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As a requisite forTwo Years full Time Regular Degree Course
OfPost Graduate Degree in Management in
PROJECT GUIDE: SUBMITTED BY:
Acknowledgement
I would like to thank and owe my gratitude to “RELIANCE COMUNICATION” for giving me an opportunity to work on this project titled, “ANALYSING THE PREFERENCES OF SMEs TOWARDS IT SOLUTIONS”. I would also like to thank Mr. AJAY CHUG, CIRCLE HEAD, MARKETING, RELIANCE COMMUNICATION, DELHI who has been generous with his, advice and support during the entire course of the project. The successful completion of this project is a result of his guidance and the timely inputs I have received from various other members of the Marketing team at RELIANCE COMMUNICATION. I also thank my internal project guide GAUTAM MAHAJAN, (MANAGER), RELIANCE COMMUNICATION who was always behind me and gave me the moral support during the project when ever I found myself at the loosing end. Besides I also thank all my faculty members who worked day and night for helping us.
I would also like to thank my external project guide Mr DHANANJAY KUMAR NIRMAL,(CHANNEL PARTNER) who was always there to extend a helping hand not only as a guide but also as a friend ,teacher and mentor. Last but not the least I owe my sincere gratitude to our Dean Dr. N.D Mathur & Director Dr. B C Sharma, School of Management,Shri Mata Vaishno Devi University, Katra, who were an inspiration to me and for giving me the opportunity to do this project.
I would also like to thank the people who have helped me in bringing out the best in the project, directly or indirectly.
PREFACE
It is being pleasure to work on the project “MARKET ANALYSIS OF SMEs PREFERENCES TOWARDS IT SOLUTIONS “
It is an exercise that is well planned and included in our course curriculum giving a valuable opportunity to experiment and exhibit our recently acquired management skills.
I tried to present the learning I went through during the training program about the IT preferences of various SMEs by the help of various interpretation tools as pie charts, bar graphs etc.
In the following pages an attempt has been made to present a comprehensive report of my study during my training period in RELIANCE COMMUNICATIONS, DELHI.
CONTENTS
S.NO.
TITLE
1. INTRODUCTION RELIANCE HISTORY RELIANCE AFTER DHIRUBHAI AMBANI RELIANCE ANIL D. AMBANI GROUP STRUCTURE OF RELIANCE ADA GROUP COMPANIES VISION VALUES CORPORATE GOVERNANCE CHAIRMAN’S PROFILE
2. TELECOMMUNICATION SECTOR TELECOMMUNICATION IN INDIA TRAI
3. COMPANY PROFILE RELIANCE COMMUNICATIONS VISION PRODUCTS
4. COMPETITORS AIRTEL MTNL TATA INDICOM
5. RESEARCH METHODOLOGY
6. ANALYSIS
7. FINDINGS
8. LIMITATIONS OF STUDY
9. SUGGESTIONS
10. SWOT ANALYSIS
11. CONCLUSION
OBJECTIVE
TO ANALYSE THE COMUNICATION NEEDS OF VARIOUS SMEs
TO ANALYSE THE SMEs PREFERENCES TOWARDS IT SOLUTIONSBY SEGMENTING THEM ON THE BASIS OF THEIR TURNOVER
TO ANALYSE THE SMEs PREFERENCES TOWARDS IT SOLUTIONS BY SEGMENTING THEM ON THE BASIS OF THEIR INDUSTRY
TO FIND THE MARKET SHARE OF RELIANCE COMMUNICATION.
AN
INTRODUCTION
TO
RELIANCE
RELIANCE HISTORY
The second son of a school teacher, Dhirubhai was
born in 1932 in the village of Chorwad in Gujarat in
circumstances that can best be described as modest. Driven
by hardship and want, hehad to drop out of school early.In
1949, at the age of 17, he went to Aden (now Yemen) in
search of opportunity, and worked as a dispatch clerk for
A. Besse & Co. A couple of years later, the company
became a distributor for Shell products and Dhirubhai was promoted to
manage the company’s oil-filling station at the port of Aden. It was here that
he dreamed of setting up and owning a refinery, which he later realized with
his petrochemicals venture.
He returned to India in 1958 to launch his first business venture, a
spice trading company named Reliance Commercial Corporation.
In 1962, Dhirubhai identified an emerging opportunity in yarn trading and
shifted to the new business. Three years later, he changed the name of his
company to Reliance Textile Industries Limited.
In 1966, he purchased land in Naroda, Gujarat, to set up a textile mill.
In 1975, a technical team from the World Bank recognised the Naroda mill as
one of the best composite textile mills in India and certified it as ‘excellent
even by developed country standards’. In 1977, the company went public.
At the time of the Reliance Textiles IPO, participation in the Indian capital
markets was largely limited to a small but influential elite which dabbled in a
handful of stocks. The great majority of India’s middle class chose to stay
away. Dhirubhai’s decision to prefer the capital markets over banks as the
primary source of funding for his ambitious expansion plans, was as daring as
it was unprecedented.
In the event, The Reliance IPO was an unlikely success. Against all odds,
Dhirubhai managed to convince a sufficiently large number of sceptical
middle class investors to put their money, and faith, in what was then a small,
relatively unknown company.
The subsequent growth and success of Reliance and its philosophy of
generously rewarding shareholders rapidly gave Dhirubhai an iconic status in
the Indian financial markets.
Under Dhirubhai’s charismatic leadership, the Annual General
Meetings (AGM) of Reliance took on the character of large public spectacles.
Typically held in large public arenas, and attended by thousands of adoring
shareholders, the Reliance AGM became a day to remember in the annual
corporate calendar of India. In 1986, the Reliance AGM held in Cross Maidan,
Mumbai, was attended by as many as 30,000 stockholders—a record in India’s
corporate history.
By the mid-80s, Dhirubhai had become something of a living legend, widely
hailed by peers and critics alike as one of the greatest corporate visionaries in
the history of post-Independent India. But Dhirubhai was never one to rest on
his laurels. In the early 80s, he had taken the first important step in strategic
backward integration for Reliance with the commissioning of the Patalganga
plant which initially manufactured polyester filament yarn and polyester staple
fibre.
In 1991, he set up Reliance Hazira, for the manufacture of petrochemicals—
the next link in the backward integration chain. At the time, Reliance Hazira
represented the single largest investment made by a private sector group in
India at a single location.
Meanwhile, Dhirubhai had firmed up plans of setting up a massive grassroots
refinery—the next big leap in his overall strategic roadmap for Reliance.
Conceived as the world’s largest grassroots refinery at the time, Jamnagar in
Gujarat was to have an annual capacity of 27 million tonnes.
In the face of formidable challenges, including a massive cyclone that
flattened the project site mid-way through construction, Reliance
commissioned the Jamnagar facility in 1999. It was a fully integrated refinery,
complete with a dedicated port and a captive supply of power.
The refinery was not only commissioned ahead of schedule, but also
set up at a cost that was significantly lower than the prevailing global
benchmark for a project of such magnitude. It was one of Dhirubhai’s great
dreams in life to see ordinary Indians enjoy the enormous economic benefits
of being able to access affordable yet world class telecommunications
infrastructure. He wanted Reliance to spearhead a communications revolution
that would dramatically cut down the cost of connectivity, and propel India
into the digital age. His ultimate ambition: To make the cost of a phone call
cheaper than that of a post card. It was therefore entirely logical for Reliance
to enter the telecommunications space when the sector was opened
up for private participation in the 1990s.
The rest, as they say, is history.
Today, Reliance Communications is India’s largest information and
communications services provider with over 20 million subscribers, and offers
the full range of integrated telecom services—at prices that are, by far, the
lowest anywhere in the world.
Dhirubhai left for his heavenly abode on July 6, 2002.
Dhirubhai Ambani founded Reliance as a textile company and led its
evolution as a global leader in the materials and energy value chain
businesses.
He is credited to have brought about the equity cult in India in the late
seventies and is regarded as an icon for enterprise in India. He epitomized the
spirit 'dare to dream and learn to excel'.
The US$ 20 billion Reliance Group is a living testimony to his
indomitable will, single-minded dedication and an unrelenting commitment to
his goals.
Shri Dhirubhai Ambani was an exceptional human being and an
outstanding leader. A man far ahead of his times, he epitomised the dauntless
entrepreneurial spirit. He dared to dream on a scale unimaginable before in
Indian industry. His life and achievements prove that backed by confidence,
courage and conviction, man can achieve the impossible.
From a humble beginning, he went on to create an enviable business
empire within a span of just 25 years. The US$ 54 billion Reliance Group is a
living testimony to his indomitable will, single-minded dedication and an
unrelenting commitment
Under Shri Dhirubhai Ambani's visionary leadership, the Reliance
Group emerged as the largest business conglomerate in India, and carved out a
distinct place for itself in the global pantheon of corporate giants. The Group's
track record of consistent growth is unparalleled in Indian industry and
perhaps internationally too. Today, the Group's turnover represents nearly 3
percent of India's GDP.
Shri Dhirubhai Ambani was not just firmly rooted in traditional Indian
values, but was also the quintessentially modern man, the man of the new
millennium. This was clearly reflected in his passion for mega-sized projects,
the most advanced technology and the highest level of productivity. The
corporate philosophy he followed was short, simple and succinct - "Think big.
Think differently. Think fast. Think ahead. Aim for the best".He inspired the
Reliance team to do better than the best - not only in India but in the world.
Prestigious awards and titles were conferred on him by national and
international organisations. He was acclaimed as the top businessman of the
twentieth century and lauded for his dynamic, pioneering and innovative
genius. His success story fired the imagination of the younger generation of
Indian entrepreneurs, business leaders and progressive companies. He was an
icon for them, a role model to be emulated.
The number of revolutionary precedents set by Shri Dhirubhai Ambani
are legion. His unique vision redefined the potential of the Indian corporate
sector as he challenged conventional wisdom in several areas.
He was probably the first Indian businessman to recognise the strategic
significance of investors and discover the vast untapped potential of the capital
markets and channelise it for the growth and development of industry. He was
supremely confident that finance would never be a constraint in executing his
projects because, as he said proudly, Indian investors would provide him with
the necessary resources.
And the investors never let him down. Shri Dhirubhai Ambani
succeeded in creating an investor base of historic proportions for the Reliance
Group. An unbreakable bond of implicit trust existed between him and the
shareholders. They placed their savings in his care and he worked with
unflinching sincerity to get them the best returns. He brought happiness and
prosperity into the homes of millions of investors.
For him, his people were his most important asset. He scouted around
for the best and most talented professionals, nurtured them and continuously
propelled them to aim for still higher goals. These highly motivated people
comprise the core of what he named: "The Reliance Family".
Shri Dhirubhai Ambani visualised the growth of Reliance as an
integral part of his grand vision for India. He was convinced that India could
become an economic superpower within a short period of time and wanted
Reliance to play an important role in realising this goal.
The Bhagavad Gita states, "The actions of a great man are an
inspiration for others. Whatever he does, becomes a standard for others to
follow." This certainly applies to Shri Dhirubhai Ambani.
We are fortunate to have had a man of Shri Dhirubhai Ambani's stature
in our midst. His sterling leadership qualities, remarkable foresight,
uncompromising pursuit of excellence, humility, prodigious capacity to
motivate and trust people will continue to guide and inspire future generations
at Reliance. We are proud and privileged to inherit this invaluable legacy.
Truly, men like Shri Dhirubhai Ambani are rare. They come gifted
with the power and the vision to change the destiny of nations, to alter the
course of corporate history. They are the empire builders, the stuff that legends
are made of. The legend called Shri Dhirubhai Ambani will never die. His
spirit will live on forever.
Spirit of Shri Dhirubhai H. Ambani Quotes at various forums
"Growth has no limit at Reliance. I keep revising my vision. Only when you
dream it you can do it."
"Think big, think fast, think ahead. Ideas are no one's monopoly."
"Our dreams have to be bigger. Our ambitions higher. Our commitment
deeper. And our efforts greater. This is my dream for Reliance and for India."
"You do not require an invitation to make profits."
"If you work with determination and with perfection, success will follow."
"Pursue your goals even in the face of difficulties, and convert adversities into
opportunities."
"Give the youth a proper environment. Motivate them. Extend them the
support they need. Each one of them has infinite source of energy. They will
deliver."
"Between my past, the present and the future, there is one common factor:
Relationship and Trust. This is the foundation of our growth."
"We bet on people."
"Meeting the deadlines is not good enough, beating the deadlines is my expectation."
"Don't give up, courage is my conviction."
Sh. Dhirubhai Ambani’s Stamp
On 28th December 2002, Ministry of Communications, Government of
India released a commemorative postage stamp on industrialist and founder of
the Reliance Group of Industries, Shri Dhirubhai Ambani in Mumbai. Issued
by the Department of Posts, the stamp is in the denomination of Rs. 5.
Reliance After Dhirubhai
In November 2004, Mukesh Ambani in an interview, admitted to
having differences with his brother Anil over 'ownership issues.' He also said
that the differences "are in the private domain." He was of the opinion that this
will not have any bearing on the functioning of the company saying Reliance
is one of the strongest professionally-managed companies. Considering the
importance of Reliance Industries to the Indian Economy, this issue got an
extensive coverage in the media.
Kundapur Vaman Kamath, the Managing Director of ICICI Bank[15]
was seen in media, a close friend of the Ambani family who helped to settle
the issue. The brothers had entrusted their mother, Kokilaben Ambani, to
resolve the issue. On June 18, 2005, Kokilaben Ambani announced the
settlement through a press release. The Reliance empire was split between the
Ambani brothers, Mukesh Ambani getting RIL and IPCL & his younger
sibling Anil Ambani heading Reliance Capital, Reliance Energy and Reliance
Infocomm. The entity headed by Mukesh Ambani is referred to as the
Reliance Industries Limited whereas Anil's Group has been renamed Anil
Dhirubhai Ambani Group (ADAG)
The Reliance empire was split between the Ambani brothers, Mukesh
Ambani getting RIL and IPCL & his younger sibling Anil Ambani heading
Reliance Capital, Reliance Energy and Reliance Infocomm. The entity headed
by Mukesh Ambani is referred to as the Reliance Industries Limited whereas
Anil's Group has been renamed Anil Dhirubhai Ambani Group (ADAG)
Reliance – Anil Dhirubhai Ambani Group
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group
founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top
three private sector business houses in terms of net worth. The group has
business interests that range from telecommunications (Reliance
Communications Limited) to financial services (Reliance Capital Ltd) and the
generation and distribution of power (Reliance Energy Ltd).
Reliance – ADA Group’s flagship company, Reliance Communications, is
India's largest private sector information and communications company, with
over 30 million subscribers. It has established a pan-India, high-capacity,
integrated (wireless and wireline), convergent (voice, data and video) digital
network, to offer services spanning the entire infocomm value chain.
Other major group companies — Reliance Capital and Reliance Energy — are
widely acknowledged as the market leaders in their respective areas of
operation.
STRUCTURE OF RELIANCE ADA GROUP
Companies
1.Reliance Capital
Reliance Capital is one of India’s leading and fastest growing private sector fi-
nancial services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth.
The company has interests in asset management and mutual funds, life and
general insurance, private equity and proprietary investments, stock broking
and other activities in financial services.
2.Reliance Communications Limited
The flagship company of the Reliance – ADA Group, Reliance Communica-
tions Limited, is the realisation of our founder’s dream of bringing about a
digital revolution that will provide every Indian with affordable means of
communication and a ready access to information.
The company began operations in 1999 and has over 20 million subscribers to-
day. It offers a complete range of integrated telecom services. These include
mobile and fixed line telephony, broadband, national and international long
distance services, data services and a wide range of value added services and
applications aimed at enhancing the productivity of enterprises and individu-
als.
3.Reliance Energy Limited
Reliance Energy Limited, incorporated in 1929, is a fully integrated utility en-
gaged in the generation, transmission and distribution of electricity. It ranks
among India’s top listed private companies on all major financial parameters,
including assets, sales, profits and market capitalization.
It is India’s foremost private sector utility with aggregate estimated revenues
of Rs 9,500 crore (US$ 2.1 billion) and total assets of Rs 10,700 crore (US$
2.4 billion).
Reliance Energy Limited distributes more than 21 billion units of electricity to
over 25 million consumers in Mumbai, Delhi, Orissa and Goa, across an area
that spans 1,24,300 sq. kms. It generates 941 MW of electricity, through its
power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and
Goa.
The company is currently pursuing several gas, coal, wind and hydro-based
power generation projects in Maharashtra, Uttar Pradesh, Arunachal Pradesh
and Uttaranchal with aggregate capacity of over 12,500 MW. These projects
are at various stages of development.
Reliance Energy Limited is vigorously participating in emerging opportunities
in the areas of trading and transmission of power. It is also engaged in a port-
folio of services in the power sector in Engineering, Procurement and Con-
struction (EPC) through a network of regional offices in India.
4.Reliance Health
In a country where healthcare is fast becoming a booming industry, Reliance
Health is a focused healthcare services company enabling the provision of so-
lution to Indians, at affordable prices. The company aims at providing inte-
grated health services that will compete with the best in the world.It also plans
to venture into diversified fields like Insurance Administration, Health care
Delivery and Integrated Health, Health Informatics and Information Manage-
ment and Consumer Health.
Reliance Health aims at revolutionising healthcare in India by enabling a
healthcare environment that is both affordable and accessable through
partnerships with government and private businesses.
5.Reliance Media & Entertainment
As part of the Reliance - ADA Group, Reliance Entertainment is spearheading
the Group’s foray into the media and entertainment space. Reliance Entertain-
ment’s core focus is to build significant presence for Reliance in the Entertain-
ment eco-system: across content and distribution platforms.
The key content initiative are across Movies, Music, Sports, Gaming, Internet
& mobile portals, leading to direct opportunities in delivery across the emerg-
ing digital distribution platforms: digital cinema, IPTV, DTH and Mobile TV.
Reliance ADA Group acquired Adlabs Films Limited in 2005, one of the
largest entertainment companies in India, which has interests in film process-
ing, production, exhibition & digital cinema.
Reliance Entertainment has made an entry into the FM Radio business through
Adlabs Radio www.big927fm.com Having won 45 stations in the recent
bidding, BIG 92.7 FM is already India’s largest private FM radio network with
12 radio stations across the country as on 28th February 2007, with many
more to be launched in the coming months
Vision
To build a global enterprise for all our stakeholders,
A great future for our country,
To give millions of young Indians the power to shape their destiny,
The means to realize their full potential…
VALUES
1. Shareholder Interest
We value the trust of shareholders, and keep their interests paramount in every
business decision we make, every choice we exercise
2.People Care
We possess no greater asset than the quality of our human capital and no
greater priority than the retention, growth and well-being of our vast pool of
human talent
3. Consumer Focus
We rethink every business process, product and service from the standpoint of
the consumer – so as to exceed expectations at every touch point
4. Excellence in Execution
We believe in excellence of execution – in large, complex projects as much as
small everyday tasks. If something is worth doing, it is worth doing well.
5. Team Work
The whole is greater than the sum of its parts; in our rapidly-changing
knowledge economy, organizations can prosper only by mobilizing diverse
competencies, skill sets and expertise; by imbibing the spirit of “thinking
together” -- integration is the rule, escalation is an exception
6. Proactive Innovation
We nurture innovation by breaking silos, encouraging cross-fertilization of
ideas & flexibility of roles and functions. We create an environment of
accountability, ownership and problem-solving –based on participative work
ethic and leading-edge research
7. Leadership by Empowerment
We believe leadership in the new economy is about consensus building, about
giving up control; about enabling and empowering people down the line to
take decisions in their areas of operation and competence…
8.Social Responsibility
We believe that organizations, like individuals, depend on the support of the
community for their survival and sustenance, and must repay this generosity in
the best way they can
9. Respect for Competition
We respect competition – because there’s more than one way of doing things
right. We can learn as much from the success of others as from our own
failures.
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.
He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute
of Information and Communication Technology, Gandhi Nagar, Gujarat.
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 in-
novations in the Indian capital markets. He spearheaded the country’s first for-
ays into the overseas capital markets with international public offerings of
global depositary receipts, convertibles and bonds. Starting in 1991, he di-
rected 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 Commis-
sion
Board of Governors, Indian Institute of Management, Ahmedabad
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of
the Rajya Sabha, Upper House of India’s Parliament a position he chose to re-
sign 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 consecu-
tive 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 In-
dia Economic Forum (WIEF) in recognition of his contribution to the
establishment of Reliance as a global leader in many of its business ar-
eas, December 2001
Selected by Asiaweek magazine for its list of ‘Leaders of the Millen-
nium in Business and Finance’ and was introduced as the only ‘new
hero’ in Business and Finance from India, June 19
CORPORATE GOVERNANCE
Great corporations, like individuals, are known for their unwavering
commitment to ethical values and principles. At Reliance - ADA Group, we
remain steadfast in our resolve to uphold the highest standards of integrity,
transparency and governance.
For us, corporate governance is not just about adhering to the formal letter of
the law, but about embracing the substantive spirit that lies underneath; to
move beyond the statutory obligations.
The key aspects of our corporate governance practice are:
Monitoring of executive and director compensation
Providing autonomy to the Board
Implementing rigorous disclosure and transparency norms
Monitoring of executive and director compensation
Across each of the group companies, a Remuneration Committee assesses the
overall compensation structure and policies of the organization and makes
recommendations. These form the basis for formulating the company’s
executive remuneration framework.
The Remuneration Committee consists of non-executive directors, a majority
of whom are independent. The Chairman of the Committee is an Independent
Director. The Remuneration Committee works with full autonomy, and is free
of any managerial interference. The Committee is also empowered to call
upon professional advice, both from within and outside the company, in the
discharge of their duties.
Providing autonomy to the Board
The Board of Directors of each of the group companies consists of eminent
individuals with diverse experience and expertise. The respective Board acts
with autonomy and independence in exercising strategic supervision,
discharging its fiduciary responsibilities, and in ensuring that the management
observes the highest standards of ethics, transparency and disclosure.
The Board of Directors reviews all information details and transactions
relating to significant business decisions, including strategic and regulatory
matters. Every member of the Board, including non-executive directors, has
access to all relevant information about their respective companies.
The Board appoints a number of Committees to focus on well-defined areas of
responsibility, with a clear mandate to make time-bound recommendations,
and, where specified, use the authority vested in them by the Board to take
crucial decisions.
Implementing rigorous disclosure and transparency norms
Each of the Group companies adheres to all disclosure and transparency norms
relating to corporate governance. We are committed to public disclosure, in a
clear and timely manner, of our financial accounts, including both segment
and consolidated accounts, and the level and means of remuneration of our
directors and top executives. We also give out clear information on related-
party transactions, if any, that are undertaken within the group.
We strictly comply with all governance codes, listing agreements, other
applicable laws and regulations, and, not least, our self-avowed corporate
values and objectives.
Telecommunications in India
TELECOMMUNICATION IN
INDIA
With its high population and development potential is having one of the fastest
growing telecom networks in the world. India's public sector telecom company
BSNL is the 7th largest telecom company in world. [1]. Reliance, Bharti
Telecom, Tata Indicom, Hutch, MTNL, and BPL are other major operators in
India. However, rural India still lacks strong infrastructure.
India introduced telephony in 1882
The total number of telephones in the country crossed the 100 million mark in
April 2005 and was 202.74 million in February 2007. [1] This includes 156.31
million mobile phones. However, teledensity (telephones per 100 persons) in
the country was 18.31 per cent in March 2007 Introduction of the Telephone
In 1880, two telephone companies namely The Oriental Telephone Company
Ltd. and The Anglo-Indian Telephone Company Ltd. approached the
Government of India to establish telephone exchanges in India. The
permission was refused on the grounds that the establishment of telephones
was a Government monopoly and that the Government itself would undertake
the work. By 1881, the Government changed its earlier decision and licence
was granted to the Oriental Telephone Company Limited of England for
opening telephone exchanges at Kolkata, Mumbai, Chennai and Ahmedabad.
January 28, 1882, is a Red Letter Day in the history of telephone in India. On
this day Major E. Baring, Member of the Governor General of India's Council
declared open the Telephone Exchange in Kolkata, Chennai and Mumbai. The
exchange at Kolkata named "Central Exchange" was opened at third floor of
the building at 7, Council House Street. The Central Telephone Exchange had
93 number of subscribers. Bombay also witnessed the opening of Telephone
Exchange in 1882 itself.
India, emerging as a major player
In 1975, the Department of Telecom (DoT) was separated from P&T. DoT
was responsible for telecom services in entire country until 1985 when
Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run
the telecom services of Delhi and Mumbai. In 1990s the telecom sector was
opened up by the Government for private investment as a part of
Liberalisation-Privatization-Globalization policy. Therefore, it became
necessary to separate the Government's policy wing from its operations wing.
The Government of India corporatised the operations wing of DoT on October
01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many
private operators, such as Reliance India Mobile, Tata Telecom, Hutch, BPL,
Bharti, Idea etc., successfully entered the high potential Indian telecom market
Next generation networks
In the Next Generation Networks, multiple access networks can connect
customers to a core network based on IP technology. These access networks
include fibre optics or coaxial cable networks connected to fixed locations or
customers connected through wi-fi as well as to 3G networks connected to
mobile users. As a result, in the future, it would be impossible to identify
whether the next generation network is a fixed or mobile network and the
broadband wirelessaccess would be used both for fixed and mobile services. It
would then be futile to differentiate between fixed and mobile networks – both
fixed and mobile users will access services through a single core network.
Indian telecom networks are not so intensive as developed country’s telecom
networks and India's teledensity is low only in rural areas. 670,000 route
kilometers of optical fibres has been laid in India by the major operators, even
in remote areas and the process continues. BSNL alone, has laid optical fibre
to 30,000 Telephone Exchanges out of their 35,000 Exchanges. Keeping in
mind the viability of providing services in rural areas, an attractive solution
appears to be one which offers multiple service facility at low costs. A rural
network based on the extensive optical fibre network, using Internet Protocol
and offering a variety of services and the availability of open platforms for
service development, viz. the Next Generation Network, appears to be an
attractive proposition. Fibre network can be easily converted to Next
Generation network and then used for delivering multiple services at cheap
cost.
Service providers in India
Only the PSU's BSNL and MTNL are allowed to provide Basic Phone Service
through copper wires in India. MTNL is operating in Delhi and Mumbai only
and all other parts are covered by BSNL.
Cellular mobile service licencees
1. BSNL
2. MTNL
3. Bharti Hexacom Ltd
4. Idea Cellular Ltd
5. Reliance Telecom Ltd
6. Hutchison Essar Ltd
7. Aircel Ltd
8. BPL Mobile Communications Ltd
9. Escorts Telecommunications Ltd
10. Fascel Ltd
11. BTA Cellcom Ltd
Internet service providers
1. Asianet Satellite Communications Ltd.
2. BSNL
3. Bharti
4. CMC Ltd
5. Comsat Max Ltd
6. Cyquator Technologies Ltd.
7. Data Access India Ltd.
8. Data Infosys Ltd.
9. Dishnet Wireless Ltd.
10. Ernet India
11. Estel Communications Pvt. Ltd.
12. Gateway Systems (India) Pvt. Ltd
13. GTL Limited
14. Guj Info Petro Ltd. (GIPL)
15. Gujarat Narmada Valley Fertilizers Co. Ltd.(GNFC)
16. Hathway Cable & Datacom Pvt. Ltd.
17. HCL Comnet Systems & Services Ltd.
18. HCL Infinet Ltd.
19. Hughes Escorts Communications Ltd.
20. Iqara Telecoms India Pvt. Ltd. (BG Broadband)
21. i2i Enterprise Ltd.
22. In2cable.com(I) Ltd.
23. L&T Finance Ltd. (L&T Netcom Ltd.)
24. Manipal Ecommerce Ltd. (Manipal Control Data Electronic Commerce
Ltd.)
25. n-Logue Communications Pvt. Ltd.
26. Nelco Ltd.
27. Primenet Global Ltd.
28. Primus Telecommunications India Ltd.
29. Pacific Internet (I) Pvt. Ltd.
30. Reach Network (I) Pvt. Ltd. (Teleweb India Pvt. Ltd.)
31. Reliance Communications Infrastructure Ltd.
32. Reliance Engineering Associates Pvt. Ltd. (Broadband Solutions)
33. RPG Infotech Ltd. (Sprint RPG India)
34. Shyam Internet Services Pvt. Ltd.
35. Sify Ltd.
36. Spectra Net Ltd.
37. Swiftmail Communications Ltd
38. Tulip IT Services Ltd
39. Trak Online Net India (P) Ltd
40. (Net4India) Software Technology Park of India (STPI)
41. Siti Cable Network Ltd.(Zee Interactive Multimedia Ltd.)
42. Tata Indicom
43. VSNL
TRAI
TRAI: Telecommunications Regulatory Authority of India
The Telecommunications Regulatory Authority of India or TRAI
(established 1997) is the independent regulator established by the Government
of India to regulate the telecommunications business in India.
Notwithstanding anything contained in the Indian Telegraph Act,1885,the
functions of the Authority shall be to-
(a)make recommendations, either suo motu or on a request from the
licensor, on the following matters, namely:
o (i) need and timing for introduction of new service provider;
o (ii) terms and conditions of license to a service provider;
o (iii) revocation of license for non-compliance of terms and
conditions of license:
o (iv) measures to facilitate competition and promote efficiency
in the operation of telecommunication services so as to
facilitate growth in such services.
o (v) technological improvements in the services provided by the
service providers.
o (vi) type of equipment to be used by the service providers after
inspection of equipment used in the network.
o (vii) measures for the development of telecommunication
technology and any other matter relatable to telecommunication
industry in general;
o (viii) efficient management of available spectrum;
(b) discharge the following functions, namely:-
o (i) ensure compliance of terms and conditions of license;
o (ii) notwithstanding anything contained in the terms and
conditions of the license granted before the commencement of
the Telecom Regulatory Authority (Amendment)
Ordinance,2000, fix the terms and conditions of inter-
connectivity between the service providers;
o (iii) ensure technical compatibility and effective inter-
connection between different service providers.
o (iv) regulate arrangement amongst service providers of sharing
their revenue derived from providing telecommunication
services;
o (v) lay down the standards of quality of service to be provided
by the service providers and ensure the quality of service and
conduct the periodical survey of such service provided by the
service providers so as to protect interest of the consumers of
telecommunication services;
o (vi) lay down and ensure the time period for providing local
and long distance circuits of telecommunication between
different service providers;
o (vii) maintain register of interconnect agreements and of all
such other matters as may be provided in the regulations;
o (viii) keep register maintained under clause (viii) open for
inspection to any member of public on payment of such fee and
compliance of such other requirement as may be provided in
the regulations;
o (ix) ensure effective compliance of universal service
obligations:
(c) levy fees and other charges at such rates and in respect of such
services as may be determined by regulations.
(d) perform such other functions including such administrative and financial
functions as may be entrusted to it by the Central Government or as may be
necessary to carry out the provisions of this Act:
Provided that the recommendations of the Authority specified in the clause (a)
of this sub-section shall not be binding upon the Central Government:
Provided further that the Central Government shall seek the recommendations
of the Authority in respect of matters specified in sub-clauses (i) and (ii) of
clause (a) of this sub-section in respect of new licence to be issued to a service
provider and the Authority shall forward its recommendations within a period
of sixty days from the date on which that Government sought the
recommendations:
Provided also that the Authority may request the Central Government to
furnish such information or documents as may be necessary for the purpose of
making recommendations under sub-clauses (i) and (ii) of clause (a) of this
sub-section and that Government shall supply such information within a
period of seven days from receipt of such request:
Provided also that the Central Government may issue a licence to a service
provider if no recommendations are received from the Authority within the
period of specified in the second provision or within such period as may be
mutually agreed upon between the Central Government and the Authority.
Provided also that if the Central Government having considered that
recommendation of the Authority comes to a prima facie conclusion that such
recommendation cannot be accepted or needs modifications, it shall, refer the
recommendations back to the Authority for its reconsideration, and the
Authority may within fifteen days from the date of receipt of such reference,
forward to the Central Government its recommendation after considering the
reference made by the Government. After receipt of further recommendation,
if any, the Central Government shall take a final decision.
Overview
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
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 en-
hance 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.”
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 35 million customers.
Our business encompasses a complete range of telecom services covering mo-
bile 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. Our constant endeavour is to achieve
customer delight by enhancing the productivity of the enterprises and individ-
uals we 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 digi-
tal revolution in India. Today, we can proudly claim that we were instrumental
in harnessing the true power of information and communication, by bestowing
it in the hands of the common man at affordable rates.
We endeavour to further extend our efforts beyond the traditional value chain
by developing and deploying complete telecom solutions for the entire
spectrum of society.
PRODUCTS
Broadband Internet Access
Network of networks
Today, an executive sitting at home can prepare a strategic plan for a company
based in another country, on a server situated in a third country, that is
remotely maintained by IT specialists. None of this could have been done
cost-effectively, were it not for broadband Internet — the medium of the
future — for work, communication, entertainment and knowledge.
In a world of increasing competitiveness and globalisation, organisations and
individuals are increasingly finding that they cannot function without the
Internet and Internet-based applications. Broadband Internet use in the United
States has zoomed from 6 per cent in 2000 to around 40 per cent in 2005, as a
result of new ways of working from home, collaboration and information
sharing in most industries.
India, at the very centre of the outsourcing revolution, is also poised on the
brink of a huge broadband boom. In India, Reliance Communications offers
the best-in-class broadband Internet solutions, based on its robust, cutting-
edge global network.
Engineered for Uptime :
Reliance broadband Internet service is based on dual ring fibre architecture
with FTTB (Fibre-to-the-building), giving exceptional uptime and access
speeds. Combined with a wholly-owned 10 Gbps data backbone that is
monitored 24x7x365, this gives the customer an extremely reliable service,
backed by industry leading service level agreements (SLAs).
Growth Unlimited :
Our service is highly scalable, allowing bandwidths from 64 kbps to 100 Mbps
without making any change in the last mile copper. For enterprise customers,
we also offer the option of Metro Ethernet as the last mile port, substantially
decreasing the capex cost of high bandwidth circuits.
An integrated telecom service provider :
Reliance is India's most integrated Telecom service provider. It owns the
entire end-to-end architecture, including access systems, the national fibre-
optic backbone, the international cable systems, Internet gateways, and nearly
40,000 sq ft of data centre space.
We provide a single, unified interface that brings you the complete spectrum
of e–solutions, including broadband Internet bandwidth, domain registration,
mailing solutions and data centre services .
Internet for Small & Medium Business
Small outlay, big returns
Just because your company is a small or medium enterprise doesn't mean you
can't think big. Be ahead of the times. Stay a step ahead the competition. The
Reliance broadband Internet access services for SMEs can help you cut costs
and boost your bottomline, all at the same time.
Reliance Broadband Internet Access provides carrier class Internet bandwidth
through a dedicated connection over a nationwide fibre-optic IP backbone. Its
‘fibre to building’ approach and the huge international bandwidth capacity
operated by its group company, Flag Telecom, delivers unmatched service
quality and high speeds.
The advantages of our Broadnet Internet solution for SMEs, coupled with
bonus bandwidth, help you to deliver high performance to your Internet
applications. It can be a critical business enabler for the SME customer.
Reliance Advantages:
The same connection can be used for many PCs.
The SMTP relay option allows you to continue using your existing e-mail IDs.
Bonus bandwidth. High speeds up to 4 Mbps. The Optic-fibre-Ethernet advantage:
Optic-fibre to your building cluster.
Ring-protected optic-fibre ensures high uptime.
Ethernet-based connectivity delivered over CAT 5 cable. Scalable to support futuristic bandwidth services.
International Private Leased Circuit
Your virtual globetrotter
A Reliance international private line is a dedicated, “always on”, leased point-
to-point digital circuit for the bulk transport of data, voice and video. It allows
simultaneous two-way transmissions of digital signals at speeds ranging from
64 kbps to 155 Mbps.
Product variants
Half circuit : In partnership with Reliance Communications Inc.
Full circuit : End-to-end connectivity in partnership with all major
international carriers. A full circuit, it has one point in India and other point in
a foreign country.
FLAG: The international carrier
FLAG Telecom, short for “Fibre Link Across the Globe”, is a Reliance Group
company. It owns and manages an extensive optic fibre network that spans
four continents and connects key international business markets, through a
number of subsidiaries.
Flag subsidiaries
FLAG Europe-Asia : The w orld's longest privately funded under-sea fibre-
optic cable system, it stretches more than 28,000 km — from the UK to Japan
— and has landing sites in 13 countries.
FLAG Atlantic-1 : The world's first multi-terabit trans-oceanic dual cable
system. It provides a fully protected city-to-city service between London, Paris
and New York.
FLAG North Asian loop : Handles Internet traffic within Asia and offers city-
to-city connectivity between Hong Kong, Seoul, Tokyo and Taipei.
FLAG Europe : A terrestrial network, it links major European business
centres and provides intercontinental SDH capacity, as well as 10 Gbps optical
wavelength connectivity
Internet for Enterprise
Built for business
Travel by ‘business class’ in cyberspace. Stay a step ahead of the competition.
Save money while enhancing productivity, by leveraging the Reliance
enterprise broadband Internet access services.
Reliance Broadband Internet Access provides carrier class Internet bandwidth
through a dedicated connection over a nationwide fibre-optic IP backbone. Its
‘fibre to building’ approach and the international capacity operated by its
group company Flag Telecom means that Reliance can deliver unmatched
service quality levels to the enterprise customer.
Key features:
A wide choice of bandwidths, from 64 Kbps to 100 Mbps.
End-to-end connectivity, including a Reliance-owned-and-operated last
mile network.
International connectivity through two different routes — trans-At-
lantic and trans-Pacific.
Access technology independent.
Choice of interface : G.703, V.35 or Ethernet.
SLA-based service.
Bundled IP addresses, SMTP mail relay and DNS service.
Extensive coverage across all the major cities in India.
Leased Line
The most efficient and cost-effective way to connect two offices is a
leased line; it provides a clear and continuous channel between two
end points. Little wonder that most large enterprises use leased lines
for connectivity. Reliance's 'end-to-end leased line' is delivered
through its state-of-the-art optic fibre network with its unique self-
healing survivable architecture.
With its 'fibre-to-building' approach, Reliance has reduced the last mile
to just a few metres of in-building copper cabling. Being mostly optic
fibre-based, our network can offer reliable and scalable services with a
high degree of availability to our customers .
VPN
A network of one's own
Reliance virtual private network (VPN) is a private communications
network that can meet all the connectivity and remote access needs of
an organisation. Designed specially for the enterprise customer, it
offers a totally private, scalable and secure network. VPN is the most
effective way to achieve convergence of voice, video and data on a
managed network.
COMPETITORS
Bharti Airtel Limited
Type Public, Listed on BSEFounded 1985Headquarters New Delhi, IndiaKey people Sunil MittalIndustry Telecom
ProductsMobile and Fixed-Line Telecommunication operator
Revenue USD 3.66 billionWebsite http://www.Bharti.com
The company is a part of Bharti Enterprises, and is India's leading provider of
telecommunications services. The businesses at Bharti Airtel have been
structured into three individual strategic business units (SBU’s) - mobile
services, broadband & telephone services (B&T) & enterprise services. The
mobile services group provides GSM mobile services across India in 23
telecom circles, while the B&T business group provides broadband &
telephone services in 90 cities. The Enterprise services group has two sub-
units - carriers (long distance services) and services to corporates. All these
services are provided under the Airtel brand.
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
Bharti Group, has a diverse business portfolio and has created global brands in
the telecommunication sector. Bharti has recently forayed into retail business
as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry
business. It has successfully launched an international venture with EL
Rothschild Group to export fresh agri products exclusively to markets in
Europe and USA and has launched Bharti AXA Life Insurance Company Ltd
under a joint venture with AXA, world leader in financial protection and
wealth management.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and
the first private telecom services provider with a footprint in all the 23 telecom
circles. Bharti Airtel since its inception has been at the forefront of technology
and has steered the course of the telecom sector in the country with its world
class products and services. The businesses at Bharti Airtel have been
structured into three individual strategic business units (SBU’s) - mobile
services, broadband & telephone services (B&T) & enterprise services. The
mobile business provides mobile & fixed wireless services using GSM
technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities. The Enterprise services provide
end-to-end telecom solutions to corporate customers and national &
international long distance services to carriers. All these services are provided
under the Airtel brand.
Airtel
Airtel is a brand of telecommunication services in India operated by Bharti
Airtel.
Airtel is the largest cellular service provider in India in terms of number of
subscribers. Bharti Airtel owns the Airtel brand and provides the following
services under the brand name Airtel: Mobile Services (using GSM
Technology), Broadband & Telephone Services (Fixed line and Internet
Connectivity), Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporates).
Leading international telecommunication companies such as Vodafone and
SingTel hold partial stakes in Bharti Airtel.
In April 2006 Bharti Global Limited was awarded a telecommunications
licence in Jersey in the Channel Islands by the local telecommunications
regulator the JCRA [2]. In September 2006 the Office of Utility Regulation in
Guernsey awarded Guernsey Airtel with a mobile telecommunications licence.
In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a
relationship with Vodafone for island mobile subscribers.
Key features of Bharti airtel
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India
and is the largest mobile service provider in the country, based on the number
of customers.
The group offers high speed broadband internet with a best in class network.
With Landline services in 94 cities we help you stay in touch with your friends
& family and the world.
The group focuses on delivering telecommunications services as an integrated
offering including mobile, broadband & telephone, national and international
long distance and data connectivity services to corporate, small and medium
scale enterprises.
The Company compliments its mobile and broadband & telephone services
with national and international long distance services. It has over 35,016 route
kilometers of optic fibre on its national long distance network. For
international connectivity to east, it has a submarine cable landing station at.
For international connectivity to the west, the Company is a member of the
South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4)
consortium along with 15 other global telecom operators
Forbes Global 2000 Ranking - 2005
The Forbes Global 2000 list for the year 2005 ranked Bharti at 1336
Awards and recognition
2006
Wireless service provider of the year 2005 at the Frost and Sulivan
Asia-Pacific ICT awards [3]
Competitive service provider of the year 2005 at the Frost and Sulivan
Asia-Pacific ICT awards
Mahanagar Telephone Nigam Limited
Mahanagar Telephone Nigam Limited
Type Public (NSE, BSE, NYSE: MTE)Founded 1986Headquarters New Delhi, India
Key peopleR.S.P. Sinha (CMD); Anita Soni (CFO);A.K.Sinha (ED-NEW Delhi);M.S.Rana (ED-Mumbai)
Industry TelecommunicationWebsite http://www.mtnl.net.in
The Mahanagar Telephone Nigam Limited (NYSE: MTE) is an Indian
Government owned telephone service provider in the cities of Mumbai, Thane,
New Delhi and Navi Mumbai in India. The company was a monopoly till 2000
when telecom sector was thrown open to other service providers.
Products
MTNL provides fixed line telephones, cellular connection of both GSM —
Dolphin(Postpaid) and Trump (prepaid) and WLL (CDMA) — Garuda-FW
And Garuda-Mobile and internet services through dialup and DSL —
Broadband internet TriBand. MTNL has also started Games on demand,
video on demand and IPTV services in india through its Broadband Internet
service called Triband. Phone numbers belonging to MTNL start with the
prefix 2 infixed line telephonesand WLL & in GSM Mobile servises its start
from 9869/9969/9868/9968. MTNL also provides other services such as VPN
and leased lines through BSNL and VSNL.
Recent Happenings
In July,2006 Mahanagar Telephone Nigam Ltd. (MTNL) has launched
its new Garuda mobile service with a range of attractive features from
its state-of-the-art CDMA 2000 1x network.
In Dec.2006 MTNL has deployed state of the art MPLS infrastructure
to provide the latest and varied IP based value added services like IP
VPN services to its customers. MPLS is an acronym for "Multi
Protocol Label Switching”. MPLS is fast emerging as best approach
for simplified enterprise connectivity. It will be possible for MTNL to
offer assured growth to its customers without having to make
significant investments because of inherent feature MPLS offers to
build secure Virtual Private Network and its further scalability. MTNL
would now be able to provide Bandwidth on demand, Video
Conferencing, IPTV-though only in Mumbai&Navi Mumbai, Voice
over IP (VoIP) and a host of other value added services. MPLS based
VPNs reduce customer networking complexity as customers need to
only one connection instead of individual point-to-point circuits
between each office using pair of Leased Lines and thereby cutting
networking costs and technical work force.
Significant advantages of MPLS are enhanced reliability, security, flexibility
and scalability. MPLS based solution supports SLA with customer and
provide end to end QoS to ensure proper handling of traffic.
Tata Group profile
The Tata Group comprises 96 operating companies in seven business sectors:
information systems and communications; engineering; materials; services;
energy; consumer products; and chemicals. The Group was founded by Jam-
setji Tata in the mid 19th century, a period when India had just set out on the
road to gaining independence from British rule. Consequently, Jamsetji Tata
and those who followed him aligned business opportunities with the objective
of nation building. This approach remains enshrined in the Group's ethos to
this day.
The Tata Group is one of India's largest and most respected business conglom-
erates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the
equivalent of about 2.8 per cent of the country's GDP, and a market capitalisa-
tion of $59.1 billion as on June 21, 2007. Tata companies together employ
some 2,46,000 people. The Group's 28 publicly listed enterprises — among
them stand out names such as Tata Steel, Tata Consultancy Services, Tata Mo-
tors and Tata Tea — have a combined market capitalisation that is the highest
among Indian business houses in the private sector, and a shareholder base of
over 2 million. The Tata Group has operations in more than 54 countries
across six continents, and its companies export products and services to 120
nations.
The Tata family of companies shares a set of five core values: integrity, under-
standing, excellence, unity and responsibility. These values, which have been
part of the Group's beliefs and convictions from its earliest days, continue to
guide and drive the business decisions of Tata companies. The Group and its
enterprises have been steadfast and distinctive in their adherence to business
ethics and their commitment to corporate social responsibility. This is a legacy
that has earned the Group the trust of many millions of stakeholders in a mea-
sure few business houses anywhere in the world can match.
Videsh Sanchar Nigam Limited (VSNL
Profile
VSNL, India's leading international telecommunications service provider, was
incorporated on March 19, 1986, to take over the activities of the erstwhile
Overseas Communication Services (OCS) with effect from April 1, 1986.
Backed by over 25 years of overseas communications experience, the com-
pany today operates a network of 32 earth stations, 12 international voice gate-
ways, six operational submarine cable systems and 22 internet ‘points-of-pres-
ence’ to provide a range of basic and value-added voice and data services to
corporate and retail customers in India.
Since the privatisation of the company in February 2002, the Indian govern-
ment owns approximately 26 per cent of VSNL’s equity and the Tata Group
about 45 per cent. The balance is held between various overseas equity hold-
ers, including ADR holders, Indian institutions and the Indian public. VSNL’s
shares are listed in the bourses at four metros and the National Stock Ex-
change, and its ADRs at the New York Stock Exchange. The revenues of the
company for the financial year ended March 2002 were about Rs 71 billion
(US$ 1.4 billion). VSNL has a workforce of about 2,900 employees.
The company has been the premier provider of international voice and data
services, carrying over three billion minutes of traffic in 2001. It has bilateral
relations with international traffic carriers in over 75 countries. VSNL is also
the market leader in providing international IPLC and frame relay services in
India.
VSNL was the first Internet service provider in India and today provides ser-
vices to over 600,000 customers in the country. It offers a range of hosting and
co-location services out of its data centres in Mumbai, Delhi, Chennai and
Bangalore. It also offers IP-VPN services in over 50 locations in India and is
in the process of tying up with partners for providing international VPN ser-
vices as well. Additionally, VSNL has started offering national long-distance
services in select towns in India.
Areas of business
As India’s gateway to the world, VSNL is the nodal agency for international
communications from the country. It provides flexible and global connectivity
through satellite and submarine cable links. It is also in the process of
expanding its fibre optic network in India for its national long distance
services. Its package of services include:
International long distance
National long distance
Data communication
Internet
Managed data network services
Data centre services
TV uplinking
INMARSAT services
Video conferencing
Locations
VSNL has international gateways located in Mumbai, New Delhi, Kolkata,
Chennai, Ernakulam, Jallandhar, Gandhinagar and Kanpur. It operates satellite
earth stations at Arvi (near Pune), Dehradun, Mumbai, New Delhi, Kolkata,
Chennai and Bangalore. Additionally, international submarine cables
terminate at VSNL’s cable stations in Chennai, Ernakulam and Mumbai.
Research methodology
SAMPLE SIZE : 70
SAMPLE AREA: AS PROVIDED BY THE COMPANY
INFORMATION COLLECTION
PRIMARY MODE: QUESTIONNAIRE AND INTERVIEWS.
SECONDARY MODE: PROJECT GUIDE, CHANNEL PARTNERS,
NEWSPAPERS, INTERNET, MAGZINES ETC
INTERPRETATION TOOLS: BAR GRAPHS, PIE CHARTS, COLUMN
CHARTS.
STUDY BASED ON: INDUSTRY SEGMENTATION, TURNOVER
SEGMENTATION, AREA SEGMENTATION
D IF F E R E N T IN D U S T R IE Sm a n u f a c t u r in g
1 0 %
in f o r t io n t e c h k n o w lo d g y
1 9 %
s o f t w a r e1 0 %
f in a n c e3 %a d v e r t is in g
1 0 %
lo g is t ic s9 %
p e t r o le u m4 %
o t h e r s3 5 % m a n u fa c tu r i n g
i n fo r t i o n te c h k n o w l o d g y
s o f tw a r e
f i n a n c e
a d v e r t i s i n g
l o g i s t i c s
p e t r o l e u m
o th e r s
In the above graph, it is clearly depicted that most of the samples taken
represent the IT sector of the market. Also other industries have a good share
in the sample. Some minor industries are clubbed under the common name
OTHERS..
D I F F E R E N T L O C A T I O N S
g u r g a o n1 3 %
m o h a n c o -o p e r a t i v e s o c i e ty
7 %
n e h r u p l a c e6 3 %
o k h l a1 7 %
g u r g a o n
m o h a n c o - o p e r a t i v e s o c i e ty
n e h r u p l a c e
o k h l a
In the above pie chart, it shows that most of the industries visited are in Nehru
place and least number of industries visited in mohan cooperative society.
N U M B E R O F V O I C E L I N E S
1 - 5 l i n e s5 3 %
5 - 1 0 l i n e s2 1 %
1 0 - 2 0 l i n e s1 6 %
a b o v e 2 0 l i n e s1 0 %
1 - 5 l in e s
5 - 1 0 l in e s
1 0 - 2 0 l in e s
a b o v e 2 0 l in e s
In the above pie chart it depicts that most of the organizations have 1 to 5
voice lines and only few organizations have more than 20 voice lines.
R E V E N U E O F T H E O R G A N IS A T IO N S
1 - 1 0 c r .1 3 %
1 0 - 5 0 c r .1 3 %
a b o v e 5 0 c r .2 7 %
b e l o w 1 c r .4 7 %
b e l o w 1 c r .
1 - 1 0 c r .
1 0 - 5 0 c r .
a b o ve 5 0 c r .
In the above pie chart, it depicts that most of the organizations in the sample
have their revenues below one cr and numbere of organizations having
revenue between 10 to 50 cr is least.
N U M B E R O F C O M P A N IE S U S IN G V O IC E & D A T A S E R V IC E
01 02 03 04 05 06 07 08 0
d a ta v o i c e n u m b e r o fc o m p a n i e s
S e r i e s 1
Among all the companies visited, all of them are using both data and voice
service.
ANALYSIS
V O IC E S E R V IC E P R O V ID E R
a i r te l5 0 %
r e li a n c e1 0 %
ta ta i n d i c o m1 1 %
m tn l2 9 %
a i r te l
r e li a n c e
ta ta i n d i c o m
m tn l
On studying the data obtained in the form of above pie chart it can be
concluded that in voice department, airtel has maximum share and reliance has
least share in the overall voice market.
V O IC E E X P E N D IT U R E
.5 - 1 %6 8 %
1 - 2 %1 6 %
2 - 3 %1 6 %
.5 - 1 %
1 - 2 %
2 - 3 %
As shown in the pie chart, 68% of total sample size has a minimal spending of
about 0.5-1% on the voice services of their total turnover while only 32% of
them spending above 1%.
D IF F E R E N T T Y P E S O F D A T A
o n e d a ta5 3 %tw o d a ta
3 7 %
th r e e d a ta1 0 %
o n e d a ta
tw o d a ta
th r e e d a ta
In the above pie chart depicts that majority of the sample size is using only
one type of data service.
D A T A S E R V IC E P R O V ID E R S
a i r te l5 1 %
r e li a n c e1 1 %
ta ta i n d i c o m7 %
m tn l2 0 %
o th e r s1 1 %
a i r te l
r e li a n c e
ta ta i n d i c o m
m tn l
o th e r s
Above pie chart depicts that most of the market share in data service is
grabbed by airtel and tata indicom has the least share among the competitors
and reliance is struggling with 11%.
D A T A E X P E N D IT U R E
.5 - 1 %8 5 %
1 - 2 %4 %
2 - 3 %1 1 %
.5 - 1 %
1 - 2 %
2 - 3 %
Above pie chart depicts that most of the sample size spending on data is less
than 1% .
D A T A S P E C I F I C A T I O N
b r o a d b a n d6 4 %d ia
3 %
le a s e d l in e s2 0 %
w a n8 %
v p n5 %
b r o a d b a n dd iale a s e d l in e sw a nv p n
Above pie chart depicts that most of the sample size is using broadband as a
solution for their data service needs and leased line is also used by a sufficient
number of organizations.
S P E E D S P E C IF IC A T IO N
1 2 8 k b s5 %
2 5 6 k b p s4 5 %
5 1 2 k b p s1 6 %
1 m b p s1 7 %
m o r e th a n 1 m b p s
1 7 %1 2 8 k b s
2 5 6 k b p s
5 1 2 k b p s
1 m b p s
m o r e th a n 1 m b p s
As per above pie chart it is clear that most of the organizations are using data
services at a speed of 256 kbps due to its value in terms of money and quality.
Higher speeds as 512 or 1 mbps are used by only those organizations which
have specific requirements as heavy data usage.
B A C K U P S E R V I C E
y e s4 6 %n o
5 4 %
y e s
n o
Above pie chart depicts that in the total sample size , 46% have backup
services which means they are using more than one type of data service.
P A R A M E T E R S
p r i c e2 9 %
s e r v i c e2 6 %
s e c u r i t y1 5 %
b r e a k d o w n1 1 %
o th e r s1 9 %
p r i c e
s e r v i c e
s e c u r i t y
b r e a k d o w n
o th e r s
Above pie chart depicts that in terms of parameters most of the organizations
have priority toward price and service as their most important parameters.
T O T A L IT E X P E N D IT U R E
1 - 5 %8 0 %
5 - 1 0 %1 0 %
a b o v e 1 0 %1 0 %
1 - 5 %
5 - 1 0 %
a b o v e 1 0 %
It is clear from the above pie chart that most of the organizations spend money
on the data and voice services that is total it expenditure, lies between 1 to 5%.
FINDINGS
T U R N O V E R V S V O I C E B R A N D
0 2 0 4 0 6 0 8 0
b e l o w 1 c r .
1 - 1 0 c r .
1 0 - 5 0 c r .
a b o v e 5 0 c r .
N U M B E R O FC O M P A N IE S
m t n l
t a t a in d ic o m
r e l ia n c e
a ir t e l
In the above bar graph, it is clear that all the organization whose turnover is
either below 1 cr. Or above 1 cr. They are using sevices of airtel in terms of
voice,but mtnl is giving good fight to telecom giant airtel by capturing good
number of market share in voice which is clearly depicted by above bar
graph.Those organizations whose turnover is above 50 cr. Are not very much
brand specific and they are using voice services of all the companies in
competitive ratios but airtel again have largest share in the organizations
whose turnover is above 50cr.
T U R N O V E R V S D A T A B R A N D
0 2 0 4 0 6 0 8 0
b e l o w 1 c r .
1 - 1 0 c r .
1 0 - 5 0 C R .
a b o v e 5 0 c r .
N U M B E R O FC O M P A N IE S
o t h e r s
m t n l
t a t a in d ic o m
r e l ia n c e
a i r t e l
Above bar graph depicts that all the organisations irrespective of there
turnover they preffered airtel for there data services.But MTNL is a big
competeitor of airtel in terms of preference of organizations towards data
brand as it is depicted in the above graph that after airtel, mtnl is the one who
has grabbed maximum number of shares.as turnover of the organizations
increasing the share of reliance and tata indicom is also increasing but it
negligible as compare to there competitor airtel and mtnl.
T U R N O V E R V S D A T A S P E C I F I C A T I O N
0 2 0 4 0 6 0 8 0
b e lo w 1 c r .
1 - 1 0 c r .
1 0 - 5 0 c r .
A B O V E 5 0 C R .
N U M B E R O FC O M P A N IE S
v p n
w a n
le a s e d l in e
d ia
b r o a d b a n d
In the above graph, it is clear that organizations having turnover below 1cr.
Like to use broadband as a main source of data because there data
requirements are not very intensive.but as the turnover of the organizations
increasing above 1cr.there preferences shifted towards other secured modes of
data services like leased lines,wan,vpn.and organizations who’s turnover is
above 50cr. Like to use more secured data because of the importance of data
to them.
A R E A V S V O IC E B R A N D
0 2 0 4 0 6 0 8 0
g u r g a o n
m o h a n c o -o p e r a t iv e s o c ie t y
n e h r u p la c e
o k h la
N U M B E R O FC O M P A N IE S
m tn l
ta ta i n d i c o m
r e li a n c e
a i r te l
It is clear from the above graph that airtel has maximum shares than there
competitors in all the area mentioned above.mtnl has also shown good
existence in all the areas and giving tough fight to airtel.tata indicom is
streuggling in the above mentioned areas and even tata indicom is not
available in okhla which is one of the big industrial area in delhi.the same
thing is with reliance,it is also struggling in all the above mentioned areas in
graph and not available in mohan co-operative society which is a good
emerging industrial area in delhi.
A R E A V S D A T A B R A N D
0 2 0 4 0 6 0 8 0
g u r g a o n
m o h a n c o -o p e r a t iv e
s o c ie t y
n e h r u p la c e
o k h la
N U M B E R O FC O M P A N IE S
o th e r s
M T N L
T A T A IN D IC O M
r e li n c e
a i r te l
The scenario in the above graph is little bit different from previous graph,airtel
is again emerged out as market winner . mtnl is also struggling in all above
mentioned areas in the graph except Nehru place where it is giving good fight
to airtel.tata indicom is nearly able to make there existence in all the areas but
there market shares in data services are almost negligible. Reliance is also
confronting the same situation as tata indicom.
IN D U S T R Y V S V O IC E B R A N D
0 2 0 4 0 6 0 8 0
m a n u f a c t u r in g
c o n s t r u c t io n
IT
lo g is t ic s
f in a n c e
a d v e r t is in g
O T H E R S
N U M B E R O F C O M P A N IE S
m t n l
t a t a in d ic o m
r e l ia n c e
a i r t e l
Above graph depicts that airtel is again a clear winner in voice market and
airtel is the first preference of any type of industry. mtnl again giving very
tough competition to airtel in voice market also and there shares in all tupe of
industries is fairly good but there shares in industries particularly in it and
others is fantastic and giving threats to airtel to become market leader in these
industries. The situation of tata indicom and reliance is again same in voice
market also. there market shares in voice is very low and they are struggling to
grab satisfactory shares in voice market.the preference of above mentioned
industries for voice solution is towards airtel and mtnl. reliance and tata
indicom both are struggling to attract there attention towards them.
IN D U S T R Y V S D A T A B R A N D
0 2 0 4 0 6 0 8 0
a d ve r t i s i n g
c o n s t r u c t i o n s
fi n a n c e
IT
l o g i s t i c s
m a n u fa c t u r i n g
o t h e r s
N U M B E R O F C O M P A N IE S
o th e r s
m tn l
ta ta i n d i c o m
r e li a n c e
a i r te l
This graph depicts something different from previous graph. no doubt airtel is
the market winner in data market in all type of above mentioned industries.
Mtnl is struggling in data market. They have there good shares only in it and
others industries and struggling in all other industries to grab there shares.
Reliance and tata indicom are almost out of competition in data market .they
don’t have enough share in data market to give competition to other market
p[layers.
IN D U S T R Y V S D A T A S P E C IF IC A T IO N
0 2 0 4 0 6 0 8 0
A D V E R T IS IN G
C O N S T R U C T IO N
F IN A N C E
IT
L O G IS T IC S
M A N U F A C T U R IN G
O T H E R S
N U M B E R O FC O M P A N IE S
V P N
W A N
L E A S E D L IN E
D IA
B R O A D B A N D
Above graph depict that usage of data depends upon what type of industry
using data. For example, in the above graph, IT is using more data services
than any other industry because of there business requirement. Above graph
also depicts that what type of data is used by industries depends upon what
type of usage that industry requires.for example, IT is using more different
type of data other than broadband like leased line , wan , vpn.becuse of there
importance of there data.Industries like construction , logistics , manufacturing
etc. are rather monotonous in there data sevice solution selection.they primarly
believe in using broadband because of there nature of data is not much
important.
LIMITATIONS
Limitations of study
Lack of product knowledge during the initial phases of training.
Small sample size.
Difficulty in meeting the right person to get information.
Lack of awareness of reliance products among the customers.
Reluctance of company officials to disclose their internal information
as their turnover, their service providers etc.
SUGGESTIONS
Suggestions
Increase the coustmer awareness
Do work on feasibility
Decrease the process time of finding feasibility.
E.g. certain soft wares can be developed that gives instantaneous
information about the feasibility across the various locations in the
country by merely entering the address of the location to be covered.
Flexibility in the plans for accommodating more type of customers to
overcome competition, especially airtel
Try to take channel partners in full confidence and keep their
expectations in view
Priority channel partners should be employed who work exclusively
for one company and not for their competitors at one time
Try to overcome the technical roadblocks as in case of last mile
delivery, from the fiber to customer end.
Try to work to improve after sale service to the customer
Do not try to trap the customer, inspite of this try to convince the
customer with the exact information
Try to remove the tag of government company
Try to improve the report of company in the market.
SWOT ANALYSIS
Strengths
95000 km of fiber wiring
Brand power of reliance group
Availability of monitory resources
Political links of the top management
Second largest datacenter of asia
Their mesh configuration
They have the ability to provide SLA upto 99.5%
Weakness
Just in initial phase
Late enterant
Existing competition especially from airtel.
Bad market reputation
Lack of awareness about the reliance products in the market
Reliance have least share amongst all telecom companies in the market
Reluctant in making collaborations with other players in the market to
cater the non feasible areas of reliance
Opportunities
Evergrowing telecom sector
Having 95000 km of fiber wiring, reliance has immense opportunity to
tap each and every corner of the country
Changing behaviour of customers towards MTNL which creates more
opportunities for reliance communications
Due to lucrative rates as compared to their competitors, reliance has
the potential to induce switching in the costomer base of their
competitors towards themselves
Due to secured modes provided by reliance communications they have
the potential to cater the big customers
Threats
Entering of world’s largest telecom company VODAFONE in the
Indian market
35000 km of fiber wiring by airtel which isgrowing at rapid rate
Rigid process resulting into loss of business
Swiftness of competitorsto cater the customer
Unsatisfied customers, due to their value of “word of mouth”
CONCLUSION
CONCLUSION
From our study it is very clear that, airtel is a clear market winner in both data
and voice service because of their long existence since 1995 and their
continuous efforts to provide better service , customer satisfaction and to
maintain healthy relationship with their customer.
MTNL in spite of being a government undertaking, it has a good market share
in both data and voice due to lowest price in the market and having good
feasibility. But looking at the kind of history MTNL has, present results donot
point to a bright future. because since the privatization of telecom sector,
MTNL has not been able to hold its customer base. This is mainly because of
changing customer behavior, which now asks for better service, quality and
not the pricing, due to strengthened economy of the country. MTNL has to do
something in order to stay in the race in terms of their service.
During the course of study it clearly emerged that tata indicom is not very
popular among the SMEs. Their market share is very low inspite of having a
good market experience, they have not been able to grab a satisfactory share in
the market. Market position of tataindicom is only felt through the presence of
VSNL which has been taken over from government.
After working with reliance communications for two months , I have
conclude that
Positive aspects
1. having secured modes of communication.
2. having a large area network
Negative aspects
1. They have least market share among their competitors.
2. having bad reputation among customers
3. good but non popular products
Above negative points are just because of
1. Reliance communication is in its nascent stage and their
problems in the market are quite predictable.
2. Reliance communication is working for future.
