market analysis of reliance communications

1

INTRODUCTION TO THE TOPIC

INTRODUCTION TO TELECOM

Ever since the evolution of man on this earth, he wanted to communicate with his fellow

human being. In that era, he used to communicate through signs and symbols. Gradually

with time, he started using words and today it is through mobiles, e-mails, fax etc through

which one communicates from one place to another.

The word Telecom (which is an abbreviated version of ' telecommunication) in real

sense refers to the Interaction & transfer of information between two distant points in

space. This meaning however, has been subjected to modifications in accordance with

further innovations made be the Telecom Industry.

SCENARIO OF INDIAN TELECOM INDUSTRY IN INDIA

In 1880, two telephone companies namely The Oriental Telephone Company Limited

and The Anglo-Indian Telephone Company Limited approached the Government of

India with the objective of establishing Telephone Exchanges across the country. Initially,

the Government denied the permission as it wanted to exercise its monopoly power over

the promising industry once it emerged. By the following year, it changed its decision and

finally on 28th January, 1882, license was granted to The Oriental Telephone Company

Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai and

Ahmadabad.

CHAPTER ONE

2

The opening of exchanges was followed by further innovations and improvements in all

sections of the telecom industry. However, while telephones were introduced in the major

towns and cities across the country during the British period, total number of telephones

in India in 1948 were merely 80,000.The growth was negligible even after independence

and the telephone was used as a status symbol by the rich despite being an extremely

essential device of public utility. This sluggish rate of growth continued till 1991 when

the number of telephones was 5.07 million.

The period post 1975 saw resurgence in the India Telecom Market by virtue of a series of

fruitful decisions initiated by the Government which included:

The separation of Department of Telecom (DOT) From Post and Telegraph (P&T) in

1975.

The formation of Mahanagar Telephone Nigam Limited (MTNL) out of (DOT) to provide

telecom services exclusively to Delhi and Mumbai.

In the 1990s, the telecom sector was opened up by the Government for private investment

as a part of Liberalization-Privatization-Globalization Policy.

On 1/oct/2000, the Government corporative its operations wing under the name of

Bharat Sanchar Nigam Limited

(BSNL).

The Indian telecom industry is going through phenomenal growth. With 100 million

installed mobile subscribers, adding four million new subscribers every month, and the

cheapest mobile rates in the world at two cents per minute, it is not surprising that all the

telecom vendors are vying for a piece of this action. Major new trends unseen in previous

markets have emerged during the last five years.

3

Start-ups and established vendors involved in the telecoms eco- system need to take heed

and develop appropriate strategies in order to take advantage of this new high-growth

opportunity.

The telecommunications industry is at the forefront of the information age-delivering

voice, data, graphics and video at ever increasing speeds and in an increasing number of

ways. Whereas wire line telephone communication was once the primary service of the

industry, wireless communication services and cable and satellite program distribution

make up an increasing share of the industry. During the late 1990s, the

telecommunications industry experienced very rapid growth and massive investment in

transmission capacity. Eventually this caused supply to significantly exceed demand,

resulting in much lower prices for transmission capacity. The excess capacity and

additional competition led to either declining revenues or slowing revenue growth, which

has led to consolidation within the industry, as many companies merged or left the

industry.

The largest sector of the telecommunications industry continues to be made up of wired

telecommunications carriers. Establishments in this sector mainly provide telephone

service via wires and cables that connect customers premises to central offices

maintained by telecommunications companies. The central offices contain switching

equipment that routes content to its final destination or to another switching center that

determines the most efficient route for the content to take. While voice used to be the

main type of data transmitted over the wires, wired telecommunications service now

includes the transmission of all types of graphic, video, and electronic data mainly over

the Internet.

4

The telecommunications industry offers steady, year-round employment.

The business environment for Indias telecommunications industry is excellent. The

government policies have encouraged the growth, increased competition and high levels

of foreign direct investment (up to 74% foreign investment is now allowed). The Indian

governments goal is to provide an environment where service companies, handset

manufacturers and network companies will invest in India and use India for research and

development work (R&D).

The favorable business environment has attracted a number of foreign multinational firms

such as Hutchison, Vodafone, Nokia and Malaysia Telecom. In my opinion the real edge

for India will be the R&D facilities being setup there which can provide innovation for

next generation technologies - not only for India but for everywhere else as well.

Indian Telecom sector, like any other industrial sector in the country, has gone through

many phases of growth and diversification. Starting from telegraphic and telephonic

systems in the 19th century, the field of telephonic communication has now expanded to

make use of advanced technologies like GSM, CDMA, and WLL to the great 3G

Technology in mobile phones. Day by day, both the Public Players and the Private

Players are putting in their resources and efforts to improve the telecommunication

technology so as to give the maximum to their customers.

The telecom network in India is the fifth largest network in the world meeting up with

global standards. Presently, the Indian telecom industry is currently slated to an estimated

contribution of nearly 1% to Indias GDP.

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INDIAN TELECOM STATISTIC AND MAJOR PLAYER

Total telephone subscriber 429.72 Over-all Tele-density 36.98% Fixed-line user base 37.96% Wireless user base 391.76

( GSM+CDMA+WLL) GSM Subscribers 288.36 CDMA Subscribers 103.4 Monthly new additions(wire line+wireless) 15.87%

In communication market Airtel capture 24% of share at the same time Reliance

communication have a market share 22 %. Reliance communication faces major

competitions from the Airtel and the other service providers. In a recent survey shows the

Indian telecom statistics.

6

SCOPE OF TELECOM INDUSTRY

The telecom industry is growing at a great pace and the growth rate is expected to double

with every passing year. There are many new developments in the telecomm sector,

including the ingress of 3G technology that the Indian market is witnessing

at present. Public and Private Players MTNL, BSNL, VSNL are the major Public Players,

whereas Airtel, Idea, Hutch, Tata, Reliance, BPL are the leading Private Players in the

country. Some of them are entering foreign markets as well.

OPPORTUNITIES IN INDIA

In the past 3 years has been surveyed by Indian Ministry of Communications and

Information Technology in New Delhi very recently. The telecom sector is one of the

leading contributors to India's flourishing economy. According to the report presented by

taking into account the statement of Indian Ministry of Communications and Information

Technology, the telecom opportunities in India has been growing by 20 to 40 % every

year since past 3 years.

The telecom services in India have been recognized as a world-class tool for the socio-

economic development in India. India is known to rank fourth in the telecom industry in

Asia after China, Japan, and South Korea and the telecom network in India is known to

stand in the eighth position across the globe and second among the emerging economies.

The world average percentage for the telecom industry as against the Indian average is

7.5 times while the Asian average against the same was 4.5 times. The current market

range of the telecommunication industry in India has been estimated to USD 8 billion and

this is expected to undergo an accretion by the end of 2012.

7

The growth witnessed by the telecom market in India has increased the number of

opportunities for the industry and this has been fueled by the growing mobile sector,

which has attained the consumer level of 10 million by the end of December 2002 that

was almost 100 percent in the year. Telecommunication Sector Opportunities in India

assures a transparent, safe, and secured ambiance for the telecom market. Around 300

million population of highly consumable middle-class status that is advantageous for the

industry surrounds the telecom sector in India. This is because, in some of the Indian that

possess land line telephones can be substituted by mobile phones that is very unlike the

developed countries. Therefore, it adds up to the growth in mobile sector in Indian

telecom industry.

Few more Telecommunication Sector Opportunities in India include introduction of

Internet telephony services, privatization of VSNL, and introduction of a number of

international long distance services sector. The opportunities in the Indian telecom sector

is increasing at a massive pace with the introduction of newer and innovative schemes in

various sectors and at present the telecom sector in India is claimed to be one of the major

contributors in India's flourishing economy.

Public Players have more than 60% of the market share

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MAR KETING STRATEGIES OF RELIANCE INDIA

MOBILE.(RIM)

Rim target the rural India

The main targeted customers of Rim are from rural India. By offering cheap and light

mobile sets Rim attracts most of the customers Of small villages and towns.

Offering cheap handsets

Rim offers cheap and free connections to all costumers.

The cost for Rs-700\set and onward.

Free support and services

In every district and big towns rim opens its service centers to provide better support and

services.

Strong logistics and supply chain

Rim has a strong logistic and supply all over India. In every small town the potential

costumers can easily purchase the rim sets.

Targeting youngsters in metropolitans

Rim attracts youngsters by offering colorful handset at Very low prices.

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Brand positioning by Rim

Market segmentation

Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

Marketing mix

Price : low price strategy

Place : maximum outlets and service centers

Product : varieties available for various groups

Promotion: various schemes for pre-paid and post-paid

Plan name Plan

1000

Monthly Plan

Charge (Rs.)

1000

Free Calls

Worth (Rs.)

1000

Rate per Call

Unit(Rs./Pulse)

1.00

Refundable

Deposit for ILD

(Rs.)

1000

Smart Office- Tariff plans OF RIM

Plan

1000

Plan

1500

Plan

2000

1000 1500

2000

1000 1500

2000

1.00 0.90

0.85

1000 1000

1000

10

11

Smart Office - Call charges

Call unit

Length(Pulse)

(Sec.)

Plan 1000 @

Re. 1.00 /

Pulse

Plan 1500 @

Rs. 0.90 /

Pulse

Plan 2000 @

Rs. 0.85 /

Pulse

Calls to

Fixed

lines

Local Calls

(including

Intra-

circle < 50

kms)

180 0.33 0.30 0.28

Intra-circle

> 50 kms 60 1.00 0.90 0.85

Inter-

circle

0 -

50

kms

90 0.67 0.60 0.57

> 50

kms 30 2.00 1.80 1.70

Calls to

RIM

Intra-circle 120 0.50 0.45 0.43

Inter-circle 60 1.00 0.90 0.85

Calls to

other

mobiles

Intra-circle 60 1.00 0.90 0.85

Inter-circle 30 2.00 1.80 1.70

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Effective Rate/Min is indicative. Charging would be done on thebasis of Call Unit Length

(Pulse). Call Unit Length (Pulse) is theduration of a call after the expiry of which, a new

call starts. E.g. inPlan 1000 , a call to a local fixed line will be charged at Re. 1.00 fora

180 second call (or part thereof). Once you cross the 180 secondCall Unit Length (Pulse),

you will be charged another Re.1.00 whichwill allow you to talk for another 180

seconds.Note: Calls between Mumbai-Maharashtra, Chennai-Tamilnadu,

Kolkata-West Bengal, UP(East) - UP (West) will be treated as Intra-Circle calls.

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International Long Distance Rates

International Long Distance

(ILD) Rates

Call Unit

Length

(Pulse) (Sec.)

Rates (Rs.)

Plan

1000

Plan

1500

Plan

2000

USA^, Canada & UK (Fixed) 60 6 5 5

UK (Mobile) & Rest of

Europe 60 7.5 7 6.5

South East Asian Countries

(Singapore, Hongkong,

Malaysia, Indonesia,

Thailand)

60 7.5 7 6.5

Rest of the world ** 60 10 9 8.5

Excluding the following countries - Cook Island, Cuba, Deigo Garcia, Guinea Bissau,

Nauru, Norfolk Island, Sao Tome, Sakhalin, Solomon Island, Tokelau, Tuvalu, and

Vanuatu. The ILD rates for these countries would be Rs.40/min.

For Alaska & Hawaii, call rates of "Rest of World" apply.

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Call Rates to Satellite Phones

INMARSAT CALL RATES:

Region Call Unit

Length (Pulse) (Sec.) Rate (Rs.)

Atlantic Ocean East 1 5.83

Pacific Ocean 1 5.83

Indian Ocean 1 5.83

Call rates for other plans can be calculated based on the applicable Rate per Call Unit in

the chosen plan

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Internet Usage Rates

Depicted for

Plan 1000

ISP

Charges

(Rs./Min.)

Call

Unit

length

(Pulse)

(Sec.)

Rate /

Call Unit

(Rs.)

Effective

Rate /

Min

(Rs.)

Total

Charges

Rs/ Hr.

Peak Hour

Rates on all

days(06:30 -

22:30)

0.10 450 1.00 0.13 14

Off-Peak

Hour Rates

on all days

(22:30 -

06:30)

0.10 900 1.00 0.07 10

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Services provided by Reliance Infocomm.

mobile services with CDMA technology

fixed-line telephone services

Universal Internetworking

VoIP (Voice over Internet Protocol)

Interactive Television

Visual Communication

Broadband Portal

Telecommuting

Voice Services:

1. Centrex-

Salient Features Centrex (Smart Office)

It is a simple wire line digital phone which provides you a feature-rich telephone service

with NextGen Caller ID, Speakerphone and Mobile phone Features ensures maximum

convenience for you right from the first call. We call this product as smart office, because

it ensures to give your budget the maximum output at the minimum cost.

Direct Line for every user: Every user has a direct line and a direct number. The callers

dont have to go through an operator. Load on the operator is reduced, thus requiring

fewer operators.

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Extension (intercom) number for every user: All users within Smart Office can call

each other by dialing short digit extension numbers. And of course calls made within the

Smart Office group are free.

Class of Service can be defined for every line such that it becomes possible to restrict

type of calls made from it. Various calling facilities are available Viz. Intra-Office calling

only, local + Intra-state long distance, Local + National long distance or Local + National

long distance + International long distance.

Attendant Console (Optional): An operator console can be set up to attend to the callers

who do not know the direct numbers. Calls coming

to the Attendant console are queued. This is a PC based console designed to efficiently

handle the incoming calls with standard Attendant console features. PC should be

provided by customer.

All standard PBX features are available with the Reliance Smart Office solution

Call Management features: You can keep an ongoing call on hold or transfer it as you

wish. You can set call forward rule Call Forward on Busy, Call Forward on No reply or

forward all incoming calls to any local Reliance number.

Absentee Subscriber Service: If you are out of office, this facility will play a message

saying so. And your callers will not have to keep trying your number.

Ten party conferences: Conferencing is no more limited to 3 or five parties. Up to 10

party conferencing is possible with the Reliance Smart Office solution.

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Manager - Secretary Working: Allows secretaries to screen calls for managers before

transferring.

Call Pick up groups: Any phone ringing within the group can be picked up by another

phone in the same group by dialing a Call Pick up code. This allows fellow colleagues

within a department to receive calls for their colleagues (who are not on their desks)

without having to actually go to the ringing phone feature rich Speakerphone is provided

to every user within the Smart Office for dialing convenience and hands free talking.

The Reliance phone will ensure that a user will always know his caller since CLIP

(Calling Line Identification Presentation) facility is provided on every Reliance Smart

Office line. Additionally, in case of calls coming from PSTN (i.e. from outside Smart

Office group), Call Waiting CLIP is also available.

Features like Missed Call Information & Call forwarding: It ensure that you never

miss a call when you are away from your desk. Note: Current inter-connect rules permit

Call Forwarding to Local Reliance phones only.

A Phone Book: To store the telephone numbers along with the name of the person is also

available for the convenience of the user. The user can search by name within the Phone

Book.

The Delayed Hotline facility: It allows the user to get connected to a frequently dialed

preset number without having to dial it every time. This preset number gets automatically

dialed once the handset goes Off-hook and there is no activity for 7 seconds.

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Value Proposition:

1. Carrier grade service

Unlimited scalability

Maintenance free

Obsolescence proof

Carrier grade service reliability

Self-healing fiber optic ring network

Uptime levels better than that of a hot standby duplex PBX

2. Outsourced solution with Zero Investment: Since you dont have to own any

equipment, your capital is free to be deployed in your core business.

3. The Reliance Phone Experience Feature-rich telephone service with NextGen Caller

ID, Speakerphone and Mobile phone Features ensures maximum convenience for you

right from the first call.

4. Digital PBX functionality

Direct Inward Dialing (DID)

Intercom

Attendant console (Optional)

5. Shared Commitment Plans You need not worry about not being able to consume

your Free Calls on some lines. Your monthly commitment is set off against combined

usage of all the lines put together i.e. free call worth of all lines is pooled together

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SWOT ANALYSIS

The SWOT Analysis template is normally presented as a grid, comprising four sections,

one for each of the SWOT headings: Strengths, Weaknesses, Opportunities and Threats.

The free SWOT template below includes sample questions, whose answers. Note that

many of the SWOT questions are also talking points for other headings use them as you

find most helpful, and make up your own to suit the issue being analysis, because a

SWOT analysis is a perspective of one thing, it a company, a product, a proposition, and

idea, a method, or option, etc.

STRENGTH

WEAKNESS

Low Entry Cost Branding Image

Commission Structure Distribution problem

Fast Activation Process Limited product portfolio- Only Mobile

Network

Lack of Competitive Strength

Connectivity Limited Budget

Data GPRS

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OPPORTUINTY

THREATS

Preference of GSM over CDMA

Political destabilization.

New Specialist Application

New Entrants

Rural Telephony

IT Development

New Market, Vertical, Horizontal

Market Demand

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COMPARISON

Additional Entry Cost Comparison

Reliance Airtel Advantages of

Reliance

Activation Fee

Rs.150-330 Rs.250-500 Lower

activation fee

Deposit Nil Rs.250-500 No STD

deposit

Total Entry

Cost

Rs.150-330 Rs.500-1000

Reliance have the lowest overall entry cost when compared with the competition.

There is zero deposit for STD calls even for individual retail customer.

In the case of Airtel deposit waiver is granted only to high value corporate / SME

clients.

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SME Plan Comparison

Competition Competition

Proposition

Our Counter Advantages

Airtel Ambuja plan-Rs.199

rental-local calling

30p/80p & STD

Rs.1.25

NJ 199 SOHO- Rs.199

rental; Rs.150

talktime free; local

calls-50p/1 & STD-

2.5/min.

Free local off

net calling

available &

free CUG

Idea SME plan-Rs.199

rental - local calling

30p/80p & STD

Rs.1.25

NJ 199 SOHO- Rs.199

rental; Rs.150


calls-50p/1 & STD-

2.5/min.

Free local off

net calling

available &

free CUG

VODAFONE SME plan-Rs.225

local calls 50p/1 &

STD Rs.1.5; CUG @

10p/min.

NJ 199 SOHO- Rs.199

rental; Rs.150


calls-50p/1 & STD-

2.5/min.

Free local off

net calling

available &

free CUG

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Reliance Hello Plans Comparison

BSNL (wire line)

One

India

General Economy Special

Activation fee 500 500 500 500

Securitydeposit 1000 1000 1000 1000

NLD deposit 2000 2000 2000 2000

Fixed cost 180 180 300 475

Free talk time 30 50 200 500

Call rates

On net 1/3

min.

1.2/3min. 1.2/3min. 1.1/3min.

Mobile 1/min. 1.2/min. 1.2/min. 1.1/min

Landline 1/min. 1.2/min. 1.2/min. 1.1/min

NLD on net 1/min. 1.2/30sec. 1.2/30sec. 1.1/30sec.

NLD mobile 1/min. 1.2/30sec. 1.2/30sec. 1.1/30sec.

NLD landline 1/min. 1.2/30sec. 1.2/30sec. 1.1/30sec.

25

BSNL has hidden entry charges-security & NLD deposit

TATA

One India H2M 125 City 299 Silver 499

Activation fee 561 561 561 561

Securitydeposit Nil Nil Nil Nil

NLD deposit 500 500 500 500

Fixed cost 180 175 299 499

Free talk time 50 0 155 470

Call rates

On net 1/3 min. 1.2/3min. 0.5 min. 1.1/3min.

Mobile 1/min. 1.2/min. 0.5/min. 1.1/1 min

Landline 1/min. 1.2/min. 1.2/min. 1.1/min

NLD on net 1/min. 1.2/3min. 1.2/3min. 1.2/3min.

NLD mobile 1/min. 2.4/min. 2.4/min. 2.4/min.

NLD landline 1/min. 2.4/min. 2.4/min. 2.4/min.

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ADVANTAGES

Over Airtel

R Connect The Reliance CDMA 20001X technology and pan India coverage

enables to get online from almost any location in India.

People can use the data card from Reliance with your laptop or the USB modem

with your desktop or laptop.

Speed up to 144 kbps.

Significantly faster then dial-up connections & not restricted to the home / office

like wired broadband.

Use across India in more then 5700 villages. Not limited to major cities like GPRS

& EDGE.

The true definition of mobility

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ADVANTAGES

Over TATA

Reliance has the wider coverage area & hence its range of usage is better in both

cities as well as rural areas.

Reliance is the only operator that provides internet access via data card/USB

modem in prepaid format as well.

Customer have facility to recharge with low denomination vouchers &

subsequently use top ups thereby lowering access cost.

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Top Players (Based on subscribers): (09/10)

Rank Company No. of

Circle

Subscribers (in mn) Growth

(in %)

Market

Share (in

%)

FY 08-09 FY 09-10

1 Bharti Airtel 23 19.58 37.14 89.7 23.7

2 BSNL 21 18.45 27.93 51.4 17.8

3 Reliance 23 17.31 27.85 60.9 17.7

4 Hutch 22 15.36 26.44 72.1 16.8

5 Idea 11 7.37 14.01 90.1 8.9

6 TTSL 20 4.85 11.43 135.7 7.3

7 Aircel 23 2.61 5.51 111.1 3.5

8 MTNL 2 1.99 2.75 38.2 1.8

9 Spice 2 1.93 2.73 41.5 1.7

10 BPL (Mumbai) 1 1.34 1.07 -20.1 0.7

11 HFCL infotel 1 0.06 0.07 16.7 0.0

Total 150 90.88 156.97 72.7 100.0

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Top Players (Based on Revenue):

Rank Company No. of

Circle

Revenue (in crore) Growth

(in %)

Market

Share (in

%)

FY 08-09 FY 09-

10

1 Bharti Airtel 23 8,239 13,431 63.0 23.9

2 Reliance 23 6,673 10,728 60.8 19.1

3 Hutch 22 6,837 10,565 54.5 18.8

4 BSNL 21 6,467 9,400 45.4 16.7

5 Idea 11 2,990 4,335 45.0 7.7

6 Tata

Teleservices

20 1,878 4,092 117.9 7.3

7 Aircel 23 977 1,507 54.2 2.7

8 Spice 2 671 783 16.7 1.4

9 BPL (Mumbai) 1 655 505 -22.9 0.9

10 MTNL 2 573 807 40.8 1.4

11 HFCL infotel 1 22 20 -9.1 0.0

Total 150 35,994 56,183 56.1 100.0

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COMPANY PROFILE

FOUNDER OF COMPANY

Few men in history have made as dramatic a contribution to their countrys economic

fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left

behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true

genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot,

the leader of men, the architect of Indias capital markets, the champion of shareholder

interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth

creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest

private sector enterprise.

Reliance Communications is the outcome of the late visionary Dhirubhai Ambani's

(1932-2002) dream to herald a digital revolution in India by bringing affordable means of

information and communication to the doorsteps of India's vast population.

CHAPTER TWO

31

"Make the tools of communications available to people at an affordable cost, they will

overcome the handicaps of illiteracy and lack of mobility", Dhirubhai Ambani charted out

the mission for Reliance Communications in late 1999. He saw in the potential of

information and communication technology an once-in-a-lifetime opportunity for India to

leapfrog over its historical legacy of backwardness and underdevelopment.

Reliance Communications is Indias largest information and communications service

provider with over 30 million subscribers. The company is the realization of our

founders dream of bringing about a digital revolution that will provide every Indian with

affordable means of communication and a ready access to information.

The flagship company of the Reliance ADA Group, Reliance Communications began

operations in 1999 and has over 30 million subscribers today. It offers a complete range

of integrated telecom services. These include mobile and fixed line telephony, broadband,

national and international long distance services, data services and a wide range of value

added services and applications aimed at enhancing the productivity of enterprises and

individuals.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely

US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this

fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned

Reliance a place on the global Fortune 500 list, the first ever Indian private company to

do so.

Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when

Reliance Textile Industries Limited first went public, the Indian stock market was a place

patronised by a small club of elite investors which dabbled in a handful of stocks.

32

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors

to participate in the unfolding Reliance story and put their hard-earned money in the

Reliance Textile IPO, promising them, in exchange for their trust, substantial return on

their investments. It was to be the start of one of great stories of mutual respect and

reciprocal gain in the Indian markets.

Thoughts Of The Legend-Late. Dhirubhai Ambani

33

Chairman's Profile

Anil Dhirubhai Ambani Regarded as one of the foremost corporate leaders of

contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group

companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and

Reliance Natural Resources Limited. Till recently, he also held the post of Vice Chairman

and Managing Director in Reliance Industries Limited (RIL), India's largest private sector

enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally

involved in every aspect of the company's management over the next 25 years.

He is credited with having pioneered a number of path-breaking financial innovations in

the Indian capital markets. He spearheaded the country's first forays into the overseas

capital markets with international public offerings of global depositary receipts,

convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to

rise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company

in January 1997.

34

He is a member of:

Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

Board of Governors Indian Institute of Technology, Kanpur.

In June 2004, he was elected for a six-year term as an independent member of the Rajya

Sabha, Upper House of India's Parliament a position he chose to resign voluntarily on

March 25, 2006.

Awards and Achievements:

Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards

Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the

Business Barons - TNS Mode opinion poll, 2004

Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management

Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India

Economic Forum (WIEF) in recognition of his contribution to the establishment

of Reliance as a global leader in many of its business areas, December 2001

Selected by Asia week magazine for its list of 'Leaders of the Millennium in

Business and Finance' and was introduced as the only 'new hero' in Business and

Finance from India, June 1999.

35

BUSINESS

Reliance Communications will offer a complete range of telecom services, covering

mobile and fixed line telephony including broadband, national and international long

distance services, data services and a wide range of value added services and applications

that will enhance productivity of enterprises and individuals. Reliance India Mobile, the

first of Reliance Communications' initiatives was launched on December 28, 2002, the

70th birthday of the Reliance group founder, Shri. Dhirubhai H. Ambani.

This marks the beginning of Reliance's dream of ushering in a digital revolution in India

by becoming a major catalyst in improving quality of life and changing the face of India.

It aims to achieve this by putting the power of information and communication in the

hands of the people of India at affordable costs.

Reliance Communications will extend its efforts beyond the traditional value chain to

develop and deploy telecom solutions for India's farmers, businesses, hospitals,

government and public sector organizations.

36

NETWORK

Telecommunication networks are the infrastructure for provisioning Communications

services. All businesses today are dependent on telecom to continue their day-to-day

operations. The range and quality of services that can be provisioned is determined by the

quality of the network deployed.

The Reliance Communications network consists of 60,000 kilometers of optical fiber

cables spanning the length and breadth of India. These cables can carry thousands of

billions of bits per second and can instantly connect one part of the country with another.

This physical network and its associated infrastructure will cover over 600 cities and

37

towns in 18 of the country's 21 circles, 229 of the nations 323 Long Distance Charging

Areas (LDCAs) and broadband connectivity to over 190 cities. This infrastructure will be

backed by state-of-the-art information management systems and a customer-focused

organization.

An interesting aspect of the network is the manner in which these fibers are

interconnected and deployed. Reliance's architecture is so fault-tolerant that the chances

of failure are virtually nil.

Reliance's ring and mesh architecture topology is the most expensive component to

implement, but assures the highest quality of uninterrupted service, even in the event of

failure or breakage in any segment of the network. Reliance has 77 such rings across the

country with at least three alternative paths available in metros. Connected on this

topology, the service has virtually no chance of disruption in quality performance.

Reliance's objective is to create value for our customers. Reliance will innovate

ceaselessly so that state-of-the-art technology can be leveraged to create products and

services that are affordable.

Access networks determine the services that can finally be delivered to customer. Our

network has wire line access technologies based on fiber as well as copper. Fiber in the

access network makes broadband services easy to deploy. The wireless access network

deployed for CDMA 1X is spectrum efficient and provides better quality of voice than

other networks and higher data rates. CDMA 1X also provides an up gradation path to

future enhancements.

38

RELIANCE - ADA Group

39

R-Com Increases the business with diversified means.

Reliance Communications has established a pan-India, high capacity, integrated (wireless

and wire line) and convergent (voice, data and video) digital network, to offer services

spanning the entire Communications value chain - infrastructure, services for enterprises

and individuals, applications and consulting.

The Business Units of Reliance Communications comprises of six main groups.

Wireless business of Reliance Communications consists of Reliance India Mobile, R

World, Wireless POS for Credit Card transaction processing, Wireless ATM's, Mobile

VPN, Vehicle Tracking System and R Connect. This pan India wireless network runs on

CDMA2000 1x technology, which offers superior voice and data experience compared to

other competing technologies.

Wire line business of R-COM uses leading edge technologies in the fields of Fiber

Optics, Ethernet, and Microwave radios, Switching, Routing, Digital Compression and

Encoding.

Home Net way is a revolutionary concept, which heralds a breakthrough in the worldwide

research and development for providing television on telecommunication infrastructure.

40

Reliance Web World is a countrywide network of retail outlets offering a host of state-of-

the art communication and information services along with food and beverages in a

modern ambience. It probably is also the world's largest network of public access

broadband centers. All Web World outlets have three components: Customer

Convenience Centre, Broadband Centre and Gourmet Caf Reliance is India's largest

Internet Data Centre (IDC) service provider, hosting business critical applications of

Indian and foreign blue chip companies, financial institutions and other important

organizations.

Reliance Communications is also a National Long Distance (NLD) and International

Long Distance (ILD) Service Provider. This business involves the bulk sale of our

Communications capabilities (bandwidth) to carry voice and data traffic for other Service

Providers.

The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector

business houses on all major financial parameters, with a market capitalization of

Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,000 crores (US$ 29

billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion) Across different

companies, the group has a customer base of over 100 million, the largest in India, and a

shareholder base of over 12 million, among the largest in the world.

Through its products and services, the Reliance - ADA Group touches the life of 1 in 10

Indians every single day. It has a business presence that extends to over 20000 towns and

4.5 lakhs villages in India, and 5 continents across the world. The interests of the Group

range from communications (Reliance Communications) and financial services (Reliance

Capital Ltd), to generation, transmission and distribution of power (Reliance Energy),

infrastructure and entertainment.

Reliance Communications Limited

telecommunication company headquartered in Nevi Mumbai, Indian. It is the 16

operator in the 128 million subscribers. RCOM, founded by Dhirubhai H Ambani(1932

2002), is the flagship company of the Relianc

Reliance Anil Dhirubhai Ambani Group currently has a net profit in excess of

crore (US$13.6 billion), cash flows of

8,400 crore ($1.8 billion). The Equity Sha

Exchange Limited and National Stock Exchange Limited.The Global Depository Receipts

and Foreign Currency Convertible Bond are listed on Luxembourge Stock Exchange and

Singapore Stock Exchange respectively.

Type Public

(NSE:

Industry Telecommunications

Founded 2004

Headquarters Navi Mumbai

Key people

Anil Ambani

(Chairman

Satish Seth

(MD)


infrastructure and entertainment.

Reliance Communications Limited (commonly called RCOM

telecommunication company headquartered in Nevi Mumbai, Indian. It is the 16

operator in the 128 million subscribers. RCOM, founded by Dhirubhai H Ambani(1932

2002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The

Reliance Anil Dhirubhai Ambani Group currently has a net profit in excess of

crore (US$13.6 billion), cash flows of 13,000 crore ($2.8 billion), and a net profit of

8,400 crore ($1.8 billion). The Equity Share of RCOM are listed on Bombay Stock



Singapore Stock Exchange respectively.

Public

: RCOM, BSE: 532712)

Telecommunications

Navi Mumbai, Maharashtra, India

Anil Ambani

Chairman)

Satish Seth

41


RCOM) is a major Indian

telecommunication company headquartered in Nevi Mumbai, Indian. It is the 16th largest

operator in the 128 million subscribers. RCOM, founded by Dhirubhai H Ambani(1932-

e Anil Dhirubhai Ambani Group. The

Reliance Anil Dhirubhai Ambani Group currently has a net profit in excess of 64,000

13,000 crore ($2.8 billion), and a net profit of

re of RCOM are listed on Bombay Stock



Products

Wireless

Telephone

Internet

Television

Data Cards

Recharge Vouchers

VC

Revenue $4.774 billion

Net income $1.061 billion

Total assets $20.559 billion

Total equity $9.776 billion

Employees 30,974

Parent Reliance Anil Dhirubhai Ambani Group

Subsidiaries

Reliance Telecom Limited

Reliance Globalcom Limited

Reliance Tech Services

Reliance Communications Infrastructure Limited

Reliance Big TV Limited

Reliance Infratel Limited

Wireless

Telephone

Internet

Television

Data Cards

Recharge Vouchers

4.774 billion (2010)[1]

$1.061 billion (2010)[1]

$20.559 billion (2010)[1]

$9.776 billion (2010)[1]

30,974 (2010)[1]

Reliance Anil Dhirubhai Ambani Group

Reliance Telecom Limited

Reliance Globalcom Limited

Reliance Tech Services

Reliance Communications Infrastructure Limited (RCIL)

Reliance Big TV Limited

Reliance Infratel Limited

42

(RCIL)

43

Website Reliance Communications

1. Reliance Group of 15

2. of 15 Reliance communication Ltd. Type Public (BSE: RCOM) Founded 2004

Headquarters Navi Mumbai, India Key people Anil Ambani , Chairman and Managing

Director [1] , Vice-Chairman Reliance-ADA Group S. P. Sukula CEO - Personal

Business & Director - Reliance Telecom Industry Telecommunications Products CDMA

service, GSM service, Broadband Internet Service Revenue US$ 4 Billion [2] Employees

33,000 Website www.rcom.com

3. Reliance Communications

o Largest integrated communications company in the private sector in India

o Serving over 40 million individual and corporate customers on a global basis

o More than 14,000 Towns covered.

o Strategic presence in all high growth segments - wireless, global and broadband

o One of the largest Next Generation Networks in the world and only one in India

o Investment of USD 5 billion

o Market Cap of about USD 40.00 billion approx.

of 15 Indias fastest customer additions since launch

4. Reliance Communications

o Worlds largest network roll-out covering almost a billion people in India

o Worlds largest IP enabled optic fiber cable network - 230,000 Rkms

o Pioneered wireless affordability in India

44

of 17 Submarine cable assets Of 110,000 Rkms Terrestrial fiber cable metro & intercity

Handset prices down from >$ 50 to 10 cents to

45

o Reliance IPTV

o Enterprises

o BlackBerry

o Office Centrex E1DID

o One Office Duo

o Audio Conferencing

o Reliance PCO

o Toll-Free

o ITFS

o Broadband

o Business Broadband Internet

o Leased Line IPLC VPN

o Video Conferencing

o Internet Data Center (IDC)

o Common Service Center of 15

8. Leading position across multiple segments

o Largest in Enterprise data service ->50% market share

o Largest carrier of Wireless data

o Largest private Public Call Office (PCO) operator >50% Market share

o Carrier of International Long Distance (ILD) voice >40% market share

o US-India retail voice carrier 40% market share

o Internet Data Center (IDC) services 50% market share

o Largest retailer of wireless handsets of 15 1 # and of course leading wireless

customer base in India

46

9. Only Operator to Dimension Network Ahead of Exponential Growth of 15 Coverage at a

Glance 54.66% % of Total Population Covered 6,000 Number of Towns Covered 80

million Customer Capacity 500000 Number of Villages Covered 93.19% % of Railway

Covered 95.00% % of National Highway Covered 67.00% % of Rural Population

Covered 98.25% % of Urban Population Covered Reliance- At a glance By group 6, Gsba

(G. Noida)

10. Robust Infrastructure to Support Customers

o 23,000 towers by March 2009 in 23 circles with capacity of 4014,000 towers co-

tenants.

o Broadband access in 42 Indian cities with 727,000+ buildings connected directly to

network serving over 901,000 access lines

o Deploying Broadband and WiMax network in top 10 cities in the country to cover 4

million SMEs.

Telecom Infrastructure

o 140 acre plot ten acres lush green lawns and eight acre lake

o 5.4 million sq. meter area; 14 buildings ; 12,000 personnel

o Several food courts, banks, ATMs & guesthouses

o Eco-friendly zero discharge facility ; 2252 parking slots; helipad

o Own HVAC and power distribution system

Dhirubhai Ambani Knowledge City


o Largest and most advanced NOC in the world

47

o 300,000 sq ft of data centre space 4x the nearest competitor6 World class Level 3

Data Centers at Mumbai &Bangalore measuring 2.6L Sq.Ft.

o Hosting 9000+ Server Racks and 1400+ TB of storage capacity

o Expansion at Delhi, Chennai, Hyderabad &Kolkata resulting in an additional

capacity of over 800,000 - Sq. ft.

Network Operations and Data Centers

o 2,000 exclusive Reliance World and Reliance Express stores 700+ Indian cities.

o Largest chain of digital entertainment centers in the country

o 5 lakh+ retailers sell connections or recharge of prepaid mobile and FWPs in our

coverage footprint.

o 2nd largest retailer of handsets - with throughput capacity for over 24 million

handsets per annum

Retail Presence


o Comprehensive range of service applications

o Popular across all user demographics and geographies

o Over 200 content partners and over 10,000 content items

o Credit Card on the Mobile

Reliance Mobile World Suite

8,000-employee, multi-lingual contact centre facilities at Navi Mumbai &

Chennai.

48

5L + customers serviced per day through with 10,000 users during peak hours.

Operates on 24x7 basis with online integration with other IT systems in

RCOM.

Contact Centers


More than 1500 Million CDRs per day

More than 1.5 million eRecharge per day

More than 1,800 TB data storage

IT support in more than 6,000 towns for over 60,000 IT users

Data ware house growth : more than 160 GB a day

More than 7 lakh emails a day across group

IT Operations New Products & Services

DTH services to provide DVD quality picture & better viewing experience

IPTV to provide interactive TV & Video services, movies & music on demand,

interactive program guide and gaming

14. Black Berry

o BlackBerry 8703e Best integrated e-mail and phone for travelling executives. of

15 Black Berry 8830

15. Audio Conferencing

o Virtual Audio Bridge Service

o Reservation Based Conference Bridge Service

o Global Event Call Service of 15

49

16. Video Conference of 15

17. Business Broadband Internet of 15 Business Broadband Internet

18. Leased Line

o The most efficient and cost-effective way to connect two offices is a leased line;

o it provides a clear and continuous channel between two end points. Little wonder

that most large enterprises use leased lines for connectivity.

o Reliance's 'end-to-end leased line' is delivered through its state-

of-the-art optic fiber network with its unique self-healing survivable architecture.

o With its 'fiber-to-building' approach, Reliance has reduced the last mile

to just a few meters of in-building copper cabling. of 15 VPN

R eliance virtual private network (VPN) is a private communications network

that can meet all the connectivity and remote access needs of an organization.

VPN is the most effective way to achieve convergence of voice, video and data

on a managed network.

19. Thank you [email_address]

20. Looking back, looking forward

21. Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded

by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private

sector business houses in terms of net worth. The group has business interests that

range from telecommunications (Reliance Communications Limited) to financial

services (Reliance Capital Ltd) and the generation and distribution of power (Reliance

Infrastructure Limited).

22. Reliance ADA Groups flagship company, Reliance Communications, is India's

largest private sector information and communications company, with over 100

50

million subscribers. It has established a pan-India, high-capacity, integrated (wireless

and wireline), convergent (voice, data and video) digital network, to offer services

spanning the entire infocomm value chain.

23. Other major group companies Reliance Capital and Reliance Infrastructure are

widely acknowledged as the market leaders in their respective areas of operation.

51

ORGANIZATION CHART

Regional CEO

CEO

Country head

Regional head

Cluster head

BM (branch manager)

MSD (manager service delivery)

TFM RM relationship PFM CEM (Teller service (relationship manager (personal (customer Manager) manager) (GFG) financial experience Manager) manager)

CSE CST

52

BOARD OF DIRECTORS

Board of Directors of Reliance Industries Limited

Shri Mukesh D. Ambani

Chairman & Managing Director

Shri Nikhil R.

Meswani

Executive Director

Shri Hital R. Meswani

Executive Director

Shri PMS Prasad

Executive Director

Shri P.K.Kapil

Executive Director

Shri Ramniklal H.

Ambani

Shri Mansingh L.

Bhakta

53

Shri Yogendra P.

Trivedi Dr. D. V. Kapur

Shri M. P. Modi

Prof. Ashok Mishra Prof. Deepak C Jain Dr. R. A. Mashelkar

54

HISTORY

1-At the age of 17 Dhirubhai Ambani went to Aden and worked for A. Besse S Co.

Ltd.

2-The year 1958 he returned to Mumbai and started his first company, Reliance

Commercial Corporation, a commodity trading and export house.

3-In the year 1966, a first step in Reliances highly successful strategy of backward

integration, he started the textile mill Ahmadabad.

4-In the year 1975 a technical team from the World Bank certified that the reliance

textile plant was EXCELLENT BY DEVELOPED COUNTRY STANDARDS.

5-In the year 1977, the company went public, credited with a number of financial

innovations in the Indian capital markets.

55

Mission & Vision of RELIANCE Telecom

MISSION OF THE COMPANY

We will create world-class benchmarks by:

Meeting and exceeding Customer expectations with a segmented approach.

Establishing, re-engineering and automating Processes to make them customer

centric, efficient and effective.

Incessant offering of Products and Services that are value for money and excite

customers

Providing a Network experience that is best in the industry.

Building Reliance into an iconic Brand which is benchmarked by others and leads

industry in Intention to Purchase and Loyalty.

Developing a professional Leadership team that inspires, nurtures talent and

propagates RCOM Values by personal example.

56

VISION OF THE COMPANY

To build a global enterprise for all our stakeholders, and

A great future for our country,

To give millions of young Indians the power to shape their destiny,

The means to realize their full potential.

By 2015, be amongst the top 3 most valued Indian companies,

providing Information, Communication& Entertainment services, and being the

industry benchmark in

Customer Experience, Employee Centricity and Innovation.

57

VALUES TO THE COMPANY

Shareholder Interest

We value the trust of shareholders, and keep their interests paramount in every business

decision we make, every choice we exercise

People Care

We possess no greater asset than the quality of our human capital and no greater priority

than the retention, growth and well-being of our vast pool of human talent

Consumer Focus

We rethink every business process, product and service from the standpoint of the

consumer so as to exceed expectations at every touch point

Excellence in Execution

We believe in excellence of execution in large, complex projects as much as small

everyday tasks. If something is worth doing, it is worth doing well.

Team Work

The whole is greater than the sum of its parts; in our rapidly-changing knowledge

economy, organizations can prosper only by mobilizing diverse competencies, skill sets

and expertise; by imbibing the spirit of thinking together -- integration is the rule,

escalation is an exception

58

Proactive Innovation

We nurture innovation by breaking silos, encouraging cross-fertilization of ideas &

flexibility of roles and functions. We create an environment of accountability, ownership

and problem-solving based on participative work ethic and leading-edge research

Leadership by Empowerment

We believe leadership in the new economy is about consensus building, about giving up

control; about enabling and empowering people down the line to take decisions in their

areas of operation and competence

Social Responsibility

We believe that organizations, like individuals, depend on the support of the community

for their survival and sustenance, and must repay this generosity in the best way they can

Respect for Competition

We respect competition because theres more than one way of doing things right. We

can learn as much from the success of others as fro.

59

The Company has developed the following strategies to achieve its

objectives

strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum geographical

coverage;

Offer multiple telecommunications 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.

60

CORPORATE SOCIAL RESPONSIBILITY

Organizations, like individuals, depend for their survival, sustenance and growth on the

support and goodwill of the communities of which they are an integral part, and must pay

back this generosity in every way they can...

This ethical standpoint, derived from the vision of our founder, lies at the heart of the

CSR philosophy of the Reliance ADA Group.

While we strongly believe that our primary obligation or duty as corporate entities is to

our shareholders we are just as mindful of the fact that this imperative does not exist in

isolation; it is part of a much larger compact which we have with our entire body of

stakeholders: From employees, customers and vendors to business partners, eco-system,

local communities, and society at large.

We evaluate and assess each critical business decision or choice from the point of view of

diverse stakeholder interest, driven by the need to minimize risk and to pro-actively

address long-term social, economic and environmental costs and concerns.

For us, being socially responsible is not an occasional act of charity or that one-time

token financial contribution to the local school, hospital or environmental NGO. It is an

ongoing year-round commitment, which is integrated into the very core of our business

objectives and strategy.

Because we believe that there is no contradiction between doing well and doing right.

Indeed, doing right is a necessary condition for doing well.

61

COMPANIES OF RELIANCE GROUP

62

RELIANCE CAPITAL

Reliance Capital is one of Indias leading and fastest growing private sector financial

services companies, and ranks among the top 3 private sector financial services and

banking companies, in terms of net worth.

The company has interests in asset management and mutual funds, life and general

insurance, private equity and proprietary investments, stock broking and other

activities in financial services.

Reliance Capital

o Reliance Capital

o Reliance Life Insurance

o Reliance General Insurance

o Reliance Mutual Fund

o Reliance Money

o Reliance Consumer Finance

o Reliance Asset Reconstruction

63

RELIANCE COMMUNICATIONS LIMITED

The flagship company of the Reliance ADA Group, Reliance Communications Limited,

is the realization of our founders dream of bringing about a digital revolution that will

provide every Indian with affordable means of communication and a ready access to

information.

The company began operations in 1999 and has over 50 million subscribers today. It

offers a complete range of integrated telecom services. These include mobile and fixed

line telephony, broadband, national and international long distance services, data services

and a wide range of value added services and applications aimed at enhancing the

productivity of enterprises and individuals.

Reliance Communications

o Reliance Globalcom

o Reliance BPO

64

RELIANCE INFRASTRUCTURE LIMITED

Reliance Infrastructure Ltd is not only Indias largest private sector enterprise in power

utility but also the largest private sector player in many other infrastructure sectors of

India. In the power sector we are involved in generation, transmission, distribution and

trading of electricity and constructing power plants as EPC partners. In the infrastructure

space the company is focused on roads, Urban infrastructure which includes MRTS,

Sealink and Airports, Specialty Real Estate which includes business districts, trade

towers, convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as

well as free trade zones.

65

RELIANCE HEALTH

In a country where healthcare is fast becoming a booming industry, Reliance Health is a

focused healthcare services company enabling the provision of solution to Indians, at

affordable prices. The company aims at providing integrated health services that will

compete with the best in the world.It also plans to venture into diversified fields like

Insurance Administration, Health care Delivery and Integrated Health, Health Informatics

and Information Management and Consumer Health.

Reliance Health aims at revolutionizing healthcare in India by enabling a healthcare

environment that is both affordable and accessible through partnerships with government

and private businesses.

66

RELIANCE BIG ENTERTAINMENT

India is standing on the threshold of an experience and entertainment economy. It is at the

cross roads of an exciting phase that will shape its cultural and social framework forever.

Reliance Big Entertainment has evolved out of the groups vision of meeting young

India's aspirations and assuming a leadership position in communications, media and

entertainment. Reliance Big Entertainment is geared to create a significant presence in

businesses across various vectors of content, internet, broadcast and retail services and

platforms for distribution. The company strives to create converged services and

platforms for masses to access innovative, cutting-edge content. Key content initiatives

include production and strategic collaboration in areas such as gaming, movies,

animation, music, broadcast, DTH and user-generated content, amongst others.

The Reliance ADA Group and the principals of Dreamworks director Steven Spielberg

and CEO Stacey Snider have inked a deal to form a $1.2 billion studio, reports WSJ. Of

this amount, the ADA Group will invest $500 million in equity, and $700 million in

debt through JP Morgan Chase. The ADA Group, according to the Hollywood Reporter

(THR), will have a 50 percent stake in the deal.

67

The deal has been struck through Reliance Entertainment, according to Business

Standard. In 2005, Reliance ADAG had acquired 51 percent stake in Adlabs Films, which

produces films, and also owns multiplex theatres. Last year, they acquired Pune based

animation company Anirights, which has been rebranded as BIG Animation.

The studio will produce around six films a year. Dreamworks reportedly intends to strike

a deal with Time Warner for HBO, and the films may be distributed by Universal

Pictures. There are, however, expected to be a few teething troubles: Dreamworks was

sold to Viacom in 2006, and Spielberg and Snider have had disagreements with

Paramount Pictures. Dreamworks is expected to negotiate for rights to keep one or more

projects that they were working on with Paramount, for the new company. That, it is

expected, will come at a price. There are around 150 Dreamworks executives currently

with Paramount, and while David Geffer, Spielberg and Snider had exit clauses, the rest

will need Paramounts permission.

68

BIG Cinemas, India's largest domestic and international cinema chain, a division of

Reliance Media Works Ltd and a member of Reliance ADA Group,has hit its 500 screen

milestone with the opening of its newest multiplex at Kedah, Malaysia.Following the

Reliance ADA Group acquiring the controlling stake in Reliance Media Works in 2005,

BIG Cinemas has witnessed a CAGR (Compound Annual Growth Rate) of 100% in the

scale of its operations.

In a little over three years BIG Cinemas has grown to establish a dominant presence in the

Indian domestic market securing 240 screens across 75 Indian cities. Similarly, BIG

Cinemas has made huge strides internationally, with more than half of its screens located

in 40 cities outside India covering the USA, Malaysia and the Netherlands.

Through its incredible three year growth period, BIG Cinemas has refurbished properties

including landmark heritage properties such as Metro in Mumbai and Odeon in New

Delhi; fitting them with state of art facilities and opulent interiors that blend today's

audience requirements with the theatre's heritage.

69

BIG Cinemas has also developed brand new premium cinemas across the globe including

BIG Cinemas-Golf Glen which is a five screen multiplex in Chicago with a premium bar

and lounge.

The Indian Diaspora overseas has a strong affinity to Indian movies and BIG Cinemas has

aggregated a 24 city cinema network across East Coast, Midwest and West coast in US

that now regularly screen Hindi, Tamil, Telugu and Punjabi movie features, in addition to

Hollywood.

Additionally, BIG Cinemas has become the third-largest cinema chain in Malaysia

playing Hollywood features as well as Chinese, Malay and Tamil films which cater to the

1.5 million people of Indian origin. Meanwhile targeting Europe, BIG Cinemas has

partnered with Path Theatres to begin screening Indian movies in the Netherlands.

The company is proposing to scale up BIG Cinemas' network with plans to add a further

100 screens over the next year.

Commenting on the development, Anil Ambani, CEO, Reliance MediaWorks Ltd. said,

"Hitting the historic milestone of 500 BIG Cinemas screens worldwide is hugely

significant. This expansion underscores our attempts to build scale, quality, innovation

and pioneering formats which improve the movie going experience for audiences the

world over. There is a great opportunity in exhibition infrastructure worldwide and while

domestic expansion continues to be an area of thrust for us, we are also fully committed

to expanding our global footprint.

70

Reliance BIG Entertainment

o Internet & New Media

BIGFlix.com

BIGADDA.com

Zapak

Jump Games

BIG Pictures

Reliance Media Works (formerly Adlibs)

Reliance Media Works (formerly Lowry Digital)

BIG Cinemas

BIG Animation

BIG Music & Video

BIG ND Studio

BIG Synergy

BIGOYE.com

o Broadcasting

BIG 92.7 FM

BIG Broadcasting

o Others

BIG Street

BIG Live

BIG Reach

BIG Events

71

Reliance's oil and gas discovery

In 2002, Reliance found natural gas in the Krishna Godavari basin off the coast of Andhra

Pradesh near Vishakhapatnam. It was the largest discovery of natural gas in world in

financial year 2002-2003. On 2 April 2009, Reliance Industries (RIL) commenced natural

gas production from its D-6 block in the Krishna-Godavari (KG) basin.

The gas reserve is 7 trillion cubic feet in size. Equivalent to 1.2 billion barrels (165

million tones) of crude oil, but only 5 trillion cubic feet are extractable.

On 2008 Oct 8, Anil Ambani's Reliance Natural Resources took Reliance Industries to the

Bombay High Court to uphold a memorandum of understanding that said RIL will supply

the natural gas at $2.34 per million British thermal units to Anil Ambani.

Reliance Retail

Reliance Retail is the retail business wing of the Reliance business. Many brands like

Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance

Wellness, Reliance Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance

I Store, Reliance Home Kitchens, and Reliance Jewel come under the Reliance Retail

brand.

72

Environmental Record

Reliance Industry is the worlds largest polyester producer and as a result one of the

largest producers of polyester waste in the world. In order to deal with this large amount of

waste they had to create a way to recycle the waste. They operate the largest polyester

recycling center that uses the polyester waste as a filling and stuffing. They use this

process to develop a strong recycling process which won them a reward in the Team

Excellence competition.

Reliance Industries backed a conference on environmental awareness in New Delhi in

2006. The conference was run by the Asia Pacific Jurist Association in partnership with

the Ministry of Environment & Forests, Govt. of India and the Maharashtra Pollution

Control Board. The conference was to help bring about new ideas and articles on various

aspects of environmental protection in the region. Maharashtra Pollution Control Board

invited various industries complied with the pollution control norms to take active part in

the conference and to support as a sponsor. The conference proved effective as a way to

promote environmental concern in the area.

73

PRODUCTS & BRANDS BY RELIANCE IND. LTD.

The Company expanded into textiles in 1975. Since its initial public offering in 1977, the

Company has expanded rapidly and integrated backwards into other industry sectors,

most notably the production of petrochemicals and the refining of crude oil.

The Company from time to time seeks to further diversify into other industries. The

Company now has operations that span from the exploration and production of oil and gas

to the manufacture of petroleum products, polyester products, polyester intermediates,

plastics, polymer intermediates, chemicals and synthetic textiles and fabrics.

The Company's major products and brands, from oil and gas to textiles are tightly

integrated and benefit from synergies across the Company. Central to the Company's

operations is its vertical backward integration strategy; raw materials such as PTA, MEG,

ethylene, propylene and normal paraffin that were previously imported at a higher cost

and subject to import duties are now sourced from within the Company. This has had a

positive effect on the Company's operating margins and interest costs and decreased the

Company's exposure to the cyclicality of markets and raw material prices. The Company

believes that this strategy is also important in maintaining a domestic market leadership

position in its major product lines and in providing a competitive advantage.

The Company's operations can be classified into four segments namely:

Petroleum Refining and Marketing business

Petrochemicals business

Oil and Gas Exploration & Production business

Others

74

The Company has the largest refining capacity at any single location.

The Company is:

Largest producer of Polyester Fibre and Yarn

4th largest producer of Paraxylene (PX)

5th largest producer of Polypropylene (PP)

7th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene

Glycol (MEG)

75

Wired to win

The successful rolling out of real broadband services across the nation marks the second

chapter of Reliance Communications commitment to usher in a digital revolution in India.

Reliance Communications is setting new standards for the world to follow through

inventive use of cutting-edge technologies in the field of fibre optics, Ethernet,

microwave radios, switching, routing, digital compression & encoding.

The mass roll out of broadband being carried out by Reliance Communications across the

length & breadth of the country, offering speeds of up to 155 Mbps to millions of users,

in it is a technological marvel.

The uniqueness of Reliance Communications broadband initiatives lies in the fact that our

entire nation wide network is being conceptualized & built from ground zero. Our

network is designed to deliver an affordable quality education, drive governance,

transform healthcare, enhance efficiency in business & finally, generate new job

opportunities for millions of unemployed Indians.

Reliance Communications broadband service is set to revolutionize Indian society by

removing the traditional bottlenecks of development including a lack of capital & a weak

infrastructure & help tide over the challenges of distribution in a vast country like India.

76

Integrated Enterprise Solution

Reliance Communications integrated solution offering is currently being rolled out in

30cities across India. It consists of an integrated voice, data & video solution. Our target

is to expand its service to cover the entire country eventually.

For Indian enterprises, our convergent voice-data-video solution framework, delivered

through fibre-to-the-building (FTTB) architecture introduces true broadband connectivity.

Our enterprise broadband is delivered using Metro Ethernet technology. However, based

on specific customer requirement other high-end technologies including Digital

Subscriber Line, Local Multipoint Distribution Services (LMDS) & integrated service

digital network (ISDN) are also being deployed.

As per specific requirements of enterprises we provide customized solutions be it a

simple voice solution or complex data solutions that involves nation wide networking of

all branches, sales & field executives, vendors, suppliers & customers at data speeds

scalable from 64 Kbps to 155 Mbps. Reliance Communications core broadband products

include MPLS based VPN, leased lines, Gigabit Internet connectivity, video conferencing

& video telephony.

77

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is very essential for an

organization to know about the view of consumers and their competitive products. This

survey research may be also aimed as to estimate potential buyer for the product. The

objective of the study is as under: -

To know customer perception about the reliance communication.

To find out the problems faced by customer.

To find out the satisfaction level of consumers from Reliance Communication

compared to other service providers.

To know the impact of advertisement and promotion on consumer buying

behavior.

CHAPTER THREE

78

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY is a way to systemically solve the research problem. It

may be understood as a science of studying how research is done.

Research Design

Exploratory Research

An exploratory research has been carried out to study the behavior of customers. To meet

the research objective a research formats, to collect information from the respondents was

made & the information was collected using scientific method as per the questionnaire

samples elements have been chosen by observation techniques.

Research was conducted to know the scope of Reliance Communication, so it was

designed as analytical

1. Survey of the city- VARANASI

2. Survey of the area- MAHAMURGANJ

CHAPTER FOUR

79

SAMPLING TECHNIQUE

Sample Design

Data for this study has been collected from primary sources. For the collection of data

CONVENIENCE SAMPLING has been used.

Sample Size

Sample size for the study was 100 for the universe of the urban area of

Varanasi(Mahamurganj).

80

TYPE OF DATA AND DATA COLLECTION TECHNIQUES

Primary Data

The primary data is collected directly either from respondent or source of information

.these data are new in nature. Data for this study has been collected by conducting

personal interview with questionnaire responses.

Primary data was collected with the help of:

Questionnaire: In this method a detailed questionnaire is prepared by the

job analyst and is distributed among the workers. The workers answer the

questions to the best to their knowledge and belief. Employees co-

operation can more easily be achieved by explaining the entire program

fully in detail to the representatives of employees Assistance of

supervisors can also be sought.

Personal Interviews: Job analyst uses interview as a prime method of

data collection. He contacts the workers and the supervisor concerned and

asks questions regarding the various jobs performed by them for collection

the information

81

DATA ANALYSIS & INTERPRETAION

Q1-What is your age?

Age Group No. of Respondent 18-24 54 24-32 26 32-40 13 40+ 7

Interpretation:there are maximum 54% i.e there are 54 respondent belongs 18-24 age section.

54%

26%

13%

7%

0

10

20

30

40

50

60

18-24 24-32 32-40 40+

age group

age group

CHAPTER FIVE

Q2-What is your income level?

Interpretation:In te above graph the maximum no. of people belongs to 20000

income group.

22%

18%

What is your income level?

Income No. of Respondent5000-20000 27

20000-35000 33 35000-40000 22

40000+ 18

n te above graph the maximum no. of people belongs to 20000

27%

33%

18%

Income

82

No. of Respondent

n te above graph the maximum no. of people belongs to 20000-35000

5000-20000

20000-350000

35000-40000

40000+

83

Q3- Which companys service you are using?

Companys Service No. of Respondent

VODAFONE 20

RELIANCE 24

AIRTEL 39

BSNL 17

Interpretation:In the above chart there are 39% user of airtel which is very good to

others which is shown in chart. After airtel the reliance communication have 24% user.

RELIANCE

24%

BSNL

17%AIRTEL

39%

VODAFONE

20%

companys service

84

Q4. Do you know about Different services of Reliance?

No. of Respondent yes 75 No 25

Interpretation:As shown in pie chart 75% customers known about the services but 25%

customers do not know about different services of Reliance.

yes

no

75%

25%

85

Q5. If yes, through which medium you know? Medium No. of Respondent

News 25

Sales person 15

Advertising 45

Friends 15

Interpretation:25% Customers come to know about Reliance through Newspaper, 15%

through salesperson, 45% through advertisement,and 15% customer came to know

through their friends.

medium

news

sales person

advertising

friends

15%25%

45%

15%

86

Q6. Are you using reliance mobile services?

MOBILE USE

No. of Respondent

Valid YES 68

NO 32

Interpretation:From the above Table, it is inferred that majority of the respondents

(68%) were using Mobile phones while (32%) were not using Mobile phones.

MOBILE USE

YES

NO

32%

68%

87

Q7. Which type of connection do you have ?

Connection No. of Respondent

Prepaid 75

Postpaid 25

Interpretation: the above graph seemed 75% user using prepaid & 25% using postpaid

services of RCOM.

connection

prepaid

postpaid

75%

25%

88

Q8. Which type of technology you are using ?

Technology No. of Respondent

GSM 45

CDMA 55

Interpretation: the above graph seemed 55%user using CDMA & 45% using GSM

services of RCOM.

technology

GSM

CDMA

55%45%

89

Q9. Are you using broadband & landline services of reliance communication ?

No. of Respondent

Valid Broadband user 55

Landline user 45

Interpretation: The above chart seemed the 55% user using Broadband & 45% using

landline services of RCOM .

BROAD BAND

LAND LINE

Internet services

55%

45%

90

Q10. Are you, satisfied with reliance services?

No. of Respondent

Satisfied 40

Unsatisfied 50

Cant say 10

Interpretation: 50% customers were satisfied but 40% customers were unsatisfied &

10% cant say anything.

0

10

20

30

40

50

60

SATISFIED UNSATISFIED CAN'T SAY

SATISFACTION WITH RELIANCE

SATISFACTION WITH AIRTEL

50%

40%

10%

91

Q11. if not satisfied than why?

Interpretation: 15 customers were not satisfied due to feel the bill related problem

and 10 customers feel the network problem and 10 customers feel the ineffective bill plan

and 5 customers faced the other problem.

REASON OF NOT SATISFIED

Bill related problem

Network problem

Ineffctive Bill Plan

Other pleasr spcify

15

10

10

5

No. of Respondent

Bill related problem 15

Network Problem 10

Ineffective Bill Plan 10

Other please specify 5

92

Q12. What are the problems related to bill?

Interpretation: 8 Customers say that bill format not properly and 5customers say the

bill not timely delivery and 2 customers say other problem

PROBLEMS RELATED TO BILL

Bill format not proper

Bill not deliver at time

Other

8

5

2

No. of Respondent

Bill format not proper 8

Bill not deliver at time 5

Other 2

Total 15

93

Q13. How satisfied are you with the reliance tariff plans?

TARIFF

Interpretation: From the above Table, it was inferred that majority of the respondents

(44%) were Quite Satisfied with a special regards to the reliance Tariff Plan, while the

least (2%) number of respondents were Very Dissatisfied with respect to the reliance

Tariff Plan.

TARIFF

Very satisfied

Quite satisfied

Neutral

Quite dissatisfied

Very dissatisfied

37%

44%

10

7%2%

No. of Respondent

Valid Very satisfied 37

Quite satisfied 44

Neutral 10

Quite dissatisfied 7

Very dissatisfied 2

94

Q14. How satisfied are you with the network of reliance?

NETWORK

No. of Respondent


Quite satisfied 32

Neutral 5


Very dissatisfied 4

Interpretation: As the Table depicts, a good majority of respondents (53%) were Very

Satisfied with the Network of reliance, while the least (4%) were Very Dissatisfied

with the Network of reliance.

NETWORK

Very satisfied

Quite satisfied

Neutral

Quite dissatisfied

Very dissatisfied

53%

32%

5%

6%

4%

95

Q15 . How satisfied are you with the customer care of reliance?

CUSTOMER CARE

No. of Respondent


Quite satisfied 30

Neutral 19


Very dissatisfied 12

Interpretation: From the above Table, it was inferred that majority of respondents (30%)

were Quite Satisfied with the Customer care of reliance, while the least number of

respondents (11%) were Quite Dissatisfied with reliance Customer care.

CUSTOMER CARE

Very satisfied

Quite satisfied

Neutral

Quite dissatisfied

Very dissatisfied

28%

30%

19%

11%

12%

96

Service Provider Graph

Interpretation: The above graph shows a slice of 50%. These are the total no. of people

who are using Airtel. It seems that people are more aware of Airtel than any other brand.

The next popular brand is RELIANCE. The next popular brand was Idea. 15% people had

Idea connections. As it came very late in the market when Airtel had established itself

very well. So, that could be one of the reasons of such a low percentage. The remaining

5% had trump connections.

50%

35%

15%

5%

SER

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