TELECOMMUNICATION INDUSTRY OF INDIA

Summer Internship program 2015 A REPORT ON COMPARISION OF MAJOR INTERNATIONAL SIMCARD SERVICE PROVIDERS OF INDIA WITH MATRIX By:- N.Sripathi Rao

14BSP0822

A REPORT ON COMPARISION OF MAJOR INTERNATIONAL SIM CARD PROVIDERS OF INDIA WITH MATRIX By

N.Sripathi Rao

14BSP0822

A report submitted in partial fulfillment of the requirements Of PGPM Program of ICFAI Business School

Company Project Guide: Mr. Abhijith R.Krishnan (Chartered Accountant, Rangaraju & Associates)Faculty Project Guide: Dr.B.Shafiulla (Faculty, IBS Bangalore) DeclarationI Sripathi Rao (14BSP0822) hereby declare that the project entitled price comparison of international sim card service providers is a record research work carried out by me as a part of summer internship program during the academic year 2015 under the guidance of Dr.B.Shafiulla, Faculty Guide, ICFAI Business School, Bangalore, and my project guide Mr. Abhijith R.Krishnan, Rangaraju & Associates.

It is also declared that this project is result of my effort and has not been submitted to any other university or institution for any degree, or personal favour whatsoever. All the details and analysis provided in the report hold true to the best of my knowledge.

Place: Bangalore Date: N.Sripathirao 14BSP0822ACKNOWLEDGEMENT

I take this opportunity to thank my company guide Mr. Abhijith R.Krishnan and all my senior colleagues at Rangaraju & associates, Bangalore for the valuable assistance through out the period, which helped me to arrive at this report. They gave me all the support and information I needed to complete this project.

I also thank my faculty guide Dr.B.Shafiulla who has been a constant source of motivation for me. He has always shown the right path to me and given suggestions to get most out of this project.

Last but not the least I would like to thank my family members who have been a pillar of support for me and have given me a free hand in choosing my course of life. I also thank my friends for encouraging me constantly through the tough times. I also want to thank other employees of the company for providing me with necessary support. This project report also owes a lot to them for its successful completion.

A special thanks to all of them.

N.Sripathi Rao.Contents6Abstract

8Indian economy

10Key Industries in India

10Fast growing Industries

15Industry profile

19Porter five forces analysis for the telecom industry in India

23Company analysis

27SWOT ANALYSIS

33Objectives of the report

33Research methodology

34Scope of the study

35Limitations of the Study: -

36Data analysis and call rates of the major companies

55Findings

58Recommendations

59Conclusion

60References

61Annexure

62Questionnaire

AbstractThe telecom industry consists of Fixed and cellular service providers. In 1994, government opened the telecom market for private participation in fixed as well as cellular services. It came out with National Telecom Policy 1994 to facilitate the regulation and give direction to growth. Licenses were issued for providing these services between 1994 and 1995 and service providers started their service since 1995.

Government has decided to use GSM technology for providing cellular services. Until 2002, cellular services were provided by GSM service providers then Tata tele entered with CDMA technology to provide limited mobility services. In 2003, Reliance also entered in the market with CDMA technology. These service providers were giving services at much lower rate than GSM service providers, as they dont have to pay any license fees. This led to dispute between GSM and CDMA service providers. Then in November 2003 TDSAT declared that CDMA will come under fully mobile category and they also have to pay the licensing fee. There are several companies which offer international sim card services. It is extremely important to go through the terms and conditions, call rates and other important information before buying an international sim card from any service provider. Matrix, Jaxtr, Clay, and Roam1 are some of the leading providers of international telecom solutions to Indians traveling abroad. The price comparison of these sim card services is very difficult. But the matrix service provider offers many combo packs comparing to the others. The clay stands next to the matrix it also offers different packs .Jaxtr and Roam1 stands next to the clay in case of network coverage and prices. EIC ANALYSIS Indian economyThe economy of India is the seventh largest in the world by nominal GDP and third largest by purchasing parity. The country is one of the G-20 major economies, a member of BRICS and a developing economy among top 20 global traders according to the WTO.

According to the Indian finance ministry the annual growth rate of the Indian economy is projected to have increased to 7.4% in 2014-15 as compared with 6.9% in the fiscal year 2013-2014.in an annual report, the IMF forecast that the Indian economy would grow by 7.5% in the 2015-16 fiscal starting on April 1,2015.up from 7.2% (2014-15).

India was the 19th largest merchandise and the 6th largest services exporter in the world in 2013.the agriculture sector is the largest employer in Indias the economy but contributes a declining share of its GDP. Its manufacturing industry has held constant share of its economic contribution, while the fastest growing part of the economy has been its service sector which includes, among others the construction telecommunications, software and information technologies infrastructure, tourism, education, and healthcare, travel, trade and banking industries.

Growth in the gross domestic product is expected to accelerate to 7.8% in FY2015 on improved performance in both industry and services as policy addresses structural bottlenecks and external demand improves.

Growth is expected to edge up further to 8.2% in FY2016, helped by a supportive monetary policy in 2015, as inflation continues to trend lower and by a pickup in capital expenditure.

India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly less than half of the work force is in agriculture, but, services are the major source of economic growth, accounting for nearly two-thirds of India's output with less than one-third of its labor force. Life expectancy has more than doubled, literacy rates have quadrupled, health conditions have improved, and a sizeable middle class has emerged. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services, business outsourcing services, and software workers. India is now home to globally recognized companies in pharmaceuticals and steel and information and space technologies.

With 1.2 billion people and the worlds seventh-largest economy by Nominal GDP and third largest by purchasing power parity. The country is one of the G-20 major economies, a member of BRICS and a developing economy among the top 20 global traders according to the WTO. Indias recent growth and development has been one of the most significant achievements of our times. India's economic growth began slowing in 2011 because of a decline in investment, caused by high interest rates, rising inflation, and investor pessimism about the government's commitment to further economic reforms and about the global situation.

The outlook for India's long-term growth is moderately positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. However, India has many challenges that it has yet to fully address, including poverty, corruption, violence and discrimination against women and girls, an inefficient power generation and distribution system, ineffective enforcement of intellectual property rights, decades-long civil litigation dockets, inadequate transport and agricultural infrastructure, limited non-agricultural employment opportunities, high spending and poorly-targeted subsidies, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration. The country is in the midst of a massive wave of urbanization as some 10 million people move to towns and cities each year in search of jobs and opportunity. It is the largest rural-urban migration of this century.

Growth in 2014 fell to a decade low, as India's economic leaders struggled to improve the country's wide fiscal and current account deficits. Rising macroeconomic imbalances in India and improving economic conditions in Western countries, led investors to shift capital away from India, prompting a sharp depreciation of the rupee. However, investors' perceptions of India improved in early 2014, due to a reduction of the current account deficit and expectations of post-election economic reform, resulting in a surge of inbound capital flows and stabilization of the rupee.

Key Industries in India

1. Retail and wholesale trade (18.07%)

2. Agriculture (15.7%)3. Real estate (13.5%)4. Banking and insurance (10%)5. IT and ITES Industry (9%)6. Transportation Industry (8.5%)7. Engineering and Machinery (8%)8. Chemical Industry (7%)9. Tourism (6.23%)10. Textile Industry (4%) Fast growing Industries

1. Information Technology

2. Telecom

3. Healthcare

4. Infrastructure

5. Retail

The inflation rate in India was recorded at 4.87 percent in April of 2015. Inflation Rate in India averaged 8.60 percent from 2012 until 2015, reaching an all time high of 11.16 percent in November of 2013 and a record low of 4.38 percent in November of 2014. Inflation Rate in India is reported by the Ministry of Statistics and Programme Implementation (MOSPI), India.

GDP$2.308 trillion(Nominal, April 2015)

$7.996 trillion(PPP, April 2015)

GDP rank7th(Nominal)/3rd(PPP)

GDP growth7.3%(2014-15)

GDP per capita$1,808(Nominl:131th;2015)$6,625(PPP:121th;2015)

GDP by sectorAgriculture:13.7%Industry:21.5%

Services:64.8%(2013)

Inflation(CPI)CPI: 4.87%

WPI: -2.65%

Export goodsSoftware,petrochemicals,agriculture products,jewellery,engineering goods,pharmaceuticals,textiles,chemicals,trnsportation,ores,and other commodities

Import goodsCrude oil,god and precious stones,electronics,engineering goods,chemicals,plastics,coal and ores,iron and steel,vegetable oil and other commodities

Budget deficit4.1% of GDP(2014-15)

Revenues$450.3billion(2015,IMF)

Expenses$616.6 billion(2015,IMF)

Foreign reserves$353.8 billion

BUDGET AT A GLANCE:

1. Budget at a Glance shows Budget estimates in broad aggregates to facilitate easy understanding. The document shows receipts and expenditure as well as the revenue deficit, the effective revenue deficit, the fiscal deficit and the primary deficit. Central and State Plan Outlays are shown in brief. The document also gives the highlights of the Central Plan for Financial Year 2015-2016.

2. Revenue deficit refers to the excess of revenue expenditure over revenue receipts. Effective revenue deficit is the difference between revenue deficit and grants for creation of capital assets. Fiscal deficit is the difference between the revenue receipts plus non-debt capital receipts and the total expenditure including loans, net of repayments. This indicates the total borrowing requirements of Government from all sources. Primary deficit is measured by fiscal deficit less interest payments.

3. Budget 2015-16 marks the dawn of Co-operative federalism and empowerment of the States. The creation of National Institution of Transforming India (NITI) and acceptance of 14th Finance Commissions (FFC) recommendation of substantially higher devolution of Union taxes to States are landmarks in this direction. The Government firmly believes that India grows when States grow.

4. The total Plan Outlay for 2015-16 is 465277 crore.

5. Higher devolution to States of the divisible pool implies that the fiscal space for the Centre shrinks in the same proportion. Despite these constraints, the current Central Plan outlay for; Agriculture, Rural Development, Animal Husbandry, Dairying and Fisheries, Minority Affairs, Women and Child Development, Development of Ayurveda, Yoga, Sidha and Homeopathy, Export Promotion, Industrial Corridor Development, Development of North East, Drinking Water and Sanitation, Health and Family Welfare, Health Research, AIDS Control, School Education, Higher Education, Renewable Energy, Science and Technology, Bio-technology, Shipping, Social Justice and Empowerment, Disability Affairs, Tribal Affairs and Urban Development, have either been retained or increased.

6. To give a major boost to infrastructure development allocation for Roads and Railways sector have been significantly enhanced. Similarly, allocation for DelhiMumbai Industrial corridor (DMIC) has been almost doubled. Resources have been targeted towards Pradhan Mantri Krishi Sinchai Yojana, Rural Electrification and Sagar Mala Project.

7. States will have greater flexibility in designing and running Programmes and Schemes as per local requirements and conditions. Government has Decided that it will continue to support State Plans of national priorities especially those which are targeted towards Poverty Alleviation and up liftmen of socially disadvantaged groups.

Budget at a Glance in Crore of Rupees

2014-15Budget Estimates2015-16Budget Estimates

Revenue Receipts11262941141575

Capital Receipts554864635902

Total Receipts1681151777477

Non-Plan Expenditure12132241312200

Plan Expenditure467934465277

Total Expenditure16811581777477

Revenue Deficit362486394472

Effective

Revenue Deficit23058283921

Fiscal Deficit512628555649

Primary Deficit10127499504

Industry profileCountry specific sim card is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. It has become especially important in recent years because of enormous growth of Information Technology (IT) and its significant impact on the rest of the economy. India is perceived to have a special comparative advantage in IT and in IT-enabled services. However, sustaining this advantage depends critically on high quality telecommunication infrastructure. Keeping this in view, the focus of policy is vision of world class telecommunication facilities at reasonable rates. Although the telecom network has grown rapidly in recent years, its growth needs to be accelerated further in the Tenth Plan. The telecom sector in India has been witnessing a continuous process of reforms since 1991. With the opening of international long distance services and internet telephony from April, 2002, the process of liberalization and opening up the sector for competition is complete. Convergence of services is a major new emerging area and the telecom sector will have to address this in the Tenth Plan.

The major reforms carried out in the telecom sector so far are given below:-

Reforms in the Telecom Sector Telecom equipment manufacturing was completely deregulated in 1991.

Value added services, including Country Specific Sim card phone services, were thrown open to private sector in 1992. The National Telecom Policy (NTP) allowing private sector participation in basic services was announced in 1994. An independent regulatory authority called, Telecom Regulatory Authority of India (TRAI), was set up in 1997.

A new policy for Internet Service Providers (ISPs) was announced in 1998, opening the area to private sector providers. The policy was promotional in nature. ISPs have been allowed to set up International Internet Gateways both satellite and landing stations for Submarine Cable systems.

A new policy called New Telecom Policy (NTP), 1999 was announced replacing the 1994 policy.

Migration from the regime of fixed license fee to a new regime of revenue share was permitted in August, 1999.

The regulatory mechanism has been further strengthened through the TRAI (Amendment) Act, 2000. The Act provides for establishment of a separate dispute settlement mechanism called Telecom Dispute Settlement and Appellate Tribunal.

National Long Distance Service was opened for competition in August, 2000.

Corporatization of Department of telecommunication's operational network into a public company called Bharat Sanchar Nigam Ltd. from 1st October, 2000.

Videsh Sanchar Nigam Ltd. (VSNL) and HTL limited have been disinvested.

The Communication Convergence Bill 2001 was introduced in Lok Sabha and has been referred to the Standing Committee of Parliament.

Fourth Country Specific Sim card Operator, one each in 4 metros and thirteen circles has been permitted.

Unrestricted entry in basic services allowed along with use of wireless in local loop (WLL) access technology.

Two categories of infrastructure providers have been allowed to provide end to end bandwidth and dark fiber, right of way, towers, duct space etc.

International Long Distance (ILD) Services have been opened for competition since 1st April, 2002.

Internet Telephony has also been opened up since 1st April, 2002.

Guidelines for universal service obligation announced on March 27, 2002.

COUNTRY SPECIFIC SIM CARD The Country Specific Sim card phone industry is one of Indias rapidly growing industries. Since the Industry came into being in the mid 1990s, its average per annum growth rate has been a phenomenal 200 percent. By the end of 2002, the Indian Country Specific Sim card phone Industry had over 10 million subscribers. The industry has undergone a number of Changes over the years. The National Telecom Policy 1999 was an important Landmark in the development of the Country Specific Sim card industry in India; the tariff Rationalization and policy regulation introduced in the Policy helped the industry Grow at the pace it did. In 2003, Telecom Regulatory Authority of India (TRAI) Announced regulation of interconnects user charges to resolve conflicts between Country Specific Sim card operators and network provider.

Major players:-Matrix Cellular, Clay, Uniconnect, Roam 1 and Znet connect.

The migration to revenue sharing agreement has infused fresh blood in the Country Specific Sim card industry. The sector has been bustling with activity since the migration and has taken several strides with consolidation in the industry and a rapid growth in subscriber base. The growth rate in metros has been slowing down while increasing in A Class circles. In metros the trend is towards increasing usage as against increasing penetration. Pre-paid cards have helped the Country Specific Sim card operators improve their penetration. Pre-paid cards are also being picked up by people because of the no-hassle and budget control benefit attached to it.

The industry is likely to maintain the present rate of growth backed by more affordable rates for the services, low tele-density and increasing acceptance of the service as a necessity as against luxury.Travel Sim Cards with International Roaming to Make Your Journeys Enjoyable

Going out on vacations to foreign country can be quite an exhilarating experience, especially if your journey is backed by all the travelling requirements. There are several things that form an important part of your travel kit to make your trip even more exciting and memorable. Travel SIM cards and Prepaid Data Cards are two such things that are must have for every international traveler. Irrespective of the fact, which part of the world you are travelling to, these options for international wireless communications can always make your journeys more fulfilling.Porter five forces analysis for the telecom industry in India

Competitors analysis

Telecom sector is one of the fastest growing sectors. This is due to strong competition that has brought down tariffs and simplification of policy environment that has promoted healthy competition amongst various playersThe government has eased the rules regarding inter circle and intra circle mergers. This has led to a slew of mergers and acquisitions in the recent pastAs the sector is moving closer to maturity, further consolidation is a reality and this will lead to the survival of more profitable players in this segmentInfrastructure equipment cost is down to a fraction of what prevailed just a few years ago operators can plan better expansion plan nowIncreased viability for the operators to expand to semi-urban and rural markets. Hence, competition in this market would increase

Airtel, Vodafone, idea, and rcom itself captures more than 75%.Market leaderAirtel

Market challengerVodafone Bsnl ,Docomo

Market followerIdea, Reliance

Bargaining power of customers

Relative bargaining power is high.Buyers in telecom industry generally land in two categories: individual and enterprise customers like IT companies, banks etc. There are ample number of telecom providers in the market with big product variance and cheaper prices which gives buyer many options to select operators and thus have a large bargaining leverage.Product differentiation Most of the companies have similar prices for similar products and less likely for anyone to maintain product differentiation and hence buyers have the option to switch over.Competition between buyersThe individual buyers dont have any competition among themselves but enterprise customers like IT or banks do have. Enterprise customers generate major part of the revenues for any telecom companies like Reliance, Airtel or Idea which means higher buyer power. But this is not significant for the newbie or the one who deals with individual customersBuyers information regarding the availability of other options has become highIncreased social networking, high advertisements through TV, hoardings, banners and word of mouth, buyers are well informed about the substitute products with better offerings urban as well as rural areas.Suppliers power

Suppliers for the Telecom OperatorsThe suppliers bargaining power has increased influence on the profitability of the company. Increase in the bargaining power of the supplier will lead to a decrease in profits or increase in the price of the end product (Buyer).There is a price war happening between the different mobile operators, so even the suppliers are chosen carefully so that they do not drag down the profitability of the company .So the suppliers have less bargaining power in this industry. Mobile Tower Companies SIM cards Mobile phone handsetsMobile Tower companies in India There are two types of tower companies in India Telcos owned tower companies Independently telecom tower companies Less Bargaining power because of more number of suppliers Little or no forward IntegrationSim Card ManufacturersSim card for the mobile operators are mostly produced in India and some are imported.The mobile operators doesnt always procure the sim card from a single supplier to avoid any delays.The Bargaining power of suppliers is less.There is little or no threat of forward integration

Mobile Phone handsetsTwo types of mobile phones are generally used. (CDMA & GSM).Bargaining power of suppliers are less.Little or no threat of Forward integration.Threat of substitutes-moderateBuyer Propensity to SubstituteFrom the industry and from within the DoT to open up Net telephony.If allowed, this will open up Indias domestic voice market to all operators which have a unified access services license such as Reliance Infotel and Aircel to offer voice services along with data to its consumers.Dot also contemplating allowing operators without a unified access license, which includes broadband and Internet companies such as Google and Skype to offer telephony services for international calling and PC-to-PC domestic calls.Relative Prices Internet Telephony eating into the revenue of GSM/CDMA telephony.Flat/ fixed rate revenues from internet services - cannibalization of revenues from GSM/CDMA services.Performance of SubstituteVoice quality is an issue with internet telephony.Internet voice services also currently limited due to regulatory road blocks.Threat of entryThreat of entry is low in case of telecom industry. Company analysis Company profile

COMPANY: MATRIX COUNTRY SPECIFIC SIM CARD INTERNATINAL SERVICES PVT. LTD.

GROUP: Matrix Country Specific Sim card

ESTABLISHED: 11TH Nov, 1995

MANAGING DIRECTOR: Mr. Gagan Duggal

BUSINESSES:

Country Specific Sim card BlackBerry Services

Data Cards

Forex

Matrix Country Specific Sim card comes to you as worlds biggest private integrated country specific sim Cards Company. Matrix provides a range of telecom services, which include Country Specific Sim cards, Boltons Data Cards and Forex. Apart from being the largest company in world in this business, it is also the first company to start the concept of country specific sim cards in world. Matrix is the leading country specific sim cards company, with a footprint in IndiaServices

VISION: "As they spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer."

Matrix Country Specific Sim card International Services Limited was incorporated on 9th Nov, 1995 for promoting investments in Country specific sim card services as in country specific Sims. Its subsidiaries operate telecom services across India. Matrix is India's leading private sector provider of Country Specific Sim cards based on a strong customer base consisting of approximately 20K Customers every month and the no. are increasing day by day.Business Strategy

Matrix' strategic objective is

To capitalize on the growth opportunities that the Company believes are available in the World market and consolidate its position to be the leading integrated country specific sim card provider in key markets in India, with a focus on providing such services.

The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins;

Capture maximum revenue potential with minimum geographical coverage;

Offer multiple Country specific sim card services to provide customers with a "one-stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced mobile data services;

Focus on satisfying and retaining customers by ensuring high level of customer satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational efficiencies.

Mobile Strategy

Capture maximum Country specific sim card revenue potential with minimum geographical coverage to maximize its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer superior services.

Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles.Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs.

Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidlyCoverage of Matrix Matrix Country Specific Sim card service provides services in about 56 Countries with country specific card and about 31 countries with a Global Card. It boost that the coverage is uninterrupted and covers the widest area. Clay who more or less covers the same area will give Matrix a toss in the future when its partner Uniconnect which is planning to consolidate all its Indian operation and give its customers a wider reaches in term of auto roam. Player who provides a better service in this respect will have an edge in the future as we can see the way people and business is moving out of Delhi. SWOT ANALYSIS

Strengths: -

Matrix has strong brand name recognition and a reputation for offering high quality service to its customers that is core strength to influence large prospect customers.

Focus on Country specific sim card to enable the company to better anticipate industry trends and capitalize on new Country specific sim card related business opportunities.

An effective Quality Management team with vision and proven execution skills.

Good network coverage but still not much satisfactory in global sim cards.

Excellent customer care service. Partnerships with over 36 country specific international service providers.

Early bird prizes.

Rates which are far cheaper, in some cases nearly 60%, compared to Roaming, and up to 90% in case of data cards.

Strategic business partnership with airlines, travel agencies, universities and corporate.

Opportunity: -

Still a large number of potential and prospect customers are un-captured.

Enter Viral Marketing i.e. marketing by the use of non-mass media tools of communication-SMS, Internet, E-Mail in the word of mouth to get people talking about it. Matrix has good business opportunity to tap up such companies, which are indulging in such marketing strategy. Poised to go on MVNO concept as soon as regulations in India (TRAI) permits. Due to the ever changing and growing middle class, matrix through its travel partner caters this market Above 6,000,000 people fly abroad every year this can be tapped by matrix.Threats: -

Government interventions and telecom regulators in the country pose a great threat in the independent operations of the Country Specific Sim card operators though they are essential to break any kind of monopoly in the industry.

Other Country Specific Sim card service provider especially Clay and Uniconnect emphasize more on push strategy whereas Matrix is still dealing with pull strategy. A perfect blend of both is required. So Matrix should provide dealers and distributor more perks and incentives New player are entering into the markets as Trikon, Jaxtr and Roam1.

Existing big players like Airtel, Reliance communication, going international.Weaknesses Less employee strength. Dissatisfied workforce. Mobile number portability is missing.Value Added Services and Competitive Advantage

Today in this competitive industry the fight is not about talk or price only, its about whom offers the most value added services.

In this battleground, the two most aggressive players are Clay and Reliance Passport. Clay already has a bunch of innovations to its credit. Matrix was the first company in world who came with an idea of Country Specific Sim cards and the first company which made its user to use internet services at 1/10th of the cost while they are travelling abroad.

COMPETITORS

CLAYThe most potential competitor in the industry. Clay is brought to you by Clay Telecom, one of the worlds leading Country Specific Sim card service providers. We are known for our innovative approach and world class technology. Our goal is to provide you superior products and services, anytime and anywhere.Our values are stated simply. To be fair and transparent in what we do and how we do it. To provide you quality services with more customer friendly practices. To make your communications experience simple, pleasurable and fun. Where you don't simply get technology - but technology that is relevant. Where solutions are not just promised in the future - but delivered in the present.Services provided by the Clay Telecom include: International Cell Phone Rental

International Calling Cards

International Roaming

UK SIM Card

Germany SIM Card

Global SIMBenefits from Clay Telecom Free Incoming Calls in most of the countries Itemized Billing Save Forex, Pay in Indian Currency Distribute your number before leaving India Saving of up to 80% on International Roaming Expenses ROAM1

40000 customers are using the Roam1 connection to get the benefits of a dramatically reduced international Roaming mobile bill charges, for both voice and data, while retaining the benefit of a single number that works globally. The customer base is rapidly increasing.

The roam1 global sim card is a unique permanent sim connection that provides the user with free incoming calls in 95 countries and low call rates to India and international destinations. The roam1 global sim offers exceptionally low international calling rates from the gulf countries to India and the rest of the world.Jaxtr; Jaxtr was launched by Philip mob in and touraj parang in 2007.jaxtr uses voice over internet protocol to offer competitive rates as well as free international and long distance calling. Jaxtr reports having 10 million users in 220 countries in 2008.

Jaxtrs is to enable new conversations worldwide. Jaxtr is backed by world-class investors, and is led by a team of passionate entrepreneurs that dream of changing the communications landscape.

OBJECTIVES, SCOPE AND METHODOLOGY. Objectives of the report: -

. Analyzing the competition in the market, comparative analysis of different plans of other operator with existing plans of matrix.

To compare post-paid services with its prepaid.

To study the view points of the customers regarding the services provided by the matrix. To study the responses of customers towards the company.Research methodologyType of research

This is descriptive research as this research includes surveys and facts findings inquires of different kinds.so descriptive research help in knowing about particular item or group of items in other words.it describes the state as it is exist at present.

Sources of dataPrimary data;

Primary data was collected using the following techniques, questionnaires method, direct interview method and observation method.

The main tool used was the questionnaire method. Further direct interview method, where face to face formal interview was taken. Lastly observation method had been continuously observes the surrounding environment he/she works in.

Target geographic area was Bangalore.

To these geographical area questionnaire was filled by 100 people. The questionnaire was a combination of both open ended and close ended questions.

The date during which questionnaires were filled was between 2-3 weeks.

Some dealers were also interviewed to their prospective. Interviews with the honours of retailer of international sim cards were also conducted.

Finally the collected data and information was analysed and compiled to arrive at the conclusions and recommendations given.

Secondary data

Secondary data has been used to support primary data where ever needed .it is used to obtain information on matrix and its competitor history, current issues, policies, procedures etc... Wherever required.Sources of secondary data are online sources, magazines and newspapers.

Scope of the study Study is related to Telecom service providers only.

Study takes into account only big companies about which substantial data is available In an increasingly competitive environment, where global sim card companies fight for the same customers, the companies need to keep the plans as competitive as possible for the companies need to keep the charges allow as possible. With this comparative analysis of different plans chargers, benefits and features, we will able to find out where company is good as compared to the other players in the market and where company can improve. Study also explains the perception of the customers about this brand.

Finally the collected data and information was analysed and compiled to arrive at the conclusion and recommendations given.

Limitations of the Study: -

The data available is secondary, so its credibility depends on the companies which have provided the data.

It is not possible to do comparative analysis of all the products available in the market as so many products are available.

Only major players are covered in the comparative analysis taking in to consideration the investors interest.

The respondents from whom the primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. Lack of time is the basic limitation in the project.

Some respondents/customers refuse to cooperate with the queries.

Data analysis and call rates of the major companiesGraph 1:-

Sample taken in the survey contains 100% respondents with country specific sim card usage.Graph 2:-

Mostly customer like to go with post-paid service.Graph 3:-

Matrix holds more than one third of the country specific sim card market share in Bangalore.Graph 4:-

General mode of payments is credit card, however cheque is the other upcoming means.Graph 5:-

According to the observation we find most of the customers are satisfied with matrixs forex & insurances.Graph 6:-

Maximum customer agrees matrix provide less roaming charges than others.

Graph 7:-

Matrix is the most preferred brand however clay, jaxtr, roam1 are potential competitors in the market.Matrix is the most preferred brand however clay and others are potential competitors in the market.

Graph 8:-

Matrix has more than 60% satisfied customers however clay and others also have more than one third of their satisfied customers.

Graph 9:-

Matrix is known basically for the high quality, trust and reliable services.Graph 10:-

Matrix is the most preferred brand which is been given by customers. MATRIXTARIFF SHEET USACall Rates

Description per minute/per txt/per 100kbPlan-1Plan-2Plan-3

Plan code ATT3914R7

ATT4914R8

ATT5914R9

Plan charges399949995999

Incoming callsFREEFREEFREE

Local outgoing callsFREEFREEFREE

International calls to India 1000 mins free; $0.19 thereafter

1500 mins free; $0.19 thereafter

2000 mins free; $0.19 thereafter

Data

1 GB free; $0.045 thereafter

1.5 GB free; $0.045 thereafter

2 GB free; $0.045 thereafter

Local text$0.150.150.15

International text0.300.30$0.30

Validity21days30days30days

TARIFF SHEET; UK & Western EuropeCall rates

Description-per minute/per text/per 100kbCharges in ukCharges in western European

Plan charges for 30 days39.9939.99

Incoming callsFREEFREE

Local outgoing callsFREE0.19

International calls to IndiaFREE0.19

Data 1 GB FREE; 9.99 per GB thereafter

0.019

Local text0.090.19

International text0.090.19

@ Add on packsValid inAdd on packCodeChargesFree usageAfter free usageValidity

Uk+ EuropeVoice + data combo UK-Europe-Combo-29

29.99 100 mins local calls + 100 mins calls to India + 250 MB data

As per plan15

Uk + Europe

Voice + data combo UK-Europe-Combo-39

39.99 200 mins local calls + 200 mins calls to India + 350 MB data

As per plan30

Uk onlyInternet on smart phone UKDTH090415

9.99500MB GBP 9.99 per GB

15

Uk onlyInternet on smart phone UKDTH140415

14.991GB GBP 9.99 per GB

30

Uk + EuropeInternet on smart phone WEDTH290415

29.99500MB GBP 0.019 per 100 KB

30

Uk + EuropeInternet on smart phone WEDTH490415

49.991GB GBP 0.019 per 100 KB

30

Tariffs in United Kingdom

ParticularsDescriptionMatrix UKWestern EuropeTurkey

Set up feeN/AN/AN/A

Plan chargesFor 30 daysINR100.00INR100.00INR100.00

Free valueFor 30 daysINR100.00INR100.00INR100.00

Incoming callsPer minuteFree0.10

Local out going to land linesPer minute0.040.230.40

Local outgoing [CUG]Per minute0.040.23

Local outgoing to the same mobile networkPer minute0.040.230.40

Local outgoing to other networksPer minute0.080.230.40

International calls to IndiaPer minute0.080.280.70

International textPer text0.080.28

Text {local & international}Per text0.080.230.40

GPRSPer MB0.090.390.39

CLAY

Australia sim card

Featured plans0/monthly clay basic aud free incoming & zero rental plans25/fortnightly clay value aud free incoming & min call to India35/fortnightly clay platinum aud free incoming & unlimited local calls

Special features

Setup freeINR199INR 199INR 199

Rental cost0Aud 25Aud 35

Minimum commitmentINR 500

Incoming callsFREEFREEFREE

Local calls to intra networkAud 0.25/minAud 0.25/minUnlimited

Local calls to cross networkAud 0.25/minAud 0.25/minUnlimited

Call-back to IndiaAud 0.65/minAud 0.65/minAud 0.65/min

Sms localAud 0.25/minAud 0.25/minAud 0.25/unit

Sms internationalAud 0.25/minAud 0.25Aud 0.25/unit

GPRSAud 0.003/kbAud 0.003/kbAud 0.003/kb

BRAZIL SIMCARDFeatured plansclay basic brl 0/monthly free incoming & zero rental plan

Special features

Setup freeINR 199

Rental cost0

Minimum commitmentINR 500

Incoming callsFree

Sms internationalbrl 1.30/unit

GPRSBrl 0.02

Local outgoingbrl 0.52/min

Other local calls in brazilbrl 1.10/min

Call back to Indiabrl 5.00/min

Sms localbrl 0.59/unit

CANADA SIMCARDFeatured plansclay basic cad 0/monthly zero rental plan

Special features

Setup feeINR199

Rental cost0

Minimum commitmentinr 500

Incoming callscad 0.30/min

Local callscad 0.30/min

Call back to Indiacad 0.89/min

Sms localcad 0.25/unit

Sms internationalcad 0.35/unit

EUROPE SIMCARDFeatured plansclay value gbp 7/monthlyclay platinum gbp 12/weeklyClay basic gbp 0/monthly

Special featuresfree incoming 150 minutesfree incoming planZero rental plans

Setup fee199199199

Rental cost692.231186.680

Minimum commitment500500500

Roaming ;incoming in Europe4.9445/minFree4.9445/min

Local GPRS0.9889

Roming;outgoing in Europe28.6781/min28.6781/min28.6781/min

EU roaming to India58.3451/min58.3451/min58.3451/min

EU roaming sms28.6781/unit28.6781/unit28.6781/unit

International sms28.6781/unit28.6781/unit

EU roaming GPRS0.9889/10KB0.9889/10KB0.9889/10kb

JAXTRLocationMobileLandline

Albania$0.312/min$0.156/min

Austria$0.204/min$0.204/min

Argentina$0.180/min$0.024/min

Australia$0.120/min$0.120/min

Belarus$0.264/min$0.420/min

Belgium$0.216/min$0.048/min

Bermuda$0.096/min$0.096/min

Brazil$0.300/min$0.060/min

Bulgaria$0.312/min$0.036/min

Canada$0.024/min$0.012/min

Chile$0.024/min$0.480/min

China$0.036/min$0.024/min

Colombia$0.132/min$0.108/min

Congo$0.444/min$0.168/min

Cuba$1.056/min$1.008/min

Denmark$0.240/min$0.024/min

Egypt$0.204/min$0.180/min

Estonia$0.264/min$0.024/min

Ethiopia$0.324/min$0.300/min

Finland$0.072/min$0.048/min

France$0.204/min$0.204/min

Gambia$0.420/min$0.300/min

Georgia$0.192/min$0.084/min

Germany$0.228/min$0.036/min

Greece$0.252/min$0.024/min

Green land$0.480/min$0.564/min

Guinea$0.468/min$0.420/min

Hong Kong$0.024/min$0.024/min

Iceland$0.228/min$0.024/min

India$0.024/min$0.024/min

Indonesia$0.156/min$0.084/min

Iraq$0.192/min$0.096/min

Iran$0.144/min$0.108/min

Ireland$0.204/min$0.024/min

Italy$0.240/min$0.036/min

Japan$0.144/min$0.108/min

Jersey$0.228/min$0.024/min

Kuwait$0.120/min$0.120/min

Libya$0.408/min$0.372/min

Madagascar$0.276/min$0.276/min

Malawi$0.144/min$0.144/min

Malaysia$0.048/min$0.024/min

Mexico$0.072/min$0.060/min

Netherlands$0.276/min$0.024/min

New Zealand$0.300/min$0.024/min

Nigeria$0.240/min$0.192/min

Norway$0.204/min$0.204/min

Panama$0.156/min$0.036/min

Poland$0.228/min$0.048/min

Portugal$0.276/min$0.024/min

Romania$0.288/min$0.072/min

Singapore$0.024/min$0.024/min

Spain$0.228/min$0.024/min

Sweden$0.168/min$0.024/min

Switzerland$0.348/min$0.048/min

Uganda$0.156/min$0.156/min

Ukraine$0.144/min$0.180/min

United states$0.024/min$0.012/min

United kingdom$0.192/min$0.036/min

ROAM1UK grand

plan amountINR 3500

Card typeGlobal (+44) NO.

Validity30 days

Talk time

Incoming calls FREE

Local calls300 minutes

India calls

Local smsINR 10/sms

International smsINR 20/sms

GRANDPlan amountINR 3500

Card typeGlobal (+44) NO.

Validity30 days

Talk timeINR2750

Incoming callsFREE

Local callsFREE

India callsFREE

Local smsFREE

International smsFREE

Call Rate ComparisonOne simRoam1JaxtrUniconnectClay

Usa to India$0.49Unlimited to 1st 5 dialled numbers$0.090Unlimited calls on first 5 numbers additional 500 minutes credit to India on any other number$0.75

Australia to India$0.39200 min free$2.380RS.1.13$0.65

Dubai to India$0.69NA$0.290RS.9.6$1.99

Uk to India$0.39400min free$0.150RS.1.98$0.45

Germany to India$0.49NA$0.150Landline Rs.0.79Mobile Rs.1.57$0.45

France to India$0.49NA$0.150Landline RS.0.79 Mobile(10pm-6am)-RS.1.58,mobile(6am-10pm)-RS.3.15$0.45

Italy to India$0.49NA$0.150RS.21.73$045

Netherlands to India$0.49NA$0.150Landline RS.7.53|mobie RS.10.04$0.45

Spain to India$0.49NA$0.150RS.0.94$0.45

Switzerland to India$0.65NA$2.199RS.12.32$0.55

Turkey to India$0.49NA$0.286RS.54.64$0.55

China to India$0.29NA$0.259RS.3.87$0.60

Malaysia$0.7565min free$0.855RS.2.64$0.65

Singapore$0.75NA$0.692RS.4.79$1.25

Vietnam$0.55NA$1.129NA$0.70

Cambodia$1.50NA$0.674RS.7.32$1.05

Findings

Findings; With the advent of the fourth generation mobile technology.The challenges before uthority is to deliver the benefits of technology more widely to the subscribers considering many issues. If we subscribe to domestic network in home country. It has the monopoly on the subscriber roaming charges. GSM Roaming, which involves roaming between gsm networks, offers the convenience of a single number, a single bill and a single phone with world wide access to over many countries. Getting an international sim card is quite simply the most convinient & cost effective way of making and recieving calls in over many countries. Choosing the best sim card service provider is very difficult, why because the offers are different. It is very difficult to compare. Company is reluctant to share the strategic information with the employees (product, services and prices). Jaxtr charging different charges for the European countries but the other three are charging same charges for the whole European countries. Four companies (matrix, clay, jaxtr, Roam1) are providing different combos. Competition is very high .but, there offers are dissimilar.one company is providing less call costs and the other is providing more data for less cost. Only matrix and clay are providing data card services in the compared companies. Mostly customers like to go with post-paid services. Matrix holds more than 1/3rd of the specific sim card market share in Bangalore. General mode of payments is credit card (49%), however cheque is the other upcoming. Matrix (28%) is most preferred brand however clay, jaxtr, roam1 are potential competitors in the market. Matrix has more than 60% satisfied customers however clay and others have more than 1/3rd satisfied customers. Recommendations Company needs greater awareness of its product among target audience.

Company should promote the brand name of matrix to create more awareness among people.

There are only two branch offices in Bangalore (Matrix). Company should open more branches to target more people.

Company should reduce the call charges in order to make the products more competitive.

The company should spend on the promotional activities like advertisement in television, newspapers to create more awareness of the product. The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then customer may continue buy the goods and can be a permanent customer for the company. Schemes and plans provided by the company should be attractive enough to have the kind attention of customers and strong enough to meet the competitive environment.

Matrix should try to share more information with the employees .So, that they can contribute more towards organizational goal.ConclusionAfter comparison of the plans of these four companies, it is concluded that call charges are varying significantly between companies. Competition is increasing in cellular market day by day as there are many companies are operating this business. All of them are trying to increase their market share giving lots of facilities. In future as a market leader Matrix should focus more on customer service area to keep customers loyal.References(http://www.trai.gov.in/Content/TelDis/52_1_1.aspx, 2015) (2015) (https://www.clay.co.in/landingpage-international-SIM-card.aspx?utm_source=GooglePPC&utm_medium=ClayTelecom&utm_campaign=lead&gclid=CImzzazS-MUCFdYXjgodgLEAQA, 2015) (matrix.com, 2015) (https://jaxtr.com/, n.d.) (http://www.roam1.com/, 2015)AnnexureTerms & Conditions: In case the SIM card is returned after delivery, a cancellation charge of Rs. 299 shall apply

The above plan is valid only for use in USA. Any usage made outside USA, is subject to roaming rates, approximately $10/ minute; or as applicable by the network

These plans are not valid for use, while on a cruise or a flight. Usage during a cruise or a flight is charged at high rates at the discretion of the cruise lines/ airlines

A setup fee of Rs.199 is applicable on the above tariff.

The data usage included in the plans is not valid for use on Blackberry phones.

There will be a surcharge of 12% applicable on the total invoice value

Data/GPRS will be billed in 100KB increments

Data/GPRS services shall be activated on all SIM cards and shall be charged in a similar way as SMS/calls, i.e., the more you use, higher the charges would be

Using internet for watching videos (e.g., YouTube), making VoIP calls (e.g., Skype), sending pictures/videos on chat (e.g., WhatsApp) and navigation (e.g., Google maps) can consume lot of MBs, so be careful while using these

The above plan is valid for validity period mentioned. In case the trip is extended beyond the validity period, the plan charges will get rolled over on pro-rata basis.

The data packs are valid for validity mentioned. In case the trip is extended beyond the validity period, the pack charges will get rolled over

Airtime rates are applicable on all toll free numbers

The bill is calculated as per the prevailing Standard Chartered Bank exchange rates on the bill generation date

Service tax shall be applicable as per Govt. regulations

QuestionnairePersonal information:Name of m/sAddressPhoneE-mail1. Type of outlet:

(a) Corporate office (b) Airport (c) Travel agents

2. Which type of sim cards do you like most?(a) Prepaid (b) post-paid3. Mode of payment is:

(a) Cash (b) cheque (c) credit card (d) any other

4. Do you feel that call rate on international roaming is less than others:

(a) agree (b) strongly agree (c) disagree (d) strongly disagree

5. Basically which of the operators you deal with?

(a) matrix (b) clay (c) uniconnect (d) roam1 (e) reliance (f) others6. How many times in a year do you visit foreign country?(a) less than 10 (b) less than 20 (c) less than 30 (d)more 30

7. Do you think that forex & insurance services offered by matrix is better?(a) agree (b) strongly agree (c) disagree (d) strongly disagree8. Since how long you are in the business/profession?(a) 0-1year (b) 1-3years (c) 3-5years (d) 5 or more years

9. Since how long you are dealing with matrix?

(a) 0-1year (b) 1-3years (c) 3-5years (d) 5 or more years

10. Which connection do the customers prefer when they come at your doorstep?(a) Matrix (b) clay (c) uniconnect (d) roam1

11. Customers perception about matrix:

(a) poor (b) average (c) good (d) excellent

12. What is the ranking of various operators in terms of fewer complaints?

(a) matrix (b) clay (c) uniconnect (d) roam1

I value your suggestions

ThanksPAGE 4