A PROJECT REPORT ON“CUSTOMER SATISFACTION TOWARDS RELIANCE JIO” SUBMITTED IN THE PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MARKETING) (2015-2017) PONDICHERRY UNIVERSITY OF LOYOLA COLLEGE School of Commerce and Economics Building, Loyola College, Chennai - 600 034 Under The Guidence Of: Submitted By: PROF. AUSTIN XAVIER A DARSHAN KUMAR PARLESHA 0215360018 1 STUDENT DECLARATION This is to declare that Project report on “Customer satisfaction towards Reliance Jio” is a record of genuine work done by me under the guidance of PROF. AUSTIN XAVIER A in the partial fulfillment of the requirement for Master of Business Administration. Signature of the Student: Student’s Name : DARSHAN KUMAR PARLESHA M Roll No. : 0215360018 2 ACKNOWLEDGEMENT I got support in many ways from many people while conducting this report. First, I am deeply grateful to my project guide, PROF. AUSTIN XAVIER A who helped me with full devotion and always supported me earnestly whenever it was needed. Without his guidance, support and academic inputs this report was not possible. This Training report could never have seen the light of the day without his co-operation. I am thankful to all of them for giving me their valuable time. I am also thankful to my friends who were the biggest support for me in completing this project. They manifested their great interest in my research work also and always tried to make things easy for me. A word of gratitude goes to my family members whose love; affection and understanding have enabled me to complete this endeavour with ease. At the end, I thank to Almighty for giving me courage and strength to conduct this project report. DARSHAN KUMAR PARLESHA M 3 PREFACE Master of Business Administration (M.B.A.) programme is one of the most reputed professional courses in the field of management. This course includes both theory and its applications as per contents of its curriculum project report and it is an integral part of Master of Business Administration programmed of Institute of Management and Research. It gives exposure to our practical knowledge and also to get interact with the various aspects of present market conditions. Each student is required to undergo practical training, after the completion of second semester examination. The Training project programmers are designed to give the managers the future of the corporate happenings and work culture. The real life situation is really different from the stimulated exercise enacted in an artificial environment inside. The Training project programmers are designed, so that the managers of tomorrow be ready to deal when the time comes to take responsibilities. The Training project report presented here is a result of my hard work. This project helps me to learn about of working in telecom sector. 4 TABLE OF CONTENTS S.NO DESCRIPTION PAGE NO A STUDENT DECLARATION B ACKNOWLEDGEMENT C PREFACE 1. INTRODUCTION 6-9 2. SCOPE & OBJECTIVES OF STUDY 10-11 3. REVIEW OF LITERATURE 12-14 4. INDUSTRY PROFILE 15-19 5. COMPANY PROFILE 20-35 6. JOURNEY OF RELIANCE JIO 36-39 7. MAIN PLAYERS IN THE MARKET 40-44 8. COMPETETION WITH RIVAL COMPANIES 45-58 9. RESEARCH METHODOLOGY 59-61 10. DATA ANALYSIS & INTEPRETATION 62-72 11. FINDINGS 73 12. LIMITATIONS 74 13. CONCLUSIONS 75 14. SUGGESSIONS 76 15. BIBLOGRAPHY 77 16. QUESTIONNAIRE 78-82 5 INTRODUCTION TELECOM SECTOR After the globalization of India economy in 1991 the telecommunication sector remained one of the most happening sectors in India. The recent years witnesses rapid and dramatic changes in the field of telecommunications. In the last few years more and more companies both foreign, domestic, come into cellular service, service market and offers large number of services to the people. A consumer may be referred to anyone engaged in evaluating, acquiring, using or disposing of services which he expects will satisfy his wants. If any producer makes out the marketing programmer ignoring the consumer preferences, he cannot possibly achieve his ultimate objectives. A manufacturer must plan his production and distribution to suit the consumer’s convenience rather than his own. Therefore a marketer must know more and more about the consumers, so that the products can be produced in such a fashion to give satisfaction to them. In the year of 1989, the number of cell phone users in India was zero. In the year of 1999 the number of cell phone users has gone up by 13 lakhs. In the year of 2000 the number of cell phone users has risen by one million. Indian telecom sector added a staggering 227.27 million wireless mobile users in the 12 months between March 2010 and March 2011, while the overall tele-density has increased to 81.82% as of 30 November 2015, and the total numbers of telephone phone users (mobile & landline) have reached 1009.46 million as of May, 2015. Now currently telephone subscriber (mobile & landline) is 1058.01 million (May 2016). The company is reconfiguring to meet the growing demand for mobile services. It will differentiate our mobile services from our competitors through ongoing investment in technology, distribution and customer services, providing both a great customer experience and competitive value. 6 TELECOM SECTOR SUBSCRIBERS BASE 7 8 OVERALL SUBSCRIBER BASE 1200 1058.86 951.3 987.3 1000 898 933 846.3 800 621.3 600 429.7 400 200 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Subscrib… GROSS REVENUE FROM TELECOM SECTOR IN INDIA 2500 2338.2 2125.9 1954.4 2000 1716.6 1523.6 1579.8 1500 1253.7 1217.9 1000 500 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 INR (in billion) 9 SCOPE OF STUDY This study covers introduction of telecom industry, reliance jio company profile, products and services provided by reliance jio, competition in market, problems faced by the company, vision and strategies of the company, journey of reliance jio, milestones achieved and future plans of reliance jio. The study makes effort to ascertain the satisfaction level of customer of Reliance JIO through survey, so that company would be able to come up to the expectation level of its customer. The company can come up to the expectation only by finding out the problem that customer are facing during their purchase of Reliance JIO products. The subject has been taken for the research as it plays key role in the success of Telecom sector. No company can think of selling their product without having satisfied customer. No company can survive in long run without coming up to the satisfaction level of customer. In short it is the level of satisfaction that is link between end-user and company. As long as the company is able to satisfy its customer, customer would remain in the bracket of loyal customer. Hence it is very essential to understand the customer satisfaction and to measure the satisfaction level time to time as there is always scope of improvement. The research will also be beneficial in analyzing the overall market position of the company and measures which should be adopted by the Reliance JIO to increase their market share in India. 10 OBJECTIVES OF STUDY To study the importance and development of the telecommunication industry in India. To study the customer satisfaction level on Reliance JIO products & services. To find the market potential and market penetration of reliance jio products and services. To find out the Market share of main players in telecom industry. To study on total subscribers base of telecom sector in India. To study on need and usage of internet data in Indian telecommunication market. To study on competition and problems faced by telecom companies in India. 11 REVIEW OF LITERATURE CHRONOLOGICAL ORDER Abhishek Kumar Singh and Malhar Pangrikar (2013) did a study titled “A Study Report, to Find out Market Potential for 4g Businesses in Pune”. The Report is all about “Study of market potential for 4G business in pune” and also to know about the customer perceptions and attitudes towards their current service provider. Satisfaction level of the customers was also judged. The customer expectations were analyzed thoroughly. Major factors considered in research are: what are the needs of the companies based on the data services usage, major player in internet services, and support to customers. The research was conducted on companies mainly from Industries like IT, Education, Manufacturing and others which are located in Pune city. It is clear from the survey done that Reliance & Tata are Leading Internet service Provider; they are providing products like Data Card, Broadband etc to the corporate end users. Most of the companies are getting internet speed form 1MBPS-4MBPS. Most of the companies are having good perception about 4 G and are willing to switch to it from their current service provider. Speed of 4G is around than 30 to 35 MBPS, is going too boom the Market. Because majority of the companies are facing Speed problem with their current ISP. Irfan Ullah (2012) Did a study titled“A study and analysis of Public WiFi”. The objective of this survey is to compare different technologies with WiFi in terms of cost factor, bandwidth and performance factor, and technology implementation factor The goal of this thesis is to analyze and compare different wireless network technologies with as focus on availability, number of nodes, total cost, end-user cost, vendor cost, range, reliability and security. The goal is to compare Local Area Network Wi-Fi technology (IEEE 802.11 a/g) with mobile wireless technology like 3G, 4G and LTE. Ayvazian, B., 2010 did a study on the other backs LTE – “Long Term Evolution (LTE) has entered the mobile market as 3G has achieved wide deployment by mobile operators and subscriber adoption worldwide. Mobile broadband traffic is exploding at 100 percent per year 12 in many markets, largely due to the growing popularity of 3G-enabled smart-phones, laptops, and tablet computers. To address this growing demand for mobile broadband, the 3 rd Generation Partnership Project (3GPP) standards body developed LTE as the next logical technological step for over 4 billion mobile subscribers on existing 3GPP and 3GPP2 networks. 7 On the one hand, LTE serves as the evolutionary path from 3G to 4G, transforming the mobile industry by supporting ultra-fast broadband, significantly improving the user experience, substantially improving end-user throughputs, increasing sector capacity, and reducing user plane latency. LTE is designed as a simple and flat, all-IP data-centric network architecture resulting in low operating costs for operators. LTE has an extremely low latency between network elements and end-to-end devices which is about 10 times lower than that of current 3G networks. LTE leverages existing mature radio technologies while also taking advantage of the fast moving semiconductor processing technologies that enables a low cost deployment even from the very beginning.” Liwen Zhang (2010) did a study titled “a survey on long term evolution” Long Term Evolution (LTE) is a significant project of 3 rd Generation Partnership Project (3GPP), initially proposed on the Toronto conference of 3GPP in 2004 and officially started as LTE work item in 2006. LTE, as a transition from the 3 rd generation (3G) to the 4th generation (4G), has achieved great capacity and high speed of mobile telephone networks without doubt. It defines a new packet-only wideband radio with flat architecture and assumes a full Internet Protocol (IP) network architecture in order to assure voice supported in packet domain in design. In addition, it is combined with top-of-the-line radio techniques in order to gain better performance than Code Division Multiple Access (CDMA) approaches. LTE provides scalable carrier bandwidths from 1.4 MHz to 20 MHz and frequency division duplexing (FDD), as well as time division duplexing (TDD). In this paper, it presents an overall description of LTE technology separately in different aspects of LTE architecture and technical principles to clarify how LTE as a radio technology achieves a high performance for cellular mobile communication systems. 13 4G spectrum is a research item for next-generation wide-area cellular radio, which focuses on 4G technologies, 4G networks and 4G systems. 4G technologies shall include three basic areas of connectivity which are personal area networking (such as Bluetooth), local high-speed access points on the network such as wireless technologies and cellular connectivity. Customer satisfaction, as we discussed before, has the most important effect on customer perception and in order to narrowing down we focus on 4G service as one of the customer satisfaction’s factors. The aim of the company is to find the most important service dimensions that affect customer satisfaction. To have a thorough satisfaction firstly the company is needed to bring satisfied customers which leads to loyal customers and by preparing all this, good services would be followed which influenced on Customer satisfaction and make them loyal in future. At the moment, many companies have established projects for 4G systems development. 4G can provide services for a wide range of speed facility that support global roaming and each company will be able to interact with internet-based information and available in every part of country. In this literature review, the consumer perceptions about 4G services in India. The objectives of the study was (1) to find the most influencing factor in selection of service provider, and (2) to measure customer perception and satisfaction as regards the 4G service provided. The study on a 4G indicated that some problems exist that deserve the attention of the company. The company needs to bridge the gap between the services promised and 4G services offered. And to conclude, “Delivering service without measuring the impact on the customer is like driving a car without a windshield” 14 INDUSTRY PROFILE India has a fast-growing mobile services market with excellent potential for the future. With almost five million subscribers amassed in less than two years of operation, India’s growth tempo has far exceeded that of numerous other markets, such as China and Thailand, which have taken more than five years to reach the figures India currently holds. The number of mobile phone subscribers in the country would exceed 50 million by 2010 and cross 300 million by 2016, according to Cellular Operators Association of India (COAI). According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market, such growth rates can be greatly attributed to the drastically falling price of mobile handsets, with price playing a fundamental role in Indian subscriber requirements. Subscribers in certain regions can acquire the handset at almost no cost, thanks to the mass-market stage these technologies have reached internationally. The Indian consumer can buy a handset for $150 or less. This should lead to increased subscribership. This market is growing at an extremely fast pace and so is the competition between the mobile service providers.With the presence of a number of mobile telephony services providers including market leaders like Airtel, Reliance, Idea Cellular, BSNL etc. who are providing either of the two network technologies such as Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). In cellular service there are two main competing network technologies: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). Understanding the difference between GSM and CDMA will allow the user to choose the preferable network technology for his needs. Global System for Mobile Communication (GSM) is a new digital technology developed by the European community to create a common mobile standard around the world. It helps you achieve higher sell capacity and better speech quality and one can enjoy crystal clear reception on ones mobile phone. It automatically solves the problem of eavesdropping on ones calls. 15 Before analyzing the telecom licensing framework in India, it is imperative that one must examine what is a license. License issued by the government is an authority, given to a person upon certain conditions to do something which would have been illegal or wrongful otherwise. For example, a driver’s license issued by the government, gives the authority to a person to drive a motor vehicle. There are three main types of license fee which the government charges: (I) initial license fee, which generally is non-refundable, (ii) annual license fee, and (iii) additional fee for allocation of spectrum. Licensing framework has been an integral part of India’s telecommunication law. Under the Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any person to establish, maintain or use a telegraph. Code Division Multiple Access (CDMA) describes a communication channel access principle that employs spread spectrum technology and a special coding scheme (where each transmitter is assigned a code). It is a spread spectrum signaling, since the modulated coded signal has a much higher bandwidth than the data being communicated. CDMA is the current name for mobile technology and is characterized by high capacity and small cell radius. It has been used in many communication and navigation systems, including the Global Positioning System and the omnitracs satellite system for transportation logistics. Indian mobile telephony market is increasing day by day and there is more to happen with technological up gradations occurring nearly every day and the ever-increasing demand for easier and faster connectivity, the mobile telephony market is expected to race ahead. NATIONAL TELECOM POLICY 1994 (NTP 1994):- The National Telecom Policy was announced in 1994 which aimed at improving India’s competitiveness in the global market and provide a base for a rapid growth in exports. This policy eventually facilitated the emergence of Internet services in India on the back of established basic telephony communication network. This policy also paved way for the entry of the private sector in telephone services. The main objectives of the policy were: 16 To ensure telecommunication is within the reach of all, that is, to ensure availability of telephone on demand as early as possible To achieve universal service covering all villages, that is, enable all people to access certain basic telecom services at affordable and reasonable prices To ensure world-class telecom services. Remove consumer complaints, resolve disputes and encourage public interface and provide a wide permissible range of services to meet the demand at reasonable prices To ensure that India emerges as a major manufacturing base and major exporter of telecom equipment To protect the defence and security interests of the nation. The policy also announced a series of specific targets to be achieved by 1997 and further recognized that to achieve these targets the private sector association and investment would be required to bridge the resource gap. Thus, to meet the telecom needs of the nation and to achieve international comparable standards, the sector for manufacture of telecom equipment had been progressively relicensed and the sub-sector for value-added services was opened up to private investment (July 1992) for electronic mail, voice mail, data services, audio text services, video text services, video conferencing, radio paging and cellular mobile telephone. The private sector participation in the sector was carried out in a phased manner. Initially the private sector was allowed in the value added services, and thereafter, it was allowed in the fixed telephone services. Subsequently, VSAT services were liberalized for private sector participation to provide data services to closed user groups. Establishment of TRAI The entry of private players necessitated independent regulation in the sector; therefore, the TRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs, and also to fulfil the commitments made when India joined the World Trade Organization (WTO) in 1995. The establishment of TRAI was a positive step as it separated the regulatory function from policy-making and operation, which continued to be under the purview of the DoT2 . 17 The functions allotted to the TRAI included: a. To recommend the need and timing for introduction of new service provider b. To protect the interest of customers of telecom services c. To settle disputes between service providers d. To recommend the terms and conditions of license to a service provider e. To render advice to the Central government on matters relating to the development of telecommunication technology and any other matter applicable to the telecommunication industry in general. NEW TELECOM POLICY 1999 (NTP 1999):- In recognition of the fact that the entry of the private sector, which was envisaged during NTP-94, was not satisfactory and in response to the concerns of the private operators and investors about the viability of their business due to non realization of targeted revenues the government decided to come up with a new telecom policy. The most important milestone and instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April 1999.Moreover, convergence of both markets and technologies required realignment of the industry. To achieve India’s vision of becoming an IT superpower along with developing a world class telecom infrastructure in the country, there was a need to develop a new telecom policy framework. Accordingly, the NTP 1999 was framed with the following objectives and targets: Availability of affordable and effective communication for citizens was at the core of the vision and goal of the new telecom policy Provide a balance between provision of universal service to all uncovered areas, including rural areas, and the provision of high-level services capable of meeting the needs of the economy Encourage development of telecommunication facilities in remote, hilly and tribal areas of the nation 18 To facilitate India’s journey to becoming an IT superpower by creating a modern and efficient telecommunication infrastructure taking into account the convergence of IT, media, telecom and consumer electronics Convert PCOs, wherever justified, into public telephone information centers having multimedia capability such as ISDN services, remote database access, government and community information systems etc. To bring about a competitive environment in both urban and rural areas by providing equal opportunities and level playing field for all players Providing a thrust to build world-class manufacturing capabilities and also strengthen research and development efforts in the country Achieve efficiency and transparency in spectrum management Protect the defense and security interests of the country Enable Indian telecom companies to become global players. In line with the above objectives, some of the specific targets of the NTP 1999 were: Make available, telephone on demand by 2002 and achieve a tele density of 7% by 2005 and 15% by 2010 Encourage development of telecom in rural areas by developing a suitable tariff structure so that it becomes more affordable and by also making rural communication mandatory for all fixed service players and thus o Achieve a rural tele density of 4% by 2010 and provide reliable transmission o media in all rural areas. 19 COMPANY PROFILE RELIANCE JIO Jio’s headquarters in RCP, Navi Mumbai Formerly Infotel Broadband Services called Limited (2009 – 2013) Reliance Jio Infocomm Limited (2013 – 2015) Type Subsidiary Industry Telecommunications Headquarters Navi Mumbai, Maharashtra, India Key people Sanjay Mashruwalla (Managing Director) Jyotindra Thacker (Head of IT) Akash Ambani (Chief of Strategy) Mobile telephony, broadband, Products Wifi,Router and 4G Data services 20 Jio Apps MyJio, JioChat, JioPlay, JioBeats, JioMoney, JioDrive, JioOnDemand, JioSecurity, JioJoin, JioMags, JioXpressNews, Jionet WiFi Parent Reliance Industries Subsidiaries LYF www.jio.com Website Jio also known as Reliance Jio and officially as Reliance Jio Infocomm Limited (RJIL),[is an upcoming provider of mobile telephony, broadband services, and digital services in India.. Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, is the first telecom operator to hold pan India Unified License.Formerly known as Infotel Broadband Services Limited (IBSL), Jio will provide 4G services on a pan-India level using LTE technology. The telecom leg of Reliance Industries Limited, it was incorporated in 2007 and is based in Mumbai, India.It is headquartered in Navi Mumbai. RJIL is setting up a pan India telecom network to provide to the highly underserviced India market, reliable (4th generation) high speed internet connectivity, rich communication services and various digital services on pan India basis in key domains such as education, healthcare, security, financial services, government citizen interfaces and entertainment. RJIL aims to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into global leadership in digital economy. RJIL is also deploying an enhanced packet core network to create futuristic high capacity infrastructure to handle huge demand for data and voice. In addition to high speed data, the 4G network will provide voice services from / to non-RJIL network. 21 RJIL holds spectrum in 1800 MHz (across 14 circles) and 2300 MHz (across 22 circles) capable of offering fourth generation (4G) wireless services. RJIL plans to provide seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem. Reliance Jio is part of the “Bay Of Bengal Gateway” Cable System, planned to provide connectivity between South East Asia, South Asia and the Middle East, and also to Europe, Africa and to the Far East Asia through interconnections with other existing and newly built cable systems landing in India, the Middle East and Far East Asia. RJIL’s subsidiary has been awarded with a Facility Based Operator License (“FBO License”) in Singapore which will allow it to buy, operate and sell undersea and/or terrestrial fibre connectivity, setup its internet point of presence, offer internet transit and peering services as well as data and voice roaming services in Singapore. R-Jio is also in the process of installing hundreds of monopoles, unlike the regular rooftop-mounted telecom towers typically used by telcos, said the company executive quoted above. Monopoles, or ground-based masts (GBMs), are expected to double up as street lights and surveillance systems, and provide real- time monitoring of traffic and advertising opportunities. The company, which plans to be rolled out commercial telecom service operations from January, is currently in the testing phase for most of its offerings including 4G services, a host of mobile phone applications and delivery of television content over its fibre optic network. R-Jio, meanwhile, faces its share of challenges in terms of return on investment and capturing market share. The company, according to industry analysts, is expected to spend $8-9 billion for the 4G roll-out. The company will battle for subscribers with leading telcos such as Bharti Airtel Ltd, Vodafone India Pvt Ltd and Idea Cellular Ltd. 22 EVER THOUGHT WHY JIO ? “If you don’t build your dream, someone else will hire you to help them build theirs.” -Dhirubhai Ambani 23 HISTORY In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800cr. Although unlisted, IBBL was the only firm to win broadband spectrum in all 22 zones in India in the 4G auction that took place earlier that year.Later continuing as RIL’s telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in January 2013. Acquisition & Subsidiaries: Acquired Infotel Broadband Services Limited in 2010. Technology – Rancore Technologies ILD & NLD – Infotel Telecom. Agreements: An agreement with Ascend Telecom for their more than 4,500 towers across India. (June 2014) An agreement with Tower Vision for their 8,400 towers across India. (May 2014) An agreement with ATC India for their 11,000 towers across India. (April 2014) An agreement with Viom Networks for their 42,000 telecom towers. (March 2014) Agreement with Bharti Airtel for a comprehensive telecom infrastructure sharing agreement to share infrastructure created by both parties to avoid duplication of infrastructure wherever possible. (December 2013) A key agreement for international data connectivity with Bharti to 24odafon dedicated fiber pair of Bharti’s i2i submarine cable that connects India and Singapore. (April 2013) Agreements with Reliance Communications Limited for sharing of RCOM’s extensive inter-city and intra-city optic fiber infrastructure of nearly 1,20,000 fiber- pair kilometers of optic fiber and 500,000 fiber pair kilometers respectively (April 2013 / April 2014), and 45,000 towers (June 2013). 24 Technology: Reliance Jio Infocomm is currently laying OFC across the country to offer Fiber to the home/premises (FTTH). This fiber backbone will also help them to carry huge amount of data originated from their 4G network as well as public Wi-Fi network. Reliance Jio is deploying LTE-TDD technology for 2.3 GHz spectrum band, acquired in 2010. Reliance Jio will deploy LTE-FDD for 1.8 GHz spectrum, which will ultimately paved to roll out of LTE-A network aggregation of both technology and both spectrum band. At present in different cities of India Reliance Jio offers Wi-Fi services. Most of these cities are in Gujarat, where Reliance Industries also have one of the largest petro-refinery. Once commercially launched, Jio users can have access to Reliance Communications’ 2G & 3G network. OPERATIONS In June 2015, Jio announced that it will start its operations all over the country by the end of year. However, four months later in October 2015, the company’s spokesmen sent out a press release stating that the launch was postponed to the first quarter of the financial year 2016- 2017. Later in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public Interest Litigation, through Prashant Bhushan, challenged the grant of pan-India licence to Jio by the Government of India. The PIL also alleged that Jio was allowed to provide voice telephony along with its 4G data service, by paying an additional fees of just 165.8 crore (US$25 million) which was arbitrary and unreasonable, and contributed to a loss of 2,284.2 crore (US$340 million) to the exchequer. 25 The Indian Department of Telecom (DoT), however, refuted all of CAG’s claims. In its statement, DoT explained that the rules for 3G and BWA spectrum didn’t restrict BWA winners from providing voice telephony. As a result, the PIL was revoked, and the accusations were dismissed. Beta Launch The 4G services were launched internally to Jio’s partners, its staff and their families on 27 December 2015. Bollywood actor Shah Rukh Khan, who is also the brand ambassador of Jio, kickstarted the launch event which took place in Reliance Corporate Park in Navi Mumbai, along with celebrities like musician A R Rahman, actors Ranbir Kapoor and Javed Jaffrey, and filmmaker Rajkumar Hirani.The closed event was witnessed by more than 35000 RIL employees some of whom were virtually connected from around 1000 locations including Dallas in the US. PRODUCT & SERVICES RELIANCE JIO 4G BROADBAND The company has launched its 4G broadband services throughout India in the first quarter of 2016 financial year.It was slated to release in December 2015 after some reports said that the company was waiting to receive final permits from the government.Mukesh Ambani, owner of Reliance Industries Limited (RIL) whose Reliance Jio is the telecom subsidiary, had unveiled details of Jio’s fourth-generation (4G) services on 12 June 2015 at RIL’s 41st annual general meeting. It will offer data and voice services with peripheral services like instant messaging, live TV, movies on demand, news, streaming music, and a digital payments platform. The company has a network of more than 250,000 km of fiber optic cables in the country, over which it will be partnering with local cable operators to get broader connectivity for its broadband services. With its multi-service operator (MSO) licence, Jio will also serve as a TV channel distributor and will offer television-on-demand on its network. 26 Pan-India Spectrum Jio owns spectrum in 800 MHz and 1,800 MHz bands in 10 and 6 circles, respectively, of the total 22 circles in the country, and also owns pan-India licensed 2,300 MHz spectrum. The spectrum is valid till 2035.Ahead of its digital services launch, Mukesh Ambani-led Reliance Jio entered into a spectrum sharing deal with younger brother Anil Ambani-backed Reliance Communications. The sharing deal is for 800 MHz band across seven circles other than the 10 circles for which Jio already owns. VISION Reliance jio’s vision for India is that broadband and digital services will no longer be a luxury item ,Rather convert it into a basic necessity that can be consumed in abundance by consumers and small businesses .The initiatives are truly aligned with the Government of India’s ‘Digital India’ vision for our nation. • Digital Healthcare • Affordable Devices • Jio Drive • Digital Education • Digital Currency • Digital Entertainment and social connectivity 27 PRODUCTS AND SERVICES JIO-FI ▣ Prior to its pan-India launch of 4G data and telephony services, Jio has started providing free Wi-Fi hotspot services in cities throughout India. ▣ In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums hosting the 2016 ICC World Twenty20 matches. Jionet was made available in Wankhede Stadium (Mumbai), IS Bindra Stadium (Mohali), Himachal Pradesh Cricket Association Stadium (Dharamshala), Chinnaswamy Stadium (Bengaluru), Feroz Shah Kotla (Delhi) and Eden Gardens (Kolkata). LYF SMARTPHONES ▣ In June 2015, Jio tied up with domestic handset maker Intex to supply 4G handsets enabled with VoLTE feature. Through this, it planed to offer 4G voice calling besides rolling out high-speed Internet services using a fiber network, in addition to the 4G wireless network. ▣ However, 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. 28 JIO APPS ▣ 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 beta phase. ▣ MyJio – Manage Jio Account and Digital Services associated with it. ▣ JioTV – A live TV channel service. ▣ JioCinema – An online HD video library. ▣ JioChat Messenger – An instant messaging app. ▣ JioMusic – A music player. ▣ Jio4Gvoice (earlier JioJoin) – A VoLTE phone simulator. ▣ JioMags – E-reader for magazines. ▣ JioXpressNews – A news and magazine aggregator. ▣ JioSecurity – Security app. ▣ JioDrive – Cloud-based backup tool. ▣ JioMoney Wallet – An online payments/wallet app. ▣ JioSwitch – Transfer content. 29 COLLABORATIONS ▣ JIO has collaborated with the Mobile and E-commerce companies to provide free SIM and an extended data packs. Mobile Brands E-Commerce Websites LAUNCH POKEMON GO IN INDIA ▣ JIO brought happiness and nostalgia by introducing Pokémon GO in India. ▣ Collaboration was done by JIO and Niantic Labs, the creator of the game. ▣ The also promoted their company by using Reliance Digital stores as Pokéstops. 30 EVENT SPONSORSHIP ▣ JIO has sponsored many events such as the JIO MAMI Film Festival 2016, Mumbai and the upcoming Filmfare Awards. BRAND AMBASSADOR OF JIO IS SHAHRUKH KHAN 31 FUTURE STRATEGIES AND TARGETS FOCUS ON WIFI ▣ Plans to have WI-FI hotspots. ▣ Jio aims to deploy 1 million Wi-Fi hotspots by middle of the next year. ▣ The hotspots will help reduce network congestion. ▣ Reliance has also said that its data plans come with access to JioNet Wi-Fi hotspots, making the service available to its users across the country. “Data is the oxygen of digital life and oxygen must never be in short supply” “India’s digital mother tongue will be IP” - MUKESH AMBANI FTTH ▣ The company is planning to foray into fiber segment to provide ultra high-speed broadband connections to users. ▣ Plans to bring 1Gbps broadband to 100 cities in India. ▣ As it stands today, only a handful of operators in India offer 1Gbps or faster plans and most of those plans are limited to Mumbai. ▣ Cheap 1Gbps fibre all over India will mean cheaper and faster Internet for everyone as a whole. 32 SET OF BOX ▣ Reliance Jio has partnered with Nvidia in order to devise the Shield Android Box, which would redefine Indian homes’ entertainment. ▣ Users will be able to enjoy seamless streaming of 4k content from various digital platforms. ▣ The device gives access to a wide range of applications such as Netflix, Jio TV, Jio on demand and Google apps such as Play Store, Google Music, Google Drive along with games. ▣ Service will be offered along with a voice-enabled remote. ▣ Jio TV and JioCinema will be offered free of cost to the set-top box owners. ▣ JioTV offers more than 350 channels, of which 50 are HD ones. ▣ The content of this application spans across 11 genres and 15 languages. ▣ JioCinema houses 6,000 movies, 60,000 music videos, and more than 100,000 television show episodes. JIO MONEY ▣ Already accepting payments in all Reliance outlets, JioMoney has tied up with several local kirana stores across India. ▣ The company also plans to roll out location-based offers soon, so that, if you have Jio Money, you might get to know of particular offers at a nearby mall. ▣ JioMoney is also hoping to target public transport such as the metro at some point in the future. ▣ Cashless metro payments would be attractive to millions of commuters in Indian cities. JIO APPS ▣ JioHealth to store medical reports. ▣ JioEducation for education content in rural areas. ▣ JioData Transfer to send and receive data between an old phone and a new phone. 33 JIO CAR CONNECT ▣ Jio has plans to connect a staggering 90% of the cars in India to the internet by 2020 with the rumored Car Connect OBD (On-Board Diagnostics) service. ▣ With this, one can access various subsystem of the car such as fuel injection, oxygen sensors and more. ▣ This helps in tuning performance as well as diagnosing any faults that the vehicle might have. ▣ Other features are such as turning on the AC as you walk towards it. Further data provided may include driving styles, speed alerts and panic braking details CABLE TV ▣ Plans to spend around $2 billion over three years to capture India’s TV sets. ▣ Ambani’s television unit has been aggressively wrapping up deals with hundreds of small players and also snap up rival operators like Hathway Cable, Siti Cable, etc. ▣ Want to target a mid-year goal of 1 million subscribers which would rise to 5 million homes in the medium-term and within three years, the aim is 20 million. ▣ It will offer a bundled package with hundreds of channels and video-on-demand in high definition, along with broadband Internet, a landline phone and home surveillance. ▣ Reliance Jio has already acquired a pan India cable MSO(Multi-System Operator) license. ▣ Rcom has a 140,000 km, pan-India fibre optic cable network which Rjio will use under a 2014 deal, alongside its own 250,000 km network. ▣ Reliance Jio selects TiVo’s CubiTV to power advanced entertainment experiences for India users. ▣ CubiTV will power Jio’s advanced HD and 4K set-top box (STB) platforms, and it will enable unified access to linear TV with PVR, Video on Demand. ▣ CubiTV hybrid television solution is widely available and is used by operators across Africa, Asia, Europe, Latin America, and now will be available in India. 34 START UP FUNDING ▣ Reliance Jio has set aside a Rs 5,000 crore venture capital fund to help young entrepreneurs in the country build their business. ▣ Mukesh Ambani said Reliance Jio’s aim is to build a platform for young Indians who want to create “businesses of the future. ▣ He added the telecom unit plans to partner thousands of Indian entrepreneurs whose digital ventures can bloom in the grounds that Jio is preparing. FUTURE TARGETS ▣ The company aims to have 100 million subscribers in the shortest time with 85% retention rate. ▣ Crossed 50 million subscriber mark in 83 days. ▣ Reliance Jio added 19.6 million new users in October, more than Airtel, Vodafone. ▣ Based on the response Jio now has a target of 250 million customers,. ▣ Jio expects an overall revenue market share of 6 percent with 2 percent in voice and 19 percent in data. 35 JOURNEY OF RELIANCE JIO FROM BABY STEPS TO JARGONS OF TELE-COMMUNICATION INITIATION OF BRAND ▣ 2005- Split of Reliance Industries. ▣ 2006-Non Compete signed. ▣ 2010- Non Compete scrapped. CREATING STAKES ▣ 2010- Reliance acquired 96% stake in Infotel Broadband Services for Rs. 4800 crores, hours after Infotel won spectrum auction. ▣ 2013- Infotel Broadband Services were renamed to Reliance Jio Infocomm Limited. 36 DIVERGING THE NETWORK ▣ In December 2013, Reliance Jio inked a deal for its 4G roll out with Bharti Airtel for sharing undersea cable capacity, optic fibre network, wireless towers and Internet broadband services. FIBER OPTIC NETWORK Reliance Jio has also laid more than 2.5 lakh kilometres of fibre-optic cables, covering 18,000 cities and over one lakh villages. The service claims to have an initial end- to-end capacity to serve in excess of 100 million wireless broadband and 20 million Fibre-to- Home customers. THE CURTAIN RAISER ▣ 2015- 4G services were tried amongst their employees. ▣ On their 41st Annual General Meeting held on 1st September 2015, Mukesh Ambani announced the launch of JIO, previously Reliance Jio Infocomm Limited effective from 5th September 2015. 37 RELIANCE JIO LAUNCH PLANS 38 ADVERTISEMENT ON NEWSPAPER POST JIO LAUNCH 39 MAIN PLAYERS IN THE MARKET AIRTEL – the smart phone network Bharti Airtel Limited, The Third Largest Mobile Services Provider Globally With Operations In 20 Countries Across Asia And Africa, Announced The Commercial Launch Of Its High Speed 4G Services (Also Called LTE) On August 6, 2015 In 296 Towns Across India. It is the first largest mobile network in India This Follows The Successful Trial Of Services In Select Cities And The Feedback Received From Customers. Sunil mittal, founder & Ceo, Bharti Airtel (India & South Asia) Airtel Has Led The 4G Story In India, Having Launched India’s First 4G Network In Kolkata In April 2012. VODAFONE Vodafone Mobile Services Limited Is The Second Largest Mobile Network Operator In India On 8 December 2015, Vodafone Announced The Roll Out Of Its 4G Network In India On 1800 Mhz Band, Starting From Kochi, Kerala Data Packs Starting From Rs 12 For 45MB Vodafone Was The Third Major Telecom Company To Start 4G Services In The Country With Its Rollout In Kozhikode On 6 January. In December, The Company Announced Its Plan To Roll Out Services In The Five Circles Of Delhi, Mumbai, Kolkata, Karnataka And Kerala 40 IDEA It is the third largest mobile network operator in India. Announcing the launch of 4G services Mr. Himanshu Kapania, Managing Director, Idea Cellular Idea 4G has been launched in 10 circles, over 700 towns on the 1800 Mhz band Top Offers during launch Now get 4G @ Rs. 51*/GB for 1 Year. Recharge for Rs. 1499 and get 6GB to start with. Idea Subscribers Get 2GB 4G FREE for upgrading to a 4G SIM Get 10GB FREE on joining our 4G network thru your 4G smartphone. Get 100% cashback* on Idea 4G devices with postpaid plans starting at Rs. 650. JIO LAUNCH Mr.Mukesh Ambani Announced “Always” Free Voice Calls And Priced Data At Rs 50/Gb, 80% Lower Than The Current Industry Average Of Rs 250/Gb. The Company Also Announced The Launch Of 4g Handsets Priced At Rs 3,999 And Personal Routers At Rs 1,999. Free Voice Calls; Data Priced At 80% Lower Than Prevailing Industry Rates; Commercial Launch On 5th September, Service To Be Free Till Year End. 41 4G LICENCE HOLDERS IN INDIA With Airtel launching 4G in Kolkata, lot of people have been wondering what are their options in the city/region they live in. Well, here is a quick list of all 4G license holders in India. LICENSE HOLDING IN HOLDERS Airtel Andhra Pradesh, Assam, Bihar, J&K, North East, Orissa, Tamilnadu, West Bengal, Madhya Pradesh & Chhattisgarh, Karnataka, Kolkata, Maharashtra and Goa, Punjab BSNL All India except Delhi & Mumbai MTNL Delhi, Mumbai Reliance Vodafone Germany, Italy, Spain, UK, Albania, Greece Ireland Malta Netherlands Portugal Australia Czech Republic Egypt Hungary India New Zealand Romania Turkey 42 TOTAL SUBSCRIBER BASE IN INDIA (IN 2015) Others BSNL 3% 9% Bharati Telenor 23% 5% Aircel 8% Tata 7% Vodafone 19% Reliance Comm 11% Idea 15% SUBSCRIBER BASE (IN 2016) Others Telenor Tata 5% 1% 5% Bharati 25% Aircel 9% Reliance Comm 8% BSNL 9% Vodafone 20% Idea 18% 43 MARKET CAPITAL Company Name Market Cap in Crores Bharti Airtel 108066.23 Reliance Communications 32683.44 Idea Cellular 14368.92 Vodafone 36535.34 2500 2338.2 2125.9 1954.4 2000 1716.6 1523.6 1579.8 1500 1253.7 1217.9 1000 500 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 INR (in billion) 44 COMPETITION WITH RIVAL COMPANIES STRATEGIES APPLIED BY RELIANCE JIO • Undercut the market price by giving attractive discounts. • Let everyone switch to Jio for internet use at a cheap rates. • Unleash the power of fibre optic network to give super fast internet. • Grow your subscriber base. • Recover your investment using the large number of user. MARKET COMPETITORS ▣ With the launch of Reliance Jio , market shares of other major telcos like Airtel, Vodafone, Idea have been falling abruptly. ▣ With unlimited free voice call, 4G data, Messaging, and much more, Reliance Jio has turned out to be a real phenomenon for the world. ▣ While the craze of people for acquiring a Jio SIM all over the country is mounting over time, other telecom operators are dragging into the edge of competition more and more. ▣ The unlimited offers of Jio and its boosting trend have made other major telecom service providers to re-think about their tariffs. And to step with this intensifying volume of rivalry and drive users. 45 RELIANCE JIO TROLLS 46 47 JIO – RIVALS BATTLE (ON CALL DROPS) On September 13 th : Idea pledged to add an additional 196 POIs in order to handle 1.85 million more customers from Jio where calls originate. Some data from them: in August 2016, 2.97 million Jio subscribers called Idea’s network, and there was an asymmetry of traffic of 14.5 times between Jio and their network. Airtel said that with its upgrade, it will be able to serve 15 million customers but did not give out a specific number of POIs. On September 15 th : Jio claims that over 22 crore calls from Jio’s subscribers have failed while interconnecting with Airtel’s network, while 52 crore calls have failed in total while interconnecting with three incumbent operators combines viz. Airtel, Vodafone, and Idea. On September 16 th : Jio accused Vodafone India of being anti-competitive and said that it hasn’t provided enough points of interconnect (POIs) for voice calls on their network. It said that over 80 calls were failing out of every 100 call attempts to Vodafone, adding that“In the last 10 days alone, over 15 crore RJIL calls have failed on the Vodafone network”. On September 18 th : Airtel says PoIs have to be tested and connected, but Jio “seems to be dilly- dallying on the issue and not cooperating deliberately. It appears that the constant rhetoric may be a ploy by Jio to cover up some technical issues in their own network, which is causing call failures, by constantly blaming other operators. In addition, call drops or the lack of VoLTE stabilization should not be hidden behind the issue of POIs, which are being augmented at regular and quick intervals.” On September 20 th : Jio releases data saying that “hardly any new interconnection capacity has been made operational”, and that it needs 4,000 – 5,000 E1s per operator for the three incumbent operators. Jio mentioned 10 crore call failures per day between RJIL and the three incumbent operators. On September 23 rd: Jio claimed that over 750 calls per 1,000 are failing per day between Idea and Jio networks, which translates to 4 crore calls failing per day. “Only 50 new E1s have been operationalised by Idea in the last 10 days as a result of which call failure rate has been increasing drastically,” Jio added. On September 27 th: Bharti Airtel said that Jio’s sea call failures is taking place due to the Jio’s “under- preparedness and insufficient testing efforts,” according to a TelecomTalk report. The 48 main reason for such call failures was due to Jio’s acquisition of large number of subscribers even before the commencement of its commercial launch, Airtel added. On September 27 th: Jio responded stating that “Airtel’s contention that the congestion has been caused by large-scale subscriber acquisition by RJIL is not only unreasonable but also anti- competitive.” It added that Jio has is “completely ready” to accept augmentation of PoIs from Airtel’s network and its transmission media has been up and operation for several months and that Jio-to-Jio calls have been running without any failures. On September 28 th: TRAI decided to step in and hold a meeting with all telecom operators to discuss about the Interconnection issue. The meeting held on September 30th also discussed some alleged tariff violation by Jio. On October 24 th: TRAI recommends the DoT to impose a combined penalty of Rs 3050 crore on Airtel, Idea and Vodafone , as these operators were found to “willfully violate the license conditions” by denying Points of Interconnection to Jio. On October 27 th: TRAI issued a consultation paper asking whether a standardized interconnect agreement be mandated in case two telcos fail to mutually negotiate the terms and conditions of interconnection. On November 3 rd: TRAI requests Airtel, Vodafone and Idea to “mutually” resolve issue of interconnection with Reliance Jio, according to this PTI report. The decision came after TRAI’s Chariman R S Sharma held a meeting with operators over the issue 4G SPEED BATTLE The Speed Battle Comes On The Back Of An Anticipated Tariff War, Given Jio’s Comments That It Will Offer Services At “Substantially Lower” Rates Than Rivals. According To TRAI’S Website: 4g Speed On The Network Of Reliance Jio Slower Than Speeds Offered By Airtel , Idea Cellular And Vodafone. 49 TRAI‘S Analytics Portal Listed 0N 21-OCT-2016 • Airtel - 11.4 Mbps • Vodafone – 7.3 Mbps • Idea – 7.6 Mbps • JIO, Which Is Only 4G Network, Was Recorded At 6.2 Mbps. AFTER TARIFF WAR, BHARTI AIRTEL CHALLENGES RELIANCE JIO WITH 135 mbps DATA SPEED After Preparing For A Tariff War, India’s Top Telecom Operator Bharti Airtel Gearing Up To Engage With New Entrant Reliance Jio On Another Front: Data Speed. The Company Said It Has Deployed Technology Known As “Carrier Aggregation” In Mumbai And Kerala To Combine Different Bands Of Spectrum And Create Larger Blocks Of Airwaves To Offer Faster And More Stable 4g Data Services For Mobile Users. The Enhanced Service Enables Peak Download Speeds Of As Much As 135 Mbps, Which Is Faster Than What Users Get On A Normal In Jio’s Ongoing Trial Phase, A Relatively Empty Network Has Offered Peak Speeds Of 80-90 Mbps. Faster Speeds Achieved Through Carrier Aggregation Will Transform 4G Into A Better Product For Consumers. 50 AIRTEL IDEA VODAFONE BLOCKING MNP REQUEST (PORTABILITY) On MNP, There Is No Right That Any Operator Has To Block MNP Requests. Reliance Jio has accused incumbent operators Bharti Airtel, Idea Cellular and Vodafone for deliberately refusing to help their mobile phone users port or switch to the new operator. the operators have rejected all the requests made for porting between September 9 and September 12 Almost all of these rejections have been made on the baseless and unsubstantiated ground of ‘violation of contractual obligation’. Jio asked Trai to take serious action on complaint and intervene by taking strict action against the operators under the relevant provisions. BATTLE HEATS UP BETWEEN RELIANCE JIO AND OTHER GSM OPERATORS; NOW, AIRTEL SLASHES DATA TARIFF FOR CORPORATE CUSTOMERS Airtel is working to retain customers ahead of the launch of Reliance Jio Airtel slashed from Rs 250/GB to Rs 99.5/GB for corporate consumers as they contribute 6-8% of mobility revenues of Airtel. “BSNL announced a national unlimited 3G mobile data plan for Rs 1,099 and doubled the data usage limit in some existing plans. Last month, some telecom operators like Airtel, Vodafone, and Idea hiked data usage limit in some of their plans by up to 67% to counter the threat from Reliance Jio Reliance Jio, which is expected to roll out commercial services in the coming months, is likely to offer huge freebies to get customers. 51 JIO IMPACT : TOP THREE TELECOM COMPANIES LOSE 22,522 CRORES MCAP company loss Loss in % of mkt capital Bharti Airtel Rs. 8,455 crore 6.4% Idea Cellular Rs. 3,528 crore 10.5% 52odafone Rs. 1,182 crore 9% EFFECT OF JIO ON OTHER TELECOM SERVICE PROVIDERS Bharti Airtel, Vodafone India And Idea Cellular Have Already Slashed Effective Data Tariffs By 67 Per Cent For Prepaid Customers. Market Leader Airtel Has Started Offering Free And Unlimited Voice Calls With Some Post-paid Data Packs Airtel Has Also Offered Data At Rock-bottom Prices In Some Plans, Aiming To Retain Higher-paying Users. Vodafone Also Revised Its 3gb 4G Monthly Recharge Pack. Earlier A Rs 650 Plan Came Bundled With 3GB Data, But Now You Get 5GB For The Same Price Idea Also Recently Slashed Its Data Tariffs By Up To 67 Percent. As Detailed By The Company, Users On Their Network Will Now Get 5GB Of 4G/3G Data For Rs 649. If Anyone Wants 10GB Of 4G/3G Then Rs 990 Is Your Price. Interestingly, Idea Is Also Letting Users Pick Their 2GB Data Plan For Rs 349. 52 DATA PLANS • Airtel • Airtel Recently Revised Its Data Pack Plans For Their Prepaid And Corporate Customers. It Slashed Its Internet Prepaid Tarifs To 80% For Its Corporate Customers. • Bringing Down The Former To As Low As Rs 51/GB, You Spend Rs 1,498 For 1GB 3G/4G Data And Post Exhaustion, Customers Can Enjoy 1GB 3G/4G For Just Rs 51. • For A Year Long Period, You Get 12 GB 3G/4G Of Data At Rs 2110 For 12 Months (13 Packs Of 1 GB Each), If You Are A Airtel Customer • Vodafone • On The Other Hand, Vodafone Is Giving 1GB Data (3G/4G) For Rs 297 With Validity For 28 Days. This Sums Up To Rs 3,861 For 13 GB Of Data For 12 Months • Idea • Idea Which Is Also Trying To Catch Up With Competitors Is Providing 1GB (3G) At Rs 249 For 28 Days. You Will End Up Spending Rs 3,237 For 13 GB For A Year. BSNL GETS INTO THE GAME ▣ Bharat Sanchar Nigam Limited(BSNL) announced that from January 1 st , their customers will be able to make unlimited calls and get unhindered access to data at just Rs. 149 a month. ▣ While JIO has a Rs 149 plan includes unlimited voice calls, 300 MB data and 100 local and national SMS for a 28-day period. ▣ Also, BSNL plans to use its underutilized 7 lakh kilometers of fibre network and to reduce Interconnectivity usage charge. 53 TOP MISUSE BY RIVALS ▣ After demonetization, the government still allowed retailers to accept old Rs. 500 notes for prepaid recharges. ▣ This appeal was raised by JIO in Cellular Operators Association of India (COAI) regarding money laundering and was dismissed by them. ▣ COAI replied with the statement that they came up with such decision in favor of customers. ▣ JIO faced a loss at hand as 90% of the Telco consumers have Prepaid plans. APPEAL OF UNFAIR COMPETITION Vodafone , Idea and Airtel gave a notice to TRAI about unfair means of JIO that JIO is not following FAIR COMPITION BY GIVING EVERYTHING FREE RESULTS TRAI then found this appeal valid and ordered JIO That JIO have to stop this till 3rd December,2016 Because a promotional offer could only run for 90 days and which would end much earlier than 31 dec 2016 Reliance Chairman Mukesh Ambani on Thursday announced that although the Welcome Offer is ending on December 3, the company is announcing a new offer called Happy New Year Offer and that it will allow all Jio users, new or old, to enjoy the Jio services for free until March 31. This means the free data and calls offer will continue to be available to Jio users until March 31. Although there is some change in the way the Happy New Year Offer will be implemented compared to the Welcome Offer. 54 NEW YEAR OFFER ▣ The New Year offer of free voice and data provision to the customers till 31 st March 2017 was a violation to the 90 day promotional deal which was allowed by TRAI. ▣ The company was supposed to revert to this problem. ▣ They put a cap on the Fair Usage Policy (FUP) to 1 GB of data per day. Post 1 GB, the speed drops down to 128 kbps. Now, the customers need to recharge their data plans to revive the desired speed Jio Prime membership Jio Prime requires one-time membership charge of Rs 99 to be paid before March 31, 2017. It is an extension of the unlimited services offered under the Happy New Year Offer. Users can apply for Jio Prime subscriptions till March 31, 2017. The Jio Prime plans come into effect from April 1, 2017, the day the existing Jio Happy New Year Offer expires Here is what Jio Prime subscribers will get: * Customers who sign up for Jio Prime subscription will be able to use unlimited data and voice services for a year at Rs 303 a month under a special offer (effectively just Rs 10/day) * User can continue enjoying unlimited offering for another 12 months after enrolment. * All domestic voice calls to any network will always remain free. No roaming charges will be applicable and there won‘t be black out days either. * According to NDTV, Reliance Jio will offer a Rs. 149 pack under which subscribers will receive unlimited voice calls and 2GB 4G data without any daily cap for a month. * For Rs 499, subscribers will get 60GB 4G data with 2GB daily data cap and unlimited voice calls. * Reliance Jio will offer long duration plans priced at Rs. 999 with a validity of 60 days and data allowance of 60GB, Rs 1,999 for 90 days with 125GB data, Rs 4,999 for 180 days with 350GB data, and Rs. 9,999 for 360 days with 750GB. All these Jio Prime plans are said to come with no daily limit. On Reliance Jio‘s latest offer by Jio is at least 20 per cent cheaper than the unlimited plans announced by incumbents, analysts said. Jio’s free offer last September forced Airtel to announce unlimited plans at Rs 549, down from Rs 749 a few quarters ago. 55 According to Reliance, Jio, users consumed over 100 crore GB data, more than 3.3 crore GB/day, making India the number one country in mobile data usage. “Jio carries nearly 5.5 crore hours of video daily on its network. Jio has more than double the number of 4G base stations when compared to all the other Indian operators put together,” Ambani said. JIO SUMMER SURPRISE OFFER HOW THIS OFFER WORKS ? You have to pay for the Prime membership and do a recharge of Rs 303 or higher to claim this offer. Options include Rs 499 plan, which offers 2GB FUP per day for a period of 28 days. Calls, SMS are free in these plans. With Jio, the focus is on data, and all calls are 4G VoLTE. You are paying Jio a total of Rs 402 (Rs 99 for the Prime membership and Rs 303 for the recharge) in order to get extra three months of free period. If you’ve already made this payment, your free service will continue for the next three months uninterrupted and Jio’s paid recharge will kick in from July 2017. So what does it mean for the users? If you had paid Rs 99 for Prime and done a Rs 303 recharge, then your Summer Surprise continues. This is also applicable to those who had done a recharge of Rs 499, Rs 999, Rs 1,999, Rs 4,999 and Rs 9,999. All these offers had three months extra free service, and the amount for these recharges will kick in from July TRAI ORDERS JIO TO WITHDRAW SUMMER SURPRISE OFFER According to a press statement by Reliance Jio, “Telecom Regulatory Authority of India (TRAI) has advised Jio to withdraw the 3 months complimentary benefits of the Jio Summer Surprise.” Other operators had claimed Jio’s offers were predatory, and would have a negative impact on their revenue. They have also argued that it was wrong of TRAI to let Jio continue with its free data service for more than three months. In a statement, Jio said it is in the process of fully complying with the regulator’s advice. The offer will be withdrawn over the next few days. But Jio also said that “all customers who have subscribed to JIO SUMMER SURPRISE offer prior to its discontinuation will remain eligible for the offer.” 56 DHAN DHANA DHAN OFFER Reliance Jio has unveiled a new Jio ‘Dhan Dhana Dhan’ offer on its website. The offer allows Jio Prime members to avail 3 months of services starting at a recharge price of Rs 309 only for prime members. Jio prime members can choose between 2 plans for Rs 309 and Rs 509 with 1GB and 2GB data usage restriction respectively. Jio ‘Dhan Dhana Dhan’ recharge plans are limited to one recharge only and are not available along with Jio Summer Surprise offer. VODAFONE – IDEA MERGER TO COUNTER JIO On 20 March 2017, Idea and Vodafone India announced that their respective boards had approved a merger of the two companies. The merger will not include Vodafone’s 42% stake in Indus Towers Ltd. The merger will create the largest telecom company in India by subscribers and by revenue. Under the terms of the deal, the Vodafone will hold a 45.1% stake in the combined entity, the Aditya Birla Group will hold 26% and the remaining shares will be held by the public. The merger is expected to be completed by March 2019, and the newly merged entity will named at a later date AIRTEL ACQUIRES TELENOR AND TIKONA The Telenor deal is a shot in the arm for Airtel, whose dominance over the telecom industry is being threatened by Reliance Jio and a likely Vodafone Idea merger. The transaction, which won’t involve any cash payments to Telenor, will give Airtel access to 44 million customers (increasing its user base to 307 million) After Telenor, Airtel Now Acquires Tikona For Rs 1600 Crore on 23th feb 2017. Airtel acquired Tikona’s 4G business for Rs 1600 crore in cash and debt. The services provider today announced that it has entered into a definitive agreement with Tikona Digital Networks (“Tikona”) to acquire Tikona’s 4G Business including the Broadband Wireless Access (“BWA”) spectrum and 350 sites, in five telecom circles. 57 RESEARCH METHODOLOGY RESEARCH DESIGN: The purpose of the methodology is to design the research procedure. This includes the overall design, the sampling procedure, the data collection method and analysis procedure. Marketing research is the systematic gathering recoding and analyzing of data about problem retaining to the marketing of goods and services. The essential purpose of marketing research is to provide information, which will facilitate the identification of an opportunity of problem situation and to assist manager in arriving at the best possible decisions when such situations are encountered. Basically there are two types of researches, which according to their applicability, strength, weaknesses, and requirements used before selecting proper type of research, their suitability must be seen with respect to a specific problem two general types of researches are exploratory and conclusive. CONCLUSIVE RESEARCH It is also known as quantitative research; it is designed to help executives of action that is to make decision. When a marketing executive makes a decision are course of action is being selected from among a number of available. The alternatives may be as few as two or virtually infinite. They may be well defined or only vaguely glimpsed. Conclusive research provides information, which helps the executives make a rational decision. In some instances, particularly if any experiment is run, the research may come close to specifying the precise alternatives to choose, in their cases especially with descriptive studies the research will only particularly clarify the situation and much will be left to the executive’s judgment. 58 The type of research here is “Descriptive Research Design”. This kind of design is used for more precise investigation or of developing the working hypothesis from an operational point of view. It has inbuilt flexibility, which is needed because the research problem, broadly defined initially, is transformed into one with more precise meaning in exploratory studies, which in fact may necessitate changes in research procedure for gathering relevant data. The characteristic features of research are as follows: – Flexible Design Non-Probability Sampling Design No pre-planned design for analysis Unstructured instruments for collection of data No fixed decisions about the operational procedures SAMPLE SIZE Sample size refers to the numbers of respondents researcher have selected for the survey. I have selected 107 respondents SAMPLING TECHNIQUE The sample design provides information on the target information and final sample sizes. I used conveyed convenient sampling surveyed in research. SAMPLING AREA Royapettah, Chennai and the respondents of questionnaire are from Chennai, Mumbai, vadodara. 59 DATA COLLECTION TOOL I have used Questionnaire, as the research instrument to conduct the market survey. The questionnaire consisted closed ended questions designed in such a way that it should gather maximum information possible. The questionnaire was a combination of 4 questions consisting of personal details and 17 questions of subject research. If choices are given it is easier for the respondent to respond from the choices rather they think and reply also it takes lesser time. Because the keep on responding and one has tick mark the right choice accordingly. Data was collected through two sources: Primary Source: Primary data was collected through a questionnaire. Secondary Source: The secondary source was from the internet and news articles. METHOD OF SAMPLING Convenient sampling is used to do sampling as all the customers in the sites are Surveyed.. DATA ANALYSIS Data analysis was done mainly from the data collected through the customers. The data Collected from secondary sources is also used to analyse on one particular parameter. Qualitative analysis was done on the data collected from the primary as well as secondary Sources. 60 DATA ANALYSIS AND INTERPRETATION PERSONAL DETAILS 61 62 CONSUMER SATISFACTION TOWARDS RELIANCE JIO 63 64 65 66 67 68 69 70 17. RATE THE FOLLOWING JIO SERVICES ON THE BASIS OF YOUR SATISFACTION ? NETWORK COVERAGE DATA SERVICES CALLING SERVICES EXCELLENT VERY GOOD VALUE ADDED SERVICES GOOD AVERAGE POOR CUSTOMER CARE SERVICES NEW SCHEMES AND OFFERS OVERALL SATISFACTION 0 10 20 30 40 50 60 71 FINDINGS There were many things which were found and known while doing this project. The following are the findings of this study. 1. While doing this project and the responses by questionnaire I found that that many people are non users of jio (51.4% were non users), but still they are supportive to jio as they are ready to recommend reliance jio to others (70.6% agreed to recommend reliance jio to others) 2. 61% of people were satisfied with reliance jio, and in 39% few were non users and the rest were not satisfied due to network problems, calling congestions, internet speed, etc. 3. Customers are satisfied with 4g unlimited services than any other services 4. Reliance jio free offers attracts many of the customers. 5. Reliance jio has a great vision as it concentrates mainly on making daily needs cheap and best. 6. Jio product and services are satisfied by the customers. 7. Reliance jio is enhanced potential share in market. 8. Reliance jio shocked all the main players in the market. 9. Reliance jio made all the companies to go cheaper due to competition. 10. Reliance jio has a very good scope and future in the market. 72 LIMITATIONS Each and every task has certain limitations and hurdles in the course of its performance. But this does not mean that the task should stick up whenever certain limitations come up. The need is to try one’s level best to solve incoming limitations. Few limitations of the project are enumerated below: 1. The first problem I faced is in getting the co-operation of the customers. Many of the respondents I approached did not agree to the need and utility of the project and hence did not agree to provide me with information. 2. The behavior of the customer is unpredictable which may result in the lacking of accuracy in the data. 3. As the sample size of the survey was so small and comprise of only 107 respondents, the results may have some prone to errors. 4. To create good image, respondents may give responses vary from the facts. 5. Many of the respondents were hesitating to give their personal details like name and phone numbers (so decided to hide the names and phone numbers in the project work, but it will be shown to the guide of my project work as a proof that all the responses were genuine) 6. Stipulated short span of time for survey. 73 CONCLUSION Reliance JIO has become a very successful brand in India & providing customer satisfaction is to be there main motive. It provides unlimited free calling and data services & SMS on the move as people are more dependent on it in their daily lives like wide network coverage and good 4G services. Because 3G services was unable to meet out customer needs and wants. That’s why 4G has been evolved for Indian customers. Reliance jio provides attractive 4G schemes & customer services as well as lifetime roaming free services. Providing customer satisfaction is the most crucial step of the company as they are to be satisfied and provides Internet access on the move such as Wide network coverage and good 4G services as they are important and technology advanced stuff required by almost everybody in today’s environment. Reliance JIO is a home brand company and a very emerging brand in India and will be successful in overseas market in upcoming years. From the details it can be concluded that 80% of Reliance JIO users preferred to remain with Reliance JIO and fully satisfied. Also good number of customers who are willing to switch from their respective subscribers showed interest in Reliance JIO. Reliance JIO is capturing the wide area of Indian markets increasingly day by day. Hence, these statistics imply a bright future for the company. From the above details I conclude that most of the customers are willing to go with Reliance 4G services, as most of them are satisfied with the free services offered, which are the main advantage of the organization to attract the customers. Beta version of 4g has been tested successfully and the customer satisfaction is highly met which implies that the Reliance JIO will compete with other network service providers and the company will be booming in the telecom industry. Whatever may be the outcome of this battle in telecom industry, but the customers are benefitted from this battle. 74 SUGGESSIONS We must always take suggestions from as many people we can, so that we may get ideas and can select the best among that in order to attain success. So here are the few suggestions given as follows: 1. Reliance JIO must focus on rural areas to get the people attention and gather the rural people interest. Because most of rural people are not having the knowledge about Reliance jio. 2. Reliance jio will attract many subscribers if they start concentrating on rural areas, and they can make profit once they get huge number of subscribers. 3. Spread out the awareness about Reliance JIO in deep rural areas. 4. Replenish the products on Retailer’s shop on right time, where it is lacking. 5. Remove the problem of calling congestion & call drop. 6. Make the advertisement of Reliance JIO by putting hoardings, boards, posters and neon (electric) sign boards in every areas. 7. Get the feedback from existing customers about Reliance JIO and take the reference for making new customers. 8. We should try building a good relationship with all retailers, praise, recognition & honour on several occasion for our retailers would help a lot. 9. The customer care people and also employees in Reliance JIO should try to convey brand Reliance JIO while talking to people. 10. Enhance the market penetration & shares in every market and give the high competition to others company 75 BIBLOGRAPHY 1. https://en.wikipedia.org/wiki/Jio 2. http://gadgets.ndtv.com/telecom/features/reliance-jio-prime-dhan-dhana-dhan-offer-a- timeline- free-jio-4g-data-since- launch- impact-1680629 3. http://www.thehindu.com/business/Industry/reliance-jios-free-promotional-offer-to- stay/article17473538.ece 4. http://www.medianama.com/2016/11/223-airtel-jio- interconnection-2/ 5. http://indianexpress.com/article/technology/tech-news-technology/reliance-jio-to- withdraws-summer-surprise-offer-prime-trai-advice-decision-what-it- means-4602557/ 6. https://en.wikipedia.org/wiki/Idea_Cellular 7. https://www.jio.com/ 8. http://www.businesstoday.in/sectors/telecom/9-products-reliance-jio-offers-other- than-sim-cards/story/241985.html 9. http://www.financialexpress.com/industry/reliance-jio-4g- launch- mukesh-ambani- dedicates-jio-to-pm-modis-digital- india- vision/363849/ 10. http://www.teleanalysis.com/corporate/ma/telenor-airtel-now-acquires-tikona-24844 76 QUESTIONNAIRE PERSONAL DETAILS 1. MOBILE NUMBER 2. NAME 3. GENDER (A) Male (B) Female 4. AGE (A) 15-20 (B) 20-25 (C) 25-30 (D) above 30 5. OCCUPATION (A) student (B) business (C) employee (D) housewife (E) other 6. ANNUAL INCOME (A) Below 1 lakh (B) 1 lakh to 5 lakhs (C) 5 lakhs to 10 lakhs (D) Above 10 lakhs 77 CUSTOMER SATISFACTION TOWARDS RELIANCE JIO (QUESTIONNAIRE) 1. DO YOU HAVE MOBILE PHONE ? (A) Yes (B) No 2. WHICH OPERATOR SERVICE DO YOU USE ? (A) Reliance jio (B) Airtel (C) Vodafone (D) Idea (E) Aircel (F) Reliance (G) Others 3. WHAT IS YOUR MONTHLY AVERAGE EXPENDITURE ON MOBILE ? (A) Below 100 (B) 100-300 (C) 300-500 (D) 500-100 (E) Above 1000 4. ARE YOU AWARE ABOUT RELIANCE JIO ? (A) Yes (B) No 5. HOW LONG YOU ARE USING RELIANCE JIO SERVICES ? (A) Less than a month (B) 1 month to 3 months (C) 5 months to 10 months (D) Non user 78 6. WHICH OF THE FEATURES YOU ARE SPECIALLY CONCERNED WHILE PURCHASING A SIM CARD ? (A) Connectivity (B) Schemes and discounts (C) Goodwill (D) Others 7. WHICH OF THE FEATURES YOU LIKE MOST IN RELIANCE JIO ? (A) Data services (B) Unlimited calls (C) Network coverge (D) Value added services (E) Unlimited sms (F) Others 8. DO YOU CALL CUSTOMER CARE ? (A) Yes (B) No 9. HOW OFTEN DO YOU CALL CUSTOMER CARE ? (A) Daily (B) Weekly (C) Monthly (D) Rarely 10. FOR WHAT REASONS YOU CALL CUSTOMER CARE ? (A) Information regarding schemes (B) Value added services (C) Complaints (D) Other queries 79 11. ARE YOU SATISFIED WITH RELIANCE JIO ? (A) Yes (B) No 12. WHAT SHOULD BE IMPROVED IN RELIANCE JIO ? (A) Network coverage (B) Remove calling congestions (C) Internet speed (D) Others 13. ARE YOU AWARE ABOUT JIO PRIME OFFERS ? (A) Yes (B) No 14. DO YOU THINK JIO PRIME PLANS ARE BETTER THAN OTHER TELECOM COMPANY PLANS ? (A) Yes (B) No 15. WOULD YOU LIKE TO RECOMMEND OTHERS ? (A) Yes (B) No 16. WHICH TELECOM OPERATOR YOU PREFER THE MOST ? (A) Reliance jio (B) Airtel (C) Vodafone (D) Idea (E) Reliance (F) Aircel (G) Others 80 17. RATE THE FOLLOWING JIO SERVICES ON BASIS OF YOUR SATISFACTION ? EXCELLENT VERY GOOD AVERAGE POOR GOOD NETWORK COVERAGE DATA SERVICES CALLING SERVICES VALUE ADDED SERVICES CUSTOMER CARE SERVICES NEW SCHEMES AND OFFERS OVERALL SATISFACTION 81