A

3CET REPORT

ON

RELIANCE COMMUNICATIONS

SUBMITTED TO : SUBMITTED BY :

MR.DIPAK SINHA MANOJ RAI

8NBLK061

RELIANCE COMMUNICATIONS

A DREAM COME TRUE:

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have access to affordable means of information and communication. Dhirubhai, who single-handedly built India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the tools of information and communication available to people at an affordable cost. They will overcome the handicaps of illiteracy and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was commissioned on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life.

FOUNDER

Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless.

As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets, the champion of shareholder interest.But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the world’s largest shareholder families.

VISION

“We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India.

We will offer unparalleled value to create customer delight and enhance business productivity.

We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”

BUSINESS

India ’s leading integrated telecom 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 71 million customers.

Its business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. It constantly endeavours to achieve customer delight by enhancing the productivity of the enterprises and individuals they serve.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolution in India.

BOARD OF DIRECTORS

Shri Anil D. Ambani - Chairman

Prof. J Ramachandran

Shri S.P. Talwar

Shri Deepak Shourie

Shri A.K.Purwar

CORPORATE OFFICE

Address:

Reliance Communications LimitedDhirubhai Ambani Knowledge City Navi Mumbai 400709, India.

Tel No. : 3037 3333

WORK ENVIRONMENT

Where merit is rewarded

Reliance Communications is in the process of setting up best-in-class work facilities across major cities in India. At Mumbai, the Dhirubhai Ambani Knowledge City (DAKC) hosts more than 10000 professionals with a range of office complexes, food courts, avenues and boulevards, fountains and video conferencing.

Apart from the physical work setting, Reliance Communications is fostering a work culture marked by positive energy, team work and performance ethic.

We are committed to building a non-hierarchical and open work environment and a result-driven meritocracy.

COMPETITORS OF RELIANCE COMMUNICATIONS

(1) Bharti Airtel

(2) Vodafone

(3) Bsnl

(4) Idea crllular ltd.

(5) Tata indicom

(6) Aircel

Industries Where Reliance Communications Ltd. Competes

Telecommunications Services Wireless Communications Services

Wireless Network Operators

Data Services

Fixed-line Voice Services Providers

Telecommunications Infrastructure Development

MAJOR COMPETITORS

Bharti Airtel : Bharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India’s largest cellular service provider with more than 92 million subscribers as of February 2009. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore

The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station.

Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar.

VODAFONE: Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas.

BSNL : Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. It is India's largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 90 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is planning an IPO with in 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over $100 billion.

IDEA CELLULAR : IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 100,000 employees belonging to 25 nationalities. Idea Cellular is a leading GSM mobile service operator with pan India licenses. With a customer base of over 36 million in 15 service areas, operations are soon expected to start in Orissa and Tamil Nadu-the first steps in providing pan India services covering over 90% of India's telephony potential. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market.

TATA INDICOM : Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies, an Indian conglomerate. It operates under the brand name Tata Indicom in various telecom circles of India. The company forms part of the Tata Group's presence in the Telecommunication Industry in India, along with Tata Teleservices (Maharashtra) Limited (TTML) and TATA COMMUNICATIONS LTD.

Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle

AIRCEL : Aircel is a joint venture between Maxis Communications Berhad of

Malaysia and Apollo Hospital Enterprise Ltd of India. It is India’s seventh largest GSM mobile service provider with a subscriber base of over 17 million. It has a market share of 6.3% among the GSM operators in the country. As on date, Aircel is present in 11 telecom circles (Assam, Bihar, Himachal Pradesh, Jammu & Kashmir,Kerala, North East, Orissa, Tamil Nadu, Karnataka, West Bengal, Delhi) and with licences secured for the remaining 10 of the 23 telecom circles, the company plans to become a pan-India operator by 2009..

OPPORTUNITIES

The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010.

India added 113.26 million new customers in 2008, the largest globally. In fact, in April 2008, India had already overtaken the US as the second largest wireless market. To put this growth into perspective, the country’s cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008, taking the telecom penetration to over 33 per cent. This means that one out of every three Indians has a telephone connection, and telecom companies expect this pace of growth to continue in 2009 as well.

With the rural India growth story unfolding, the telecom sector is likely to see tremendous growth in India's rural and semi-urban areas in the years to come. By 2012, India is likely to have 200 million rural telecom connections at a penetration rate of 25 per cent. And according to a report jointly released by Confederation of Indian Industry (CII) and Ernst & Young, by 2012, rural users will account for over 60 per cent of the total telecom subscriber base

According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by 2012.

With only 33% tele density yet achieved the best is yet to come with the increase in per capita income of people,the multinational telecom companies are eyeing india as the potential market for investments as it has given a growth of more than 50% in a condition when global economy has taken a downward plunge.

Thus their exists galores of opportunities for Indian telecom operators ,the need is just to identify the opportunities at the right time and exploit them

TECHNOLOGY AT RELIANCE COMMUNICATIONS

It uses CDMA2000 1x technology for its existing CDMA mobile services, and GSM-900/GSM-1800 technology for its existing/newly launched GSM services

RelCom is also into Wireline Business throughout India and has the largest OFC backbone architecture [roughly 110,000 km] in the country.

CONCLUSION

Reliance communications a flagship company of the ADAG empire, is the no 2 telecom service provider in the country. After the launch of its GSM service it is likely to become India’s numero uno company if it continues with its present growth rate .it added a record 5 million customers in Jan 2009 and 3.38 millions in February.

With a highly untapped Indian market having a tele density of just around 33% there is a huge potential for the company to grow. The company need to stick to its policy of providing value added services at minimal cost to continue it growth momentum and to face cutthroat competition being offered by other brands and MNCS which are eyeing India as a potential hub for investment and are entering into M&A’S with Indian telecom companies to get access to the Indian market, the Malaysian brand AIRCEL and VODAFONE being a testimony to it.

The company with its present goodwill and value to customers is likely to become the most preferred brand and in the years to come it won’t be unwise to say that its going to top the list as India’s no 1 telecom company.