GL BAJAJ INSTITUTE

OF

MANAGEMENT AND RESEARCH

GREATER NOIDA

Minor Project (PG34)

ON
RILANCE JIO

POST GRADUATE DIPLOMA IN MANAGEMENT

TERM -2
BATCH: 2019-21

Submitted by Submitted to
BHAVYA BHARTI Dr. Parul Yadav
Roll No. GM19O49 (Assistant Professor)
1
GL BAJAJ
INSTITUTE OF MANAGEMENT AND RESEARCH
GREATER NOIDA

CERTIFICATE

This is to certify that Ms BHAVYA BHARTI (GM19049) PGDM 2019-21 ,

Term – 2 , work exemplified in minor project (PG34) on RELIANCE JIO
under my mentorship in GL BAJAJ INSTITUTE OF MANAGEMENT AND
RESEARCH , GREATER NOIDA (U.P)

MENTOR Section in Charge Faculty in Charge

Dr. Parul Yadav Dr. Arvind Bhatt Dr. Dileep Singh
(Assitant Professor ) (Assistant Professor) ( Professor)

TABLE OF CONTENT
2
S TOPIC PAGE No.
No.
1. Industry Analysis 4–7
2. Competitor Analysis 11 – 12
3. About Airtel 13 – 25
4. Marketing Analysis Jio
26 – 40
5. Marketing Analysis Airtel
6. International Business of Jio 41 – 44
7. International Business of Airtel 45 - 47
8. Findings 48 – 54
9. Recommendations
55
10. References
56
57

CHAPTER 1
RELIANCE JIO
TELECOM INDUSTRY

ABOUT INDUSTRY

3
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.

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.

4
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.

The world telecommunications market is expected to rise at an 11 percent compound annual

growth rate at the end of year 2011. The leading telecom companies like AT&T, Vodafone,
Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the
advantage of this growth. These companies are working on telecommunication fields like
broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies,
LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data
service etc.

Economical aspect of telecommunication industry: World telecom industry is taking a crucial

part of world economy. The total revenue earned from this industry is 3 percent of the gross
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.

SWOT Analysis of Indian Telecom Industry

5
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

The weaknesses of the Indian telecom sector are as follows.

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

Population: The population of India is really an opportunity of telecom service providers, as

the number of population without telecom service is also very high. The industry has to target
India’s huge population to grow.

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.

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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.

Major Players in Indian Telecom Industry

The Top five companies, on the basis of ‘Market Share’ as on 31st January, 2010are:

1. Bharti Airtel Ltd.

2. Reliance Jio Ltd.

3. Vodafone Idea Ltd.

4. BSNL

5. Telenor

RELIANCE JIO

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 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.

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

8
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

9
 CHAPTER 2

COMPETITOR ANALYSIS
RELIANCE JIO

10
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
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

11
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.

 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).

CHAPTER 3

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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]

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

13
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

Hunger to win customer for life

o VISION

Our vision is to enrich the lives of our customers. Our obsession is to win
customers for life through an exceptional experience.

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

KEY STAFF MEMBER OF AIRTEL (Management)

Name Designation

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 Badal Bagri Chief Financial Officer

Chua Sock Koong Non-Executive Director

Craig Edward Ehrlich Independent Director

D K Mittal Independent Director

Gopal Vittal CEO

Gopal Vittal Managing Director & CEO

Kimsuka Narasimhan Independent Director

Manish Kejriwal Independent Director

Pankaj Tewari Company Secretary

Pankaj Tewari Secretary

Rakesh Bharti Mittal Non-Executive Director

Shishir Priyadarshi Independent Director

Sunil Bharti Mittal Chairman

Tan Yong Choo Non-Executive Director

V K Viswanathan Independent Director

o TURNOVER

One of India's leading telecommunication network companies, Bharti Airtel reported

a revenue of over 807 billion Indian rupees in fiscal year 2019, lower than in the previous
years. Lead by Sunil Mittal and set up in 1995 as Bharti Cellular Limited,
the company offered services under the Airtel brand

 SWOT OF AIRTEL

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Strengths in the SWOT analysis of Airtel
1. Renowned Telecom company: With its 19+ years of rich experience in telecom
industry this MNC had travelled far to become world’s 3rd largest telecom operator
overseas with operations in nearly 20 countries.
2. High Brand Equity: It is one of the pioneer brands in telecommunication having a
high brand recall and with a whopping subscriber base.
3. Extensive infrastructure: With the formation of Indus tower & due to its partnership
with Idea & Vodafone, the infrastructure of Airtel has extended in all parts of the
country resulting into nationwide penetration.
4. Strategic Alliances: The company has top notch stakeholders,
namely Sony Ericsson, Nokia and singtel, and the recent one being Apple. Such
strategic alliances boost the brand equity and the bottom line of the company.
5. Torch bearer of the telecom Industry: With its number 1 spot due to its excellent
services in developing economies, Airtel has interconnected the life of people in an
highly efficient way. Thus, where Vodafone is an external entrant, Airtel is a leading
nationwide player in India and the torchbearer of the telecom industry in India.

Weaknesses in the SWOT analysis of Airtel

1. Outsourced Operations: Outsourcing operations helped Airtel in lowering its cost.
But on the other hand, they are running the risk of being dependent on some other
companies which may affect its operations.
2. Venturing into African operations: Although it’s been 4 years that Airtel has
acquired Zain’s Africa business, but Airtel is still struggling to turn around the unit
which was bought at a whoppy 9 billion dollars.
3. High Debt: With its acquisitions turning out to bad investment, and credit being high
and margins being low, Airtel group is under high debt. Airtel does not have as deep
pockets as Vodafone.

Opportunities in the SWOT analysis of Airtel

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 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.

Threats in the SWOT analysis of Airtel

1. Government Regulatory Framework: With the auction of spectrum & change in the
government policies on a regular basis, it is a potential threat to the stability &
existence of this industry thereby affecting the players.
2. Competition: Price war in the home market and declining margins due to this is
adversely affecting the overall business of the group.
3. MNP (Mobile number portability): MNP gives the customer independence to
change the service provider while retaining the number and as Airtel charges are
premium over other service providers, it can see slump in subscriber base in the next
fiscal year with PAN India MNP applicable.

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  BACKGROUND INFORMATION ABOUT AIRTEL

AIRTEL

Type Public

Traded as  BSE: 532454
 NSE: BHARTIARTL
 BSE SENSEX
Constituent
ISIN INE397D01024

Industry Telecommunications

Founded 7 July 1995; 24 years ago

Founder Sunil Bharti Mittal

Headquarters Bharti Crescent, 1, Nelson

Mandela Road, New
Delhi, India[1]

Area served Worldwide

Key people  Sunil Bharti

Mittal (Chairman)
 Gopal Vittal (MD &
CEO)
Revenue ₹807,802
million (US$12 billion) (2019)[2]

Operating ₹−17,318 million (US$

income −250 million) (2019)[2]

 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

18
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.

Mobile data service

Services under mobile data include BlackBerry services; a web-enabled mobile email
solution[ working on 'push technology'; a USB modem that helps in getting instant access to
Internet and corporate applications; Airtel Data Card, which enables accessing the internet
anytime; Easy Mail, a platform that provides access to personal/corporate e-mails
independent of handset 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

19
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.

o RECENT ACQUISITION OF AIRTEL

Tata Teleservices & Tata Docomo

20
On October 2017, Bharti Airtel announced that it would acquire the consumer mobile
businesses of Tata Teleservices Ltd (TTSL), Tata Docomo and Tata Teleservices
Maharashtra Ltd (TTML) in a debt-free cash-free deal. The deal will essentially be free for
Airtel which will only incur TTSL's unpaid spectrum payment liability. TTSL will continue
to operate its enterprise, fixed line and broadband businesses and its stake in tower company
Viom Networks. The deal received approval from the Competition Commission of
India (CCI) in mid-November 2017. On 29 August 2018, Bharti Airtel, got its shareholders
approval for the merger proposal with Tata Teleservices. On 17 January, 2019 NCLT Delhi
gave final approval merger between Tata Docomo and 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. 

21
 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.

22
  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:

 The recent technological developments and breakthroughs made by competitors, as

mentioned above. If Airtel encounters a new technology that is gaining popularity in
the industry in question, it is important to monitor the level of popularity and how
quickly it is growing and disrupting its competitors’ revenues. This would translate to

23
 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.

24
Legal Factors
The legal factors that deserve consideration include the following:

 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.

25
 CHAPTER 4

MARKET ANALYSIS

RELIANCE JIO

A. PRODUCT INFORMATION

4.1 Products and Services

4.1.1 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.

4.1.2 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.

26
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.

4.1.3 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"

27
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.

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

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:

 Jio Chat - instant messaging app

 Jio Cinema - online HD video library
 Jio Cloud - cloud-based backup tool

28
 Jio Mags - e-reader for magazines
 Jio Money Wallet - online payments/wallet app
 Jio Saavn (earlier, JioMusic) - for online and offline music streaming in English and
Indian languages
 Jio Security - security app
 Jio4GVoice (earlier, Jio Join) - VoLTE phone simulator
 My Jio - manage Jio account and digital services associated with it

4.1.4 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.

Reliance Jio Products And Services Coming Up In Future

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.

29
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).

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.

4. Jio Smart Home

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

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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.

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.

PRODUCT AND SERVICE PRODUCT AND SERVICES

OFFERED BY JIO OFFERED BY AIRTEL

 Mobile broadband  Tele Media

 Jio Fiber
 Digital TV
 Jio App
 IPTV
 Jio Wi fi
 Telephone
 Jio Giga Fiber
 Broadband
 Jio Phone  Mobile Data Service

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4.2 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.

1. Reliance Jio revises New All-in-one plans

Reliance Jio has now announced the ‘New All-in-one plans with revised pricing along
with JioPrime benefits. This follows the Bharti Airtel and Vodafone Idea revising
their mobile tariffs with price hikes recently.

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.

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.

32
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 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.
 
3.Reliance Jio will compensate its customers by offering 30 minutes of free
calling
Reliance Jio recently announced that it will start charging 6 paise per minute for outgoing
calls on other network. The telecom giant has now revealed that it will offer 30 minutes of
free calling to its Jio customers. 
 
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

33
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. 

4.3 DISTRIBUTION CHANNEL OF RELIANCE JIO

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.

4.4 MARKET SHARE

 RELIANCE COMMUNICATIONS

34
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.

4.5 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.

35
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 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.

36
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:

 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

37
 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.

STRENGTH WEEKNESS
 Strongest Customer Acquisition   Late entry into the market
 Strong customer base  Pricing Controversies
 Strong backing of parent company  Too many freebies
Reliance Industries  Data connection poor
 Fast and wide network

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 OPPORTUNITY THREAT
 Future driven technology   Risk of loss of customers 
 5G and 6G technologies  Criticism and negative image
 Apps  Poor Code of ethics
 Expansion to other countries  Removal of free services

SWOT of Reliance Jio

4.6 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.

--The unlimited data:

 Jio can be called as the first company to launch unlimited data concept in the country. Other
companies might have been doing it before but it was only after the debut of Jio that
unlimited data concept came into light. Unlimited data means you can use data without any
FUP limit and even if there's an FUP limit, your data will continue to work at a reduced

39
speed. Not all plans from Airtel, Voda or Idea offer unlimited data. There are only select one
but Jio offers unlimited data with all of its plan.
-- Only 4G data:
 This is another big reason to choose Jio. Currently, Jio is the only company in India that
offers fully 4G-enabled services. With other telcos, the network varies from area to area. It
can be 4G in some areas, 3G in some and even 2G in some areas with spotty connection.
-- Jio data plans are cheap:
 Jio data plans start at as low as Rs 52. The 28 days' data plan from Jio starts at Rs 149 while
for Voda the amount goes up to Rs 458. Airtel also has a Rs 149 plan but it is not available in
all areas. Jio offers 1.5GB data per day at Rs 149 across all circles.
-- Jio has larger 4G availability:
 According to an OpenSignal report, Jio has the highest 4G presence in India. It has grown
from 96.4 per cent to 96.7 per cent. "The operator has managed to achieve availability scores
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 M.

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 CHAPTER 5

MARKETING ANALYSIS OF AIRTEL

5.1 PRODUCT AND SERVICES OFFERED BY AIRTEL

A. Mobile Services
 First to launch 4G in India
 Pocket-friendly data packs
 Seamless 3G connectivity
 Wide range of plans to choose from
 
B. Airtel Business

 Diverse portfolio of services - voice, data, video, network integration, data centres,
managed services, enterprise mobility applications and digital media
 Strategically located submarine cables and satellite network
 Global network running across 225,000 Rkms, covering 50 countries and 5 continents

C. Tower Infrastructure

 One of the world largest passive infrastructure providers

 88,808+ towers (including proportionate share of Indus Towers)

 
D. Telemedia

Landline

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  Attractive plans and offers
 Highly reliable service
 24/7 online support
 Value added services
Internet
 Superior connectivity
 Tailor-made plans
 High speed internet access
 Value added services

E. Digital TV
 Superior digital picture quality
 Dolby digital sound
 HD channels
 Universal remote
 330+ channels
 Interactive services

5.2 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.

5.3 DISTRIBUTION CHANNEL OF AIRTEL

Distribution procedure and Margins: In Urban Areas Airtel directly supply its products to

the distributors in Urban Areas through Territory Manager. Territory Manager distributes the
products as per demand for individual distributors, which is scheduled as per the target for the
territory.

Distribution strategy in the Marketing strategy of Airtel –

It has wide spread simple and effective channel structure. Company uses 2-Tier & 3-tier
distribution network system.

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Under 2-tier distribution network, company appoints UD (urban distributors) & RS (Rural
Suplliers). UD distribute the items to retailers according to the demand & transfer easy
balance to retailer through FOS (Field officer Sales) SIM who work under UD’s.

Under 3-tier distribution RS (rural supers) distributes the items to RD (Rural Distributors) &
transfer easy balance into RD’s SIM, who then distribute it to Retailers.

5.4 MARKET SHARE

BHARTI AIRTEL 

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.

5.5 SWOT ANALYSIS OF AIRTEL

STRENGTH WEEKNESS
 Renowned Telecom company  Need more investment in new
 High Brand Equity technologies
 Extensive infrastructure  Venturing into African
 Torchbearer of the telecom operations
Industry  High Debt
 gaps in the product range

OPPORTUNITY THREAT
 High Debt  Government Regulatory
Market Development Framework
 Untapped geography of the  Competition
current market  MNP

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  LTE

5.6 Competitive advantage in the Marketing strategy of Airtel –

With the formation of Indus tower & partnering with Idea & Vodafone for Indian Operations,
Airtel has extended its infrastructure in the extreme parts of the country for nationwide
penetration, creating  competitive edge over other players in terms of low operational cost,
better network connectivity, coverage, low call drops & better customer service.

Airtel developed a sustainable advantage through its excellent network of telecom towers. In
many locations, newer entrants found it cheaper to rent Airtel’s existing infrastructure rather
than setup new towers.Also spending extensively on advertising & promotions helped it to
become a market leader. Word of mouth is one of the strongest forms of promotions & Airtel
has completely leveraged that. Airtel is always known for its innovation and some of
its products were the lifetime prepaid, Airtel live, Hello tunes, My Plans, M-check are
pioneer strategies & the list is never ending.

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 CHAPTER 6

INTERNATIONAL BUSINESS

RELIANCE JIO

6.1 INTERNATIONAL MARKET GROWTH AND OPPORTUNITY

Billionaire Mukesh Ambani's telecom venture Jio will be among the 100 most valuable
brands globally within three years.The 'Top 100 Most Valuable Global Brands 2019 report'
by communication services provider WPP and market research firm Kantar Millward Brown
ranked Amazon the world's most valuable brand ahead of Apple and Google. While, Life
Insurance Corp (LIC) and Tata Consultancy Service (TCS) have entered the list as new
entrants. Jio has been featured in global 100 disruptive power brands.

"Jio disrupted the Indian telecom provider category with its deep discount prices for data
consumption. It forced competitors to lower their prices and drove category consolidation.

All telecom consumers not only Jio customers have been benefited from Jio's action, it added.

"Although launched in 2016, Indian consumers see Jio as meaningfully different as Airtel,

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which entered the market in 1995. Having attracted almost 300 million customers in just
three years, Jio could potentially leverage this audience with the sales of advertising and
content.

6.2 FOREGIN DIRECT INVESTMENT

Indian telecom is bleeding, but it is also foreign investors’

favourite
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.

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.

“There was an increase in investment by global players such as American Tower Corporation
(ATC) in telecom tower assets. Surviving telecom players such as Vodafone also had to
infuse greater private equity to keep going,” said Tanu Sharma, associate director at India
Ratings.

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Foreign direct investment in India (2017-18)

6.3 JOINT VENTURE / MERGER

Reliance Jio and Piramal Group may set up a joint venture for consumer
lending, fintech business
Billionaire and maverick investor Ajay Piramal's flagship company PiramalNSE -3.66 %
Enterprises is on the verge of finalising a massive Rs 9600 cr capital infusion deal with
Softbank and one more party. ET Now has learnt this from several investment banking
sources and lawyers working on the transaction. It was not possible to however to ascertain
the name of the second party that will be infusing capital into the Piramal Group.
The capital infusion in Piramal Enterprises is likely to be in two tranches, and will be
announced shortly. ET Now learns the top team of Masayoshi Son-led Softbank has been
camped at the Piramal headquarters for nearly 10 days now to finalise the transaction.

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.
After disrupting India's telecom market with freebies and cheap data, Mukesh Ambani's
Reliance Jio is now eyeing Europe. It is reportedly planning to set up a subsidiary in a small

47
European country, which has become a favourite with startups for its unique digital policies.
Ambani has expressed interest in the e-residency programme of Estonia, which can give him
an easy access to the entire European Union (EU) for his existing business while sitting in
India, according to an IANS report.

Estonia could be Reliance Jio's gateway to Europe. Reliance Industrial Investments and
Holdings Ltd, an investment holding company and a wholly-owned subsidiary of
Reliance Industries Ltd (RIL), will give a loan of Rs 12.20 crore (1.5 million euros) to the
Estonian unit to begin operations, according to a Mint report. Expanding in Europe can
help Jio offset risks in the Indian telecom market where competition is stiff and margins
meager.
Estonia is too small a country for a company of the size of Reliance to offer any
significant business opportunity. A 2016 Forbes India report said that Ambani's fortune
was equal to Estonia's entire GDP. Yet, Estonia has created a unique digital governance
system. It has made 99 per cent of its public services available online round the clock.

CHAPTER 7

INTERNATIONAL BUSINESS

AIRTEL

7.1International Market growth and opportunities

Bharti Airtel or `B2B arm’, will act as a major growth engine for which the company is
digitising this business to spur growth and acquire new customers.
“There's a huge focus on the B2B part of the business. Data centers, managed services, cloud,
security and IoT are a big growth engines for Airtel.
Bharti Airtel’s enterprise business for India -- Airtel Business - -reported Rs 2,992.5 crore
revenue for the first quarter ended June 2018, up 7% on a yearly basis. Its enterprise customer
base has also increased by 1.4% year-on-year.

“The process of making Bharti Airtel fully digital is not limited to the wireless part of the
business alone, and we’ve extended it to our B2B.Airtel aims to deliver every product riding
on the digital platform for every segment and market to aggressively add new enterprise
customers in India and in global markets as well. Having launched wholesale “voice on

48
demand” to customers globally, the telco is now launching “bandwidth on demand” platform.

The digital approach has helped Airtel get more than 300 new customers in the last three
months for the wholesale voice service in 30 countries. The acquisition machinery is very
fast.Airtel is making its latest bandwidth-on-demand product available in 19 locations,
including LA, New York, Paris, London, Dubai, Singapore, and Hong Kong outside India.
“Our locations in India are mainly around all the data centres in Chennai, Mumbai, and Delhi.

The latest platform has been built on Airtel’s global network spanning 250,000 route
kilometers across 50 countries and 5 continents, carrying 10 terabits/s international
bandwidth lit capacity.Airtel is offering its new bandwidth-on-demand service under two
different pricing models -- fixed and the subscription. Chitakara said customers will be able
to provision bandwidth whenever they need on an hourly, daily or monthly basis according to
their unique business needs.

“The new service will enable customers to manage their unpredictable bandwidth
requirements to accelerate the adoption of newer technologies and move faster in their cloud
and digital journey.

7.2Joint Venture/Merger/Acquisition of AIRTEL

Telenor India

On 2 January 2017, The Economic Times reported that Airtel had entered into discussions
with Telenor India to acquire the latter.On 23 February 2017, Airtel announced that it had
entered into a definitive agreement to acquire Telenor. As part of the deal, Airtel will acquire
Telenor India's assets and customers in all seven telecom circles that the latter operates in -
Andhra Pradesh, Bihar, Maharashtra, Gujarat, Uttar Pradesh (East), Uttar Pradesh (West) and
Assam. Airtel will gain 43.4 MHz spectrum in the 1800 MHz band from the Telenor
acquisition. Business Standard reported that it was a no-cash deal, but would cost
Airtel ₹1,600 crore over a 10-year period due to spectrum licence payments.

Tata Teleservices & Tata Docomo

On October 2017, Bharti Airtel announced that it would acquire the consumer mobile
businesses of Tata Teleservices Ltd (TTSL), Tata Docomo and Tata Teleservices Maharastra
Ltd (TTML) in a debt-free cash-free deal. The deal will essentially be free for Airtel which
will only incur TTSL's unpaid spectrum payment liability. TTSL will continue to operate its
enterprise, fixed line and broadband businesses and its stake in tower company Viom

49
Networks.The deal received approval from the Competition Commission of India (CCI) in
mid-November 2017 On 29 August 2018, Bharti Airtel, got its shareholders approval for the
merger proposal with Tata Teleservices.On 17 January, 2019 NCLT Delhi gave final
approval merger between Tata Docomo and Airtel

Tikona 4G spectrum

On 23 March 2017, Economic Times reported that Airtel announced that it had
acquired Tikona Digital Networks Pvt. Ltd to purchase the latter's 4G spectrum for
approximately ₹1,600 crore. The deal also includes Tikona's 350 cellular sites in 5 circles.
Tikona had purchased 20 MHz of 4G spectrum in the 2,300 MHz band in the 2010 auctions
in Gujarat, Himachal Pradesh, Uttar Pradesh (East), Uttar Pradesh (West) and Rajasthan
for ₹1,058 crore. Prior to the deal, Airtel did not hold any spectrum in the 2300  MHz band in
UP (East), UP (West) and Rajasthan, and held 10 MHz each in Gujarat and Himachal
Pradesh

Wireless Business Services Private Limited

On 24 May 2012, Airtel announced an agreement to acquire a 49% stake in Wireless

Business Services Private Limited (WBSPL) at an investment of ₹9.07
billion (US$130 million).WBSPL was a joint venture founded by Qualcomm, and held BWA
spectrum in the telecom circles of Delhi, Haryana, Kerala and Mumbai.Qualcomm had spent
US$1 billion to acquire BWA spectrum in those 4 circles. [The deal gave Airtel a 4G presence
in 18 circles. On 4 July 2013, Airtel announced that it had acquired an additional 2% equity
share capital (making its stake 51%) in all the four BWA entities of Qualcomm, thereby
making them its subsidiaries.On 18 October 2013, Airtel announced that it had acquired 100
percent equity shares of WBSPL for an undisclosed sum, [making it a wholly owned
subsidiary.

7.3 Foreign Direct Investment

Bharti Telecom seeks Rs 4,900 cr FDI nod; infusion to make Airtel foreign
firm

Bharti Telecom, a promoter of Bharti Airtel, has sought government nod for the infusion of
Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities, a move
that would make the country's oldest private telecom operator a foreign entity. 

50
The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 per cent
that will make it a foreign-owned entity, an official source aware of the development told
PTI. Sunil Bharti Mittal and his family own around 52 per cent stake in Bharti Telecom, at
present.

Bharti Telecom holds around 41 per cent stake in Bharti Airtel while foreign promoter
entities hold 21.46 per cent stake in the telecom firm. Public shareholders have around 37 per
cent stake in the company. 

"Bharti Telecom has applied for infusion of Rs 4,900 crore in the company which includes
investments from Singtel and some other foreign investors. With this Bharti Telecom will
become a foreign entity as majority stake will be held by overseas investors. DoT is expected
to approve this investment this month," the source said.

The Department of Telecom had earlier this year rejected Bharti Airtel's FDI application as
the company had not provided clarity on the foreign investor.

Total foreign shareholding is 43 per cent in Bharti Airtel, at present. With promoter firm
Bharti Telecom becoming a foreign entity, foreign shareholding in the company will cross 84
per cent, the source said. Bharti Airtel has already been in discussion with Singtel and other
entities for fund infusion. 

The company in August had informed stock exchanges that Bharti Telecom in order to retire
some debt may seek equity from its existing promoter group which may include overseas
entity and Singtel in proportionate to its holding. 

Bharti Airtel has said that even a marginal increase in foreign equity would take the foreign
investment in Bharti Telecom above 50 per cent making it a foreign owned entity. 

Bharti Airtel has already applied to raise FDI limit to 100 per cent in the company. 

Bharti Airtel board last week approved a proposal to raise $3 billion through QIP, stake sale
and debt papers as the company owes AGR dues of Rs 43,000 crore to the government.

7.4Overseas Market presence of the competitor

Airtel is the one of the largest mobile operators in the world in terms of subscriber base and
has a commercial presence in 18 countries and the Channel Islands.
Its area of operations include:

 The Indian Subcontinent:
o Airtel India, in India
o Airtel Sri Lanka, in Sri Lanka
o Robi, in Bangaldesh

51
 The British Crown Dependency islands of Jersey and Guernsey, under the brand
name Airtel-Vodafone, through an agreement with Vodafone.
Airtel operates in the following countries:

Country Operator Remarks

name

 Bangladesh Robi Airtel Bangladesh was merged

into Robi Axiata Limited in which
Bharti Airtel holds a 25% stake.

 Chad airtel Chad Airtel Chad is the No. 1 operator with

69% market share.

 Democratic Republic of the Congo airtel DRC Airtel is the market leader with almost
5 million customers at the end of
2010.

 Gabon airtel Gabon Airtel Gabon has 829,000 customers

and its market share stood at 61%.

 Ghana airteltigo Airtel Ghana merged with Tigo to

form airteltigo in 2017.

 India airtel India Airtel is the second largest operator

with almost 280.3 million customers
as of November 2018.

 Kenya Airtel Kenya Airtel Kenya is the second largest

operator and has 8.6 million
subscribers.

 Madagascar airtel Airtel is the market leader in

Madagascar Madagascar with 39% market share
and 2.5 million customers.

 Malawi airtel Malawi Airtel Malawi is the market leader

with a market share of 72%.

 Niger airtel Niger Airtel Niger is the market leader with

a 68% market share.

 Nigeria airtel Nigeria

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  Republic of the Congo airtel Congo Airtel Congo is the market leader with
B a 55% market share.

 Rwanda airtel Airtel launched services in Rwanda

Rwanda on 30 March 2012.

 Seychelles airtel Airtel is the leading comprehensive

Seychelles telecommunications services
providers with over 55% market
share of mobile market in Seychelles.

 Sri Lanka airtel Sri Airtel Sri Lanka commenced

Lanka operations on 12 January 2009. It
had about 1.8 million mobile
customers at the end of 2010.

 Tanzania airtel Airtel Tanzania is the market leader

Tanzania with a 38% market share.

 Uganda airtel Airtel Uganda stands as the No. 2

Uganda operator with a market share of 38%.

 Zambia airtel Zambia Airtel Zambia is the market leader

with 69% market share.

Channel Islands† :   Jersey Airtel- Airtel operates in the Channel Islands

 Guernsey Vodafone under the brand name Airtel–
Vodafone through an agreement with
Vodafone

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 CHAPTER 8

FINDINGS

1. Majority of the Reliance Jio customers are aware about the services through the
Internet.
2. Majority of the Reliance Jio customers are satisfied as per satisfaction level of the
network availability. As per the above research done majority of the Reliance Jio
customers are are neutral as per satisfaction level of the calling quality.
3. Reliance Jio customers are satisfied as per satisfaction level of the data connection.
4. Research done majority of the Reliance Jio customers are very satisfied as per
satisfaction level of the price.
5. As per the above research done majority of the Reliance Jio customers are unaware
about the future products of Reliance Jio.
6. It has to face huge competiton form its competitor airtel and Vodafone idea
7. Reliance jio is becoming more customer friendly than other competitors
8. Jio Plans is affordable for all the classes of people
9. Jio uses penetrative strategy where as other uses competitive strategy of pricing.
10. It should improve the network service data service and make it more reliable.

54
11. Strong Network Availability at each and every places of india , better calling quality,
reasonable prices, and have a good company growth.
12. Airtel idea voda mtnl are the major competitors of jio.

CHAPTER 9

RECOMENDATION

1. To launch special schemes for the students

2. To maintain price level customer friendly.
3. To build customer friendly services.
4. To work on customer care services.
5. To provide the services in remote areas.
6. To provide services as per the customer expectation.
7. Maintain the plans and network quality.
8. Increase the reachability towards the remote areas.
9. Make prime with low subscription fee and have plans suitable to usage.
10. Improve the calling quality

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 CHAPTER 10

REFERENCE
https://www.moneycontrol.com/india/stockpricequote/telecommunications-
service/reliancecommunications/RC13

https://www.ukessays.com/essays/marketing/analysis-of-the-indian-telecom-industry-marketing-
essay.php

https://www.smartprix.com/bytes/9-reliance-jio-products-and-services-coming-up-in-2019/
https://www.equitymaster.com/stock-research/compare/BTVL-RCOM/Compare-BHARTI-AIRTEL-
RELIANCE-COMMUNICATIONS

https://www.themobileindian.com/news/jio-fiber-plans-launched-starting-at-rs-699-27843

https://telecomtalk.info/reliance-retail-support-jio-4g-services/148481/

https://www.indiatoday.in/technology/features/story/5-reasons-why-jio-data-plans-are-better-
than-airtel-voda-or-idea-1406382-2018-12-10

https://economictimes.indiatimes.com/bharti-airtel-ltd/infocompanymanagement/companyid-
2718.cms

https://telecom.economictimes.indiatimes.com/news/airtel-acquisitions-in-india-in-past-5-years-
infographic/61062191

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https://en.wikipedia.org/wiki/Bharti_Airtel

https://economictimes.indiatimes.com/news/company/corporate-trends/reliance-jio-and-piramal-
group-may-set-up-a-joint-venture-for-consumer-lending-fintech-business/articleshow/

THANK YOU

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