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Reliance Jio Infocomm

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0% found this document useful (0 votes)
365 views46 pages

Reliance Jio Infocomm

Uploaded by

narayani singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ACKNOWLEDGEMENT

In the present world, there is a high competition in which, those who are willing
to move forward in spite of all hurdles, succeed. A project to conduct a study, in
this aspect serves as a bridge between theoretical principles and practical
working. The success and final outcome of this project required a lot of
guidance and assistance from many people and we are extremely privileged to
have got all this along the completion of our project. We owe our deepest
gratitude to Dr.Tarjini goyal , Associate Professor, who motivated us to conduct
this study by imparting a sound theoretical basis and supervised our work. We
also thank our friends whose names could not be mentioned, for supporting us
and providing us with valuable information for the completion of this project.

PREFACE
Reliance Jio Infocomm Ltd (popularly known as Jio), is an Indian mobile
network operator launched commercially on September 5, 2016. Owned by
Reliance Industries, the entry of Jio revolutionised the telecommunication
sector. In this project the success story of this recent entrant and management
principles adopted by the the company were analysed on the basis of researches
and studies conducted in these fields. The organisational structure, planning and
marketing strategy, staffing and recruitment, SWOT analysis, PEST analysis,
promotional strategy, the impact of Jio launch, Government policies,
controversies surrounding Reliance Jio, its ventures, collaborations and future
projects were also discussed in detail.

DECLAIRATION
I the undersigned solemnly declare that the project report “HDFC
BANK”is based on my own work carried out during the course of

our study under the supervision of DR.TARJINI GOYAL.

I assert the statements made and conclusions drawn are an

outcome of my research work. I further certify that

I. The work contained in the report is original and has been

done by me under the general supervision of my

supervisor.

II. The work has not been submitted to any other Institution

for any other degree/diploma/certificate in this university

or any other University of India or abroad.

III. We have followed the guidelines provided by the

university in writing the report.

IV. Whenever we have used materials (data, theoretical

analysis, and text) from other sources, we have given due

credit to them in the text of the report and giving their

details in the references.

Name -NARAYANI

Roll No.-19103

Enrollment No.-19107

CONTENTS
1. Introduction to Sector/Company
Company’s vision & mission.

Product range of the company.

Size (in terms of manpower & turnover) of organization.

Organization structure of the company.

2. Market share & position of the company in the industry.

Market share

Major competitors

Major strategies of all players and competitive advantageduction to

Sector/Company.

3. PESTLE analysis

4. SWOT analysis for the Organization

5. Findings.

6. Recommendations.

7. References.

CHAPTER-1
INTRODUCTION TO
COMPANY
After the globalization of India economy in 1991 the telecommunication sector remained one
of the most happening sectors in India. The recent years witnesses rapid and dramatic
changes in the field of telecommunications. In the last few years more and more companies
both foreign, domestic, come into cellular service, service market and offers large number of
services to the people.

A consumer may be referred to anyone engaged in evaluating, acquiring, using or disposing


of services which he expects will satisfy his wants. If any producer makes out the marketing
programmer ignoring the consumer preferences, he cannot possibly achieve his ultimate
objectives. A manufacturer must plan his production and distribution to suit the consumer’s
convenience rather than his own. Therefore a marketer must know more and more about the
consumers, so that the products can be produced in such a fashion to give satisfaction to
them.

In the year of 1989, the number of cell phone users in India was zero. In the year of 1999 the
number of cell phone users has gone up by 13 lakh. In the year of 2000 the number of cell
phone users has risen by one million. Indian telecom sector added a staggering 227.27 million
wireless mobile users in the 12 months between March 2010 and March 2011, while the
overall tele density has increased to 81.82% as of 30 November 2015, and the total numbers
of telephone phone users (mobile & landline) have reached 1009.46 million as of
May,2015.Now currently telephone subscriber (mobile & landline) is 1058.01 million (May
2016).

The company is reconfiguring to meet the growing demand for mobile services. It will
differentiate our mobile services from our competitors through on going investment in
technology, distribution and customer services, providing both a great customer experience
and competitive value.

The company is updating our retail footprint to a new Reliance JIO concept delivering a
differentiated customer experience. Extensive trials of our new concept store across all
markets have shown significant increases in both sales and customer satisfaction. The new
concept will be rolled out globally over the next upcoming years.

Reliance Jio Infocomm Limited, is an Indian telecommunications services company that is


owned by Reliance Industries and is headquartered in Mumbai, Maharashtra, India. Jio
operates a national LTE network with coverage across all 22 telecom circles, however, it does
not offer 2G or 3G service, and instead uses voice over LTE to provide voice service on its
network.

Jio soft launched on 27 December 2015 (the eve of what would have been the 83rd birthday
of Reliance Industries founder Dhirubhai Ambani), with a beta for partners and employees,
and became publicly available on 5 September 2016. As of 31 May 2019, it is the largest
mobile network operator in India and the third largest mobile network operator in the world
with over 322.99 million subscribers.

On 5 July 2018, fixed line broadband service named Gigafiber, was launched by the Reliance
Industries Limited's chairman Mukesh Ambani, during the company's Annual The company
was registered in Ambawadi, Ahmedabad (Gujarat) on 15 February 2007 as Reliance Jio
Infocomm Limited. In June 2010, Reliance Industries (RIL) bought a 95% stake in Infotel
Broadband Services Limited (IBSL) for ₹4,800 crore (US$690 million). Although unlisted,
IBSL was the only company that won broadband spectrum in all 22 circles in India in the 4G
auction that took place earlier that year. Later continuing as RIL's telecom subsidiary, Infotel
Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in
January 2013.

In June 2015, Jio announced that it would start its operations all over the country by the end
of 2015. However, four months later in October, the company's spokesmen sent out a press
release stating that the launch was postponed to the first quarter of the financial year 2016–
2017.

Later, in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public
Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-India licence to
Jio by the Government of India. The PIL also alleged that Jio was allowed to provide voice
telephony along with its 4G data service, by paying an additional fee of just ₹165.8 crore
(US$24 million) which was arbitrary and unreasonable, and contributed to a loss of ₹2,284.2
crore (US$330 million) to the exchequer.

The Indian Department of Telecommunications (DoT), however, refuted all of CAG's claims.
In its statement, DoT explained that the rules for 3G and BWA spectrum didn't restrict BWA
winners from providing voice telephony. As a result, the PIL was revoked, and the
accusations were dismissed.

INDUSTRY PROFILE

India has a fast-growing mobile services market with excellent potential for the future. With
almost five million subscribers amassed in less than two years of operation, India's growth
tempo has far exceeded that of numerous other markets, such as China and Thailand, which
have taken more than five years to reach the figures India currently holds. The number of
mobile phone subscribers in the country would exceed 50 million by 2010 and cross 300
million by 2016, according to Cellular Operators Association of India (COAI).

According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market,
such growth rates can be greatly attributed to the drastically falling price of mobile handsets,
with price playing a fundamental role in Indian subscriber requirements. Subscribers in
certain regions can acquire the handset at almost no cost, thanks to the mass-market stage
these technologies have reached internationally. The Indian consumer can buy a handset for
$150 or less. This should lead to increased subscribership. This market is growing at an
extremely fast pace and so is the competition between the mobile service providers.

With the presence of a number of mobile telephony services providers including market
leaders like Airtel, Reliance, Idea Cellular, BSNL etc. who are providing either of the two
network technologies such as Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). In cellular service there are two main competing network
technologies: Global System for Mobile Communications (GSM) and Code Division
Multiple Access (CDMA). Understanding the difference between GSM and CDMA will
allow the user to choose the preferable network technology for his needs.

Global System for Mobile Communication (GSM) is a new digital technology developed by
the European community to create a common mobile standard around the world. It helps you
achieve higher sell capacity and better speech quality and one can enjoy crystal clear
reception on ones mobile phone. It automatically solves the problem of eavesdropping on
ones calls.

Before analyzing the telecom licensing framework in India, it is imperative that one must
examine what is a license. License issued by the government is an authority, given to a
person upon certain conditions to do something which would have been illegal or wrongful
otherwise. For example, a driver’s license issued by the government, gives the authority to a
person to drive a motor vehicle. There are three main types of license fee which the
government charges: (I) initial license fee, which generally is non-refundable, (ii) annual
license fee, and (iii) additional fee for allocation of spectrum.

Licensing framework has been an integral part of India’s telecommunication law. Under the
Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any
person to establish, maintain or use a telegraph.

Code Division Multiple Access (CDMA) describes a communication channel access principle
that employs spread spectrum technology and a special coding scheme (where each
transmitter is assigned a code). It is a spread spectrum signaling, since the modulated coded
signal has a much higher bandwidth than the data being communicated. CDMA is the current
name for mobile technology and is characterized by high capacity and small cell radius. It has
been used in many communication and navigation systems, including the Global Positioning
System and the omnitracs satellite system for transportation logistics.

Indian mobile telephony market is increasing day by day and there is more to happen with
technological up gradations occurring nearly every day and the ever-increasing demand for
easier and faster connectivity, the mobile telephony market is expected to race ahead.

JIO LOGO
Fig.1.hidden symbolism in jio’s logo

The logo of Reliance Jio has a hidden symbolism in it. When you flip the Jio logo around, it
is read ’oil’. The Jio logo seems to represent the past and future of Reliance. Oil is what had
propelled Reliance to become India’s biggest company in the 20th century. When flipped
over into the 21st, it’s probably going to be Jio.

NETWORK

Jio owns spectrum in 850 MHz and 1,800 MHz bands in India’s 22 circles, and also owns
pan-India licensed 2,300 MHz spectrum. The spectrum is valid until 2035.Jio shares the
spectrum with Reliance Communications. The sharing deal is for800 MHz band across seven
circles other than the 10 circles for which Jio already owns. In September 2016, Jio signed a
pact with BSNL for intra-circle roaming which would enable users of the operators to use
each other’s 4G and 2G spectrum in national roaming mode. In February 2017, Jio
announced a partnership with Samsung to work on LTE - Advanced Pro and 5G

BETA LAUNCH

The 4G services were launched internally to Jio's partners, its staff and their families on 27
December 2015. Bollywood actor Shah Rukh Khan, who is also the brand ambassador of Jio,
kick started the launch event which took place orate Park in Navi Mumbai, along with
celebrities like musician A R Rahman, actors Ranbir Kapoor and Javed Jaffrey, and
filmmaker Rajkumar Hirani. The closed event was witnessed by more than 35000 RIL
employees some of whom were virtually connected from around 1000 locations including
Dallas in the US.

COMMERCIAL LAUNCH

The company commercially launched its services on 5 September 2016. Within the first
month, Jio announced that it had acquired 16 million subscribers. Jio crossed 50 million
subscriber mark in 83 days since its launch, subsequently crossing 100 million subscribers on
22 February 2017. By October 2017 it had about 130 million subscribers.

ALLIANCE

In February 2016, Jio announced a global alliance of Mobile Network Operators which
include

 BT Group
 Deutsche Telekom
 Millicom
 Orange S.A.
 Rogers Communications
 MTS
 Telia Company
 Telecom Italia

PARTNERSHIP

Jio shares spectrum with Reliance Communications. The sharing deal is for 800 MHz band
across seven circles other than the 10 circles for which Jio already owns.

In September 2016, Jio signed a pact with BSNL for intra-circle roaming which would enable
users of the operators to use each other's 4G and 2G spectrum in national roaming mode.

In February 2017, Jio announced a partnership with Samsung to work on LTE - Advanced
Pro and 5G.

NATIONAL TELECOM POLICY 1994 (NTP 1994):-

The National Telecom Policy was announced in 1994 which aimed at improving India's
competitiveness in the global market and provide a base for a rapid growth in exports. This
policy eventually facilitated the emergence of Internet services in India on the back of
established basic telephony communication network. This policy also paved way for the entry
of the private sector in telephone services.

The main objectives of the policy were:

• To ensure telecommunication is within the reach of all, that is, to ensure availability
of telephone on demand as early as possible

• To achieve universal service covering all villages, that is, enable all people to access
certain basic telecom services at affordable and reasonable prices

• To ensure world-class telecom services. Remove consumer complaints, resolve


disputes and encourage public interface and provide a wide permissible range of services to
meet the demand at reasonable prices

• To ensure that India emerges as a major manufacturing base and major exporter of
telecom equipment

• To protect the defence and security interests of the nation.

The policy also announced a series of specific targets to be achieved by 1997 and further
recognized that to achieve these targets the private sector association and investment would
be required to bridge the resource gap.

Thus, to meet the telecom needs of the nation and to achieve international comparable
standards, the sector for manufacture of telecom equipment had been progressively relicensed
and the sub-sector for value-added services was opened up to private investment (July 1992)
for electronic mail, voice mail, data services, audio text services, video text services, video
conferencing, radio paging and cellular mobile telephone. The private sector participation in
the sector was carried out in a phased manner. Initially the private sector was allowed in the
value added services, and thereafter, it was allowed in the fixed telephone services.
Subsequently, VSAT services were liberalized for private sector participation to provide data
services to closed user groups.

Establishment of TRAI

The entry of private players necessitated independent regulation in the sector; therefore, the
TRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs,
and also to fulfil the commitments made when India joined the World Trade Organization
(WTO) in 1995. The establishment of TRAI was a positive step as it separated the regulatory
function from policy-making and operation, which continued to be under the purview of the
DoT2.

The functions allotted to the TRAI included:

a. To recommend the need and timing for introduction of new service provider
b. To protect the interest of customers of telecom services

c. To settle disputes between service providers

d. To recommend the terms and conditions of license to a service provider

e. To render advice to the Central government on matters relating to the development of


telecommunication technology and any other matter applicable to the telecommunication
industry in general.

NEW TELECOM POLICY 1999 (NTP 1999):-

In recognition of the fact that the entry of the private sector, which was envisaged during
NTP-94, was not satisfactory and in response to the concerns of the private operators and
investors about the viability of their business due to non realization of targeted revenues the
government decided to come up with a new telecom policy. The most important milestone
and instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The
New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become
effective from 1st April 1999.Moreover, convergence of both markets and technologies
required realignment of the industry. To achieve India’s vision of becoming an IT
superpower along with developing a world class telecom infrastructure in the country, there
was a need to develop a new telecom policy framework. Accordingly, the NTP 1999 was
framed with the following objectives and targets:

• Availability of affordable and effective communication for citizens was at the core of
the vision and goal of the new telecom policy

• Provide a balance between provision of universal service to all uncovered areas,


including rural areas, and the provision of high-level services capable of meeting the needs of
the economy

• Encourage development of telecommunication facilities in remote, hilly and tribal


areas of the nation

• To facilitate India’s journey to becoming an IT superpower by creating a modern and


efficient telecommunication infrastructure taking into account the convergence of IT, media,
telecom and consumer electronics

• Convert PCOs, wherever justified, into public telephone information centers having
multimedia capability such as ISDN services, remote database access, government and
community information systems etc.

• To bring about a competitive environment in both urban and rural areas by providing
equal opportunities and level playing field for all players
• Providing a thrust to build world-class manufacturing capabilities and also strengthen
research and development efforts in the country

• Achieve efficiency and transparency in spectrum management

• Protect the defense and security interests of the country

• Enable Indian telecom companies to become global players.

In line with the above objectives, some of the specific targets of the NTP 1999 were:

• Make available, telephone on demand by 2002 and achieve a tele density of 7% by


2005 and 15% by 2010

• Encourage development of telecom in rural areas by developing a suitable tariff


structure so that it becomes more affordable and by also making rural communication
mandatory for all fixed service players and thus

o Achieve a rural tele density of 4% by 2010 and provide reliable transmission

o media in all rural areas.

PRODUCTS AND SERVICES

Jio Phone

On 21 July 2017, Jio introduced its first "affordable" 4G feature phone, based on KaiOS,
named as JioPhone. This phone was released for beta users on 15 August 2017 and pre-
booking for regular users started on 24 August 2017.

JioPhone 2

A second model with a QWERTY keyboard, as well as Facebook, WhatsApp and YouTube
applications, was released in July 2018.

4G broadband

The company launched its 4G broadband services throughout India in September 2016. It was
slated to release in December 2015 after some reports said that the company was waiting to
receive final permits from the government.Jio offers fourth-generation (4G) data and voice
services, along with peripheral services like instant messaging and streaming movies and
music.

The company has a network of more than 250,000 km of fiber optic cables in the country,
over which it will be partnering with local cable operators to get broader connectivity for its
broadband services.With its multi-service operator (MSO) licence, Jio will also serve as a TV
channel distributor and will offer television-on-demand on its network.

LYF smartphones.

In June 2015, Jio entered into an agreement with domestic handset maker Intex to supply 4G
handsets capable of voice over LTE (VoLTE). However, in October 2015, Jio announced that
it would be launching its own mobile handset brand named LYF.

On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,
through its chain of electronic retail outlets, Reliance Retail. Three more handset models have
been released so far, namely Water 2, Earth 1,and Flame1.

Jionet WiFi

Prior to its pan-India launch of 4G data and telephony services, Jio has started providing free
Wi-Fi hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat, and
Visakhapatnam in Andhra Pradesh,Indore, Jabalpur, Dewas and Ujjain in Madhya Pradesh,
select locations of Mumbai in Maharashtra, Kolkata in West Bengal, Lucknow in Uttar
Pradesh, Bhubaneswar in Odisha, Mussoorie in Uttarakhand, Collectorate's Office in Meerut,
and at MG Road in Vijayawada among others.

In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums
hosting the 2016 ICC World Twenty20 matches. Jionet was made available in Wankhede
Stadium (Mumbai), Punjab Cricket Association IS Bindra Stadium (Mohali), Himachal
Pradesh Cricket Association Stadium (Dharamshala), Chinnaswamy Stadium (Bengaluru),
Feroz Shah Kotla (Delhi), and Eden Gardens (Kolkata) in India.

Jio GigaFiber

Jio started testing Jio Giga Fiber on 15 August 2018 which offers high speed broadband,
landline and DTH services.

On August 12, 2019, It was announced that Jio Giga Fiber will be available commercially
from September 5.
Jio Set Top Box

Jio announced Jio Set Top Box on August 12, 2019, which offers 4K DTH service,
Multiplayer online network for gaming with support for many platform controllers. The Jio
Set Top Box also supports 4K gameplay where you can play online with other people via
video conferencing virtually.

Jio apps

Jio sim card pouch as distributed by Reliance Jio Infocomm

In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its
upcoming 4G services. While the apps are available to download for everyone, a user will
require a Jio SIM card to use them. Additionally, most of the apps are in the beta phase.
Notable apps include:

 JioChat - instant messaging app


 JioCinema - online HD video library
 JioCloud - cloud-based backup tool
 JioMags - e-reader for magazines
 JioMoney Wallet - online payments/wallet app
 JioSaavn (earlier, JioMusic) - for online and offline music streaming in English and
Indian languages
 JioSecurity - security app
 Jio4GVoice (earlier, JioJoin) - VoLTE phone simulator
 MyJio - manage Jio account and digital services associated with it

Affordable 4G phones

Reliance Jio has partnered with Google to manufacture "affordable" 4G handsets. These
phones will run exclusively on Jio network. The two companies are also working on
developing software for smart-TV services. Both were expected to launch in 2017.

JioFi

Jio has also launched Wi-Fi routers by the name JioFi.

Pokémon Go

Location-based AR game Pokémon Go was launched in India in December, 2016 in


collaboration with Jio in which hundreds of Jio stores and other Reliance marts and shopping
malls like Reliance Trends and Reliance Digital became Sponsored PokéStops and Gyms.
BRANDING AND MARKETING

On December 24, 2015, Bollywood actor Shah Rukh Khan was appointed as Jio's brand
ambassador.

Reception of Jio Prime

By July, more than 125 million Jio customers had opted for Jio Prime. The last date for
registration to Jio Prime membership was 31 March 2017. This was extended until 15 April
2017 along with an introduction of a new offer, "Jio Summer Surprise", which gave
customers three months of free services. On 6 April 2017, TRAI advised Jio to withdraw this
offer.

Issue with incumbents

In September 2016, the Telecom Regulatory Authority of India (TRAI) summoned Jio and
the country's existing telecom operators like Airtel, Vodafone, and Idea Cellular to meet and
discuss an issue regarding interconnection between the operators. This was a result after Jio
complained to TRAI and Department of Telecom (DoT) about other operators not honoring
their commercial agreements to let Jio use their network resources. The company further
added that the operators are trying to sabotage its entry into the telecom scene. However,
DoT dismissed the request and directed TRAI to help settle the dispute amicably. Moreover,
the Cellular Operators Association of India (COAI) requested TRAI to include all the
operators in the discussion instead of the three.
The incumbent operators had previously approached the country's PMO to reiterate their
stance they "are in no way obliged or in any position to entertain Jio's requests for
interconnection points as they do not have either the network or the financial resources to
terminate the latter's humongous volumes of potentially asymmetric voice traffic."
Responding to this, Mukesh Ambani, owner of Jio, said, "All operators have publicly said
last week that they will provide this (interconnect and MNP). So, we are waiting. These are
all great companies. They have their own reputations to protect. I am confident they won't
violate the law." Commenting about number portability, he added, "The number belongs to
the consumer. No operator can cause trouble if they want to change operators." However, on
12 September 2016, Idea Cellular agreed to allow Jio to use 196 of its interconnection access
Week During the launch of the government’s Digital India initiative, Ambani promised to
partner with the government and invest over Rs 250,000 crore, or $39.29 billion,in its
projects. He pledged to lay out a next-generation wireless network across all 40Indian states,
create a nationwide cellular distribution network involving 150,000retailers, encourage phone
manufacturers to set up shop in the country, and help small start-ups. When Jio formally
launched over a year later, Indians woke up to front-page advertisements for the company in
the Times of India and the Hindustan Times that featured a large image of Narendra Modi
below the Jio logo. “Jio is dedicated to realising our Prime Minister’s Digital India vision for
1.2 billion Indians,” it read. In almost every public statement about the company, Ambani has
continued to reference Digital India, claim credit for the country’s growing internet usage and
promise even bigger gains points.

CHAPTER-2 MARKET
SHARE AND POSITION
OF THE COMPANY IN
THE INDUSTRY
PLANNING AND MARKETING STRATEGY

Reliance Jio Infocomm Limited revolutionised the telecom sector. The scenario of Indian
telecom market before JIO entered it was:

•There were more than 1 billion mobile users in India, out of which only 34%were connected
to the internet.

•Only 12% from these 1 billion used 3G data or above.


Then came Jio which took the market by storm by offering Data Centric plans and free
promotional data. The Biggest difference between JIO and others is its Optical Fibre
Network. An optical fibre is a wire that converts your data signal into light and transfers them
at the speed of light. Reliance Jio has the longest fibre optic network in the country, ranging
over 2,50,000 km and 90,000 eco-friendly 4G Towers to provide the greatest 4G Coverage in
all of India’s 22 telecom circles. Reliance Jio invested Rs150,000 crore to put this in
perspective – this is more than two times the combined investment of Airtel, Idea, and
Vodafone in the 4G Segment. The success of Jio can be mainly attributed to its clear
operational planning which can be summarised into five distinct steps:

1. Step One: Undercut the market price by giving attractive discounts and free
promotional Data.

2. Step Two: Let everyone switch to Jio or at least buy a Jio sim to experience data for
free.

3. Step Three: Unleash the power of fibre optic network to give super fast internet and
make people realise that 1GB data is not really much.

4. Step Four: Grow your subscriber base by having good customer care and awesome plans.

5. Step Five: Recover your investment using the large number of users accumulated.

Once the fibre optic network is laid down, the cost of operating is not very huge. On the
contrary, the network can be at minimal cost; therefore the only focus was to get more
internet users. If 60% of the people in India use 1 GB internet per month then Jio can recover
the initial investment in 3 years. The company also plans to rake in profits from its mobile
apps which include a variety of services which are described in subsequent sections.

STAFF RECRUTMENT AND TRAINING

The selection procedure in Reliance Jio is completed in following three steps:

•Written test (Aptitude): It analyses the skills in topics like ratio, simple logics, comparisons,
analogy etc.

•Technical written test: It analyses the knowledge of the candidate in fields of electronics and
networking subjects.

•Technical and HR interview : This being the final step is based on national merit test. It tests
the technical and personality skills of the candidate.

About 10 to 20 training programs are scheduled for the employees in a year, although the
organisation does not give much importance to it. Most of the training is given on the bases
of requirement of employees and organisational work schedule. The training method used in
the organisation is based on conference/discussion held time to time according to the work
and situations. Training given to the new recruitment in the organisation is based on the
requirement that whether it is necessary or not and what is the duration. Surveys show that
most of the employees agreed that the training sessions con-ducted in the organisation are
useful to the employees. Usually 1-2 days were taken to implement the training process in the
organisation because of the work demand.

It has been observed by studies in this field that the organisation has to put more inputs in
training and development of every employee for better growth and productivity of the
organisation in an effective manner. There are gaps between the training sessions organised
by the company because of which trainees lose touch with training.

PROMOTIONAL STRATEGY

Jio had appointed 50 customer acquisition and relationship managers who are hiring teams to
target to sign up 1 million users each in the first two months. Mukesh Ambani thought
”globally consumers pay for either calls and texts, or data- they do not pay for both” Based
on this promotional strategies adopted by Jio are given below:

•With every Reliance Jio sim, regardless of the package, the following are absolutely free

1. Unlimited free voice calling to any other network, any other number (local and STD).

2. No roaming charges, same price is applicable all over India.

3. Jio applications will provide Internet surfing, music, movies, programs free of cost.

•Jio targets customers ranging from high end to mid and low range segments by offering all
services at reasonable prices

•LYF smartphones are priced between Rs. 4000 to Rs.19000 which provides maximum off
take, therefore helping JIO derive high returns

•If you buy a monthly plan worth Rs. 500 or more, you will get the following additional
benefits:

1. Unlimited SMS (STD and local)

2. High speed 4G internet- unlimited at night.

3. If you have a student registered SIM ID, you will receive 25% extra data usage.

IMPACT OF JIO LAUNCH ON MARKET

Over a very short span of time, Reliance Jio became a phenomenon in India. Reliance’s
shares, having languished for several years, took off in early 2017 after it said Jio would
emerge from its trial period and begin charging for service. The shares have almost
doubled since then. A price war arose between telecommunication operators and people
were able to access services at very cheap rates. The impacts of the Jio launch are
described below:

 Impact on Citizens
1. People suddenly had access to unlimited free voice call, 4G data, messaging
and related services. Jio spread out like a phenomenon in the nation, acquiring
about 1000 customers per minute. Within 83 days of its launch, it crossed the50-
million subscriber milestone, which had taken Airtel 12 years, and Vodafone and
Idea 13 years .
2. 77% of the population of upper triangle of the country use Jio services of which
83% belongs to youth (20-40 age groups).
3. Data consumption has increased drastically after Jio and people are more aware
about services like entertainment, education, shopping, payment and booking, etc.
4. From a nationwide survey, the result showed that 86.3% people consumed
mobile data up to 10 GB only, before Jio came into the Indian market where as the
contribution of people with more than 10+ GB data consumption was only13.7%.
After Jio entrance, the mobile data consumption of more than 10 GB, increased
drastically by 383% with market share increased from 13.7% to 65.9%clearly
showing the effect of Jio towards the usage of the internet services.
5. India is now the top country in data consumption compared to 155th before Jio
launch.
6. Many government processes are now completely digitalized, leading to
decreased expenditure and time spent.
7. There has been accusations of data breach due to increased AADHAR usage.
8. Aggressive ad campaign of reliance Jio may also affect the industry’s scenario.
It will be difficult for other player to grow their consumer base and it will lead to
high promotional expenses.
 Impact on the Economy and Telecom Industry

1. Market shares of other major players in the industry, such as Airtel, Vodafone and Idea fell
abruptly. They were forced to re-think and reduce their tariffs. Cost of data cut down to less
than Rs. 15/GB from at least Rs. 250/GB.

2. Bharti Airtel, Vodafone and Idea Cellular petitioned a plea to TRAI regarding the tariff
rates set by Jio. TRAI dismissed the motion.

3. The state-run telecom operator, Bharat Sanchar Nigam Limited (BSNL) also cut down
their rates in an unprecedented move. They also started to use their underutilised 7 lakh
kilometres of fibre network and reduced internet usage charges.

4. As the rivals were forced to lower their prices, the industry-wide monthly average revenue
per user (ARPU) fell by roughly a third. This had a negative effect on the revenue of the
sector. In March 2017, TRAI reported that the turnover from the telecom industry (including
the fixed segment) had fallen by INR 100 billion between June 2016 and March 2017

5. Jio’s explosive growth did not have a negligible impact on the overall take-uprates of
existing companies, although new subscriptions for 3G and 4G services slowed down
somewhat. Large operators continued to expand their bases with roughly the same pace,
while the smaller providers saw a slight downturn. The trend suggests that many of Jio’s
subscribers had signed up to their services alongside plans with other providers to capitalize
on the free services while they were available.

6. To keep up with the competition, mergers and consolidations took place among players.
The major shareholders reduced from about twelve into three large private players —
Reliance Jio, Bharti Airtel and Vodafone Idea — accounting for more than 90% of revenue
and 80% of spectrum holding.

7. Apart from declining financial health of incumbents, there have been massive job losses
owing to mergers and sector consolidation. Experts estimate the number of job losses to be
around 12,000-15,000 in the last two years, with a major shedding from Vodafone and Idea
Cellular duo.

8. There has been declining average revenue per user (ARPU) and margins with high debt
levels. Together, the telecom industry has a cumulative debt of Rs3.6 lakh crore.

9. The monthly data usage per smartphone (GB/month) in India is expected to go up to 13.7
GB by 2023 from 5.7 GB in 2017. The total mobile data traffic per month in India expected
to grow five times from 1.9 EB to 10 EB by 2023,according to data from Ericsson. The
adoption of 4G has been made possible only after the arrival of Reliance Jio.

10. Almost all smartphones now shipped are 4G - VoLTE enabled.

11. There has been a increase in investment and revenue for video-streaming web-sites such
as Hotstar and Netflix.

12. Jio will help expand India’s per capita GDP by about 5.65%, if everything else is kept
constant in the economy. Jio’s entry has led to $ 10 billion savings for India.

COMPETITIVE ANALYSIS

MAJOR PLAYERS IN TELECOM INDUSTRY


Headquartered in New Delhi, India, Bharti Airtel Ltd is a leading global telecommunications
company with operations in 20 countries across Asia and Africa. The company ranks
amongst the top four mobile service providers, globally, in terms of number of subscribers. In
India, the company's product offerings include 2G, 3G and 4G wireless services, mobile
commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services
including national and international long distance services to carriers. In the rest of the
geographies, it offers 2G, 3G wireless services and mobile commerce.

Bharti Airtel: An inspiring success story

2015 Launches 4G mobile services in 296 towns

2014 Buys Loop Assets for US$ 105 million

2013 Airtel signs definitive agreement to fully acquire Warid Uganda

2012 Launched its mobile wallet service -- Airtel Money

2012 Airtel launches Green Data Centre in Mumbai

2009 Bharti Airtel Introduces India’s First Android™ Phone, the HTC Magic for Airtel
Customers

2006 Bharti Airtel and Microsoft enter into a strategic partnership to offer software and
services for small and medium business (SMB) market in India

2001 Signs first NLDO Licence in India

Vodafone group is a mobile communication company which provides service to mobile


voice, messaging, data and fixed line. The company money transfer service Mpesa enables
people in emerging markets, to send and receive money through a mobile phone.Vodafone
India Limited, formerly Vodafone Essar Limited, is the second largest mobile network
operator in India after Airtel by subscriber base. It is headquartered in Mumbai, Maharashtra.
It has approximately 173 million customers as of September 2014. It offers both Prepaid and
Post-paid GSM cellular phone coverage throughout India with good presence in the metros.

Vodafone India Ltd, headquartered in Mumbai, is the second largest mobile network operator
serving over 150 million customers in India with a presence in all telecom circles. The
company is a member of the Vodafone Group and commenced operations in 1994 when its
predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone India
has firmly established a strong position within the Vodafone Group too, making it the largest
subscriber base globally.

Vodafone Business Solutions serves the requirements of an enterprise. It is a total


communications offering that caters to all their voice and data, wireless and fixed-line needs.
With the advantage of global expertise, experience and the knowledge of local markets, the
business is run through the following verticals – Vodafone Global Enterprise, SME, National
Corporate and Key Accounts.

In line with the government’s objective to improve rural penetration of telephony services,
the company has also worked continuously in the last few years to establish a strong rural
presence. Vodafone has marked a growth of over 21 per cent in its rural subscriber base in
FY 2011–12 to become the second largest rural wireless operator in the country.

Vodafone: India’s third-largest mobile operator

2013 Unveils its first ‘Retail of tomorrow’ or ‘ROTO’ store in Karnataka

2012 Receives award from tele.net as the best 3G service operator – Telecom Operator
Awards 2012

2011 Ranks No. 1 in overall customer satisfaction – Hindustan Times’ customer


satisfaction National Survey

2010 Launches mobile applications store

Idea Cellular, an Aditya Birla Group company, is a pan-India integrated GSM operator
offering 2G and 3G services, has its own National Long Distance (NLD) and International
Long Distance (ILD) operations, and Internet Service Provider (ISP) license. With revenue in
excess of US$ 5 billion, market share of nearly 18.2 per cent, and subscriber base of over 165
million. Idea is India’s third largest mobile operator. Idea is the sixth largest mobile operator
in the world, based on number of subscribers in single country operations (as per GSMA
Intelligence). Idea carries traffic of over 2 billion minutes a day.

Idea is planning to launch 4G services in early 2016. The company has a well established
network across the length and breadth of the country comprising of over 1,49,196 cell sites
covering 7,513 towns and 3,63,580 villages as on the first quarter of FY 16. Using the latest
in technology, Idea provides world-class service delivery through the most extensive network
of customer touch points, comprising of nearly 6,752 exclusive Idea touch points,. Idea’s
customer service delivery platform is ISO 9001:2008 certified.

Idea: India’s 3rd largest mobile operator

2015 Launches 3G Services in Delhi on 900 MHz Spectrum

2014 Raises Rs 3,000 crore (US$ 454.1 million) via Qualified institutional placements

2013 Becomes 3rd largest mobile operator in subscriber terms

2012 Becomes a US$ 4 billion company in revenue

2011 Becomes first operator to announce the launch of Mobile Number Portability

2010 Wins 3G Spectrum in 11 service areas in India

2009 Becomes a pan-India operator

Tata Docomo is Tata Teleservices Ltd's telecom service on the GSM platform and it has
arisen out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO
in November 2008. DOCOMO is a global leader in the Value Added Services (VAS) space,
both in terms of services and handset designs. Tata Teleservices was incorporated in 1996
and is the pioneer of the CDMA 1x technology platform in India. Tata Teleservices Ltd,
along with Tata Teleservices (Maharashtra) Ltd, serves customers in more than 450,000
towns and villages across India, with a range of telephony services encompassing mobile
services, wireless desktop phones, public booth telephony and wireline services.

Tata Teleservices has received a license to operate GSM telecom services in 19 of India's 22
telecom circles and has also been allotted spectrums in 18 telecom circles. Of these, it has
already rolled out services in all the 18 circles that it received spectrum in from the
Government of India.

TATA DOCOMO:Redefining telecom services

2015 Adds 1,000 new 3G sites in Maharashtra

2014 Launches 'Create Your Own Number' Option for Subscribers

2012 Joins hands with Dell to launch Unique Bundled Broadband Programme

2011 Tops 'Quality of Service' survey commissioned by TRAI in MP& CG

2010 Partners with Gemalto and launches first Blackberry smartphone for CDMA
subscribers in India

2009 Enters into strategic partnerships with Microsoft Team, Quippo telecom and signs
Memorandum of Agreement (MoU) with Hirco

2008 Partners with IIT Bombay and DoT

2007 Ties up with Opera Software to offer web access in all regional languages.
Jio IMPACT ON THE COMPETITION

If more than 50% of the existing subscribers choose to stick with Jio, it will have serious
repercussions for other telecom players. “Even Jio customers who retain plans from other
companies may reduce usage, impacting their ARPU,” says Ambani. It will become difficult
for Airtel, Vodafone, Idea, etc. to grow their user base as Jio aggressively adds customers at
their expense. Fall in subscribers is just one of the problems staring the other telecom players.
Another key challenge is fall in pricing power. “Due to aggressive pricing by Jio, pricing
power in the telecom sector has gone. Other telecom players have no option but to match,
follow what Reliance Jio is doing,” says Daljeet Kohli, Director and Head of Research, India
Nivesh Securities. If others don’t match Jio’s offers, their market share will go and, if they
cut prices, revenue will be hit. The fall in net profits will be more than the fall in revenues.

Despite the dangers, stock prices of other companies have not been negatively impacted
because of long-term prospects of a more consolidated telecom sector. “Since data
consumption is going to increase exponentially, everyone will benefit in the next 3-5 year
period,” say Joshi. Investors, however, should be cautious. “Since we don’t know how long
this madness will continue, it is better not to get into it now,” adds Kohli.

Airtel, however, is likely to survive this phase and can be a good buy for the long term.
“Airtel possesses the leanest cost structure and is improving its capital efficiency,” says
Pankaj Pandey, Head of Research, ICICI Direct. Its subscriber market share is expected to
29.1% and revenue market share to 33.3% due to its acquisition of Telenor.
How Jio may impact RIL’s profits in 2018-19

Unless Jio breaks even, it will be a drag on RIL’s bottom line

RIL’s capex will continue to fall

In 2016-17, RIL’s capex on Jio will be 11% of its overall Capex. It was 96% in 2014-15.
FREE VOICE & 4G DATA FROM OPERATORS BY JIO EFFECT

All offers launched by other Indian networks by the effect of Reliance Jio. Like Vodafone is
offering double 4G data, Aircel is offering free voice calling for 90 days for Delhi customers
at Rs. 148, BSNL is soon going to introduce unlimited voice calling plan exactly same as Jio
at just Rs. 149.

Previously we have shared Jio effect on another operator by Welcome Offer, and now Jio
effect is moving towards Jio happy new year offer.

VODAFONE DOUBLE 4G DATA PLANS & OFFERS

Due to Jio Effect, Vodafone has now doubled their 4G data for plans starting from 255 Rs.
This offer is valid for both old and new Vodafone prepaid customers. Although it is the effect
of Reliance Jio 4G still Apoorva Mehrotra, Business Head of Vodafone Delhi / NCR said that
we got a good response to Vodafone SuperNet4G and henceforth introducing double data to
all 4G customers.

Vodafone Double Data Offers on 4G Recharges

4G Data Price 4G Plan Benefit Extra 4G Data Validity

255 1GB 1GB 28 days

459 3GB 3GB 28 days

559 4GB 4GB 28 days

999 10GB 10GB 28 days

1999 20GB 20GB 28 days

On comparing Rs. 999 plan, you will get 20 GB of 4G Internet data which is same as Rs. 50
per 1 GB data offer by Reliance Jio which is yet to become commercial after March 2017, but
until then you can enjoy free data of 1 GB per day via Jio new year offer. Get 9 GB free with
1 GB Vodafone Data on New 4G Phone
This plan is exactly similar to the Airtel Free 4G data offer where the user needs to do 4G
recharge for 1 GB plan from there new 4G enabled mobile handset, and they will get
additional 9 GB free 4G data. Same is the case with Vodafone where you will Now get 9GB
of FREE data on your new 4G Smartphone for as many as 3 months.

How to get free Vodafone 4G SIM upgrade?

Looks like Vodafone is stalking AirTel with its plans and offerings, and this time is the case
with free 4G sim upgrade. Yes, you can upgrade your 3G SIM to 4G absolutely free of cost.
Just visit any Vodafone Store and ask for 4G upgrade.

Upgrade to Vodafone 4G SIM & Get Free 2 GB Data

Now once you upgrade from 3G to 4G SIM that too free of cost, Vodafone will greet you
with free 2 GB of 4G internet data to make you aware of internet experience with Vodafone
SuperNet4G.

This offer is applicable only for existing Vodafone customers with a 4G phone in select
locations.

RELIANCE JIO EFFECT ON AIRTEL 4G PLANS & OFFERS

Due to Jio Effect, Airtel has launched many offers and plans to hold their customers. We
have created a detailed blog post for the same where we have listed all Airtel free 4G data
offers which are currently active and how you can avail them.
Offers include free 4G SIM upgrade, 10 GB 4G internet data at price of 1 GB, Free 1GB 4G
data by giving missed call and many more offers listed in that blog post. So make sure to
check out those before it gets expired.

Free Unlimited Airtel to Airtel Calls

Airtel has launched a plan with which you will get unlimited free voice calling from Airtel to
Airtel mobile number whether it is Local or STD. This plan costs Rs. 145 and not only free
calling but you will also get free 4G data with it.

Apart from free voice calling, Airtel prepaid user will also get 300 MB of 4G Internet Data.
Moreover if you do not have a smartphone and you are using a featured phone then you will
get extra 50MB of internet data. This plan is valid for 28 days. Free Unlimited Voice Calling
from Airtel to Any Network Another plan launched by Airtel is Rs. 345 plan under which
prepaid users will be eligible to call freely to any network. Means you will get free calling
from Airtel to any network provider in India.

Secondly, you will get 1 GB of 4G Internet data and same 50 MB of additional data if you
have featured phone.This plan is valid for 28 days.

IDEA 4G SIM UPGRADE & GET 2GB FREE DATA

Similar to Airtel & Vodafone, Idea also giving away free 4G SIM upgrade with free 2GB
data offer for new 4G customers. Also, you can get 10GB internet data for Rs. 255 on
upgrading to a 4G smartphone.

Another great offer is that you can get 1GB 4G data for just Rs. 51 per month till 1 year after
doing a 4G recharge of Rs. 1499 in which you will get 15 GB of 4G Internet data. This price
may vary across circles, but this plan can be compared with Reliance Jio 4G plans.

After Jio Effect, Idea is running in the track of data war, and almost every operator like
Airtel, Idea, Vodafone are running side by side with the same sets of plans.

RELIANCE JIO EFFECT ON BSNL


Out of all other telecom operators, BSNL was the first and closest competitor to Reliance Jio
with its internet plans and free voice calling offers. Not only in the mobile network but BSNL
launched unlimited broadband plans to grab as many customers as they can in this telecom
industry race.
BSNL recently launched STV 498 plan as a promotional offer for winter holiday season, and
this plan can be activated till 7th January 2017. This is an unlimited 3G data plan which is
valid for both new & old users, and valid for 14 days as usual.
An interesting fact is that there is no FUP limit on the 3G speed provided by BSNL that is
there is no speed limit, and you will get maximum 3G speed.

BSNL to Launch Unlimited Voice Calling Plan

BSNL state-run operators are about to launch an unlimited voice calling offer which is
exactly same as one of the Reliance Jio monthly plan. This plan is expected to be priced at
Rs. 149 and with that, you will not only get free unlimited voice calling but also 300 MB of
internet data. It is expected to be launched in January 2017.

BSNL Chairman, Anupam Shrivastava admitted that ‘Jio has come up with disruptive
strategy and we are ready to match whatever tariff is being offered by our competitors’.

AIRCEL OFFERING FREE VOICE CALLING FOR DELHI USERS

With Aircel new combo voucher of Rs. 148 you will get free voice calling for 3 months. Free
calling includes all on net calls free and all off-net Calls free (15000 seconds capping/month)
for 30 & 60 days respectively. Post expiry you will be charged 30 paise per minute for all
local and STD calls.

Moreover, you will get unlimited Data (FUP of 500 MB) for 28 days. This offer is valid only
for Delhi subscribers. Remember that you need to have at least Rs. 50 in your account
balance.

Aircel launches unlimited voice calling packs

#Updated on 14th Dec: Aircel has now launched unlimited free voice calling plans for their
subscribers across India. The plans are RC14 & RC249 applicable for both existing and new
prepaid customers. Price of the packs may vary according to different circles.

RC14 Plan worth Rs. 14 offers unlimited free Local & National calls to any network in India
for 1 day.
RC249 Plan worth Rs. 249 offers unlimited free Local & National calls to any network in
India for 28 days. Moreover, you will also get unlimited 2G internet data valid for 28 days.

Tata Docomo Free Internet Data & Free Calling for Postpaid Users
Tata Docomo also came into the race with free 1500 minutes voice calling and 2GB of
Internet data for their postpaid customers. They are calling it as ‘Simple is the Best’ combo
plan which is priced Rs. 299 for postpaid customers.

This plan comes with 1500 minutes of free voice calling for local & national calls. That is it
for now, but we will add more plans and offers which came after the Jio effect in this blog
post. Hope this post helped you to earn free 4G internet data for your desired telecom
company. also known as Reliance Jio and officially as Reliance Jio Infocomm Limited
(RJIL),[is an upcoming provider of mobile telephony, broadband services, and digital
services in India..Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries
Limited (RIL), India’s largest private sector company, is the first telecom operator to hold
pan India Unified License. Formerly known as Infotel Broadband Services Limited (IBSL),
Jio will provide 4G services on a pan-India level using LTE technology. The telecom leg of
Reliance Industries Limited, it was incorporated in 2007 and is based in Mumbai, India.It is
headquartered in Navi Mumbai. RJIL is setting up a pan India telecom network to provide to
the highly underserviced India market, reliable (4th generation) high speed internet
connectivity, rich communication services and various digital services on pan India basis in
key domains such as education, healthcare, security, financial services, government citizen
interfaces and entertainment. RJIL aims to provide anytime, anywhere access to innovative
and empowering digital content, applications and services, thereby propelling India into
global leadership in digital economy.

RJIL is also deploying an enhanced packet core network to create futuristic high capacity
infrastructure to handle huge demand for data and voice. In addition to high speed data, the
4G network will provide voice services from / to non-RJIL network.

RJIL holds spectrum in 1800 MHz (across 14 circles) and 2300 MHz (across 22 circles)
capable of offering fourth generation (4G) wireless services. RJIL plans to provide seamless
4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an
integrated ecosystem.

Reliance Jio is part of the “Bay Of Bengal Gateway” Cable System, planned to provide
connectivity between South East Asia, South Asia and the Middle East, and also to Europe,
Africa and to the Far East Asia through interconnections with other existing and newly built
cable systems landing in India, the Middle East and Far East Asia.
RJIL’s subsidiary has been awarded with a Facility Based Operator License (“FBO License”)
in Singapore which will allow it to buy, operate and sell undersea and/or terrestrial fibre
connectivity, setup its internet point of presence, offer internet transit and peering services as
well as data and voice roaming services in Singapore.

R-Jio is also in the process of installing hundreds of monopoles, unlike the regular rooftop-
mounted telecom towers typically used by telcos, said the company executive quoted above.
Monopoles, or ground-based masts (GBMs), are expected to double up as street lights and
surveillance systems, and provide real-time monitoring of traffic and advertising
opportunities.

The company, which plans to be rolled out commercial telecom service operations from
January, is currently in the testing phase for most of its offerings including 4G services, a
host of mobile phone applications and delivery of television content over its fibre optic
network.

R-Jio, meanwhile, faces its share of challenges in terms of return on investment and capturing
market share. The company, according to industry analysts, is expected to spend $8-9 billion
for the 4G roll-out. The company will battle for subscribers with leading telcos such as Bharti
Airtel Ltd, Vodafone India Pvt Ltd and Idea Cellular Ltd.

The services were beta launched to Jio's partners and employees on 27 December 2015 on
the eve of 83rd birth anniversary of late Dhirubhai Ambani, founder of Reliance Industries.
Mr. Akash Ambani is being launched in business as a chief of strategy in Reliance
JIO,involved in day to day operations in business or Ms. Isha Ambani is involved in branding
and marketing. And the key people are Sanjay Mashruwalla (Managing Director), Jyotindra
Tacker (Head of IT).
IMPACT ON THE COMPETITION

If more than 50% of the existing subscribers choose to stick with Jio, it will have serious
repercussions for other telecom players. “Even Jio customers who retain plans from other
companies may reduce usage, impacting their ARPU,” says Ambani. It will become difficult
for Airtel, Vodafone, Idea, etc. to grow their user base as Jio aggressively adds customers at
their expense. Fall in subscribers is just one of the problems staring the other telecom players.
Another key challenge is fall in pricing power. “Due to aggressive pricing by Jio, pricing
power in the telecom sector has gone. Other telecom players have no option but to match,
follow what Reliance Jio is doing,” says Daljeet Kohli, Director and Head of Research, India
Nivesh Securities. If others don’t match Jio’s offers, their market share will go and, if they
cut prices, revenue will be hit. The fall in net profits will be more than the fall in revenues.

Despite the dangers, stock prices of other companies have not been negatively impacted
because of long-term prospects of a more consolidated telecom sector. “Since data
consumption is going to increase exponentially, everyone will benefit in the next 3-5 year
period,” say Joshi. Investors, however, should be cautious. “Since we don’t know how long
this madness will continue, it is better not to get into it now,” adds Kohli.

Airtel, however, is likely to survive this phase and can be a good buy for the long term.
“Airtel possesses the leanest cost structure and is improving its capital efficiency,” says
Pankaj Pandey, Head of Research, ICICI Direct. Its subscriber market share is expected to
29.1% and revenue market share to 33.3% due to its acquisition of Telenor.

CHAPTER-3 PESTEL
ANALYSIS
PESTEL analysis (political, economic, socio-cultural and technological) describes a
framework of macro-environmental factors used in the environmental scanning component of
strategic management. It is a strategic tool for understanding market growth or decline,
business position, potential and direction for operations. It’s a way of understanding how
external forces impact your business. PESTAL can help you identify significant changes in
the political, economic, social, and technological landscape. And these landscapes will affect
your business in the future. created by Harvard professor Francis Aguilar in 1967. It should
be included in every business plan, in addition to a SWOT analysis, as it is part of risk
management and strategy design.

Firms should track their political environment. Change in the political factor scan affect
business strategy. Government legislations, tax regulations come under these political factors.
Political stability and economic policy of the government are important factors in any
business. Economic factors are connected with goods, services, and money. Despite directly
affecting businesses, these variables refer to financial state of the economy on a greater level
whether that be local or global. The reason for this is that the state of the economy can decide
many of the important details that come up in an operating company, including topics such as
consumer demand, taxes and asset value. Socio-cultural factors of the country which it
operates should be taken into consideration for any business. Technology is a very important
factor. For a technology-driven business field, it is the most important. Existing technology
and possible upgradations should be closely watched. Politically, Jio is following the Prime
Minister’s vision of Digital India. Among many Jio apps, Jio Money facilitates customers to
pay or transfer money digitally. The company is supported by government as it falls in the
‘Make in India’ scheme that has been encouraged by the government. Economically, after the
demonetization Jio started giving out free data for a few months. This helped the company
attract more customers and increase GDP growth by 1.38% . Socially, Reliance Industries
spent more than Rs.750 crores in terms of Corporate Social

Responsibility (CSR). Jio offered free internet services to Indore Traffic Police and are
planning to offer their services to other cities. They are planning to provide free services at
government schools, and hospitals. Technologically, the VoLTE technology is the most
advanced technology in the country. This technology provides better call quality over its
competitors as voice calls are broken up into packets of information Environmentally, Jio has
installed safe and environment – friendly towers that do not emit electromagnetic radiation.

Political factors affecting Reliance

Jio TRAI frames the rules and regulations for telecom industries. The rapid growth of Jio
made the competitor to disturb the schemes and offers of Jio. The competitors appeal their
rights in TRAI. The TRAI came under sharp criticism from the rest of the telecom industry
for allowing RIL to test the connectivity of its network for253 days. The regulator also raised
eyebrows for eliminating data share from its definition of what constitutes ’significant market
power’ not long after Jio became India’s largest data provider. Predatory pricing is when an
operator with over 30percent market share in any circle drops prices in order to gain an upper
hand over other operators in that circle. TRAI regulations says being found guilty of
predatory pricing could lead to a penalty of up to Rs 50 lakh per circle. This prevents Jio
from further slashing prices. Jio has always tried to link the growth of Jio with the
government’s Digital India initiative. Favouritism from the part of government had always
been in the news. TRAI has also imposed fines on Jio for slipping on various service quality
benchmarks.

Digital India is an amalgamation of various projects, aimed at increasing connectivity in the


country. Promoted by government officials as an attempt to bridge the divide between
“digital haves and have-nots,” the initiative has been pitched as an ambitious modernising
measure. According to the Digital India website, its various projects are all unified by a three-
part vision: making online infrastructure available to every Indian, providing government
services on demand and the “digital empowerment of citizens.

Economic factors affecting Reliance Jio

In the current economic situation it is a very difficult task to run the business in the telecom
industry as already there is a large number of network operators but Jio is providing free
services with minimum charges to its service like call rate, minimum price of their products.
The people more economical in a developing country like India, where the pricing is focused.
The strategy has cashed in on that. Affordable smartphones has become popular in rural
areas.
Social factors affecting Reliance

Jio India has the largest population of youth in the country. Jio mainly focuses on millennials
who are active on various networking platforms and have made them addicted to data. Their
pricing schemes and advertising strategies mainly attract the Indian middle classes and youth.
There have been an overwhelming response from young people. People are in general
inclined cheaper and affordable options. The growth in subscriptions and data consumption
are all proof of Jio’s transformative social power. By offering service at almost no cost, and
at first for free, the company argues that Jio will ’democratise the digital culture in India.

Technological factors affecting Reliance jio

The advanced 4G technology has been adopted by Jio at a cheaper rate. They are the leader in
the 4G market. This is supported by Voice over LTE which make sit scalable and supportive
of 5G and 6 G technologies which are expected to be the future in wireless communication.
Technology upgradations are fast and capital intensive. Telecom sector is witnessing 5G and
6G upgradations.

Environmental factors affecting Reliance jio

India having the number of auctions for airwave networks and connections there are
maximum number of spectrum bands currently available in India. As of 2015, India is the
only country to have both strong telecom services along with the lowest spectrum bands
(Mint Research, 2015). Reliance being the parent company of Jio which is into Telecom
sector providing 4G network services and 100% VoLTE (Voice Over Long Term Evolution)
Bhawar 2017services. The company has invested Rs. 1,50,000 Crore (Reuters,2017) in the
telecom sector. Initially, Jio provided free 4G internet services and free voice calls for a
period of one year (Jio,2017) to its subscribers and currently they have overpowered the
market by providing data and voice call services at low prices as compared to the
competitors. Jio was officially introduced on 5th September 2016 (Raghavendra Holla, 2017)
in India whereas the company distributed trial packs to its existing employees on 27th
December 2015.

Legal Factors affecting Reliance jio

At one level, industry officials point out that the regulatory dilemmas that Jio’s entry strategy
posed are an indictment of the lobbying capabilities of Airtel’s boss Sunil Mittal.

“Jio dragged and delayed its entry for years. That was more than enough time for Mittal to
get the regulatory house in order. Its true there were several decisions that blindsided the
industry like the surprising IUC revision. However, Reliance simply won the game of
regulatory arbitrage,” a senior executive of a large telecom firm told The Wire. At another
other level, however, India’s telecom department and regulatory authorities unnecessarily
dithered when they could have acted. As future regulatory decisions are taken and orders are
pronounced – not only by TRAI and DoT, but also the Telecom Disputes Settlement
Appellate Tribunal and the Competition Commission of India – it will become clearer as
what steps should have been taken over the last two years.

CHAPTER-4 SWOT
ANALYSIS
Strengths of Reliance Jio

Strengths are defined as what each business does best in its gamut of operation swhich can
give it an upper hand over its competitors. They are internal attributes and resources that
support a successful outcome and can be used for competitive advantage. The following are
the strengths of Reliance Jio:

•Strongest Customer Acquisition strategy – Reliance Jio probably has the best customer
acquisition strategy till date. The brand offered their services.. This resulted in millions of
users using Reliance Jio and resulted in one of the best customer acquisition strategy in the
history of telecom.

•Strong backing by parent company-Jio is a subsidiary of Reliance Indus-tries Limited which


is high on its finance and can act as a backup for innovative future ventures. Reliance is a
popular brand with a pan-Indian presence andhras high trust amongst customers. •Innovative
technology-Jio currently uses the latest 4G LTE technology which is one of the world’s best
technologies for the future. This is supported by Voice over LTE which makes it scalable and
supportive of 5G and 6G technologies which are expected to be the future in wireless
communication.

•Strong customer base-Jio boasts of a whopping 100 million subscribers in the first 170 days
of its launch a record which no other provider has been able to register. This has also made
Reliance Jio India’s largest Internet Service provider.
•Market share-First mover advantage in making data cost more affordable. Forced other
operators to slash charges by winning a huge market share.

•Brand management and advertising strategies-The reason for the huge customer base of
Reliance Jio is the brand management strategies that it has adopted. Most of the advertising
campaigns are lively and are targeted at millennials which proved a winning strategy. The
right promotion backed by lucrative offers and credible brand ambassadors like Shah Rukh
Khan and Amitabh Bachchan have helped in building connectivity with the customers.

•Fast and wide network-Reliance Jio has a presence in all 22 telecom circles in India and is
known to be a robust and fast network with fewer connectivity issues.

•Multiple offerings under a single name-Reliance Jio offers a variety of services like movies,
games, shopping, chats, and messenger etc. giving the customer a lot of options to choose
from.

•LYF Smartphones-Affordable smartphones will make the brand more popular among the
masses, even in rural areas and pave way for future growth. It would also boost the brand
Reliance Jio.

Weaknesses of Reliance Jio

Weaknesses are internal attributes and resources that work against a successful outcome. It is
used to refer to areas where the business or the organisation needs improvement.

•Late entry into the market-Reliance Jio has made a late foray into the market which already
had established players like Airtel and Vodafone who had occupied a place in the minds of
the customer. It would be challenging to increase market share significantly since the
competitors are strong MNC’s where cash wouldn’t be a barrier to keep Jio at check.

•Activation Issues-Reliance Jio faced numerous gestation issues owing to not being able to
contain the huge volumes of customers it had acquired. On such was delays in SIM Card
activation during the period that followed its launch.

•High dependency on data- Reliance Jio is highly dependent on data charges since call
charges are free.

•Pricing Controversies - Reliance Jio was criticised for having lowered its prices beyond what
was ethical to penetrate into the market and this stirred allegations like corruption and money
laundering against them.
•Too many freebies-Reliance Jio currently offers many services for free and this was one
reason for share increase in sales. However, the company may not be able to afford all of
them in the long run which may affect the business negatively.

•Poor data connection-The data connection is many times poor from Reliance Jio and the
range is less, causing slower loading speeds in selected regions.

•The ad campaign of Reliance Jio showing the PM was controversial-Jio used the photograph
of the Prime Minister in their full page advertise-ments contravening the ‘prior permission’
stipulated under the Emblems and Names (Prevention of Improper Use) Act of 1950, which
bars use of Prime Minister’s name and picture for commercial use. They have apologised for
their “inadvertent mistake”

•Issues in calls- There were several issues with calls from and to jio sims and lyf
smartphones. This had influenced customers to consider other service providers as more
reliable.

•Will not support 3G- 3G was in common use during the launch of Reliance Jio. It did not
support 3G.

Opportunities of Reliance Jio

Opportunities are classified as external elements that the entity can capitalise on or use to its
advantage to achieve its goals. These arise when an organisation can take benefit of
conditions in its environment to plan and execute strategies that enable it to become more
profitable.

•Future driven technology -Reliance Jio uses VoLTE 4G network which is scalable to
accommodate 5G and 6G technologies. This offers numerous avenues to Jio or future
expansion of bandwidth.

•Apps- Reliance Jio has VoLTE which has a lot of scope in terms of band-width. Thus they
can offer apps to customers which are chargeable or even free initially and pay per use later.

•Competitive Pricing Strategies-Reliance Jio prides itself on being a low-cost Internet service
provider and mobile operator. This can be used as a positioning to target more markets and
grow their market share since most of their competitors’ cannot afford their prices.

•Expansion to other countries- Currently Reliance Jio is operational only in India. There is,
however, a lot of scope for expansion to foreign countries. at least in the neighbouring
regions.

•Data for billion people-The core opportunity is data and speed of data. Millennials are
hugely involved in various platforms. The government push for digitisation is making data a
necessity rather than privilege.
•Smartphones- Smartphones are becoming hugely popular. Affordable smart-phones are a
huge opportunity for boosting the brand.

•Focus on customer service and MNP-More focus on customer-based services and Mobile
Number Portability can increase the inflow of new customers and persuade customers to
prefer Jio over other operators.

•Partnerships and collaborations-Partnering with digital entrepreneurs accelerate their growth


but also give them opportunity to form strategic partnership.

•Focus on 3G customers also-Now, Jio benefits 4G users only, so they have opportunity to
concentrate on 3G users also to increase the number of customers.

•Television-Opportunities in related segments like television can be thought.

Threats of Reliance Jio

Threats arise when conditions in external environment jeopardise the reliability and
profitability of the organisation’s business. These external factors could gravely affect the
success of the business venture.

•Risk of loss of customers-Customers prefer Jio primarily because of the low prices that they
offer. At a stage when the company increases its price there may be a loss of customers.
Customer loyalty is a challenge.

•Removal of free services-Jio currently is associated with a lot of freebies. Once these are
removed there may be a drop in sales for the companies.

•Loyal customer base of existing players- The existing competitors have a strong presence in
the market. A late entrant like Jio will have a challenge in convincing loyal customers of
other operators since people prefer more stable and reliable operators.

•Criticism and negative image -Reliance Jio has been embroiled in a lot of controversies from
the time it was started. These have resulted in a negative brand image for the company

.•Poor Code of ethics -Many of the strategies adopted by Reliance Jio such as the low pricing,
free bandwidth and market penetration strategies have been showcased as unethical and this
may affect the goodwill of the business in the long run.

•Technology-Technology is always a threat for any technology-driven business field.


Technology upgradations are fast and capital intensive. Telecom sector is witnessing 5G and
6G upgradations. Pricing advantage is not a long lasting strategy.

•Government policies-Predatory pricing is when an operator with over 30percent market


share in any circle drops prices in order to gain an upper handover other operators in that
circle. TRAI regulations says being found guilty of predatory pricing could lead to a penalty
of up to Rs 50 lakh per circle. This prevents Jio from further slashing prices.
•Mergers and collaborations of competitors-The biggest telecom merger between Vodafone
India and Idea Cellular happened after the launch of Jio. Airtel and Vodafone-Idea are likely
to team up in the optical fibre space. There are also reports suggesting that Airtel &
Vodafone-Idea may join forces, create a new company to fight Reliance Jio.

FUTURE ASPECT OF JIO

Reliance jio’s vision for India is that broadband and digital services will no longer be a
luxury item ,Rather convert it into a basic necessity that can be consumed in abundance by
consumers and small businesses .The initiatives are truly aligned with the Government of
India's ‘Digital India’ vision for our nation.

• Digital Healthcare

• Affordable Devices

• Jio Drive

• Digital Education

• Digital Currency

• Digital Entertainment and social connectivity

After disrupting the industry with its free services, Reliance Jio has kept up the pressure with
its competitive data tariff plans, starting 1 April 2017. Jio has also made all voice calls—
local, STD and roaming—free. The stock market has rewarded Reliance for its aggressive
entry into the telecom sector, and the RIL counter has jumped more than 13% in a week.

Reliance Jio’s subscriber base has crossed 10 crore. The question now is: How many of these
subscribers will become paying customers? Most analysts put the number around five crore.
“Our base case scenario is that 50% of subscribers will stay,” says Mayuresh Joshi, Fund
Manager, Angel Broking. Some experts say the number could be higher. “Since Jio is
offering much higher data, retention rates could be more than 50%,” says Amar Ambani,
Head of Research, IIFL.

Reliance Jio’s average revenue per user (ARPU) may be higher than the industry average of
around Rs 150. “We are factoring in an average APRU of Rs 227 for 2018-19, assuming
around 53% of Reliance JIO’s subscribers will be on the Rs 303 Jio Prime plan, while the rest
will be on the lowest-priced plan of Rs 149 per month,” says Jal Irani, Analyst, Edelweiss
Financial Services. At an ARPU of Rs 227, Jio will need 11.1 crore customers to break even
in 2018-19. If the competition intensifies, Jio will be forced to reduce prices further which
will eat into its ARPU. In such a scenario, it will require a much larger customer base to
break even (see: How Jio may impact RIL’s profits in 2018-19).
io’s successful launch has removed the capital requirement pressure on RIL. In fact, capital
expenditure (capex) on Jio as a percentage of RIL’s overall capex, has come down drastically
and will continue to fall. While Jio accounted for 96% of RIL’s capex in 2014-15, for 2016-
17, this will be just 11%. With several refining and petrochemical projects nearing
completion, RIL’s capex on its core business will also fall. The company is also benefitting
from the recent surge in crude oil prices and it should help RIL increase its gross refining and
petrochemical margins.

Given the positives, should you consider investing in RIL, despite the recent rally? Experts
say existing investors can hold the RIL stock because there’s a possibility of a further upside.
“Since RIL is emerging from a multi-year under-performance, the upside movement may
continue for some more time. Expect another 12-15% upside from the current level, which
will help Reliance overtake TCS in terms of market cap in the medium term,” says Ambani.

CHAPTER-5 FINDINS
Jio is the fastest growing network in INDIA. From the time of its launch till today it is
growing. It make the competition between service providers tough and more genuine. As
previously, all the rates of any company were high but after jio they are forced to decrease the
rates. As per my view jio give them a better competition in the field of calling and internet
usages. It used the better marketing strategy as well as good product placement. It succeeded
to built a surprise in the customer mind. But now jio is facing the problem of connectivity
because now it is having the huge load of customers.so they have to work on the towers as
well as the reachness in the market

Below are some of major findings, I came across during my survey.

 While conducting the survey, I found out that 85% respondents are satisfied with Reliance
JIO services and 15% of respondents are not satisfied. The reason being they are still facing
problems of call drops and low network, some of them did say that after April 1st they might
consider using it.

 Reliance JIO has successfully captured its market in Kadi areas well.

 Most of the users are using dual sim phones and hence they are using it as a secondary
service as they do not want to change their old numbers

 Customers are satisfied the 4G unlimited services as comparison to others services.

 Reliance JIO is expected to grow bigger thereby taking over Bharti Airtel which currently
has a 33.1% of market share whereas the latter is looking to gain over 50%
 Reliance JIO Wifi router which is highly appreciated by the users

 The competition among other mobiles Samsung, Redmi, Apple are high. LYF handsets
are used as a secondary phone by some users.

 36.66% people are use Idea and JIO service connection in their smart phone and 30%
people are se Airtel and JIO services connection in their smart phone and 20% people are use
Vodafone and JIO in their smart phone and remaining are use JIO and other cellular network
in their phone.

 36.66% people are select network service as per calling charge and tariff plan
availability and 23.33% people are select network service by offers and schemes offered by
companies.

 35% respondent were used idea network connection for data uses and for calling and
26.66% people were use Airtel network connection for data uses and for calling.

 41% respondent said that all the basic factor, i.e. free data, free calling and easy
availability was attract them towards JIO network connection service.

 48.33% respondent said that they use their current service provider mainly for data or
for internet purpose and 35% respondent said that they use their current service connection
mainly for dialing local call.

 68.33% respondent prefer JIO as a secondary network connection and remaining


31.67% prefer JIO as a primary network connection.

 65% said that they were stop recharging on their primary or other network connection
after start using JIO network

 86.67% respondent are satisfied with the JIO network providers and remaining
13.33% people are not satisfied with the JIO network.

 53.33% people said that they are recommend to other about JIO network and 31.67%
people said that may be they recommend to others .

 40% respondent said that may be they will come back to their older service providers
and 38.33% respondent said that they will not come to their previous network connection.

CHAPTER-6
RECOMMENDATIONS
It is found from the study that the majority of the respondents have given top preference to
JIO as a secondary network connection. Hence it is suggested that the other service providers
(IDEA Airtel, BSNL, Vodafone, Tata, and Aircel) have to focus on improving their service
quality, responsiveness, attractive offers, customer care service and impactful advertisement
in order to widen their subscriber’s base and capture more customers and market share.

It is found from the study that the majority of the respondents have given top preference to
the service quality. Service quality of the network plays a vital role. Hence it is suggested that
the operators have to maintain proper service quality in the call connectivity, Fulfilling their
expectation, value added service offered by them including mobile data, caller tune, dry run,
playback etc. Especially special attention must be given for providing on time customer care
connectivity which may save customer time and able to process their request by the service
providers on a need basis.

CHAPTER-7 REFERENCES
BOOKS

• Bernard J. T. Mallinder. Specification Methodology Applied to the GSM System. In


Eurocon

88, June 2005.

• Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal Communication

Services. IEEE Personal Communications. 1(1), 1994.

• Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE

Communications Magazine. April 1993.

• C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors,
Cellular

Radio Systems, Artech House, Boston, 1993.

• Robert G. Winch. Telecommunication Transmission Systems. McGrawHill New York,


1993

JOURNALS:

1. T.N.R.Kavitha & S.Durai Murugan, “A Study on Customer Satisfaction towards Vodafone

Sim Card Special Reference In Madurai City”, IOSR Journal of Business and Management,
Pp 29 – 32.

2. Dinesh Kumar Pandiya, Brajesh Kumar & Mazahidul Haque Choudhury, “A Study of

Customer satisfaction on Telecom Service Providers”, Indian Journal of Research, Volume

3, Issue 5, May 2014, Pp 57 – 60.

3. Debarun Chakraborty, “Customer Satisfaction And Expectation Towards Aircel: A

Research Conducted In West Midnapore”, International Monthly Refereed Journal of

Research In Management & Technology, Volume II, January 2013, Pp 114 – 127

Web Resources :

www.google.com

www.wikipedia.com

www.hindubusinessline.com

www.trai.gov.in

www,jio.com

www.moneycontrol.com

www.vodafone.in

www.airtel.in

www.rcom.co.in

www.bsnl.co.in

www.tatateleservices.com

www.ideacellular.com

www.mtsgsm.com

www.virgin.com

www.wirelessintelligence.com

EXECUTIVE SUMMARY
The Indian mobile telephony market has grown at a rapid speed in the last decade. Declining
the call tariffs and favorable regulatory policies have led to a tremendous increase in the
subscribers’ base. Proper identification of the Customer preferences will facilitate the
favorableness towards the various mobile service providers. Continuous research on
consumers will enhance the customer satisfaction. The present research focuses on the
analytical study of launch of JIO sim on other competitor in West Nagpur city.

The study has been carried out to find out the most preferred mobile network service provider
and the factors influencing to use the particular mobile network service. The results revealed
that JIO network connection the most preferred mobile network service providers after launch
in the market. Service quality, Value added services and customer care service are the most
influencing factors in the selection of a particular mobile network service provider. If these
suggestions are considered by the respective mobile network service providers and it would
certainly help to improve the service quality of the mobile network service providers and also
it improves the level of satisfaction of the mobile network users.

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