communications (formerly Reliance Communications) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002. Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire Communications (information and communication) value chain, including infrastructure and services — for enterprises as Well as individuals, applications, and consulting. Today, Reliance Communications is revolutionizing the way India communicates and networks, truly bringing about a new way of life. Reliance Communications will leverage Reliance Communications strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. Reliance Communications will offer unparalleled value to create customer delight and enhance business productivity. Reliance Communications will also generate value for Reliance Communications capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.

Products and Service offered by Reliance communications

Some of the products that are offered by Reliance communications are as follows 1. Reliance CDMA mobile service 2. Reliance GSM mobile service 3. Reliance Broadband+ Net connect 4. Reliance Hello Desk Phone Fixed line service 5. Reliance Big TV 6. Reliance CDMA 1x net connect

Analysis of the data

In the questionnaire respondent was asked to fill their occupation to know that customers with what occupation prefer post paid and what plan they want to have. Occupation of the post paid

Number of the post paid users

users Business

79

Employees

82

Student

19

Interpretation of the data Out of 180 respondents 82 respondents are employees and 79 respondents are businessmen and 19 respondents Were students who are doing their degree, by this Reliance Communications can say companies can concentrate on employees of different companies whose work depends on mobile phone.

Which cellular service does the customer prefer and who is the major competitor for the Reliance communication Cellular service used by the respondents

Number of the respondents

Airtel

146

BSNL

13

Idea

10

Vodafone

11

Out of 180 respondents 146 respondents using Airtel, 13 are using BSNL, 10 are using Idea and 11 are using Vodafone. Since I have selected more no Airtel stores for my survey because it is a market leader

The next question asked how much monthly rental they for the post paid which they are using presently Monthly Rental paid by

Number of the

the respondents

respondents

Rs-299 and above

78

Rs-299

41

Rs-249

42

Rs-199

18

No idea

1

Out of the 180 respondents 78 of the respondents pay the monthly rental of Rs-299 and above, 41 of the repondents pay monthly rental of Rs-299 , 42 respondents pay monthly rental of Rs-249, 18 respondents pay a monthly rental of Rs-199 and only one respondent has no idea about the renatl paid by him.

By this Reliance Communications

can conclude that customers are paying higher

montly rental for getting lower call rates. Reliance Communications can create awreness about the lower monthly rental and lower rates which can help in increasing the sales

In questionnarier the respondent was asked about the satisfaction level of the customers out of the 180 respondents 133 respondents are satisfied with the monthly rental and call rates of the post paid what they are using at present and 47 respondents are not satisfied with post paid service because of higher monthly rental and network problems. Satisfaction level of Number of the customers respondents Yes

133

NO

47

The respondents are asked whether they are aware of reliance GSM service or not. In that I came to know that all most all the customers are of Reliance GSM service but they don’t want to go for that because they don’t want to change their number and network problem.

Awareness about No of Reliance

GSM respondents

service Yes

145

No

35

Finally in the questionnaire the respondents are asked whether they are interested in Reliance GSM post paid service or not, the following response is collected from the respondents.

Interested in Reliance

No of respondents

GSM post paid Yes

24

No

123

Will see in future

32

Out of 180 respondents only 24 respondents said they are interested in Reliance GSM service and they want to change to Reliance GSM service, 120 respondents said that they don’t want to change from the existing service because they believe that if they change to other service then they will lose their business. Reliance has to offer Service to the customers with the same number it is possible only through 3rd generation technology.

Findings from the survey •

From the survey I came to know that customers are interested in Airtel they believe that Airtel has got better network coverage compared to other operates

•

Customers say that Airtel has got good voice clarity

•

Customer think that there is no freedom in hand selection if they go for Reliance this is happening because of lack awareness of Reliance GSM service to the customers

•

Most of the customers from Airtel are paying Rs-299 and above monthly rental for the service when the service from other operators is available at Rs-249 and Rs-199

•

Some of the customers are unaware of the monthly rental what they are paying to the service and some are not aware of the call rate of their post paid.

•

Customers want to have a post paid service which can offer call rate at 30ps and which must have better network coverage.

•

Most of the post paid users are employees whose work depends on phone calls and remaining are Businessmen who make most of the use of the post paid only few are students who use post paid service.

•

Customers don’t want to shift to other post paid service if it offers service at lower rates because they don’t want to change their number and lose their contacts.

•

Airtel is giving 900 minutes of talk time to the customers who are paying a monthly rental of Rs-499 above which can be used to any mobile which is not offered by any other operator.

•

Airtel offers plans as per the customer needs presently it is having 11 tariffs in post paid, Vodafone is having 8 tariff plans in post paid service, BSNL is having 8 tariff plans in their post paid service and idea is having 5 tariff plans where as Reliance GSM is having only 3 plans, which is lesser compared to other operators.

Suggestions •

Awareness of Reliance GSM post paid service should be created among the customers, for that the company should go for advertisements since most of the post paid users are not aware of the Reliance GSM service still they think it as CDMA mobile service and for that they have to purchase a new handset.

•

Reliance should come up with more plans as per the customers need like I. II.

Reliance to Reliance free within closed users group Should give initial more free minutes of talk time for calling to other GSM mobiles.

III.

Should come up with free SMS offers on post paid service to attract student customers.

IV.

Should come up with free calls between 2 numbers to attract youths who want to talk more.

•

Reliance should have GSM network coverage at all places still there is problem with GSM network.

•

Reliance should come with plans which are suitable for businessmen who make more STD calls for their business in spite of having lower call rates for local calls.

•

Reliance should come up with awareness campaigns across public places and help desks in large companies.

•

Most of the customers are afraid of that they will lose their business if they change their number so if possible try to give the number similar to the old number to satisfy the customers.

•

Some of the customers want to have fancy numbers in GSM which is offered by other operators better to give the numbers as the per customers demand which will help in increasing the sales of the Reliance GSM service.

•

For the call rates of 30ps other operators like Airtel and BSNL are charging monthly rental of Rs-399 and RS-425, so Reliance should come with advertisement of new post paid offers that are available to the customers.

Conclusion

• Most of the time post paid service usage depends on the occupation of the customer. • The awareness about Reliance GSM service is not up to the mark in the Mysore City. • Most of the customers are using Airtel post paid service in the city at present because of its network and tariff plans • Customers are interested in mobile operator which can offer the service upto their satisfaction level. • Customers are not aware of the difference between GSM service and mobile service. • The customers are to ready pay the rental which is demanded by the operator if it offers service as per the needs of the customers, that is they are ready to pay the rental up to Rs-599 per month if the operator offers them call rates at 30ps to any mobile and first 900 minutes free and it should have total network coverage. • 74% of the respondents who I have surveyed are happy with the service what they are using at present so it is difficult to churn them to Reliance GSM service. • Customers have mindset that all the mobile operators are same and they just want to attract the customers, so they want to shift to other operators.

Bibliography

www.google.com www.rcom.co.in www.airtel.in www.vodafone.in www.bsnl.co.in Company Executives. Business today magazine, Jan 2008 edition

QUESTIONNAIRE

Name: __________________________________________ Occupation ______________________________________ Address:_________________________________________ _________________________________________ Contact No: ______________________________________ Gender:

Male

Female

1. Which post paid cellular service you are using at present a. Airtel

b. BSNL

c. Idea

d. Vodafone

2. How much monthly rental you pay for your post paid a. Rs-199

b. Rs-249

c. Rs-299

d. Rs-299 and

above

3. Are you satisfied with your post paid service provider Yes

No

4. If yes why? Give reasons __________________________________________________________________

5. If no why? Give reasons __________________________________________________________________

6. What is the call rate of the post paid service which you are using at present a. 30ps

b. 40ps

c. 50ps

d. 60ps

7. Are you satisfied with the call rates of your post paid service Yes

No

8. Are you aware of Reliance GSM service Yes

No

9. Whether you have used Reliance cellular service previously Yes

No

10. Give your opinion regarding Reliance GSM cellular service

_________________________________________________________________ _ _________________________________________________________________ _ 11. Reliance is offering post paid service through its GSM are you aware of it Yes

No

12. Will you go for reliance post paid from your existing service provider if it offers call rates for any mobile at 60paise per minute for first one minute and 30ps from second minute onwards with monthly rental of Rs-199?

Yes

No

will see in future