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EXECUTIVE SUMMARY

Introduction to the problem

Bhubaneswar, one of the fastest developing IT and educational hub in India, a tier-2 city and

a city with immense potential for aggressive expansions in various sectors and one of the

sectors which has a very huge growth potential is telecom .Telecom is a booming sector in a

developing country like ours but it is still lagging behind with respect with most of the other

developing countries like china, Russia, brazil etc. In Internet penetration India is ranked

142nd

all over the world which clearly signifies how much we have to catch up with the rest

of the world and this also indicates the scope of development in this sector.

Reliance jio infocomm limited a subsidiary of RIL (Reliance Industries Limited) headed by

Mr. Mukesh Ambani has understood the market potential and hence started the Dream project

named Reliance jio which is going to provide 4G services in India in the coming years. India

is still adapting itself to 3G services which actually is almost outdated with respect to the rest

of the world. Lot of countries has seen 4G revolution and in India even 3G is not that widely

accepted. Even recently international 5G standards have been set which clearly shows how

far we are lagging behind.

Now, talking about RJIL, the company has invested 70,000 crores in the project and in the

spectrum auction has bought 2.3 GHz and 1.8 GHz spectrum for 4G services across India, the

company holds unified Pan India license to launch 4G pan India, being the first company to

get one.

Now, one of the major cities in which the company is going to invest is Bhubaneswar,

already 2 Jio centers has been established in Bhubaneswar (one in jayadev vihar and other in

Master canteen) ,these Jio centers will handle all the operations in the city and the Jio centers

has been demarcated based on population, already optical fiber is being placed all around the

city and base stations has also been placed at numerous locations in the city.

Now, before the launch of 4G services in the city, the company is investing a lot in

understanding the current market scenario ,the perception about 4G in the mind of consumers

and retailers, the current state of service providers in 3G, what are the room for improvement

before the launch. These activities are necessary before they design the marketing activities in

the city.

Research Methodology adopted

I designed my problem based on it and I tried to understand the current state of 3G services in

Bhubaneswar, What is the acceptance level of 3G services among consumers? What are their

complains? What are retailers take on the 3G services in Bhubaneswar? What is the

perception about 4G? Willingness to provide 4G services etc.

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I started by doing an retail mapping in which I asked the retailers about their opinions and

their expectations about the state of 3G services based on which I designed my own research

, which began by a questionnaire design based on the variables identified which namely are:

(a) Awareness about Reliance 4G (RJIL)

(b) Network on Demand

(c) Satisfactions from plans and offers in 3G

(d) Demand for 3G SIM activation

(e) Company which sells the highest volume of 3G recharge

(f) Recharge on Demand

(g) Distribution network of reliance

(h) Willingness to provide 4G

(i) Satisfaction on the margin gained by selling 3G

(j) Complaints regarding 3G services from customers

The sample size is took is n=160 and the samples has been collected from various parts of

Bhubaneswar in similar proportions viz western Bhubaneswar, northern Bhubaneswar,

central Bhubaneswar and outskirts of Bhubaneswar.

Major findings

After a detailed frequency analysis using pie charts and bar diagrams and application of

statistical tool on SPSS (two step cluster analysis) I tried to find homogeneity between the

responses as well as heterogeneity, the analysis gave me a overall picture of the market in

Bhubaneswar where 3G is in the path of adoption and demand in the market for 3G has

increased exponentially, Aircel is doing a hefty business in 3G as far as Bhubaneswar is

concerned and is currently the market leader, followed by Airtel which is an all-round player

in the overall market concerning both 2G and 3G .

There is awareness about 4G(RJIL) in the market but retailers are very insure about the kind

of services that they are going to provide as there are a lot of consumer complaints on 3G

mostly comprising of network failure and poor signal quality (approx 90% complaints).

Other findings from the study is that retailers are still confusing Reliance 3G launched by

RCOM with Reliance 4G going to be launched by RJIL and they have benchmarked 4G

services of reliance based on Reliance 3G when actually they are both from different groups

of Reliance. This perception needs to be changed and steps have to be taken through a strong

marketing campaign.

The limitations of my study is that there are more than 10,000 retail outlets in and around

Bhubaneswar city, and my study is only based on 10% of the entire retailer base of the city

mainly due to lack of time .Therefore I cannot guarantee that the inferences are accurate but it

does give a overview of the entire market.

Conclusions from the study

From the study it is clear that Aircel is doing a booming business in 3G as far as

Bhubaneswar is concerned

Airtel also is regarded high

Reliance 3G is widely recognized but they are eating up their own consumer base

,majorly due to poor network which had lead to dissatisfaction among consumers

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3G is very much in demand now in Bhubaneswar and there has been an increase in

consumers seeking 3G connections

Retailers are mostly aware of the 4G network that is going to be launched in

Bhubaneswar by RJIL and are speculating about it

Retailers expect a more reliable network with the introduction of 4G with lesser

consumer complaints

Recommendations

Majority of retailers confuses RJIL to be same with RCOM (Reliance

Communications) headed by Anil Ambani group , so it’s the responsibility of the

company to clarify the confusion through their marketing campaign

A decent proportion of the retailers have a negative impression about Reliance(RJIL)

4G just because they confuses it with RCOM 3G which is recently facing lot of

consumer complaints due to slow connectivity which needs to be corrected

Distribution network of reliance is also proving to be very dissatisfactory for the

retailers which need to be taken care of by the company.

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1. INTRODUCTION TO THE COMPANY

"I am confident that Jio will play a significant role in lifting India from its current 142nd rank on

Internet penetration to among the top 10 nations in the world,"-Mukesh Ambani, Owner RJIL

Reliance Jio infocomm limited (RJIL) is a subsidiary of Reliance industries limited (RIL)

which is headed by world renowned businessman and billionaire, Mr.Mukesh Ambani. It was

formerly known as Infotel Broadband services limited by changed its name to Reliance Jio

infocomm limited in January 2013.The Company is Mumbai based and it was incorporated in

January 2007.

Reliance jio will provide broadband services to customers using WI-max as access

technology across India. RJIL will be the first telecom company to launch 4G pan India.

RIL reentered the telecom sector in 2010 by buying the only company that had won pan India

4G spectrum in an auction. The telecom company has still been unable to commercially

launch its 4G services primarily due to the technology standards that it has adopted, TDE-

LTE is still being developed globally. The company is in the penultimate stage of launching

its services commercially. The company started offering its beta version of services in the 1st

week of March, 2015. In the beta phase company offers its services in its entirety but only to

a close group, which includes all the stake holders (Employees and Vendors) .It completed

the alpha phase of 4G services by the end of February, 2015 During this period the company

has completed Test schedule and test procedure (TSTP) for 4G technology in 19-20 circles

where it demonstrated speeds of 29 to 40 Mbps.

In the beta phase of testing Jio is not only testing the voice and data services but also testing

the various applications like Jio drive which is similar to Apple face time where people can

make video calls. RJIL has been focusing on various apps be it magazine, movie store, music

store, games and other entertainment stores.

Reliance jio has invested an estimated total of 70,000 crores in this project and rumors are

that they are going to invest 50,000 crores more in the project and the 4G network will cover

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over 90% of the urban India and approximately 215,000 villages in India. In order to provide

4G coverage Pan India, the company is planning to commission more than 100,000 base

stations by the end of 2015.

In order to provide better services to its customers, the company is planning to automate 4G

services by launching a customer portal where prospective consumers can fill in their details

and choose their tariff plan from the existing bouquet of services which can be changed as per

consumer’s requirement. RJIL is also planning to deliver 4G SIM cards at customer

locations. All these services will be the first of a kind and is expected to create a revolution in

the Indian telecom industry, as by the words of Mr. Mukesh Ambani the objective is to

improve rank of India in internet penetration from 142 to among top-10 countries.

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 networks.

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 fiber

connectivity, setup its internet point of presence, offer internet transit and peering services as

well as data and voice roaming services in Singapore.

RJIL has finalized key agreements with its technology partners, service providers,

infrastructure providers, application partners, device manufacturers and other strategic

partners for the project. These strategic partners have committed significant resources,

knowhow and global talent to support planning, deployment and testing activities currently

underway The company is planning to provide the voice and data services at half the current

rates prevalent in the market. And the primarily objective is to provide 85% of voice and 15%

of data services to customers. Mukesh Ambani has recently announced the launching of

commercial services by December, 2015 which has created a buzz in the market

Reliance Jio has:

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 utilize 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)

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2. LITERATURE REVIEW

Telecommunication has come a long way from 1st generation of communication now to 4

th

generation of telecommunication popularly known as 4G.In India telecom revolution started

somewhere in the mid nineties when TRAI was formed (Telecom Regulatory authority of

India) in 1997 .Cellular services were launched in 1999.India has moved about 20 years in

the last 10 years in telecom revolution, talking about facts and figures, Now India is the 2nd

largest mobile market by mobile connections and unique subscribers At present there are

more than 900 million mobile connections across the country and this figure is expected to

rise to 1.17 billion by end of 2017.

While large majority of mobile services available in India are based on 2G technology, the

country has seen the adoption of 3G technology accelerate in the recent years. With improved

.spectrum pricing and management, the growth of mobile broadband services is expected to

continue, with prediction that 3G and 4G adoption will increase by 31% between 2013 -2017.

But, Still India lags behind the other world’s major economies in mobile penetration.

Network investment is held back by low tariffs due to market condition, and usually high

level of competition, burden caused by the government policies, high cost of spectrum

access. India operators have the lowest profitability ratios in the Asia pacific zone. This

affects the ability to upgrade consumer services, meet demand of the urban population and

network expansion to provide coverage to people living in urban areas.

Few stats and figures showing 2G vs. 3G mobile scenario in India is as follows. Voice traffic

growth have slowed and data and value added services are growing and expected to grow by

31% till 2017.Effective pricing per minute declining sharply across India and has declined by

8% in the past 6 years. Mobile penetration has been seeing a directly proportional trend with

the increase in GDP of the economy. Voice growth has declined from 175% in 2005 to 19%

in 2012.

3G and 4G has lot of potential in the India market, So far however 3G technology in India

has been hindered by small amount of spectrum allocated to mobile services and the very

high spectrum prices reached during 2010 spectrum auction. In recent years however India

has seen increase in 3G adoption with better spectrum pricing and adoption.

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FIG 2(a) Landscape change from 2G to 3G and now 4G

This data is from research paper by GSMA termed as “ Indian mobile economy 2013”,There

has been a lot of study on the penetration of the current market by 3G and what all

revolutions 4G can bring in the telecom sector as mentioned in “India 4G and cellular market

Analysis and forecast,2010-2015”

The State of Indian companies in 4G is listed here (as on nov 2012)

Table 2(b) Scenario of 4G companies as on Nov-2012

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A lot of research has gone into understanding why 2G is still highly sought by consumers,

what is the requirement to do a paradigm shift in telecom sector and replace voice by data

and lot of research papers that has been published covering these problems.

All these studies have been done on the country wide basis i.e. at a macro level and also at

micro level. Researchers have tried to analyze the market potential in different cities of the

country for 4G business. I figured out that there is a need to understand the problem at micro

level i.e. in a city and doing a personal interaction with the business customers

(retailers).Hence I based my study in Bhubaneswar.

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3. PROBLEM DEFINITION (Part 1)

3.1 Background to the problem

One of India’s first planned cities Bhubaneswar is the capital of Odisha. Bhubaneswar is

categorized as a Tier-2 city. An emerging Information Technology (IT) and education hub,

Bhubaneswar is one of the country's fastest-developing cities. The Bhubaneswar urban

development area consists of the Bhubaneswar Municipal Corporation area, 173 revenue

villages and two other municipalities spread over 393.57 square kilometers (151.96 sq mi).

The area under the jurisdiction of the Bhubaneswar Municipal Corporation covers 135 square

kilometers (52 sq mi). Bhubaneswar is ranked as the best place to do business in India by

World Bank. It has emerged as one of the fast-growing, important trading and commercial

hub in the state and eastern India. It has been listed among the top ten emerging cities in India

by Cushman and Wakefield, taking into consideration factors like demographics, physical,

social and real estate infrastructure, current level and scope of economic activities and

government support. Bhubaneswar had a population of 837,737, while the metropolitan area

had a population of 881,988.

Reliance jio infocomm limited (RJIL) has a vision of taking India to the next level of internet

revolution. India has beforehand experienced 4G but in tits and bits. Bharati Airtel paid

₹33.1436 billion (US$530 million) for spectrum in 4 circles: Maharashtra and Goa,

Karnataka, Punjab and Kolkata. The company was allocated 20 MHz of BWA spectrum in

2.3 GHz frequency band. On 10 April 2012, Airtel launched 4G services through dongles and

modems using TD-LTE technology in Kolkata, becoming the first company in India to offer

4G services Airtel launched 4G services on mobile from February 2014. The first city to get

the service was Bangalore. Airtel has started their 4G services in Karnal and Yamunanagar in

Haryana on 16th June 2015. Airtel 4G trials has been started in Delhi from 18th June

2015,Airtel had 1,20,000 4G subscribers as of May 2014.But they were not able to acquire

pan India license to launch 4G across the country and there services are only limited to few of

the major cities of the country. So as of now 4G is still a very new prospect in a developing

country like ours and there is lot of room for development and progress.

Reliance Jio Infocomm Limited acquired PAN India license to launch 4G and the company

has been allocated spectrum of 2300, 1800,800 MHz’s as mentioned earlier it has invested a

huge lumsum amount in this project and has collaborated with the world’s best telecom giants

to gain their technology. It has yet to commercially launch its services in India and final

testing phase is running.

Now, Bhubaneswar as clear from the above mentioned stats and facts is one of the major

cities of India and the fast growing city of the country, therefore there is a surge in the market

to make the maximum out of the business potential of this city. Reliance jio has been very

proactive in their approach as they already have established 2 jio centers in Bhubaneswar.

The demarcation of the jio centers is done based on population. It is to be mentioned here that

there are total 1071 jio centers in India and Odisha itself has 31 jio centers. But 4G being a

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New technology in India, there is a huge challenge lying ahead for the company as it is not

going to be an easy task for them

3.2 Statement of the problem

Few of the challenges are mentioned below:

(a) People are afraid of changes, they are very unsure about adapting a new technology

(b) Creating awareness among the mass about the fruitfulness of the product

(c) 3G is still trying to find its way among the customers in India, at this stage success of

4G is always a case of probabilities

(d) Rising up to the expectations of the people is not an easy task especially when you are

working in India where infrastructure and accessibility are very big challenges.

3.3 Objectives

As understood from the following points, these same conditions are applicable to

Bhubaneswar and the company is putting all efforts to create awareness about the product in

the market .The objective of the study is to study the current state of 3G services in

Bhubaneswar, the satisfaction level of the retailers with respect to the current 3G service

providers and their expectations from upcoming 4G network in Bhubaneswar

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4. APPROACH TO THE PROBLEM

4.1 Path adopted

I started by analyzing the current market scenario in Bhubaneswar, where I moved into

almost 200 retail outlets in different parts of Bhubaneswar and tried to figure the current state

of internet connectivity in these enterprises and their expectations. It was a kind of

exploratory research I was doing and after talking to lot of consumers I identified few

variables on the basis of which I can carry out my further research.

4.2 Parameters taken to solve the problems:

The variables that were Identified after talking to numerous retailers in Bhubaneswar are

namely:-

(k) Awareness about Reliance 4G (RJIL)

(l) Network on Demand

(m) Satisfactions from plans and offers in 3G

(n) Demand for 3G SIM activation

(o) Company which sells the highest volume of 3G recharge

(p) Recharge on Demand

(q) Distribution network of reliance

(r) Willingness to provide 4G

(s) Satisfaction on the margin gained by selling 3G

(t) Complaints on 3G from customers

Based on these variables I have prepared a questionnaire that I used to study the 3G business

in Bhubaneswar and what people expect from 4G.The questionnaire has been attached below.

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5. RESEARCH METHODOLOGY

5.1 Research Design

I started by analyzing the retail scenario of telecom sector in different parts of Bhubaneswar

city (Western Bhubaneswar, Northern Bhubaneswar, Central Bhubaneswar & outskirts of

Bhubaneswar namely Gothapatna, Ghanghapatna, Sumpur, Chandaka, Pitapali etc). The

objective of my study on the retailers was to know what they feel about the current scenario

of 3G in Bhubaneswar, has it evolved with time?, has people realized the need for high

speed connectivity in Bhubaneswar?, what is the scope of 4G in the current market?

The title of my study is “Retailers take on 3G business in Bhubaneswar and scope of

upcoming 4G connectivity -A study”

The flow char of the research design is as follows:

Problem Identification

Approaching the retailers to

understand there take on

the problem and possible

factors

Questionnaire designing

based on the identified

factors

Pretesting of the

questionnaire

Data collection from the

primary sources

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FIG5 (a) Flow chart of the research Design

5.2 Data collection from Primary sources

I have distributed my sample into 4 parts as mentioned below.

Western Bhubaneswar (Nayapalli, Baramunda, CRPF, Khandagiri)- 58 Samples

Northern Bhubaneswar ( Jayadev Vihar, IRC village)- 42 samples

Central Bhubaneswar (Shaheed Nagar, Master canteen)-20 samples

Outskirts of Bhubaneswar (Gothapatna, Ganghapatna, sumpur, Chandaka, Pitapali)-40

samples

The sample distribution is shown below diagrammatically

Data Analysis using

frequency analysis and two

step cluster analysis on SPSS

Results and conclusions

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FIG 5(b) Sample distribution

5.3 Sampling Technique

My objective was to divide the responses into clusters where I can find homogeneity between

the responses as well as heterogeneity of the responses of the retailers and for that purpose I

have applied two step cluster analysis on SPSS as variables I have used are both categorical

as well a continuous and total sample size I have taken is n= 160

The coding of the variables on SPSS has been done as follows

Variable Coded response Awareness about RJIL YES-1 ,NO-0

Network on Demand 3G-1 , 2G-0

Company with highest 3G recharge Sale Airtel-1, Aircel-2, Reliance-3, BSNL-4,

Docomo-5

Recharge on Demand Voice-0 , Data-1, Both-2

Region of study Western bbsr-1, Northern bbsr-2, Outskirt-3,

Central-4

Category of retailer(based on monthly

recharge amount) *Amount in INR

*Rcrg<10,000-1

Rcrg>10,000 <1,00,000-2

Rcrg>1,00,000 <5,00,000-3

Rcrg>5,00,000-4

Longevity of retail shop(based on starting of

operation)

New-0, Relatively new-1, old-2

Table 5(c) Coding of the variables

36.25%

26.26%

12.50%

25.00%

Samples

Western

Northern

Central

outskirt

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5.4 Questionnaire development

After a qualitative study of the retail business in telecom in Bhubaneswar and in consultation

with the faculty as well as industry mentor, I have prepared a questionnaire that will suffice

the objective of my study.

The type of scale that I have used is Continuous rating scale in this kind of scale respondents

rate the objects by placing a mark at the appropriate position on a line that runs from one extreme

of the criterion variable to the other. The form of the continuous scale may vary considerably.

Version 1:

Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Probably the best

Version 2:

Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - Probably the best

0 10 20 30 40 50 60 70 80 90 100

Version 3:

Very bad Neither good Very good

nor bad

Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - -Probably the best

0 10 20 30 40 50 60 70 80 90 100

After developing the questionnaire few pilot studies were done to validate the authenticity of

the questionnaire and reliability of the scale. After that the questionnaire was used to collect

data from the retailers.

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6. DATA ANALYSIS

Pictorial representation of the data that has been collected is as shown below

6.1 Demand for 3G in current market

FIG 6 (a) Demand for 3G in western Bhubaneswar

88% of the retailers in western Bhubaneswar agree that there is demand for 3G in current

market while 12% say that 2G is still prevalent in the market.

FIG 6 (b) Demand for 3G in Northern Bhubaneswar

3G 88%

2G 12%

Western Bhubaneswar

3G 76%

2G 24%

Northern Bhubaneswar

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In northern Bhubaneswar 76% of the retailers agreed that there is demand for 3G in the

current market and people have started shifting from 2G users to being 3G whereas 24%

contradicted with this opinion.

FIG 6(c) Demand for 3G in outskirts of Bhubaneswar

85% of the retailers in the outskirts of Bhubaneswar responded that 3G is high on demand.

FIG6 (d) Demand for 3G in central Bhubaneswar

3G 85%

2G 15%

Outskirts of Bhubaneswar

3G 80%

2G 20%

Central Bhubaneswar

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In central Bhubaneswar 80% of the respondents have said yes to the demand of 3G in current

market whereas only 20% have denied and have said 2G is still prevalent in the market.

6.2 Company doing highest sale in 3G

(i) Western Bhubaneswar

FIG 6(e) Company doing highest business in 3G in western Bhubaneswar

Aircel is doing highest business in 3G in western Bhubaneswar followed by Airtel and

Reliance.

(ii) Northern Bhubaneswar

FIG 6(f) Company doing highest business in 3G in Northern Bhubaneswar

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Airtel Aircel Reliance BSNL Vodafone Docomo

Series1

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Aircel Airtel Reliance BSNL Vodafone Docomo

Series1

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In northern Bhubaneswar, Aircel is doing highest business in 3G followed by Airtel and

BSNL.

(iii)Central Bhubaneswar

FIG 6(g) Company doing highest business in 3G in Central Bhubaneswar

In central Bhubaneswar, Aircel is again the dominant player followed by Reliance and Airtel.

(iv) Outskirts

FIG 6(h) Company doing highest business in 3G in Outskirts of Bhubaneswar

In the area consisting of the outskirts of Bhubaneswar which basically comprises of

Gothapatna, Gangahapatna, Khorda, Pitapalli,Chandaka ,Mendhasal etc .Aircel again is doing

a hefty business followed by Reliance and BSNL.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Aircel Airtel Reliance BSNL Vodafone Docomo

Series1

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Aircel Airtel Reliance BSNL Vodafone Docomo

Series1

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6.3 Recharge on Demand

FIG 6(i) Recharge on demand in western Bhubaneswar

In western Bhubaneswar, majority of respondents have responded that both voice and data

are equally in demand in the market.

FIG 6(j) Recharge on demand in northern Bhubaneswar

In northern Bhubaneswar also majority of retailers also have responded that both voice and

data are equally in demand in the market, whereas traditionally voice has always lead the

telecom sector in India , data is finding its way into the current market

Voice 17% Data

11%

Both 72%

Western Bhubaneswar

Voice 33%

Data 10%

Both 57%

Northern Bhubaneswar

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FIG 6(k) Recharge on demand in central Bhubaneswar

In central Bhubaneswar, data has the majority share followed by voice which signifies that

people have understood the importance of data.

FIG 6(l) Recharge on demand in Outskirts of Bhubaneswar

In Bhubaneswar outskirts, again data has surpassed voice which is a remarkable feet, which

also signifies that the potential for data in the market is high and company needs to explore it

Voice 30%

Data 45%

Both 25%

Central Bhubaneswar

Voice 20%

Data 60%

Both 20%

Outskirts of Bhubaneswar

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From the above frequency analysis we can conclude a few things like:

(i) Aircel is doing a booming business in Bhubaneswar as far as 3G is concerned and

it is currently the market leader in 3G in Bhubaneswar

(ii) Data has started overtaking Voice ,which is a good sign for 4G launch as people

have started realizing the need for data

(iii) 3G has started gaining usability among customers and these customers are the

prime targets which have the highest probability to switch to 4G after launch.

Cluster Analysis

As mentioned earlier I have done a two –step cluster analysis on SPSS for a sample size

n=160, I adapted two step cluster analysis because I have both continuous variables and

categorical variables. The scale I have used here is a continuous rating scale in which values

range from 1 to 5

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FIG 6(m) Priority order of variables

While sampling the variables, the factor company having highest sale in 3G has been give the

prime importance and Demand for 3G has been given the least importance

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FIG 6(n) cluster sizes and ratio of their sizes

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As we can see SPSS gave us two clusters out of the data set we entered,

Cluster-1(34.4%) Cluster-2(65.6%)

FIG 6 (o) Detailed analyses of the two clusters

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From figures 1.2 we can see that the clustering has been done based on 10 predictor

variables out of which variable company with highest 3G recharge sale has been given the

maximum importance in clustering the data set.

Cluster-1: In this cluster all those respondents are included who said

Airtel sells the highest 3G recharge in Bhubaneswar (29.5%)

These are those retailers who sell more than 1, 00,000 INR but less than 5, 00,000

recharge monthly. (54.3%)

They said that 3G is currently more in demand in Bhubaneswar (63.8%)

And they are the established retailers who have been in operation for more than 2

years so we can assume they have a good knowledge of the market. (48.6%)

Majority of these retailers have still minimum knowledge of the upcoming 4G

connectivity that is going to be launched by RJIL

Majority of them belong to Northern Bhubaneswar

They all agree that 3G is in demand in Bhubaneswar

Plus they are willing to provide 4G connections to customers

They are relatively satisfied with the margin they get by selling 3G

Cluster-2:In this cluster all those respondents are included who said

Aircel sells the highest recharge 3G recharge in Bhubaneswar (83.6%)

These are those retailers who sell less than 10,000 INR recharge monthly

They said that 3G is currently more in demand in Bhubaneswar

They are relatively new retailers who have been in operation for less than a year.

Majority of the retailers are aware of the upcoming 4G connectivity that is going to

be launched by RJIL

Majority of them belong to western Bhubaneswar

They agree that 3G is in demand in Bhubaneswar

They are willing to provide 4G connectivity to customers

They are relatively satisfied with the margin they get by selling 3G

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7. RESULTS

I have tried to bring each and every retailer to a conversation and ask them about complaints

they have heard from the consumers using 3G.

Few of the findings of the research undertaken are as follows:

3G has a growing market in Bhubaneswar although traditionally 2G has always

dominated the telecom business in India but there is a shift in the paradigm in recent

years

Aircel is dominating the 3G market in Bhubaneswar, followed by Airtel and Reliance

Voice is still dominant in the market but people has started realizing the need of data

,obviously data is the future of telecom industry

RJIL is focusing 85% on data and 15% on voice, and the current market scenario is

favorable for them

The major complain that retailers are facing from the 3G users is network failure

especially in Reliance 3G which is reducing the credibility of the network

Awareness is there in the market of the upcoming 4G launch in Bhubaneswar ,but

they are skeptical about it

The prime reasons of that is 3G is not matching up to the expectations of the retailers

as well as the consumers and RJIL need to take care of that

Majority of the retailers in Bhubaneswar agreed readily to provide 4G connections to

the customers

Retailers are satisfied with the margin they are gaining by selling 3G but they expect

something more from 4G

Overall we can say that RJIL has to explore the unimaginable potential that is there in the

current market, 3G is finding a mark in the market which is good news for the company,

and these customers that are using 3G are the most probable customers that are likely to

switch to 4G after the launch.

It time that marketing activities should run in full force in order to create anticipation in

the market for 4G and they better meet the high expectations the people have put on 4G .

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8. LIMITATIONS AND CAVEATS

The study that I have conducted is limited to only major areas of Bhubaneswar city and this

study cannot be generalized for the entire Bhubaneswar zone .There are more than 10,000

retail stores in and around Bhubaneswar and this study is only an overview of the entire

market.

Moreover, I cannot guarantee that the responses that I have collected are unbiased as retailers

have their own agendas and loyalty towards the brand they sell. Literacy level of few the

retailers is also an issue as it makes it difficult for us to make them understand the questions

in the way they are meant.

The time we got to carry out the study is less than a month as it was a major constraint for

me, it is difficult to cover all your bases in such a limited time period and that’s why I limited

my sample size to equal but limited proportions from different areas of Bhubaneswar

One of the major caveats is the hostility of the retailers, I found in some parts of

Bhubaneswar retailers are very hostile to such kind of survey and they are very unwilling to

respond to the questions.

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9. PROBLEM DEFINITION (Part 2)

9.1 Background to the problem

As we know Reliance jio Infocomm limited is going to launch 4G services Pan India by

the end of 2015.An important performance indicator for 4G is a fluent high speed service

both in voice and data which is a tough task especially in a country like India where internet

traffic is very high both inside and outside buildings. For outdoor coverage RJIL has already

established base stations everywhere as mentioned earlier but for Indoor coverage and to

make sure that while working inside big corporate offices and using your phone for internet

services you don’t face the problem of slow connectivity due to interferences, RJIL has come

up with an unique solution know as IBS ( In building solution).

IBS extend voice and data coverage where it’s most needed, an estimated 80% of traffic is

expected to be generated within buildings it can enhance quality, improve Mobile broadband

throughput and add capacity for greater usage indoors. It integrates seamlessly with your

existing network. It is designed to address specific commercial and technical requirements,

improving the service for your end –users.

The rise of the smart phones, along with the trend of bandwidth hungry apps and services ,is

driving an unprecedented surge in High speed data and voice traffic .At the same time

,subscribers are demanding more from their networks-faster data speeds, better coverage and

higher bandwidth.

9.2 Statement of the problem

Now talking about the scenario in Bhubaneswar, There are numerous enterprises in

Bhubaneswar which can be categorized in three segments namely:

(i) Large enterprises

(ii) Small-Medium enterprises (SME)

(iii) Small office Home office (SOHO)

To decide on where IBS installation is required is a challenge for the organization.

9.3 Objective The Company’s objective is find out the how many enterprises belong to

which category and accordingly decides on the requirement of IBS installation based on

(i) Infrastructure

(ii) Strength of the enterprise (based on no of students /employees)

(iii) Number of Laptop and computers used in the enterprise

(iv) Number of Smartphone users

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10. RESEARCH METHODOLOGY

10.1 Data collection from primary sources

We have covered different parts of Bhubaneswar for data collection namely:-

Gothapatna- 22 enterprises

Khurda- 12 enterprises

Jayadev vihar -39 enterprises

Chandrashekharpur-14 enterprises

Ashoka Nagar-10 enterprises

BapujiNagar-16 enterprises

Shaheed Nagar-17 enterprises

Nayapalli-17 enterprises

Depending on the criteria’s that were set for eligibility for IBS installation, we have

recommended few of the enterprises for IBS installation out of the various enterprises

we have visited on behalf of the company.

31 | P a g e

11. CONCLUSIONS AND RECCOMENDATIONS

11.1 Conclusions

From the study it is clear that Aircel is doing a booming business in 3G as far as

Bhubaneswar is concerned

Airtel also is regarded high

Reliance 3G is widely recognized but they are eating up their own consumer base

,majorly due to poor network which had lead to dissatisfaction among consumers

3G is very much in demand now in Bhubaneswar and there has been an increase in

consumers seeking 3G connections

Retailers are mostly aware of the 4G network that is going to be launched in

Bhubaneswar by RJIL and are speculating about it

Retailers expect a more reliable network with the introduction of 4G with lesser

consumer complaint

IBS installation

There are more numerous enterprises in and around Bhubaneswar out of which there

are almost 25% enterprises in Bhubaneswar zone that are eligible for IBS installation

11.2 Recommendations

Majority of retailers confuses RJIL to be same with RCOM (Reliance

Communications) headed by Anil Ambani group , so it’s the responsibility of the

company to clarify the confusion through their marketing campaign

A decent proportion of the retailers have a negative impression about

Reliance(RJIL) 4G just because they confuses it with RCOM 3G which is recently

facing lot of consumer complaints due to slow connectivity which needs to be

corrected

Distribution network of reliance is also proving to be very dissatisfactory for the

retailers which need to be taken care of by the company.

32 | P a g e

12. EXHIBITS

12.1 Questionnaire

3G Business in Bhubaneswar and retailers

expectations from 4G

AREA………………………………

Q. Are you aware of 4G Network that is going to be launched by Reliance?

YES NO

Q What type of connection people mostly ask for?

2G 3G

Q. What customers looks for frequently when they ask for recharge?

Voice Recharge Data Recharge

Q Are the plans and offers provided by all 3G network attractive to

customers? (5–very high, 4-high,3-average,2-moderatley low ,1-very low)

.1 .2 .3 .4 .5

Q. What is the demand for 3G SIM card activation among customers? (5 –

very high, 4-high, 3-average,2-moderatley low ,1-very low)

.1 .2 .3 .4 .5

33 | P a g e

Q. Which company recharge sells more in 3G?

1. Reliance 2. Airtel 3. Idea 4. Vodafone 5.Any other…………….

Q Are you satisfied with the distribution network of Reliance? (5 –very

high, 4-high,3-average,2-moderatley low ,1-very low)

.1 .2 .3 .4 .5

Q. Rate the Margin you gain by selling 3G services on a scale of 5.

(5 –very high, 4-high,3-average,2-moderatley low ,1-very low)

.1 .2 .3 .4 .5

Q How is 3G business running in Bhubaneswar (5 –highly satisfactory, 4-

satisfactory, 3-average,2-moderatley low ,1-very low)

.1 .2 .3 .4 .5

Q What may be the possible faults in 3G services in Bhubaneswar?

…………………………………………………………………………..

Q. Are you willing to provide 4G connections to customers? (5 –strongly

yes, 4-yes,3-may be,2-no ,1-strongly no)

.1 .2 .3 .4 .5

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14. REFERENCES

1. “Indian mobile economy 2013” –GSMA

2. “India 4G and cellular market Analysis and forecast, 2010-2015”

3. http://www.teleanalysis.com/news/reliance-jio-beta-launch-of-4g-13674.html

4. Economic times

5. http://www.ripublication.com/gjmbs_spl/gjmbsv3n2spl_02.pdf- “A Study Report, to

Find out Market Potential for 4g Businesses in Pune