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Executive Summary: Introduction To The Problem
Executive Summary: Introduction To The Problem
Executive Summary: Introduction To The Problem
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I started by doing an retail mapping in which I asked the retailers about their opinions and
their expectations about the state of 3G services based on which I designed my own research
, which began by a questionnaire design based on the variables identified which namely are:
The sample size is took is n=160 and the samples has been collected from various parts of
Bhubaneswar in similar proportions viz western Bhubaneswar, northern Bhubaneswar,
central Bhubaneswar and outskirts of Bhubaneswar.
Major findings
After a detailed frequency analysis using pie charts and bar diagrams and application of
statistical tool on SPSS (two step cluster analysis) I tried to find homogeneity between the
responses as well as heterogeneity, the analysis gave me a overall picture of the market in
Bhubaneswar where 3G is in the path of adoption and demand in the market for 3G has
increased exponentially, Aircel is doing a hefty business in 3G as far as Bhubaneswar is
concerned and is currently the market leader, followed by Airtel which is an all-round player
in the overall market concerning both 2G and 3G .
There is awareness about 4G(RJIL) in the market but retailers are very insure about the kind
of services that they are going to provide as there are a lot of consumer complaints on 3G
mostly comprising of network failure and poor signal quality (approx 90% complaints).
Other findings from the study is that retailers are still confusing Reliance 3G launched by
RCOM with Reliance 4G going to be launched by RJIL and they have benchmarked 4G
services of reliance based on Reliance 3G when actually they are both from different groups
of Reliance. This perception needs to be changed and steps have to be taken through a strong
marketing campaign.
The limitations of my study is that there are more than 10,000 retail outlets in and around
Bhubaneswar city, and my study is only based on 10% of the entire retailer base of the city
mainly due to lack of time .Therefore I cannot guarantee that the inferences are accurate but it
does give a overview of the entire market.
Recommendations
Majority of retailers confuses RJIL to be same with RCOM (Reliance
Communications) headed by Anil Ambani group , so it’s the responsibility of the
company to clarify the confusion through their marketing campaign
A decent proportion of the retailers have a negative impression about Reliance(RJIL)
4G just because they confuses it with RCOM 3G which is recently facing lot of
consumer complaints due to slow connectivity which needs to be corrected
Distribution network of reliance is also proving to be very dissatisfactory for the
retailers which need to be taken care of by the company.
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1. INTRODUCTION TO THE COMPANY
"I am confident that Jio will play a significant role in lifting India from its current 142nd rank on
Internet penetration to among the top 10 nations in the world,"-Mukesh Ambani, Owner RJIL
Reliance Jio infocomm limited (RJIL) is a subsidiary of Reliance industries limited (RIL)
which is headed by world renowned businessman and billionaire, Mr.Mukesh Ambani. It was
formerly known as Infotel Broadband services limited by changed its name to Reliance Jio
infocomm limited in January 2013.The Company is Mumbai based and it was incorporated in
January 2007.
Reliance jio will provide broadband services to customers using WI-max as access
technology across India. RJIL will be the first telecom company to launch 4G pan India.
RIL reentered the telecom sector in 2010 by buying the only company that had won pan India
4G spectrum in an auction. The telecom company has still been unable to commercially
launch its 4G services primarily due to the technology standards that it has adopted, TDE-
LTE is still being developed globally. The company is in the penultimate stage of launching
its services commercially. The company started offering its beta version of services in the 1st
week of March, 2015. In the beta phase company offers its services in its entirety but only to
a close group, which includes all the stake holders (Employees and Vendors) .It completed
the alpha phase of 4G services by the end of February, 2015 During this period the company
has completed Test schedule and test procedure (TSTP) for 4G technology in 19-20 circles
where it demonstrated speeds of 29 to 40 Mbps.
In the beta phase of testing Jio is not only testing the voice and data services but also testing
the various applications like Jio drive which is similar to Apple face time where people can
make video calls. RJIL has been focusing on various apps be it magazine, movie store, music
store, games and other entertainment stores.
Reliance jio has invested an estimated total of 70,000 crores in this project and rumors are
that they are going to invest 50,000 crores more in the project and the 4G network will cover
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over 90% of the urban India and approximately 215,000 villages in India. In order to provide
4G coverage Pan India, the company is planning to commission more than 100,000 base
stations by the end of 2015.
In order to provide better services to its customers, the company is planning to automate 4G
services by launching a customer portal where prospective consumers can fill in their details
and choose their tariff plan from the existing bouquet of services which can be changed as per
consumer’s requirement. RJIL is also planning to deliver 4G SIM cards at customer
locations. All these services will be the first of a kind and is expected to create a revolution in
the Indian telecom industry, as by the words of Mr. Mukesh Ambani the objective is to
improve rank of India in internet penetration from 142 to among top-10 countries.
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 networks.
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 fiber
connectivity, setup its internet point of presence, offer internet transit and peering services as
well as data and voice roaming services in Singapore.
RJIL has finalized key agreements with its technology partners, service providers,
infrastructure providers, application partners, device manufacturers and other strategic
partners for the project. These strategic partners have committed significant resources,
knowhow and global talent to support planning, deployment and testing activities currently
underway The company is planning to provide the voice and data services at half the current
rates prevalent in the market. And the primarily objective is to provide 85% of voice and 15%
of data services to customers. Mukesh Ambani has recently announced the launching of
commercial services by December, 2015 which has created a buzz in the market
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 utilize 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)
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2. LITERATURE REVIEW
Telecommunication has come a long way from 1st generation of communication now to 4th
generation of telecommunication popularly known as 4G.In India telecom revolution started
somewhere in the mid nineties when TRAI was formed (Telecom Regulatory authority of
India) in 1997 .Cellular services were launched in 1999.India has moved about 20 years in
the last 10 years in telecom revolution, talking about facts and figures, Now India is the 2nd
largest mobile market by mobile connections and unique subscribers At present there are
more than 900 million mobile connections across the country and this figure is expected to
rise to 1.17 billion by end of 2017.
While large majority of mobile services available in India are based on 2G technology, the
country has seen the adoption of 3G technology accelerate in the recent years. With improved
.spectrum pricing and management, the growth of mobile broadband services is expected to
continue, with prediction that 3G and 4G adoption will increase by 31% between 2013 -2017.
But, Still India lags behind the other world’s major economies in mobile penetration.
Network investment is held back by low tariffs due to market condition, and usually high
level of competition, burden caused by the government policies, high cost of spectrum
access. India operators have the lowest profitability ratios in the Asia pacific zone. This
affects the ability to upgrade consumer services, meet demand of the urban population and
network expansion to provide coverage to people living in urban areas.
Few stats and figures showing 2G vs. 3G mobile scenario in India is as follows. Voice traffic
growth have slowed and data and value added services are growing and expected to grow by
31% till 2017.Effective pricing per minute declining sharply across India and has declined by
8% in the past 6 years. Mobile penetration has been seeing a directly proportional trend with
the increase in GDP of the economy. Voice growth has declined from 175% in 2005 to 19%
in 2012.
3G and 4G has lot of potential in the India market, So far however 3G technology in India
has been hindered by small amount of spectrum allocated to mobile services and the very
high spectrum prices reached during 2010 spectrum auction. In recent years however India
has seen increase in 3G adoption with better spectrum pricing and adoption.
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FIG 2(a) Landscape change from 2G to 3G and now 4G
This data is from research paper by GSMA termed as “ Indian mobile economy 2013”,There
has been a lot of study on the penetration of the current market by 3G and what all
revolutions 4G can bring in the telecom sector as mentioned in “India 4G and cellular market
Analysis and forecast,2010-2015”
The State of Indian companies in 4G is listed here (as on nov 2012)
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A lot of research has gone into understanding why 2G is still highly sought by consumers,
what is the requirement to do a paradigm shift in telecom sector and replace voice by data
and lot of research papers that has been published covering these problems.
All these studies have been done on the country wide basis i.e. at a macro level and also at
micro level. Researchers have tried to analyze the market potential in different cities of the
country for 4G business. I figured out that there is a need to understand the problem at micro
level i.e. in a city and doing a personal interaction with the business customers
(retailers).Hence I based my study in Bhubaneswar.
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3. PROBLEM DEFINITION (Part 1)
Reliance jio infocomm limited (RJIL) has a vision of taking India to the next level of internet
revolution. India has beforehand experienced 4G but in tits and bits. Bharati Airtel paid
₹33.1436 billion (US$530 million) for spectrum in 4 circles: Maharashtra and Goa,
Karnataka, Punjab and Kolkata. The company was allocated 20 MHz of BWA spectrum in
2.3 GHz frequency band. On 10 April 2012, Airtel launched 4G services through dongles and
modems using TD-LTE technology in Kolkata, becoming the first company in India to offer
4G services Airtel launched 4G services on mobile from February 2014. The first city to get
the service was Bangalore. Airtel has started their 4G services in Karnal and Yamunanagar in
Haryana on 16th June 2015. Airtel 4G trials has been started in Delhi from 18th June
2015,Airtel had 1,20,000 4G subscribers as of May 2014.But they were not able to acquire
pan India license to launch 4G across the country and there services are only limited to few of
the major cities of the country. So as of now 4G is still a very new prospect in a developing
country like ours and there is lot of room for development and progress.
Reliance Jio Infocomm Limited acquired PAN India license to launch 4G and the company
has been allocated spectrum of 2300, 1800,800 MHz’s as mentioned earlier it has invested a
huge lumsum amount in this project and has collaborated with the world’s best telecom giants
to gain their technology. It has yet to commercially launch its services in India and final
testing phase is running.
Now, Bhubaneswar as clear from the above mentioned stats and facts is one of the major
cities of India and the fast growing city of the country, therefore there is a surge in the market
to make the maximum out of the business potential of this city. Reliance jio has been very
proactive in their approach as they already have established 2 jio centers in Bhubaneswar.
The demarcation of the jio centers is done based on population. It is to be mentioned here that
there are total 1071 jio centers in India and Odisha itself has 31 jio centers. But 4G being a
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New technology in India, there is a huge challenge lying ahead for the company as it is not
going to be an easy task for them
(a) People are afraid of changes, they are very unsure about adapting a new technology
(b) Creating awareness among the mass about the fruitfulness of the product
(c) 3G is still trying to find its way among the customers in India, at this stage success of
4G is always a case of probabilities
(d) Rising up to the expectations of the people is not an easy task especially when you are
working in India where infrastructure and accessibility are very big challenges.
3.3 Objectives
As understood from the following points, these same conditions are applicable to
Bhubaneswar and the company is putting all efforts to create awareness about the product in
the market .The objective of the study is to study the current state of 3G services in
Bhubaneswar, the satisfaction level of the retailers with respect to the current 3G service
providers and their expectations from upcoming 4G network in Bhubaneswar
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4. APPROACH TO THE PROBLEM
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5. RESEARCH METHODOLOGY
Problem Identification
Questionnaire designing
based on the identified
factors
Pretesting of the
questionnaire
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Data Analysis using
frequency analysis and two
step cluster analysis on SPSS
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Samples
25.00%
36.25%
Western
12.50% Northern
Central
outskirt
26.26%
My objective was to divide the responses into clusters where I can find homogeneity between
the responses as well as heterogeneity of the responses of the retailers and for that purpose I
have applied two step cluster analysis on SPSS as variables I have used are both categorical
as well a continuous and total sample size I have taken is n= 160
The coding of the variables on SPSS has been done as follows
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5.4 Questionnaire development
After a qualitative study of the retail business in telecom in Bhubaneswar and in consultation
with the faculty as well as industry mentor, I have prepared a questionnaire that will suffice
the objective of my study.
The type of scale that I have used is Continuous rating scale in this kind of scale respondents
rate the objects by placing a mark at the appropriate position on a line that runs from one extreme
of the criterion variable to the other. The form of the continuous scale may vary considerably.
Version 1:
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Probably the best
Version 2:
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - Probably the best
0 10 20 30 40 50 60 70 80 90 100
Version 3:
Very bad Neither good Very good
nor bad
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - -Probably the best
0 10 20 30 40 50 60 70 80 90 100
After developing the questionnaire few pilot studies were done to validate the authenticity of
the questionnaire and reliability of the scale. After that the questionnaire was used to collect
data from the retailers.
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6. DATA ANALYSIS
Pictorial representation of the data that has been collected is as shown below
Western Bhubaneswar
2G
12%
3G
88%
Northern Bhubaneswar
2G
24%
3G
76%
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In northern Bhubaneswar 76% of the retailers agreed that there is demand for 3G in the
current market and people have started shifting from 2G users to being 3G whereas 24%
contradicted with this opinion.
Outskirts of Bhubaneswar
2G
15%
3G
85%
Central Bhubaneswar
2G
20%
3G
80%
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In central Bhubaneswar 80% of the respondents have said yes to the demand of 3G in current
market whereas only 20% have denied and have said 2G is still prevalent in the market.
60.00%
50.00%
40.00%
30.00% Series1
20.00%
10.00%
0.00%
Airtel Aircel Reliance BSNL Vodafone Docomo
40.00%
35.00%
30.00%
25.00%
20.00% Series1
15.00%
10.00%
5.00%
0.00%
Aircel Airtel Reliance BSNL Vodafone Docomo
(iii)Central Bhubaneswar
50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Series1
20.00%
15.00%
10.00%
5.00%
0.00%
Aircel Airtel Reliance BSNL Vodafone Docomo
(iv) Outskirts
50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Series1
20.00%
15.00%
10.00%
5.00%
0.00%
Aircel Airtel Reliance BSNL Vodafone Docomo
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6.3 Recharge on Demand
Western Bhubaneswar
Voice
17% Data
11%
Both
72%
Northern Bhubaneswar
Voice
33%
Both
57%
Data
10%
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Central Bhubaneswar
Both Voice
25% 30%
Data
45%
Outskirts of Bhubaneswar
Both Voice
20% 20%
Data
60%
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From the above frequency analysis we can conclude a few things like:
(i) Aircel is doing a booming business in Bhubaneswar as far as 3G is concerned and
it is currently the market leader in 3G in Bhubaneswar
(ii) Data has started overtaking Voice ,which is a good sign for 4G launch as people
have started realizing the need for data
(iii) 3G has started gaining usability among customers and these customers are the
prime targets which have the highest probability to switch to 4G after launch.
Cluster Analysis
As mentioned earlier I have done a two –step cluster analysis on SPSS for a sample size
n=160, I adapted two step cluster analysis because I have both continuous variables and
categorical variables. The scale I have used here is a continuous rating scale in which values
range from 1 to 5
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FIG 6(m) Priority order of variables
While sampling the variables, the factor company having highest sale in 3G has been give the
prime importance and Demand for 3G has been given the least importance
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FIG 6(n) cluster sizes and ratio of their sizes
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As we can see SPSS gave us two clusters out of the data set we entered,
Cluster-1(34.4%) Cluster-2(65.6%)
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7. RESULTS
I have tried to bring each and every retailer to a conversation and ask them about complaints
they have heard from the consumers using 3G.
Few of the findings of the research undertaken are as follows:
3G has a growing market in Bhubaneswar although traditionally 2G has always
dominated the telecom business in India but there is a shift in the paradigm in recent
years
Aircel is dominating the 3G market in Bhubaneswar, followed by Airtel and Reliance
Voice is still dominant in the market but people has started realizing the need of data
,obviously data is the future of telecom industry
RJIL is focusing 85% on data and 15% on voice, and the current market scenario is
favorable for them
The major complain that retailers are facing from the 3G users is network failure
especially in Reliance 3G which is reducing the credibility of the network
Awareness is there in the market of the upcoming 4G launch in Bhubaneswar ,but
they are skeptical about it
The prime reasons of that is 3G is not matching up to the expectations of the retailers
as well as the consumers and RJIL need to take care of that
Majority of the retailers in Bhubaneswar agreed readily to provide 4G connections to
the customers
Retailers are satisfied with the margin they are gaining by selling 3G but they expect
something more from 4G
Overall we can say that RJIL has to explore the unimaginable potential that is there in the
current market, 3G is finding a mark in the market which is good news for the company,
and these customers that are using 3G are the most probable customers that are likely to
switch to 4G after the launch.
It time that marketing activities should run in full force in order to create anticipation in
the market for 4G and they better meet the high expectations the people have put on 4G .
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8. LIMITATIONS AND CAVEATS
The study that I have conducted is limited to only major areas of Bhubaneswar city and this
study cannot be generalized for the entire Bhubaneswar zone .There are more than 10,000
retail stores in and around Bhubaneswar and this study is only an overview of the entire
market.
Moreover, I cannot guarantee that the responses that I have collected are unbiased as retailers
have their own agendas and loyalty towards the brand they sell. Literacy level of few the
retailers is also an issue as it makes it difficult for us to make them understand the questions
in the way they are meant.
The time we got to carry out the study is less than a month as it was a major constraint for
me, it is difficult to cover all your bases in such a limited time period and that’s why I limited
my sample size to equal but limited proportions from different areas of Bhubaneswar
One of the major caveats is the hostility of the retailers, I found in some parts of
Bhubaneswar retailers are very hostile to such kind of survey and they are very unwilling to
respond to the questions.
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9. PROBLEM DEFINITION (Part 2)
9.3 Objective The Company’s objective is find out the how many enterprises belong to
which category and accordingly decides on the requirement of IBS installation based on
(i) Infrastructure
(ii) Strength of the enterprise (based on no of students /employees)
(iii) Number of Laptop and computers used in the enterprise
(iv) Number of Smartphone users
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10. RESEARCH METHODOLOGY
Gothapatna- 22 enterprises
Khurda- 12 enterprises
Jayadev vihar -39 enterprises
Chandrashekharpur-14 enterprises
Ashoka Nagar-10 enterprises
BapujiNagar-16 enterprises
Shaheed Nagar-17 enterprises
Nayapalli-17 enterprises
Depending on the criteria’s that were set for eligibility for IBS installation, we have
recommended few of the enterprises for IBS installation out of the various enterprises
we have visited on behalf of the company.
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11. CONCLUSIONS AND RECCOMENDATIONS
11.1 Conclusions
From the study it is clear that Aircel is doing a booming business in 3G as far as
Bhubaneswar is concerned
Airtel also is regarded high
Reliance 3G is widely recognized but they are eating up their own consumer base
,majorly due to poor network which had lead to dissatisfaction among consumers
3G is very much in demand now in Bhubaneswar and there has been an increase in
consumers seeking 3G connections
Retailers are mostly aware of the 4G network that is going to be launched in
Bhubaneswar by RJIL and are speculating about it
Retailers expect a more reliable network with the introduction of 4G with lesser
consumer complaint
IBS installation
There are more numerous enterprises in and around Bhubaneswar out of which there
are almost 25% enterprises in Bhubaneswar zone that are eligible for IBS installation
11.2 Recommendations
Majority of retailers confuses RJIL to be same with RCOM (Reliance
Communications) headed by Anil Ambani group , so it’s the responsibility of the
company to clarify the confusion through their marketing campaign
A decent proportion of the retailers have a negative impression about
Reliance(RJIL) 4G just because they confuses it with RCOM 3G which is recently
facing lot of consumer complaints due to slow connectivity which needs to be
corrected
Distribution network of reliance is also proving to be very dissatisfactory for the
retailers which need to be taken care of by the company.
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12. EXHIBITS
12.1 Questionnaire
AREA………………………………
Q. Are you aware of 4G Network that is going to be launched by Reliance?
YES NO
Q. What customers looks for frequently when they ask for recharge?
Voice Recharge Data Recharge
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Q. Which company recharge sells more in 3G?
1. Reliance 2. Airtel 3. Idea 4. Vodafone 5.Any other…………….
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14. REFERENCES
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