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Project Report On AN ANALYTICAL TUDY OF
Project Report On AN ANALYTICAL TUDY OF
Project Report On AN ANALYTICAL TUDY OF
………………………………
(Internal Guide)
DECLARATION
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INDEX
FINDINGS, CONCLUSTION
7.
AND SUGGESTION
BIBLOGRAPHY AND
8.
ANNEXURE
CHAPTER 1
INTRODUCTION
After the globalization of India economy in 1991 the telecommunication sector remained
one of the most happening sectors in India. The recent years witnesses rapid and dramatic
changes in the field of telecommunications. In the last few years more and more companies both
foreign, domestic, come into cellular service, service market and offers large number of services
to the people.
In the year of 1989, the number of cell phone users in India was zero. In the year of
1999 the number of cell phone users has gone up by 13 lakh. In the year of 2000 the number of
cell phone users has risen by one million. Indian telecom sector added a staggering 227.27
million wireless mobile users in the 12 months between March 2010 and March 2011, while the
overall teledensity has increased to 81.82% as of 30 November 2015, and the total numbers of
telephone phone users (mobile & landline) have reached 1009.46 million as of May,2015.Now
currently telephone subscriber (mobile & landline) is 1058.01 million (May 2016).
The company is reconfiguring to meet the growing demand for mobile services.It will
differentiate our mobile services from our competitors through ongoing investment in
technology, distribution and customer services, providing both a great customer experience and
competitive value.
The company is updating our retail footprint to a new Reliance JIO concept delivering a
differentiated customer experience. Extensive trials of our new concept store across all markets
have shown significant increases in both sales and customer satisfaction. The new concept will
be rolled out globally over the next upcoming years.
INDUSTRY PROFILE
India has a fast-growing mobile services market with excellent potential for the future. With
almost five million subscribers amassed in less than two years of operation, India's growth tempo
has far exceeded that of numerous other markets, such as China and Thailand, which have taken
more than five years to reach the figures India currently holds. The number of mobile phone
subscribers in the country would exceed 50 million by 2010 and cross 300 million by 2016,
according to Cellular Operators Association of India (COAI).
CHAPTER 2
INDUSTRY PROFILE
According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market, such
growth rates can be greatly attributed to the drastically falling price of mobile handsets, with
price playing a fundamental role in Indian subscriber requirements. Subscribers in certain
regions can acquire the handset at almost no cost, thanks to the mass-market stage these
technologies have reached internationally. The Indian consumer can buy a handset for $150 or
less. This should lead to increased subscribership. This market is growing at an extremely fast
pace and so is the competition between the mobile service providers.
With the presence of a number of mobile telephony services providers including market leaders
like Airtel, Reliance, Idea Cellular, BSNL etc. who are providing either of the two network
technologies such as Global System for Mobile Communications (GSM) and Code Division
Multiple Access (CDMA). In cellular service there are two main competing network
technologies: Global System for Mobile Communications (GSM) and Code Division Multiple
Access (CDMA). Understanding the difference between GSM and CDMA will allow the user to
choose the preferable network technology for his needs.
Global System for Mobile Communication (GSM) is a new digital technology developed by the
European community to create a common mobile standard around the world. It helps you
achieve higher sell capacity and better speech quality and one can enjoy crystal clear reception
on ones mobile phone. It automatically solves the problem of eavesdropping on ones calls.
Before analyzing the telecom licensing framework in India, it is imperative that one must
examine what is a license. License issued by the government is an authority, given to a person
upon certain conditions to do something which would have been illegal or wrongful otherwise.
For example, a driver’s license issued by the government, gives the authority to a person to drive
a motor vehicle. There are three main types of license fee which the government charges: (I)
initial license fee, which generally is non-refundable, (ii) annual license fee, and (iii) additional
fee for allocation of spectrum.
Licensing framework has been an integral part of India’s telecommunication law. Under the
Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any
person to establish, maintain or use a telegraph.
Code Division Multiple Access (CDMA) describes a communication channel access principle
that employs spread spectrum technology and a special coding scheme (where each transmitter is
assigned a code). It is a spread spectrum signaling, since the modulated coded signal has a much
higher bandwidth than the data being communicated. CDMA is the current name for mobile
technology and is characterized by high capacity and small cell radius. It has been used in many
communication and navigation systems, including the Global Positioning System and the
omnitracs satellite system for transportation logistics.
Indian mobile telephony market is increasing day by day and there is more to happen with
technological up gradations occurring nearly every day and the ever-increasing demand for easier and
faster connectivity, the mobile telephony market is expected to race ahead.
The National Telecom Policy was announced in 1994 which aimed at improving India's
competitiveness in the global market and provide a base for a rapid growth in exports. This
policy eventually facilitated the emergence of Internet services in India on the back of
established basic telephony communication network. This policy also paved way for the entry
of the private sector in telephone services.
The main objectives of the policy were:
To ensure telecommunication is within the reach of all, that is, to ensure availability
of telephone on demand as early as possible
To achieve universal service covering all villages, that is, enable all people to access
certain basic telecom services at affordable and reasonable prices
To ensure world-class telecom services. Remove consumer complaints, resolve
disputes and encourage public interface and provide a wide permissible range of
services to meet the demand at reasonable prices
To ensure that India emerges as a major manufacturing base and major exporter of
telecom equipment
To protect the defence and security interests of the nation.
The policy also announced a series of specific targets to be achieved by 1997 and further
recognized that to achieve these targets the private sector association and investment would be
required to bridge the resource gap.
Thus, to meet the telecom needs of the nation and to achieve international comparable
standards, the sector for manufacture of telecom equipment had been progressively relicensed
and the sub-sector for value-added services was opened up to private investment (July 1992) for
electronic mail, voice mail, data services, audio text services, video text services, video
conferencing, radio paging and cellular mobile telephone. The private sector participation in the
sector was carried out in a phased manner. Initially the private sector was allowed in the value
added services, and thereafter, it was allowed in the fixed telephone services. Subsequently,
VSAT services were liberalized for private sector participation to provide data services to
closed user groups.
Establishment of TRAI
The entry of private players necessitated independent regulation in the sector; therefore, the
TRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs, and
also to fulfil the commitments made when India joined the World Trade Organization (WTO) in
1995. The establishment of TRAI was a positive step as it separated the regulatory function
from policy-making and operation, which continued to be under the purview of the DoT2.
The functions allotted to the TRAI included:
a. To recommend the need and timing for introduction of new service provider
b. To protect the interest of customers of telecom services
c. To settle disputes between service providers
d. To recommend the terms and conditions of license to a service provider
e. To render advice to the Central government on matters relating to the development of
telecommunication technology and any other matter applicable to the telecommunication
industry in general.
NEW TELECOM POLICY 1999 (NTP 1999):-
In recognition of the fact that the entry of the private sector, which was envisaged during NTP-
94, was not satisfactory and in response to the concerns of the private operators and investors
about the viability of their business due to non realization of targeted revenues the government
decided to come up with a new telecom policy. The most important milestone and instrument of
telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy,
1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April
1999.Moreover, convergence of both markets and technologies required realignment of the
industry. To achieve India’s vision of becoming an IT superpower along with developing a
world class telecom infrastructure in the country, there was a need to develop a new telecom
policy framework. Accordingly, the NTP 1999 was framed with the following objectives and
targets:
Availability of affordable and effective communication for citizens was at the core of the
vision and goal of the new telecom policy
Provide a balance between provision of universal service to all uncovered areas,
including rural areas, and the provision of high-level services capable of meeting the
needs of the economy
Encourage development of telecommunication facilities in remote, hilly and tribal areas
of the nation
To facilitate India’s journey to becoming an IT superpower by creating a modern and
efficient telecommunication infrastructure taking into account the convergence of IT,
media, telecom and consumer electronics
Convert PCOs, wherever justified, into public telephone information centers having
multimedia capability such as ISDN services, remote database access, government and
community information systems etc.
To bring about a competitive environment in both urban and rural areas by providing
equal opportunities and level playing field for all players
Providing a thrust to build world-class manufacturing capabilities and also strengthen
research and development efforts in the country
Achieve efficiency and transparency in spectrum management
Protect the defense and security interests of the country
Enable Indian telecom companies to become global players.
In line with the above objectives, some of the specific targets of the NTP 1999 were:
Make available, telephone on demand by 2002 and achieve a tele density of 7% by 2005
and 15% by 2010
Encourage development of telecom in rural areas by developing a suitable tariff structure
so that it becomes more affordable and by also making rural communication mandatory
for all fixed service players and thus
o Achieve a rural tele density of 4% by 2010 and provide reliable transmission
o media in all rural areas.
MAJOR PLAYERS IN TELECOM INDUSTRY
Headquartered in New Delhi, India, Bharti Airtel Ltd is a leading global telecommunications
company with operations in 20 countries across Asia and Africa. The company ranks amongst
the top four mobile service providers, globally, in terms of number of subscribers. In India, the
company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed
line services, high speed DSL broadband, IPTV, DTH, enterprise services including national and
international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G
wireless services and mobile commerce.
Source: http://www.airtel.in/
2009 Bharti Airtel Introduces India’s First Android™ Phone, the HTC Magic for
Airtel Customers
2006 Bharti Airtel and Microsoft enter into a strategic partnership to offer software
and services for small and medium business (SMB) market in India
Vodafone India Ltd, headquartered in Mumbai, is the second largest mobile network operator
serving over 150 million customers in India with a presence in all telecom circles. The company
is a member of the Vodafone Group and commenced operations in 1994 when its predecessor
Hutchison Telecom acquired the cellular license for Mumbai. Vodafone India has firmly
established a strong position within the Vodafone Group too, making it the largest subscriber
base globally.
Vodafone Business Solutions serves the requirements of an enterprise. It is a total
communications offering that caters to all their voice and data, wireless and fixed-line needs.
With the advantage of global expertise, experience and the knowledge of local markets, the
business is run through the following verticals – Vodafone Global Enterprise, SME, National
Corporate and Key Accounts.
In line with the government’s objective to improve rural penetration of telephony services, the
company has also worked continuously in the last few years to establish a strong rural presence.
Vodafone has marked a growth of over 21 per cent in its rural subscriber base in FY 2011–12 to
become the second largest rural wireless operator in the country.
Source: https://www.vodafone.in
2012 Receives award from tele.net as the best 3G service operator – Telecom Operator Awards 2012
2011 Ranks No. 1 in overall customer satisfaction – Hindustan Times’ customer satisfaction National Survey
2014 Raises Rs 3,000 crore (US$ 454.1 million) via Qualified institutional placements
2011 Becomes first operator to announce the launch of Mobile Number Portability
201 Joins hands with Dell to launch Unique Bundled Broadband Programme
2
201 Partners with Gemalto and launches first Blackberry smartphone for CDMA subscribers
0 in India
200 Enters into strategic partnerships with Microsoft Team, Quippo telecom and signs
9 Memorandum of Agreement (MoU) with Hirco
CHAPTER 3
COMPANY PROFILE
COMPANY PROFILE
RELIANCE JIO
Jio's headquarters in RCP, Navi Mumbai
Type Subsidiary
Industry Telecommunications
Headquarters Navi Mumbai, Maharashtra, India
Jio Apps
Subsidiaries LYF
www.jio.com
Website
Jio also known as Reliance Jio and officially as Reliance Jio Infocomm Limited (RJIL),[is an
upcoming provider of mobile telephony, broadband services, and digital services in India..
Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited (RIL),
India’s largest private sector company, is the first telecom operator to hold pan India
Unified License.Formerly known as Infotel Broadband Services Limited (IBSL), Jio will
provide 4G services on a pan-India level using LTE technology. The telecom leg of Reliance
Industries Limited, it was incorporated in 2007 and is based in Mumbai, India.It is headquartered
in Navi Mumbai.
RJIL is setting up a pan India telecom network to provide to the highly underserviced India
market, reliable (4th generation) high speed internet connectivity, rich communication services
and various digital services on pan India basis in key domains such as education, healthcare,
security, financial services, government citizen interfaces and entertainment. RJIL aims to
provide anytime, anywhere access to innovative and empowering digital content, applications
and services, thereby propelling India into global leadership in digital economy.
RJIL is also deploying an enhanced packet core network to create futuristic high capacity
infrastructure to handle huge demand for data and voice. In addition to high speed data, the 4G
network will provide voice services from / to non-RJIL network.
RJIL holds spectrum in 1800 MHz (across 14 circles) and 2300 MHz (across 22 circles) capable
of offering fourth generation (4G) wireless services. RJIL plans to provide seamless 4G services
using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem.
Reliance Jio is part of the “Bay Of Bengal Gateway” Cable System, planned to provide
connectivity between South East Asia, South Asia and the Middle East, and also to Europe,
Africa and to the Far East Asia through interconnections with other existing and newly built
cable systems landing in India, the Middle East and Far East Asia.
RJIL’s subsidiary has been awarded with a Facility Based Operator License (“FBO License”) in
Singapore which will allow it to buy, operate and sell undersea and/or terrestrial fibre
connectivity, setup its internet point of presence, offer internet transit and peering services as
well as data and voice roaming services in Singapore.
R-Jio is also in the process of installing hundreds of monopoles, unlike the regular rooftop-
mounted telecom towers typically used by telcos, said the company executive quoted above.
Monopoles, or ground-based masts (GBMs), are expected to double up as street lights and
surveillance systems, and provide real-time monitoring of traffic and advertising opportunities.
The company, which plans to be rolled out commercial telecom service operations from January,
is currently in the testing phase for most of its offerings including 4G services, a host of mobile
phone applications and delivery of television content over its fibre optic network.
R-Jio, meanwhile, faces its share of challenges in terms of return on investment and capturing
market share. The company, according to industry analysts, is expected to spend $8-9 billion for
the 4G roll-out. The company will battle for subscribers with leading telcos such as Bharti Airtel
Ltd, Vodafone India Pvt Ltd and Idea Cellular Ltd.
The Dominant Players
Bharti Airtel --- 23% Market Share
Vodafone India --- 18% Market Share
Idea Cellular --- 15% Market Share
Reliance Communications --- 12% Market Share
BSNL --- 10% Market Share
Aircel --- 8% Market Share
TATA Infocomm --- 7% Market Share
Others --- 7% Market Share
The services were beta launched to Jio's partners and employees on 27 December 2015 on the
eve of 83rd birth anniversary of late Dhirubhai Ambani, founder of Reliance Industries.
Mr. Akash Ambani is being launched in business as a chief of strategy in Reliance JIO,involved
in day to day operations in business or Ms. Isha Ambani is involved in branding and marketing.
And the key people are Sanjay Mashruwalla (Managing Director), Jyotindra Tacker (Head of
IT).
Reliance Industries Chairman Mukesh Ambani committed an investment of Rs. 2,50,000 crores
on "Digital India" and said he expected the group's initiatives under it will create over 5,00,000
direct and indirect jobs.
"Digital India as company has seen empowers them to fulfil their aspirations.Reliance JIO has
invested over Rs. 2,50,000 crores across the Digital India pillars," Ambani said, adding: "I
estimate Reliance's 'Digital India' investments will create employment for over 5,00,000 people.
" Ambani said the launch of Digital India initiative was a momentous occasion in an information
age where digitization was changing the way one lives, learns, works and plays. It can transform
the lives of 1.2 billion Indians using the power of digital technology. And as well as "So 80
percent of the 1.3 billion Indians will have high-speed, mobile Internet. And by 2017, company
could cover 90 percent. And by 2018, all of India would be covered by this digital infrastructure,
HISTORY
In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband Services
Limited (IBSL) for Rs 4,800cr. Although unlisted, IBBL was the only firm to win broadband
spectrum in all 22 zones in India in the 4G auction that took place earlier that year.Later
continuing as RIL's telecom subsidiary, Infotel Broadband Services Limited was renamed as
Reliance Jio Infocomm Limited (RJIL) in January 2013.
Agreements:
An agreement with Ascend Telecom for their more than 4,500 towers across India.
(June 2014)
An agreement with Tower Vision for their 8,400 towers across India. (May 2014)
An agreement with ATC India for their 11,000 towers across India. (April 2014)
An agreement with Viom Networks for their 42,000 telecom towers. (March 2014)
Agreement with Bharti Airtel for a comprehensive telecom infrastructure sharing
agreement to share infrastructure created by both parties to avoid duplication of
infrastructure wherever possible. (December 2013)
A key agreement for international data connectivity with Bharti to utilise dedicated
fiber pair of Bharti’s i2i submarine cable that connects India and Singapore. (April
2013)
Agreements with Reliance Communications Limited for sharing of RCOM’s
extensive inter-city and intra-city optic fiber infrastructure of nearly 1,20,000 fiber-
pair kilometers of optic fiber and 500,000 fiber pair kilometers respectively (April
2013 / April 2014), and 45,000 towers (June 2013).
Technology:
Reliance Jio Infocomm is currently laying OFC across the country to offer Fiber to
the home/premises (FTTH). This fiber backbone will also help them to carry huge
amount of data originated from their 4G network as well as public Wi-Fi network.
Reliance Jio is deploying LTE-TDD technology for 2.3 GHz spectrum band,
acquired in 2010.
Reliance Jio will deploy LTE-FDD for 1.8 GHz spectrum, which will ultimately
paved to roll out of LTE-A network aggregation of both technology and both
spectrum band.
At present in different cities of India Reliance Jio offers Wi-Fi services. Most of
these cities are in Gujarat, where Reliance Industries also have one of the largest
petro-refinery.
Once commercially launched, Jio users can have access to Reliance
Communications’ 2G & 3G network.
OPERATIONS
In June 2015, Jio announced that it will start its operations all over the country by the end of
year. However, four months later in October 2015, the company's spokesmen sent out a press
release stating that the launch was postponed to the first quarter of the financial year 2016-2017.
Later in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public Interest
Litigation, through Prashant Bhushan, challenged the grant of pan-India licence to Jio by the
Government of India. The PIL also alleged that Jio was allowed to provide voice telephony along
with its 4G data service, by paying an additional fees of just 165.8 crore (US$25 million) which
was arbitrary and unreasonable, and contributed to a loss of 2,284.2 crore (US$340 million) to
the exchequer.
The Indian Department of Telecom (DoT), however, refuted all of CAG's claims. In its
statement, DoT explained that the rules for 3G and BWA spectrum didn't restrict BWA winners
from providing voice telephony. As a result, the PIL was revoked, and the accusations were
dismissed.
Beta Launch
The 4G services were launched internally to Jio's partners, its staff and their families on 27
December 2015. Bollywood actor Shah Rukh Khan, who is also the brand ambassador of Jio,
kickstarted the launch event which took place in Reliance Corporate Park in Navi Mumbai, along
with celebrities like musician A R Rahman, actors Ranbir Kapoor and Javed Jaffrey, and
filmmaker Rajkumar Hirani.The closed event was witnessed by more than 35000 RIL employees
some of whom were virtually connected from around 1000 locations including Dallas in the US.
PRODUCT & SERVICES
The company has a network of more than 250,000 km of fiber optic cables in the country, over
which it will be partnering with local cable operators to get broader connectivity for its
broadband services. With its multi-service operator (MSO) licence, Jio will also serve as a TV
channel distributor and will offer television-on-demand on its network.
Pan-India Spectrum
Jio owns spectrum in 800 MHz and 1,800 MHz bands in 10 and 6 circles, respectively, of the
total 22 circles in the country, and also owns pan-India licensed 2,300 MHz spectrum. The
spectrum is valid till 2035.Ahead of its digital services launch, Mukesh Ambani-led Reliance Jio
entered into a spectrum sharing deal with younger brother Anil Ambani-backed Reliance
Communications. The sharing deal is for 800 MHz band across seven circles other than the 10
circles for which Jio already owns.
FUTURE ASPECT OF JIO
Reliance jio’s vision for India is that broadband and digital services will no longer be a luxury
item ,Rather convert it into a basic necessity that can be consumed in abundance by consumers
and small businesses .The initiatives are truly aligned with the Government of India's ‘Digital
India’ vision for our nation.
• Digital Healthcare
• Affordable Devices
• Jio Drive
• Digital Education
• Digital Currency
• Digital Entertainment and social connectivity
After disrupting the industry with its free services, Reliance Jio has kept up the pressure with its
competitive data tariff plans, starting 1 April 2017. Jio has also made all voice calls—local, STD
and roaming—free. The stock market has rewarded Reliance for its aggressive entry into
the telecom sector, and the RIL counter has jumped more than 13% in a week.
Reliance Jio’s subscriber base has crossed 10 crore. The question now is: How many of these
subscribers will become paying customers? Most analysts put the number around five crore.
“Our base case scenario is that 50% of subscribers will stay,” says Mayuresh Joshi, Fund
Manager, Angel Broking. Some experts say the number could be higher. “Since Jio is offering
much higher data, retention rates could be more than 50%,” says Amar Ambani, Head of
Research, IIFL.
Reliance Jio’s average revenue per user (ARPU) may be higher than the industry average of
around Rs 150. “We are factoring in an average APRU of Rs 227 for 2018-19, assuming around
53% of Reliance JIO’s subscribers will be on the Rs 303 Jio Prime plan, while the rest will be on
the lowest-priced plan of Rs 149 per month,” says Jal Irani, Analyst, Edelweiss Financial
Services. At an ARPU of Rs 227, Jio will need 11.1 crore customers to break even in 2018-19. If
the competition intensifies, Jio will be forced to reduce prices further which will eat into its
ARPU. In such a scenario, it will require a much larger customer base to break even (see: How
Jio may impact RIL’s profits in 2018-19).
io’s successful launch has removedthe capital requirement pressure on RIL. In fact, capital
expenditure (capex) on Jio as a percentage of RIL’s overall capex, has come down drastically
and will continue to fall. While Jio accounted for 96% of RIL’s capex in 2014-15, for 2016-17,
this will be just 11%. With several refining and petrochemical projects nearing completion,
RIL’s capex on its core business will also fall. The company is also benefitting from the recent
surge in crude oil prices and it should help RIL increase its gross refining and petrochemical
margins.
Given the positives, should you consider investing in RIL, despite the recent rally? Experts say
existing investors can hold the RIL stock because there’s a possibility of a further upside. “Since
RIL is emerging from a multi-year under-performance, the upside movement may continue for
some more time. Expect another 12-15% upside from the current level, which will help Reliance
overtake TCS in terms of market cap in the medium term,” says Ambani.
Despite the dangers, stock prices of other companies have not been negatively impacted because
of long-term prospects of a more consolidated telecom sector. “Since data consumption is going
to increase exponentially, everyone will benefit in the next 3-5 year period,” say Joshi. Investors,
however, should be cautious. “Since we don’t know how long this madness will continue, it is
better not to get into it now,” adds Kohli.
Airtel, however, is likely to survive this phase and can be a good buy for the long term. “Airtel
possesses the leanest cost structure and is improving its capital efficiency,” says Pankaj Pandey,
Head of Research, ICICI Direct. Its subscriber market share is expected to 29.1% and revenue
market share to 33.3% due to its acquisition of Telenor.
How Jio may impact RIL’s profits in 2018-19
In 2016-17, RIL’s capex on Jio will be 11% of its overall Capex. It was 96% in 2014-15.
FREE VOICE & 4G DATA FROM OPERATORS BY JIO EFFECT
All offers launched by other Indian networks by the effect of Reliance Jio. Like Vodafone is
offering double 4G data, Aircel is offering free voice calling for 90 days for Delhi customers at
Rs. 148, BSNL is soon going to introduce unlimited voice calling plan exactly same as Jio at just
Rs. 149.
Previously we have shared Jio effect on another operator by Welcome Offer, and now Jio
effect is moving towards Jio happy new year offer.
Offers include free 4G SIM upgrade, 10 GB 4G internet data at price of 1 GB, Free 1GB 4G data
by giving missed call and many more offers listed in that blog post. So make sure to check out
those before it gets expired.
Another great offer is that you can get 1GB 4G data for just Rs. 51 per month till 1 year after
doing a 4G recharge of Rs. 1499 in which you will get 15 GB of 4G Internet data. This price may
vary across circles, but this plan can be compared with Reliance Jio 4G plans.
After Jio Effect, Idea is running in the track of data war, and almost every operator like Airtel,
Idea, Vodafone are running side by side with the same sets of plans.
BSNL recently launched STV 498 plan as a promotional offer for winter holiday season, and this
plan can be activated till 7th January 2017. This is an unlimited 3G data plan which is valid for
both new & old users, and valid for 14 days as usual.
An interesting fact is that there is no FUP limit on the 3G speed provided by BSNL that is there
is no speed limit, and you will get maximum 3G speed.
Moreover, you will get unlimited Data (FUP of 500 MB) for 28 days. This offer is valid only for
Delhi subscribers. Remember that you need to have at least Rs. 50 in your account balance.
RC14 Plan worth Rs. 14 offers unlimited free Local & National calls to any network in India for
1 day.
RC249 Plan worth Rs. 249 offers unlimited free Local & National calls to any network in India
for 28 days. Moreover, you will also get unlimited 2G internet data valid for 28 days.
Tata Docomo Free Internet Data & Free Calling for Postpaid Users
Tata Docomo also came into the race with free 1500 minutes voice calling and 2GB of Internet
data for their postpaid customers. They are calling it as ‘Simple is the Best’ combo plan which is
priced Rs. 299 for postpaid customers.
This plan comes with 1500 minutes of free voice calling for local & national calls. That is it for
now, but we will add more plans and offers which came after the Jio effect in this blog post.
Hope this post helped you to earn free 4G internet data for your desired telecom company.
REVIEW OF LITERATURE
The references for the literature review used for the problem in hand are as follows:
Myilswamy, Ratheesh Kumar (2013) find that the postpaid and prepaid customer prefer to use
Airtel mobile service because of the features, Rent, Tower coverage, Talk time, Advertisement
and Corporate schemes. Finally the study suggests that by paying special attention on these
factors develop the business by satisfying the consumers.
Zafar (2013) examines the impact of the mobile service attributes like call rates, service quality,
CHAPTER 4
REVIEW OF
LITERATURE
service availability; promotion and brand image of both the gender’s purchasing decision. The
result reveals that the male and female consumers have different preference in making the
purchase decision to the avail mobile service. The study also discovers that the female
consumers are tough to satisfy than the male consumers.
Chintan Shah (2012) in his study entitled “Consumer Preferences for Mobile Service Provider”
investigates the factor considered by the customers to shape their preference for the mobile
service provider. For the study 150 mobile users of Bardoli city are surveyed. The researcher
find that the service quality and brand image, service charges and plan, and network quality
plays a very important role in preferring mobile service provider.
Jegan and Sudalaiyandi (2012) in their study on the consumer preference and their satisfaction
towards the mobile phone service providers find that the call tariffs, network coverage and brand
image encourage the consumer’s preference and satisfaction.
Raj Kumar Paulrajan and Harish Rajkumar (2011) in their study examine the perception choice
in selecting the cellular mobile telecommunication service providers. The result of the study
indicates that in selecting the telecommunication service provider, communication and price has
a significant impact in choice of the consumer preference nevertheless the product quality and
availability has a significant impact in selecting the mobile telecommunication service provider.
Kim et.al (2004) states that call quality, value- added services and customer support are the
important factor to be considered by the customers while choosing a service operator.
Seth et al (2008) analyzed that there is relative importance of service quality attributes and
showed that responsiveness is the most importance dimension followed by reliability, customer
perceived network quality, assurance, convenience, empathy and tangibles.
Shanthi (2005)104 throws light on the telecommunications market of India – post privatization.
In the scenario of falling prices, hyper-competition and increasing attrition rates and the author
says that the study aims to bridge the research gaps identified as above.
A study by Jeanette Carless on and Salvador Arias (2004)10 wireless substitution is producing
significant traffic migration from wire line to wireless and helping to fuel fierce price
competition, resulting in margin squeezes for both wire line voice tariffs in organization for
Economic Cooperation and Development Countries have fallen by an average of three percent
per year between 1999 and 2003.
Maran et al. (2004)103 studied the consumer perceptions about fixed telephone lines in Chennai.
The objectives of the study was (1) to find the most influencing factor in selection of service
provider, and (2) to measure customer perception and satisfaction as regards the service
provided. The study on a sample of 550 telephone users indicated that some problems exist that
deserve the attention of the company. The company needs to bridge the gap between the services
promised and services offered. And to conclude, “Delivering service without measuring the
impact on the customer is like driving a car without a windshield”.
Liu (2002) found that the choice of a cellular phone is characterized by two attitudes: attitude
towards the mobile phone brand on one hand and attitude towards the network on the other.
Videsh Sanchar Nigam Limited (VSNL) 16th Annual Report (2002)4 India like many other
countries has adopted a gradual approach to telecom sector reform through selective privatization
and managed competition in different segments of the telecom sector. India introduced private
competition in value-added services in 1992 followed by opening up of cellular and basic
services for local area to competition. Competition was also introduced in National Long
Distance (NLD) and International Long Distance (ILD) at the start of the current decade.
Ruth M. Bolton and James H. Drew (1991) , developed a model of how customers with prior
experiences and expectations assess service performance levels, overall service quality, and
service value. The model was applied to residential customers' assessments of local telephone
service. The model was estimated with a two-stage least squares procedure through survey data.
Results indicated that residential customers' assessments of quality and value are primarily a
function of disconfirmation arising from discrepancies between anticipated and perceived
performance levels. However, perceived performance levels also were found to have an
important direct effect on quality and value assessments.
Samuvel (2002) observed that most of the respondents consider size, quality, price, instrument
servicing are an important factors for selecting the handset while majority of the respondents are
satisfied over the payment system, quality of services, coverage area and the process of attending
the complaints regarding their mobile service provider.
Nandhini (2001) examined that attitude of the respondents using cell phones was not influenced
by either education or occupation and income.
Marketing Whitebook (2005)19 explains with support of detailed data that bigger players are
close to 20% of the market each. In CDMA market, it is Reliance Infocom and Tata Teleservices
are dominating the scene whereas 73 Airtel is lead in GSM operators. Between 2003 and 2004,
the total subscriber base of the private GSM operators doubled. It rose from 12.6 million
subscribers at the end of March 2003 to 26.1 million by the end of March 2004. And yet that
100% growth rate notwithstanding, total industry revenue for 2003-04 was around Rs. 8308
crores. Compared to Rs. 6400 crores that industry grossed in 2002-2003, that is an increase of
30%.
According to a paper released by the Associated Chambers of commerce and Industry of India
(2005)21, it is stated that 30% of the new mobile subscribers added by the operators worldwide
will come from India by 2009.10% of the third generation (3G) subscribers will be from India by
2011, Indian handset segment could be between US $ 13 billion and US $ 15 billion by 2016.It
offers a great opportunity for equipment vendors to make India a manufacturing hub. Indian
infrastructure capital expenditure on cellular equipment will be between 10 to 20% of the
investment that will be made by international operators by 2015. The other proposals included
setting up of hardware manufacturing cluster parks, conforming to global standards and fiscal
incentives for telecom manufacturing among others.
Kalpana and Chinnadurai (2006) found that advertisement play a dominant role in influencing
the customers but most of the customers are of opinion that promotional strategies of cellular
companies are more sale oriented rather than customer oriented.
Haque et al (2007) suggested that price, service quality, product quality & availability, and
promotional offer play a main role during the time to choose telecommunication service
provider.
RESEARCH METHODOLOGY
MEANING OF RESEARCH METHODOLOGY
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the
study consistent of sample survey using both primary & secondary data. The primary data
has been collected with the help of questionnaire as well as personal observation book.
magazine: journals have been referred for secondary data. The questionnaire has been drafted
& presented by the researcher himself.
CHAPTER 5
RESEARCH
METHODOLOGY
METHODOLOGY
Random sampling research method was used to properly analyze and give a clear picture of
the study. The population for the study comprised 0.6% people of the western area, Nagpur.
During the 2016/17 session. This was used as sample for the study. The data obtained for the
survey was collected between January 2017 and February 2017. It was collected by issuing
out questionnaire to the respondents. Close-ended questions were adopted which provided
answers that are easy for interpretation and tabulation. A total of 60 copies of questionnaire
were distributed to housewives of the western area, Nagpur and a total of 60 were returned
giving a response rate of 100%. The returned copies of questionnaire were analyzed using
percentage and frequency count.
SOURCES OF DATA
INTRODUCTION
Generally we can collect data from two sources. primary and secondary source. Data
collected from primary source are known as primary data and data collected from secondary
source are called secondary data Primary data are also known as raw data. Data are collected
f mm the original source in a controlled or at uncontrolled environment Example of control
lied environment experimental research was certain variable are being controlled by the
researcher. On the other hand, data collected thought observation questionnaire survey in a
natural s cuing an example data obtain in an uncontrolled environment. Secondary data
obtained from secondary sources such as report- books, journals, document, magazines, the
web and more.
Primary data
Research Instrument
A structured undisguised questionnaire:
Structure undisguised questionnaires are the most commonly used in research today every
responded is posed the same question same sequence with the same opportunity of response.
In most case the purpose of the research is clearly stated in an introductory statement or is an
obvious from the question asked. This type of instrument has advantages of simplicity in
administration, tabulation and analysis; standardize data collection. objectivity; and
reliability. The disadvantage include lack of flexibility in changing question "on the fly" The
Questionnaire of our project is attached in Chapter: 6 Annexure I
Secondary data
Source of secondary data of our project is :
Internet
Magazines
Newspapers etc.
SAMPLING PROCESS
Sampling process comprises several stages:
1. Defining the population of concern.
2. Specifying a sampling frame.
3. a net of items or events possible to measure.
4. Specifying a sampling method for selecting items or events from the frame.
5. Determining the sample size. Implementing the sampling size, Sampling and data
collecting.
SAMPLING OF STUDY :-
For the purpose of the study, 0.6% of the universe was selected. Thus for purposed study, 60
people were taken.
OBJ ECTIVES OF THE STUDY
The study has been conducted to an effect of launch of jio sim on other competitor in
west Nagpur city.
The specific objectives of the study are:
To identify the benefits and satisfaction toward JIO network to their customers.
HYPOTHESIS
Hypothesis is a supposition or explanation (theory) that is provisionally accepted in order to
interpret certain events or phenomena, and to provide guidance for further investigation.
Hypothesis may be proven correct or wrong, and must be capable of refutation. If it remains
refutation by facts, it is said to be verified or corroborated.
H1: JIO is being popular and favorite network connection among customers of telecom
industry.
GENDER
GENDER No of person
MALE 39
FEMALE 21
TOTAL 60
CHAPTER 6
DATA
INTERPRETATION
1. What is your current telecom service provider?
No of person
8
18 Airtel and JIO
12 Idea and JIO
Vodafone and JIO
JIO and other cellular network
22
INTERPRETATION :- out of 60 respondent, 22 people are use Idea and JIO service
connection in their smart phone and 18 people are se Airtel and JIO services
connection in their smart phone and 12 people are use Vodafone and JIO in their
smart phone and remaining are use JIO and other cellular network in their phone.
2. Which parameter do you look for while selecting network service provider?
Parameters No of person
Call charges/ tariff 22
Network service/availability 11
Customer care services 09
Offers and schemes 14
Other reasons 04
recommended by friends of
else
No of person
INTERPRETATION :- out of 60 people, 22 people are select network service as per calling charge and tariff
plan availability and 14 people are select network service by offers and schemes offered by companies and
remaining 11, 9 and 4 people are select network service on the basic of network service and availability and
customer care services and other reason recommended by friends respectively.
3. What was your previous service provider for data uses and for calling?
No of person
5
8 16
Airtel
Idea
Vodafone
10 DoCoMo
Other
21
Factors No of person
Free data uses 16
Free calling service 11
Free and Easy available 08
All of above 25
No of person
16
Free data uses
25 Free calling service
Free and Easy available
All of above
11
8
INTERPRETATION :- out of 60 respondent, 25 respondent said that all the basic factor,
i.e. free data, free calling and easy availability was attract them towards JIO network
connection service.
5. Your current service provider was mainly used for?
Factors No of person
STD 06
Data 29
Local 21
ISD 01
Roaming 03
No of person
1 3 6
STD
Data
21
Local
ISD
29 Roaming
Preference No of person
Primary network 19
connection
Secondary network 41
connection
No of person
19
Primary network connection
Secondary network connection
41
Opinion No of person
YES 39
NO 21
No of person
21
YES
NO
39
Opinion No of person
YES 52
NO 08
No of person
YES
NO
52
Opinion No of person
YES 32
NO 09
MAY BE 19
No of person
19
YES
32 NO
MAY BE
Opinion No of person
YES 13
NO 23
MAY BE 24
No of person
13
24
YES
NO
MAY BE
23
H1: JIO is being popular and favorite network connection among customers of
telecom industry..
From Que. No. 1, out of 60 respondent, 22 people are use Idea and JIO service connection in
their smart phone and 18 people are se Airtel and JIO services connection in their smart phone
and 12 people are use Vodafone and JIO in their smart phone and remaining are use JIO and
other cellular network in their phone.
From Que. No. 4, out of 60 respondent, 25 respondent said that all the basic factor, i.e. free data,
free calling and easy availability was attract them towards JIO network connection service.
From Que. No. 6, out of 60 respondent, 41 respondent prefer JIO as a secondary network
connection and remaining 19 prefer JIO as a primary network connection.
From Que. No. 8, out of 60 Respondent, 52 respondent are satisfied with the JIO network
providers and remaining 08 people are not satisfied with the JIO network.
From Que. No. 9, Out of 60 respondent, 32 people said that they are recommend to other about
JIO network and 19 people said that may be they recommend to others and remaining 09 people
are not recommend JIO to others
From the above analysis of the data, the hypothesis H1 is accepted that JIO is being popular and
favorite network connection among customers of telecom industry .
FINDINGS
36.66% people are use Idea and JIO service connection in their smart phone and
30% people are se Airtel and JIO services connection in their smart phone and 20%
people are use Vodafone and JIO in their smart phone and remaining are use JIO
and other cellular network in their phone.
36.66% people are select network service as per calling charge and tariff plan availability
CHAPTER 7
FINDINGS, CONCLUSION
AND SUGGESTION
and 23.33% people are select network service by offers and schemes offered by companies.
35% respondent were used idea network connection for data uses and for calling
and 26.66% people were use Airtel network connection for data uses and for calling.
41% respondent said that all the basic factor, i.e. free data, free calling and easy
availability was attract them towards JIO network connection service.
48.33% respondent said that they use their current service provider mainly for data
or for internet purpose and 35% respondent said that they use their current service
connection mainly for dialing local call.
68.33% respondent prefer JIO as a secondary network connection and remaining
31.67% prefer JIO as a primary network connection.
65% said that they were stop recharging on their primary or other network
connection after start using JIO network
86.67% respondent are satisfied with the JIO network providers and remaining
13.33% people are not satisfied with the JIO network.
53.33% people said that they are recommend to other about JIO network and
31.67% people said that may be they recommend to others .
40% respondent said that may be they will come back to their older service
providers and 38.33% respondent said that they will not come to their previous
network connection.
CONCLUSION
The Indian mobile telephony market has grown at a rapid speed in the last decade. Declining the
call tariffs and favorable regulatory policies have led to a tremendous increase in the subscribers’
base. Proper identification of the Customer preferences will facilitate the favorableness towards
the various mobile service providers. Continuous research on consumers will enhance the
customer satisfaction. The present research focuses on the analytical study of launch of JIO sim
on other competitor in West Nagpur city.
The study has been carried out to find out the most preferred mobile network service provider
and the factors influencing to use the particular mobile network service. The results revealed that
JIO network connection the most preferred mobile network service providers after launch in the
market. Service quality, Value added services and customer care service are the most influencing
factors in the selection of a particular mobile network service provider. If these suggestions are
considered by the respective mobile network service providers and it would certainly help to
improve the service quality of the mobile network service providers and also it improves the
level of satisfaction of the mobile network users.
SUGGESTIONS
It is found from the study that the majority of the respondents have given top preference to JIO
as a secondary network connection. Hence it is suggested that the other service providers (IDEA
Airtel, BSNL, Vodafone, Tata, and Aircel) have to focus on improving their service quality,
responsiveness, attractive offers, customer care service and impactful advertisement in order to
widen their subscriber’s base and capture more customers and market share.
It is found from the study that the majority of the respondents have given top preference to the
service quality. Service quality of the network plays a vital role. Hence it is suggested that the
operators have to maintain proper service quality in the call connectivity, Fulfilling their
expectation, value added service offered by them including mobile data, caller tune, dry run,
playback etc. Especially special attention must be given for providing on time customer care
connectivity which may save customer time and able to process their request by the service
providers on a need basis.
REFERENCES
BOOKS:
Bernard J. T. Mallinder. Specification Methodology Applied to the GSM System. In Eurocon
88, June 2005.
Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal Communication
Services. IEEE Personal Communications. 1(1), 1994.
Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE
Communications Magazine. April 1993.
C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors, Cellular
Radio Systems, Artech House, Boston, 1993.
Robert G. Winch. Telecommunication Transmission Systems. McGrawHill New York, 1993
JOURNALS:
1.
CHAPTER 8
BIBLOGRAPHY AND
ANNEXURE
2. Dinesh Kumar Pandiya, Brajesh Kumar & Mazahidul Haque Choudhury, “A Study of
Customer satisfaction on Telecom Service Providers”, Indian Journal of Research, Volume
3, Issue 5, May 2014, Pp 57 – 60.
Ravi Shanker (2007) "Services Marketing: The Indian Perspective", Excel Books, New Delhi.
Donald S. Tull & Del I. Hawkins (2008) "Marketing Research: Measurement & Methods"
(Twelfth Edition), Prentice Hall of India Pvt. Ltd., New Delhi.
Jim Blythe (2002) "The Essence of Consumer Behaviour", Pearson Education Inc., Singapore.
Berry, T.E (2001) "Marketing: An Integrated Approach", CBS International Editors, Japan
Journal of Management Research Indian Journal of Marketing The ICFAI Journals of Services
Marketing
Web Resources :
www.google.com
www.wikipedia.com
www.hindubusinessline.com
www.trai.gov.in
www,jio.com
www.moneycontrol.com
www.vodafone.in
www.airtel.in
www.rcom.co.in
www.bsnl.co.in
www.tatateleservices.com
www.ideacellular.com
www.mtsgsm.com
www.virgin.com
www.wirelessintelligence.com
ANNEXURE
Questionnaire
NAME- ___________________
GENDER- ________
Parameters No of person
Call charges/ tariff
Network service/availability
Customer care services
Offers and schemes
Other reasons
recommended by friends of
else
3. What was your previous service provider for data uses and for calling?
Service providers No of person
Airtel
Idea
Vodafone
DoCoMo
Other
Preference No of person
Primary network
connection
Secondary network
connection
7. Did you stopped recharging on your primary network connection after Start
using of JIO network?
Opinion No of person
YES
NO
Opinion No of person
YES
NO
MAY BE
10. Do you wish to come back to Parent service provider , from migrated to
Reliance JIO?
Opinion No of person
YES
NO
MAY BE