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RELIANCE COMMUNICATIONS LIMITED
An Internship Report
ASHIK AZEEZ K PID: P001066359
In Partial fulfillment of the Master’s Program in Business Administration, Ohio University Athens,
USA
OHIO University Christ College Academy for Management Education,
Christ College Campus, Hosur Road, Bangalore-560029.
May 2007
1
DECLERATION
I, Ashik Azeez K hereby declare that this project work entitled “A Study About
Organization” of Reliance Communications Limited is a record of work carried
out by me under the guidance of Mr. Pranesh Mallaya (Money Reconciliation
Coordinator) in partial fulfillment of the requirement for the award of degree of
Master of Business Administration of Ohio University.
I also declare that this Internship Report is the result of my own effort and has
not been submitted to any other Institution/ university for any Degree/ Diploma
or recognition before.
Date:
Place: Ashik Azeez K
2
Acknowledgement
I would like to express my gratitude to all those who gave me the
opportunity to complete this internship report. I express my sincere
thanks to my Supervisor Mr. Pranesh Mallaya (The Money
Reconciliation Coordinator) whose help, stimulating suggestions and
encouragement helped me in all the time of internship and writing of this
report. I have been able to learn a lot under him which given me the
opportunity to widen my horizon of knowledge and learning. It was a great
pleasure to work under him.
I am deeply indebted to Mr. Gopu Kumar (CSD Department Head) for
permitting me to do Internship project in Reliance Communications
Limited, and encouraged me to go ahead with my internship project. I
would like to take this opportunity to thank my Uncle Mr. Abdul Majeed
(Anti Corruption and Vigilance of Police) who confirmed the permission
from the concern person of this organization.
I gratefully thank to all Departmental managers and Employees of
the organization who supported me during my internship period. I want to
thank them for all their help, support, interest and spending their valuable
time for me.
I would especially like to express my gratitude to Mr. Shiv Prakash,
Associate Director of Ohio University Christ College Academy for
Management Educatioin, Dr. Amalendu Jyotisi (Assistant Director of
3
special projects), and Mr. Girish M (Coordinator of special projects) for
all the assistance and guidance for my internship.
Especially, I would like to give my special thanks to my parents and
relatives whose patient love enabled me to complete this work and for
being very supportive throughout these 45 days.
Lastly but not the least, I also take the opportunity to thank my friends
who looked closely at the final version of the report for English style and
grammar, correcting both and offering suggestions for improvement in
difficult times.
4
Table of contents
Executive Summary 1
Telecom Industry Profile 3
Latest news about Indian telecom industry 5
Reliance - ADA Group 7
Chairman’s Profile 10
About Company 12
Vision 13
Mission 14
Board of Directors & Other Company Information 15
Principal Operating Companies 16
Products & Services 18
Organizational Structure of Reliance Communications LTD 25
Competitive Analysis 70
What makes Reliance Communication Different? 73
SWOT Analysis 74
Limitations 76
Recommendations 77
Conclusion 78
Bibliography 79
Appendix 80
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EXECUTIVE SUMMARY
The internship is an integral part of the Master of Business Administration
program. The organization that I chose for my internship project is Reliance
Communications Limited, Cochin (Kerala). This six-week period of my internship
in such a huge organization gave me a real time exposure to know about the
organizational working process. Reliance Communications is India’s largest
information and communications service provider with over 32 million
subscribers. It is doing its business by continuously delivering differentiated
products and services that provide high business value in return. I decided to do
an internship in Reliance communication because it’s a larger sector that is
booming now a day.
The basic objective of my internship was
to have knowledge of how the work environment is in a corporate world.
to study the existing procedures of Reliance Communications Limited.
to learn a detailed study about the organizational structure.
to learn the revenue assurance and credit control activities.
I have done this internship under a Commercial Department employee who is
the ‘Money Reconciliation Co-ordinator’ of this circle Office. I have done this
internship on “organizational study” of Reliance communications Circle Office in
Cochin. There is no financial department for this office, instead of that it is
known as Commercial department. The main work done in commercial
department is understanding the various process involved with financial
transactions, managing bank reconciliation, asset management, Revenue
assurance which is done to find out the leakages in the whole process, taking
necessary actions to correct the same in such a way that maximizes the total
profit of the organization and also it coordinates with other departments for
sales, assigning commissions to various channel partners, how they take care of
the customers grievances through customer care, etc.
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I also came to know about the structure of the organization and what kind of job
each department is associated with, how they calculate the Credit Fixation for
their customers, inventory management, billing and collection process, and the
various methods they follow for tracking the customers to avoid revenue
leakages and other purposes. I also gathered information about how the
Reliance World and Web World Express working for Reliance Communications.
It was a great pleasure to do my internship in Reliance communication and
overall it was a great learning experience and understanding for me.
7
TELECOM INDUSTRY PROFILE
The telecommunications industry has made its mark in history. Telecom Industry
is one of the fastest growing sectors in the country. Telecommunications has
been zooming up the growth curve at a feverish pace in the past few years. It is
the transmission of signals over a distance for the purpose of communication.
Today, telecommunication is widespread and devices that assist the process,
such as the television, radio and telephone, are common in many parts of the
world. Indian telecommunication firms added 6.3 million new subscribers in
February 2007, taking the total user base above 203 million. Wireless service
providers continued to dominate user growth by adding 6.23 million subscribers
in February, while 67,000 new fixed-line users signed up.
The call rates of as low as 2-3 US cents a minute are luring customers in the
world's fastest-growing wireless services market. Britain’s Vodafone paid more
than US$ 11 billion for controlling a major chunk of the fourth-largest mobile
operator Hutchison Essar. In March, Indian GSM mobile phone service providers
signed up a record 6.1 million customers, taking total users to 121.4 million, The
March increase was the highest-ever monthly rise and compared with 4.9 million
new users in February.
The combined revenue of all operators from mobile businesses would be more
than double to US$ 33.1 billion by 2010, from about US$ 12.8 billion in 2006. The
total revenue of all telecom operators is also set to nearly double to US$ 43.6
billion in four years, from US$ 22.5 billion in 2006. The revenue share of mobile
business would rise to 76 per cent in the same period, from 57 per cent
currently.
India, which is adding over six million mobile subscribers every month, had
recently surpassed Russia to become the third largest mobile market in the
world after China and the US. The total mobile subscriber base in the country is
likely to reach 425 million by March 2010 With Bharti Airtel (GSM) and Reliance
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(CDMA and GSM) emerging as the top two mobile operators in terms of number
of subscribers the total mobile subscriber base in the country is likely to reach
425 million by March 2010.
With the Government’s decision to increase the foreign direct investment (FDI)
to 74% in this sector has generated interest among global investors. The share
of telecom in FDI rose from 3-4 per cent to 12-15 per cent in the calendar year
2006. UK-based Intec Telecom Systems, which offers operational support, access
billing and retail billing services for telecommunications operators worldwide,
has lined up a US$ 12 million expansion plan for its Bangalore office.
Cellular service provider Aircel has planned to expand its network to double its
subscriber base of 5 million over 18-24 months. Swedish telecom equipment
giant Ericsson announced an investment of US$ 100 million every year in India
with an option to enhance it depending upon the growth.
Cisco is starting a trial factory in Chennai for making Internet protocol-based
phones, as part of its US$ 1.1-billion investment plan for the country. India offers
an unprecedented opportunity for telecom service operators, infrastructure
vendors, manufacturers and associated services companies. Indian cellular
operators have lined up investments of about US$ 20 billion over the next two
years to bring over 80 per cent of the population under mobile coverage. The
planned investment for the next couple of years is 50 per cent higher than what
has been invested in the last 12 years.
The total mobile subscriber base in the country is likely to reach 425 million by
March 2010 with Bharti Airtel (GSM) and Reliance (CDMA and GSM) emerging as
the top two mobile operators in terms of number of subscribers.
Telecommunication network is the backbone of Communication sector. It is
difficult to predict the future of telecommunications technologies, services, and
applications that have not yet been invented.
9
The monthly addition to the mobile phone network is shown in the Appendix
(TABLE 1.1). Also Growth of the telecommunication network from April 2006-
February 2007 is shown in the TABLE (1.2).
LATEST NEWS ABOUT INDIAN TELECOM
INDUSTRY
The telephone subscriber base in India has crossed 200 million. The GSM has
more than half of this subscriber base - that is 115.3 million. Total subscriber
base (mobile and fixed) of CDMA (code division multiple access) mobile group is
has already crossed the 200-million-mark. The total phone subscriber base was
more than 196 million.
While Bharti Airtel continues to be the industry leader with 35.4 million users and
a 30.74% of the GSM market share, the gap between the second and the third
players is marginal. The state-run Bharat Sanchar Nigam Ltd (BSNL) as the
second biggest GSM player has 25.4 million subscribers (22.07% share), and the
third largest GSM player Hutchison Essar has 25.3 million users (21.98%).
MTNL's GSM subscriber base in Delhi and Mumbai touched 2.578 million, while
Spice Telecom has also over 2.5 million subscribers. Aircel's user base in
February stood at 5.094 million, followed by Reliance Telecom's 4.11 million
subscribers.
The number of Internet subscribers grew at 25 per cent, while broadband users
grew from 0.18 million to 1.32 million in 2005-06. The number of broadband and
Internet subscribers in India is expected to reach 20 million and 40 million
respectively by 2010.
With the addition of nearly 70 million subscribers, the financial year witnessed
the highest ever increase in subscribers base during a financial year after the
opening up of telecom sector for competition, says the Telecom Regulatory
Authority of India (TRAI). According to TRAI, the subscriber base for telephony
services continues its growth during March 2007 with 3.93 million subscribers
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being added during the month. A total of 66.51 millions subscribers have been
added during the financial year 2006-2007 as compared to 41.91 millions in
2005-06, registering an increase of 58% in annual growth.
Wireless services subscriber base increased by 3.53 million in March 2007 as
compared with 6.21 million in February 2007. This lower growth in the month of
March 2007 can be attributed to insistence by the Government to ensure
verification of subscribers. The total wireless subscribers at the end of March
2007 are 166.05 million as compared to 98.78 million in March 2006 registering
an annual growth of around 68%.
In the Wireline segment a total of 0.40 million subscribers were added during
March 2007 as compared to a decline of 0.02 million in February 2007. With this
the total subscriber base of wireline reached 40.78 million in March 2007 as
compared to 41.54 million in March 2006 registering a decline 1.82%.
The gross subscriber base reached 206.83 million at the end of March 2007. The
teledensity is 18.31% at the end of March 2007 as compared to 12.80 at end of
the March 2006 registering an increase of 43%.
The Broadband connections (>256 Kbps download) in the country have touched
2.30 millions at the end of March 2007 as compared to 1.35 millions in March
2006 registering a growth of 70%. The broadband subscribers were 2.21 million
in February 2007 and thus there is addition of 0.09 million broadband
subscribers in March 2007.
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RELIANCE - ADA GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's
largest private sector enterprise, with businesses in the energy and materials
value chain. Group's annual revenues are in excess of USD 22 billion. The
flagship company, Reliance Industries Limited, is a Fortune Global 500 company
and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and
growth of Reliance. Starting with textiles in the late seventies, Reliance pursued
a strategy of backward vertical integration - in polyester, fibre intermediates,
plastics, petrochemicals, petroleum refining and oil and gas exploration and
production - to be fully integrated along the materials and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates, plastics
and chemicals), textiles and retail.
Trust enjoys global leadership in its businesses, being the largest polyester yarn
and fibre producer in the world and among the top five to ten producers in the
world in major petrochemical products. The Group exports products in excess of
USD 11 billion to more than 100 countries in the world. There are more than
25,000 employees on the rolls of Group Companies. Major Group Companies are
Reliance Industries Limited (including main subsidiaries Reliance Petroleum
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Limited and Reliance Retail Limited), Indian Petrochemicals Corporation Limited
and Reliance Industrial Infrastructure Limited.
Across different companies, the group has a customer base of over 50 million,
the largest in India, and a shareholder base of over 8 million, among the largest
in 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. Today, Reliance Communications is revolutionizing the way India
communicates and networks, truly bringing about a new way of life.
13
14
NETWORK OF RELIANCE COMMUNICATIONS IN INDIA:
15
CHAIRMAN'S PROFILE
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
22 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 raise over US$ 2
billion. He also steered the 100-year Yankee bond issue for the company in January 1997.
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
16
Anil Dhirubhai Ambani
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
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ABOUT COMPANY
Reliance Communications Ltd. is a part of the Reliance group founded by Shri
Dhirubhai H. Ambani. Reliance Communications (formerly Reliance Infocomm)
was originally incorporated on July 15, 2004, under the Companies Act, 1956 as
Reliance Infrastructure Developers Private Limited. The status of the Company
changed from private limited to public limited on July 25, 2005. Further the name
of the Company changed to Reliance Communication Ventures Ltd with effect
from August 3, 2005. The name has since been changed to its present name, viz.
Reliance Communications Limited, under Fresh Certificate of Incorporation
consequent on change of name dated June 7, 2006.
Reliance Communications is one of India's largest integrated communications
service providers in the private sector. According to National Stock Exchange
data, Anil Ambani controls 66.75per cent of the company, which accounts for
more than 136 crore shares of the company. Reliance Communications is the
flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies.
Listed on the National Stock Exchange and the Bombay Stock Exchange, it is
India’s leading integrated telecommunication company with over 25 million
customers.
The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private
sector business houses on all major financial parameters, with a market
capitalization of Rs 100,000 crore (US$ 22 billion), net assets in excess of Rs
31,500 crore (US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6
billion).
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. Today everything is
digitalized for clearer and better transmission. Now the transmission of
18
information happened much faster than we can imagine. This is what Reliance
communication is offering to their customers. With fibre optic network it provides
high quality transmission and faster information flow.
The Reliance Communications network consists of 60,000 kilometers of optical
fibre 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 towns in 18 of the country's 21 circles, 229 of the
nation’s 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 fibres 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.
Access networks determine the services that can finally be delivered to
customer. Reliance Communications network has wireline access technologies
based on fibre as well as copper. Fibre 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 upgradation path to future
enhancements.
VISION
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To build a globally leading enterprise and through it bring greater value to all our
stakeholders. We envision that through this enterprise, we will build a great
future for our country this will enable us to give millions of young Indians the
power to shape their destiny and means to realize their future potential.
We will continuously strive to enrich the loves of all our consumers and
customers through innovative and delightful products and services.
MISSION
Reliance Communications envisions a digital revolution that will bring about a
New Way of Life. A Digital Way of Life for a New India. The missions of the Co. is
achieved through the following sub missions:
With mobile devices, netways and broadband systems linked to powerful
digital networks, Reliance Communications will usher fundamental
changes in the social and economic landscape of India.
Reliance Communications will help men and women connect and
communicate with each other. It will enable citizens to reach out to their
work place, home and interests, while on the move. It will enable people
to work, shop, educate and entertain themselves round the clock, both in
the virtual world and in the physical world. It will make available television
programmes, movies and news capsules on demand. It will unfurl new
simulated virtual worlds with exhilarating experiences behind the screens
of computers and televisions.
Users of Reliance Communication’s full range of services would no longer
need audiotapes and CDs to listen to music. Videotapes and DVDs would
not be necessary to see movies. Books and CD ROMs would not be needed
to get educated. Newspapers and magazines would not be required to
keep abreast of events. Vehicles and wallets will become unnecessary for
shopping.
Reliance Communications will disseminate information at a low cost.
"Make a telephone call cheaper than a post card". These prophetic words
of Dhirubhai Ambani will be a metaphor of profound significance for
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Reliance Communications. Reliance Communications will regularly unfold
new applications. Continually adapt new digital technologies. Create new
customer experiences. Constantly strive to be ahead of the world.
Reliance Communications will transform thousands of villages and
hundreds of towns and cities across the country.
Above all, Reliance Communications will pave the way to make India a
global leader in the knowledge age.
BOARD OF DIRECTORS / KEY PERSONNEL
Anil D Ambani CHAIRMAN
J Ramachandran (Prof.) Director
S P Talwar Director
Gautam Doshi Director
Deepak Shourie Director
Hasit Shukla Co. Secretary & Compliance Officer
Basic Information
ROC registration number 11 – 147531
Incorporation year2004
Ownership Reliance Group [Anil Ambani]
Main activityCellular mobile phone service
Investors InformationRegistered office address Karvy Computershare Pvt.
Ltd. Street H Block, 1st Floor,
Dhirubhai Ambani Knowledge City,
Street Plot No.17-24, Vittal Rao Nagar, Madhapur,
City Navi Mumbai City Hyderabad State Maharashtra State Andhra Pradesh Pincode 400710 Pincode 500081
21
Country code
91 Area code 22
Country code
91 Area code 40
Tel no. 30386010 Tel no. 23420815LISTED ON Bombay AND NATIONAL STOCK EXCHANGE (BSE &
NSE)
ISIN code INE330H01018 BSE demat code 532712 BSE listing group A NSE scrip code Rcom Face value (Rs.) 5
PRINCIPAL OPERATING COMPANIES
Reliance Communications Limited is a major operating company and is
also the holding company for the other major operating companies in the Group.
Reliance Communications provides CDMA-based wireless, wireline, broadband,
and long distance services in India and overseas. Its major assets are the CDMA
wireless network, transmission networks used in its business, and the contact
centres.
FLAG Telecom Group Limited (“FLAG”) is a wholly owned subsidiary of
Reliance Communications. FLAG provides international connectivity services and
infrastructure. Its major assets are the FLAG and FALCON submarine cable
systems.
Reliance Telecom Limited (“RTL”) and Reliable Internet Services Limited
(“RISL”) are wholly owned subsidiaries of Reliance Communications. RTL
provides GSM-based wireless services in 7 Circles, while RISL provides GSM-
based wireless services in 1 further Circle. RTL and RISL own the GSM wireless
networks in their respective Circles.
Reliance Communications Infrastructure Limited (“RCIL”) is a wholly
owned subsidiary of Reliance Communications. RCIL provides wireless
multimedia (Reliance Mobile World) and internet access (Reliance Net connect)
services to customers of Reliance Communications. It also undertakes wireless
handset distribution and marketing and IDC services.
The Sister Concerns Company having operations in Kerala
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Reliance Communications Ltd
Reliance Web Store Ltd
Reliance Infocom Engineering Ltd
Reliance Next Link
Reliance Digital World
Reliance Communications Infrastructure Ltd.
Reliance Telecom Infrastructure Ltd.
Team Lease Agency
Pragrithi Value Added Pvt. Solution
CHANGE OF NAME
The name of the Company was changed from Reliance Infocomm Limited to
Reliance Communications Limited with effect from June 7, 2006.
AUTHORISED CAPITAL:
During the year under review, the Company has subdivided its Rs.10/- paid up
equity share into Rs.5/- paid up.
The Authorised Capital of the Company has been, from time to time, increased
from
Rs.1, 00,000 divided into 10,000 Equity Shares of Rs. 10/- each to Rs.650 Crores
divided into 130 Crore Equity Shares of Rs.5/- each.
23
PRODUCTS & SERVICES
WIRELESS:
Reliance Mobile
Reliance Mobile is India’s largest mobile service brand with over 30 million
subscribers. Reliance Mobile services now cover over 10,300 cities and towns
across India.
They have achieved many milestones in this short journey. In 2003, AC Nielsen
voted Reliance Mobile (formerly Reliance India Mobile) as India ’s Most Trusted
Telecom Brand. In July 2003, it created a world record by adding one million
subscribers in a matter of just 10 days through its ‘Monsoon Hungama’ offer.
Nearly 90 per cent of handsets are data-enabled, and can access hundreds of
Java applications on Reliance Mobile World. Reliance Mobile has ushered in a
mobile revolution by offering advanced multimedia handsets to the common
man at very affordable rates.
Reliance Mobile World
The Reliance Mobile World suite of Reliance Mobile is a unique Java-based
application. Its uniqueness lies in the fact that it enables complex Internet
application to be introduced in mobile phones effectively and quickly. Reliance
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Mobile World receives over 1.5 billion page views per month from Reliance
Mobile users.
Reliance Mobile World offers a wide array of applications that include hourly
news updates, high quality headline video clips, downloadable multi-lingual ring
tones, seasonal updates including festival specials, city and TV specials, exam
results, astrology, mobile banking, bill payment, stock information, commodity
prices, railway and air ticket booking.
With over 150 data applications offering varied services — unique to any
wireless service in India — Reliance Mobile World is truly a treasure house of
knowledge, information, entertainment and commerce.
Reliance Netconnect
Leveraging pan-India high speed CDMA2000 1x wireless network, Reliance
Communications offers the country’s foremost wireless Internet connectivity
through Reliance Netconnect nationwide. Reliance Netconnect is India’s fastest
growing Internet connectivity service which touched a user base of over 350,000
subscribers in less than seven months since its launch. The highlight of the
offering is that subscribers can connect to Internet on the move at data speeds
of up to 144 kbps from their laptops or any other mobile computing device.
Wireless POS for Credit Card transaction processing
In July 2003, Reliance Communications joined hands with HDFC Bank to deploy
India’s first wireless Point of Sale (POS) for processing credit card transactions. It
marked an eventful beginning in the history of retail credit cards in India.
Wireless POS enables banks to significantly expand the number of retail outlets
accepting credit cards. It has also expedited the penetration of credit card
services to smaller towns
25
Thereafter, the NAC through its own network directed the credit card details to
the data center of the bank. The advantage of Wireless POS is that transactions
can be directly processed at the bank’s data centre skipping the PSTN
connection and the NAC infrastructure.
Wireless ATMs
The CDMA-based wireless connectivity solutions of Reliance Communications
facilitate banks to deploy ATMs expediently, over and above its advantages of
rolling out a nationwide network of secure and cost effective-wireless ATMs.
Unlike VSAT-based connectivity that banks traditionally depend upon, CDMA
solution eliminates the need of rooftop rights and consequential delays.
Mobile Virtual Private Network (VPN)
Reliance Communications’ Data VPN offering facilitates access to a user’s
desktop while he/she may be on the move. Through reliable CDMA network, the
user will be able access all the office applications, be it corporate e-mails,
Intranet portals, SAP or similar enterprise-specific application available only
within the corporate Intranet, at speeds of up to 144 kbps any time anywhere.
Vehicle Tracking System
At Reliance Communications, we have mapped the entire country and built a
high-end Geographical Information System. It enables to accurately pin-point
any location in the country. Reliance Vehicle Tracking System is among the
various other applications that leverages this world-class Global Information
System. The Vehicle Tracking System facilitates real-time tracking and
monitoring of road consignments and vehicles across India anywhere anytime.
BROADBAND
Wired to win
26
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
fiber optics, Ethernet, microwave radios, switching, routing, digital compression
and encoding…
The uniqueness of Reliance Communications’ broadband initiative lies in the fact
that our entire nationwide network is being conceptualized and built from ground
zeroReliance Communications’ broadband service is set to revolutionize Indian
society by removing the traditional bottlenecks of development including a lack
of capital and a weak infrastructure, and help tide over the challenges of
distribution in a vast country like India.
E-education
The mission of Reliance Communications’ e-learning initiatives is to bring world-
class education to the doorstep of every Indian home. Utilising the pan-India
optical fibre and retail network, educational institutions can reach out to large
sections of students which otherwise would be very difficult to contact.
The Indian market possesses tremendous potential yet to be tapped and with
Reliance broadband the world’s top-rung educational institutions are set to
expand their sphere of influence beyond horizons and thus garner rich dividends
Libraries and laboratories around the world can be cross-linked making way for
seamless exchange of information and expertise. A student sitting in India can
have access to information at Oxford, while a teacher can exchange knowledge
with his counterparts across the world.
Digital Workplaces
Reliance Communications’ real broadband connectivity has changed the
dynamics of work. Our video conferencing service acts as a virtual bridge
between professionals working at different office locations across the world. It
27
now makes no difference whether your colleague is sitting in your next cubicle or
across seven seas away.
E-healthcare
Reliance broadband is set to offer timely quality healthcare facilities at very
affordable rates to large sections of the Indian population irrespective of their
geographical location. The broadband connectivity is committed to usher in a
new generation of online healthcare delivery system.
Access to advance medical expertise can no longer be constrained by
geography. A patient can seek medical advice sitting at the comforts of home.
Doctors can attend to patients anywhere in the world on real-time basis. At the
click of the mouse, medical records and documents can be digitally dispatched
thousands of miles away.
Integrated Enterprise Solution
Reliance Communications’ Integrated Enterprise Solution offering is currently
being rolled out in 30 cities across India. It consists of an integrated voice, data
and video solution. The 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. As per specific requirements of enterprises we provide
customised solutions be it a simple voice solution or complex data solutions that
involves nationwide networking of all branches, sales and field executives,
vendors, suppliers and customers at data speeds scalable from 64 Kbps to 100
Mbps. Reliance Communications’ core broadband products include MPLS based
VPN, leased lines, Gigabit Internet connectivity, video conferencing and video
telephony.
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RURAL COMMUNICATION
Empowering Indian villages
Reliance Communications is committed to bringing about a complete revolution
in rural telephony. 80,000 kilometres of terabit optic fibre cable network forms
the backbone of our nationwide expansion, facilitating unlimited and
uninterrupted voice, data and video applications.
Reliance World, the unique infotainment data application, already enjoys 1.5
billion page views a month. With this roll out, countless more Indians will be able
to avail of our services and stay connected. Rural India will have unlimited
access to the Internet through the increasingly popular Reliance Netconnect. It
will surely put India on the fast track to knowledge-led leadership. It is a
recognized fact that each point of increase in tele-density results in a 3 per cent
growth in the country’s GDP.
Village Public Telephone
Reliance Communications’ Village Public Telephone (VPT) is a pioneering effort
to introduce telephones in villages that do not have any telephone connections
till date. These VPTs with STD facility are being installed in villages for the
convenience of the villagers. As per license obligation they have installed VPTs
covering 59 talukas. We are receiving subsidy support for 3,599 VPTs every
quarter from the USOF.
Rural Community Phone (RCP)
After achieving the target of one village public telephone per village, Reliance
Communications’ next plan of action is to provide Rural Community Phones
(RCPs) in each of those villages where the population exceeds 2000. These RCPs,
with STD facility, are to be installed in public places including shops, schools and
primary health centres. We are fully committed to installing about 22,000 RCPs
covering 61 districts across 11 states in India by 2006.
Rural Household DELs
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Reliance Communications' targets to provide Rural Household DELs in those
talukas, which have been declared as rural talukas. Fixed Wireless
Phone/Terminal of CDMA technology is being planned for R Household DELs.
They are determined to provide Rural Household DELs in 61 districts covering
203 talukas in India. Our target is to roll out 6,100 of them.
High Speed Public Tele-Info Centre (HPTICs)
Reliance Communications is committed to setting up High Speed Tele-Info
Centres in block headquarters and villages with a population exceeding 2000.
These centres will provide high-tech facilities including tele-education as well as
tele-medicine. These “information kiosks” will form the core of the rural
broadband connectivity. The target is to cover one lakh villages in three years
which approximately would cater to 48 per cent of the total rural population.
RELIANCE WORLD
Reliance World
Reliance World (formerly Reliance WebWorld) is a world-class nationwide chain
of retail outlets for products and services of the Reliance – Anil Dhirubhai Ambani
Group. It is designed to give the customer a delightful experience of the digital
world of information, communication, entertainment and utility services. All
Reliance World outlets are connected to Reliance’s countrywide optic fibre
network.
INTERNET DATA CENTRE
World-class cyber centers
Reliance is India's largest Internet Data Center (IDC) service provider, hosting
business critical applications of Indian and foreign blue chip companies, financial
institutions and other important organizations. Reliance Internet Data Centers
are truly world-class Level 3 (highest) IDC facilities, with more than 200,000 sq ft
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of hosting space. The data centers are internationally benchmarked on all
parameters i.e. physical and network security, infrastructure, facilities, network
connectivity and operations.
Reliance Internet Data Centers offer a range of standard and advanced managed
hosting services. The services range from offering bulk co-location space to fully
managed hosting of servers on rent/lease model. Further, a whole range of
managed value added services are offered like firewall, intrusion detection,
backup, streaming, mailing, system administration, data base administration,
load balancing, storage services and disaster recovery / BCP solutions.
Internet Data Centers are critical components of Reliance Communications’
vision to herald a digital revolution in India. The Data centers are connected to
Reliance's pan-India, optic fibre-based, high capacity IP network. The data center
is further connected to 52 countries including US, UK, Mid-east and Asia-Pac
through Flag Telecom ( A Reliance Communications group company) backbone
and other undersea cable systems. It also has private peering relationship with
the largest Tier 1 Internet Service Providers (ISPs) and public peering at more
than 15 Internet Exchange points across the globe, apart from peering
relationship with domestic ISPs on STM-1 bandwidth.
ORGANISATIONAL STRUCTURE OF RELIANCE COMMUNICATIONS LTD
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HEAD OFFICE
DIVISIONS OF RELIANCE COMMUNICATIONS
32
City Distribution Centre (CDC)
RelianceWorld (RW)
CLUSTER OFFICE
CIRCLE OFFICE
CEO
All the Departments are controlled by one CEO.
THE HEAD OFFICE OF RELIANCE COMMUNICATION (MUMBAI)
The Head Office of Reliance Communications Limited is in Mumbai. The Head
Office has a critical responsibility for the direction and successful operation of all
business units with in the organization. Head Office is prepared revenue dealings
and forecasting and allocation of funds to different Cluster offices all over India.
They review the organization’s quality management system at planned intervals
to ensure its continuing suitability, adequacy and effectiveness. This review
includes assessing opportunities for improvement and the need for changes to
the quality management system, including the quality policy and quality
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PERSONAL BUSINESS
ENTERPRISE BUSINESS
SHAREDSERVICES
RETAILBUSINESS
SUB DEPARTMENTS
TECHNICALNETWORKS
objectives. It is their responsibility to prepare the current and future services
numbering plans. The important employees training will be conducted in Head
Office.
CIRCLE OFFICE
Circle office will take care of monitoring and directions of the activities that are
already prepared by the Head office. All the reports are generated in the Circle
Office about the functioning of the business. They will prepare the estimated
budgets and send a request to the Head Office. They act as a middleman
between the Head Office and the Cluster Office.
Each State will have one Circle Office. The circle office will take care of the
businesses in each State. The work task assigned by the Head Office to Circle
Office will be allocated to the Cluster Office.
CLUSTER OFFICE
Cluster Office will execute the plans that are distributed by the Circle Office.
There are 6 Cluster Offices under the circle office of Kerala. The cluster offices
are working to increase the customer database of the company by giving proper
services to them.
PERSONAL BUSINESS OF RELIANCE COMMUNICATION (CIRCLE OFFICE)
SALES DEPARTMENT
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The sales department has a crucial role in publishing companies. This is the
department, which will have a crucial effect on the sales of company’s products.
Their involvement and support is key to its success. It is the goal of a qualified
and talented sales manager to implement various sales strategies and
management techniques in order to facilitate improved profits and increased
sales volume. They are also responsible for coordinating the sales and marketing
department as well as over site concerning the fair and honest execution of the
sales process by his agents.
Naturally, a very large field sales force is required to cover the Reliance
Communications products. Field sales managers covering different regions of the
country usually manage the sales teams. The Sales Managers will call sales
teams for Regular sales conferences, once or sometimes twice a week, bring the
sales force together to hear about the next season’s targets, all with the
intention of informing the sales teams and enthusing them to go out and sell.
SALES DEPARTMENT
DISTRIBUTION - CHANNELS
The distribution channels of prepaid as well as post paid can be easily
understood by going through the Inventory Management.
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Distribution- Prepaid
Channels
Data Card, DSA Postpaid Channels
CIOU, Postpaid Channels
INVENTORY MANAGEMENT
"Inventory" is one of the more visible and tangible aspects (stocks of anything)
necessary to do business. Raw materials, goods in process and finished goods
all represent various forms of inventory.
These stocks represent a large portion of the business investment and must be
well managed in order to maximize profits. In fact, many small businesses
cannot absorb the types of losses arising from poor inventory management.
Unless inventories are controlled, they are unreliable, inefficient and costly.
SUCCESSFUL INVENTORY MANAGEMENT Successful inventory management involves balancing the costs of inventory with
the benefits of inventory. Many business owners fail to appreciate fully the true
costs of carrying inventory, which include not only direct costs of storage,
insurance and taxes, but also the cost of money tied up in inventory. This fine
line between keeping too much inventory and not enough is not the manager's
only concern. Others include:
Maintaining a wide assortment of stock -- but not spreading the rapidly
moving ones too thin;
Increasing inventory turnover -- but not sacrificing the service level;
Keeping stock low -- but not sacrificing service or performance.
Obtaining lower prices by making volume purchases -- but not ending up
with slow-moving inventory; and
Having an adequate inventory on hand -- but not getting caught with
obsolete items.
Operational
Daily distribution planning.
Demand planning and forecasting, coordinating the demand forecast of all
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customers and sharing the forecast with all suppliers.
Sourcing planning, including current inventory and forecast demand, in
collaboration with all suppliers.
Inbound operations, including transportation from suppliers and receiving
inventory.
Outbound operations, including all fulfillment activities and transportation
to customers.
Order promising, accounting for all constraints in the supply chain,
including all suppliers, distribution centers, and other customers.
Performance tracking of all activities.
The Inventory Management processes of Reliance Communications are as follows:
Ordering of Inventory
The sales team of each clusters and warehouse team make the orders. Sales
team are making stock request on the basis of last 3 months average sales
basis. Warehouse team makes stock request on the basis of requirements of the
customers as well as the market trend.
All the products are coming from National Ware House to State Warehouse.
Head Quarters will transfer stock on the basis of the request made by State
warehouse. From State Ware House, these are moved to CDC, i.e. (City
Distribution Centre). From CDC it will be distributed to local distributors. The
Stock Distribution part is mainly done by CDC. The main activity of CDC is to
make a systematic distribution process of stocks. CDC/ Cluster House Team will
generate order from Distributors. CDC will follow Cash and carry method to
distributors i.e. once distributor pays the cash; on that basis stocks are
distributed to them. There are 52 distributors all over in Kerala.
Receipts of Inventory
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Receipts and billing are done through SAP based accounting. In each point of
transfer of stocks, there will be stock transfer note.
Distribution to Channel/ Customers
The billing invoice will be generated from CDC. It is known as “Ship to
Party”(ordering process). Once the distributor pays the cash, they can come and
collect the stock from warehouse. It is known as Scroll to Party “Delivery Party”.
Then the third party will come and take the stock to required Cluster’s
distributors.
There are two types of distributors. They are Prepaid and Postpaid Distributors.
The distributions of stocks between these to parties are different.
CDC will distribute stocks to Prepaid Distributors and distributors
will send the stock to Retailer and finally Retailers will sale the
product to the customers.
CSD will distribute stocks to Postpaid Distributors and
distributors will distribute the stock to both Channel Partners and
Web World Express.
MIS and Record Management
Manual stock registers are prepaid during the time of transfer of goods in each
point of sales. They are preparing handset receipt for the purpose of Sales tax,
auditing monitoring etc. There is a ‘SAP CODE’ for each distributor. Once the
stocks are out it will be inward in the stock. Inward is a self-protected process. In
between the transfer of stocks, there won’t be any delay. It is must to get the
certificate from an Authorized Service Centre to transfer the goods. It’s not easy
to make any cheating or fraud process in between the stock transfers. All the
processes are strictly monitored in each point of time.
DATA CARD, DSA POST PAID CHANNELS
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With the Reliance Data Card, we have the freedom to access the Internet
anytime, anywhere across the Pan Indian Reliance Network. We can also avail of
this service as you roam internationally. All we need is to have a standard laptop
PCMCIA slot and voila.
Some Great Features of Reliance Data Card
Connect your laptop or notebook to the internet or an intranet via the
Reliance Data Card anytime anywhere
No need to wait endless hours because with the reliance Data Card, we
can avail of instant configuration & installation
Great speed
Send and Receive SMS via the Reliance Data Card
Fully Customized to suit your needs
No automatic disconnection unlike normal dial-up connections
Saves on paying extra high internet charges to hotel business centers and
in-room internet connectivity
FWP, DSA POSTPAID CHANNELS
The FWP is like a fixed line phone. Since the service does not use cables, users
don’t have to face problems due to broken cable lines and cross-connections.
The call charges to mobiles and other FWP phones are also lower than that for
landlines. This team will acquire the customers who are interested in FWP
postpaid connections.
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CUSTOMER SERVICE DELIVERY (CSD) DEPARTMENT
Increasing competition is forcing businesses to pay much more attention to
satisfying customers. Respond to complaints quickly and courteously because
this will helps the company to improve customer loyalty. It is the responsibility of
CSD is to build customer confidence by Resolving customer’s complaints on the
first contact. Companies that resolve complaints on the first contact increase
customer satisfaction and product loyalty, improve employee satisfaction, and
reduce costs. Companies even encourage complaints. Reliance communication
found that effectively handling customers with problems is critical to their
reputations as well as their bottom lines. When customers complain and they are
satisfied with the way their complaint is handled, they are more likely to
purchase another product or service from the same company. Customers who
get their problems satisfactorily and quickly solved tell their friends and
neighbors, and they are not easily won over by the competition.
CSD HEAD
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Churn/ Retention
Collections
Customer Care
Billing Printing & Despatch
CAF Fulfillment & Verifications
Credit Control
CAF FULFILLMENT AND VERIFICATIONS
There was an order from department of telecommunication for all mobile
operators to verify the customer database and make sure that the connection
belongs to the same customer. The details regarding the customers must be
verified like proof of the customer address and other details related with
customer and it should be uploaded after acquire the customer. It’s a very
important process as this is the whole proof for the company about their
customer.
CREDIT CONTROL
Customer Credit Fixation (CCF)
Fixing credit control is an entirely different process for telecommunication
industry when we compare it with other industries. Each and every second, the
credit amount for telecom industry will be increasing on the basis of the calls
made by the customers.
Credit fixation for the customers is very important because it provides the
facility to the customers to make uninterrupted calls to the limit fixed by system
based on the profile and values attached to him.
Barring the connection of customers is due to delay in bill payments or when
total call amount exceeds the credit limit. There are certain rules and regulations
that are to be followed by the company before the cancellation of the
connections. All the customers are supposed to payoff their bills before the due
dates. Once the customer crosses the due date of their payment of bill, firstly
company will bar the customers ILD services. Even after a certain dates the
customer doesn’t pay the amount, then the company will bar NLD services and
later OG (Out Going) services too. Again customers will be given some more
days to pay the bills, even after they are not willing to pay the bill or didn’t pays
the bill, those customers will be terminate from the mobile connection.
Customers will be informed before barring or canceling the connections by
sending SMS or through IVR (Interactive Voice Recognition). They are using IVR
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facility to reduce the cost, maintain uniformity among customers, reduce the
wastage of time, etc. If the customers have any queries regarding the
disconnection of service or any other concern matters they can make calls to
customer care service (CCS) centre. These CCS is available for customers all
over India and can be make queries in their own native language or in
universally accepted languages.
Each and every process will be done by the system itself and very less manual
work is needed for doing the entire task of CCF. For each disciplinary actions
system will suggest what decisions to be made. All these activities are done in
Circle office itself. This credit policy transaction is unique in all over the country
for Reliance Communications.
Credit control and Dunning policy for postpaid
consumers
Consumer Classification:
Postpaid subscribers are segmented into basically 5 categories depending on Age on network
and ARPU. All new customers are put under Entry Class till first fully month (second bill)
payment or 60 days whichever is later. The underlying premise is that all subscribers will be
paying and in case they do not pay their 2nd invoice, they shall not be upgraded from Entry
close to Blue. Therefore the classification is based on age on network combined with ARPU.
Sr
no
Customer
segmentation
Avg. ARPU on last 3
months Billing
Age of customers based on no:
of bills generated
1 Platinum
B/w Rs 1000 – Rs 2000 Greater than 24 bills
Greater than Rs 2000 Greater than 12 bills
2 Gold
Unto Rs 1000 Greater than 24 bills
B/w Rs 1000 – Rs 2000 Between 13- 24 bills
Greater than Rs 2000 Between 07 - 12 bills
3 Silver
Unto Rs 1000 Between 13- 24 bills
B/w Rs 1000 – Rs 2000 Between 07 - 12 bills
Greater than Rs 2000 Unto 6 bills
4 Blue Unto Rs 1000 Unto 12 bills
B/w Rs 1000 – Rs 2000 Unto 6 bills
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5 Entry
Not applicable
Until 1st full month or 60
days from entry, whichever
is later
Other classifications of customers are:
X – these categories are those who are potentially exit type, as they didn’t pay
their 2nd bill. In case they clear their dues, they can be put into Blue based on
ARPU.
R – those who will be credit restricted, independent ARPU or age in the network.
This is done based on credit limit. The deposit paid by them shall determine their
effective credit limit. The base credit limit is reduced to Rs 500.
Q – those who have cheque bounce/ credit card charge back history (no: of
bounce = 2 for Platinum & Gold) and for other risk classes (no: of bounce = 1).
C0 – those who have frequent cheque bounce/ credit card charge back history “
no: of cheque bounce >2 for Platinum & Gold and other risk classes “no: of
bounce>1.
L – this class will cover all the employees of Reliance group.
G – this class will cover VIP customers nominated by authorized persons.
Z – this class covers all customers whose status is ‘ suppressed ’ in ADC (it’s a
server name).
Basic Credit Limit
The basic credit limit would be determined by a combination of Address
Verification (AV) and Credit Verification (CV) results.
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The following method is followed by Reliance Communications for Credit
Verification:
FactorSr. No.
Values PointsSr. No. of Selection
Points for Selection
1
Who will be paying the monthly RIM bill?
1 Self 2 Brothers/Sisters3 Son/Daughter 4 Mother/Father5 Husband/Wife6 Others
Update the following details belonging to the person who will pay the bill. In the present case it is – “Self”
2 Occupation
1 Self Employed Professional2 Own Business3 Senior Executive4 Other Employee5 Non-Employed
3 Type of residence
1 Posh Bungalow/ Row house2 Flat3 Chawl4 Hostel5 Others
4 Locality 1 Affluent/ Upper Middle Class2 Middle/ Lower Middle Class3 Slum
5 Ownership 1 Owned2 Rented3 Paying Guest4 Company Owned
6 Age
1 Below 182 18 to 253 25 to 354 35 to 585 58+
7Customer’s Attitude
1 Non Co-operative2 Co-operative
Credit Card 1 No Credit Card
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8Ownership 2 Recent Paid Statement
Available
9PAN Card Holder 1 No Pan Card
2 PAN Card Available
Table 1
On “Entry”
Each subscriber shall get an initial base credit limit of Rs 1000 on entry,
independent of the tariff plan opted for. Depending on the results of Address
Verification and Credit Verification, the customer shall get revised credit limits as
given below.
Revised Base Credit Limit
The subscriber’s updated base credit limit shall be as follows depending on
results of AV and CV.
Sr No AV/CV Results Updated Base Credit Limit
Remarks
1 AV Negative NilThe subscriber shall not be enrolled as a postpaid subscriber. OG shall be barred.
2 AV Positive2A CV Score: Negative 500
Effective Credit Limit = Base Credit Limit + (Deposit * 1.5)
2B 0-5 10002C 6-8 15002D 9-12 18002E 13-16 22002F 17-20 25002G 21 3000
*These figures are just a model figures.
In case of Reliance Consumers (Non-Ind) the Base credit limit will be Base credit
limit * No. of connections.
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Note: - In case of CV score below negative, subscribers will be followed up to pay
a Deposit. For the interim period he will be provided with a Credit Limit of Rs 500
follow-up to collect a suitable Deposit.
[Subsequently, these customers will be classified as “R” mentioned above. In
case the subscriber refuses to pay a Deposit within 45 days from Entry he will
be assigned Risk Class “N” and will eventually be migrated to prepaid on
settlement of initial usage or terminated. The Credit Limit for “Q” class
customers will be Rs 500 + (Deposit * 1.5) and that for “CO” class will be
Deposit * 1.5.]
The Basic for CV along with the CV scoring format is presented using an example
in Annexure 1 of this Document.
(The default Base Credit Limit will be Rs 1000 wherever CV score are not
applicable)
Communication of the initial Credit limits
The subscriber shall be communicated their credit limits at the time of entry (as
shown in ‘on entry’). The updated Credit Limit shall be communicated during
the Bill Explanation. In case they expect their usage to be higher, they would be
requested to pay a suitable voluntary deposit (to cover 2 months usage) to avoid
dunning related inconvenience. In Case of CV Negative also, the Deposit will
need to be paid by the Customer. The City Customer Care team will do this
initiation.
These are very important initials steps and must be completed for 100% of the
new customers. This alone will enable customer satisfaction and minimization of
value based dunning events.
Effective Credit Limit
On customer creation and before AV
Effective Credit Limit = Initial Base Limit + Deposit Paid
After AV
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Effective Credit Limit = Initial Base Limit + [Deposit Paid * 1.5]
After CV
Effective Credit Limit = Base Limit t + [Deposit Paid * 1.5]
After moving from “Entry” class
Effective Credit Limit = (Updated Base Credit * Base Limit Multiplier) + (Deposit
* Deposit Multiplier)
Average Revenue Per User (ARPU)
Here, ARPU has been defined as the average invoice value of the last 3 bills
excluding the first bill.
Along with the segmentation, the subscribers will also be assigned a rating of 1,
2, or 3 based on their Average invoice Value. This will be put as an affix after the
respective Risk classes.
Rating Average invoice value (ARPU)
1 More than Rs 2000
2 RS 1000 to Rs 2000
3 Upto Rs 1000
ARPU is calculating mainly to know how many customers are coming under each
ranking. This will help the company to know more about their customers and
their preferences.
Credit Limit Enhancement
Provision for special limits: -
In certain cases, subscribers shall be credited with special limits. Through this
process, the required credit limit will be prescribed and the effective limit at any
point will be the calculated limit or prescribed limits, whichever is higher. For this
purpose the CIOU has to get approval from Zone Cluster Lead or Customer Care
Head.
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The approval Matrix is an extract of the AV/ CV process and is given in the Table
below.
Approved Authority Maximum Limit
Circle CEO Rs 20000Circle Commercial Heads Rs 20000Post Paid Heads Rs 10000Billing and Collection heads Rs 10000Circle Customer Care Heads Rs 10000City Heads Rs 5000CBOC Heads Rs 5000CC Town Heads Rs 5000For risk class “Q & C0” we will not consider any special limit for arriving at the
credit limits of the customers. Credit limit enhancement will be adopted for
regular customer by increasing the multiplier to the deposit and the basic limit.
This enhancement shall be effective when the customer classification is renewed
and revised.
Up gradation of customer segment will done once in a month [on 5th of the
month]. However Down gradation for “Platinum, Gold and Silver “ segment will
happen only once in a quarter.
Down gradation of customer segment will happen segment by segment (except
for cheque bounce cases). For example, Platinum segment customer will be
down gradation for Gold and then to Silver and so on. Thus a Platinum segment
customer will not be down graded directly to silver or to a lower segment. This
down gradation will be done once a quarter.
Customer Segment Basic Limit Multiplier
Deposit Multiplier
Blue 1.00 1.50
Silver 1.20 1.65
Gold 1.50 1.80
Platinum 2.00 2.10
Accordingly, Enhanced Effective Credit Limit = (Basic Credit limit * Limit
Multiplier) + (Paid Deposit * Deposit Multiplier)
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OR
Prescribed Specified Limit
Whichever is higher.
During the interim period, if the subscribers normal usage increases, the CIOU /
Field Customer Care enhances his limit by taking additional deposit.
Exposure
Exposure is the sum total of Billed outstanding usage and unbilled usage.
Unbilled rentals and other charges are not considered. Exposure is compared to
Enhanced Effective Base credit limit to arrive at the appropriate dunning action.
BILLING AND BILL DISPATCHING
Once when a sales team acquires a customer, the customer will take a plan
tariff, which he likes to activate. The customer account will activate when he
make a call to *228. As per the plan tariff taken by the customer, he is eligible
(allowed) for making calls from his mobile. Billing will be done only for post-paid
services.
Call Reading
When the customer makes a call from his mobile, a signal will be given to Base
Transmit (transceiver) Station (BTS) and from BTS a signal will send to Mobile
Switching Center (MSC). The BTS is the networking component of a mobile
communications system from which all signals are sent and received. Mobile
switching center (MSC) is responsible for connecting calls together by switching
the digital voice data packets from one network path to another-- a process
usually called 'call routing' which also support mobile service subscribers,
including user registration, authentication, and location updating.
When the receiver pickup the call, MSC will record the start and end time
duration of the call. This process is known as Call Duration Record (CDR). This
raw CDR will send to the Mediation Team and it will again send to the Rating
49
Team. The Rating Team will rate the call and charge as per the plan tariff taken
by the customer.
The following diagram illustrate the different parts in the flow of usage events
into bills and the different kinds of relationships between rating and billing:
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Reading the mobile/ landline Bill
Bills for service will be prepared on a monthly basis for each consumer. Bills will
be prepared by totaling all the rate of calls (based on rate plan, promotion etc),
SMS, and other services offered used by a customer. Bill will contain the
following information: address of the customer, account number, invoice
number, mobile number, invoice date, payment due date, billing period, credit
limit, previous balance, and due date.
How the billing system and billing cycle generate
Billing systems collect, rate, and calculate charges for use of
telecommunications services. Once a customer takes connection (becomes a
subscriber) from Reliance Communications, all the information about the
customer will be stored in the Front End System. The Front End System contains
the customer details like name of the customer, mobile number (RIM NO),
account number, promotion, credit information, billing information, unbilled
usage, history of complains, service change request, etc. When the system
record all the data entry regarding the customer, that movement onwards the
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customers billing system starts activate. The billing system includes billing cycle.
There are 9 billing cycles for Reliance Communications. The first bill of the
customer will generate with in 7- 15 days. This is because when the customer
takes the connection, he might not be in the billing cycles of the company. After
7-15 days he will put into any of the 9 billing cycle. Then onwards, each month
the bill will be generating for the customers according to his usage.
Bill Dispatching
Bills are printed from the Circle Office. The Circle office will cluster all the
customers on the basis of 6 clusters and directly send it through post office for
delivery to the customers. The customers will also informed by sending SMS or
mailing the bill to his e-mail ID regarding the total bills due and the due date of
the payments. By any reasons, if the bill returns back, it will be directly send
back to the Circle Office.
Prepaid Services
In a prepaid services environment, the final aggregate are done after every
event. The taxes and other fees must either be included in the rating of every
transaction or handled by some other process (i.e. taxes are included in the
price for services). In this case rating and billing are done after each usage
event. In prepaid service, payments are collected from the customer by
reducing their deposit balance.
COLLECTION
After the bill generation, it is the responsibility of the customers to pay the bill
amount before the due date. The collection process starts once the bills are out
to the customers. Each interval the customers will be informed to pay the bill
amount through different process. The customer care executives will send SMS
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to the customers regarding the o/s bills and the due date information’s.
Customers are out called 3 days before the due date for giving a reminding
about the payment. Even after the due date, if the customer is not responding,
then CIOU will physically visit the customers and have an enquiry about the
reasons of non-payment of the bill amount. CIOU will collect the payments based
on the pincodes mapped to him.
Customers can pay the bill amount in any of nearer Web world. They can also
drop the cheques in important locations. They can also pay the bills through
Internet using credit cards or by giving standing instructions to the bank; the
bank will pay off the required amount from the customers account.
Customers are allowed to pay their bills anywhere in India through cash. Only
local cheques are accepted to pay off their bills. There will be late fee charges if
the customers didn’t make the payment on or before the due date. It will be the
2% of the customer bill amount. This is done to ensure the customers to pay the
amount within the due date. If the customer didn’t pay the payments after 90
days, then it is the responsibility of the collection agency to collect the bills o/s
from the customers. They have to motivate the customers to pay the due
amounts. Even then if the customers is not paying the amount, then the
company will take the legal procedures.
Customers barring dates are different and they are prepared on the basis of
customer classifications that are as follows:
Blue, X, R, Q, C0
Due date & Incoming barring (OG Barring) (Suspension) Termination
0 07 Days 30 Days 90 Days
Silver and Gold
Due date Incoming Barring Termination (OG Barring) (Suspension)
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0 14 Days 30 Days 90 Days
Platinum
Due date Incoming Termination (OG Barring) (Suspension)
0 30 Days 60 Days 90 Days
Reactivation
Reactivation of customers connection will be done only when the customer make
the payments of his bills. If the customer pays the full amount of his bills dues,
the system will automatically reconnect the connection. The company not at all
entertains partial payments and wont take into consider the reconnection of the
customers.
CHURN MANAGEMENT/ RETENTION
One of the best part of Reliance communication is that there is only very less
churn of customers happening. There are two type of churn. They are;
1. Voluntary from customers.
2. Involuntary from customers.
Voluntary from customers:
These are those customers who are the defaulter or non-payment of bills. For
such kind of customers, the retention programs are followed as under:
First time C3 staffs will meet these customers and ask them about the problems
they are facing from Reliance and try to solve the problem there itself. If it didn’t
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works, CIOU will forward the details of the customers to the Cluster Office and a
well-trained employee will make call from retention helpline and try to fix the
problems. Even if it is a failure to retain the customer, there will be a customer
visit by CRE’s and try to fix the problems. They will inform the CIOU’s wheter this
customer is retained of failed to retain.
Involuntary from Customers:
These are also the customers who are not paid the bills on time. There is a
debtor age if the customer didn’t pay the bill. If he crosses the 50th day, the
agency will send CRE’s to retain the involuntary customers.
CUSTOMER CARE
The service is being offered to customers by Reliance Communication is through:
Reliance World
Mega Customer Care Centers
Town Offices
Web World Expresses (Franchisee outlets)
CC Annexes
These points are equipped to handle, customer inquiries, requests, and
complaints. It is also having online connectivity to the customers. Customers
are mapped on the basis of their pincode and will be forwarded to Web World
Express. There are 333-customer care help line numbers in which customers
quires can be solved. It’s a toll free number for all Reliance customers, which
is situated in Chennai. CIOU’S of Web World Expresses will assist customers
regarding their current issues. The customers make an average of 18000-
20000 calls in a day. Out of total walking customers to WWE and Reliance
World, 85%-90% of problems are closed online in system.
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HUMAN RESOURCE DEPARTMENT
The Human Resources Management (HRM) function includes a variety of
activities, and key among them is deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees, ensuring they are high performers,
dealing with performance issues, and ensuring your personnel and management
practices conform to various regulations.
STRUCTURE OF HUMAN RESOURCE DEPARTMENT
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CIRCLE HEAD
Time Management Muster Rolls Performance Appraisal Legal Comp- Pay Roll liances Activity
Register
Updates
Activities also include managing your approach to employee benefits and
compensation, employee records and personnel policies. Usually small
businesses (for-profit or nonprofit) have to carry out these activities themselves
because they can't yet afford part- or full-time help. However, they should
always ensure that employees have and are aware of personnel policies, which
conform to current regulations. These policies are often in the form of employee
manuals, which all employees have.
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Recruitment Operations Legal
NetworkPersonal Business
Enterprise Business
The main duty of HR Manager is to Ascertain human resource requirements for
the office ensuring the timely advertisement and filling of vacancies. He has to
recruit the candidates for the entire business of Reliance Communications. He
has to take care the Employee Life Cycle Management. Employee Life Cycle
Management Provides life-cycle management capabilities that help companies
support employees through every phase of their service with the company, from
recruitment through training, development, and retention. He has to enable the
company to find the best people, leverage their talent, align employee goals
with corporate goals, maximize the impact of training, and retain top performers.
If any vacancy arises in any of the department, the departmental head will
inform the HR Circle Head Manager. Then it is the responsibility of HR manager
to find the suitable candidate to the vacant posts. There are altogether 100
employees in Reliance Communications of Kochi. There are Ten HR managers to
take care of these employees and employee’s related activities.
Recruitment
The sources of recruitment of candidates in Reliance Communications are as
follows:
HR direct call
Employee referrals
Campus interview
Consultancy
Attracting and retaining the right people is the cornerstone of an organization's
success. The key to successful recruitment is to strengthen your relationships
with both the current and the potential workforce. By the above sources of
recruitment policy of the company, candidates are called for the interview.
Selection Process
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The employer performs various personnel selection methods where candidates
participate, such as interviews or assessment center sessions. The selection
process has several rounds of interview for a candidate to fill the vacant post.
These rounds are as follows:
HR round interview
Business round interview
State Head interview
Head of HR OF circle Office
In the First round, HR manager will looks the candidate’s expectations. He will go
through the candidate’s certificates and qualifications as per the profile of the
job. If the candidate accepts the terms and conditions which is already prepared
by the Business Head Quarters, he will be taken to the other three rounds. The
HR manager will take the candidate along with him till the next two selection
processes. This will helps the HR Manager to know whether this candidate is
following the cardinal principal of recruitment or not.
If he successfully completes the 4 rounds of selection process, then both parties
will negotiate about the salaries and other incentives. If the candidates accept
the offer, the HR employer closes the recruitment cycle and prepares for their
hiring.
Approval Process
The HR manager should also get the approval from the below persons in order to
appoint the selected candidates.
HR will send an approval proposal to Circle Head. He also has to send the
proposal to online recruitment management system. It’s a portal to upload the
candidate’s approval. Once when he sends it to online recruitment management
system, it will directly submit for the entity HR Manager. After getting the
approval process HR has to again send the proposal to Corporate HR and top
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Management and later it to SAP team. If the SAP team accepts the proposal
made by the HR Manager, he will give an SAP code and do other formalities and
sends a reply to Circle HR Department about the joining of the candidate. Then
the HR Manager will prepare an offer letter to the candidate and the joining date.
Operating Process
The operation works will start on the first day of the job. There are some joining
process to be completed by the candidate like medical check up, joining kit and
formalities. He has to fill the required forms and the Operation employee will
enter all these details in the SAP. This is a very important and critical process as
it contains all the information regarding employee and his salary divisions, etc.
After completing all the formalities, HR employee will send a welcome mail to all
employees of the Reliance Communications. There will be a two-day induction
program offered for the employee.
Legal Process
Employees are required to record their attendance. Some legal formalities of Tax
payments and other procedures will be maintained and updates all the details
regarding employee by the concern Legal employee
MARKETING DEPARTMENT
Marketing is the wide range of activities involved in making sure that you're
continuing to meet the needs of your customers and getting value in return.
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Marketing activities include "inbound marketing," such as market research to
find out, for example, what groups of potential customers exist, what their
needs are, which of those needs you can meet, how you should meet them,
etc. Inbound marketing also includes analyzing the competition, positioning
your new product or service (finding your market niche), and pricing your
products and services. "Outbound marketing" includes promoting a product
through continued advertising, promotions, public relations and sales.
MARKETING
Marketing managers develop the firm’s marketing strategy in detail. With the
help of subordinates, including product development managers and market
research managers, they estimate the demand for products and services offered
by the firm and its competitors. Marketing managers develop pricing strategy to
help firms maximize profits and market share while ensuring that the firm’s
customers are satisfied. In collaboration with sales, product development, and
other managers, they monitor trends that indicate the need for new products
and services, and they oversee product development. Marketing managers work
with advertising and promotion managers to promote the firm’s products and
services and to attract potential users. Marketing managers are following two
types of Communications; they are Below The Line (BTL) and Above The Line
(ATL). The marketing department is a team of six members with a head.
The main functions of each marketing managers are as follows:
1) Prepaid Product Manager: -
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Prepaid Product
Postpaid
Product
Events of promotio
n
Marcomm &
outdoorsVAS
MIS
It is the responsibility of prepaid product manager to develop new products
related with prepaid, market research, competitors proportion, modifications in
existing prepaid products, finding the existing customers and segment it on the
basis of customer preference and promoting the prepaid products. He also has
to handle the prepaid promotional budget and acquire new customers by co-
ordinating with the sales teams through advertisements and other marketing
tools.
2) Postpaid Product Manager: -
Postpaid product manager is responsible for the development of new postpaid
products, market research, competitor’s proportion, and modifications in existing
postpaid products, finding the existing customers and segment it on the basis of
customer preference and promoting the postpaid products. He also has to
handle the postpaid promotional budget and acquire new customers by co-
ordinating with the sales teams through advertisements and other marketing
tools.
3) Events of promotion Manager: -
An Event Manager will do the plans and executes the event. Some of the
responsibilities of an event promotion manager are:
To produce and measure the effectiveness of all events,
Manage all online events,
Working with internal and external resources,
Ensure all communications and messaging is aligned with the clients,
Responsible for all advertising, promotions, marketing, sales, and public
relations.
Release adds to agency.
The event manager is an expert at the creative, technical and logistical elements
that help an event succeed. These managers direct promotion programs that
combine advertising by following the Bellow The Line (BTL) type of
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communications and has to take care of marketing programs like road shows,
grand opening events, sponsorships, societal marketing, tie-ups, merchandizing,
adhock events, sales promotions, melas/ exchange functions, etc.
4) Marcomm & outdoors manager:-
These managers explore cost-effective promotional avenues, and do maximum
commitment to make the program a great success. They totally focus on
companies’ client's sales and marketing success by creating a marketing or
publicity strategy through the marketing programs like print communications
materials, arrange press release & press conference, keep in touch with media,
providing fulfillment services, hoarding, branding outlets public relations etc.
These managers direct promotion programs by following the Above The Line
(ATL) type of Communications.
5) Value Added Services (VAS) Manager: -
Value-added services (VAS) are one of the core functions of Marketing
Department and core services of Reliance Communications. VAS Managers will
create new contents and promote it to the customers. VAS has unique
characteristics and they relate to other services in a completely different way.
Some of the Value Added Services providing for the customers are new ring
tones and make them hear the songs by making calls to them, video clipping,
cinemas information’s, documentary of important personals, etc. This process
will update and ensure the customers about the new products lounge. VAS
Manager will prepare the budget for the VAS activities and processes.
6) Management Information System (MIS)
MIS manager will monitor and control the marketing plans and budgets prepared
by other marketing managers by co-ordinating with them. On the basis of the
budgets and plans he will prepare periodic reports to management. This is made
order to find out the deviations from actual planning process. It is his
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responsibility to correct the budgets if it is deviating from the actual plans. All
these processes are done based on the MIS reports.
BUSINESS COMMERCIAL DEPARTMENT
One of the most important departments of Reliance Communication is Business
Commercial. The key responsibilities of Business Commercial department is as
follows:
Validation of product pricing, tariff plans and marketing strategies.
Complication and analysis of revenue trends.
Periodical management review.
Validation of business processes.
Analysis of all higher levels.
BUSINESS COMMERCIALS
REVENUE ASSURANCE
Revenue Assurance (RA) is a niche business activity most commonly undertaken
within businesses that provide telecommunication services. The activity is the
use of data quality and process improvement methods that improve profits,
revenues and cash flow. Revenue assurance is a practical response to perceived
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Fraud Management
Revenue Assurance AOP & MIS
Channel Management
or actual issues with operational underperformance, most commonly relating to
billing and collection of revenue.
Typical Causes of Revenue Leakage
Although the scope of revenue assurance has not been agreed, most
commentators would agree the following are common examples of revenue
leakage:
Corrupted records of actual phone calls.
Lost call records (from either the provider's own network or from a third-
party network provider).
Incorrect rating.
Missing components or surcharges on a customers' bill.
Incomplete customer data preventing billing.
Inconsistency between services assigned to a customer per network and
billing.
There is some debate about whether the losses caused by fraud fall within the
remit of revenue assurance or need to be managed by a distinct specialization.
However, there is no debate that this is also a significant source of financial loss
There are a large number of terms, which are frequently used in revenue
assurance work. Ideally, when we talk of “usage”, “billing assurance” or
“revenue loss” the definitions should be the same across the industry.
The methods followed by the company to calculate Revenue leakages are as follows:
De Dupp check
This method is used to check the suspected name, address, place, pin code, date
of birth etc… of new customers in the existing customer database. All the data
about the customer is there in the database. Once when a new customer take
the connection, it is the responsibility of the revenue assurance department to
cross check the details of the customer whether this customer is already an
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existing customer or not. To find out the fraud customers, this process is very
important from the company point of view. The De Duping team will check the
new activated customer list with the help of software installed in the system.
When they run the software the system will identify the matched customers.
The process of De Duping is as follows:
The data of new customers will send from Bombay (National Head Quarters) by
De Duping team to Circle Office. The circle office will cluster whole data about
the new customers who is mapped to a particular area on the base of pin code
for re-address verification. They will check CAF through OMIDOCS port (it’s a port
where Reliance Communications will get the scanned copy of customers). On the
basis of the verification, the cluster office will send a report to Circle office. This
report will clearly depict why this problem arises, i.e. is it happen because of any
genuine reason or is it might be a fraud customer, etc. Then the Circle Office will
update the reasons in a simplify porter. If the customer is having a genuine
reason for taking new connection, then no actions will be taken from the part of
company. If they find out any fraud in the customer, then they will bar the out
going calls of the customer as soon as possible.
Regarding this matter the company will inform the issue to the customer through
SMS and then send a letter saying them to clear the account with in 10 days or
else the new connection will be disconnected. After the 20th day, the customer’s
connection will be suspended if he didn’t pay the amount. The Collection
Recovery Operate Unit (CROU) will collect the amount from the customers. Once
they pay pack the old outstanding amount of his old account, the company will
reactivate the new connection. Some times, CROU will waver some amount to
the customers if necessary or required.
The town clusters should give the report about the reactivation to cluster office
with in 5 days. If they didn’t report back to circle office about the matter, the
circle office will bar the connection of the customer and on the basis of the
report received later, will take necessary actions.
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Collection Recovery Operation Unit (CROU)
A customer who is having more than 80 days debtor age (not making payments
even after the due dates), it is the responsibility of CROU’s to collect those
amounts from them. Even the Circle Office and Cluster Office will drive these
collection agencies to collect the amount from those customers. This is allocated
to collection agencies on the basis of town base. It is also the responsibility of
CROU’s to recover the Fixed Wireline Phones (FWP) from the terminated
customers.
FRAUD MANAGEMENT
Analysis of billing records is a key driver to help minimize revenue and service risk exposure.
Fraud Management Cell (FMC)
This matter arise when a customer is activated his connection without having
sufficient payments. Still the customer might be enjoying the STD/ ISD
connection. FMC operators will take the whole Reconnection dump of customers
who made calls over credit limit. It is an internal audit done by FMC operators by
taking daily base report. This daily report will send to Circle office by FMC
operators and from the circle office it will again forward to town cluster office or
to the person who had activated the connection to the customer or to the cluster
CSD head/Cluster CC lead to collect the feedback from them regarding the
matter why it is activated with out sufficient payment of his bill. The Town
Cluster Office or to the person who had activated the connection to the customer
or to the cluster CSD head/Cluster CC lead will send the feedback to circle office
and they will send back to FMC operators. There wont be any actions taken by
the Circle Office for this matter of issue.
Frequent Cheque Bounce Activation
There are customers who will make their payments through cheques and credit
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cards. But some times these cheques will get bounced back because of several
reasons. The company will take the category of customers whose cheques are
frequently bounced back. Those customers connection will disconnect if it
happens. Once these customers make payments by cash, and then only
company will activate the connection. As per the company’s rule, these
customers should not activate their connection if he is a ‘C0’ category.
FMC international Roaming Team
The head office will focus about International or National Roaming customers.
They will take daily report about those customers to monitor them and pass
necessary information about the roaming and their payments. These customers
will be high customers of the company and will pay the amount as soon as
possible when they reach the credit limit to avoid the disconnection.
FMC Vigilance
It is the responsibility of Vigilance department to identify those customers who
take recent bulk subscription, which will be more than 8 fresh connections. This
activity is a part of Vigilance as suggested by DOT to identified suspected class
of illegal ILD call routing. If this kind of practices found out, circle office will send
report for Re address Verification and will be asked to find out the AV status,
purpose of usage, profile of customer, etc. these report will be taken only once in
a week/ month. These customers will be a corporate customer who is taking
more than 8 connections. If the customer AV is negative, then his OG will be
barred for all the fresh connections.
FMC- High negative balance in Customer Account
Some times Customers will be paying some amount in advance. Mumbai Head
Quarters will take the report of those kinds of customers on daily basis and send
it to Circle office and from there to Towns. From town it will be send to the
person who had entered this invoice to verify why the customer is paying the
amount in advance and also want to know whether this entry is correct one or
not. For example, a customer has to pay Rs 1000 as his bill amount, but he pays
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5000 in advance. Some ILD customers will pay in advance talking a precaution
for an uninterrupted services. So he will check whether this payment is correct
or not or is it a wrong entry from his part. Sometimes when a customer make
payment in web world, he will twice enter the payment unknowingly, or may be
a wrong entry of numbers, or he may enter the cheque number instead of
amount number etc. Then he will send back the report about the payment
details to Circle Office and they will send it to the Head Office.
FMC- Daily Basis Monitoring Adjustment Passed
The Head Quarters will checks the daily adjustments like wrong billing
adjustments, waver made to the customers, wrong plan selections even after the
request send by the customer and it didn’t effect in the system, etc. They will
send a report to the Circle office to find out why this adjustment has been made.
Circle Office will track the person who had made this adjustment and get back a
report why it happens so and send back it to the Head Quarters.
FMC- Late night call usage Monitoring/ High Call count
Monitoring/ Roamers across India
This is one of the important parts of revenue assurance. This is done mainly to
monitor high usage of calls who makes more than 100 calls during the last 24
hours. This is also done to monitor the late night call usage in between 12 am
and 7 am. Tracking the customers who make calls under this category will helps
the company to identify high usage customers profile, find out fraud customers
as soon as possible and to follows TRAI regulations and whether the owner of the
mobile is making these calls or not, etc.
AOP & MIS
MIS manager will monitor and control the money flow of Circle office. He will
monitor the performance of prepaid and postpaid businesses and co-ordinate
with concern department if necessary. He will prepare Annual Operating Plan
(AOP). On the basis of the budgets and plans he will prepare periodic reports to
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management. This is made in order to find out the deviations from actual
planning process. It is his responsibility to correct the budgets if it is deviating
from the actual plans. All these processes are done based on the MIS reports.
CHANNEL MANAGEMENT
Channel manager will appoint address issues of the customers, commission
processing’s to various channels, Account reconciliation, full and final settlement
of the termination of the customer.
Web World Express (WWE)
Web World Express should pay to Reliance Communications an initial sigh up
fees, incremental fees and security deposit as stipulated by Reliance
Communications. Such security deposit is refundable when this agreement is
terminated after adjusting any outstanding dues to Reliance Communications.
WWE entered into the business of operating as a service provider by operating
the Web World outlets and thus carry out the business of providing services to
the customers of Reliance Communications.
The services provided by WWE are as follows:
Fulfillment of channel partners mapped to WWE
Sale of accessories and Java Green products
Address Verifications of subscribers
Customer accounts creation in the system
Customer services like bill delivery, bill collection, query resolution, MACD
request, customer exit, customer expectations handling, etc.
Reliance Web Stores Ltd (RWSL)
It’s a sister company of Reliance communications. They purchase the hand set
from Reliance communications infrastructure limited (RCIL), which is authorized
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for processing handset dealings. Reliance Web Store Ltd is a franchisee of
Reliance Communications. RWSL will provide all the facilities to the Reliance
Communications to operate the business. They provide building, furniture’s,
employees, and all other infrastructure to run the business so that they have the
entire control over Reliance Web world.
SHARED SERVICES OF RELIANCE COMMUNICATION
The activities that are common for all the departments will come under the Shared Services.
Project Department
The main roles of project department are as follows:
Expansion of wireless network
Expansion of wireline network
Expansion of building/ infrastructure, etc.
The main tasks of project department are making route survey, arranging the
required contractors for site construction, electrical works of office, land
acquisition for tower erection, fibre laying, accruing machinery, tools and
accessories, contractors payment processing, capitalization related activities,
etc. They will also take care of acquiring new projects by interacting with the
entire department for the company.
Account Department
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It is the responsibility of Accounts Departments to do the following business:
Budget preparation and monitoring
Service / purchase order processing
Vender Payments.
Bank reconciliation and reimbursements of office advance accounts
Some other responsibilities are finalization of accounts, coordination with state
offices, reviews and controls, system maintenance, procedures and processes,
fund arrangements, audit coordination, payroll and HR-Compliances with all
statutory requirements, etc.
Banking
The Department of Banking Operations is a key player in three of the Bank's
core functions: Currency, Financial System, and Funds Management.
The key responsibilities of banking department of Reliance communications are
as follows:
Cash management
Dialogue (formal discussion and negotiations) with banks
Bank guarantees management
Funding of bank accounts
Banking architecture
It is the responsibility of banking employee to create a separate bank account
use for the payments and collections, payments to be centralized at Mumbai for
routine/ operating expenses, ensure the collections from customers are realized,
make sure the fund made available at Head office at earliest, manage payments,
etc.
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Legal Department
The main functions of legal department are as follows:
Collection and revenue related – Litigation
Defend Litigation against the company
Consumer disputes at CDRF and TDSAT
Taxation appeals
Intellectual property rights
Legal research and identification of industrial Specific Law
Regulatory, Compliance and Liaison
Law enforcement Agency Co-ordination
Deal Project problems as per Government rules for tower projects
Budget preparation and forecast of tower
Asset Management
Tracking assets is an important concern of every company, regardless of size.
Assets are defined as any permanent object that a business uses internally
including but not limited to computers, tools, software, or office equipment.
While employees may utilize a specific tool or tools, the asset ultimately belongs
to the company and must be returned. And therefore without an accurate
method of keeping track of these assets it would be very easy for a company to
lose control of them. As a result, companies reduce expenses through loss
prevention and improved equipment maintenance. They reduce new and
unnecessary equipment purchases, and they can more accurately calculate
taxes based on depreciation schedules.
How Reliance communication is maintaining the asset
management ?
Most of the assets of Reliance Communications are distributed from the Head
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Quarters. Company will purchase the assets that are required only in a bulk
manner. Reliance Communications is maintaining records of their assets in the
system with the help of the software called SAP. In SAP, it is easy to access
multiple account groups and efficient operations require appropriate
maintenance and strategic deployment of all equipment and facilities. Support
for organizational asset management covers the complete asset life cycle
including specification and design, development and procurement, operations
and maintenance, and disposal. As a result, businesses can minimize downtime
and reduce costs.
System has already classified the assets of the company into groups. When the
assets are received, it is the duty of the Asset Manager to identify the
appropriate groups that have to classify the asset. Once the asset is classified
into proper group, a code will be given for the asset. Coding is done to display
the asset so that it will show a Master data about the asset. There are many
companies in Reliance Communications. If we create a code it will be very easy
to spot the place of asset. These asset classes contain default values and control
elements, which we passed earlier to the individual assets once when we open a
new asset master record. This master data contains asset class , company code,
number of similar assets, date of capitalization, cost centre, insurance, leasing,
origin, description of assets, etc.
For example, if we purchase some cupboard, it will be grouped under Furniture
and Fixtures. Then we will give a Code to the Cupboard like “1001” and will
enter other required details about the cupboard. On the basis of this code given
and other details of cupboard, it will show the location cost centre and other
detail like the depreciation charges and the lifetime of the asset.
Acquisition of an asset
The company acquires assets either through External acquisition i.e. acquisition
from Vendor or by settlement through Asset Under Construction (AUC). If we are
acquiring the asset from vendors it will come under External Acquisition. The
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works that are in progress or Work Breakdown Structure (WBS) will come under
Asset Under Construction. After the completion of the work, it will be considered
and settled the same to Fixed Asset.
Retirement of Assets
Assets can be retired With Revenue and Without Revenue. In the case of With
Revenue, there are two possibilities, i.e. Partial Retirement or Full Retirement.
Partial retirement means partial sale of asset whereas Full retirement means
retiring the asset for full value. Without Revenue means there wont be any profit
from the asset at the time of resale.
Depreciation
Every month, the company will carry out Depreciation process. Deprecation will
reduce the value of the Asset as per the depreciation percentage fixed by the
Asset Master. The system will automatically provide the depreciation value as
per the Company Law and Income Tax point of view.
Purchase Requisition and Purchase Order
On the basis of the code, company will make the Purchase Requisition. The
system will pick all the details through code, date, classification of assets, etc.
Then a Purchase Order will be made on the basis of Particular place/ office. On
the basis of the purchase order, the vendors are supplying the assets. The
Purchase Order will contain the rate of goods per quantity, total value of goods,
different types of goods, etc. All has to follow the terms and conditions for the
purchase and sale of goods.
Goods Received Notes (GRN)
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Once the goods become the asset of the company, Goods Received Notes (GRN)
will be generated. It will contain the date of purchase. on the basis of Goods
Received Note, the concerned person will do the Invoice Verification (IV). He will
cross check the GRN with Purchase Order and on the basis of the goods
received, the Payments are made.
The maintenance of Assets won’t be recording in the system.
Advantages of Asset management in SAP
All details about the company’s assets can be track with in no time from
the system.
If any further modifications or advanced technology comes, then it can be
easily identify the required formalities.
The assets can be maintained very efficiently.
System itself finds out the depreciations of assets and tax liabilities of the
company.
RETAIL BUSINESS
Reliance World and City Distribution Centre (CDC) do the retail business of
Reliance Communications.
RELIANCE WORLD
Reliance World (RW), earlier known as Reliance Web World are owned by the
company to satisfy the Reliance customers by giving multi services and to
achieve the targets of Cluster Offices. Reliance World is a nationwide chain of
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world-class retail outlets for all Reliance Communications products and services.
It is designed to give the customer a delightful experience of the digital world of
information, communication, entertainment and utility services. There are 17
Reliance World all over Kerala. Reliance World is the retail interface initiative of
Reliance Communications. it is the largest retail chain in the history of India and
Indian retailing.
They provide services and supports customers of Reliance Communications.
The services provided by the Reliance World are as follows.
1) Broadband Centre (BBC): - As the name says, most of the services
provided under broadband are related with network facility. Besides a wide
range of phones and associated services we will find a whole array of digital
offerings at the Broadband Centre @ Reliance World., Reliance
Communications also provide an array of broadband applications spanning
video conference, high speed surfing and internet access, online and off- line
gaming, digital movies, Digital Services like digital music, eLearning, , and
virtual office, digital Electronic News Gathering, online examination facility,
airline tickets booking for Deccan Airlines and Kingfisher, & many more
services.
2) Customer Convenience Center (C 3) : - Here is the dealings of
handset sales, collection of bills, new connection facilities, terminations of
connections, customer care etc.
3) Java Green and coffee house : - These facilities are provided by Java
Green Pvt Ltd Company. They are using Reliance Communications for doing
their business, as they are a different business group. Here customers are
providing coffee shop facilities.
4) Private Financial Service (PFS): - This is also a different company.
They provide mutual funds counter service to the customers under these
stores.
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CITY DISTRIBUTION CENTRE (CDC)
For doing the business, stocks of the company should be sold. These stocks are
distributed through a chain of process. All the stocks are stored in the National
Ware House, which is in Mumbai. As per the request made by the Circle Sales
Team from Cluster Sales Team to the National Warehouse Sales Team, stocks
are send across to the State Ware House from there to CDC ware house and
send to the web world express and web world. From Web World Express and
Web World, these stocks will be transported to distributors and finally to the
retail outlays. If there is any complaint related with stocks it will be informed in
the vice versa process. To maintain the books of account of stocks there are 2
companies working under CDC.
1) Reliance Communications Infrastructure Ltd
2) Reliance Communications Ltd
Reliance Communications Infrastructure Ltd
RCIL deals with the mobile sectors that are brought by the customers. As the
company does not take these mobiles back from the customers, it is the asset of
the customer itself and is not repayable for the mobiles.
Reliance Communications Ltd
They deal with landlines stocks of accounts. Hand lines are company’s own
property. They are taken back from the customers once the agreement is
terminated or the customers don’t want to carry on with landline connections.
Activities of CDC’s
1) Recharge Vouchers (RCV)
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All the vouchers are billed in Reliance Communications Infrastructure Ltd.
Customers are provided coupons to recharge their handset or mobile
connections.
2) Public Call Office (PCO)
CDC’s directly does the activities for PCO. The local business associations (LBA)
will provide the services to the PCO holders like installations, coupons,
recharges, etc. these LBA’s are working according to the pincodes mapped.
3) LOGISTIC
One of the main activity of CDC is material movements i.e. transportation and
storage of goods and services. CDC will helps to create accurate forecasts to
ensure product availability and reduce inventory levels. By integrating logistics
management with procurement functionality, organizations can ensure prompt
purchasing and on-time delivery to customers.
4) ACCIOUNTING AND BANKING
Another main activity of CDC is maintaining receipt of the transferred and
distributed stocks and banking all the distributed amount.
5) Termination of contract
It is the responsibility of CDC to return back the stocks to warehouse after the
termination of contract among customers. It will be return back to CDC as used
return products
COMPETITIVE ANALYSIS
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Mobile (GSM & CDMA - Mobile) Statistics
MARKET SHARE OF MOBILE OPERATORS
OPERATOR
TOTAL SUB BASE as on 31st Jan'07
TOTAL SUB BASE as on 28th Feb'07
NEW ADDITIONS IN Feb'07
MARKET SHARE % age
AIRTEL 33,731,954 35,440,406 1,708,452 22.88
AIRCEL 4,802,346 5,094,840 292,494 3.29
BPL 1,062,255 1,065,818 3,563 0.69
BSNL 24,442,364 25,444,271 1,001,907 16.43
HUTCH 24,414,358 25,343,179 928,821 16.36
IDEA 13,071,949 13,640,000 568,051 8.81
MTNL 2,498,234 2,578,822 80,588 1.66
RELIANCE 3,876,216 4,110,717 234,501 2.65
SPICE 2,519,927 2,578,584 58,657 1.66
BSNL (CDMA) 72,050 74,514 2,464 0.05
INCOM (CDMA) 10,711,964 11,091,852 379,888 7.16
MTNL (CDMA) 112,723 114,409 1,686 0.07
RAINBOW (CDMA) 34,345 35,226 881 0.02
RELIANCE (CDMA) 27,511,327 28,283,924 772,597 18.26
TOTAL 148,862,012 154,896,562 6,034,550 100.00
Table 1
(Source: Report of Telecom Operators Book)
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THE MARKET SHARE OF ALL THE MOBILE OPERATORS OF INDIA
MARKET SHARE OF MOBILE OPERATORS
23%
3%
1%
16%
16%
9%2%
3%
2%
0%
7%
0%
0%
18% Airtel
Aircel
BPL
BSNL
Hutch
Idea
MTNL
Reliance
Spice
BSNL (CDMA)
INCOM (CDMA)
MTNL (CDMA)
RAINBOW (CDMA)
RELIANCE (CDMA)
Figure 1
STATISTICS OF TOP 4 MOBILE OPERATORS OF INDIA
TOP MOBILE OPERATORS OF INDIA
23%
16%
18%
16%
27%Airtel
BSNL
RELIANCE(CDMA)Hutch
Others
Figure 2
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The figure above shows a comparison of the share of the mobile operator
market. Of the total market share, the top four companies share a market pie of
almost 74%. We can find that the market leader is Bharati Airtel (23%), followed
closely by Reliance Communication (18%). The other players who have a big
share in this pie are BSNL and Hutch. the fifth part of the pie (named as Others)
are constituted by other competitors such as Idea, Spice, MTNL,Tata Indicom etc.
The main competitor of Reliance communication in India is Bharati Airtel, BSNL,
Hutch, Idea and Tata Indicom. While compared with BSNL and Hutch, Reliance is
performing extremely well. Airtel is the only operator who is ahead of Reliance
and Airtel itself is the biggest competitor of Reliance Communications. Airtel has
the highest number of networks all over India, more than Reliance. They even
have good network status in many towns and villages where as Reliance has
recently expanded its services to towns and villages. These are some other
points, which we have to look forward to in this competitive scenario. New age
technologies that are fast picking up pace and are being used more and more to
lure customers are:
Wireless Services
Wireless Handsets, Wi-Fi Equipment
Number of Wireless Subscribers
Worldwide 3G Subscribers
Global Cell Phone Subscribers, etc.
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WHAT MAKES RELIANCE COMMUNICATION DIFFERENT ?
When we compare Reliance Communications with any other operator in India,
we have to go through some of the distinctive features of the company. Reliance
is far ahead, improving their products and services more than other operators.
Because of its consistent performance, it will soon emerge as the ‘Number 1’
mobile operators of India in the near future. The main features and services
provided my Reliance as compared to other operators are listed below:
National wide services and network permitting nationwide offer and strong
economies of scale.
Unified license for mobile/ basic services, NLD and ILD, defining a full offer
proposal.
Technological edge of 1*CDMA network with 1*RTT handsets for all client
base.
Strong financial capability.
Better quality voice and high data speeds of CDMA.
Strong brand equity of Reliance
Control over the handset business, delivering lower price for latest
generation handsets.
Non-replicable client prices.
Exclusive stores all over India.
State of the art customer service and IT systems.
Identified large databases of potential mapped on a geographical basis.
Fully convergent telecom offering.
No legacy issues.
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SWOT ANALYSIS
STRENGTH
Strong parent company backup.
Strong current customer base.
Innovative marketing, sales, and distributions
Brand image.
Strong NETWORK.
Improving customer satisfaction with reliable delivery and timely,
accurate billing
“World class” customer service provider.
High customer retention rate.
Strong financial history/ Back up.
Employee strength to customer services.
Customer friendly process.
Integrated package of communication services.
Technology.
WEAKNESSES
Network not spread in all parts of villages.
Their targeted customers are the people who are in the urban areas not
the rural areas.
Decision making process is centralized and hence time consuming.
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OPPORTUNITIES
Sustained high growth rate in the economy.
Spending power among public had steadily increasing.
Currently focusing on GSM based services.
An expanding Indian economy with increased focus on the services sector.
Population mix moving favourably towards a younger age profile.
Urbanization with increasing incomes in telecom.
Revenue focus.
THREATS
Acquiring decision of Vodafone by Hutch.
Regulation.
Competition catching up.
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LIMITATIONS
Time constraints to do a more detailed analysis about the organizational
process.
The time period (year-end) and the time duration (six weeks) were not
appropriate.
Non-availability of financial statements for computing financial ratios.
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RECOMMENDATIONS
More effective performance reviews needed.
Job description to be made efficiently to enable the employee to know
what is expected to them.
The entire employees need to be trained properly and fully informed to
make effective decisions for the organization.
The circle offices should be given authority to make decisions on their
own.
Undertake social responsibility activities once in a month.
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CONCLUSION
The company may attain the status as one of the best Indian company not only
in telecom sector but as a whole in near future with International reputation.
The company can improve their services to the customers so that the revenue
they focused to earn can achieve very easily.
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BIBLIOGRAPHY
SOURCES
1. http://www.reliancecommunications.co.in
2. http://www.gm.reliancecommunications.co.in
3. http://www.ril.com/
4. www.google.com
5. www.coai.in
6. www.wikipedia.com
7. www.auspi.in
8. http://www.ibef.org/industry/telecommunications.aspx
9. http://www.indiatelecomnews.com/newdetails.asp?newsid=543
10.http://www.coai.in/docs/COAI%20Presentation-Rotary%20Club%201-09-
03.pdf
11.http://www.ficci.com/indian-economy/indian-economy.pdf
12.http://www.researchandmarkets.com/reportinfo.asp?report_id=312540
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APPENXIX
Table-1.1: - Monthly addition to the mobile phone network (in million) Source: Telecom Regulatory Authority of India
2002 2003 2004 2005 2006 2007January 0.73 1.64 1.77 4.69 6.78February 0.79 1.67 1.67 4.28 6.2March 0.95 1.91 0.73 5.03 April 0.28 0.64 1.37 1.44 3.88 May 0.29 2.26 1.33 1.7 4.25 June 0.35 1.42 1.43 1.98 4.78 July 0.36 2.31 1.74 2.44 5.28 August 0.49 1.79 1.67 2.74 5.9 September 0.37 1.61 1.84 2.48 6.07 October 0.53 1.67 1.51 2.9 6.71 November 0.72 1.9 1.56 3.51 6.79 December 0.8 1.9 1.95 4.46 6.4
---------------------------------------------------------------------------------------------
Table-1.2: - Growth of the telecommunication network (in million) April-February
Fixed line (including
WLL fixed)
Total No of
Increase of network
in Fixed line
Cellular mobile phones
(including WLL
mobile)
Total No of Increase in Cellular mobile phones Total
phones
Total no of
phones network Increase
1996-97 14.5 0.3 14.9 1997-98 17.8 3.3 0.9 0.5 18.7 3.81998-99 21.6 3.8 1.2 0.3 22.8 4.21999-00 26.8 5.2 1.9 0.7 28.7 5.82000-01 33 6.2 3.6 1.7 36.6 7.92001-02 39.1 6.2 6.4 2.9 45.6 92002-03 41.5 2.4 13 6.6 54.5 8.92003-04 42.6 1.1 33.6 20.6 76.2 21.7
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2004-05 45.9 3.3 52.2 18.6 98.1 21.92005-06 49.7 3.8 90 37.8 139.8 41.7
2006-07 April-February 40.391 -9.3 162.5 72.5 202.9 63.5
Source: Telecom Regulatory Authority of India
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