RELIANCE INFOCOMM by shivamchugh173


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                          List of Contents

CHAPTER                               1-

Reliance Infocomm – As Introduction
Executive summery
Industry profile

Company profile
Competitors Analysis
Project Profile

CHAPTER                               2-

Objectives of study
Research methodology
CHAPTER                                             3-

Distribution channel of reliance Infocomm Service
Reliance Infocomm hierarchy at Lucknow
Survey findings- graphical representation
SWOT Analysis

CHAPTER                                             4-



                               Reliance Infocomm
                                 An Introduction

The Reliance Group, India’s largest private sector enterprises and one of the 500 largest
enterprises in the world. Had launched Reliance Infocomm Limited on December 28,
2002. Reliance Infocomm ushered a digital revolution in India and herald a New Way of
Life for a New India.

The date of the launch commemorates with the birthday of late Dhirubhai Ambani, the
Founder Chairman of the Reliance Group. His dream of harnessing the power of
information technology and communications to build a New India is the seeding that has
grown into Reliance Infocomm.

The Network
To make this dream a reality, Reliance Infocomm, under the leadership of Mukesh
Ambani,has created an overarching digital infrastructure using state-of-the-art technology
on the strength of a 60,000 kilometer terabit capacity optic fiber network covering over
60 cities.
Commenting on the network, Mukesh Ambani, Chairman and Managing Director,
Reliance Industries Limited, said. “The architecture and functionality of this network is
dynamic to keep pace with the evolution of technology in the functionality of this
network is dynamic to keep pace with the evolution of technology in the future”

The goals of Reliance Infocomm is to progressively expand its optic fiber network and
eventually cover 116,000 km, with the ability to seamlessly connect every individual,
home, and office in all 640,000 villages and 2.500 towns and cities of India.
Dhirubhai’s Vision
Dhirubhai Ambani dreamt of a New Way of Life for a New India, Reliance Infocomm
was launched to make this dream a fact of life for every Indian. The son of a school
teacher in a remote village, Dhirubhai Ambani founded Reliance Industries Limited with
courage, creativity and commitment as his principal assets. Within a span of 27 years. He
shaped it into    a Rs. 65.000 crore (USD 13.5 billion) group. Today, The business
activities of Reliance cover oil and gas, petroleum refining, petrochemicals, plastics,
polyester, textiles, financial services and infrastructure.

In the process of building Reliance. He ushered in an equity revolution in india. He
democratised the process of wealth creation by endowing 3.3 million investors, and
earned for reliance the distinction of being the world’s second-largest manufacturer of
polyester. Reliance also became the world’s eleventh-largest producer of plastics, and an
operator of the world’s fifth- largest petroleum refinery.

With amazing foresight, he sensed the incredible potential of the technological revolution
sweeping the globe, in the areas of information and communication. He conceived of
Reliance Infocomm as a means to bring a technological revolution to this country and
usher in a digital revolution in India. He visualized Reliance Infocomm as a powerful
vehicle to percolate the benefits of the knowledge era to all sections of society.

He fashioned a strategy, which was conceptually simple and sweeping in its impact. He
encouraged the Reliance Infocomm team to look for the best technology in the world and
use it to reduce the cost to the consumer.

Dhirubhai Ambani envisioned an all-encompassing and affordable information and
communications infrastructure to fashion a new society by building communities with
shared interests and values, and empowering people by overcoming the hendicaps of
illiteracy and mobility. He visualized the ability of information technology to deliver new
means for enlightening entertaining and enriching people; and making livelihood an
enjoyment, learning an experience, and living an excitement. This vision signaled a
sweeping a revolution for a New Way of Life for a New India. Reliance Infocomm
therefore, is an instrument for accomplishing this revolution.

Reliance Infocomm Initiative

Recognizing that Dhirubhai Ambani’s vision of a New Way of Life for a New India will
become a massive material force when it grips millions of men and women, Reliance
Infocomm is executing the entire project as a comprehensive, unprecedented partnership
between authorities, people and businesses. This partnership is already in action. It began
with the unveiling a new telecom policy and the Government had empowered 18 state
governments, 7,000 municipal authorities, thousands of young professionals, engineers
and workers.

Proceeding in the same partnership mode, Reliance Infocomm brought bring out the
convergence of information and communication to energise enterprises by opening up
new paths for profitable ventures. Facilitating outsourcing of businesses and making
transactions efficient. This overarching invfocomm architecture galvanised governance
by making records easily accessible, services rendered efficiently and processes made
seamless and efficient. All this made make Infocomm a means to empower and enlighten
every individual, home , and office.

According to Mukesh Ambani, “Reliance Infocomm will ensure that by 2003, India
has the most modern information and communication infirastructure in the world.
An infrastructure for connecting citizens, networking communities, improving the
quality of life, building intellectual capital, enhancing productivity, creating new
business. Building partnerships and, above all, for taking India to global leadership
in the knowledge ear.”

Reliance Infocomm Services

Reliance Infocomm offered revolutionary, data, video and value-added services at a cost
affordable by all, in the largest and most complex rollout in the history of the information
technology and communication sector worldwide

Reliance Infocomm started its services in three concrete phases:

First, with a mobile revolution, in the form of the Reliance India Mobile service through
a nation wide wireless network that reached out to 90% of India’s population and
eventually to every Indian. This revolution enabled every individual talk, learn, shop,
bank, transact, entertain and be informed. While on the move.

Second, in mid 2003, with an enterprise net way revolution by providing 100 mbps
Ethernet links to every desktop and device to half a million enterprise buildings initially
and eventually to 10 million buildings. This revolution empowered every enterprise by
making transactions efficient, functions seamless and new economic opportunities

Third, in end 2003, with a consumer convergence revolution by providing high speed
Ethernet links to 80 million homes initially and eventually to every home. This revolution
enlightened every home with an entire range of television channels, high-speed
telephony, audio conferencing, video conferencing and video on demand.
                                Executive Summary

The project given was divided in three sub-projects. I total the projects had objective to
find out the market potential of     Reliance Prepaid PCO Terminal, knows as Fixed
Wireless terminal and also to know the satisfaction level of he customers using Reliance
prepaid Terminal. The projects that were givin were mainly:
     Market potential of Reliance pre paid PCO.
     Comparison with BSNL PCOs.
     Customer satisfaction of Reliance prepaid PCOs.

Market Potential of Reliance Prepaid PCO:
This project deal with the objective to assess the market shared captured by Reliance
Prepaid PCOs in the Luck now city. In this, the survey was conducted on PCO owners in
different localities.

Comparison With BSNL PCO Connection:
This project dealt with the objective to assess how much PCO owners are satisfied with
their BANL lines and compare its services with the Reliance prepaid PCOs.

Customer Satisfaction of Reliance Prepaid PCOs:
This projects dealt with objective to assess the satisfaction level of Reliance prepaid PCO
                             Telecom Service-A Profile

The telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation and hence telecom infrastructure is treated as a
crucial factor to realize the socio-economic objectives in India. The Department is also
responsible for grant of license for various telecom services like Unified Access Service
Internet and VSAT service.

Telecom Commission:
The Telecom Commission was set up by the Government of India vide Notification dated
11th April, 1989 with administrative and financial powers of the Government of India to
deal with various aspects of Telecommunications.

The Telecom Commission and the Department of Telecommunications are responsible
for policy formulation, licensing wireless spectrum management, administrative
monitoring of PSUs, research and development and standardization/validation of
equipment etc.
          Telecom Industry to Grow By Over 13% in Next 5 Years

The Indian telecommunicated market is projected to grow at a record CGAR (combined
annual growth rate) of 13.42 per cent in the next five years despite the current slowdown
in the world telecom market, according to a Frost & Sullivan study.

During the next five years period, the teledensity in Indian is expected to cross 10 per
cent with the ongoing aggressive push of communication facilities by both private and
incumbent operators, according to the study.

“The proposed reduction is revenue sharing if materializes, it will be a major influx point
for the industry as it will increase teledensity and will make services affordable to the
common man”, Manoj Menon, Director, technology practice, Frost and Sullivan said.

According to the study, the present price war in the Indian mobile and long distance
segment will spill over to the international and local distance calls pushing the break even
for major Indian Telco by some more year than projected earlier.

The study also foresees more scope for consolidation in the Indian telecommunication
industry in 2003 mainly because in the present price war, only companies with “deep
pockets” are expected to survive.

The study also points out that the “value for money” marketing proposition by WLL
operators will force the Indian cell operators to start offering enhanced value added
service at competitive prices and thus mitigate to the to the extent the threat of churn.

The game today is about leveraging existing infrastructure as effectively as possible
instead of making new investments into new networks for speedy roll out, according to
Mr. Menon. Mobile players in the more developed markets in Asia were now
concentrating hard on retaining their subscriber and consolidation their efforts at an
industry level to reduce resources into network build out, points out the study.
“Players would also need to develop strong business models and secure beneficial
alliances which add value to their customers”, the study says.

Dhirubhai’s Dream

Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a place in
the Global Fortune 500 list. The achievement is even more significant due to the fact, that
the entire growth was achieved in an organic manner and in a span of just 25 years.

Dhirubhai was not just firmly rooted in traditional Indian values, but was also a
quintessentially modern men- the man of the new millennium. This was clearly reflected
in his passion for the mega-sized projects, the most advanced technology and the highest
level of productivity.

The corporate philosophy he followed was short simple and succinct-“Think big. Think
differently. Think fast. Think ahead. Aim for the best.” He inspired the Reliance team to
do better than best-not only in India but also in the world.

Dhirubhai Ambani founder Chairman of the Reliance Group, had an acute sense that
education alone empowers people. He was a great communicator. He communicated to
inspire, to guide, to educate and to motivate.

He employed telephone as a powerful tool to achieve these goals. He used telephone to
defeat distance, to compress time and to remain abreast of events. He was acutely aware
of the power of information and communications. He would often say. “Make the tools of
infocomm available to people at an affordable cost, they will overcome the handicaps of
illteracy and lack of mobility”.

He wanted a telephone call to be cheaper than a post card. This, he believed, would
transform every home, empower every Indian, remote roadblocks to opportunity and
demolish the barriers that divide our society.
Dhirubhai Ambani was of the conviction that infocomm would energies enterprises,
galvansi governance, make livelihood an enjoyment, learning an experience, and living
an excitement.
Reliance Infocomm is a fascinating outcome of this powerful conviction. It is a major
intiative to translate his inspiring dream into reality.
                       Reliance Group of Companies

The reliance group founded by Dhirubhai H. Ambani ( 1932-2002 ) is India’s largest
business house with total revenues of over Rs. 99,000 crore ( US$ 22.6 billion ), cash
profit of Rs. 12,500 crore ( US$ 2.8 billion ), net

Profit of Rs. 6,200 crore ( US$ 1.4 billion ) and exports of Rs. 15,900 crore ( US$ 3.6
billion ).

The Group’s activities span exploration and production (E&P) of oil and gas, refining and
marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial
services and insurance, power, telecom and infocomm initiatives. The Group exports its
products to more than 100 countries the world over, Reliance emerged as India’s most
Admired Business House, for the third successive year in a TNS mode survey for 2003.

Reliance Group revenue is equivalent to about 3.5% of India’s GDP. The group
contributes nearly 10% of the country’s indirect tax revenues and over 6% of India’s
exports. An investor family of over 3.1 million- India’s largest trusts reliance.

The Reliance Group Companies include:
     Reliance Industries Limited.
     Reliance Capital Limited.
     Reliance Industrial infrastructure Limited.
     Reliance Telecom Limited.
     Reliance Infocomm Limited.
 Reliance General Insurance Company Limited.
 Indian Petrochemicals Corporation Ltd. And
 Reliance Energy Ltd.
NexGen Technology

Reliance India Mobile brings you CDMA 1X-a 3G ( third generation ) technology with
superior voice quality ( less call drops, reduced background noise, minimal interference
with over 135 million subscribers worldwide, and the number is increasing exponentially.

The advanced design and architecture of Reliance India Mobile network effectively
integrates high bandwidth wireless data capability of CDMA 2000 1X technology,
custom made software and hardware on Reliance India Mobile handsets, powerful servers
running on indigenously developed Reliance Application Platform (RAP) and Reliance
Infocomm’s nation wide optic backbone with terabit capacity.
With Reliance India Mobile, you can also enjoy ‘always on’, high-speed internet access
(up to 144 kbps) on your mobile phone or laptop.
               Competitive Situation of Reliance Infocomm

On October 1, 2000 the department of Telecom Operations, Government of India because
a corporation and was christened Bharat Sanchar Nigam Limited (BSNL). Today
BSNL is the No. 1 Telecommunications Company and the largest Public Sector
Undertaking of India with authorized share capital of $ 3600 million and net worth of
$13.85 billion. It has a network of over 45 million lines covering 5000 towns with over
35 million telephone connections.

With latest digital switching technology like OCB, EWSD, AXE-10, FETEX, NEC etc.
and widespread transmission network including SDH system up to 2.5 gbps, DWDM
system up to 80 gbps, web telephony, DIAS, VPN, Broadband and more than 400,000
data customers, BSNL continues to serve this great nation.

Its responsibilities include improvement of the already impeccable quality of telecom
services, expansion of telecom network, introduction of new telecom services in all
villages and instilling confidence among its customers.

BSNL has managed to shoulder these responsibilities remarkably and deftly. Today with
over 45 million line capacity, 99.9% of its exchanges digital, nation wide network
management & surveillance system ( NMSS ) to control telecom traffic and over
4,00,000 route Kms of OFC network, Bharat Sanchar Nigam Limited is a name to reckon
with in the world of connectivity. Along with its vast customer base, BSNL’S financial
and asset bases too are vast and strong. Consider the figures, as they speak volumes on
BSNL’S standing.
                         Mission and Vision of BSNL

Detailed study of the company

Now let’s have closer look on the BSNL so first about the company on 11 April 1989
telecom commission was set up by government of Indian through a notification.
The Telecom Commission and the Department of Telecommunications are responsible
for policy formulation, licensing, wireless spectrum management, administrative
monitoring of PSUs, research and development and standardization/validation of
equipment etc.
It was on October 1, 2000 that the department of telecom operations became a
corporation and was christened BSNL (Bharat Sanchar Nigam Limited ). It is the largest
telecommunication company today.
BSNL has got fixed assets valuing more than Rs. 90,000 crores, which are in the form of
land buildings, cables, apparatus & plants etc.
The department of telecom operations now known as BSNL has shown sustained growth
in the last 15 years. The growth rate in 2003-04 was 15%.


To provide world-class telecom services on demand using state of all technology for all
our valued customers.
                          Vision – 2004

 BSNL becomes the largest telecom company in south East Asia with most
   modern state of technology offering world-class services.
 Give paramount importance to customer care.
 To expand the services of the company in all area through franchisees
   arrangement as well as alternate means.
 To create a focused business orientation by suitably bringing synergy between the
   marketing and business development activities towards meeting customer’s
 To expand broadband, leased lines, cellular, WLL services with state of art
 To focus connection for communication for masses by expanding the services of
   pcos, internet dhabas etc.

The department of telecom operations now known as BSNL, has shown sustained
growth in the last 15 years. The growth rate in 2003-04 was 15%

 R        30000
 P        25000
 E        20000
 N        10000
 C         5000
 O            0
 R                0   94- 95- 96- 97- 98- 99- 00- 20 20
                      95 96 97 98 99 00 01 01- 02-
                                                  02 03
                   PCO Market-An Overview

 STD PCO booths, as a franchisee model, started in 1987.
 Currently there are 16.55 lac PCOs in India. Amazing reach of one PCO for every
   2 sq. kms.
 Generates direct employment to 1.3-1.5 million people.
 Total PCO revenues at Rs. 4,100 Cr. Contributes to 9% of telecom revenues and
   24% of long distance revenues.
 The break-up of PCOs is:

                                    39%           Local PCOs
                                                  STD PCOs
      60%                                         Highway PCOs

Is PCO a sustainable business?

The reasons are:
     Tele-density of India is only 7%. Still 93% of people demand on PCOs for
       their communication needs.
     The CAGR of PCOs is 25%.
     Reduction of PCOs revenues is off-set by increased MoU and higher
       commission structure.
                            Reliance PCO Product

Salient features:

   Based on prepaid payment mode.
   Higibility-Indian nationals.
   Order of allotment First come first serve basis.
   Based on intelligent network ( IN ) platform. First time in India that a PCO
     product is launched on IN platform.
   PCO connection is through Fixed Wireless Terminal ( FWT ).
   Being wireless, reach (coverage) is excellent and installation is very quick.

What is PrePaid?

   Prepaid is a payment method in which payment of money is made upfront through
     recharge cards for certain fixed talk time (usage) for a given period.
   As the card is used charges get deducted-Online and real time.
   Self service to ensure that all customer’s need are just a few buttons away.

            Interactive voice response (IVR)
            Self pay through recharge card.
Why Prepaid?

Win-win for customer:
    No deposits.
    Flexibility and convenience of availability and recharge.

Win-win for LBA:

    Continous revenue generator.
    Low investment in space/logistics.
    Low selling effort a market pull product.
    Selling effort only for acquisition-recharge card sales are a by product.
Value Proposition to PCO operator

     Very attractive commission structure.

     No security deposit/bank guarantee for the connection.

     Up front and inbuilt commission at the time of buying the recharge cards.

     End to End service provider.

     Additional incentives on the achievement of billing.

     No restriction on number of lines.

     No additional investment required for the PCO billing machine.

     Dedicated customer care desk.

     No need to stand in long Queues for payment of bills.

     Monthly fortnightly call detail statement.

     Balance and validity expiry notification by way of announcements.

     Additional revenue streams from products such as e-mail, voice etc. in the future.

The benefits of FWT are as follows:
      1. Instant connection : ready to use.
      2. No “line dead” problems, especially in rainy season since it operates
          on wireless technology.
      3. Secure and tap-proof, that is conversions cannot be tapped, since its
      4. PCO operators can attach the PCO machine/any normal phone
          instrument to the connections.
      5. 2 Phone instruments can be attached on the same FWT for use as one
          line with parallel connection.

LGLST 250-Features at a glance
      1. 2RJ-11 ports for parallel connection.
      2. Inbuilt battery backup.
      3. 2 hrs of talk time or 24 hrs of standby.
      4. Calling line identification.
      5. Speed dial.
      6. Call conference.
      7. Call waiting.
                        Comparison with competition

Parameter                            Reliance   competition
Prepaid on intelligent network(IN)   Yes        No
Upfront commission                   Yes        No
Faster rotation of money             Yes        No
Same day installation                Yes        No
On line charges for every call       Yes        No
Door step call delivery              Yes        No
Dedicated help line                  Yes        No
Security Deposit/bank guarantee      No         Yes
Installation charges                 No         Yes
Minimum billing requirement          No         Yes
Reconnection fees                    No         Yes
                             Research Objective

   In find out:
       1. Market potential of Reliance prepaid PCOs.
       2. What influences Customers to buy the product.
       3. Comparison with BSNL.
       4. Comparison environment.
       5. Satisfaction level of existing customers.

                             Research Methodology

The methodology adopted for collection of data as well as the various applicable policies
of the companies through:

Secondary data

Secondary data provided the knowledge about company in terms of facts and figures. It’s
a data which are already been collected by someone else.

      Websites
      Books
      Magazines
      Newspaper
Primary data

Primary data helped in validation of the knowledge gathered from secondary sources.
Primary data are those which are collected afresh and for first time. It is original in
nature. The method adopted for it:

      Interview
      Questionnaire
Sampling size

An integral component of a research designing is the sampling plan. Specifically it
addresses these questions.

      Whom to survey.
      How many to survey.
      How to complete it.
      Which place this survey will be taken place.

Sample refers to a part taken from a population. It the sample is taken carefully then
conclusion can be extrapolated to entire populations an generalization could be made.
In order to collect the sample I made cold calls on PCOs and from there the information
could be gained. This was the random sampling process. This sample was chosen because
the product was related to PCO and only their information could have helped me to arrive
at some conclusion. The process of random sampling was chosen because only through
this the information collected was free from any type of biased ness.
While deciding the sample I faced certain problems since covering the entire population
was a though job and deciding a certain number of people who are also the true
representative of population is at per with it. So a lot of hard work was required to make
sure that sample was a true representative of population.
                               Target audience

The survey was conducted on the PCO owners having Reliance prepaid FWT {Fixed
Wireless Terminal} connection across Lucknow city.
Simple size

That a particular research design is always the best. Different research design provides
the research with the capability to mach a research problem with an appropriate.

We can classify research design into the following three kinds :

    1. Exploratory research
    2. Descriptive research
    3.   Casual research

My project was about a new product that was launched in market and my major task was
to generate hypothesis for further studies. Therefore I choused Exploratory research for
the project.

Exploratory Research

This is also termed as formulative research studies. The main purpose of such studies is
that of formulating a problem for more precise investigation or of developing the working
hypothesis from an operational point of view.
The method used in Exploratory studies can range from the usual surveys, to focus
groups, to consultations with experts in the field, to analysis of selected.
                             Research instruments Used

During my survey I used questionnaire as the research instrument.

A sample of 100 consumers were covered who had got Fixed Wireless.

Terminal installed at their premises. That is they were having Reliance Prepaid

Interviews were connected with PCO owners having Reliance connection. Such
interviews helped me to ascertain the difference in perception and attitude towards
Reliance’s Fixed Wireless Terminal, the concept of Prepaid PCO and its competitor
BSNL. The questionnaire was filled parallel to the interview.
                          What sets Reliance apart
                                 from others?

1. Clarity of vision over the long term.

2. No divergence from integration, backward and forward and value addition.

3. Precise understanding of project implementation.

4. World-class world-scale plants, which assures that Reliance is competitive on
   global scale.

5. Empowerment of the work force and spotting the best for the particular project.

6. Aggressive growth backed by conservative financial management.

7. Over the year Reliance place to tap a market of over one billion consumers with
   an integrated portfolio of energy, telecom, power and financial services.

Every piece of work has some limitations and this was no different. As the work
revolved around people and further around asking them about their perceptions, their
opinion were obviously multifaceted. The limitation of the key limitations thus were :

    Since the product was new, the users were not very much aware of the
       features and hence were many were fudging their replies.
    As the questionnaire required lot of information, the interview required lot of
       patience from both parties, and most respondents were pressed of time.
    Many customers were having their PCOs as the side business, hence I was
       unable to meet the owners, and the hired operators were often unaware of the
    The competitor of the company i.e. BSNL is a Government owned company
       hence brand loyalty was mire towards it.
    Last and not the least, many customers were dissatisfied by the services of
       Reliance India Mobile (RIM), hence they were comparing it with company’s
       prior market images.
Distribution channel of Reliance Infocomm Service

Reliance Industries Limited has establish a wide marketing network for distributing its
product in India. The distribution network comprising Regional offices, Area office,
Depots, Dealers and Agent spread throughout the country, ensures that the customer,
wherever located is served efficiently.

Basically the Reliance follows the same pattern of Distribution Network but for some of
its companies it is more product specific like in Reliance infocomm:

                             Regional offices

                              Area offices

Sis Gomti                  Local Depots (LBA)                  Trans Gomti

   Reliance Webworld                               Dhirubhai Ambani
                                                   Entrepreneur (DAE)


     Mr. Sandeep Srivastava (Circle Head & Project co-ordinator)

                  Mr. Faraz Kilvari (Town Head)

  Miss. Ruma Sinha                                 Mr. Arvind Chauhan
(Customer care Head)                               (Commercial)

  Mr. Vivek Tiwari                           Mr. Girish Subhramanayam

First lets have a look on the type of market exist in Lucknow which was my projects
field. For ease I had divided the market into different segments so that analysis could be
done and conclusion could be drawn.

On the basis of business

                   monthly income from the business

                    15%                     8%
                                                          10%             >20000

On the basis of business I divided market into 5 different parts they are as shown above
0-5000, 5000-10000, 10000-15000, 15000-20000 and 20000 and above.
The research shows that maximum no. of pcos have the business between 10000 to 15000
about 45% followed by 5000 to 10000 about 22% then comes more than 20000 about
15%. Next come 15000 to 20000 about 10% lastly comes less then 5000, which are about

Broadly we can divide their business in two parts:

      Conferencing
      Phone Calls
Business elements ( high value PCOs )

                                                   37%           Phone calls



Let’s try to fond what each of this elements contributes, the figure above shows that in
high value PCOs there is big contribution by conferencing to the owners business.
                      On the basis of weight to business

     30                                                                      series

             main              side

Here weight means the type of the business the pco owners are having. The above figure
shows that 38% people treat pco’s as their main business and 62% people treat it as side
Other business, which run along with the pco’s, are cyber café, photo shops, general
stores, music places, Xerox.
                      On the basis of duration

                         Business Span

                                                22%                <1
                                                                   1 to 5
                                                                   5 to 10
        61%                                       13%              > 10

The above figure shows that about 61% of the population are running their PCOs from 5
to 10 tears, next were about 22% who were having their business for the last 1 to 5 years.
This is followed by 13% of people who had their PCOs for more than 10 years and lastly
there were only 4% who had their PCOs for the last few months i.e. less than 1 year.
Reliance and BSNL a comparative study

Let’s have a comparison of the two pco service providers of the Lucknow area. That’s
BSNL and Reliance. Let’s have a look on what the research finding say about the two
service providers. In this study we will cover.

    Market shares each of the two hold.
    The satisfaction level of customers of both service providers.
    Services that motivates customers to choose a certain service provider.
    What are the major problems customers are facing?
    Their relative strengths.
    Their weaknesses.

This study will also have a focus on various other aspects also which are of great
importance to understand market dynamics and to arrive and ascertain some conclusion.
So let’s start from the market share of each of the company.
Market share of Reliance and BSNL




The figure above shows the market share of Reliance and BSNL in Lucknow. Till now as
the research finding reveal in Lucknow Reliance has captured good 18% of market.
Being the sole service provider BSNL certainly has a major 86% market shares.
BSNL satisfaction level

                   Satisfaction level of BSNL PCOs


                                      51%            No
                                                     Partially satisfied

Out of the total population using service and were covered in the research process it was
observed that 51% are fully satisfied that is they at all have no problems. About 30% are
the people who have are not satisfied with their BSNL connections and about 19% people
are partially satisfied with it.

Reasons for dissatisfaction:

     STD calls connectivity problems.
     Line dead problems complaint of which is unheard for weeks and as a result the
        business is affected.
     Connectivity to reliance and hutch is tough.
     Call jump problems.
Reasons for partial satisfaction:

    Billing problems.
    Billing meter problems.
    Phones normally are engaged.
    Lower commissions.
    Line man related problems.
    Security deposits.

Apart from the above said there is one major problem of physical strain as in any case
whether it is depositing the bill to lodging complaints the customers has to be on his toes
and he has to ensure that each.
And every thing is done so that his business in not busy with the problems instead it is
yielding profits for which it was started.

Major problem distribution

From the above figures the conclusion can be drawn that 30% of the customer who are
fully dissatisfied from their BSNL connections can be targeted and can be converted into
Reliance prepaid PCOs. 19% of people who are partially satisfied if given with better
potions could be changed to Reliance. Rest 51% who are fully satisfied a great deal of
efforts and pin pointed policy will be required to tap them.
Mode of awareness

During my research the main point, which I wanted to know, was how did PCO owners
came to know about Reliance prepaid PCOs.

                Awareness of Reliance PCO


                                                       News Paper
                                                       Word of mouth

                                                       Sales team of
         70%                                           reliance

The research gave the conclusion that about 70% of the population got awareness about
the product through the sales team, which was followed by 22%.
Who get the information through their friends, business associates. The remaining 8%
gathered information through newspapers.
When it was asked that which newspaper is read the following conclusion was drawn

              Newspaper Read Across the City



      30%                                                         Series1
      10%                                                   3

















About 48% of the total population read Dainik jagran. 21% read Hindustan Time, 18%
read Rashtriya Sahara, 10% read Times of India and only 3% read Aaj.
Hence Dainik Jagran would the best option to advertise in.
PCOS operating only with Reliance connection

With the passage of time things have changed. If you will provide customer better option
then certainly he will go for it. And that has happened. The figure below says it all.




The above figure clearly illustrates on the basis of research findings that there are 7% of
PCOs especially once which have started new are running only on Reliance connection.
Is Commission appealing?
To capture a market it is necessary that the new company should something to its
customer which more profitable than the other existing company.
Reliance Infocomm took the same criteria and announced 30% commission to its
customers as comparer to BSNL which is giving only 20%.

                                  Best Commission

   70             95
   60                                                                          BSNL
   20                                                                    Reliance
   10         5                                                   BSNL

The research shows a marvelous response. According to research findings about 95% of
the PCO owners were very happy with Reliance commission. Only 5% of them were
satisfied with the BSNL commission.
                                           30%               No security deposit
                                                             Tariff Rates

A big 48% accepted the offer because of the higher commission paid by the company.
18% found tariff rates to be better as they Reliance gave the same rates as per BSNL rates
but giving them more profit. Then 30% accepted the offer mainly because there was not
any security deposit and no blockage of money. This % also constitutes easy availability
of connection without going through the lengthy and cumbersome procedures. Only 4%
was interested in accepting offer because they were loosing the customers due to the poor
connectivity between Reliance and BSNL.
Satisfaction level

Post installation research was carried on to find the satisfaction level of the people and if
they are facing any problem try to find that problem so that proper measures could be


                                                        Nearly satisfied
                                                        Fully satisfied


Research finding revealed that nearly 72% people are fully satisfied with says the success
story of Reliance. 24% people are nearly satisfied as they have minor problems and just
4% people were only dissatisfied.
Major reasons for dissatisfaction

                                                     Late installation

                                                     Recharge Coupen
               6% 6%          13%                    problem
         22%                                         Voice clarity

                                 53%                 Battery backup

                                                     STD calls

Out of the people who were dissatisfied of initial or the very first step that is late
installation of connection in some cases it took time as much as one month. Things like
recharging coupon availability and sometimes STD calls Connectivity problems has led
to unrest among users. Demand for unavailable services like internet and fax was also
Are Reliance pcos growing?

Yes certainly, Reliance pco concepts was introduced in Lucknow on 18th March 2004 and
the first connection was installed on 25th March and since then it has been a huge success
the graph below says it all.

Performance since its launch ( Lucknow )

                                                   545%         556%


    300%                                                                        Series1

    200%                             209%

                  March         April        May          June
UP East (Kanpur, Agra, Lucknow)

    1400%                                   1372%
     600%                         587%
                March       April      May        June

Both the above graph shows the continuous upwards movement indicating market
                           S.W.O.T. Analysis


 1. India’s most famous and biggest group.
 2. Based on latest technology.
 3. Good product quality with higher commission.
 4. Price offered is effective and lesser then the competitors.
 5. Good customer satisfaction rate.


 1. Low market share.
 2. Below par installation process.
 3. No attention is being given to improve distribution.
 4. After sales-services not up to customers satisfaction.


 1. New improve product.
 2. Attractive sales promotion schemes.
 3. Customized product for high value PCOs.
 4. Better and faster distribution channel so that promises are met.
 5. If provide product at a lower cost or on installments to the low value PCOs.

 1. If BSNL develops a superior product.
 2. If BSNL starts offering greater commission.
 3. If as the rumors are that the BSNL connection will be cut off from the PCOs if
    any Reliance connection will be found, such a legislation makes way.
                          General Recommendations

 Though direct sales from the company are a good idea but along with it should
   also go for the advertisements in print and electronics media.

 Proper training of the sales people to explain the new concept and communicate
   its features and benefits properly to the PCO operators.

 Maintain the high commission scheme, as it is the key facto for them to make its
   place in the market.

 Maintain the high level of offer sale services.

 Should introduce internet and fax facility in the product.

 Should introduce recharge coupons of lesser amount too.

Reliance Infocomm provides knowledge workers a platform to develop and offer
technology solutions for all the professions and institutions across the world. It has
catalyzed India’s formidable software talent to develop products for the global market,
and realize substantially higher value for their efforts.

Reliance has transformed the way India communicates with and connects to the rest of
the world. The way each and every citizen talks over phone, sends messages, listens to
music, news, videos, receives and uses information. Connects to the internet, while on the
Not only for classes but the company has also considered about the benefits for the
masses. PCO business contributes a lot in Indian economy. By introducing the prepaid
connection the company had helped the PCO openers in saving their time and earning
more revenue.
“With an ‘every time, every place, every device’ network ethos, a sweeping span of
service and a new breed of entrepreneurs, Reliance Infocomm will prepare India to take
on the mantle of leadership in the knowledge age”, says Mr. Mukesh Ambani, reflecting
on the goals of this major initiative channel partners.
     Market potential and Customer Satisfaction of Reliance
              Infocomm - PCO Business in Lucknow City

Name of the Entity :----------------------------------------------------------------------
Address                 :----------------------------------------------------------------------
Phone no.               :----------------------------------------------------------------------

    1. Since how long are you into this BSNL PCO ?
            a) <1 year            [ ]           b) 1-5       year [ ]
            c)     5-10 year      [ ]            d) >10       year    [ ]

    2. How many BSNL lines do you have?
              a) Local:                             b) STD:

    3. This business is helping you as :
              a)    Primary/ main business          [ ]      b) Side business         [ ]

    4. What is your monthly income from this business?
              a)     >5000                 [ ]               b)      5000-10000         [ ]
              c)     10000-15000           [ ]               d)      15000-20000        [ ]
              e)     <20000                [ ]

    5. Are you satisfied with BSNL services?
              a)     Yes          [ ]      b)     No         [ ]      c)    Partially satisfied   [ ]

    6. How did you came to know about Reliance PCO services?
              a)     Yes          [ ]               b)    No          [ ]
7. Which service provider gives you best commission?
         a)   BSNL          [ ]               b)    Reliance            [ ]

8. When Customer walks, in which network do you prefer he should make a call?
         a)   BSNL          [ ]               b)    Reliance            [ ]
         Why? ---------------------------------------------------------------------------------

9. Are you satisfied with your LBA’s ( Local Business Associate ) services ?
         a)   Yes           [ ]               b)    No         [ ]

10. What is the time lag between call dialed and call connected in :
         a)   BSNL          [ ]               b)    Reliance            [ ]

11. Which service provider gives you best customer care service ?
         a)   BSNL          [ ]               b)    Reliance            [ ]

12. What are your views about the prepaid PCO connection ?
         a)   Excellent [ ]          b)    Good       [ ]      c)    Average [ ]
         d)    Poor         [ ]      e)    Very Poor           [ ]

13. How many recharge coupons do you use in a month ?

14. According to you which feature is best in Reliance PCO ?
         a)   No security            [ ]              b)    Tariff rates        [ ]
         c)   Connectivity           [ ]              d)    Commission          [ ]
15. Are you satisfied with service rendered by Reliance?
         a)   Yes         [ ]     b)    No         [ ]     c)   Partially satisfied   [ ]

         if no, then please specify the reason ?
         a)   STD problem         [ ]              b)    Late installation   [ ]
         c)   Battery backup      [ ]              d)    Recharge coupon     [ ]

16. Any suggestions ?

For the successful completion of the project work, the following were the books, journals,
websites that were consulted and taken help of :

Books :

   1. Management a global prospecting : Wherich & Knootz.
   2. Marketing Management – Eleventh Edition : phillip kotler.
   3. Marketing Research by Rajendra Nargundkar.
   4. Marketing methodology by C.R. Kothari.
   5. Marketing Research by Rajan Saxena.

Journals :

   1. Business Today
   2. Economic Times
   3. Business World


                       News Paper:

1. Times of India
2. Economic Times

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