STRUCTURED INDUSTRIAL ANALYSIS - Project Report

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STRUC

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.

d. Rationale behind the selection of the industry: We have selected the


Telecom Industry due to the following reasons-
 To understand the changing dynamics of the telecom sector after the entry of Jio.
 To understand the forced merger of Vodafone and idea.
 To realize how digital India in connection with telecom industry is changing the
face of the country

e. Capacity of the Industry:


It is said mentioned in the one of the government website that total number of subscriber
Identity Module (SIM) connections is expected to reach 1.4 billion by 2020 from 1.1
billion in 2017. It means the service providers of the telecom industry in India has the
capacity of serving the 1.4 billion users by 2020.
f. Identification of Professional trade bodies of the selected
industry:
Regulatory body relevant to my industry:

 TRAI: Telecom Regulatory Authority of India( TRAI) Act, 1997


Established in 1997
With the entry of private sector in the provision of telecommunication services a need
was felt to have an independent regulatory body. The above requirement was indicated in
the guidelines issued for entry of private sector in basic telecom service. Accordingly,
Telecom Regulatory Authority of India (TRAI) was established in the year 1997 in
pursuance of TRAI (Ordinance) 1997, which was later replaced by an Act of Parliament,
to regulate the telecommunication services.

 TDSAT: Telecom Dispute Settlement and Appellate Tribunal

Established in May, 2000


An Appellate Tribunal, known as Telecom Disputes Settlement and Appellate Tribunal
(TDSAT), was established by the Central Government to adjudicate any dispute between
a licensor and a licensee; between two or more service providers; between a service
provider and a group of consumers; and to hear and dispose of appeal against any
direction, decision or order of the Telecom Regulatory Authority of India. The Tribunal,
therefore, exercise both original and appellate jurisdiction.

 ACTO: Association of Competitive Telecom Operators


ACTO is an industry association body formed by several leading non-integrated long
distance carriers that predominately provide service to the Enterprise market segment. It
is committed to further India’s pro-competitive policies and to partner closely with DoT
and Regulator to enhance the stakeholder’s engagement with the specific needs of the
enterprise segment.

 COAI: Cellular Operators Association of India


COAI was constituted in 1995 as a registered, non-governmental society. The
Association is dedicated to the advancement of modern communication through the
establishment of world-class mobile infrastructure, products and services and to
delivering the benefits of innovative and affordable mobile communication services to
the people of India.
Over the years COAI has emerged as the official voice for the Indian telecom industry
and interacts directly with Ministries, Policy Makers, Regulators, Financial Institutions
and Technical Bodies. It provides a forum for discussion and exchange of ideas between
these bodies and the Service Providers, who share a common interest in the development
of mobile telephony in the country.

 IAMAI: Internet Service Providers Association of India


The Internet & Mobile Association of India (IAMAI) is not-for-profit industry body
registered under the Societies Act, 1896. Its mandate is to expand and enhance the online
and mobile value added services sectors. It is dedicated to presenting a unified voice of
the businesses it represents to the government, investors, consumers and other
stakeholders.

 ISPAI: Internet Service Providers Association of India


The Internet Service Providers Association of India (ISPAI) was set up in 1998 with a
mission to 'Promote Internet for the benefit of all'. ISPAI is the collective voice of the ISP
fraternity and by extension the entire Internet community. Over the years ISPAI has
helped influence, shape and mould the telecom policies, so that ISPs and entrepreneurs in
the business of Internet can setup and grow their services in an environment that is
supportive and enabling.
 BIF: Broadband India Forum
Registered as IPTV Society, its brand - BIF was formed in October 2015 and is a fairly
nascent but dedicated Forum with participation from all stake holders, including
Technology Providers, Telecom Operators, Internet Service Providers, Value-Added
Service Providers, Satellite Operators and service providers, MSO, Broadcasters, startups
and professional entities as well as seasoned Industry professionals who are familiar with
different technologies, operations, regulations and policies.

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)

 Uniform and seamless implementation of Right of Way Rules across the


country

d. Factors affecting demand of the telecom industry: Following are the


factors which affects the demand -
 Income levels- the increase and decrease in the income levels of the people
because of inflation or deflation or any other economic fluctuation will affect the
demand of the industry as a whole.

 Government policies- if the country is at war or facing a political unrest with


another country then the government might bring some policy changes which will
affect the demand of the industry. For example- Demonetization in India

 Technological changes- introduction of artificial intelligence and technology


advancement will affect the demand of the industry

 COMPANY DETAILS –

a. List of Players in the selected Industry -


1. Vodafone Idea Ltd
2. Reliance Jio Ltd
3. Bharti Airtel
4. BSNL
b. Identify top 2 and bottom 2 players in the Industry:
Top 2 players based on the subscriber based:
1. Vodafone Idea Ltd
2. Bharti Airtel
Bottom 2 players
1. Reliance Jio Infocomm Ltd
2. BSNL
c. Geographical Expansion of the identified players:
At present, there are 22 Telecom Circles or Service Areas. They are broken down into
4 groups: 'metro circles' and then 'A', 'B', and 'C' circles.
The 'metro' circles cover very dense population centers in the very largest Indian
cities: Delhi, Kolkata, and Mumbai.
The 'A', 'B', and 'C' circles cover various geographic territories of varying population
sizes. 'A' circles are the largest in terms of population coverage. 'C' circles contain the
smallest population.

S No. Service Provider Number of Service Areas SAs


SAs
1 Vodafone Idea Ltd 22 All India
2 Bharti Airtel 22 All India
3 Reliance Jio Infocomm 22 All India
Ltd
4 BSNL 22 All India (except Delhi & Mumbai)
d. Capacity (Production) and the respective market share of each
selected players:
Telecom industry is currently providing services to 1.2 billion customers and estimated to
provide services to 1.4 billion customers by 2020

S No. Service Provider Market Share


1 Vodafone Idea Ltd 34 %
2 Bharti Airtel 28 %
3 Reliance Jio 27 %
4 BSNL 10

e. Classification of Leaders, challengers, followers, nichers from the


selected companies: On the basis of revenue for FY 2018-2019, we have
classified the following:
 Leader: Jio- Rs 11679 Cr
 Challenger: Airtel- Rs 8,078 Cr
 Follower: Vodafone Idea- Rs 37823.6 Cr
 Nichers: Bsnl- 19,308 Cr

f. Positioning strategy of the selected company:


Airtel: Positioned itself as the “most preferred” network for smartphone users
 Spends nearly 45% of its ad budgets on digital alone
 Did engage with the customers by launching marketing campaigns
Jio: Positioned itself as the “most affordable” mobile service and data provider. It is
helping the country to transform in a digital and Tech Savvy nation by providing
affordable mobile service and data.
 Acted as a “technology company” rather than as “telecom operator”

Vodafone Idea: Positioned itself as a merger which draws synergies with a


nationwide network. Vodafone Idea’s strategy to retain its pole position in the
industry revolves around simplified tariff plans, faster integration and strengthening
its balance sheet.
g. Points of differentiation:
JIO:
 Affordable 4G LTE mobile network with innovative technology along with
VoLTE
 Has a pan India presence with its operations in more than 22 circles
 Jio apps offer movies, games, shopping, messenger
 LYF smartphones at affordable costs
Airtel:
 Top telecom brand in India with a huge customer base of over 260 million
subscribers
 Has great VAS( value Added Services) such as Airtel Money, online recharges,
bill payments
 Has international subscribers in Srilanka, Bangladesh, Africa
Vodafone Idea
 Now a merged entity
 Strong advertising with Vodafone ZooZoos
 Has a presence in 150+ countries
 Diverse services like payment options (m-pesa), mHealth services

COMPANY PRODUCT PRICE PLACE PROMOTION


Retail stores,  Marketing
Mobile MyPlan convenient stores, campaign
AIRTEL Services: Voice service to roadside stalls like “Har Ek
and Data customer to friend
Services choose their Zaroori hota
plan and pay he’ and ‘Jo
price Tera Hain
Prepaid, Wo Mera
postpaid, Hain’
Telemedia  Public
Digital TV relations like
services sponsoring
events- girl
awareness
campaign

JIO Data centric Penetration Present across 22 Partnered with


plans, pricing telecom sectors in organizations like
Jiophone, 4G the country BT group,
internet 18000 cities and 2 Millicom, Orange
services, free lakh villages S.A. , Samsung for
hotspots, rolling out LTE
Jio app advanced Pro and
offering 5G
movies, games, Released Pokemon
shopping Go
messenger Brand ambassador:
Shahrukh Khan and
Amitabh Bachchan
VODAFONE Prepaid, Strong  Advertising-
IDEA Postpaid, Vodafone: distribution Through TV,
Vodafone Price bundling network- print,
branded customer care billboards,
phones, centre and shops online,
Smartphone  Through
Vodafone
Idea: ZooZoos
Prepaid,
Postpaid Idea: online and  Promote
offline Idea Stores their brand
Provides 2G, Idea: in all major by using
3G, 4G and Prepaid metros tagline “No
LTE internet services as ullu
service low as Rs.100, banaoing
at economical  Brand
price post-paid Ambassador:
plans from as Abhishek
low as ₹199; Bachchan
PLANS:
Ultimate plan,
per minute
plan, per
second plan
and combo
plan are
integrated with
post-paid plans
VAS: dialer
tones, Apps,
Sports service,
Bollywood
news
BSNL BSNL Presence in TV,
Landline, Low pricing,  24 telecom print, online,
WLL-CDMA offer lifetime circles, 4 hoarding for
Telephone cards, specialized advertising
Services( wirel units, 6
ess service in project Tagline:
mobile and circles “Connecting India,
fixed lines),  Call Faster.”
Broadband centers in
each and
every city
to solve
customer
problems

h. Pricing techniques and Price range:

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 –

a. Nature of competition: Oligopoly


In fact, in order to quantify the increase in market concentration, we calculated the
Herfindahl-Hirschman Index (HHI) for the telecom market before and after the entry
of Jio using TRAI data. 
In a scale of 0 to 10,000 with a higher score implying higher concentration, we found
out that HHI increased by almost 1000 points from 1543 to 2490 between June 2016
and June 2017. To put matters in perspective, the US Department of Justice considers
a market with a HHI of less than 1500 to be competitive, one between 1500 to 2500 to
be moderately concentrated and one beyond 2500 to be highly concentrated. 
This rise in HHI has been a result of a spate of mergers that have taken place since
Jio’s entry. Bharti Airtel has acquired the telecommunication services of Tata, Telenor
and Videocon while Vodafone is in its final stages of merger talks with Idea. After the
merger, Airtel will lose its two-decade-long held position as the industry leader since
the Vodafone-Idea combine will command a subscriber base of 400 million as
compared to Airtel’s 320 million. 
b. Characteristics of competitive rivalry among the selected player:
Parameters:

COMPANY PARAMETER
AIRTEL Voice calls
JIO Data services
VODAFONE IDEA Voice calls
BSNL Voice calls

c. Economic indicators of competition: Price Fluctuations- fluctuations in the


prices of the recharge plans of internet, broadband, d2h will affect the demand of the
service -
 Influencers
 Advertisements
Key factors Jio Airtel Vodafone Idea BSNL
Min: Rs 9
Min: Rs 10 Min: Rs. 10 Max: Rs.5000 Min: Rs 22
Price Max: Rs 9999 Max: Rs 6999 Idea: Max: Rs 5000
Min: Rs. 10
Max: Rs.
14160
Promotion Free Sims, Airtel 4G
Price Bundling, challenge, Supernet -
IPL sponsored AirtelThanks
by JIO
Product
Jiophones, Airtel payment Data plans, Voice calls
JioFi, JioTv, bank, voice calls plan plan
JioMoney Airtel Wynk
Music
Geographical Vodafone in 8
expansion 4G in 22 Zones 4G in 15 Zones zones
4G in 10 zones
d. Identification of key factors of the competition among the selected
players:

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-

 Slogan- “Sab kuch try karo, fir sahi chuno”


 Brand Extension: Airtel pre-paid, Airtel post-paid, value added services, fixed
line and telephony, Broadband and fixed-line internet services, digital television
and IPTV, DTH operator.
 URL- www.airtel.in

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-

 Slogan: Stronger Together. For you.


 Brand Extension: Fixed line and mobile telephony, Internet services, Digital
television, Vodafone branded handsets
 URL- www.vodafoneidea.com

BSNL-
 Brand Name/ Identity- Bharat Sanchar Nigam Ltd.
 Logo/ Symbol-

 Slogan- Connecting India


 URL- www.bsnl.co.in

b. Brand Value of the companies:


There are 3 ways for brand valuation-
 Cost based brand valuation
 Market based brand valuation
 Income approach to brand valuation
Brand Value means that the company have an apparent ability to provide
something not readily available, it’s scarce, in short supply.
Every brand has a feature, functionality, app, or user experience that nobody else
at that point could offer which makes the brand valuable.
Market research firm Kantar Milward Brown followed the BrandZ valuation
methodology
Step 1: Calculate Financial Value-
i. Corporate Earnings * Attribution Rate = Branded Earnings
ii. Branded Earnings * Brand Multiple = Financial Value
Step 2: Calculate Brand Contribution-
This is calculated by an in-depth quantitative consumer research which focuses on
3 aspects that make people buy more and pay more for brands i.e. being
meaningful, different, salient.
Step 3: Calculate Brand Value-
Financial Value * Brand Contribution = Brand Value
Output-
 Jio: Rs 4.1 billion
 Airtel: Rs 10.23 billion
 Vodafone idea: Rs 21.32 billion
 BSNL: Rs 560 million

c. Brand Equity of the companies: It is based on -


 Knowledge metrics- surveys, focus groups, search volume for your brand.
 Financial metrics- price premium over competition, CLV, rate of sustained
growth
 Preference metrics- Accessibility, convenience, brand value

d. Online presence and initiatives of the players:


Company Facebook Twitter Youtube
Airtel Page Name Airtel India Airtel India Airtelindia
Joined August 2010 August 2010 August 2010
Followers 10,691,592  2.5 million 728k
Initiatives Initiated Delhi Delhi Half Marathon,
half marathon travel without fear of
bill shock
Reliance Jio Page Name Jio Reliance Jio Jio
Founded November 2012 November 2012 August 2015
Followers 2,465,251 474 k 1.48 million
Initiatives Jiocinema, JioTV,
Jio money
Vodafone Page Name Vodafone Vodafone Vodafone
Zoozoos
Founded April 2009 July 2009 April 2009
Followers 18,907,502 781 k 747 k
Initiatives No charges to other Vodafone Play
network, Vodafone app –
Play app – entertainment
entertainment at no at no cost
cost
Idea Page Name Idea Idea Idea
Founded November 2009 June 2009 May 2008
Followers 7.6 million 355 k 716 k
Initiatives Extra Data No charges for another
network
BSNL Page Name BSNL India BSNL India BSNL Social
Media
Founded December 2013 December 2013 November
2015
Followers 542,542 150 k 6.23k
Initiatives Making India
Digital

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

2. CEO of the selected companies:


TOP 3
Reliance Jio Mr. Mukesh Ambani
Vodafone Idea Mr. Takkar
Bharti Airtel Mr. Gopal Vittal
BSNL Mr. Pravin Kumar Purwar

3. Brief Profile and Career of CMD and CEO:

COMPANY CSR ACTIVITY RESULTS


Airtel Bharti Foundation 40,934 students enrolled in
Provides free education to schools
underprivileged children
while focusing on girl child
JIO  20 lakh farmers and
Rural Transformation, fisher folk enhanced
environment, health with support of
Reliance
 17,000 people
supported to reach
nutrition self-
sufficiency
 675 cataract surgeries
supported under eye
care services

Vodafone Idea Vodafone: Vodafone: Empower 50,000


RISE: Rural women’s women entrepreneurs
Initiative for Self Sustained
Enterprises Aims to enable 100,000 rural
women and youth in
Digital Literacy becoming skilled in internet
usage

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

C. Gopal Vittal- Motivator, good communicator


 According to an article in telecomtalk.info Mr. Vittal address his employees
for working hard and motivated them in these tough times.
 https://telecomtalk.info/airtel-gopal-vittal-employees-addressing/181014/

5. Philosophy of Social Inclusion of the selected companies-


Reliance JIO-

 Direct engagement with the community- To generate meaningful change, which is


sustainable, Reliance directly engages with the community. A team of trained
professionals from Reliance Foundation directly engage and collaborate with the
communities, right from understanding their needs, planning and implementing
the programmes, and measuring the values and impact they have created.
 Forging Partnerships and Collaborations- It collaborates with the organisations for
sharing technical knowledge, human resources and infrastructure. These
partnerships support in delivering Reliance’s commitment by intensively engaging
with the communities and penetrate into the critical issues that are physically
untouched through direct interventions.
 Leveraging Technology: Reliance leverages technology to provide sustainable
solutions. These technological interventions connect communities on multiple
digital platforms for optimum use of resources, informed decision making and
capacity building. Through the use of technology, Reliance has made significant
progress in reaching out to people with various services such as information
advisories, digital classrooms, virtual sports clinics and record keeping of patients.

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.

6. Inclination and policies regarding environment of the selected


companies-
Reliance Jio-
 Rain water harvesting capacity since inception is 7.32+ crore m3 which resulted in
total water recycled in FY 2018-2019 is 73,142.11m3
 Emission reduction through design improvements and eco-friendly fuels
 Preventing soil contamination by minimum waste disposal by recycling 2 billion
PET bottles every year,
 Air emission in FY 2018-2019 of TPM was 2.29mt
 Reliance started 'Project VersoWah!' to solve the plastic pollution issue. The focus
was to reduce manual intervention, clear the litter from the beach and develop a
robust circular solution. Reliance identified a mechanised solution for the beach
cleaning exercise. This has resulted in recovering approximately 1.5 million kgs of
waste in 180 days.
 ‘Swachhta Hi Seva’ campaign reaching more than 42 lakh people across 429
locations in the two-week long campaign that ended on October 2, 2018.
 More than 2 lakh volunteers (employees, rural and urban community leaders and
groups) supported by Reliance through various initiatives participated in various
cleanliness activities.

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.

7. Integrative framework of their social inclusion and initiatives-


Reliance JIO-

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

 Policy, Licensing and Coordination matters relating to telegraphs, telephones,


wireless, data, facsimile and telephonic services and other like forms of
communications.
 Promotion of standardization, research and development in telecommunications.
 Promotion of private investment in Telecommunications.

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)

3. Brief Introduction of each regulatory body –


 The inevitable need for independent regulation brought about The Telecom
Regulatory Authority of India (TRAI) and thus, established with effect from 20th
February 1997 by an Act of Parliament, called the Telecom Regulatory Authority
of India Act, 1997, to regulate telecom services, including fixation/revision of
tariffs for telecom services which were earlier vested in the Central Government.
 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.

 Focuses creation of conducive environment for the growth of telecommunications,


broadcasting & cable sectors resulting in healthy competitive markets and
recognition of India as one of the leading players in the emerging global
information society.

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:

 Licensor (Central Government) and a licensee.


 Two or more service providers.
 Between a service provider and a group of consumers.
 It can make recommendation either on its own accord or on the request of the
Government on the following matters:

1. Need and timing of new service provider.


2. Terms and conditions of the licence which may be granted to the service
provider.
3. Revocation of licence for not following the term and conditions of the licence.

 The TRAI also has to discharge certain functions apart from making
recommendations to the Government:

1. Ensure compliance with the terms and conditions of the licence.


2. Fix the terms and conditions of inter-connectivity between service providers.
3. Ensure technical compatibility and effective inter-connection between different
service providers.
4.Classification of regulatory body between national and state. Brief
description of their functionaries.
 Both regulatory bodies, TRAI alongside TDSAT which operates at both national
and state levels.
 The former formulates and implements rules and regulations for each and every
circle in India.
 It also revamps laws relating to Telecom from time to time.
 Whereas TDSAT looks into the legal cases related to central, state as well as
individual.

5. Details of legal violation done by the selected companies, if any

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.

 Payment of 13 crores to the government as settlement to long standing dispute.


Airtel:
 93,552 instances of non-compliance to MNP rules were found against Bharti
Airtel since 2013-14

 The Reserve Bank has imposed a penalty of ₹ 5 crore on Airtel Payments Bank
for violating operating guidelines and Know Your Customer (KYC) norms.

 Nearly 20,000 crores of dues have to be paid to central government in relation to


settlement.

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)

6. Identification of national and global issues affecting the selected


industry and companies: In addition to opportunities, the telecom companies
around the world are facing a lot of challenges in this era.

 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.

 With millions of subscribers, a variety of new products, bundled and customized


solutions, the operational support services like service configuration, order
fulfilment, customer care, and billing are becoming increasingly complex. Hence,
the cost of handling these operations require resources and different tools, thus,
increasing the financial overhead.
 Security of the networks has become a major priority for the telcos and they are
facing challenges with the emergence of new threats that are powered by new
technologies.

7. Identification of Key Initiative to promote the selected industry


 Digital India is expected to create $ 1 Trillion business opportunity by
2020: With the initiation of the Digital India campaign in the year 2014 by
Honorable PM Shri. Narendra Modi, the government has a lot of plans for both
creation of infrastructure and boosting the telecom industry to fulfil this desire. It
is also expected to create a lot of business opportunities for the players who are
ready to enter the market digitally.

 Optical fibre cables laid over 100,000 gram panchayats: Government is


planning to connect all parts of India digitally to ensure seamless connectivity all
over India. This initiative is known as “Bharatnet project”. It is expected to be one
of the largest of its kind all over the World.

 The government announced Phased Manufacturing Program (PMP) to


promote domestic production of mobile handsets: This program aims at
promoting boosting the “Make in India” campaign initiated by the NDA
Government. It in a way provides an infrastructure base for the future for telecom
industry to flourish.

 Promotion of Education online: With the initiation of schemes like E-Sakhi,


education for women in rural India is being promoted. It plays a crucial role in
fulfilling a government scheme of “Beti Bachao, Beti Padhao”.

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/

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