Reliance Communication Limited

RELIANCE COMMUNICATIONS LIMITED

An Internship Report

ASHIK AZEEZ K PID: P001066359

In Partial fulfillment of the Master’s Program in Business Administration, Ohio University Athens,

USA

OHIO University Christ College Academy for Management Education,

Christ College Campus, Hosur Road, Bangalore-560029.

May 2007

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DECLERATION

I, Ashik Azeez K hereby declare that this project work entitled “A Study About

Organization” of Reliance Communications Limited is a record of work carried

out by me under the guidance of Mr. Pranesh Mallaya (Money Reconciliation

Coordinator) in partial fulfillment of the requirement for the award of degree of

Master of Business Administration of Ohio University.

I also declare that this Internship Report is the result of my own effort and has

not been submitted to any other Institution/ university for any Degree/ Diploma

or recognition before.

Date:

Place: Ashik Azeez K

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Acknowledgement

I would like to express my gratitude to all those who gave me the

opportunity to complete this internship report. I express my sincere

thanks to my Supervisor Mr. Pranesh Mallaya (The Money

Reconciliation Coordinator) whose help, stimulating suggestions and

encouragement helped me in all the time of internship and writing of this

report. I have been able to learn a lot under him which given me the

opportunity to widen my horizon of knowledge and learning. It was a great

pleasure to work under him.

I am deeply indebted to Mr. Gopu Kumar (CSD Department Head) for

permitting me to do Internship project in Reliance Communications

Limited, and encouraged me to go ahead with my internship project. I

would like to take this opportunity to thank my Uncle Mr. Abdul Majeed

(Anti Corruption and Vigilance of Police) who confirmed the permission

from the concern person of this organization.

I gratefully thank to all Departmental managers and Employees of

the organization who supported me during my internship period. I want to

thank them for all their help, support, interest and spending their valuable

time for me.

I would especially like to express my gratitude to Mr. Shiv Prakash,

Associate Director of Ohio University Christ College Academy for

Management Educatioin, Dr. Amalendu Jyotisi (Assistant Director of

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special projects), and Mr. Girish M (Coordinator of special projects) for

all the assistance and guidance for my internship.

Especially, I would like to give my special thanks to my parents and

relatives whose patient love enabled me to complete this work and for

being very supportive throughout these 45 days.

Lastly but not the least, I also take the opportunity to thank my friends

who looked closely at the final version of the report for English style and

grammar, correcting both and offering suggestions for improvement in

difficult times.

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Table of contents

Executive Summary 1

Telecom Industry Profile 3

Latest news about Indian telecom industry 5

Reliance - ADA Group 7

Chairman’s Profile 10

About Company 12

Vision 13

Mission 14

Board of Directors & Other Company Information 15

Principal Operating Companies 16

Products & Services 18

Organizational Structure of Reliance Communications LTD 25

Competitive Analysis 70

What makes Reliance Communication Different? 73

SWOT Analysis 74

Limitations 76

Recommendations 77

Conclusion 78

Bibliography 79

Appendix 80

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EXECUTIVE SUMMARY

The internship is an integral part of the Master of Business Administration

program. The organization that I chose for my internship project is Reliance

Communications Limited, Cochin (Kerala). This six-week period of my internship

in such a huge organization gave me a real time exposure to know about the

organizational working process. Reliance Communications is India’s largest

information and communications service provider with over 32 million

subscribers. It is doing its business by continuously delivering differentiated

products and services that provide high business value in return. I decided to do

an internship in Reliance communication because it’s a larger sector that is

booming now a day.

The basic objective of my internship was

to have knowledge of how the work environment is in a corporate world.

to study the existing procedures of Reliance Communications Limited.

to learn a detailed study about the organizational structure.

to learn the revenue assurance and credit control activities.

I have done this internship under a Commercial Department employee who is

the ‘Money Reconciliation Co-ordinator’ of this circle Office. I have done this

internship on “organizational study” of Reliance communications Circle Office in

Cochin. There is no financial department for this office, instead of that it is

known as Commercial department. The main work done in commercial

department is understanding the various process involved with financial

transactions, managing bank reconciliation, asset management, Revenue

assurance which is done to find out the leakages in the whole process, taking

necessary actions to correct the same in such a way that maximizes the total

profit of the organization and also it coordinates with other departments for

sales, assigning commissions to various channel partners, how they take care of

the customers grievances through customer care, etc.

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I also came to know about the structure of the organization and what kind of job

each department is associated with, how they calculate the Credit Fixation for

their customers, inventory management, billing and collection process, and the

various methods they follow for tracking the customers to avoid revenue

leakages and other purposes. I also gathered information about how the

Reliance World and Web World Express working for Reliance Communications.

It was a great pleasure to do my internship in Reliance communication and

overall it was a great learning experience and understanding for me.

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TELECOM INDUSTRY PROFILE

The telecommunications industry has made its mark in history. Telecom Industry

is one of the fastest growing sectors in the country. Telecommunications has

been zooming up the growth curve at a feverish pace in the past few years. It is

the transmission of signals over a distance for the purpose of communication.

Today, telecommunication is widespread and devices that assist the process,

such as the television, radio and telephone, are common in many parts of the

world. Indian telecommunication firms added 6.3 million new subscribers in

February 2007, taking the total user base above 203 million. Wireless service

providers continued to dominate user growth by adding 6.23 million subscribers

in February, while 67,000 new fixed-line users signed up.

The call rates of as low as 2-3 US cents a minute are luring customers in the

world's fastest-growing wireless services market. Britain’s Vodafone paid more

than US$ 11 billion for controlling a major chunk of the fourth-largest mobile

operator Hutchison Essar. In March, Indian GSM mobile phone service providers

signed up a record 6.1 million customers, taking total users to 121.4 million, The

March increase was the highest-ever monthly rise and compared with 4.9 million

new users in February.

The combined revenue of all operators from mobile businesses would be more

than double to US$ 33.1 billion by 2010, from about US$ 12.8 billion in 2006. The

total revenue of all telecom operators is also set to nearly double to US$ 43.6

billion in four years, from US$ 22.5 billion in 2006. The revenue share of mobile

business would rise to 76 per cent in the same period, from 57 per cent

currently.

India, which is adding over six million mobile subscribers every month, had

recently surpassed Russia to become the third largest mobile market in the

world after China and the US. The total mobile subscriber base in the country is

likely to reach 425 million by March 2010 With Bharti Airtel (GSM) and Reliance

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(CDMA and GSM) emerging as the top two mobile operators in terms of number

of subscribers the total mobile subscriber base in the country is likely to reach

425 million by March 2010.

With the Government’s decision to increase the foreign direct investment (FDI)

to 74% in this sector has generated interest among global investors. The share

of telecom in FDI rose from 3-4 per cent to 12-15 per cent in the calendar year

2006. UK-based Intec Telecom Systems, which offers operational support, access

billing and retail billing services for telecommunications operators worldwide,

has lined up a US$ 12 million expansion plan for its Bangalore office.

Cellular service provider Aircel has planned to expand its network to double its

subscriber base of 5 million over 18-24 months. Swedish telecom equipment

giant Ericsson announced an investment of US$ 100 million every year in India

with an option to enhance it depending upon the growth.

Cisco is starting a trial factory in Chennai for making Internet protocol-based

phones, as part of its US$ 1.1-billion investment plan for the country. India offers

an unprecedented opportunity for telecom service operators, infrastructure

vendors, manufacturers and associated services companies. Indian cellular

operators have lined up investments of about US$ 20 billion over the next two

years to bring over 80 per cent of the population under mobile coverage. The

planned investment for the next couple of years is 50 per cent higher than what

has been invested in the last 12 years.

The total mobile subscriber base in the country is likely to reach 425 million by

March 2010 with Bharti Airtel (GSM) and Reliance (CDMA and GSM) emerging as

the top two mobile operators in terms of number of subscribers.

Telecommunication network is the backbone of Communication sector. It is

difficult to predict the future of telecommunications technologies, services, and

applications that have not yet been invented.

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The monthly addition to the mobile phone network is shown in the Appendix

(TABLE 1.1). Also Growth of the telecommunication network from April 2006-

February 2007 is shown in the TABLE (1.2).

LATEST NEWS ABOUT INDIAN TELECOM

INDUSTRY

The telephone subscriber base in India has crossed 200 million. The GSM has

more than half of this subscriber base - that is 115.3 million. Total subscriber

base (mobile and fixed) of CDMA (code division multiple access) mobile group is

has already crossed the 200-million-mark. The total phone subscriber base was

more than 196 million.

While Bharti Airtel continues to be the industry leader with 35.4 million users and

a 30.74% of the GSM market share, the gap between the second and the third

players is marginal. The state-run Bharat Sanchar Nigam Ltd (BSNL) as the

second biggest GSM player has 25.4 million subscribers (22.07% share), and the

third largest GSM player Hutchison Essar has 25.3 million users (21.98%).

MTNL's GSM subscriber base in Delhi and Mumbai touched 2.578 million, while

Spice Telecom has also over 2.5 million subscribers. Aircel's user base in

February stood at 5.094 million, followed by Reliance Telecom's 4.11 million

subscribers.

The number of Internet subscribers grew at 25 per cent, while broadband users

grew from 0.18 million to 1.32 million in 2005-06. The number of broadband and

Internet subscribers in India is expected to reach 20 million and 40 million

respectively by 2010.

With the addition of nearly 70 million subscribers, the financial year witnessed

the highest ever increase in subscribers base during a financial year after the

opening up of telecom sector for competition, says the Telecom Regulatory

Authority of India (TRAI). According to TRAI, the subscriber base for telephony

services continues its growth during March 2007 with 3.93 million subscribers

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being added during the month. A total of 66.51 millions subscribers have been

added during the financial year 2006-2007 as compared to 41.91 millions in

2005-06, registering an increase of 58% in annual growth.

Wireless services subscriber base increased by 3.53 million in March 2007 as

compared with 6.21 million in February 2007. This lower growth in the month of

March 2007 can be attributed to insistence by the Government to ensure

verification of subscribers. The total wireless subscribers at the end of March

2007 are 166.05 million as compared to 98.78 million in March 2006 registering

an annual growth of around 68%.

In the Wireline segment a total of 0.40 million subscribers were added during

March 2007 as compared to a decline of 0.02 million in February 2007. With this

the total subscriber base of wireline reached 40.78 million in March 2007 as

compared to 41.54 million in March 2006 registering a decline 1.82%.

The gross subscriber base reached 206.83 million at the end of March 2007. The

teledensity is 18.31% at the end of March 2007 as compared to 12.80 at end of

the March 2006 registering an increase of 43%.

The Broadband connections (>256 Kbps download) in the country have touched

2.30 millions at the end of March 2007 as compared to 1.35 millions in March

2006 registering a growth of 70%. The broadband subscribers were 2.21 million

in February 2007 and thus there is addition of 0.09 million broadband

subscribers in March 2007.

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RELIANCE - ADA GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's

largest private sector enterprise, with businesses in the energy and materials

value chain. Group's annual revenues are in excess of USD 22 billion. The

flagship company, Reliance Industries Limited, is a Fortune Global 500 company

and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and

growth of Reliance. Starting with textiles in the late seventies, Reliance pursued

a strategy of backward vertical integration - in polyester, fibre intermediates,

plastics, petrochemicals, petroleum refining and oil and gas exploration and

production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum

refining and marketing, petrochemicals (polyester, fibre intermediates, plastics

and chemicals), textiles and retail.

Trust enjoys global leadership in its businesses, being the largest polyester yarn

and fibre producer in the world and among the top five to ten producers in the

world in major petrochemical products. The Group exports products in excess of

USD 11 billion to more than 100 countries in the world. There are more than

25,000 employees on the rolls of Group Companies. Major Group Companies are

Reliance Industries Limited (including main subsidiaries Reliance Petroleum

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Limited and Reliance Retail Limited), Indian Petrochemicals Corporation Limited

and Reliance Industrial Infrastructure Limited.

Across different companies, the group has a customer base of over 50 million,

the largest in India, and a shareholder base of over 8 million, among the largest

in the world. The interests of the Group range from communications (Reliance

Communications) and financial services (Reliance Capital Ltd), to generation,

transmission and distribution of power (Reliance Energy), infrastructure and

entertainment. Today, Reliance Communications is revolutionizing the way India

communicates and networks, truly bringing about a new way of life.

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NETWORK OF RELIANCE COMMUNICATIONS IN INDIA:

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CHAIRMAN'S PROFILE

Regarded as one of the foremost corporate leaders of contemporary India, Anil

Dhirubhai Ambani is the Chairman of all listed Group companies, namely:

Reliance Communications, Reliance Capital, Reliance Energy and Reliance

Natural Resources Limited.

Till recently, he also held the post of Vice Chairman and Managing Director in

Reliance Industries Limited (RIL), India's largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was

centrally involved in every aspect of the company's management over the next

22 years.

He is credited with having pioneered a number of path-breaking financial innovations in the

Indian capital markets. He spearheaded the country's first forays into the overseas capital

markets with international public offerings of global depositary receipts, convertibles and

bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2

billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

He is a member of:

Wharton Board of Overseers, The Wharton School, USA

Central Advisory Committee, Central Electricity Regulatory Commission

Board of Governors, Indian Institute of Management, Ahmedabad

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Anil Dhirubhai Ambani

Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of

the Rajya Sabha, Upper House of India's Parliament a position he chose to resign

voluntarily on March 25, 2006.

Awards and Achievements:

Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards

Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year

in the Business Barons - TNS Mode opinion poll, 2004

Conferred 'The Entrepreneur of the Decade Award' by the Bombay

Management Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India

Economic Forum (WIEF) in recognition of his contribution to the

establishment of Reliance as a global leader in many of its business areas,

December 2001

Selected by Asia week magazine for its list of 'Leaders of the Millennium in

Business and Finance' and was introduced as the only 'new hero' in

Business and Finance from India, June 1999

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ABOUT COMPANY

Reliance Communications Ltd. is a part of the Reliance group founded by Shri

Dhirubhai H. Ambani. Reliance Communications (formerly Reliance Infocomm)

was originally incorporated on July 15, 2004, under the Companies Act, 1956 as

Reliance Infrastructure Developers Private Limited. The status of the Company

changed from private limited to public limited on July 25, 2005. Further the name

of the Company changed to Reliance Communication Ventures Ltd with effect

from August 3, 2005. The name has since been changed to its present name, viz.

Reliance Communications Limited, under Fresh Certificate of Incorporation

consequent on change of name dated June 7, 2006.

Reliance Communications is one of India's largest integrated communications

service providers in the private sector. According to National Stock Exchange

data, Anil Ambani controls 66.75per cent of the company, which accounts for

more than 136 crore shares of the company. Reliance Communications is the

flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies.

Listed on the National Stock Exchange and the Bombay Stock Exchange, it is

India’s leading integrated telecommunication company with over 25 million

customers.

The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private

sector business houses on all major financial parameters, with a market

capitalization of Rs 100,000 crore (US$ 22 billion), net assets in excess of Rs

31,500 crore (US$ 7 billion), and net worth to the tune of Rs 27,500 crore (US$ 6

billion).

All businesses today are dependent on telecom to continue their day-to-day

operations. The range and quality of services that can be provisioned is

determined by the quality of the network deployed. Today everything is

digitalized for clearer and better transmission. Now the transmission of

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information happened much faster than we can imagine. This is what Reliance

communication is offering to their customers. With fibre optic network it provides

high quality transmission and faster information flow.

The Reliance Communications network consists of 60,000 kilometers of optical

fibre cables spanning the length and breadth of India. These cables can carry

thousands of billions of bits per second and can instantly connect one part of the

country with another. This physical network and its associated infrastructure will

cover over 600 cities and towns in 18 of the country's 21 circles, 229 of the

nation’s 323 Long Distance Charging Areas (LDCAs) and broadband connectivity

to over 190 cities. This infrastructure will be backed by state-of-the-art

information management systems and a customer-focused organization.

An interesting aspect of the network is the manner in which these fibres are

interconnected and deployed. Reliance's architecture is so fault-tolerant that the

chances of failure are virtually nil. Reliance's ring and mesh architecture

topology is the most expensive component to implement, but assures the

highest quality of uninterrupted service, even in the event of failure or breakage

in any segment of the network.

Reliance has 77 such rings across the country with at least three alternative

paths available in metros. Connected on this topology, the service has virtually

no chance of disruption in quality performance.

Access networks determine the services that can finally be delivered to

customer. Reliance Communications network has wireline access technologies

based on fibre as well as copper. Fibre in the access network makes broadband

services easy to deploy. The wireless access network deployed for CDMA 1X is

spectrum efficient and provides better quality of voice than other networks and

higher data rates. CDMA 1X also provides an upgradation path to future

enhancements.

VISION

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To build a globally leading enterprise and through it bring greater value to all our

stakeholders. We envision that through this enterprise, we will build a great

future for our country this will enable us to give millions of young Indians the

power to shape their destiny and means to realize their future potential.

We will continuously strive to enrich the loves of all our consumers and

customers through innovative and delightful products and services.

MISSION

Reliance Communications envisions a digital revolution that will bring about a

New Way of Life. A Digital Way of Life for a New India. The missions of the Co. is

achieved through the following sub missions:

With mobile devices, netways and broadband systems linked to powerful

digital networks, Reliance Communications will usher fundamental

changes in the social and economic landscape of India.

Reliance Communications will help men and women connect and

communicate with each other. It will enable citizens to reach out to their

work place, home and interests, while on the move. It will enable people

to work, shop, educate and entertain themselves round the clock, both in

the virtual world and in the physical world. It will make available television

programmes, movies and news capsules on demand. It will unfurl new

simulated virtual worlds with exhilarating experiences behind the screens

of computers and televisions.

Users of Reliance Communication’s full range of services would no longer

need audiotapes and CDs to listen to music. Videotapes and DVDs would

not be necessary to see movies. Books and CD ROMs would not be needed

to get educated. Newspapers and magazines would not be required to

keep abreast of events. Vehicles and wallets will become unnecessary for

shopping.

Reliance Communications will disseminate information at a low cost.

"Make a telephone call cheaper than a post card". These prophetic words

of Dhirubhai Ambani will be a metaphor of profound significance for

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Reliance Communications. Reliance Communications will regularly unfold

new applications. Continually adapt new digital technologies. Create new

customer experiences. Constantly strive to be ahead of the world.

Reliance Communications will transform thousands of villages and

hundreds of towns and cities across the country.

Above all, Reliance Communications will pave the way to make India a

global leader in the knowledge age.

BOARD OF DIRECTORS / KEY PERSONNEL

Anil D Ambani CHAIRMAN

J Ramachandran (Prof.) Director

S P Talwar Director

Gautam Doshi Director

Deepak Shourie Director

Hasit Shukla Co. Secretary & Compliance Officer

Basic Information

ROC registration number 11 – 147531

Incorporation year2004

Ownership Reliance Group [Anil Ambani]

Main activityCellular mobile phone service

Investors InformationRegistered office address Karvy Computershare Pvt.

Ltd. Street H Block, 1st Floor,

Dhirubhai Ambani Knowledge City,

Street Plot No.17-24, Vittal Rao Nagar, Madhapur,    

       City Navi Mumbai City Hyderabad State Maharashtra State Andhra Pradesh Pincode 400710 Pincode 500081

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Country code

91 Area code 22

Country code

91 Area code 40

Tel no. 30386010 Tel no. 23420815LISTED ON Bombay AND NATIONAL STOCK EXCHANGE (BSE &

NSE)

ISIN code INE330H01018 BSE demat code 532712 BSE listing group A NSE scrip code Rcom Face value (Rs.) 5

PRINCIPAL OPERATING COMPANIES

Reliance Communications Limited is a major operating company and is

also the holding company for the other major operating companies in the Group.

Reliance Communications provides CDMA-based wireless, wireline, broadband,

and long distance services in India and overseas. Its major assets are the CDMA

wireless network, transmission networks used in its business, and the contact

centres.

FLAG Telecom Group Limited (“FLAG”) is a wholly owned subsidiary of

Reliance Communications. FLAG provides international connectivity services and

infrastructure. Its major assets are the FLAG and FALCON submarine cable

systems.

Reliance Telecom Limited (“RTL”) and Reliable Internet Services Limited

(“RISL”) are wholly owned subsidiaries of Reliance Communications. RTL

provides GSM-based wireless services in 7 Circles, while RISL provides GSM-

based wireless services in 1 further Circle. RTL and RISL own the GSM wireless

networks in their respective Circles.

Reliance Communications Infrastructure Limited (“RCIL”) is a wholly

owned subsidiary of Reliance Communications. RCIL provides wireless

multimedia (Reliance Mobile World) and internet access (Reliance Net connect)

services to customers of Reliance Communications. It also undertakes wireless

handset distribution and marketing and IDC services.

The Sister Concerns Company having operations in Kerala

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Reliance Communications Ltd

Reliance Web Store Ltd

Reliance Infocom Engineering Ltd

Reliance Next Link

Reliance Digital World

Reliance Communications Infrastructure Ltd.

Reliance Telecom Infrastructure Ltd.

Team Lease Agency

Pragrithi Value Added Pvt. Solution

CHANGE OF NAME

The name of the Company was changed from Reliance Infocomm Limited to

Reliance Communications Limited with effect from June 7, 2006.

AUTHORISED CAPITAL:

During the year under review, the Company has subdivided its Rs.10/- paid up

equity share into Rs.5/- paid up.

The Authorised Capital of the Company has been, from time to time, increased

from

Rs.1, 00,000 divided into 10,000 Equity Shares of Rs. 10/- each to Rs.650 Crores

divided into 130 Crore Equity Shares of Rs.5/- each.

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PRODUCTS & SERVICES

WIRELESS:

Reliance Mobile

Reliance Mobile is India’s largest mobile service brand with over 30 million

subscribers. Reliance Mobile services now cover over 10,300 cities and towns

across India.

They have achieved many milestones in this short journey. In 2003, AC Nielsen

voted Reliance Mobile (formerly Reliance India Mobile) as India ’s Most Trusted

Telecom Brand. In July 2003, it created a world record by adding one million

subscribers in a matter of just 10 days through its ‘Monsoon Hungama’ offer.

Nearly 90 per cent of handsets are data-enabled, and can access hundreds of

Java applications on Reliance Mobile World. Reliance Mobile has ushered in a

mobile revolution by offering advanced multimedia handsets to the common

man at very affordable rates.

Reliance Mobile World

The Reliance Mobile World suite of Reliance Mobile is a unique Java-based

application. Its uniqueness lies in the fact that it enables complex Internet

application to be introduced in mobile phones effectively and quickly. Reliance

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Mobile World receives over 1.5 billion page views per month from Reliance

Mobile users.

Reliance Mobile World offers a wide array of applications that include hourly

news updates, high quality headline video clips, downloadable multi-lingual ring

tones, seasonal updates including festival specials, city and TV specials, exam

results, astrology, mobile banking, bill payment, stock information, commodity

prices, railway and air ticket booking.

With over 150 data applications offering varied services — unique to any

wireless service in India — Reliance Mobile World is truly a treasure house of

knowledge, information, entertainment and commerce.

Reliance Netconnect

Leveraging pan-India high speed CDMA2000 1x wireless network, Reliance

Communications offers the country’s foremost wireless Internet connectivity

through Reliance Netconnect nationwide. Reliance Netconnect is India’s fastest

growing Internet connectivity service which touched a user base of over 350,000

subscribers in less than seven months since its launch. The highlight of the

offering is that subscribers can connect to Internet on the move at data speeds

of up to 144 kbps from their laptops or any other mobile computing device.

Wireless POS for Credit Card transaction processing

In July 2003, Reliance Communications joined hands with HDFC Bank to deploy

India’s first wireless Point of Sale (POS) for processing credit card transactions. It

marked an eventful beginning in the history of retail credit cards in India.

Wireless POS enables banks to significantly expand the number of retail outlets

accepting credit cards. It has also expedited the penetration of credit card

services to smaller towns

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Thereafter, the NAC through its own network directed the credit card details to

the data center of the bank. The advantage of Wireless POS is that transactions

can be directly processed at the bank’s data centre skipping the PSTN

connection and the NAC infrastructure.

Wireless ATMs

The CDMA-based wireless connectivity solutions of Reliance Communications

facilitate banks to deploy ATMs expediently, over and above its advantages of

rolling out a nationwide network of secure and cost effective-wireless ATMs.

Unlike VSAT-based connectivity that banks traditionally depend upon, CDMA

solution eliminates the need of rooftop rights and consequential delays.

Mobile Virtual Private Network (VPN)

Reliance Communications’ Data VPN offering facilitates access to a user’s

desktop while he/she may be on the move. Through reliable CDMA network, the

user will be able access all the office applications, be it corporate e-mails,

Intranet portals, SAP or similar enterprise-specific application available only

within the corporate Intranet, at speeds of up to 144 kbps any time anywhere.

Vehicle Tracking System

At Reliance Communications, we have mapped the entire country and built a

high-end Geographical Information System. It enables to accurately pin-point

any location in the country. Reliance Vehicle Tracking System is among the

various other applications that leverages this world-class Global Information

System. The Vehicle Tracking System facilitates real-time tracking and

monitoring of road consignments and vehicles across India anywhere anytime.

BROADBAND

Wired to win

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The successful rolling out of real broadband services across the nation marks the

second chapter of Reliance Communications’ commitment to usher in a digital

revolution in India. Reliance Communications is setting new standards for the

world to follow through inventive use of cutting-edge technologies in the field of

fiber optics, Ethernet, microwave radios, switching, routing, digital compression

and encoding…

The uniqueness of Reliance Communications’ broadband initiative lies in the fact

that our entire nationwide network is being conceptualized and built from ground

zeroReliance Communications’ broadband service is set to revolutionize Indian

society by removing the traditional bottlenecks of development including a lack

of capital and a weak infrastructure, and help tide over the challenges of

distribution in a vast country like India.

E-education

The mission of Reliance Communications’ e-learning initiatives is to bring world-

class education to the doorstep of every Indian home. Utilising the pan-India

optical fibre and retail network, educational institutions can reach out to large

sections of students which otherwise would be very difficult to contact.

The Indian market possesses tremendous potential yet to be tapped and with

Reliance broadband the world’s top-rung educational institutions are set to

expand their sphere of influence beyond horizons and thus garner rich dividends

Libraries and laboratories around the world can be cross-linked making way for

seamless exchange of information and expertise. A student sitting in India can

have access to information at Oxford, while a teacher can exchange knowledge

with his counterparts across the world.

Digital Workplaces

Reliance Communications’ real broadband connectivity has changed the

dynamics of work. Our video conferencing service acts as a virtual bridge

between professionals working at different office locations across the world. It

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now makes no difference whether your colleague is sitting in your next cubicle or

across seven seas away.

E-healthcare

Reliance broadband is set to offer timely quality healthcare facilities at very

affordable rates to large sections of the Indian population irrespective of their

geographical location. The broadband connectivity is committed to usher in a

new generation of online healthcare delivery system.

Access to advance medical expertise can no longer be constrained by

geography. A patient can seek medical advice sitting at the comforts of home.

Doctors can attend to patients anywhere in the world on real-time basis. At the

click of the mouse, medical records and documents can be digitally dispatched

thousands of miles away.

Integrated Enterprise Solution

Reliance Communications’ Integrated Enterprise Solution offering is currently

being rolled out in 30 cities across India. It consists of an integrated voice, data

and video solution. The target is to expand its service to cover the entire country

eventually.

For Indian enterprises, our convergent voice-data-video solution framework,

delivered through fibre-to-the-building (FTTB) architecture introduces true

broadband connectivity. As per specific requirements of enterprises we provide

customised solutions be it a simple voice solution or complex data solutions that

involves nationwide networking of all branches, sales and field executives,

vendors, suppliers and customers at data speeds scalable from 64 Kbps to 100

Mbps. Reliance Communications’ core broadband products include MPLS based

VPN, leased lines, Gigabit Internet connectivity, video conferencing and video

telephony.

28

RURAL COMMUNICATION

Empowering Indian villages

Reliance Communications is committed to bringing about a complete revolution

in rural telephony. 80,000 kilometres of terabit optic fibre cable network forms

the backbone of our nationwide expansion, facilitating unlimited and

uninterrupted voice, data and video applications.

Reliance World, the unique infotainment data application, already enjoys 1.5

billion page views a month. With this roll out, countless more Indians will be able

to avail of our services and stay connected. Rural India will have unlimited

access to the Internet through the increasingly popular Reliance Netconnect. It

will surely put India on the fast track to knowledge-led leadership. It is a

recognized fact that each point of increase in tele-density results in a 3 per cent

growth in the country’s GDP.

Village Public Telephone

Reliance Communications’ Village Public Telephone (VPT) is a pioneering effort

to introduce telephones in villages that do not have any telephone connections

till date. These VPTs with STD facility are being installed in villages for the

convenience of the villagers. As per license obligation they have installed VPTs

covering 59 talukas. We are receiving subsidy support for 3,599 VPTs every

quarter from the USOF.

Rural Community Phone (RCP)

After achieving the target of one village public telephone per village, Reliance

Communications’ next plan of action is to provide Rural Community Phones

(RCPs) in each of those villages where the population exceeds 2000. These RCPs,

with STD facility, are to be installed in public places including shops, schools and

primary health centres. We are fully committed to installing about 22,000 RCPs

covering 61 districts across 11 states in India by 2006.

Rural Household DELs

29

Reliance Communications' targets to provide Rural Household DELs in those

talukas, which have been declared as rural talukas. Fixed Wireless

Phone/Terminal of CDMA technology is being planned for R Household DELs.

They are determined to provide Rural Household DELs in 61 districts covering

203 talukas in India. Our target is to roll out 6,100 of them.

High Speed Public Tele-Info Centre (HPTICs)

Reliance Communications is committed to setting up High Speed Tele-Info

Centres in block headquarters and villages with a population exceeding 2000.

These centres will provide high-tech facilities including tele-education as well as

tele-medicine. These “information kiosks” will form the core of the rural

broadband connectivity. The target is to cover one lakh villages in three years

which approximately would cater to 48 per cent of the total rural population.

RELIANCE WORLD

Reliance World

Reliance World (formerly Reliance WebWorld) is a world-class nationwide chain

of retail outlets for products and services of the Reliance – Anil Dhirubhai Ambani

Group. It is designed to give the customer a delightful experience of the digital

world of information, communication, entertainment and utility services. All

Reliance World outlets are connected to Reliance’s countrywide optic fibre

network.

INTERNET DATA CENTRE

World-class cyber centers

Reliance is India's largest Internet Data Center (IDC) service provider, hosting

business critical applications of Indian and foreign blue chip companies, financial

institutions and other important organizations. Reliance Internet Data Centers

are truly world-class Level 3 (highest) IDC facilities, with more than 200,000 sq ft

30

of hosting space. The data centers are internationally benchmarked on all

parameters i.e. physical and network security, infrastructure, facilities, network

connectivity and operations.

Reliance Internet Data Centers offer a range of standard and advanced managed

hosting services. The services range from offering bulk co-location space to fully

managed hosting of servers on rent/lease model. Further, a whole range of

managed value added services are offered like firewall, intrusion detection,

backup, streaming, mailing, system administration, data base administration,

load balancing, storage services and disaster recovery / BCP solutions.

Internet Data Centers are critical components of Reliance Communications’

vision to herald a digital revolution in India. The Data centers are connected to

Reliance's pan-India, optic fibre-based, high capacity IP network. The data center

is further connected to 52 countries including US, UK, Mid-east and Asia-Pac

through Flag Telecom ( A Reliance Communications group company) backbone

and other undersea cable systems. It also has private peering relationship with

the largest Tier 1 Internet Service Providers (ISPs) and public peering at more

than 15 Internet Exchange points across the globe, apart from peering

relationship with domestic ISPs on STM-1 bandwidth.

ORGANISATIONAL STRUCTURE OF RELIANCE COMMUNICATIONS LTD

31

HEAD OFFICE

DIVISIONS OF RELIANCE COMMUNICATIONS

32

City Distribution Centre (CDC)

RelianceWorld (RW)

CLUSTER OFFICE

CIRCLE OFFICE

CEO

All the Departments are controlled by one CEO.

THE HEAD OFFICE OF RELIANCE COMMUNICATION (MUMBAI)

The Head Office of Reliance Communications Limited is in Mumbai. The Head

Office has a critical responsibility for the direction and successful operation of all

business units with in the organization. Head Office is prepared revenue dealings

and forecasting and allocation of funds to different Cluster offices all over India.

They review the organization’s quality management system at planned intervals

to ensure its continuing suitability, adequacy and effectiveness. This review

includes assessing opportunities for improvement and the need for changes to

the quality management system, including the quality policy and quality

33

PERSONAL BUSINESS

ENTERPRISE BUSINESS

SHAREDSERVICES

RETAILBUSINESS

SUB DEPARTMENTS

TECHNICALNETWORKS

objectives. It is their responsibility to prepare the current and future services

numbering plans. The important employees training will be conducted in Head

Office.

CIRCLE OFFICE

Circle office will take care of monitoring and directions of the activities that are

already prepared by the Head office. All the reports are generated in the Circle

Office about the functioning of the business. They will prepare the estimated

budgets and send a request to the Head Office. They act as a middleman

between the Head Office and the Cluster Office.

Each State will have one Circle Office. The circle office will take care of the

businesses in each State. The work task assigned by the Head Office to Circle

Office will be allocated to the Cluster Office.

CLUSTER OFFICE

Cluster Office will execute the plans that are distributed by the Circle Office.

There are 6 Cluster Offices under the circle office of Kerala. The cluster offices

are working to increase the customer database of the company by giving proper

services to them.

PERSONAL BUSINESS OF RELIANCE COMMUNICATION (CIRCLE OFFICE)

SALES DEPARTMENT

34

The sales department has a crucial role in publishing companies. This is the

department, which will have a crucial effect on the sales of company’s products.

Their involvement and support is key to its success. It is the goal of a qualified

and talented sales manager to implement various sales strategies and

management techniques in order to facilitate improved profits and increased

sales volume. They are also responsible for coordinating the sales and marketing

department as well as over site concerning the fair and honest execution of the

sales process by his agents.

Naturally, a very large field sales force is required to cover the Reliance

Communications products. Field sales managers covering different regions of the

country usually manage the sales teams. The Sales Managers will call sales

teams for Regular sales conferences, once or sometimes twice a week, bring the

sales force together to hear about the next season’s targets, all with the

intention of informing the sales teams and enthusing them to go out and sell.

SALES DEPARTMENT

DISTRIBUTION - CHANNELS

The distribution channels of prepaid as well as post paid can be easily

understood by going through the Inventory Management.

35

Distribution- Prepaid

Channels

Data Card, DSA Postpaid Channels

CIOU, Postpaid Channels

INVENTORY MANAGEMENT

"Inventory" is one of the more visible and tangible aspects (stocks of anything)

necessary to do business. Raw materials, goods in process and finished goods

all represent various forms of inventory.

These stocks represent a large portion of the business investment and must be

well managed in order to maximize profits. In fact, many small businesses

cannot absorb the types of losses arising from poor inventory management.

Unless inventories are controlled, they are unreliable, inefficient and costly.

SUCCESSFUL INVENTORY MANAGEMENT Successful inventory management involves balancing the costs of inventory with

the benefits of inventory. Many business owners fail to appreciate fully the true

costs of carrying inventory, which include not only direct costs of storage,

insurance and taxes, but also the cost of money tied up in inventory. This fine

line between keeping too much inventory and not enough is not the manager's

only concern. Others include:

Maintaining a wide assortment of stock -- but not spreading the rapidly

moving ones too thin;

Increasing inventory turnover -- but not sacrificing the service level;

Keeping stock low -- but not sacrificing service or performance.

Obtaining lower prices by making volume purchases -- but not ending up

with slow-moving inventory; and

Having an adequate inventory on hand -- but not getting caught with

obsolete items.

Operational

Daily distribution planning.

Demand planning and forecasting, coordinating the demand forecast of all

36

customers and sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in

collaboration with all suppliers.

Inbound operations, including transportation from suppliers and receiving

inventory.

Outbound operations, including all fulfillment activities and transportation

to customers.

Order promising, accounting for all constraints in the supply chain,

including all suppliers, distribution centers, and other customers.

Performance tracking of all activities.

The Inventory Management processes of Reliance Communications are as follows:

Ordering of Inventory

The sales team of each clusters and warehouse team make the orders. Sales

team are making stock request on the basis of last 3 months average sales

basis. Warehouse team makes stock request on the basis of requirements of the

customers as well as the market trend.

All the products are coming from National Ware House to State Warehouse.

Head Quarters will transfer stock on the basis of the request made by State

warehouse. From State Ware House, these are moved to CDC, i.e. (City

Distribution Centre). From CDC it will be distributed to local distributors. The

Stock Distribution part is mainly done by CDC. The main activity of CDC is to

make a systematic distribution process of stocks. CDC/ Cluster House Team will

generate order from Distributors. CDC will follow Cash and carry method to

distributors i.e. once distributor pays the cash; on that basis stocks are

distributed to them. There are 52 distributors all over in Kerala.

Receipts of Inventory

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Receipts and billing are done through SAP based accounting. In each point of

transfer of stocks, there will be stock transfer note.

Distribution to Channel/ Customers

The billing invoice will be generated from CDC. It is known as “Ship to

Party”(ordering process). Once the distributor pays the cash, they can come and

collect the stock from warehouse. It is known as Scroll to Party “Delivery Party”.

Then the third party will come and take the stock to required Cluster’s

distributors.

There are two types of distributors. They are Prepaid and Postpaid Distributors.

The distributions of stocks between these to parties are different.

CDC will distribute stocks to Prepaid Distributors and distributors

will send the stock to Retailer and finally Retailers will sale the

product to the customers.

CSD will distribute stocks to Postpaid Distributors and

distributors will distribute the stock to both Channel Partners and

Web World Express.

MIS and Record Management

Manual stock registers are prepaid during the time of transfer of goods in each

point of sales. They are preparing handset receipt for the purpose of Sales tax,

auditing monitoring etc. There is a ‘SAP CODE’ for each distributor. Once the

stocks are out it will be inward in the stock. Inward is a self-protected process. In

between the transfer of stocks, there won’t be any delay. It is must to get the

certificate from an Authorized Service Centre to transfer the goods. It’s not easy

to make any cheating or fraud process in between the stock transfers. All the

processes are strictly monitored in each point of time.

DATA CARD, DSA POST PAID CHANNELS

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With the Reliance Data Card, we have the freedom to access the Internet

anytime, anywhere across the Pan Indian Reliance Network. We can also avail of

this service as you roam internationally. All we need is to have a standard laptop

PCMCIA slot and voila.

Some Great Features of Reliance Data Card

Connect your laptop or notebook to the internet or an intranet via the

Reliance Data Card anytime anywhere

No need to wait endless hours because with the reliance Data Card, we

can avail of instant configuration & installation

Great speed

Send and Receive SMS via the Reliance Data Card

Fully Customized to suit your needs

No automatic disconnection unlike normal dial-up connections

Saves on paying extra high internet charges to hotel business centers and

in-room internet connectivity

FWP, DSA POSTPAID CHANNELS

The FWP is like a fixed line phone. Since the service does not use cables, users

don’t have to face problems due to broken cable lines and cross-connections.

The call charges to mobiles and other FWP phones are also lower than that for

landlines. This team will acquire the customers who are interested in FWP

postpaid connections.

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CUSTOMER SERVICE DELIVERY (CSD) DEPARTMENT

Increasing competition is forcing businesses to pay much more attention to

satisfying customers. Respond to complaints quickly and courteously because

this will helps the company to improve customer loyalty. It is the responsibility of

CSD is to build customer confidence by Resolving customer’s complaints on the

first contact. Companies that resolve complaints on the first contact increase

customer satisfaction and product loyalty, improve employee satisfaction, and

reduce costs. Companies even encourage complaints. Reliance communication

found that effectively handling customers with problems is critical to their

reputations as well as their bottom lines. When customers complain and they are

satisfied with the way their complaint is handled, they are more likely to

purchase another product or service from the same company. Customers who

get their problems satisfactorily and quickly solved tell their friends and

neighbors, and they are not easily won over by the competition.

CSD HEAD

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Churn/ Retention

Collections

Customer Care

Billing Printing & Despatch

CAF Fulfillment & Verifications

Credit Control

CAF FULFILLMENT AND VERIFICATIONS

There was an order from department of telecommunication for all mobile

operators to verify the customer database and make sure that the connection

belongs to the same customer. The details regarding the customers must be

verified like proof of the customer address and other details related with

customer and it should be uploaded after acquire the customer. It’s a very

important process as this is the whole proof for the company about their

customer.

CREDIT CONTROL

Customer Credit Fixation (CCF)

Fixing credit control is an entirely different process for telecommunication

industry when we compare it with other industries. Each and every second, the

credit amount for telecom industry will be increasing on the basis of the calls

made by the customers.

Credit fixation for the customers is very important because it provides the

facility to the customers to make uninterrupted calls to the limit fixed by system

based on the profile and values attached to him.

Barring the connection of customers is due to delay in bill payments or when

total call amount exceeds the credit limit. There are certain rules and regulations

that are to be followed by the company before the cancellation of the

connections. All the customers are supposed to payoff their bills before the due

dates. Once the customer crosses the due date of their payment of bill, firstly

company will bar the customers ILD services. Even after a certain dates the

customer doesn’t pay the amount, then the company will bar NLD services and

later OG (Out Going) services too. Again customers will be given some more

days to pay the bills, even after they are not willing to pay the bill or didn’t pays

the bill, those customers will be terminate from the mobile connection.

Customers will be informed before barring or canceling the connections by

sending SMS or through IVR (Interactive Voice Recognition). They are using IVR

41

facility to reduce the cost, maintain uniformity among customers, reduce the

wastage of time, etc. If the customers have any queries regarding the

disconnection of service or any other concern matters they can make calls to

customer care service (CCS) centre. These CCS is available for customers all

over India and can be make queries in their own native language or in

universally accepted languages.

Each and every process will be done by the system itself and very less manual

work is needed for doing the entire task of CCF. For each disciplinary actions

system will suggest what decisions to be made. All these activities are done in

Circle office itself. This credit policy transaction is unique in all over the country

for Reliance Communications.

Credit control and Dunning policy for postpaid

consumers

Consumer Classification:

Postpaid subscribers are segmented into basically 5 categories depending on Age on network

and ARPU. All new customers are put under Entry Class till first fully month (second bill)

payment or 60 days whichever is later. The underlying premise is that all subscribers will be

paying and in case they do not pay their 2nd invoice, they shall not be upgraded from Entry

close to Blue. Therefore the classification is based on age on network combined with ARPU.

Sr

no

Customer

segmentation

Avg. ARPU on last 3

months Billing

Age of customers based on no:

of bills generated

1 Platinum

B/w Rs 1000 – Rs 2000 Greater than 24 bills

Greater than Rs 2000 Greater than 12 bills

2 Gold

Unto Rs 1000 Greater than 24 bills

B/w Rs 1000 – Rs 2000 Between 13- 24 bills

Greater than Rs 2000 Between 07 - 12 bills

3 Silver

Unto Rs 1000 Between 13- 24 bills

B/w Rs 1000 – Rs 2000 Between 07 - 12 bills

Greater than Rs 2000 Unto 6 bills

4 Blue Unto Rs 1000 Unto 12 bills

B/w Rs 1000 – Rs 2000 Unto 6 bills

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5 Entry

Not applicable

Until 1st full month or 60

days from entry, whichever

is later

Other classifications of customers are:

X – these categories are those who are potentially exit type, as they didn’t pay

their 2nd bill. In case they clear their dues, they can be put into Blue based on

ARPU.

R – those who will be credit restricted, independent ARPU or age in the network.

This is done based on credit limit. The deposit paid by them shall determine their

effective credit limit. The base credit limit is reduced to Rs 500.

Q – those who have cheque bounce/ credit card charge back history (no: of

bounce = 2 for Platinum & Gold) and for other risk classes (no: of bounce = 1).

C0 – those who have frequent cheque bounce/ credit card charge back history “

no: of cheque bounce >2 for Platinum & Gold and other risk classes “no: of

bounce>1.

L – this class will cover all the employees of Reliance group.

G – this class will cover VIP customers nominated by authorized persons.

Z – this class covers all customers whose status is ‘ suppressed ’ in ADC (it’s a

server name).

Basic Credit Limit

The basic credit limit would be determined by a combination of Address

Verification (AV) and Credit Verification (CV) results.

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The following method is followed by Reliance Communications for Credit

Verification:

FactorSr. No.

Values PointsSr. No. of Selection

Points for Selection

1

Who will be paying the monthly RIM bill?

1 Self 2 Brothers/Sisters3 Son/Daughter 4 Mother/Father5 Husband/Wife6 Others

Update the following details belonging to the person who will pay the bill. In the present case it is – “Self”

2 Occupation

1 Self Employed Professional2 Own Business3 Senior Executive4 Other Employee5 Non-Employed

3 Type of residence

1 Posh Bungalow/ Row house2 Flat3 Chawl4 Hostel5 Others

4 Locality 1 Affluent/ Upper Middle Class2 Middle/ Lower Middle Class3 Slum

5 Ownership 1 Owned2 Rented3 Paying Guest4 Company Owned

6 Age

1 Below 182 18 to 253 25 to 354 35 to 585 58+

7Customer’s Attitude

1 Non Co-operative2 Co-operative

Credit Card 1 No Credit Card

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8Ownership 2 Recent Paid Statement

Available

9PAN Card Holder 1 No Pan Card

2 PAN Card Available

Table 1

On “Entry”

Each subscriber shall get an initial base credit limit of Rs 1000 on entry,

independent of the tariff plan opted for. Depending on the results of Address

Verification and Credit Verification, the customer shall get revised credit limits as

given below.

Revised Base Credit Limit

The subscriber’s updated base credit limit shall be as follows depending on

results of AV and CV.

Sr No AV/CV Results Updated Base Credit Limit

Remarks

1 AV Negative NilThe subscriber shall not be enrolled as a postpaid subscriber. OG shall be barred.

2 AV Positive2A CV Score: Negative 500

Effective Credit Limit = Base Credit Limit + (Deposit * 1.5)

2B 0-5 10002C 6-8 15002D 9-12 18002E 13-16 22002F 17-20 25002G 21 3000

*These figures are just a model figures.

In case of Reliance Consumers (Non-Ind) the Base credit limit will be Base credit

limit * No. of connections.

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Note: - In case of CV score below negative, subscribers will be followed up to pay

a Deposit. For the interim period he will be provided with a Credit Limit of Rs 500

follow-up to collect a suitable Deposit.

[Subsequently, these customers will be classified as “R” mentioned above. In

case the subscriber refuses to pay a Deposit within 45 days from Entry he will

be assigned Risk Class “N” and will eventually be migrated to prepaid on

settlement of initial usage or terminated. The Credit Limit for “Q” class

customers will be Rs 500 + (Deposit * 1.5) and that for “CO” class will be

Deposit * 1.5.]

The Basic for CV along with the CV scoring format is presented using an example

in Annexure 1 of this Document.

(The default Base Credit Limit will be Rs 1000 wherever CV score are not

applicable)

Communication of the initial Credit limits

The subscriber shall be communicated their credit limits at the time of entry (as

shown in ‘on entry’). The updated Credit Limit shall be communicated during

the Bill Explanation. In case they expect their usage to be higher, they would be

requested to pay a suitable voluntary deposit (to cover 2 months usage) to avoid

dunning related inconvenience. In Case of CV Negative also, the Deposit will

need to be paid by the Customer. The City Customer Care team will do this

initiation.

These are very important initials steps and must be completed for 100% of the

new customers. This alone will enable customer satisfaction and minimization of

value based dunning events.

Effective Credit Limit

On customer creation and before AV

Effective Credit Limit = Initial Base Limit + Deposit Paid

After AV

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Effective Credit Limit = Initial Base Limit + [Deposit Paid * 1.5]

After CV

Effective Credit Limit = Base Limit t + [Deposit Paid * 1.5]

After moving from “Entry” class

Effective Credit Limit = (Updated Base Credit * Base Limit Multiplier) + (Deposit

* Deposit Multiplier)

Average Revenue Per User (ARPU)

Here, ARPU has been defined as the average invoice value of the last 3 bills

excluding the first bill.

Along with the segmentation, the subscribers will also be assigned a rating of 1,

2, or 3 based on their Average invoice Value. This will be put as an affix after the

respective Risk classes.

Rating Average invoice value (ARPU)

1 More than Rs 2000

2 RS 1000 to Rs 2000

3 Upto Rs 1000

ARPU is calculating mainly to know how many customers are coming under each

ranking. This will help the company to know more about their customers and

their preferences.

Credit Limit Enhancement

Provision for special limits: -

In certain cases, subscribers shall be credited with special limits. Through this

process, the required credit limit will be prescribed and the effective limit at any

point will be the calculated limit or prescribed limits, whichever is higher. For this

purpose the CIOU has to get approval from Zone Cluster Lead or Customer Care

Head.

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The approval Matrix is an extract of the AV/ CV process and is given in the Table

below.

Approved Authority Maximum Limit

Circle CEO Rs 20000Circle Commercial Heads Rs 20000Post Paid Heads Rs 10000Billing and Collection heads Rs 10000Circle Customer Care Heads Rs 10000City Heads Rs 5000CBOC Heads Rs 5000CC Town Heads Rs 5000For risk class “Q & C0” we will not consider any special limit for arriving at the

credit limits of the customers. Credit limit enhancement will be adopted for

regular customer by increasing the multiplier to the deposit and the basic limit.

This enhancement shall be effective when the customer classification is renewed

and revised.

Up gradation of customer segment will done once in a month [on 5th of the

month]. However Down gradation for “Platinum, Gold and Silver “ segment will

happen only once in a quarter.

Down gradation of customer segment will happen segment by segment (except

for cheque bounce cases). For example, Platinum segment customer will be

down gradation for Gold and then to Silver and so on. Thus a Platinum segment

customer will not be down graded directly to silver or to a lower segment. This

down gradation will be done once a quarter.

Customer Segment Basic Limit Multiplier

Deposit Multiplier

Blue 1.00 1.50

Silver 1.20 1.65

Gold 1.50 1.80

Platinum 2.00 2.10

Accordingly, Enhanced Effective Credit Limit = (Basic Credit limit * Limit

Multiplier) + (Paid Deposit * Deposit Multiplier)

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OR

Prescribed Specified Limit

Whichever is higher.

During the interim period, if the subscribers normal usage increases, the CIOU /

Field Customer Care enhances his limit by taking additional deposit.

Exposure

Exposure is the sum total of Billed outstanding usage and unbilled usage.

Unbilled rentals and other charges are not considered. Exposure is compared to

Enhanced Effective Base credit limit to arrive at the appropriate dunning action.

BILLING AND BILL DISPATCHING

Once when a sales team acquires a customer, the customer will take a plan

tariff, which he likes to activate. The customer account will activate when he

make a call to *228. As per the plan tariff taken by the customer, he is eligible

(allowed) for making calls from his mobile. Billing will be done only for post-paid

services.

Call Reading

When the customer makes a call from his mobile, a signal will be given to Base

Transmit (transceiver) Station (BTS) and from BTS a signal will send to Mobile

Switching Center (MSC). The BTS is the networking component of a mobile

communications system from which all signals are sent and received. Mobile

switching center (MSC) is responsible for connecting calls together by switching

the digital voice data packets from one network path to another-- a process

usually called 'call routing' which also support mobile service subscribers,

including user registration, authentication, and location updating.

When the receiver pickup the call, MSC will record the start and end time

duration of the call. This process is known as Call Duration Record (CDR). This

raw CDR will send to the Mediation Team and it will again send to the Rating

49

Team. The Rating Team will rate the call and charge as per the plan tariff taken

by the customer.

The following diagram illustrate the different parts in the flow of usage events

into bills and the different kinds of relationships between rating and billing:

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

Reading the mobile/ landline Bill

Bills for service will be prepared on a monthly basis for each consumer. Bills will

be prepared by totaling all the rate of calls (based on rate plan, promotion etc),

SMS, and other services offered used by a customer. Bill will contain the

following information: address of the customer, account number, invoice

number, mobile number, invoice date, payment due date, billing period, credit

limit, previous balance, and due date.

How the billing system and billing cycle generate

Billing systems collect, rate, and calculate charges for use of

telecommunications services. Once a customer takes connection (becomes a

subscriber) from Reliance Communications, all the information about the

customer will be stored in the Front End System. The Front End System contains

the customer details like name of the customer, mobile number (RIM NO),

account number, promotion, credit information, billing information, unbilled

usage, history of complains, service change request, etc. When the system

record all the data entry regarding the customer, that movement onwards the

50

customers billing system starts activate. The billing system includes billing cycle.

There are 9 billing cycles for Reliance Communications. The first bill of the

customer will generate with in 7- 15 days. This is because when the customer

takes the connection, he might not be in the billing cycles of the company. After

7-15 days he will put into any of the 9 billing cycle. Then onwards, each month

the bill will be generating for the customers according to his usage.

Bill Dispatching

Bills are printed from the Circle Office. The Circle office will cluster all the

customers on the basis of 6 clusters and directly send it through post office for

delivery to the customers. The customers will also informed by sending SMS or

mailing the bill to his e-mail ID regarding the total bills due and the due date of

the payments. By any reasons, if the bill returns back, it will be directly send

back to the Circle Office.

Prepaid Services

In a prepaid services environment, the final aggregate are done after every

event. The taxes and other fees must either be included in the rating of every

transaction or handled by some other process (i.e. taxes are included in the

price for services). In this case rating and billing are done after each usage

event. In prepaid service, payments are collected from the customer by

reducing their deposit balance.

COLLECTION

After the bill generation, it is the responsibility of the customers to pay the bill

amount before the due date. The collection process starts once the bills are out

to the customers. Each interval the customers will be informed to pay the bill

amount through different process. The customer care executives will send SMS

51

to the customers regarding the o/s bills and the due date information’s.

Customers are out called 3 days before the due date for giving a reminding

about the payment. Even after the due date, if the customer is not responding,

then CIOU will physically visit the customers and have an enquiry about the

reasons of non-payment of the bill amount. CIOU will collect the payments based

on the pincodes mapped to him.

Customers can pay the bill amount in any of nearer Web world. They can also

drop the cheques in important locations. They can also pay the bills through

Internet using credit cards or by giving standing instructions to the bank; the

bank will pay off the required amount from the customers account.

Customers are allowed to pay their bills anywhere in India through cash. Only

local cheques are accepted to pay off their bills. There will be late fee charges if

the customers didn’t make the payment on or before the due date. It will be the

2% of the customer bill amount. This is done to ensure the customers to pay the

amount within the due date. If the customer didn’t pay the payments after 90

days, then it is the responsibility of the collection agency to collect the bills o/s

from the customers. They have to motivate the customers to pay the due

amounts. Even then if the customers is not paying the amount, then the

company will take the legal procedures.

Customers barring dates are different and they are prepared on the basis of

customer classifications that are as follows:

Blue, X, R, Q, C0

Due date & Incoming barring (OG Barring) (Suspension) Termination

0 07 Days 30 Days 90 Days

Silver and Gold

Due date Incoming Barring Termination (OG Barring) (Suspension)

52

0 14 Days 30 Days 90 Days

Platinum

Due date Incoming Termination (OG Barring) (Suspension)

0 30 Days 60 Days 90 Days

Reactivation

Reactivation of customers connection will be done only when the customer make

the payments of his bills. If the customer pays the full amount of his bills dues,

the system will automatically reconnect the connection. The company not at all

entertains partial payments and wont take into consider the reconnection of the

customers.

CHURN MANAGEMENT/ RETENTION

One of the best part of Reliance communication is that there is only very less

churn of customers happening. There are two type of churn. They are;

1. Voluntary from customers.

2. Involuntary from customers.

Voluntary from customers:

These are those customers who are the defaulter or non-payment of bills. For

such kind of customers, the retention programs are followed as under:

First time C3 staffs will meet these customers and ask them about the problems

they are facing from Reliance and try to solve the problem there itself. If it didn’t

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works, CIOU will forward the details of the customers to the Cluster Office and a

well-trained employee will make call from retention helpline and try to fix the

problems. Even if it is a failure to retain the customer, there will be a customer

visit by CRE’s and try to fix the problems. They will inform the CIOU’s wheter this

customer is retained of failed to retain.

Involuntary from Customers:

These are also the customers who are not paid the bills on time. There is a

debtor age if the customer didn’t pay the bill. If he crosses the 50th day, the

agency will send CRE’s to retain the involuntary customers.

CUSTOMER CARE

The service is being offered to customers by Reliance Communication is through:

Reliance World

Mega Customer Care Centers

Town Offices

Web World Expresses (Franchisee outlets)

CC Annexes

These points are equipped to handle, customer inquiries, requests, and

complaints. It is also having online connectivity to the customers. Customers

are mapped on the basis of their pincode and will be forwarded to Web World

Express. There are 333-customer care help line numbers in which customers

quires can be solved. It’s a toll free number for all Reliance customers, which

is situated in Chennai. CIOU’S of Web World Expresses will assist customers

regarding their current issues. The customers make an average of 18000-

20000 calls in a day. Out of total walking customers to WWE and Reliance

World, 85%-90% of problems are closed online in system.

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HUMAN RESOURCE DEPARTMENT

The Human Resources Management (HRM) function includes a variety of

activities, and key among them is deciding what staffing needs you have and

whether to use independent contractors or hire employees to fill these needs,

recruiting and training the best employees, ensuring they are high performers,

dealing with performance issues, and ensuring your personnel and management

practices conform to various regulations.

STRUCTURE OF HUMAN RESOURCE DEPARTMENT

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CIRCLE HEAD

Time Management Muster Rolls Performance Appraisal Legal Comp- Pay Roll liances Activity

Register

Updates

Activities also include managing your approach to employee benefits and

compensation, employee records and personnel policies. Usually small

businesses (for-profit or nonprofit) have to carry out these activities themselves

because they can't yet afford part- or full-time help. However, they should

always ensure that employees have and are aware of personnel policies, which

conform to current regulations. These policies are often in the form of employee

manuals, which all employees have.

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Recruitment Operations Legal

NetworkPersonal Business

Enterprise Business

The main duty of HR Manager is to Ascertain human resource requirements for

the office ensuring the timely advertisement and filling of vacancies. He has to

recruit the candidates for the entire business of Reliance Communications. He

has to take care the Employee Life Cycle Management. Employee Life Cycle

Management Provides life-cycle management capabilities that help companies

support employees through every phase of their service with the company, from

recruitment through training, development, and retention. He has to enable the

company to find the best people, leverage their talent, align employee goals

with corporate goals, maximize the impact of training, and retain top performers.

If any vacancy arises in any of the department, the departmental head will

inform the HR Circle Head Manager. Then it is the responsibility of HR manager

to find the suitable candidate to the vacant posts. There are altogether 100

employees in Reliance Communications of Kochi. There are Ten HR managers to

take care of these employees and employee’s related activities.

Recruitment

The sources of recruitment of candidates in Reliance Communications are as

follows:

HR direct call

Employee referrals

Campus interview

Consultancy

Attracting and retaining the right people is the cornerstone of an organization's

success. The key to successful recruitment is to strengthen your relationships

with both the current and the potential workforce. By the above sources of

recruitment policy of the company, candidates are called for the interview.

Selection Process

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The employer performs various personnel selection methods where candidates

participate, such as interviews or assessment center sessions. The selection

process has several rounds of interview for a candidate to fill the vacant post.

These rounds are as follows:

HR round interview

Business round interview

State Head interview

Head of HR OF circle Office

In the First round, HR manager will looks the candidate’s expectations. He will go

through the candidate’s certificates and qualifications as per the profile of the

job. If the candidate accepts the terms and conditions which is already prepared

by the Business Head Quarters, he will be taken to the other three rounds. The

HR manager will take the candidate along with him till the next two selection

processes. This will helps the HR Manager to know whether this candidate is

following the cardinal principal of recruitment or not.

If he successfully completes the 4 rounds of selection process, then both parties

will negotiate about the salaries and other incentives. If the candidates accept

the offer, the HR employer closes the recruitment cycle and prepares for their

hiring.

Approval Process

The HR manager should also get the approval from the below persons in order to

appoint the selected candidates.

HR will send an approval proposal to Circle Head. He also has to send the

proposal to online recruitment management system. It’s a portal to upload the

candidate’s approval. Once when he sends it to online recruitment management

system, it will directly submit for the entity HR Manager. After getting the

approval process HR has to again send the proposal to Corporate HR and top

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Management and later it to SAP team. If the SAP team accepts the proposal

made by the HR Manager, he will give an SAP code and do other formalities and

sends a reply to Circle HR Department about the joining of the candidate. Then

the HR Manager will prepare an offer letter to the candidate and the joining date.

Operating Process

The operation works will start on the first day of the job. There are some joining

process to be completed by the candidate like medical check up, joining kit and

formalities. He has to fill the required forms and the Operation employee will

enter all these details in the SAP. This is a very important and critical process as

it contains all the information regarding employee and his salary divisions, etc.

After completing all the formalities, HR employee will send a welcome mail to all

employees of the Reliance Communications. There will be a two-day induction

program offered for the employee.

Legal Process

Employees are required to record their attendance. Some legal formalities of Tax

payments and other procedures will be maintained and updates all the details

regarding employee by the concern Legal employee

MARKETING DEPARTMENT

Marketing is the wide range of activities involved in making sure that you're

continuing to meet the needs of your customers and getting value in return.

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Marketing activities include "inbound marketing," such as market research to

find out, for example, what groups of potential customers exist, what their

needs are, which of those needs you can meet, how you should meet them,

etc. Inbound marketing also includes analyzing the competition, positioning

your new product or service (finding your market niche), and pricing your

products and services. "Outbound marketing" includes promoting a product

through continued advertising, promotions, public relations and sales.

MARKETING

Marketing managers develop the firm’s marketing strategy in detail. With the

help of subordinates, including product development managers and market

research managers, they estimate the demand for products and services offered

by the firm and its competitors. Marketing managers develop pricing strategy to

help firms maximize profits and market share while ensuring that the firm’s

customers are satisfied. In collaboration with sales, product development, and

other managers, they monitor trends that indicate the need for new products

and services, and they oversee product development. Marketing managers work

with advertising and promotion managers to promote the firm’s products and

services and to attract potential users. Marketing managers are following two

types of Communications; they are Below The Line (BTL) and Above The Line

(ATL). The marketing department is a team of six members with a head.

The main functions of each marketing managers are as follows:

1) Prepaid Product Manager: -

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Prepaid Product

Postpaid

Product

Events of promotio

n

Marcomm &

outdoorsVAS

MIS

It is the responsibility of prepaid product manager to develop new products

related with prepaid, market research, competitors proportion, modifications in

existing prepaid products, finding the existing customers and segment it on the

basis of customer preference and promoting the prepaid products. He also has

to handle the prepaid promotional budget and acquire new customers by co-

ordinating with the sales teams through advertisements and other marketing

tools.

2) Postpaid Product Manager: -

Postpaid product manager is responsible for the development of new postpaid

products, market research, competitor’s proportion, and modifications in existing

postpaid products, finding the existing customers and segment it on the basis of

customer preference and promoting the postpaid products. He also has to

handle the postpaid promotional budget and acquire new customers by co-

ordinating with the sales teams through advertisements and other marketing

tools.

3) Events of promotion Manager: -

An Event Manager will do the plans and executes the event. Some of the

responsibilities of an event promotion manager are:

To produce and measure the effectiveness of all events,

Manage all online events,

Working with internal and external resources,

Ensure all communications and messaging is aligned with the clients,

Responsible for all advertising, promotions, marketing, sales, and public

relations.

Release adds to agency.

The event manager is an expert at the creative, technical and logistical elements

that help an event succeed. These managers direct promotion programs that

combine advertising by following the Bellow The Line (BTL) type of

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communications and has to take care of marketing programs like road shows,

grand opening events, sponsorships, societal marketing, tie-ups, merchandizing,

adhock events, sales promotions, melas/ exchange functions, etc.

4) Marcomm & outdoors manager:-

These managers explore cost-effective promotional avenues, and do maximum

commitment to make the program a great success. They totally focus on

companies’ client's sales and marketing success by creating a marketing or

publicity strategy through the marketing programs like print communications

materials, arrange press release & press conference, keep in touch with media,

providing fulfillment services, hoarding, branding outlets public relations etc.

These managers direct promotion programs by following the Above The Line

(ATL) type of Communications.

5) Value Added Services (VAS) Manager: -

Value-added services (VAS) are one of the core functions of Marketing

Department and core services of Reliance Communications. VAS Managers will

create new contents and promote it to the customers. VAS has unique

characteristics and they relate to other services in a completely different way.

Some of the Value Added Services providing for the customers are new ring

tones and make them hear the songs by making calls to them, video clipping,

cinemas information’s, documentary of important personals, etc. This process

will update and ensure the customers about the new products lounge. VAS

Manager will prepare the budget for the VAS activities and processes.

6) Management Information System (MIS)

MIS manager will monitor and control the marketing plans and budgets prepared

by other marketing managers by co-ordinating with them. On the basis of the

budgets and plans he will prepare periodic reports to management. This is made

order to find out the deviations from actual planning process. It is his

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responsibility to correct the budgets if it is deviating from the actual plans. All

these processes are done based on the MIS reports.

BUSINESS COMMERCIAL DEPARTMENT

One of the most important departments of Reliance Communication is Business

Commercial. The key responsibilities of Business Commercial department is as

follows:

Validation of product pricing, tariff plans and marketing strategies.

Complication and analysis of revenue trends.

Periodical management review.

Validation of business processes.

Analysis of all higher levels.

BUSINESS COMMERCIALS

REVENUE ASSURANCE

Revenue Assurance (RA) is a niche business activity most commonly undertaken

within businesses that provide telecommunication services. The activity is the

use of data quality and process improvement methods that improve profits,

revenues and cash flow. Revenue assurance is a practical response to perceived

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Fraud Management

Revenue Assurance AOP & MIS

Channel Management

or actual issues with operational underperformance, most commonly relating to

billing and collection of revenue.

Typical Causes of Revenue Leakage

Although the scope of revenue assurance has not been agreed, most

commentators would agree the following are common examples of revenue

leakage:

Corrupted records of actual phone calls.

Lost call records (from either the provider's own network or from a third-

party network provider).

Incorrect rating.

Missing components or surcharges on a customers' bill.

Incomplete customer data preventing billing.

Inconsistency between services assigned to a customer per network and

billing.

There is some debate about whether the losses caused by fraud fall within the

remit of revenue assurance or need to be managed by a distinct specialization.

However, there is no debate that this is also a significant source of financial loss

There are a large number of terms, which are frequently used in revenue

assurance work. Ideally, when we talk of “usage”, “billing assurance” or

“revenue loss” the definitions should be the same across the industry.

The methods followed by the company to calculate Revenue leakages are as follows:

De Dupp check

This method is used to check the suspected name, address, place, pin code, date

of birth etc… of new customers in the existing customer database. All the data

about the customer is there in the database. Once when a new customer take

the connection, it is the responsibility of the revenue assurance department to

cross check the details of the customer whether this customer is already an

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existing customer or not. To find out the fraud customers, this process is very

important from the company point of view. The De Duping team will check the

new activated customer list with the help of software installed in the system.

When they run the software the system will identify the matched customers.

The process of De Duping is as follows:

The data of new customers will send from Bombay (National Head Quarters) by

De Duping team to Circle Office. The circle office will cluster whole data about

the new customers who is mapped to a particular area on the base of pin code

for re-address verification. They will check CAF through OMIDOCS port (it’s a port

where Reliance Communications will get the scanned copy of customers). On the

basis of the verification, the cluster office will send a report to Circle office. This

report will clearly depict why this problem arises, i.e. is it happen because of any

genuine reason or is it might be a fraud customer, etc. Then the Circle Office will

update the reasons in a simplify porter. If the customer is having a genuine

reason for taking new connection, then no actions will be taken from the part of

company. If they find out any fraud in the customer, then they will bar the out

going calls of the customer as soon as possible.

Regarding this matter the company will inform the issue to the customer through

SMS and then send a letter saying them to clear the account with in 10 days or

else the new connection will be disconnected. After the 20th day, the customer’s

connection will be suspended if he didn’t pay the amount. The Collection

Recovery Operate Unit (CROU) will collect the amount from the customers. Once

they pay pack the old outstanding amount of his old account, the company will

reactivate the new connection. Some times, CROU will waver some amount to

the customers if necessary or required.

The town clusters should give the report about the reactivation to cluster office

with in 5 days. If they didn’t report back to circle office about the matter, the

circle office will bar the connection of the customer and on the basis of the

report received later, will take necessary actions.

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Collection Recovery Operation Unit (CROU)

A customer who is having more than 80 days debtor age (not making payments

even after the due dates), it is the responsibility of CROU’s to collect those

amounts from them. Even the Circle Office and Cluster Office will drive these

collection agencies to collect the amount from those customers. This is allocated

to collection agencies on the basis of town base. It is also the responsibility of

CROU’s to recover the Fixed Wireline Phones (FWP) from the terminated

customers.

FRAUD MANAGEMENT

Analysis of billing records is a key driver to help minimize revenue and service risk exposure.

Fraud Management Cell (FMC)

This matter arise when a customer is activated his connection without having

sufficient payments. Still the customer might be enjoying the STD/ ISD

connection. FMC operators will take the whole Reconnection dump of customers

who made calls over credit limit. It is an internal audit done by FMC operators by

taking daily base report. This daily report will send to Circle office by FMC

operators and from the circle office it will again forward to town cluster office or

to the person who had activated the connection to the customer or to the cluster

CSD head/Cluster CC lead to collect the feedback from them regarding the

matter why it is activated with out sufficient payment of his bill. The Town

Cluster Office or to the person who had activated the connection to the customer

or to the cluster CSD head/Cluster CC lead will send the feedback to circle office

and they will send back to FMC operators. There wont be any actions taken by

the Circle Office for this matter of issue.

Frequent Cheque Bounce Activation

There are customers who will make their payments through cheques and credit

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cards. But some times these cheques will get bounced back because of several

reasons. The company will take the category of customers whose cheques are

frequently bounced back. Those customers connection will disconnect if it

happens. Once these customers make payments by cash, and then only

company will activate the connection. As per the company’s rule, these

customers should not activate their connection if he is a ‘C0’ category.

FMC international Roaming Team

The head office will focus about International or National Roaming customers.

They will take daily report about those customers to monitor them and pass

necessary information about the roaming and their payments. These customers

will be high customers of the company and will pay the amount as soon as

possible when they reach the credit limit to avoid the disconnection.

FMC Vigilance

It is the responsibility of Vigilance department to identify those customers who

take recent bulk subscription, which will be more than 8 fresh connections. This

activity is a part of Vigilance as suggested by DOT to identified suspected class

of illegal ILD call routing. If this kind of practices found out, circle office will send

report for Re address Verification and will be asked to find out the AV status,

purpose of usage, profile of customer, etc. these report will be taken only once in

a week/ month. These customers will be a corporate customer who is taking

more than 8 connections. If the customer AV is negative, then his OG will be

barred for all the fresh connections.

FMC- High negative balance in Customer Account

Some times Customers will be paying some amount in advance. Mumbai Head

Quarters will take the report of those kinds of customers on daily basis and send

it to Circle office and from there to Towns. From town it will be send to the

person who had entered this invoice to verify why the customer is paying the

amount in advance and also want to know whether this entry is correct one or

not. For example, a customer has to pay Rs 1000 as his bill amount, but he pays

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5000 in advance. Some ILD customers will pay in advance talking a precaution

for an uninterrupted services. So he will check whether this payment is correct

or not or is it a wrong entry from his part. Sometimes when a customer make

payment in web world, he will twice enter the payment unknowingly, or may be

a wrong entry of numbers, or he may enter the cheque number instead of

amount number etc. Then he will send back the report about the payment

details to Circle Office and they will send it to the Head Office.

FMC- Daily Basis Monitoring Adjustment Passed

The Head Quarters will checks the daily adjustments like wrong billing

adjustments, waver made to the customers, wrong plan selections even after the

request send by the customer and it didn’t effect in the system, etc. They will

send a report to the Circle office to find out why this adjustment has been made.

Circle Office will track the person who had made this adjustment and get back a

report why it happens so and send back it to the Head Quarters.

FMC- Late night call usage Monitoring/ High Call count

Monitoring/ Roamers across India

This is one of the important parts of revenue assurance. This is done mainly to

monitor high usage of calls who makes more than 100 calls during the last 24

hours. This is also done to monitor the late night call usage in between 12 am

and 7 am. Tracking the customers who make calls under this category will helps

the company to identify high usage customers profile, find out fraud customers

as soon as possible and to follows TRAI regulations and whether the owner of the

mobile is making these calls or not, etc.

AOP & MIS

MIS manager will monitor and control the money flow of Circle office. He will

monitor the performance of prepaid and postpaid businesses and co-ordinate

with concern department if necessary. He will prepare Annual Operating Plan

(AOP). On the basis of the budgets and plans he will prepare periodic reports to

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management. This is made in order to find out the deviations from actual

planning process. It is his responsibility to correct the budgets if it is deviating

from the actual plans. All these processes are done based on the MIS reports.

CHANNEL MANAGEMENT

Channel manager will appoint address issues of the customers, commission

processing’s to various channels, Account reconciliation, full and final settlement

of the termination of the customer.

Web World Express (WWE)

Web World Express should pay to Reliance Communications an initial sigh up

fees, incremental fees and security deposit as stipulated by Reliance

Communications. Such security deposit is refundable when this agreement is

terminated after adjusting any outstanding dues to Reliance Communications.

WWE entered into the business of operating as a service provider by operating

the Web World outlets and thus carry out the business of providing services to

the customers of Reliance Communications.

The services provided by WWE are as follows:

Fulfillment of channel partners mapped to WWE

Sale of accessories and Java Green products

Address Verifications of subscribers

Customer accounts creation in the system

Customer services like bill delivery, bill collection, query resolution, MACD

request, customer exit, customer expectations handling, etc.

Reliance Web Stores Ltd (RWSL)

It’s a sister company of Reliance communications. They purchase the hand set

from Reliance communications infrastructure limited (RCIL), which is authorized

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for processing handset dealings. Reliance Web Store Ltd is a franchisee of

Reliance Communications. RWSL will provide all the facilities to the Reliance

Communications to operate the business. They provide building, furniture’s,

employees, and all other infrastructure to run the business so that they have the

entire control over Reliance Web world.

SHARED SERVICES OF RELIANCE COMMUNICATION

The activities that are common for all the departments will come under the Shared Services.

Project Department

The main roles of project department are as follows:

Expansion of wireless network

Expansion of wireline network

Expansion of building/ infrastructure, etc.

The main tasks of project department are making route survey, arranging the

required contractors for site construction, electrical works of office, land

acquisition for tower erection, fibre laying, accruing machinery, tools and

accessories, contractors payment processing, capitalization related activities,

etc. They will also take care of acquiring new projects by interacting with the

entire department for the company.

Account Department

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It is the responsibility of Accounts Departments to do the following business:

Budget preparation and monitoring

Service / purchase order processing

Vender Payments.

Bank reconciliation and reimbursements of office advance accounts

Some other responsibilities are finalization of accounts, coordination with state

offices, reviews and controls, system maintenance, procedures and processes,

fund arrangements, audit coordination, payroll and HR-Compliances with all

statutory requirements, etc.

Banking

The Department of Banking Operations is a key player in three of the Bank's

core functions: Currency, Financial System, and Funds Management.

The key responsibilities of banking department of Reliance communications are

as follows:

Cash management

Dialogue (formal discussion and negotiations) with banks

Bank guarantees management

Funding of bank accounts

Banking architecture

It is the responsibility of banking employee to create a separate bank account

use for the payments and collections, payments to be centralized at Mumbai for

routine/ operating expenses, ensure the collections from customers are realized,

make sure the fund made available at Head office at earliest, manage payments,

etc.

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Legal Department

The main functions of legal department are as follows:

Collection and revenue related – Litigation

Defend Litigation against the company

Consumer disputes at CDRF and TDSAT

Taxation appeals

Intellectual property rights

Legal research and identification of industrial Specific Law

Regulatory, Compliance and Liaison

Law enforcement Agency Co-ordination

Deal Project problems as per Government rules for tower projects

Budget preparation and forecast of tower

Asset Management

Tracking assets is an important concern of every company, regardless of size.

Assets are defined as any permanent object that a business uses internally

including but not limited to computers, tools, software, or office equipment.

While employees may utilize a specific tool or tools, the asset ultimately belongs

to the company and must be returned. And therefore without an accurate

method of keeping track of these assets it would be very easy for a company to

lose control of them. As a result, companies reduce expenses through loss

prevention and improved equipment maintenance. They reduce new and

unnecessary equipment purchases, and they can more accurately calculate

taxes based on depreciation schedules.

How Reliance communication is maintaining the asset

management ?

Most of the assets of Reliance Communications are distributed from the Head

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Quarters. Company will purchase the assets that are required only in a bulk

manner. Reliance Communications is maintaining records of their assets in the

system with the help of the software called SAP. In SAP, it is easy to access

multiple account groups and efficient operations require appropriate

maintenance and strategic deployment of all equipment and facilities. Support

for organizational asset management covers the complete asset life cycle

including specification and design, development and procurement, operations

and maintenance, and disposal. As a result, businesses can minimize downtime

and reduce costs.

System has already classified the assets of the company into groups. When the

assets are received, it is the duty of the Asset Manager to identify the

appropriate groups that have to classify the asset. Once the asset is classified

into proper group, a code will be given for the asset. Coding is done to display

the asset so that it will show a Master data about the asset. There are many

companies in Reliance Communications. If we create a code it will be very easy

to spot the place of asset. These asset classes contain default values and control

elements, which we passed earlier to the individual assets once when we open a

new asset master record. This master data contains asset class , company code,

number of similar assets, date of capitalization, cost centre, insurance, leasing,

origin, description of assets, etc.

For example, if we purchase some cupboard, it will be grouped under Furniture

and Fixtures. Then we will give a Code to the Cupboard like “1001” and will

enter other required details about the cupboard. On the basis of this code given

and other details of cupboard, it will show the location cost centre and other

detail like the depreciation charges and the lifetime of the asset.

Acquisition of an asset

The company acquires assets either through External acquisition i.e. acquisition

from Vendor or by settlement through Asset Under Construction (AUC). If we are

acquiring the asset from vendors it will come under External Acquisition. The

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works that are in progress or Work Breakdown Structure (WBS) will come under

Asset Under Construction. After the completion of the work, it will be considered

and settled the same to Fixed Asset.

Retirement of Assets

Assets can be retired With Revenue and Without Revenue. In the case of With

Revenue, there are two possibilities, i.e. Partial Retirement or Full Retirement.

Partial retirement means partial sale of asset whereas Full retirement means

retiring the asset for full value. Without Revenue means there wont be any profit

from the asset at the time of resale.

Depreciation

Every month, the company will carry out Depreciation process. Deprecation will

reduce the value of the Asset as per the depreciation percentage fixed by the

Asset Master. The system will automatically provide the depreciation value as

per the Company Law and Income Tax point of view.

Purchase Requisition and Purchase Order

On the basis of the code, company will make the Purchase Requisition. The

system will pick all the details through code, date, classification of assets, etc.

Then a Purchase Order will be made on the basis of Particular place/ office. On

the basis of the purchase order, the vendors are supplying the assets. The

Purchase Order will contain the rate of goods per quantity, total value of goods,

different types of goods, etc. All has to follow the terms and conditions for the

purchase and sale of goods.

Goods Received Notes (GRN)

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Once the goods become the asset of the company, Goods Received Notes (GRN)

will be generated. It will contain the date of purchase. on the basis of Goods

Received Note, the concerned person will do the Invoice Verification (IV). He will

cross check the GRN with Purchase Order and on the basis of the goods

received, the Payments are made.

The maintenance of Assets won’t be recording in the system.

Advantages of Asset management in SAP

All details about the company’s assets can be track with in no time from

the system.

If any further modifications or advanced technology comes, then it can be

easily identify the required formalities.

The assets can be maintained very efficiently.

System itself finds out the depreciations of assets and tax liabilities of the

company.

RETAIL BUSINESS

Reliance World and City Distribution Centre (CDC) do the retail business of

Reliance Communications.

RELIANCE WORLD

Reliance World (RW), earlier known as Reliance Web World are owned by the

company to satisfy the Reliance customers by giving multi services and to

achieve the targets of Cluster Offices. Reliance World is a nationwide chain of

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world-class retail outlets for all Reliance Communications products and services.

It is designed to give the customer a delightful experience of the digital world of

information, communication, entertainment and utility services. There are 17

Reliance World all over Kerala. Reliance World is the retail interface initiative of

Reliance Communications. it is the largest retail chain in the history of India and

Indian retailing.

They provide services and supports customers of Reliance Communications.

The services provided by the Reliance World are as follows.

1) Broadband Centre (BBC): - As the name says, most of the services

provided under broadband are related with network facility. Besides a wide

range of phones and associated services we will find a whole array of digital

offerings at the Broadband Centre @ Reliance World., Reliance

Communications also provide an array of broadband applications spanning

video conference, high speed surfing and internet access, online and off- line

gaming, digital movies, Digital Services like digital music, eLearning, , and

virtual office, digital Electronic News Gathering, online examination facility,

airline tickets booking for Deccan Airlines and Kingfisher, & many more

services.

2) Customer Convenience Center (C 3) : - Here is the dealings of

handset sales, collection of bills, new connection facilities, terminations of

connections, customer care etc.

3) Java Green and coffee house : - These facilities are provided by Java

Green Pvt Ltd Company. They are using Reliance Communications for doing

their business, as they are a different business group. Here customers are

providing coffee shop facilities.

4) Private Financial Service (PFS): - This is also a different company.

They provide mutual funds counter service to the customers under these

stores.

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CITY DISTRIBUTION CENTRE (CDC)

For doing the business, stocks of the company should be sold. These stocks are

distributed through a chain of process. All the stocks are stored in the National

Ware House, which is in Mumbai. As per the request made by the Circle Sales

Team from Cluster Sales Team to the National Warehouse Sales Team, stocks

are send across to the State Ware House from there to CDC ware house and

send to the web world express and web world. From Web World Express and

Web World, these stocks will be transported to distributors and finally to the

retail outlays. If there is any complaint related with stocks it will be informed in

the vice versa process. To maintain the books of account of stocks there are 2

companies working under CDC.

1) Reliance Communications Infrastructure Ltd

2) Reliance Communications Ltd

Reliance Communications Infrastructure Ltd

RCIL deals with the mobile sectors that are brought by the customers. As the

company does not take these mobiles back from the customers, it is the asset of

the customer itself and is not repayable for the mobiles.

Reliance Communications Ltd

They deal with landlines stocks of accounts. Hand lines are company’s own

property. They are taken back from the customers once the agreement is

terminated or the customers don’t want to carry on with landline connections.

Activities of CDC’s

1) Recharge Vouchers (RCV)

77

All the vouchers are billed in Reliance Communications Infrastructure Ltd.

Customers are provided coupons to recharge their handset or mobile

connections.

2) Public Call Office (PCO)

CDC’s directly does the activities for PCO. The local business associations (LBA)

will provide the services to the PCO holders like installations, coupons,

recharges, etc. these LBA’s are working according to the pincodes mapped.

3) LOGISTIC

One of the main activity of CDC is material movements i.e. transportation and

storage of goods and services. CDC will helps to create accurate forecasts to

ensure product availability and reduce inventory levels. By integrating logistics

management with procurement functionality, organizations can ensure prompt

purchasing and on-time delivery to customers.

4) ACCIOUNTING AND BANKING

Another main activity of CDC is maintaining receipt of the transferred and

distributed stocks and banking all the distributed amount.

5) Termination of contract

It is the responsibility of CDC to return back the stocks to warehouse after the

termination of contract among customers. It will be return back to CDC as used

return products

COMPETITIVE ANALYSIS

78

Mobile (GSM & CDMA - Mobile) Statistics

MARKET SHARE OF MOBILE OPERATORS

OPERATOR

TOTAL SUB BASE as on 31st Jan'07

TOTAL SUB BASE as on 28th Feb'07

NEW ADDITIONS IN Feb'07

MARKET SHARE % age

AIRTEL 33,731,954 35,440,406 1,708,452 22.88

AIRCEL 4,802,346 5,094,840 292,494 3.29

BPL 1,062,255 1,065,818 3,563 0.69

BSNL 24,442,364 25,444,271 1,001,907 16.43

HUTCH 24,414,358 25,343,179 928,821 16.36

IDEA 13,071,949 13,640,000 568,051 8.81

MTNL 2,498,234 2,578,822 80,588 1.66

RELIANCE 3,876,216 4,110,717 234,501 2.65

SPICE 2,519,927 2,578,584 58,657 1.66

BSNL (CDMA) 72,050 74,514 2,464 0.05

INCOM (CDMA) 10,711,964 11,091,852 379,888 7.16

MTNL (CDMA) 112,723 114,409 1,686 0.07

RAINBOW (CDMA) 34,345 35,226 881 0.02

RELIANCE (CDMA) 27,511,327 28,283,924 772,597 18.26

TOTAL 148,862,012 154,896,562 6,034,550 100.00

Table 1

(Source: Report of Telecom Operators Book)

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THE MARKET SHARE OF ALL THE MOBILE OPERATORS OF INDIA

MARKET SHARE OF MOBILE OPERATORS

23%

3%

1%

16%

16%

9%2%

3%

2%

0%

7%

0%

0%

18% Airtel

Aircel

BPL

BSNL

Hutch

Idea

MTNL

Reliance

Spice

BSNL (CDMA)

INCOM (CDMA)

MTNL (CDMA)

RAINBOW (CDMA)

RELIANCE (CDMA)

Figure 1

STATISTICS OF TOP 4 MOBILE OPERATORS OF INDIA

TOP MOBILE OPERATORS OF INDIA

23%

16%

18%

16%

27%Airtel

BSNL

RELIANCE(CDMA)Hutch

Others

Figure 2

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The figure above shows a comparison of the share of the mobile operator

market. Of the total market share, the top four companies share a market pie of

almost 74%. We can find that the market leader is Bharati Airtel (23%), followed

closely by Reliance Communication (18%). The other players who have a big

share in this pie are BSNL and Hutch. the fifth part of the pie (named as Others)

are constituted by other competitors such as Idea, Spice, MTNL,Tata Indicom etc.

The main competitor of Reliance communication in India is Bharati Airtel, BSNL,

Hutch, Idea and Tata Indicom. While compared with BSNL and Hutch, Reliance is

performing extremely well. Airtel is the only operator who is ahead of Reliance

and Airtel itself is the biggest competitor of Reliance Communications. Airtel has

the highest number of networks all over India, more than Reliance. They even

have good network status in many towns and villages where as Reliance has

recently expanded its services to towns and villages. These are some other

points, which we have to look forward to in this competitive scenario. New age

technologies that are fast picking up pace and are being used more and more to

lure customers are:

Wireless Services

Wireless Handsets, Wi-Fi Equipment

Number of Wireless Subscribers

Worldwide 3G Subscribers

Global Cell Phone Subscribers, etc.

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WHAT MAKES RELIANCE COMMUNICATION DIFFERENT ?

When we compare Reliance Communications with any other operator in India,

we have to go through some of the distinctive features of the company. Reliance

is far ahead, improving their products and services more than other operators.

Because of its consistent performance, it will soon emerge as the ‘Number 1’

mobile operators of India in the near future. The main features and services

provided my Reliance as compared to other operators are listed below:

National wide services and network permitting nationwide offer and strong

economies of scale.

Unified license for mobile/ basic services, NLD and ILD, defining a full offer

proposal.

Technological edge of 1*CDMA network with 1*RTT handsets for all client

base.

Strong financial capability.

Better quality voice and high data speeds of CDMA.

Strong brand equity of Reliance

Control over the handset business, delivering lower price for latest

generation handsets.

Non-replicable client prices.

Exclusive stores all over India.

State of the art customer service and IT systems.

Identified large databases of potential mapped on a geographical basis.

Fully convergent telecom offering.

No legacy issues.

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SWOT ANALYSIS

STRENGTH

Strong parent company backup.

Strong current customer base.

Innovative marketing, sales, and distributions

Brand image.

Strong NETWORK.

Improving customer satisfaction with reliable delivery and timely,

accurate billing

“World class” customer service provider.

High customer retention rate.

Strong financial history/ Back up.

Employee strength to customer services.

Customer friendly process.

Integrated package of communication services.

Technology.

WEAKNESSES

Network not spread in all parts of villages.

Their targeted customers are the people who are in the urban areas not

the rural areas.

Decision making process is centralized and hence time consuming.

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OPPORTUNITIES

Sustained high growth rate in the economy.

Spending power among public had steadily increasing.

Currently focusing on GSM based services.

An expanding Indian economy with increased focus on the services sector.

Population mix moving favourably towards a younger age profile.

Urbanization with increasing incomes in telecom.

Revenue focus.

THREATS

Acquiring decision of Vodafone by Hutch.

Regulation.

Competition catching up.

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LIMITATIONS

Time constraints to do a more detailed analysis about the organizational

process.

The time period (year-end) and the time duration (six weeks) were not

appropriate.

Non-availability of financial statements for computing financial ratios.

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RECOMMENDATIONS

More effective performance reviews needed.

Job description to be made efficiently to enable the employee to know

what is expected to them.

The entire employees need to be trained properly and fully informed to

make effective decisions for the organization.

The circle offices should be given authority to make decisions on their

own.

Undertake social responsibility activities once in a month.

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CONCLUSION

The company may attain the status as one of the best Indian company not only

in telecom sector but as a whole in near future with International reputation.

The company can improve their services to the customers so that the revenue

they focused to earn can achieve very easily.

87

BIBLIOGRAPHY

SOURCES

1. http://www.reliancecommunications.co.in

2. http://www.gm.reliancecommunications.co.in

3. http://www.ril.com/

4. www.google.com

5. www.coai.in

6. www.wikipedia.com

7. www.auspi.in

8. http://www.ibef.org/industry/telecommunications.aspx

9. http://www.indiatelecomnews.com/newdetails.asp?newsid=543

10.http://www.coai.in/docs/COAI%20Presentation-Rotary%20Club%201-09-

03.pdf

11.http://www.ficci.com/indian-economy/indian-economy.pdf

12.http://www.researchandmarkets.com/reportinfo.asp?report_id=312540

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APPENXIX

Table-1.1: - Monthly addition to the mobile phone network (in million) Source: Telecom Regulatory Authority of India

  2002 2003 2004 2005 2006 2007January   0.73 1.64 1.77 4.69 6.78February   0.79 1.67 1.67 4.28 6.2March   0.95 1.91 0.73 5.03  April 0.28 0.64 1.37 1.44 3.88  May 0.29 2.26 1.33 1.7 4.25  June 0.35 1.42 1.43 1.98 4.78  July 0.36 2.31 1.74 2.44 5.28  August 0.49 1.79 1.67 2.74 5.9  September 0.37 1.61 1.84 2.48 6.07  October 0.53 1.67 1.51 2.9 6.71  November 0.72 1.9 1.56 3.51 6.79  December 0.8 1.9 1.95 4.46 6.4  

---------------------------------------------------------------------------------------------

Table-1.2: - Growth of the telecommunication network (in million) April-February

Fixed line (including

WLL fixed)

Total No of

Increase of network

in Fixed line

Cellular mobile phones

(including WLL

mobile)

Total No of Increase in Cellular mobile phones Total

phones

Total no of

phones network Increase

1996-97 14.5   0.3   14.9  1997-98 17.8 3.3 0.9 0.5 18.7 3.81998-99 21.6 3.8 1.2 0.3 22.8 4.21999-00 26.8 5.2 1.9 0.7 28.7 5.82000-01 33 6.2 3.6 1.7 36.6 7.92001-02 39.1 6.2 6.4 2.9 45.6 92002-03 41.5 2.4 13 6.6 54.5 8.92003-04 42.6 1.1 33.6 20.6 76.2 21.7

89

2004-05 45.9 3.3 52.2 18.6 98.1 21.92005-06 49.7 3.8 90 37.8 139.8 41.7

2006-07 April-February 40.391 -9.3 162.5 72.5 202.9 63.5

Source: Telecom Regulatory Authority of India

90