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STRUCTURED INDUSTRIAL ANALYSIS - Project Report
STRUCTURED INDUSTRIAL ANALYSIS - Project Report
STRUCTURED INDUSTRIAL ANALYSIS - Project Report
TURED
INDUS
TRY
ANALY
SIS
REPORT
ON
TELECO
M
INDUSTR
Submitted To: Submitted By: Group-2
Dr. Bidyanand Jha
Y
Shipra Maitra (P- 046)
Shubhi Mishra (P- 048)
Sumit Pradhan (P-051)
Swati Dubey (P-053)
INDUSTRY:
a. Definition: The telecommunication sector is made up of companies that make
communication possible on a global scale, whether it is through the phone or the
Internet, through airwaves or cables, through wires or wirelessly. These companies
created the infrastructure that allows data in words, voice, audio or video to be sent
anywhere in the world.
b. Classification of Industries by Government:
The telecommunications sector consists of three basic sub-sectors: telecom equipment
(the largest), telecom services (next largest) and wireless communication.
Wired Industry (Fixed line)
Wireless Industry (Mobile)
Broadband Industry (Internet)
Voice Services
Data Services
c. Selected Industry for your project:
We have selected Telecom Industry for our project for analysis. Telecom industry comes
under Communication industry.
g. Role and highlights of each trade bodies for the telecom industry:
The Department of telecommunications (Government of India) is the main governing
body for the industry.
Telephone Regulatory Authority of India (TRAI) assists the Government of India (GoI)
to take timely decisions and introduce new technologies in the country.
Following are the government bodies which formulate various policies and pass laws to
regulate the telecom industry in India -
Wireless Planning and Coordination (WPC) – Handles spectrum allocation and
management
Department of Telecommunications – DoT- Licensee and frequency management
for telecom
Telecom Commission – Exclusive policy making body of DoT
And following are the independent bodies which undertake various research activities
and monitor the quality of service provided in the Indian telecom industry. They also
provide various recommendations to improve the status of telecom operations in India.
Telecom Regulatory Authority of India (TRAI) - TRAI's mission is to create and
nurture conditions for growth of telecommunications in the country in a manner
and at a pace which will enable India to play a leading role in emerging global
information society.
One of the main objectives of TRAI is to provide a fair and transparent policy
environment which promotes a level playing field and facilitates fair competition.
Telecom Disputes settlement and Appellate Tribunal (TDSAT) - TDSAT was set
up to adjudicate disputes and dispose of appeals with a view to protect the interests
of service providers and consumers of the telecom sector and to promote and
ensure orderly growth of the telecom sector.
ECONOMIC FORCES –
a. Demand Estimates:
Second largest subscriber base - India has the second largest telecom network in the
world.
Total number of internet subscribers stood at 560.01 million, at the end of September
2018
India ranks second in terms of number of telecommunication subscriptions, internet
subscribers and app downloads globally.
As per Union Budget 2018-19, Government of India is expecting a 58 per cent increase to
Rs 48,661.42 crore (US$ 7.52 billion) in telecom sector revenue.
Total subscriber base in the country stood at 1,192.04 million, at the end of October
2018.
Total number of SIM connections is expected to reach 1.4 billion by 2020 from the
current 1.1 billion.
India is expected to have over 180 million smartphones by 2019, contributing around
13.5 per cent to the global smartphone market, based on rising affordability and better
availability of data services among other factors.
According to a report by leading research firm Market Research Store, the Indian
telecommunication services market will likely grow by 10.3 per cent year-on-year to
reach US$ 103.9 billion by 2020.
The number of internet subscribers in the country is expected to double by 2021 to 829
million. Overall IP traffic is expected to grow 4-fold at a CAGR of 30 per cent by 2021.
Total telephone subscriber base and tele-density reached 1,192.04 million and 91.17 per
cent, respectively, at the end of October 2018.
b. Supply Estimates:
As of 2017-2018, the wireless segment (98.10 per cent of total telephone subscriptions)
dominated the market.
The number of internet subscribers in the country increased at a CAGR of 42.69 per cent
during FY06-FY18 to reach 493.96 million in 2017-18. Internet subscriptions in India
surpassed the 500-million mark by the end of June 2018. At the end of September 2018,
internet subscriptions reached 560.01 million.
The number of internet subscribers in the country is expected to double by 2021 to 829
million. Overall IP traffic is expected to grow 4-fold at a CAGR of 30 per cent by 2021.
Gross revenue of the telecom sector stood at Rs 116,228 crore (US$ 16.56 billion)
between April-September 2018.
c. Supply Constraints:
High debt burden and stress on profitability:
The telecom industry at this point of time has a debt burden of close to INR5 lakh
crores in its quest to provide state of the art infrastructure and buy spectrum. The
current interest coverage ratio is less than one which means the industry’s Earnings
before Interest, Taxes, Depreciation and Amortisation (EBITDA) is insufficient to
repay debt.
Reclassification of Common Infrastructure
There is a need to reduce the burden on infrastructure providers, there is a need to re-
classify/ redefine “common Telecom/Digital Infrastructure” to include Antenna,
Feeder Cable, Node B, RAN and Transmission System, combiners, splitters among
others.
Allocation of E band (frequency range of 71 to 88 GHs bands) and V Bands
(frequency range of 6 to 71 GHs bands)
COMPANY DETAILS –
i. Pricing strategies:
Jio: It has used loss leader strategy to enter in the competitive market and be the
competition to the existing players in the market. Investment was around 2.5 lakh
crore. The entry and exit barrier were strong.
Jio has implemented growth hacking strategy algorithm:
1. Acquisition
2. Activation
3. Retention
4. Referral
5. Revenue
Airtel: It has used the Competitive Strategy to compete with Reliance Jio. It has
#AirtelThanks which targets the premium customers and offer them a brilliant
network experience.
Vodafone India: in order to compete with Competitive strategy to compete with the
prices of Jio.
INTERPRETATION: Jio has implemented the blue ocean strategy by competing
over free data services, rather than focusing on voice calls which can be termed
as the Red ocean.
COMPETITION –
COMPANY PARAMETER
AIRTEL Voice calls
JIO Data services
VODAFONE IDEA Voice calls
BSNL Voice calls
Price –
BRAND STRATEGIES:
a. Identification of Brand Elements:
There are 6 criteria on the basis of which brand elements are decided-
Memorability
Meaningfulness
Likability
Transferability
Adaptability
Protectability
JIO-
Brand Name/ Identity- The company name JIO means to live which promotes
the idea live your life easily now
Logo/ Symbol- used all lively colors to make it likable as well as adaptable.
Slogan- “JIO Digital Life”
Brand Extension- 4G broadband, lyf smartphones, Jio-fi, Jio apps, Jio fibre
URL- www.jio.com
AIRTEL
Brand Name/ Identity- The name is inspired by by SingTel (Singapore
Telecommunication Ltd.) which is a major investor in “airtel”. It is formed by two
words “Air- Tel”
Logo/ Symbol-
Vodafone Idea-
Brand Name/ Identity- The joint venture has not changed the name of the
company so as the customers don’t get confused.
Logo/ Symbol-
BSNL-
Brand Name/ Identity- Bharat Sanchar Nigam Ltd.
Logo/ Symbol-
Module – 2
1. CMD of the selected companies:
COMPANY CMD
Reliance Jio Mr.Sanjay Mashruwala
Vodafone Idea Mr. Ravinder Takkar
Bharti Airtel Mr. Gopal Vittal
BSNL Shri Anupam Shrivastav
Idea:
Idea: Taught children
Angrezi Sikhao English(grammer, syntax)
BSNL
4. Leadership Traits:
A. Mukesh D. Ambani- Courageous, futuristic, Decision - making capability
He believes that courage is necessary for every walk of life. You need to
conquer fear to discover the hidden hero within you. With courage, self-belief,
and the ‘can do spirit’ you can overcome any adversity. Courage is that power
which makes fear, fear.
Empathize, care and share. Wealth of your heart
Absolute faith in technology and talent- when top technology and talent work-
together they produce unbeatable creativity, innovation and invention
He believes in the coming decades the world will transition from fossil fuels to
clean, green and renewable energy and wants reliance to become a leading
power of clean and affordable energy to India.
He wants jio to digitally re-invent with artificial intelligence and block chain
all sectors of the Indian economy whether it is entertainment, financial
services, commerce, manufacturing, agriculture, education or healthcare. He
wants jio to be the first company to transform India in each one of these
sectors.
B. Virender Takkar- Good communicator, team builder, empathy, people skills
During the merger negotiations he played a significant role in ensuring
Vodafone got the CEO's position. Idea settled for CFO, while getting Birla to
chair the merged company's board.
According to a former colleague, Mafalda Alves Dias, who had worked with
Takkar at Vodafone Partner Markets in London, "he's a bright professional
with a very intelligent strategic mind. It's very easy to work with him as he's
eager to help his team improve and grow."
“As CEO of Vodafone Partner Markets, he had his team spread all around the
world literally and somehow he always managed to be present, whether it was
through a phone call, video-conferencing or even visit."
https://www.rediff.com/business/report/technology-ravinder-takkar-takes-
charge-of-vodafone-idea/20190830.htm
Airtel-
Total contribution towards CSR and community development initiatives was Rs
495.65 million in FY 2018-2019
Number of rural customers added to their network was 149.14 million in FY 2018-
2019.
Total man hours of volunteering work done by employees towards community
development was 8312 hrs.
Airtel contributed 94.78 Mn to Bharti Foundation towards furtherance of its
objectives, setting up of Satya Bharti University.
Vodafone Idea-
As both the companies have merged last year so there hasn’t been any significant
CSR activity reported in the name of Vodafone Idea Ltd.
Airtel-
Network Infrastructure:
Auto shutdown in non- peak hours.
Low Power consuming BTS.
Power factor correction.
Real time energy monitoring.
Hybrid battery bank solutions Free Cooling Units (FCU) & Natural Cooling
Units (NCU).
Result-
7,678.58 KL of diesel saved since FY 2017-18 in our own mobile network
infrastructure.
Reduction in network emission intensity for mobile (carbon emissions per
terabyte) from FY 2017-18.
Data Centres:
Excess load surrender
Equipment optimization and utilization
Cooling optimization Cold Aisle Containment
Diesel usage optimization Hot spot rectification
Power utilisation efficiency correction
Improved Power Usage Efficiency
ISO 14001:2015 implemented to enhance environmental performance
Result:
7% Reduction in CO2 emission per rack from FY 2017-18.
5000 MWH Energy saved in our data centres.
Purpose 1-
Increased consumerism and material usage putting pressure on the environment
Process-
RIL’s polyester plants are studying the possibility of chemical recycling to convert PET
bottles to other applications, namely r-PET, r-Filament yarns and r-fibre. Parallelly, RIL
has also conducted plastic awareness sessions in all its polyester sites, for the employees,
their families and the society. These fibres play an important role in textile, apparel,
nonwoven and filling applications. These sessions focused on right use, storage, disposal
and reuse of plastics in everyday life.
Purpose 2-
Committing to smart and sustainable ways of meeting growing mobility needs
Process-
The digital ecosystem created by Digital Services has enabled new forms of
communication. Video conferencing has helped to reduce travel time and resulted in agile
decision making, which in turn, positively impacts business productivity. For households,
video calling has become a very common way of communication, thereby reducing the
geographical boundary. The reduction in travel is also contributing to lower carbon
footprints of operations.
Module-3
1. Controlling ministry in Govt. of India –
Ministry of communications
Dept. of Telecommunications
Dept. of Post
Headed by – Shri. Ravi Shankar Prasad
2. No. and name of regulatory body for the selected Industry and
companies – There is 2 regulatory body as per telecom regulatory authority of
India act, 1997 for telecom industry in India which is TRAI (Telecom Regulatory
Authority of India).
TDSAT (Telecom Disputes Settlement and Appellate Tribunal)
One of the main objectives of TRAI is to provide a fair and transparent policy
environment which promotes a level playing field and facilitates fair competition.
TDSAT:
The Telecom Dispute Settlement Appellate Tribunal (Tribunal) is established under
section 14 of the Act. It is the sole dispute resolution body in the communication sector.
It can adjudicate upon any dispute between:
The TRAI also has to discharge certain functions apart from making
recommendations to the Government:
Reliance JIO:
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed
the to act against Reliance JIO for not adhering to the seven-day limit of reporting
the Welcome Offer launched from September 5, 2016 which offered free voice,
data and messages for three months, an order which could lead to a levy of a
penalty of up to ₹ 2 lakh on the new entrant.
The Reserve Bank has imposed a penalty of ₹ 5 crore on Airtel Payments Bank
for violating operating guidelines and Know Your Customer (KYC) norms.
Vodafone-Idea:
In 2013-14, Vodafone and Idea was charged with 21,131 and 10,450 MNP
violation cases respectively.
Around 20,000 crores have to be discharged to the government for settling out
dispute relating to licensing and other spectrum fees.
BSNL:
BSNL accounted for the highest number of violations related to mobile number
portability (MNP) norms in the last three financial years (21,970 cases in 2013-14)
Telcos have to decentralize the purchasing and decision power, both internally and
externally, because of the essential agile reconfiguration of the cloud.
With the availability of new technologies, the variety and quality of services from
telecom companies and internet service providers (ISP) are increasing, profit
margins are decreasing, and the lines between telecom companies and technology
vendors are blurring.
Sources: http://goidirectory.nic.in/index.php
http://compete.org.in/tapping-into-the-evolving-telecom-sector/
https://www.coai.com/indian-telecom-infocentre/telecom-infrastructurenetworks
https://www.airtel.in/
http://dot.gov.in/#
https://discover.vodafone.in/about-us/vodafone-foundation
https://www.ril.com/DownloadFiles/CorporateAnnouncements/AR_14981_RELIANCE_2018_2019_19072019205801.pdf
https://main.trai.gov.in/