5.2 SERVICE SECTOR MARKETING

Project on

“Study of Telecom Sector in India”

AN SYBMS ProjectROYAL COLLEGE OF ARTS, SCIENCE & COMMERCE

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ACKNOWLEDGMENT

It has been truly said that “Success is not the result of individual efforts” hence it would be a pleasure to take this opportunity to express my gratitude to all those who contributed directly or indirectly in the process of devolping this project

We would sincerely like to extend our thanks and gratitude to the following in the absence of which this project would have not been possible.

We would like to thank our Principal ‘ A.E. LAKDAWALA’ & our Vice Principal ‘ Prof. KAMLA’ of Royal Higher Education Society to give us an opportunity of learning in this college and carry out our project work. We would like to thank Prof.Jalpa who has given us excellent guidance in fulfillment of this project. We would also give our hearty thanks to our Department

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Coordinator Prof. Arshi Siddiqui for her support. Finally we would like to express our gratitude towards my parents and god for their support and blessings.

DECLARATION

We the students of “Royal College” of TYBMS (sem 5). We have completed this project on “TELECOM SECTOR IN INDIA” for the academic year 2010-2011. The information submitted is true and original to the best of our knowledge.

Team Members:

NAME ROLL NO.

Eugine Carneiro 3 Shruti Kotian 16

Shirley Pereira 22

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Pooja Rammanoj 23

Shruti Shetty (TL) 28

index

SR.NO PARTICULARS PAGE NO

1. INTRODUCTION 7-8

2. NATURE OF TELECOM SECTOR 9

3. Fdi investment in telecom 10-11

4. p’s in telecom sector 12-22

5. Current issues 23-24

6. future prospects and challenges in telecom sector

25-26

7. Market structure and major players in telecom sector

26-30

8. Micro analysis – reliance sector 31-42

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a.

b.

c.

d.

e.

f.

g.

h.

i.

History

Founders and vision

Business

Corporate governance

Milestones in 2008

Swot analysis

P’s of marketing

Future plans

Recent events

9. Suggestions and conclusion43-44

10. bibliography 45

EXCECUTIVE SUMMARY

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Talking of telecommunications sector in India today, we can primarily identify two segments namely Fixed Service Provider (FSPs) and Cellular Services. Some of the essential and basic telecom services forming part of Indian telecom industry include telephone, radio, television and Internet. Telecom industry in the country lays a special emphasis on some of the advanced and the latest technical innovations like GSM( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS(Public Mobile Radio Trunking Services), Fixed Line and WLL (Wireless Local Loop ). Especially, India has a flourishing market in GSM mobile service, while the number of subscribers is on rapid and dramatic increase.

The Indian telecommunications industry boasts as being one among the most rapidly growing chunks on the globe. Experts around the world estimate that India holds the promise of emerging as the second largest telecom market of the world.Figures published by the Telecom Regulatory Authority of India (TRAI), reveal that the number of telecom connection subscribers in India reached 562.21 million in December 2009, marking a 3.5 percent increase over the number 543.20 million reported in November 2009. This figure indicates that the average teledensity (number of telephones per 100 persons) has gone up to 47.89.

This project focuses on the developments and innovation made in the Indian telecom sector. The main topics covered in the project are nature of telecom sector , FDI investment in telecom sector, & 7p’s in telecom sector, current scenario and the challenges faced by Indian telecom sector and the future aspects in telecom sector. The market structure and the major players in Indian telecom sector.

The project also depicts a detailed study on “Reliance telecommunication”

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INTRODUCTION

Indian Telecom industry is one of the fastest growing telecom markets in the world. In telecom industry, service providers are the main drivers; whereas equipment manufacturers are witnessing growth and decline in successive quarters as sales is dependent on order undertaken by the companies. Airtel, Reliance, Tata and Sterlite are some of the companies that are expected to spur the growth in 08, as compared to 07. According to Cygnus estimates, telecom industry is expected to grow by 25% in 08 as compared to 07, in terms of sales. EBDITA and PAT are expected to grow by 32% and 34% respectively in 08 as cost expenses are being control by major companies like Airtel and Reliance. The major booster is the wireless mobile subscriber base; crossing over 261m in March 2008. Other services like Internet subscriber base has also provided significant impetus with its subscriber base reaching over 11m in March 2008.

HISTORY OF TELECOM SECTOR IN INDIA

Year

1851 Introduction of Telegraph services 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 Foreign Telecom Companies nationalized to form PTT

1980’s: The Beginning

Tele-density in 1980-81: 0.3% Introduction of public pay phones Private Sector allowed

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DoT, MTNL and VSNL formed Foreign Telecom Companies nationalized to form PTT

1980’s: The Beginning

Tele-density in 1980-81: 0.3% Introduction of public pay phones Private Sector allowed DoT, MTNL and VSNL formed

Early to Mid 90’s: A Messy Affair

Telecom policy 1994 - Basic telephony service to private operators - 49% FDI - 8 licensees began operations in Aug 1995

Late 90’s Birth of a regulator: TRAI NTP 1999 (New Telecom Policy)

2000+ CAGR of around 85% since 1999 FDI: 74% (2005)

2007-2009 having the world's lowest call rates the fastest growth in

the number of subscribers (45 million in 4 months), the fastest sale of million mobile phones (in a week), the world's cheapest mobile handset the world's most affordable colour phone

Total telecom subscribers : 429.72 million (March 2009) Wireless subscribers : 391.76 million Wire line subscribers : 37.94 million Tele density : 36.98 per cent

Nature of telecom Sector in India:

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Supply Intense competition has resulted in prompt service to the subscribers.

Demand Given the low penetration levels in the country and continuously falling tariffs, demand will continue to remain higher in the foreseeable future across all the segments.

Barriers to entry High capital investments, well-established players who have a nationwide network, license fee, continuously evolving technology and falling tariffs.

Bargaining power of suppliers

Improved competitive scenario and commoditisation of telecom services has led to reduced bargaining power for services providers.

Bargaining power of customers

A wide variety of choices available to customers both in fixed as well as mobile telephony has resulted in increased bargaining power for the customers.

Competition Competition has intensified with the entry of new cellular players in select circles. Reducing tariffs will hurt the new entrants as they will be unable to recover their high capital investments.

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FDI Investments in the Telecom Sector in India:

The Indian telecom industry has always allured foreign investors. In fact, the cumulative FDI inflow, from August 1991 to March 2007, in the telecommunication sector amounted to US$ 7,513.22 million. This makes telecommunication the third-largest sector to attract FDI in India in the post liberalization era. The investment was majorly in handset manufacturing and telecom service provider.

Sector wise FDI inflow

S.No Sector Amount of FDI Inflows

%age of Total Inflows

(In Rs) (In US$)

TELECOMMUNICATIONS

TELECOMMUNICATIONS 133,064.91 3,000.35 41.95

RADIO PAGING 113.92 2.53 0.04

CELLULAR MOBILE/BASIC TELEPHONE SERVICES

175,590.11 3,873.12 55.36

OTHER (TELECOM) 8,430.03 174.87 2.66

Sector Total 317,198.97 7,050.88 100.00

Sl No Year (Apr-Mar) FDI(Rs in Crore) FDI(US$ in million)

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1 2000-01 784 178

2 2001-02 3,937 873

3 2002-03 908 192

4 2003-04 514 112

5 2004-05 570 125

6 2005-06 2,776 624

7 2006-07 2,155 478

8 2007-08 5,103 1,261

9 2008-09 11,727 2,558

10 2009-10 4,897 993

 

Grand Total 33,264 7,369

Industry Revenue (2002-2010)

According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. India has become the second country in the world to have more than 100 million CDMA-based (code division multiple access) mobile phone subscribers after the US, which has 157 million CDMA users. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding nearly 9 million new subscribers in April 2009, taking the total user base to 297 million, a growth of 3.11 per cent over the additions made the previous month. The figures, however, do not include the GSM subscriber additions made by Reliance Telecom.

P’s in Telecom Sector

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TELECOMMUNICATION MARKETING – A CONCEPTUAL FRAMEWORK

Telecommunication services play an incremental role in the multi-dimensional development activities. A well functioning telecommunication network is an essential component of economic infrastructure. The application of modern marketing principles in the telecommunication service would make ways for the generation of profits and at the same time would also make the services affordable to the users at large.

Telecommunication marketing focuses our attention on marketing services professionally and this makes it a managerial process. The marketing professionals bear the responsibility of managing the services which enrich the service profile of telecom in order that the world class services are made nationally and internationally competitive.In view of the above, we observe the following facts regarding telecommunications marketing: Telecommunications marketing is a managerial process that helps an organized development of the telecommunication services.

It is an organized effort to formulate a sound marketing mix for the telecom services.

It is a social process to help the individuals and institution in activating the process of social transformation. Besides, the social costs shouldered and the subsidized and concessional services to be offered to the selected segments of users are given due weightage.

It is a planned development process that makes possible an optimal development of telecommunication services.

It is a device to develop a new perception of services by offering innovative, competitive and profit-oriented services

OBJECTIVES OF TELECOMMUNICATION MARKETING

1. To make possible qualitative improvements in the service profile:

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It is right to mention that except a few almost all the service generating organization are required to improve the quality of their service profile. The marketing professionals make a strong application of marketing principles and would activate the process of qualitative transformation. The application process would make possible innovation which would help in designing a sound product portfolio. The services would be of world class which would be efficacious in motivating the prospects and users. The marketing information system would help professionals in developing a sound information base that would let them know the changing needs and requirements of users. Thus the quality of service would be improved.

2. To make possible quantitative improvements: In a country like India, it is significant those communications networks are channelized to all the regions so that almost all segments of the society get an opportunity to avail the services. It is advocated that application of marketing principles would make the organization commercially viable and financially sound which would energize the process of development and expansion. We find relevance of information even to the agricultural sector of the economy. This makes it essential that telecommunication services are made available to all the regions.

3. The cost effectiveness is made possible: Economy in operation is considered essential to make the services affordable to the user as well as profitable to the information selling organizations. The application of modern marketing principles make possible cost effectiveness since the marketing professionals bear the responsibility of optimizing the cost of offering the services. There is no doubt that by conceptualizing marketing, the telecommunication organizations would be successful in regulating the unproductive costs & expenses in a better way thus making the process cost effective.

1.Place mix

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It is not only sufficient that you promise world class services and generate a gap in processing. You are supposed to be careful that the gap between the services-promised and services-offered is bridged over. You promise less, offer more. You promise high but offer low. The second condition results into a large scale of dissatisfaction among the users and damages the image. It is here where place mix comes in telecommunication services. In the place mix, we need to focus our attention on two important issues, first the promised services reach to the ultimate users in a decent way and second the location points for the telecommunication services is not instrumental in generating complications to the users vis-a-vis to the personnel working there.

The first problem is related to the processing of services in which the marketing professionals are supposed to be sure that whatever the services have been promised are delivered to the ultimate users in a decent way. This makes it essential that they are one hundred percent sure that the employees engaged at the different points and to be more specific at the sensitive points where users assemble in a good number, such as the counters for the collection of bills, complaints and enquiries are efficient, submissive, value based and prompt. It is essential that they have a high behavioural profile. Besides, the supporting technologies engaged in processing of services are working satisfactorily.

There must be correlation between the technologies evolved and the employees placed. Overcrowded counters, indecent behaviour of the staff and abnormal delays in the processing of services leads to dissatisfaction. The marketing professional should ensure that the processing of services is integrated.

Any decisions taken should benefit the ultimate users at the earliest possible. If we go through the processing of services by the Department of Telecommunications, it is clear that both the aspects are mismanaged. The technologies are either faulty or the employees don’t know how to manage the same. Sometimes the computer develops a fault, sometimes the employees are not found at the counters and sometimes there is a big crowd.

2.The Price Mix

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Almost all the organizations either producing goods or generating services find pricing decisions significant to the development process. The existence of an organization is in doubt if the mistakes are committed while making the pricing decisions. It is on this background that we talk about this component of the marketing mix. In the context of telecommunication organizations, we find tariff charged for the services offered. It is well known that the different categories of users buy the services and therefore the telecommunication organization is required to be more careful in setting the tariff structure.

The main thing is the designing of a rational tariff structure which on one hand makes way for profit generation while on the other hand also makes the services affordable for the users. There are two categories of users, first-users using the services for domestic and personal purposes and the second categories of institutional users using the services for commercial purposes. WE also find the third category of users known as Pay Phone Services who buy the services from the telecommunication organization and sell them to different categories of user in which a nominal fee is found to be included.

The telecommunication organization also charges licensing fee from the pay phone centers which is a big source of revenue to the telecommunication organization. While making pricing decision organization has to be careful so that the profits are also generated.

We are well aware of the fact of the discriminating pricing policy adopted by the telecommunication organization. The special categories of users are given subsidized and concessional services, such as rural users, new or budding entrepreneurs, new institutions promoting welfare and so. The telecommunication organization charges different slab and tariffs on different operational hours. They also provide provisions for selective days and festivals. Thus we find diversified pricing strategy adopted by the telecommunication organization to generate revenue. The Telecom Regulatory Authority plays a significant role on deciding the price in the Indian context.

The pricing decisions and the tariff structure also depends upon the nature and types of services offered by the telecommunication organization. For the data / fax services, internet services etc there are different slab and base. The pricing decisions are found of sensitive nature, but when a seller’s market is found the organization responsibility is considerably simplified. The complication comes when they start bear the social cost. It makes them financially sound. Such a Stage of financial soundness depends upon the pricing decisions of an

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organization. This makes it essential that the Department of Telecommunication takes into consideration various factors for making a tariff decision. The governmental interference in the making of the pricing decisions is to be checked. The revision in tariff structure licensing fee has a close relation with the costs of services. If the organization invest substantially on inputs and gets less from the outputs then in the long run the organization will become financially insolvent. Thus the telecommunication organization needs freedom while setting the tariff-structure.

The marketing professionals serving the telecommunication organization are supposed to be aware of the business as well as of the social responsibilities. For promoting business, they need to generate more revenue and for enriching the social profile, they need to strike a balance between the organizational strength and the social requirements. The intensity of social costs also plays a role in setting the tariff-structure. If the telecommunication organization is bearing a huge social cost then the tariff-structure has to be adjusted as some of the selected segments of the markets have to pay more for the services they use.

If the inflationary pressure is mounting high and the spending power of the prospects move upwards then the high pricing strategy would be preferred. Contrary to it, if the cost of inputs used in the process comes down and the income of the prospects also goes down then the marketing professionals needs to avoid a hike in the tariff. Thus the main thing in setting of tariff structure is the prevailing business conditions.

Another factor is the market potentials. If the telecommunication organization finds big market potentials then even if the rate of tariff is low and the share of the profit is nominal, the organization succeeds in generating high profits. The fact cannot be denied that the Department of Telecommunication has a big market potentials. This makes it essential that they charge low tariff, expand the business and tap the market potentials. Cost effectiveness is considered to be an important aspect influencing the tariff structure of the telecommunication organization. The telecommunication organization has been facing the problem of high operational costs. This is due to the inefficient personnel and mismanagement of technologies used for offering services. It is essential that the professionals make the ways for increasing the level of efficiency. They are required to be careful to the operation, maintenance and replacement of assets as and when the circumstances arise. The management of assets if taken up properly can

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minimize the depreciation costs; increase the performance and the life of assets vis-à-vis the efficiency of the personnel working there. These positive developments in the process help in bringing cost effectiveness which enables the telecommunication organization in rationalizing the tariff structure. The process of technological sophistication has gained momentum and in the coming years the telecommunication organization would have to incorporate the technological sophistication to improve the quality of the services in order to generate more revenue.

Thus the telecommunication organization needs to have world class excellence and a free hand. They should have professional who know about the magnitude of social cost to shoulder it. Therefore it can be said that the pricing decisions are critical and challenging.

3.The promotion mix

This mix mainly focuses on creative promotional measures helping the telecom organizations in informing, sensing and persuading the users. It goes through different constituents of promotion, such as advertising, publicity, sales promotion, personal selling, word- of-mouth promotion and telemarketing. The intensity of competition is almost dismal therefore the Department of Telecommunication has not been assigning due weightage to the promotion measures. IT is necessary to promote since there are a number of services where the telecommunication organization has yet not been successful in capitalizing on the opportunities optimally. It also needs to inculcate mass awareness as it makes the task easier. It is against this background we go through the different constituents of promotion mix.

Advertising:- Like others, the telecommunication organizations may also advertise with the help of media that is print media, broadcasting media and telecast media can be used for this purpose. The marketing professional and the advertising professionals are supposed to make slogans, themes, and appeals more creative so that the target prospects are sensitized in the right way. The print media may be more effective as it provides adequate space to inform and sense the users. Of late, sophisticated print technology are found very much instrumental in adding attraction to the messages as well as the quality print material which makes the process more and more attractive. The marketing professionals need to seek the cooperation of the leading advertising

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professionals who would help them in sensing and stimulating the users. The economy in print media also balances the problem of financial constraints. They can also advertise through the broadcast media. Of later, in almost all areas of the country, there is air transmission which would help in sensitizing the users. The information related to new services, such as fax services, e-mailing, intermit and intranet are not known to the prospects. The broadcast media would also be economics. The professional are required to take the decision regarding the transmission time, frequency and duration.Of late, telecast media has emerged as the most effective media. With the help of the audio-visual exposure, it is possible to inform and sense the users and the prospects in the right fashion. Keeping in view the size of the business vis-a-vis the market potentials, telecom organizations are in a position to afford even the telecast media. They need to advertise not with the motto of promoting the business but also to keep in minds the messages and slogans related to misuse of services. The advertising professionals having world class excellence are to be engaged for this purpose who would design the advertisement layout, compose slogans and messages bearing more creativity. If they are professionally sound, the advertising budget would be made optimal. Publicity:- Another component of promotion focuses on publishing the business with the support of media personnel and opinion leaders. The telecom organization may use it with the motto of informing the prospects the salient features of innovative services offered or to be included in the service mix. It does not influence the promotion budget since publicity is a non paid-form of communication. The marketing professionals need to accept the responsibility of developing rapport with the media people, to arrange for them lunch or dinner or to offer to them some small gifts to write new items or articles related to the services and to place them at the eye-catching locations. In this context, it is necessary that the marketing professionals, sales people, public relation officers are supposed to establish contact, specially with the large-sized customers or trade representatives having high communication ability and rich information bank so that they succeed in impressing the representatives or prospects. Sales Promotion:-

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It is essential that the telecommunication organization makes use of sales promotion measures for promoting the innovative services, specially used by large sized customers. If the prospects are offered some small gifts, the motivation process will be switched on. They also need to offer innovative tools of sales promotion to some of the high performers in the group of employees who instrumentalise the process of getting the profitable business. This would help in tapping the potential markets which in turn would increase the profit. The telecommunication organization should use sales promotion for both the employees involved in the process and the prospects and the users.

Personal selling:- It involves the essence of promoting the business with the support and co-operation of sales people.This component of promotion mix is not found so much significant in the telecom organizations. However it is required to promote its business to tap sales potentials and market potentials which remain untapped or partially tapped due to communication gap or insensitive persuasion process.

Word–of-mouth promotion:- This promotion mix is found mainly based on the quality of service offered by the service generating organizations. IN telecommunication organization this component is instrumental because the satisfied group of users would narrate to their friends, relatives, well- wishers regarding the outstanding services they experienced as a customer. Everyone trusts on their relatives and friends and therefore they may use the services as and when the circumstances necessitate so. The improvement in the quality of services and the support and co-operation of opinion leaders or local persons would also affect the process.

Telemarketing:- Of late, a majority of the organization are promoting their business with the support of telemarketing. In this component of promotion, telemarketers are promoting the business with the support of telephones. The telecommunication organizations for removing confusion and misunderstanding of the prospects and further for bridging the over the communication gap may use telemarketing. The queries of the users and the prospects are answered in such a way that they are convinced. It is necessary that personnel with a highly communicative ability have to be recruited and training facilities have to be imparted to them for improving their efficiency and the behavioral profile. This component of promotion may be effective in many ways and therefore the marketing professionals need to assign due weightage to the credentials and

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temperament of the personnel who are supposed to perform the responsibility of telemarketers.

The main thing in promotion is to inform, sense and persuade the users and the prospects so that they are transformed into habitual users. The instrumentality of a particular constituent depends upon the prevailing condition and other factors such as financial provision and budgetary constraints. The telecommunication departments have to sharpen the promotional tools so that the users are aware of various services such as fax, intranet and internet services. It is clear that the telecommunication organization is required to promote its business by making possible creativity and sensitivity in the promotional measures by taking the help of professional with world class excellence

4.Product mix

While formulating a sound product mix, it is essential that in addition to the core services, the telecom organization also blend the peripheral services. They develop a package that attracts large sized users that is the educational institutions, business and government organization. While developing the product mix it is necessary the changing needs and requirement of different categories of users are fulfilled. Innovation in the service portfolio should be given weightage.The main thing in the process is to formulate a service mix that makes way both for profit generation and satisfaction. Thus it is right to mention that like other organizations, telecommunication organization also needs to formulate a sound product mix that focuses attention on offering world class services so that the level of efficiency is increased and the task of the marketing professional become easier.

We are well aware of the facts that telecommunications include a numbers of services, such as the telephonic services, telegraphic services, e-mailing services, fax services, inter-net services or so. With the development of sophisticated communication technologies, we find a big change in the service profile of telecommunication organizations. On the one hand the telecom organizations feel that the services are quite satisfactory while on the other hand we find increasing cases of dissatisfaction among the users. This makes it essential that we make sincere efforts to improve the quality of services.

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On the basis of figure, it is right to mention that the telecommunication organizations offer multi-dimensional services to the different categories of domestic and institutional users. The marketing professionals bear the responsibility of making it sure that a sound services profile is designed in which both the categories of services, such as core and peripheral are optimally blended. It is against this background that we go through the process of formulating the product mix.

With the development of cordless and cellular phones, we find a change in the nature of services. In this context, it is the prime responsibility of the telecommunication organizations to make it sure that users get quality services, such as services with a dismal breakdown, noise and interruption, quality audio-delivery or so. The technical personnel are required to make it sure that the users are made available quality instrument and the replacement is made possible as and when the circumstances necessitate so.

The professionals bear the responsibility of increasing the telephone density in order that the prospects are transformed into the users. If we turn our eyes on the cases of complaints ant their redressal, it is almost clear that the telephonic services are degenerating fast due mainly to the fact that telecom personnel don’t extend to marketing cooperation in the process. Though we agree with this view that large population and the huge size of the country have adversely affected the telephone density in India in spite of the fact that the telephone network has recorded a considerable growth.

5.The people mix:

Almost all the public sector organization working in the Indian perspective underestimate the instrumentality of employees in the increasing level of efficiency. Even the traditional technologies may deliver goods to the users if the employees working there are of quality. Contrary to it, even the sophisticated technologies fail in satisfying the users if the employees are not of quality. The main focus is on quality. It is right to mention that sky is the limit of quality and perfection. Today we find one set of employees efficient but just tomorrow they are found in efficient. They should be personally committed and very much instrumental in projecting a positive image of the organization. They should be aware of the points of soul-selling. It is in

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context that we go through the problem of people mix in the telecommunication organization.

We can’t negate the fact that of late the telecommunication organizations are well equipped with sophisticated information technologies. The computers are in good number, the fax machines are serving the office management vis-à-vis the users. The furnishing and interior decoration are also found depicting aesthetic sense. In addition, all the supporting infrastructural facilities are available.

But what about the responsibility of managing and controlling everything. We have no option but to confess that in a majority of the cases, we find inadequacy of quality people, especially in the public sector. The employees working in the private sector organizations have no option but to prove themselves of quality because failing the same they would find it difficult to continue. Like other public sector organizations, the Department of Telecommunication has also been facing the problem of inadequacy of quality people resulting into low efficiency, declaration in productivity and profitability or so.

The aforesaid facts make it clear that if we don’t find work culture in Department of Telecommunications, an important reason for the same is job security. The employees in general feel that even if they don’t work, the trade unions would come ahead to protect them. The level of efficiency in the private sector organization is found high; we also find value-orientation and we find even personal commitment.

In view of the above, the boardrooms, senior professionals and the marketing professionals are required to assign due weightage to the people mix. The telecommunication organization is also supposed to assign an overriding priority to the Total Quality Management that focuses our attention on quality technologies, quality employees, and quality environmental conditions at the workplace or so.

CURRENT ISSUES

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1. Telecom regulator government's readiness to give a licence to first time entrant in the telecom sector upon its successful bid for 3G, saying regulators' recommendations are a must for this. Successful bidders, who do not have licence, would be given one and the terms and conditions of the existing licence shall be amended accordingly, DoT had said, while announcing the policy for 3G telephony. DoT had also said that the new player would have to pay a licence fee of Rs 1,651 crore without allocation of existing 2G spectrum "As this would require laying down the terms and conditions of this new licence, including the annual licence fee, therefore the Authority would like to draw the attention of DoT to the TRAI Act wherein recommendation of TRAI is necessary. The DoT may revisit the present guidelines for auction and allotment of spectrum for 3G telecom services on this issue and some other matters mentioned . The DoT has already initiated a process to appoint an independent agency for policing the auctioning of spectrum for 3G services in a transparent manner and if the policy was sent to TRAI for its recommendations the process may get delayed.

2. Telecom regulator TRAI said the government criteria ofsubscriber base for allotment of 3G spectrum to CDMA operators like RCom and Tatas is Against The Principle Of equity.

3. DoT's decision was also opposed by the GSM operators saying the movewould give undue advantage to CDMA Operators. Department of Telecom(DoT) may consider the auction route for allotment of spectrum in the 800MHz band (spectrum for CDMA players) with the highest bid received fromGSM operators as the reserve price. This would ensure equity, level playingfield and optimal pricing in allotment of CDMA spectrum for 3G services. The subscriber base of CDMA network of the service provider in any service area is a result of different environment and cannot muster the "test of fairness if it was to become the basis of priority".The government has allowed allotment of 1.25 MHz each to CDMA players based on subscriber base of respective players.Besides, DoT will also relook into various other issues relating to 3G policy.

4. The government would finalize the process of auctioning next generation 3G mobile spectrum By September 30. Ahead of the 3G spectrum allocationprocess, the government would invite request for proposals for rolling out

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mobile number portability (MNP). In a week's time, preliminary procedure for MNP seeking RFP from vendors will be out..

5. When Kumar Mangalam Birla, Chairman of the Aditya Birla Group, decided to add Spice to its Idea network, little did he realize that the deal might have more complications than he thought.After Spice buyout, Idea holds two license in Punjab and Karnataka which is why the telecom department has forced Idea to give up one of the two. Sanjeev Aga, Managing Director, Idea Cellular, may hope for a refund but nothing will come his way since DoT's babus are not willing to part with the license fee which Idea has already paid. "They can't hold two licenses for the same circle so they will be able to hold on to only one license. The government doesn't have a policy to refund money. Sources suggest that Idea may surrender its own license and keep Spice licenses in both, Punjab and Karnataka, circles.

6. The Delhi High Court on Friday dismissed a petition challenging government's decision to allow teleco m firms like Reliance Communication to offer services, using both CDMA and GSM technology. The judgment was pronounced after almost 6-month delay. But it was worth a wait for Anil Ambani, as the court dismissed a petition that could have derailed his GSM ambitions.

Telecom regulator TRAI recommended that National and International Long Distance operators be permitted to offer STD and ISD voice calls using operator- specific calling cards, a move that will give subscribers the freedom to choose a service provider. In its recommendations to the government, TRAI said the provision of calling cards would allow consumer to exercise choice of long distance operator for the national and international calls.

"Through long distance calling cards customer can make long distance calls from telephone of any access provider. Consumer can subscribe to any access provider and still not be dependent on the access provider for long distance calls,"

Competition brought in by carrier selection was considered important for bringing in operational efficiencies in the long distance segment and also in offering choice, quality and affordable prices to the consumers.

Future prospects

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With 300 million telephone subscribers today, India now boasts of having the second largest telecom network in the world after China. The country is adding some 8.5 million to 10 million new mobile subscribers to the network every month to also emerge as one of the fastest growing telecom markets in the world. The telecom industry also saw an estimated $8.5 bn in investment flow in during 2006-07 alone, of which $550 million was in the form of foreign direct investment.

All major telecom handsets manufacturers - including Nokia, Samsung, Motorola and LG - have their presence in India, so do leading global service companies and infrastructure majors, such as Vodafone, Singapore Telecom, AT&T, Ericsson, Alcatel and Siemens.

The next phase of growth, experts believe, will be in the country’s vast ruralareas - a development that, they say, would be more important than the Green Revolution in India’s farm sector in the 1970s, when the country emerged as a self-sufficient economy in food production, driven by the introduction of hybrid seed varieties and new irrigation techniques. Also, with a tele-density of just eight percent in rural India, as opposed to 50 percent in urban centres, the hinterland offers good scope for expansion.

Little wonder, Nripendra Misra, Chairman of the Telecom Regulatory Authority of India (TRAI), the sector’s watchdog, says in that the next few years would prove to be even more exciting for the telecom industry in the country, not just for domestic layers, but the global companies as well.

While the tele-density in the urban areas is over 50 percent, in rural areas it is around eight percent only. Clearly, the future lies in the rural areas.Telecommunication access to rural India is going to be the most importantdevelopment since the Green Revolution. Research analysts feel that mobilevoice is overwhelmingly the engine of growth followed by Next GenerationNetwork (NGN), broadband and data.

Norway based Telecom, world’s 7th largest telecom company is planning a foray in the Indian market.Telenor has a subscriber base of 143 million and holds majority stake in Bangladesh’s Grameenphone and operates in 12 countries.

Challenges

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The challenge of the day is to search for new cost-effective ways to roll outtelecom services in rural areas. It means one has to choose proper and effective technology for deployment and leverage on the use of available infrastructure to reduce cost and time of role out of services. Those service providers who create the right business would emerge winners and the rest would remain spectators.

Connectivity of networks and cost of bandwidth are also important to facilitate broadband usage. Availability of local application and content is another area of concern. Most of the content available on website as of today is in English. The content in local and regional language will increase interest of the local population in broadband utilization.

The convergence of technologies and emergence of new applications is another thrilling area. Lot of revolution is round the corner in broadcasting and entertainment industries. The emergence of Internet protocol TV, mobile TV will all change the scenario in the coming years.

Wireless technology is the future growth driver for which spectrum is the most important input. The task of spectrum management in a multi user and multi usage scenario is more daunting and crucial than ever before. In summary, if the last few years in telecom were exciting, it will be even more exciting in the coming years.

What are the main challenges facing the sector as we go forward?“The challenge of the day is to search for new cost effective ways to roll outtelecom services in rural areas. It means one has to choose proper andeffective technology for deployment and leverage on the use of availableinfrastructure to reduce cost and time of role out of services. Those serviceproviders who create the right business would emerge winners and

the rest would remain spectators.”

Sluggish pace of reform process AND Limited spectrum availability.

Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost.But notwithstanding these constraints, telecom sector has undergone a revolution in the past decade and has played a major part in bridging the rural-urban divide.

Market structure and major players

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Telecom sector today is one of the fastest growing sectors of all times.Connections are increasing everyday and especially in the wireless sector thegrowth is extremely fast. The Wireless subscribers have reached to 261.07million as on 31stMarch 2008 as against 233.62 million subscribers in theprevious quarter. During this quarter 27.45 million subscribers were added.

Top Players in telecom sector:

♦ Videsh Sanchar Nigam Ltd. ♦ Mahanagar Telephone Nigam Ltd. ♦ Bharat Sanchar Nigam Ltd. ♦ Bharti Enterprises♦ Reliance ♦ Hutchison Telecom♦ Tata Telecom ♦ BPL♦ Sterlite Optical Technologies Ltd. ♦ Finolex Cables♦ Telecom Equipment Manufacturers Association♦ Cellular Operators Association of India

GSM and CDMA

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The Indian wireless market is divided into GSM(Global Standards for Mobilecommunication) and CDMA (Code Division Multiple Access). There are 192.70 million GSM subscribers (73.81%) and 68.3 million CDMA subscribers (26.19%) at the end of March 2008.

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Difference between CDMA and GSM:

In cellular service there are two main competing network technologies: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). Cellular carriers including Sprint PCS, Cingular Wireless, Verizon and T-Mobile use one or the other.

The GSM Association is an international organization founded in 1987, dedicated to providing, developing, and overseeing the worldwide wireless standard of GSM.

CDMA, a proprietary standard designed by Qualcomm in the United States, has been the dominant network standard for North America and parts of Asia.

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MICRO ANALYSIS - RELIANCE COMMUNICATIONS

A DREAM COME TRUE

n business since 1985, Reliance Telecommunications is an established and proven telecommunications firm.  We specialize in providing high quality, technologically advanced voice and data equipment and services that allow us to excel in developing effective solutions to complex networking challenges.  From project design through fulfillment, Reliance delivers complete and comprehensive service.

The single most important factor in our ability to serve our clients' needs is represented in our dedication to doing what is right for the client. While that will not always result in a sale for our company today, it is our belief that it will earn us the trust and integrity you require to do business with Reliance tomorrow... and for many years to follow.

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.”

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It was with this belief in mind that Reliance Communications i.e. formerly Reliance Infocomm 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 digital network. It is capable of delivering a range of services spanning the entire infocomm 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 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, wireline, 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 WebWorld retail outlets. The company's Reliance Infocomm subsidiary provides wireless communications services throughout India. Reliance Communications is part of the Reliance - Anil Dhirubhai Ambani Group

HISTORY

Reliance Infocomm is the outcome of the late Dhirubhai Ambani's (1932-2002) dream to herald a digital revolution in India by bringing affordable means of information and communication to the doorsteps of India's vast population. Dhirubhai Ambani charted out the mission for Reliance Infocomm in late 1999. He saw in the potential of information and communication technology an opportunity for India to leapfrog over its historical legacy of backwardness and underdevelopment. Between 1999 to 2002 Reliance Infocomm built the fiber backbone for India — 60,000 kilometres of fibre optic backbone, crisscrossing the entire country. This network was commissioned on December 28, 2002, the 70th birth-anniversary of Dhirubhai. This day also marked his first birth- anniversary after his demise on July 6, 2002.

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FOUNDERS:

Few men in history have made as dramatic a contribution to their country’s 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. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets, the champion of shareholder interest.

But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise.

VISION:

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

BUSINESS

Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading integrated telecommunication company with over 55 million customers.

Their business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Their constant endeavour is to achieve customer delight by enhancing the productivity of the enterprises and individuals they serve.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital

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revolution in India. Today, they can proudly claim that they were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates. They endeavour to further extend their efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society. BOARD OF DIRECTORS:

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

Corporate Governance

Organizations, like individuals, depend for their survival, sustenance and growth on the support and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can... This ethical standpoint, derived from the vision of their founder, lies at the heart of the CSR philosophy of the Reliance – ADA Group. While they strongly believe that their primary obligation or duty as corporate entities is to their shareholders – they are just as mindful of the fact that this imperative does not exist in isolation; it is part of a much larger compact which they have with their entire body of stakeholders: From employees, customers and vendors to business partners, eco-system, local communities, and society at large.

Reliance evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social, economic and environmental costs and concerns.

For reliance, being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of our business objectives and strategy. Because they believe that there is no contradiction between doing well and doing right. Indeed, doing right is a necessary condition for doing well.

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Milestones in 2008: (current events)

January 12 Reliance Communications receives Start-up GSM Spectrum

January 16 Yahoo partners with Reliance Communications to provide Yahoo One Search for its CDMA and GSM customers.

January 31 RCOM's Q 3 Net Profit increases by 48.5% and Revenues Up by 29.8 %. Remains the most profitable Telecom Company in India. February 5 Reliance Mobile strengthens its religious content portfolio on Mobile by tie- up with Sadhana TV

February 14 RCOM in partnership with CanvasM, launches Mulitplayer Mobile Games

February 19 HDFC Bank ties up with RCOM, turns every Reliance Mobile into a credit card

February 27 Reliance Communications consolidates Global Telecom Business under “Business Globalcom”. Reliance Communications forays into International Mobile Market with GSM License in Uganda.

March 3 Reliance Communications drops prices of Internet Data Cards

March 27 Corporation Bank Launches Banking Services on Reliance Mobile World

April 1 Reliance Communications forays into IT space, launches Reliance Technology Services Company

April 9 RCOM launches Educational Portal on Reliance Mobile Phones

April 25 Reliance Globalcom unit Reliance Infocom BV, Netherlands acquires Global WiMAX Operator eWave World

April 29 Reliance Communications Announces Unlimited Free STD calls

April 30 Reliance Globalcom Launches Passport Global SIM

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RCOM's Net Profit up by 70.8% to Rs 5,401 crore

May 2 Reliance Communications’ Net Profit up by 70.8% to Rs 5,401 crore (US$ 1,350 million), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 million) and EBIDTA increases by 43.3% to Rs.8, 199 crore (US$ 2049 million)

May 12 Reliance Communications and Alcatel form Joint Venture to offer Managed Network Services to telcos across the globe

May 26 Reliance Globalcom acquires UK based VANCO Group Limited

June 24 Reliance Globalcom, Stealth Communications forge Strategic Alliance to extend VOIP Network across 50 countries

July 12 CA Exam Results on Reliance Mobile

July 22 Reliance Communications Mobile Subscriber base crosses 50 Million

July 31 Reliance Communications (RCOM) announces its financial results for the first quarter ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352 million)

OCT 5 2009 RCom's Simply Reliance Plan

After a month, RCom announced a uniform tariff plan called the 'Simply Reliance Plan' which replaced all its previous offerings. This plan, launched on October 5, 2009, was intended to provide a simple tariff option to avoid confusion in the minds of consumers on the different tariff plans provided by the company..

SWOT ANLYSIS RELIANCE COMMUNICATION

Strengths :

1. The Reputation Assessment shows that the Value Added Service (VAS)offered by RCL,Through its portal Reliance World, is rated the best amongst all suchservices.

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2. Strongest network among CDMA service providers

3. Reliance is on top in case of value added services

4. The public expressed awareness about the Promotional Offers floated byReliance in the market.

5. The Financials of the company are perceived to be good in general. Also,the people have confidence in the Future growth prospects of the company,which is an indicator of favourable Reputation

6. It should be noted that the act of making a phone call cheaper than apostcard as well as the ‘500’ scheme is viewed as a CSR Initiative by few.However, it was strictly a Promotional activity, from the perspective of thecompany, aimed at converting masses into customers, and obtain from thema monthly remuneration.

7. More than 55 million customers (July 2008). 2nd Largest cellular providerin India, supplies broadband and telephone services and other telecommunications services to both domestic and corporate customers. Thestrong subscriber base over 10million subscriber's in their kitty.

8. The company has covered the entire Indian nation with its network. Thishas underpinned its large and rising customer base

9. Other stakeholders in RELIANCE COMMUNICATION include HTC, Nokia

and Samsung, with whom they hold a strategic alliance. This means that thebusiness has access to knowledge and technology from other parts of thetelecommunications world.

10. Mobile with in the reach of common man. Affordable schemes

Weaknesses:

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1. The Billing aspect, however, has been rated the lowest and needs to beworked upon because it can be a strong influencer in the choice of a Telecom Service.

2. In addition to this, since all the Service Providers rank extremely low onCSR Initiative, RCL can tap this opportunity to raise its Reputation in theTarget Markets.

3. The study also reveals that they are perceived to be the most dishonestamongst the employees of all the Telecom Service Providers. This is furtherrepresented by the lowest rank assigned to Reliance Communications for itsCorporate Ethics & Transparency. The company, therefore, should seek tomuster more confidence and support for itself.

4. In GSM service RELIANCE COMMUNICATION is still poor.

5. Restricted towards mobility through WLL

Opportunities:

1. RCOM boomed in CDMA by their services same can be done by takingover in GSM services

2. This year the focus will be on rural applications for transportation, m-commerce, health care services, governance, education, information andlocation based services that cater to the needs of rural population.

3. RELIANCE COMMUNICATION also announced ambitious roll- out targets,including commitment to a nationwide WiMax network and the expansion ofits infrastructure base from 13,000 towers to 33,000 by the end of the year.

4. The towers would have the capability to handle all technologies like GSM, CDMA, WiMax and 3G,

Threats:

1. Internal problem of two brothers some time creating problem for Reliance communication.

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2. In GSM service Airtel is big threat for Reliance communication as well as TATA telecom is big threat in CDMA also new CDMA service of VIRGIN introducing to market.

4P’s

1.PRODUCTS

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 infocomm

(information and communication) value chain, including infrastructure and

services — for enterprises as well as individuals, applications, and consulting

RELIANCE PRODUCT Data Reliance Base Phone Reliance MobileReliance CardReliance Voucher, E-RechargeReliance PCOReliance Broad Band

2.PRICE

Price varies from product to product.

1.STD calling card

MRPTalktimeValidity Tariff (Rs/minute)

      DayNight - Reliance to Reliance

Night Reliance to Others

125 113.33 30 Rs.1.00 Rs.0.50 Rs.0.50250 226.65 30 Rs.0.90 Rs.0.25 Rs.0.50650 589.30 60 Rs.0.75 Free Rs.0.50875 793.29 60 Rs.0.75 Free Rs.0.50

Night calling time 11pm-6am

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2.GLOBAL CALLING CARDS

MRPTalktime

(Rs.)Validity (days)

Benefits  

125 113.33 45 US - Rs.4/min, Gulf - Rs.7.20/min225 203.99 60 US - Rs.4/min, Gulf - Rs.7.20/min

449 407.07 60Singapore, Malaysia & other South East Asian countries @ just Rs.3.50

575* 521.31 90US - Rs.4/min, S.E Asia - Rs.4.5/min, Gulf - Rs.7.20/min

575** 521.31 60 US/Canada and S.E Asia Rs.3.25/min699 633.73 60 Call Gulf at as low as Rs.4.99/min799 724.39 30 Call US & Canada at as low as Rs.1.99/min

1130 1024.48 90US - Rs.3.25/min, S.E Asia - Rs.4.5/min, Gulf - Rs.7.20/min

1900 1722.57 90US - Rs.1.99/min, S.E Asia - Rs.4.5/min, Gulf - Rs.6.99/min

2250 2039.89 90 Call US & Canada at as low as Rs.1.75/min

*Customers who have recharged before (eRecharge / paper recharge) before 17-07-2010 00.00 hours would be charged according to the existing tariffs till the expiry of the validity of the recharge voucher / exhaustion of the balance.

3.ROAMING CHARGES:

For GSM & CDMA

National Roaming Charges (Incoming & Outgoing)

Note - International roaming service is only available with postpaid connections.

3. PLACE

Reliance has been operating successfully in India. It has large number of

National Roaming Incoming All Incoming & Local Outgoing calls Rs.1.00 All STD Outgoing calls  Re.1.50

SMS Local Rs.1.00  National Rs.1.50  International Rs.5.00

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customer under its roof. PAN India network and town coverage 80,000 kms of optic fibre backbone. Wireless network covering over 20,000 towns and 4.5 lakh villages and counting. 15, 000 Base Transceiver Stations (BTSs) across the country.

Network with superior reliability. All this managed from our state-of-the-art national network operations centre in Mumbai.

Reliance has acquired following markets in India. Ahmedabad Bhopal Bhubaneshwar Chandigarh Chennai Delhi Dehradun Panjim Hyderabad Jaipur Kolkatta Lucknow Patna Mumbai

4.PROMOTION

Reliance communications is aggressively promoting its products on all theleading TV channels at prime times. It covers the 10 second time slots between7pm to 10pm, which are the most costliest time slots. Moreover, it is also a co-sponsor for many cricket matches played in and out of the country. Reliance hasfairly encashed the love for cricket amongst the Indians. For the recent IPLmatches it paid Rs.16 lakhs for a 10 second slot. But the response it got fromthat was overwhelming.

Reliance is tapping its every potential resource to advertise its brand. It advertises its brand through mass media set up by Reliance group itself.

Reliance communications is being advertised in the ADLABS multiplexes , onRadio- BIG FM, on T.V – DTH service by the name BIG TV, which are allsubsidiaries of Anil Dhirubhai Ambani Group.

Business Policies

I. Fair Market Practices

II. Inside Information

III. Financial, Records and Accounting integrity

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IV. External Communication

V. Work Ethics

VI. Personal Conduct

VII. Health safety environment

VIII. Quality

Future Plans of Reliance telecommunications

Reliance Communication to enter GSM services

Close on the heels of defence authorities agreeing to vacate 45 mhz quantity of spectrum, a crucial input for further growth of telecom services, Anil Ambani's Reliance Communication has approached the government seeking Spectrum in 1800 mhz frequency to start GSM services in the country.

If the application of Reliance is considered favourably, the company wouldimmediately get a pair of 5 mhz of spectrum in 1800 mhz .(a frequency for GSM operators)

The development is significant as the company has been offering CDMA-based mobile services in the country with nearly a subscriber base of 20 million. The company would have the flexibility of offering both technologies or migrating to GSM over a period of time.

Reliance Telecom, a subsidiary of Reliance Communication, has been offering GSM-based services in six circles including Kolkata, West Bengal, Madhya Pradesh, Orissa, Bihar and North-East while the parent company operates CDMA services in these circles as well as rest of India.

Although CDMA is considered a Spectrum efficient technology, worldwide GSM technology has been opted as CDMA operators are obliged to pay a hefty royalty to developers of CDMAtechnology. The royalty in India is as high as 7 per cent each on equipment as well as handset compared to a miniscule two per cent in China and nil royalty in US.

If Reliance Communication plans to start GSM services, the company would have to pump in as much as Rs 1,200 crore in two cities of Delhi and Mumbai alone to set up the network, going by the industry estimates. Going by this and

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the subscriber base, it may be difficult for the company to migrate fully on to GSM operations immediately but this could become a possibility in case of lower additional investment over and above the existingnetwork. The company has been talking to various GSM equipment vendors to look at various options

Recent Events

19-MAR-08 Reliance Communications is set to acquire a Europe-based specialty WiMax operator,

21-FEB-08 Reliance Communications, announced the acquisition of Uganda based Anupam Global Soft (U), a company holding public infrastructure provider license (PIPL) and public service provider license (PSPL) issued by Uganda Communications Commission.

The acquisition, made through a subsidiary of Reliance Communications, marks the first step in the company`s plans in the international mobile market. Under the existing licenses, Reliance Communications targets to offer mobile, fixed line, internet, national and international long distance services, in addition to WiMax and Wifi services in Uganda.

20-FEB-08 Reliance Communications, announced today a new umbrella brand `Reliance Globalcom` for all its Global initiatives. Reliance Globalcom brings under its fold a diverse portfolio of global communications business services, including global voice, managed network, carrier ethernet, and fiber capacity businesses into a single group.

05-FEB-08 Reliance Communications said on Tuesday that its arm has been granted Unified Access Service Licenses (UASL) for providing CDMA services in the Assam and North East regions.

Suggestion and Conclusion

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Indian Telecom – A Growing Consumer Need

The Indian telecom industry has experienced significan tgrowth in the recentYears and constitutes about 3 percent of the national GDP. The Indian telecom market is vibrant, price-sensitive and with high-growth potential.

According to a recent study by Gartner, the total cellular services revenue in India Is projected to grow at a Compound Annual Growth Rate (CAGR) of 18 percent From 2008-2012toexceedUSD37billion, with more than 737 million mobile Connections by 2012, growing at a CAGR of 21percent in the same period. India along with other BRIC (Brazil, Russia, India and China) countries is likely to becomehomeforover1.7 billion mobile users by 2012. As per the study by Gartner 4, in the next 4 years, cellular market penetration in India would increase to 60.7 percent from 19.8percent last year.

Indian market ripe for 3G spectrum India has a large potential 3G user base in the almost 70-million wireless subscribers, who use their handsets to access data services on the Web. With such a large captive audience for 3G data applications, the scenario is different from that of other 3G markets like Europe, where operators first rolled out high- bandwidth applications and then tried to rope in subscribers to use them.

According to the TRAI, India had about 58 million subscribers who accessed the internet on their handsets at the end of December 2007, compared with about 46.4 million at the end of October. Industry estimates place the figure for such wireless internet users at about 70 million by the end of March 2008, considering the country added over 30 million mobile users during the first three months of 2008.

The Indian Telecom Service provider industry is gearing for a revolution. The customer is driving this revolution and will see more unique and sophisticated offerings coming his way. The 3G which will pave the way for 3.5G, 3.75G and the next big thing-4G and the VAS services will keep the customer asking for more. The rural areas which have remained untapped will see an insurgence of services. Also the easing of the regulations by TRAI ,the ease of spectrum licensing, the FDI influx will make the telecom space in India a must watch in the coming years.

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BIBLIOGRAPHY

I books referred:

AUTHOR NAME: S.M.JHA TITLE: SERVICE SECTOR MANAGEMENT

II MAGZINE REFERRED:

NAME OF THE MAGZINE:

“COMPETITON SUCCESS REVIEW ”

DATE OF ISSUE: 20 TH MAY 2010, 28 TH MAY AND 15 TH JUNE

III NEWSPAPERS REFERRED:

NAME OF THE NEWSPAPER:

DNA (DNA MONEY) ECONOMIC TIMES MINT

IV SITES REFERRED:

www. telecomtalk.info

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www. zeenews.com /tags/ telecom .html www. indiatelecomnews.com www. reliancecommunications.co.in www. reliancenetconnect.co.in www. dot.gov.in /osp/Brochure/Brochure.htm

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