Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
GREATER NOIDA
Submitted by Submitted to
BHAVYA BHARTI Dr. Parul Yadav
Roll No. GM19O49 (Assistant Professor)
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GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH
GREATER NOIDA
CERTIFICATE
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TABLE OF CONTENT
2. Competitor Analysis
3. About Airtel
4. SWOT
5. Marketing Analysis
6. International Business
7. Findings
8. Recommendations
9. References
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CHAPTER 1
RELIANCE JIO
TELECOM INDUSTRY
ABOUT INDUSTRY
India is the world's second-largest telecommunications market, with around 1,186.63 million
telephone subscriber bases at the end of June 2019. The telecom market can be split into three
segments – wireless, wireline and internet services. The wireless market segment comprises of
98.2 per cent of the total subscriber base, as of June 2019 compared to 95.90 per cent in FY11.
As of May 2019, rural subscribers form 42.9 per cent of total telephone subscribers and in April
2019 43.33 per cent, compared to 33.35 per cent in FY11.
India is also the second largest country in terms of internet subscribers. As of 2019, India holds
the world’s highest data usage per smartphone at an average of 9.8 GB per month. It is expected
to double to 18 GB by 2024. The number of internet subscribers in the country increased at a
CAGR of 41.58 per cent during FY06-FY18 to reach 636.73 million in 2018-19. India became
the world’s fastest-growing market for mobile applications in the first quarter of 2018 and
remained as the world’s fastest growing market for Google Play downloads in the second and
third quarter of 2018. The internet user base in India has crossed 500 million mark and is likely
to reach 627 million by end 2019. Total wireless data usage in India grew 119 per cent year-
on-year to 1,58,50,560 terabytes between January-March 2019.
Gross revenue of the telecom sector stood at Rs 2,37,416.6 crore (US$ 33.97 billion) in 2018-
19.
Strong policy support from the government has been crucial to the sector’s development.
Foreign Direct Investment (FDI) cap in the telecom sector has been increased to 100 per cent
from 74 per cent. FDI inflows into the telecom sector during April 2000 – March 2019 totalled
to Rs 2.29 lakh crore (US$ 32.82 billion). As of January 2019, expenditure on telecom
infrastructure and services by Government of India grew six-fold to Rs 60,000 crore (US$ 8.31
billion) between 2014-19.
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History of Telecommunication Industry
The history of telecommunication industry started with the first public demonstration of
Morse’s electric telegraph, Baltimore to Washington in 1844. In 1876 Alexander Graham Bell
filed his patent application and the first telephone patent was issued to him on 7th of March.
In 1913, telegraph was popular way of communication. AT&T commits to dispose its telegraph
stocks and agreed to provide long distance connection to independence telephone system.
In 1956, the final judgment limited the Bell System to Common Carrier Communications and
Government projects but preserving the long-standing relationships between the
manufacturing, researches and operating arms of the Bell System. In this judgment AT&T
retained bell laboratories and Western Electric Company. This final judgment brought to a
close the justice departments seven -year-old antitrust suit against AT&T and Western Electric
which sought separation of the Bell Systems Manufacturing from its operating and research
functions. AT&T was still controlling the telecommunication industry.
Global Scenario
World telecom industry is an uprising industry, proceeding towards a goal of achieving two
third of the world’s telecom connections. Over the past few years information and
communications technology has changed in a dramatic manner and as a result of that world
telecom industry is going to be a booming industry. Substantial economic growth and mounting
population enable the rapid growth of this industry.
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world products and is aiming at attaining more revenues. One statistical report reveals that
approximately 16.9% of the world population has access to the Internet.
A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S) or
weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats
(T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm’s resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection.
Strengths
Here we will analyze the strengths of the telecom industry as a whole. The most important
factors are:
Technology is advanced and easy to implement: For telecom industry the technology is really
advanced and more and more investment is done on technology to get world.
Weakness
High Cost of Infrastructure: The infrastructure cost of telecom industry is very high.
Low customer retention power: The customer retention power for telecom industry is really
low and the customer changes their service provider company very soon.
Opportunity
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Changing Population psychograph: Population psychograph is also changing. Previously
telecom service was thought as an emergency service, now it has become an essential part of
life in our country.
Increased Penetration Level: All the organizations of the industry are trying to increase their
penetration level, in other word to increase the tele-density of the country. The urban Indian
population gives a real growth prospect to the industry.
FDI: The foreign direct investment in telecom has been hiked up from 49% to 74%. This move
is positive for the sector, as it requires investments of Rs 700 – 900 million over the next 5
years. FDI inflow by 2004 was 9950.94 cores in telecom. Countries like Europe, Korea, and
Japan telecom are likely to enter India, as India is seen as fastest growing telecom market in
world.
Threats
Government Policies – Government may provide licenses to many foreign operators, which
may already have pose a threat for the existing players in the industry.
New Technology can change the market dynamics: A lot of new technologies are coming. Then
even have the potential of changing the entire industry dynamics or even create substitute of
the telecom services existing.
The Top five companies, on the basis of ‘Market Share’ as on 31st January, 2010are:
4. BSNL
5. Telenor
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RELIANCE JIO
Reliance Jio Infocomm Limited, d/b/a Jio, is an Indian telecommunications company and
wholly owned subsidiary of Reliance Industries, headquartered
in Mumbai, Maharashtra, India. It operates a national LTE network with coverage across all
22 telecom circles. It does not offer 2G or 3G service, and instead uses only voice over LTE to
provide voice service on its 4G network.
Jio soft launched on 27 December 2015 with a beta for partners and employees, and became
publicly available on 5 September 2016. As of 30 September 2019, it is the largest mobile
network operator in India and the third largest mobile network operator in the world with over
355.17 million subscribers. It is also the Fourth largest provider of fixed telephony in Country.
In September 2019, Jio launched a fiber to the home service, offering home broadband,
television, and telephone services.
HISTORY
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.[10] Later continuing as RIL's telecom subsidiary,
Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in
January 2013.[11]
In June 2015, Jio announced that it would start its operations throughout the country by the end
of 2015. However, four months later in October, the company postponed the launch to the first
quarter of the financial year 2016–2017.
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Later, in July 2015, 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 the firm was being 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, 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.
The 4G services were launched internally on 27 December 2015. The company commercially
launched its 4G 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
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CHAPTER 2
COMPETITOR ANALYSIS
RELIANCE JIO
Below are the top Reliance Jio competitors:
Airtel
Bharti Airtel Limited is a leading global telecommunications company with operations in 18
countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks
amongst the top 3 mobile service providers globally in terms of subscribers. In India, the
company's product offerings include 2G, 3G and 4G
wireless services, mobile commerce, fixed line services,
high speed home broadband, DTH, enterprise services
including national & international long distance
services to carriers. In the rest of the geographies, it
offers 2G, 3G, 4G wireless services and mobile
commerce. Bharti Airtel had over 403 million
customers across its operations at the end of March
2019.
Idea Vodafone
Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s
leading telecom service provider. The Company provides pan India Voice and Data services
across 2G, 3G and 4G platform. With the large spectrum portfolio to support the growing
demand for data and voice, the company is committed to deliver delightful customer
experiences and contribute towards creating a truly ‘Digital India’ by enabling millions of
citizens to connect and build a better tomorrow. The Company is developing infrastructure to
introduce newer and smarter technologies, making both retail and enterprise customers future
ready with innovative offerings, conveniently accessible through an ecosystem of digital
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channels as well as extensive on-ground presence. The Company is listed on National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE) in India
MTNL
Mahanagar Telephone Nigam Limited, d/b/a MTNL, is
a state-owned telecommunications service provider and
wholly owned subsidiary of BSNL headquartered in New
Delhi, Delhi, India. MTNL Provides services in the metro
cities of Mumbai and New Delhi in India and in the island nation of Mauritius in Africa. The
company had a monopoly in Mumbai and New Delhi until 1992, when the telecom sector was
opened to other service providers. "Transparency makes us different" is the motto of the
company. The Government of India currently holds 57% stock in the company with the rest
being held by public and institutional investors. The company's shares are listed on Bombay
Stock Exchange, Global depository receipts on London Stock Exchange and American
depository receipts on New York Stock Exchange. As of January 2019, it has 6.71 million
subscribers
BSNL
Bharat Sanchar Nigam Limited, d/b/a BSNL is an
Indian state-owned telecommunications company,
headquartered in New Delhi, Delhi, India. It was
incorporated by Government of India on 1 October 2000.
It provides mobile voice and internet services through its
nationwide telecommunications network across India. It is
the largest provider of fixed telephony with more than
60% market share. It is the fourth largest wireless
telecommunications and largest wireline
telecommunications network company in India.
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Telenor
Telenor ASA is a Norwegian multinational telecommunications company
headquartered at Fornebu in Bærum, close to Oslo. It is one of the world's largest
mobile telecommunications companies with operations worldwide, focus
in Scandinavia, Eastern Europe and Asia. It has extensive broadband and TV
distribution operations in four Nordic
countries, and a 10-year-old research and
business line for Machine-to-
Machine technology. Telenor owns
networks in 13 countries, and has
operations in 29 countries (including
their 14.6% ownership of VEON).
Telenor is listed on the Oslo Stock Exchange and had a market capitalization in
November 2015 of kr 225 billion, making it the third largest company listed on the OSE
after DNB and Equinor (previously known as Statoil).
Aircel
Aircel Ltd. was an Indian mobile
network operator headquartered
in Mumbai that offered voice
and 2G and 3G data services. Maxis
Communications held a 74% stake and
Sindya Securities and Investments held
the remaining 26%.[5] Aircel was founded
by Chinnakannan Sivasankaran and
commenced operations in Tamil Nadu in 1999. It was once a market leader in Tamil
Nadu and had considerable presence in Odisha, Assam and North-East telecom
circles. 2G and 3G Services including voice were shut down in all circles due to failure
in merge with Reliance Communications.
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CHAPTER 3
Bharti Airtel Limited, also known as Airtel, is an Indian global telecommunications services
company based in Delhi, India. It operates in 18 countries across South Asia and Africa, and
also in the Channel Islands. Airtel provides GSM, 3G, 4G LTE, 4G+ mobile services, fixed
line broadband and voice services depending upon the country of operation. Airtel had also
rolled out its VoLTE technology across all Indian telecom circles.[8] It is the third largest
mobile network operator in India and the second largest mobile network operator in the
world with over 411.42 million subscribers.[5] [6] [7] Airtel was named India's 2nd most valuable
brand in the first ever Brandz ranking by Millward Brown and WPP plc.[9]
Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of low
cost and high volumes. The strategy has since been adopted by several operators.[10] Airtel's
equipment is provided and maintained by Ericsson, Huawei, and Nokia Networks[11] whereas
IT support is provided by Amdocs. The transmission towers are maintained by subsidiaries and
joint venture companies of Bharti including Bharti Infratel and Indus Towers in
India.[12] Ericsson agreed for the first time to be paid by the minute for installation and
maintenance of their equipment rather than being paid up front, which allowed Airtel to provide
low call rates of ₹1 (1.4¢ US)/minute.[13]
As of 2019, AirTel is listed as the world's 8th worst Internet Service Provider for unsolicited
bulk email (spam) distribution. This is a result of a failure to maintain any abuse reporting
email address or system. [14]
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Airtel India is the third largest provider after Jio Communications and Vodafone Idea Ltd
of mobile telephony and second largest provider of fixed telephony in India, and is also a
provider of broadband and subscription television services. It offers its telecom services under
the airtel brand, and is headed by Sunil Bharti Mittal.
o MISSION
o VISION
o VALUE
We aim to work towards our vision, driven by our values of AIR - Alive, Inclusive &
Respectful.
o TAGLINE
'Sab Kuch Try Karo, Fir Sahi Chuno” meaning “Try all, then choose the best.”
o LOGO
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KEY STAFF MEMBER OF AIRTEL (Management)
Name Designation
o TURNOVER
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SWOT OF AIRTEL
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Opportunities in the SWOT analysis of Airtel
1. Strategic Partnership: Partnering with smart phone companies is going to be a
smart strategy as far as MNP (mobile number portability in India) is concerned. This will
ensure fixed cash flows in the future and a higher customer base.
2. Market Development: With fierce competition in the telecom industry & shrinking
margins, venturing out in new markets/developing economies will prove fruitful for the
company.
3. VAS: VAS (Value Added services) is going to future of the telecommunication industry
& by specializing itself in this vertical Airtel can differentiate itself in highly competitive
market. With introduction of unique services, Airtel can avail higher margins.
4. Untapped geography of the current market: Although it is currently providing 3G &
4G services, but these services are limited to specific geographical locations. Expansion
of these services to most of its regions will help the company get more margins and
customers.
5. LTE: The whole wireless world is moving towards LTE (long term evolution or 4G).
LTE for mobile broadband can be a good solution for India where fixed broadband
penetration is otherwise low. Airtel has taken the lead with this version of LTE in 4 cities,
but deployment needs to catch up pace. Despite a weak LTE ecosystem in India, Airtel
should portray itself as the embracer of that technology. The company lacks nationwide
3G license with spectrum in 13 out of 22 telecom service areas. Airtel’s LTE network
for mobile broadband is still confined to only 4 cities in India.
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BACKGROUND INFORMATION ABOUT AIRTEL
AIRTEL
Type Public
NSE: BHARTIARTL
BSE SENSEX
Constituent
ISIN INE397D01024
Industry Telecommunications
Revenue ₹807,802
million (US$12 billion) (2019)[2]
Operating ₹−17,318
income million (US$−250 million)
(2019)[2]
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PRODUCT AND SERVICES OF AIRTEL
Airtel India is the third largest provider after Jio Communications and Vodafone Idea Ltd
of mobile telephony and second largest provider of fixed telephony in India, and is also a
provider of broadband and subscription television services. It offers its telecom services under
the airtel brand, and is headed by Sunil Bharti Mittal.
Tele media
Under the Tele media segment, Airtel provides broadband internet access through DSL internet
leased lines and MPLS (multiprotocol label switching)
as well as IPTV and fixed line telephone services. Until 18 September 2004, Bharti provided
fixed line telephony and broadband services under the Touchtel brand. Bharti now provides all
telecom services including fixed line services under the common brand airtel. As of june 2019,
Airtel provides Tele media services; in 99 cities. As on 30 june 2019, Airtel had 2.342 million
broadband subscribers.
Airtel Broadband provides broadband and IPTV services. Airtel provides both capped as well
as unlimited download plans. However, Airtel's unlimited plans are subject to free usage policy
(FUP), which reduces speed after the customer crosses a certain data usage limit. In most of
the plans, Airtel provides only 64KByte/second beyond FUP which is equal to other
competitors tariffs. The maximum speed available for home users under the new V-Fiber
program is upto 300mbps and with DSL is 16Mbit/s.
In May 2012, Airtel Broadband and some other Indian ISPs temporarily blocked file sharing
websites such as vimeo.com, megavideo.com, and thepiratebay.se, without giving any legal
information to customers.
Digital television
The Digital television business provides Direct-to-Home (DTH) TV services across India
under the brand name Airtel digital TV. It started services on 9 October 2008 and had about
16.027 million customers at the end of June 2019.
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operating system; and application services that shorten the queues at the billing section, off-
load the pressure on the billing staff and bring convenience to the user.
Business
Airtel Business] consists largely of six products: cloud and managed services, digital signage,
NLD/ILD connectivity (VSAT/ MPLS/ IPLC
and Ethernet products), Wi-Fi dongles,voice
solutions[ (like toll free numbers, TracMate,
and automated media reading) and
conferencing solutions (VoIP, audio, video,
and web conferencing) serving Industry
verticals like BFSI, IT/ITeS, manufacturing,
hospitality and government.
Airtel Business, the B2B arm of Bharti Airtel, has rolled out a first of its kind dedicated digital
platform to serve the growing connectivity, communication and collaboration requirements of
emerging businesses, including SMEs and startups. The digital platform will offer solutions to
emerging enterprises to enable ease of business and faster time to market.
Android-based tablet
Beetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18 August 2011, launched
a ₹9,999 (US$140) 7-inch tablet in India based on Google Inc.'s Android operating system.
The offering is intended to capitalise on the expected demand for cheap computing devices in
the world's fastest-growing and second-largest mobile phone market.
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o RECENT ACQUSITION OF AIRTEL
Airtel's proposed acquisition of consumer mobile business of Tata Teleservices and Tata
Docomo has got DoT's nod for further approval according to CCI. The Department of Telecom
(DoT) has given approval for the merger of Tata Teleservices (TTSL) with Bharti Airtel,
subject to the condition that the Bharti Airtel firm furnishes Rs 7,200 crore worth bank
guarantee. On November 2017, Tata Teleservices mobile customers had started transitioning
to the Airtel's network.
On July 1st 2019, The consumer mobile business of Tata Teleservices has become part of
telecom operator Bharti Airtel.
Airtel will absorb the Tata Sons-owned telco’s consumer mobile operations in 19 circles across
India — 17 under Tata Teleservices and two under Tata Teleservices (Maharashtra) Ltd. As
part of the proposed agreement, Airtel will also take over a small portion of the unpaid spectrum
liability of Tata Teleservices. The Bharti Airtel will get an additional 178.5 MHz of spectrum
in three bands—1800 MHz, 2100 MHz and 850 MHz—that are widely used for 4G, an area
where Airtel is expanding fast to keep pace with Reliance Jio Infocomm. Airtel will also add
about 13 million of Tata Tele’s mobile subscribers as of April 2019 to its nearly 322 million
users. But most of Tata Tele’s mobile users are inactive, as per the regulator.
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o PESTEL ANALYSIS OF AIRTEL
Political Factors
The level of political stability that the country has in recent years.
The integrity of the politicians and their likelihood to take part in acts of corruption, as
the resulting repercussions may lead to possible impeachments or resignations of high
level government employees.
The laws that the country enforces, especially with regards to business, such as contract
law, as they dictate what Airtel is and is not allowed to do. Some countries, for example,
prohibit alcohol or have certain conditions that must be fulfilled, while some
government systems have inefficient amounts of red tape that discourage business.
The trade barriers that the host country has would protect Airtel; however, trade barriers
that countries with potential trade partners would harm companies by preventing
potential exports.
A high level of taxation would demotivate companies like Airtel from maximizing their
profits.
The risk of military invasion by hostile countries may cause divestment from ventures.
A low minimum wage would mean higher profits and, thus, higher chances of survival
for Airtel
Economic Factors
The economic factors that Airtel may be sensitive to, and in turn should consider before
investing may include the following:
The economic system that is currently operational in the sector in question- whether it
is a monopoly, an oligopoly, or something similar to a perfect competition economic
system.
The rate of GDP growth in the country will affect how fast Airtel is expected to grow
in the near future.
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The interest rates in the country would affect how much individuals are willing to
borrow and invest. Higher rates would result in greater investments that would mean
more growth for Airtel
The exchange rate of the country Airtel operates in would impact the profitability of
Airtel, particularly if Airtel engages in international trade. The stability of the currency
is also important- an unstable currency discourages international investors.
Social Factors
The social factors that affect Airtel and should be included in the social aspect of the PESTEL
analysis include the following:
The demographics of the population, meaning their respective ages and genders, vastly
impact whether or not a certain product may be marketed to them. Makeup is mostly
catered to women, so targeting a majority male population would be less population
than targeting a population that is mostly female.
The class distribution among the population is of paramount importance: Airtel would
be unable to promote a premium product to the general public if the majority of the
population was a lower class; rather, they would have to rely on very niche marketing.
To some extent, the differences in educational background between the marketers and
the target market may make it difficult to relate to and draw in the target market
effectively. Airtel should be very careful not to lose the connection to the target market's
interests and priorities.
Airtel needs to be fully aware of what level of health standards, reactions to harassment
claims and importance of environmental protection prevail in the industry as a whole,
and thus are expected from any company as they are seen as the norm.
Technological Factors
The technological factors that may influence Airtel may include the following:
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the level of urgency required to adequately respond to the innovation, either by
matching the technology or finding an innovative alternative.
How easy, and thus quickly, will the technology be diffused to other firms in the
industry, leading to other firms copying the technological processes/ features of Airtel
How much an improvement of technology would improve/ transform what the product
initially offers. If this improvement is drastic, then other firms in the industry suffer
more heavily.
The impact of the technology on the costs that most companies in the industry are
subject to have the potential to increase or reduce the resulting profits greatly. If these
profits are great in number, they may be reinvested into the research and development
department, where future technological innovations would further raise the level of
profits, and so on, ensuring sustainable profits over a long period of time.
Environmental Factors
The environmental factors that may significantly impact Airtel include:
The current weather conditions may significantly impact the ability of Airtel to manage
the transportation of both the resources and the finished product. This, in turn, would
affect the delivery dates of the final product in the case of, say, an unexpected monsoon.
Climate change would also render some products useless. For example, in the case of
textiles, in countries where the winter has become very mild due to Global Warming,
warm winter clothes have much less of a market.
Those companies that produce extremely large amounts of waste may be required by
law to manage their environmental habits. This may include pollution fines and quotas,
which may place a financial strain on Airtel
If Airtel should (knowingly or unknowingly) contribute to the further endangerment of
an already endangered species may face not only the consequences from the law but
also face a backlash from the general public who may then boycott Airtel in retaliation.
While relying, in any percentage, on renewable energy may be expensive, it often
receives support not only from the government but also from its customer base, who
may be willing to pay a premium price for the products that Airtel may produce.
Legal Factors
The legal factors that deserve consideration include the following:
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Intellectual property laws and other data protection laws are, as mentioned earlier, in
place to protect the ideas and patents of companies who are only profiting because of
that information. If there is a likelihood that the data is stolen, then Airtel will lose its
competitive edge and have a high chance of failure.
Discrimination laws are placed by the government to protect the employees and ensure
that everyone in Airtel is treated fairly and given the same opportunities, regardless of
gender, age, disability, ethnicity, religion or sexual orientation.
Health and safety laws were created after witnessing the horrible conditions that
employees were forced to work in during and directly after the industrial revolution.
Implementing the proper regulations may be expensive, but Airtel has to engage in it,
not only due to the law but also out of Airtel's personal feeling of ethical and social
responsibility to other human beings.
Laws are also placed to ensure a certain level of quality or reasonable price for certain
products to keep the customer safe and prevent them for being provided. The industries
this applies to find often their costs elevated.
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CHAPTER 4
MARKET ANALYSIS
RELIANCE JIO
A. PRODUCT INFORMATION
Mobile 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.
JioFiber
In August 2018, Jio began to test a new triple play fiber to the home service known tenatively
as Jio GigaFiber, including broadband internet with speeds ranging from 100 Mbps to 1 Gbps,
as well as television and landline telephone services.
In August 2019, it was announced that the service would officially launch on 5 September 2019
as JioFiber, in honour of the company's third anniversary. Jio also announced plans to offer
streaming of films still in theatres ("First Day First Show") to eligible JioFiber subscribers.
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.
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Devices
Jio has also marketed co-branded mobile phones.
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
Flame 1.
Jio Phone
Jio Phone is a line of feature phones marketed by Jio. The
first model, released in August 2017 (with public pre-
orders beginning 24 August 2017), was positioned as an
"affordable" LTE-compatible feature phone. It runs
the KaiOS platform (derived from the defunct Firefox
OS), and includes a 2.4-inch display, a dual-core
processor, 4 GB of internal storage, near-field
communication support, a suite of Jio-branded apps
(including the voice assistant HelloJio), and a Jio-
branded application store. It also supports a "TV cable"
accessory for output to an external display.
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In July 2018, the company unveiled the JioPhone 2, an updated model in a keyboard bar form
factor with a QWERTY keyboard and horizontal display. Jio also announced
that Facebook, WhatsApp, and YouTube apps would become available for the two phones.
Jionet WiFi
Prior to its pan-India launch of 4G data and telephony services, the firm has started providing
free Wi-Fi hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat,
and Visakhapatnam in Andhra Pradesh,[52] Indore, Jabalpur, Dewas and Ujjain in Madhya
Pradesh, select locations of Mumbai in Maharashtra, Kolkata in West
Bengal,[55] Lucknow in Uttar Pradesh,[56] Bhubaneswar in Odisha, Mussoorie in Uttarakhand,
Collectorate's Office in Meerut,[59] 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. .[61]
Jio apps
Jio sim card pouch as distributed by Reliance Jio Infocomm
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Jio Security - security app
Jio4GVoice (earlier, Jio Join) - VoLTE phone simulator
My Jio - 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
launch in 2017.
1. Jio GigaFiber
Jio Fiber would be the seamless broadband experience with ultra-fast upload and download
speeds. It has Fiber To The Home (FTTH) technology in which the fiber cables would be
connected directly to your home without any inferior cables and patches. Though JioFiber
Preview program is already live, Jio is going to upscale things and make its broadband services
available in many more cities movies forward. We will also get to hear about new Jio GigaFiber
plans.
The current preview plan gives access to ultra high-speed internet up to 100Mbps for 90 days
along with a monthly data quota of 100 GB and complimentary access to a host of Jio’s
premium apps. In case, you consume 100 GB of your data quota, you’ll have the option for
data top-up of 40 GB.
As this is a preview offer, there are no installation charges levied but there is a refundable
security deposit of Rs.4,500 taken for the ONT device (GigaHub Home Gateway).
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1. Jio VoWi-Fi
VoWi-Fi, as the name indicates, allows the users to call without a mobile signal using Wi-Fi.
This is one simple yet effective feature to have! This is coupled with the Public WiFi service
which Jio has been testing in various regions such as Madhya Pradesh, Andhra Pradesh,
Telangana, and Kerala.
Now, if you’re thinking that this could be done via social media and Instant Messaging apps,
then please note this is better than those options because it’s more seamless and works like
the regular SIM calling (via dialer). On supported networks, your phone can switch calls
between WiFi and cellular network depending on which one has stronger signals in your area.
To start with, this would work for Jio to Jio calls only.
2. Jio GigaTV
This service would depend on the broadband connectivity offered by Jio GigaFiber listed
above. Once you have their broadband connection, you can avail the plethora of Jio suite
products or apps, 600+ channels and movies on your TV using a set-top box. It will support
voice-commands using Microphone enabled remote which has inbuilt Google Assistant and
will also integrate video-calling support.
Jio already announced a handful of Smart Home products at Jio GigaFiber launch AGM. Next
year, Jio will be bringing in more smart home products like smoke and water sensors, panic
button, smart video doorbells, smart switches, etc. in India.
5.Jio 5G
The company which has been the major driving force behind Digital India, thanks to its 4G
LTE at an unbelievable low price would be launching their 5G services within five to six
months after the spectrum allocation. Using Jio 5G, users will be able to download and upload
data up to 50 to 60 times faster than on 4G.
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As per Telecom experts, the transition from 4G to 5G would be quicker than the switch from
3G to 4G. And that’s a great thing to hear!
6. Jio Smartphone
Jio phones could grab attention as they were basic phones with the 4G network connectivity
and with some utilitarian apps like Whatsapp sprinkled into the small package. And now, top
officials at Reliance Jio Infocomm say that they are working on affordable large-screen
smartphones which would offer both high-quality content and high-speed connectivity to the
Indian market.
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2.PRICING DETAILS OF RELIANCE JIO PRODUCT AND
SERVICES AND ITS COMPETITOR
Penetrative: This is the strategy in which the focus is on grabbing maximum market share.
Hence, the price of the product is set very low initially (at launch) so that it can penetrate the
market and attract buyers of all segments. Reliance Jio is a perfect example for this strategy.
While Airtel and Vodafone Idea new revised plans went into effect on December 3, the
new Jio plans will go into effect from Friday, December 6 and can be opted from all
existing touchpoints. Jio is also bundling Jio Prime benefits including access to Jio TV
Jio Cinema, Jio Saavn, Jio News, Jio Security, Jio Cloud, and Jio Health Hub.
The All-in-One plans now start at Rs 199 with a validity of 28 days. It offers 1.5GB
data per day and 1,000-minute calls from Jio to other networks. Then there is Rs 249
and Rs 349 plans offering 2GB data per day and 3GB data per day respectively. Both
of these plans come with 28 days of validity and offer 1,000-minute calls.
Jio Rs 399 and Rs 444 plans offer 1.5GB per day and 2GB per day respectively. Both
come with 56 days of validity and offer 2,000 minutes of fair usage policy (FUP) to
non-Jio mobile calls.
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Jio plan
2. Reliance Jio Fiber adds Rs. 351 monthly, Rs 199 weekly prepaid
broadband plans
Reliance Jio has added two new broadband plans for its JioFiber customers. The company has
introduced a Rs 351 monthly plan and Rs 199 weekly plan for its customers.
To start with Rs 351 plan, users will get 50GB of data per month at 50Mbps internet speeds.
The plan comes with unlimited voice calling facility as well. Apart from this, once the data
limit is over, users can still enjoy the internet with 1Mbps speeds. The company has also
revealed that one can opt for advance payment option of 3 months, 5 months, yearly and
biennially. The pack will cost you Rs 414.18 including GST.
Coming to Rs 199, it is a weekly broadband plan from the company. Under this plan, users will
get unlimited data with a download speed of up to 100Mbps. The validity of the pack is 7 days
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and there is no option of advance payments with this plan. Furthermore, users will also get a
complimentary TV Video calling facility along with free local and STD calls.
Moving on, both the plans are available for ‘customers possessing a compatible Customer
Premise Equipment'. CPE is available in two different options at refundable security deposit
options of Rs 3,500 and Rs 1,500. One can opt for the new prepaid plans through an auto-debit
mode through which the amount will be automatically deducted along with normal recharge.
Meanwhile, Reliance Jio has announced that it will increase mobile tariffs in India. The
telecom operator said that it will increase the prices in the “next few weeks”. With this, it will
be for the first time that the telecom operator will increase all of its tariff plans. The company
has made its move after both Bharti Airtel and Vodafone announced that they will increase the
tariff plans in the country in the view of their unprecedented loss and heavy government dues
along with mounting debts.
The company has revealed that it will be a limited-period offer and it will be introduced once
a user makes a recharge after the due date is over. “Customers will get free talk time of 30
minutes the first time they recharge their phones. This one-time offer will be available for the
first seven days from the date the plan was announced,” said a person aware of the development
told The Economics Times.
The person further revealed that the company is providing this offer as a part of exercise to
help a smooth transition for subscribers. Previously, The company has introduced special IUC
(Interconnect Usage) Top-Up vouchers for prepaid users which will offer free outgoing
minutes and data as well. For now, there are four IUC Vouchers available for Rs 10, Rs 20, Rs
50 and Rs 100.
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PRICING STRATEGY USED BY AIRTEL
competitive pricing
The company uses competitive pricing strategy just like any other network providers because
of the competition which is present in this sector. However, Airtel also provides
flexible pricing mechanism depending on the prevailing market conditions. For instance, when
the company relaxes taxation, it also reduces its prices across all affected products. The make
my plan introduced by Airtel was a smart strategy as customers could now modify their plan
as they see fit.
Reliance Jio is an Indian company with Pan-India presence. It has its headquarters base at Navi
Mumbai in Maharashtra. Reliance Jio has a strong and widespread distribution channel. It is
the owner of 1,800 MHz and 800 MHZ bands in 6 and 10 circles respectively amongst the total
22 circles prevalent in India. It is also the owner of 2,300 MHZ spectrum licensed for Pan-
India usage till the year 2035.
Reliance Jio entered into a deal with Reliance Communications for sharing 800 MHz in seven
other circles besides the ten already owned by its company. It also made a deal with BSNL to
use intra-circle roaming facilities in national roaming mode. Before launching telephony
services Reliance Jio offered free services for Wi-Fi hotspot in several Indian cities like Ujjain,
Dewas, Jabalpur and Indore in Madhya Pradesh, Visakhapatnam in Andhra Pradesh,
Ahmedabad and Surat in Gujarat, selected locations in cities of Kolkata, Mumbai, Mussoorie,
Bhubaneswar, Meerut and Lucknow. Free internet Wi-Fi services were offered during 2016
20-20 matches at Kolkata, Delhi, Bengaluru, Dharamshala, Mohali and Mumbai.
4. MARKET SHARE
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BHARTI AIRTEL
Bharti Airtel is the largest mobile telephony operator in the GSM space with 19.8% share of
the Indian wireless market (as at the end of FY12). The company, apart from being the largest
player in the mobile segment with subscribers in all the 22-telecom circles of the country, also
provides varied services like fixed line, broadband and retail internet access. During the period
FY07 to FY12, the company grew its sales and profits at average annual rates of 31% and 1%
respectively.
RELIANCE COMMUNICATIONS
Reliance Communication Ltd. (RCL) is the second largest private sector mobile telephone
operator in India with a wireless (CDMA and GSM) subscriber base of nearly 50 m. The
business of the company is spread across three segments - Global, Enterprise and Personal. The
'Global' business caters to voice and data market. In the voice market, RCL is the carrier of
national and international voice traffic for telecom operators, telecom service providers and its
internal customers. The data business owns the largest private submarine cable system in the
world, which carries data across six continents. The 'Enterprise' segment serves 750 of the top
1,000 enterprises in India, by offering a wide array of products that comprise of voice, data,
Internet, and IT infrastructure management services. The 'Personal' segment offers voice, data
and value added services for the individual consumers and enterprises, via its CDMA and
GSM-based mobile and fixed wireless service.
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5.SWOT analysis of Reliance Jio
Reliance Jio Infocomm Limited or Jio as it is popularly known as a mobile network service
based on LTE technology owned by the Reliance Industries. The company whose headquarters
is in Navi Mumbai offers wireless 4 G network services and has the credit of being the only
VoLTE operator in India currently.
The network covers the whole of India and is the largest Internet Service provider in the
country. Reliance Jio launched its services for the first time in 2015 and became commercial
in September 2016.
Strengths
Strengths are defined as what each business does best in its gamut of operations which can give
it an upper hand over its competitors. 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 for free for 3-6 months to
all their users. 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 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.
Technology – Jio currently uses the latest 4 G 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 6 G technologies which are expected to be
the future in wireless communication.
Strong backing of parent company Reliance Industries: Reliance Industries is a
credible brand which echoes with Indian sentiments and has high trust amongst
customers. The association of Jio with Reliance acts as a core strength.
Brand Management – The reason for the huge customer base of Reliance Jio is the brand
management strategies that it has adopted. The right promotion backed by lucrative
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offers and credible brand ambassadors like ShahRukh 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 zero 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.
Weaknesses
Weaknesses are used to refer to areas where the business or the brand needs improvement.
Some of the key weaknesses of Reliance Jio are:
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.
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.
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.
Data connection poor – The data connection is many times poor from Reliance Jio and
the range is less causing slower loading speeds in selected regions.
Opportunities
Opportunities refer to those avenues in the environment that surrounds the business on which
it can capitalize to increase its returns. Some of the opportunities include:
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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 bandwidth.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
neighburing regions.
Threats
Threats are those factors in the environment which can be detrimental to the growth of the
business. Some of the threats include:
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.
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 company.
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.
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STRENGTH WEEKNESS
OPPORTUNITY THREAT
STRENGTH WEEKNESS
OPPORTUNITY THREAT
SWOT of AIRTEL
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6.Why Customer Likes Jio More Than Airtel?
The war between telecom companies to offer the best data plan has never been as intense as in
this year. The telecom companies are frequently revising or rolling out new plans to stay in this
race. But one company that has not revised its data plans since almost an year is Jio.
Jio has not revised its data plans for nearly an year now. But there are reasons why it is still a
better choice than other telcos in terms of data. If you are a hardcore data-user, you would know
how annoying it can be when you have bought an expensive 4G data plan hoping to enjoy your
PUBG on mobile during train journeys but sadly the network just won't upgrade from 2G or
3G most of the time.
Data connectivity is poor in India. You cannot expect your mobile internet to work at all places
and this is the case with almost every telecom company including Jio. But there are few areas
where Jio scores an extra point over others.
Let's take a look at five reasons why it is a better option for data than Airtel.
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of over 95% in all of India's regions, despite huge variations in topography, and in the face of
massive increases in subscribers and data consumption," states the report.
-- Jio offers highest download speed:
Telecom Regulatory of India(TRAI) reports that Jio registered the highest download speed of
22.3 Mbps in October while Airtel registered 9.8 Mbps
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CHAPTER 5
INTERNATIONAL BUSINESS
But why would Softbank be interested in Piramal Group? It may just be because Ajay Piramal as well as his in-
law Mukesh Ambani have been discussing a new business together in which Soft ..
There’s a fire sale happening in Indian telecom, and that has turned
the sector into the hottest destination for foreign direct investment
(FDI) flowing into the country.
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In financial year 2018, FDI inflows into communication services
touched over $8.8 billion (around Rs63,000 crore), rising nearly
50% from the previous fiscal, according to the provisional numbers
the Reserve Bank of India (RBI) released last week in its annual
report. This increase has for the first time helped telecom dethrone
manufacturing, which had received the biggest share of FDI for the
last nine years, according to the central bank’s report.
One of the key reasons for telecom’s prominence in FDI is the heavy
losses the industry has suffered in recent years, particularly since
the disruptive entry of Reliance Jio in November 2016. Jio has
offered data and voice-calling services at extremely low rates,
kicking off a brutal price war that is bleeding the industry dry. For
instance, Telenor and Docomo have exited India. Aircel is filing for
bankruptcy following its failed merger talks with Reliance
Communications, which is also close to bankruptcy. Vodafone India
and Idea Cellular have merged, leaving Airtel as the only major firm
standing on its own.
To raise funds and absorb the heavy losses, companies are also
putting their assets on the market. This, in turn, has caught the
attention of international giants.
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