RELIANCE MANAGERS

VENKAT
NEHA
VASUDHA
KAVITA
YATIN
MARKET SWOT ANALYSIS
TELECOMMUNICATION SEGMENTS
INDUSTRY OVERVIEW - TELECOM
 Subscriber growth
180 164
CAGR - 38 %

120 98
76
60 53
44

0
2002 2003 2004 2005 Aug-06
 Subscriber Growth - Mobile vs Fixed
175

140 143
Mn. subscribers

105

70 52
42 43
38
35 41 41
7 13 34
0
2002 2003 2004 2005 2006
Fixed (mn. subs) Mobile (mn. subs)
Segment Cellular reach (2003-04) Cellular reach (End 2006 - Est.)

Locations Population Locations Population

Urban ~ 1700 of 5200 200 million ~ 4900 towns out 300 million
towns of nearly 5200
towns

Rural Negligible Negligible ~ 350,000 out of 450 million

607,000 villages

ON 31ST AUGUST, 2008 –

TOTAL CELLULAR
SUBSCRIBERS = 30,02,97,160
MAJOR PLAYERS IN THE MARKET
 Subscribers Jul 06
Share (%)
(mn)
Company Presence

Fixed Mobile Fixed Mobile

BSNL Government owned. Has ramped up GSM services. National presence 37.4 17.7 74.7% 19.6%
(except Mumbai and Delhi)

MTNL Government owned. Operates in Delhi and Mumbai. 3.8 2.0 7.7% 2.3%

Integrated operator, with presence in all sectors. Largest mobile services

Bharti 1.4 19.6 2.7% 21.7%
provider.

Integrated operator. Plans expansion of GSM network apart from being

Reliance 3.0 17.3 6.0% 19.2%
the largest private CDMA operators.

Hutch Pure play GSM operator in 11 circles.   15.4   17.0%

IDEA Pure play GSM operator in 6 circles   7.4   8.2%

Integrated operator (along with VSNL) with presence in all segments.

Tata Teleservices 4.0 4.9 8.0% 5.4%
Provides CDMA services in 20 circles

Operates in 2 circles. Announced Plans to expand GSM footprint in North

Aircel   2.6   2.9%
and North east

Spice Pure play GSM player in 2 circles   1.9   2.1%

Others      
0.4 1.4

Total   50 90    
 A DREAM COMES TRUE…
“MAKE THE TOOLS OF INFORMATION AND
COMMUNICATION AVAILABLE TO PEOPLE AT AN
AFFORDABLE COST. THEY WILL OVERCOME THE
HANDICAPS OF ILLITERACY AND LACK OF
MOBILITY”

- DHIRUBHAI AMBANI
STARTED ON 28TH DEC, 2002 ON DHIRUBHAI
AMBANI’S 70TH BIRTHDAY.

IT WAS CALLED RELIANCE INFOCOMM, NOW

KNOW AS RELIANCE COMMUNICATIONS.

FIRST AD FEATURED DHIRUBHAI AMBANI AND

MUKESH AMBANI.

THE MAIN AIM WAS “TO PROVIDE MOBILES TO

EVERYBODY”

INTRODUCED CDMA TECHNOLOGY IN INDIA

 PENETRATION PRICING
PRICE SET TO ‘PENETRATE THE MARKET’

‘LOW’ PRICE TO SECURE HIGH VOLUMES

TYPICAL IN MASS MARKET PRODUCTS –

CHOCOLATE BARS, FOOD STUFFS, HOUSEHOLD
GOODS, ETC.

SUITABLE FOR PRODUCTS WITH LONG

ANTICIPATED LIFE CYCLES

MAY BE USEFUL IF LAUNCHING INTO A NEW

MARKET
1. DHIRUBHAI AMBANI PIONEER OFFER
FREE DIGITAL MOBILE PHONE
UNLIMITED FREE INCOMING CALLS
BILLING AT 15 – SECOND PULSE RATE
ONE – TIME DEPOSIT OF RS. 3000
TELEPHONY CHARGES WERE RS. 600 PER
MONTH
OUTGOING CALLS AT 10 PAISE FOR 15 SECONDS
LONG DISTANCE CALLS AT 40 PAISE PER
MINUTE TO ANY RELIANCE PHONE ONLY
FREE TEXT MESSAGING
2. MONSOON HUNGAMA SCHEME
CAME OUT IN 1ST JULY, 2003
CUSTOMERS WILL GET A MOBILE AT RS.
501
MONTHLY RENTAL OF RS. 200
BIGGEST PROMOTIONAL SUCCESS IN
THE HISTORY OF MOBILE PHONES
1 MILLION HANDSETS SOLD IN 10 DAYS
PRICES OF GSM HANDSET MOBILES FELL
3. PRE – PAID OFFERING
INTRODUCED IN FEB 2004
GAVE CUSTOMERS FREE RECHARGE
VOUCHERS NEARLY THE COST OF THE
HANDSET
CUSTOMER HAD TO PAY RS. 3500 FOR THE
HANDSET
FREE RECHARGE VOUCHERS WORTH RS.
3240
AUTOMATIC ROAMING IN INDIA WITHOUT
ANY EXTRA CHARGE
NO. OF SUBSCRIBERS IN MILLIONS
CUSTOMER GENERATION

DHIRUBHAI AMBANI ENTREPRENEURSHIP

PROGRAM

ADVERTISING

R WORLD

PRODUCT INNOVATIONS

CUSTOMER SERVICE
CRITICIZED FOR CIRCUMVENTING
EXISTING TELECOMMUNICATION POLICIES

MONSOON HUNGAMA GAVE RISE TO

LOGISTICS, BILLING & COLLECTION
PROBLEMS

EMERGENCE OF LEADERSHIP CRISIS

TWO YEARS OF LOSSES

STRONG MIX OF OWN & OUTSIDE CHANNELS
INCLUDING DIRECT SALES AGENTS, RETAILERS,
WEBWORLS & WEBWORLD EXPRESSES

OBTAINED LICENSES TO OPERATE IN 20 OF THE

EXISTING 22 CIRCLES

ACQUIRED FLAG TELECOM FOR US$ 211

MILLION

PROFIT OF RS. 510 MILLION IN 2004-05

MOBILE REVOLUTION BROUGHT ABOUT BY
RELIANCE

EXPANSION TO 640,000 VILLAGES AND OVER

5000 CITIES & TOWNS

PROVISION OF HIDGH SPEED NETWORKS

PROVISION OF THE LATEST

TELECOMMUNICATION FACILITIES TO EVERY
INDIAN AT THE PRICE OF A POST CARD