Business / A Comparative Analysis Of Reliance Pco Business With Other Service Providers

A Comparative Analysis Of Reliance Pco Business With Other Service Providers

This essay A Comparative Analysis Of Reliance Pco Business With Other Service Providers is available for you on! Search Term Papers, College Essay Examples and Free Essays on - full papers database.

Autor:  anton  15 June 2011
Tags:  Comparative,  Analysis,  Reliance,  Business
Words: 7499   |   Pages: 30
Views: 670






Under the guidance of

Prof. Swapan Das Gupta

(Session: 2006-08)


Roll No. Name Section Group No.

42 Mr. Lalit Jain



20 Mr. Anurag Singhal

44 Mr. Manu Jha

43 Mr. Manish

27 Miss. Banish Razdani




1. Company Profile 7

2. PCO Market In India 12

3. The Report 21

4. Objective Of The Study 23

5. Methodology 25

6. Competition in the PCO Market 28

7. Findings & Analysis 38

8. Recommendations 41

9. Questionnaire 43

10. Reference 46


It is almost inevitable to incur indebtedness to all who generously helped by sharing their invaluable time and rich experience with me, without which this project would have never been accomplished.

In the beginning, I convey my sincere thanks to Mr. SWAPAN DASGUPTA for granting me opportunity to work with an esteemed organization. He has been benevolent enough to lend help and spare his valuable time throughout this project.

He has been immensely contributive with his ideas, constructive criticism and motivation which were the guiding light during the entire tenure of this work.

I also extend my heartiest thanks to the Indian Institute of Planning & Management faculty members for the regular assistance all through the project.



It is well evident that work experience is an indispensable part of every professional course. In the same manner practical training in any organization is must for each and every individual who is undergoing management course.

Without the practical exposure one cannot consider himself or herself as a qualified capable manager. During the training period the student learn through his own experience, the real situations of the corporate world and to put his theoretical knowledge in to practice. This experience is very valuable for the student and plays a leading and an important role in career of the student.

Entering the organization is like stepping into altogether a new world. At first everything seems strange and unheard but at the same time when the time passes one understands the concepts and working of the organization and thereby develop professional relationship.

Initially, it is felt as if classroom study was irrelevant and it is useless in any concern’s working but gradually it is realized that all the basic fundamental concepts studies are linked in one or the other ways to the organization. It is just a matter to modify the theory so as to apply it to given practical solution. I sincerely believe that there is no better place to learn this practical side of management than the industry itself.


The project included a thorough Market Analysis for this particular assignment. The Market so covered was in “South Delhi”. Initially we analyzed the Market Category and then accordingly segmented it to do a proper study of the entire competition prevailing in the Market.

Later we in a team also got involved in Sales to exactly know how to interact and deal with customers. This also helped us in getting the knowledge of the PCO schemes prevailing in the market.

The PCO market is by and large a very important market, as still majority of the customers use this service than to mobile service.

But to the contradiction of our initial survey we found out that the PCO market may be heading towards stagnation if new and attractive schemes are not provided to customers, since mobile companies have slashed their tariffs heavily and this has made cell phones so affordable that it is slowly but gradually becoming one of the major head aches for the PCO market.



Reliance India Mobile, the first of Infocomm’s initiatives was launched on December 28, 2002, the 70th birthday of the Reliance group founder, Late Shri Dhirubhai H. Ambani.

Reliance at a glance:-

Late Dhirubhai Ambani built Reliance from scratch to be in the reckoning for a place in the Global Fortune 500 list. This achievement is even more significant due to the fact that the entire growth was achieved in an organic manner and in a span of just 25 years. Dhirubhai was not just firmly rooted in traditional Indian values, but was also a quintessentially modern man – the man of the new millennium. This was clearly reflected in his passion for mega –sized projects , the most advanced technology and the highest level of productivity .In a short span of less than 25years, and without even the benefit of a formal education, Dhirubhai Ambani built Reliance, a first generation enterprise, into one of the world’s 200 most profitable companies!

He started out in life, working as a mere petrol pump attendant in Aden, Yemen .He had no technical knowledge of any of the businesses he wished to create in India. He had just five hundred rupees in his pocket, a vision of what he wanted to achieve, an intrinsic faith in the latent demand potential of Indian markets, a belief in the capabilities of Indian people, and a burning desire to succeed!

The End Result:

He created Reliance, a Rs. 75000 cr enterprise, in a single lifetime!

We must, each one of us, take inspiration from Dhirubhai’s extraordinary life, and challenge ourselves, to build on his achievements, to fulfill his desire, of one day making India an economic superpower. The corporation philosophy he followed was short & simple -“Think big .Think differently .Think fast. Think ahead. Aim for the best”. He inspired the Reliance team to do better than the best – not only in India but also in the world.


“1966 “Reliance is born…

In1958 Late Shri Dhirubhai Ambani returned to Mumbai from Yemen and stated his first company, Reliance Commercial Corp. In 1966, as a first step in Reliance’s highly successful strategy of backward integration, he started the textile mill in Naroda, Ahmedabad.

“1971” Only Vimal…….

In 1971 Reliance’s entry into the domestic markets with an ‘only Vimal’ blitz was unprecedented in India .Between 1977 & 1980 , almost every day a new outlet opened . By 1980, there were 20 company-owned outlets, over 1000 franchised outlets & over 20000 retails stores.

“1977” First IPO……….

Reliance goes public in 1977, offering 2.8 million shares. Since that landmark day, 33 lakh people have joined this family of achievers, counted amongst the largest in the world.

At present one out every four investor in India is a Reliance shareholder.

“1993” India’s Largest…..

Sales crossed Rs. 4000 crores making Reliance India’s largest private sector company. Reliance Petroleum offers India’s largest public offering. Today Reliance Group’s revenue is equivalent to about 3.5% of India’s GDP & is trusted by an investor family of over 31 lakhs.

“2000” Reliance Infocomm plan announced…

Reliance Infocomm will offer a complete range of telecom services. Covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide rang of value added services.

“2002” Reliance Infocomm from Idea to Reality…..

Reliance India Mobile the first of Infocomm’s initiatives was launched on December 28, 2002 , the 70th birthday of the Reliance group founder, Late shri Dhirubhai H. Ambani .This marked the beginning of Reliance’s dream of ushering in a digital revolution in India by putting the power of information and communication in the hands of the people of India at affordable costs.

“2002”Fortune 500 Inc……

Merger of Reliance Industries Ltd. and Reliance Petroleum Ltd. – India’s first and only private sector Fortune 500 company.

“2003”Reaching Heights….

Reliance Infocomm–India’s largest mobile services co.

BSES, one of the premier transmission & distribution companies of the country, become part of the Reliance group.

’’2006’’ Reliance Infocomm name change to Reliance Communications


Reliance Communications will offer a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that will enhance productivity of enterprises and individuals.

Reliance India Mobile, the first of Communication's initiatives was launched on December 28, 2002, the 70th birthday of the Reliance group founder, Shri. Dhirubhai H. Ambani.

This marks the beginning of Reliance's dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hands of the people of India at affordable costs.

Reliance Communication will extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations.



In the bad old days, it was very hard to make phone calls in India, except from your own land-line. Coin-operated pay phones were rare, and mostly didn't work.

And, even if one worked, it would not do long distance calls. You booked a trunk call from home and waited for the operator to get through.

Then came a time when STD or ISD calls were a rip off. The State monopolies charged prices like Rs 75 per minute for these rarities. There was a complex maze of different prices for calling different cities, different prices at different times of the day, etc.

In that environment, in 1987, entered a brilliant idea -- the STD/ISD booth. DoT forced standardisation of the equipment at every STD booth, so you were assured that calls would be metered and priced correctly.

These booths were a tremendous success, and there are now over 12 lakhs (1.2 million) of them. Averaged over India, this corresponds to an amazing outreach of roughly one PCO in every 3.3 square kilometer

It is striking to see how this industry sprang up from nowhere, and suddenly it is a substantial employer. There are perhaps 1 to 1.5 million people employed in the STD booths. This is a significant number even by the enormous standards of the Indian labour market.

The business model of the PCO was based on the high prices of STD/ISD calls and on the incompetence of the PSU phone companies. If calls were expensive, then even affluent customers tended to not have long distance calling at home, particularly when the phone companies were known to suddenly come up with bills for calls you did not make.

Further, the high price of calls supported the overhead costs of the booth and the staff. If a ten minute call costed Rs.500, then it was possible to impose an overhead of Rs.100 on it, and there was the revenue stream to support the owner of the PCO.

Elsewhere in the world, they do not use STD booths. Outside India, phone calls are cheap, and labour is costly. Hence, countries moved into building infrastructure consisting of pay phones and calling cards.

It is striking to see how the difference in relative prices in India (i.e. expensive phone calls and cheap labour) led to a very different allocation.

This world has fallen apart, and the PCO industry is headed for death. STD/ISD prices have collapsed thanks to India's success in wresting telecom policy out of the control of DoT and the PSU telecom companies.

The complexity of tariffs has also been eliminated. For most owners of cell phones, an STD call is Rs.3 a minute, anytime, anywhere. Private telecom companies are a bit more effective importantly, an overhead of Rs.0.3 to 0.6 a minute does not support the labour and capital cost of the PCO.

STD booths are already costlier than cell phones for making most calls. It is a tribute to the inflexibility of DoT, and a striking display of mistakes in our telecom policies, that owners of PCOs are prohibited from dumping their land-lines, obtaining cell phones and running STD booths using cell phones.

Following the cut in STD tariffs, the booth operators have been losing close to 60 per cent of their revenues every month. Though they get a commission ranging from between 20 to 25 per cent of their revenues, with falling volumes, they have been making big losses.

In the current system, STD charges are higher for those who cannot afford to own their own telephones. By not allowing provision of STD services using cell phones on a commercial basis, the system is biased against the poor.

Now that phone calls are cheap, India will embark on a whole new direction in obtaining the old as well as innovative new services that STD/ISD PCOs deliver. Cell phones are already ubiquitous, and they increasingly have roaming and STD. Some of the STD booths may survive in new forms while some may die.

There is currently a project in place wherein companies such as Sun Microsystems, Compaq Computers, Datacard Corporation,

Pico-Peta Simputers and others have formed an industry consortium to re-invent the old isolated STD/ISD/PCO booths as a multi-purpose communications network.

The consortium hopes to bring all PCO/STD booth operators under one banner and upgrade them to provide high-speed Internet and a range of new services like utility bill payment, low priced Net telephony, point-to-point video-conferencing and text/voice messaging.

Under this project it is reported that the public will access the new services through pre-paid re-loadable smart cards, which will be issued by the PCO/STD booths.

These cards can be purchased, loaded, reloaded, used and refunded at all booths. The IT companies plan to have a revenue sharing arrangement with the booth operators, and there will be no equity participation.

This is a striking example of flexibility in the Indian economy. Relative prices have changed, so an industry will die. It will be replaced by new and cheaper ways of getting the same work done.

The STD/ISD booth industry came from nowhere to employ over a million people, who man STD booths, and these people will now move on into other occupations.

While old industries suffer from the rigidities introduced by labour laws and the lack of an exit policy, the new economy races ahead with changing prices, shifting capital labour ratios and new and innovative products.

This story, of the rise and fall of STD/ISD booths, is a striking example of the vitality and dynamism of entrepreneurship and the labour market in India.

Discussions about economic reforms in India routinely dwell upon the profound mistakes of labour law, which inhibits hire and fire, accords a role to trade unions, prevents closure of firms, etc. It is often argued that dramatic changes to labour law are required to ignite high economic growth in India.

However, the bulk of India's labour market is based on sound market principles, where hire and fire is an everyday reality, where firms are born and die, based on pure competitive forces, where trade unions do not exist, and labour is genuinely mobile and adaptable.

Over a million people switched professions to become operators of STD booths, and over a million people will now switch out of STD booths and acquire new skills.

These large changes are not 'dislocations', and generate no political ripples. Thanks to the lack of government interventions in the labour market, prices adjust and the labour market broadly clears.

Labour market flexibility in India is reality for all but a small labour aristocracy. This flexibility in the bulk of India's labour markets is an important strength, in coping with changes in technology and economic policy, and in producing economic growth.


Tata Teleservices Ltd (TTSL), which provides CDMA cellular, fixed wireless phones and wire line phone services under the name Tata Indicom, aims to be a leader in the pay telephone booth (PTB) market in the state. With value added features and distinct benefits for both the customer and the booth operator, TTSL hopes to increase its share in the market. “Tata Indicom currently enjoys a cumulative share of around 27 per cent of the PCO business in the state with over 12,000 units installed already. However, with the kind of benefits that we have on offer for both customers as well as operators, we expect to add 10 per cent to our market share within the next six months,” Jagrut Vyas, chief operating officer, TTSL, Gujarat, said.

Currently, BSNL is the leader in the PCO market in the state with a share of over 40 per cent. TTSL and Reliance Infocomm make up for the rest. According to industry estimates, the PCO/PTB business in the state is worth around Rs 110 to Rs 120 crores annually. Over 45,000 booths have been installed so far. About 3,000 new PCO booths are added every month.

Vyas added that, for the past few months, TTSL has been garnering between 55 per cent and 60 per cent of the incremental connections in the PCO business. Stating that the company is working to make PCO outlets more than just calling centers, Vyas added that TTSL aims at a turnover of about Rs 50 crores from the PCO business this year. “We expect this amount to double every year, which will form a sizable part of TTS’s revenues from Gujarat,” he said. Vyas alleged that Reliance Communications was using the method of promising more commission to PCO operators in a operators from us by providing more commission. BSNL has also followed suit. So whatever gains Reliance Infocomm might have made have been negated by BSNL. However, the strategy that TTSL is adopting is to provide best value to both customers and operators,” he explained.

TTSL, which is present in 35 cities and towns in Gujarat, is now aiming to both consolidates its presence in towns and other centers. Telecommunication is one of the fastest growing service industries in the world. While the accent of growth is on the value added services, such as e mail, cellular phone etc in the developed countries, the thrust is on improving basic telephone availability in the developed countries. This sector plays a crucial role in spurring growth, especially industrial and services in any economy.








Our basic aim was to study to Reliance PCO. Here are some of the facts about Reliance PCO.


 STD PCO booths, as a franchise model started in 1987.

 Currently there are 16.55 lakh PCOs in India.

 Generates direct employment to 1.3-1.5 million people.

 Total PCO revenues at Rs 4,100 crores. Contributes to

9% of total telecom revenues and 24% long distance

 Installed STD PCO line more than 8 lakhs and local PCO more than 10 lakhs.

 Installed Base of 77000 Active lines.

 Highest Monthly Installed Base of STD Lines in the Country.

 Secondary Revenue of 11 Cr which is 2nd Highest after Mumbai.

 Monthly Prelianceary revenue of 10 Cr.

 PRelianceary Channel: Local Business Associates (LBA) – RELIANCE have 36 LBAs in Delhi and NCR. The LBA is allocated pin code wise area and he is solely responsible for Installation in his territory. For acquisition, his area is open to him, as well as DSA

 Other Channels: Direct selling agents (DSA)- RELIANCE have 82 DSA. The DSA are only authorized for Acquisition. The installation of these also lies with the area LBA.

 Market becoming very competitive with 6 players strongly entrenched.

 All major players have reduced Entry costs for PCO operators.

 TouchTel / Airtel have the advantage of Wireless as well as Wire line is becoming increasingly aggressive.

 Hutch has also joined the race and is a new entrant in the market.

 All players are giving lucrative schemes to their Channel partners on a regular basis.

 LBA and Manpower churn happening.

Market Penetration in South Delhi is extremely high.

ARPU are falling as additional lines are added in the same out


 Study of the PCO market: This helps in getting a thorough knowledge of the PCO market which helps in understanding the PCO segment better and performing accordingly.

 Dealing with the LBAs-They are the distributors and their main functions are PCO installation, looking into customer complaints and all other PCO related issues. The LBAs are divided according to the area handled by them. The main objective of the project is to contact these LBAs on a regular basis to check the status of the customers using reliance PCO and informs them about any new customer

 Visiting the LBAs-The project also involves visiting LBAs on a regular basis. These visits are of great importance as it gives an insight as to why have customers stopped using Reliance PCO and then look for some innovative idea to retain them by offering various benefits and profitable schemes.

 Customer Churning-In this customer of other telecom companies such as Airtel, BSNL, and TATA etc are churned by presenting them with profitable schemes that motivate them to shift to Reliance PCO services.

 Competition Analysis-In this the competitors schemes and the schemes offered by Reliance are compared and then some better schemes are made which helps in attracting customers and helps the company in increasing the customer base.

 Customer Details-Maintaining and updating the current customer base from time to time.



The objective of the study is to understand the growth pattern of PCO segment, giving main consideration to PCO segment of Reliance Communications by doing a proper comparative analysis of reliance PCO business with other service provider. Some other objectives of the study are as follows: -

 To increase the customer base of the organization using various promotional tools.

 To drive marketing initiative and promotional activities in PCO segment to increase market shares-collateral, banners, signage and other promotional activities.

 Win back Expired Customer-Another important objective is to retain the customers as well as get back the lost ones. To make it clearer, it’s about wining back the customers who have stopped using reliance services by offering them various schemes like low call rate, lucky draws, free talk time etc which will be beneficial for them and which will drive them into using Reliance services again.

 Minimize The Rate Of Churning: The project aims at minimizing the churning rate. At times customers stop using the services of Reliance Infocomm and shift to other telecomm companies, which is against the goodwill of the company. Therefore it aims at creating more and more customers by reducing its churning rate by offering them various schemes better than our competitors.

There were few secondary objectives as well, which are discussed as follows:-


 To study the PCO market by doing a market research on PCOs

 To know the major players in the PCO market.

 Make a SWOT analysis so that internal strengths & weaknesses can be understood from the view point of PCOs & also to understand the opportunities that can be earned & threats that can affect the business.

 To determine the industry standards in PCO Business segment.

 To make a market share analysis.

 To make a PCO satisfaction survey.

 To find out the influencing factors as far as selling (for PCO owners) is concerned.

 To know the awareness & usage level of the PCO segment.

 To determine the features that attracts the consumer in a PCO.

 To determine the key factors for PCO owners to subscribe to the Reliance PCO.


Research Methodology is a way to systematically solve the research problem. Marketing research is generally done for two purposes 1- to identify 2- to solve marketing problem. Research in common parlance refers to a search for knowledge.

Marketing Research is defied as a function that links the consumer, customer, and the public to the marketer through information- information used to identify and define marketing opportunities and problems; to generate, refine, and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process.

Methods used in the project Report:

 Survey- To develop a marketing research process there types of investigations. 1-survay method 2- case study 3-experimental method 4 – scientific method 5-action research method.

Here for my research work I have used the survey method. Survey is a method of collecting information by asking a set of preformulated questions in a predetermined manner to a sample which is representative of a defined population

 Population –The aggregate of all elements sharing some common set of characteristics, that comparises the universe for the purpose of marketing research problem.

 Sample- A sample is a subgroup of elements of population selected for participation in the study.

 Sampling Technique – The sampling technique is broadly classified as probability & non probability. Nonprobability sampling relies on the personal judgement of the researcher rather than chance to select sample elements. In probability sampling, sampling units are selected by chance. Here I have used the non probability sampling. Again the non probability sampling is of four types; convience sampling, judgemental sampling, quota sampling, snowball sampling. Here I have used judgemental sampling. Judgemental sampling is a form of convience sampling in which the population elements are selected based on the judgment of the researcher. Here I have chose those areas from where I will get better information.

 Secondary Data: Secondary datas are collected from the websites of different service providers.

 PRelianceary Data- PRelianceary data are collected from the customers who are interested in installing a PCO as a mode of self-employment or for commercial use. The data collected are then distributed to the respective LBAs for further procedure (closing of the deal i.e. installing a PCO)


 Incorrect response by the customers leads to wrong interpretation and analysis.

 Customers sometimes don’t respond to the visits made to them.

 At times customers are not ready to listen, due to which the message cannot be conveyed.

 Some LBAs are not responsible enough, which leads to the dissatisfaction of customers, and loss of customers who are interested in installing the PCO or are the current customer base.

 The LBAs were sometimes not properly informed about the product by the organization, which lead to wrong interpretation of information to the end customers









In this analysis we basically targeted the Airtel, MTNL and Tata Indicom, the basic players of PCO market and from whom Reliance faces a threat. The purpose of this analysis was to know about the competitors’ schemes and propositions and replace them with one of our own. This is basically done to churn the customers of other service provider to our own.


Airtel comes to you from Bharti Cellular Limited –a part of the biggest private integrated telecom conglomerate, Bharti enterprises.

A Bharti enterprise has been at the forefront of the technology and has revolutionized telecommunications with its world-class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts’ innovations to its credit. Bharti has many joint ventures with the world leaders like Singtel (Singapore telecom); Warburg Pincus, USA; Telia, Sweden;

Asian infrastructure finds, Mauritius, International Finance Corporation, USA and New York Life International, USA.

Bharti provides a range of telecom services, which include Cellular, Basic, Internet and National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufactures of telephone instruments in India. It is also the first company to export its products to the USA.

Tata Indicom

The Tata group’s commitment to building a substantial presence in India telecom industry has seen it play a leading role in the development of the country’s communication infrastructure. The telecom services of the group are offered under the brand name Tata Indicom, and cover all segments, from retail and enterprise to wholesale and international. The objective is to make Tata Indicom the preferred telecommunication choice of the customers across the country.

The Tata Indicom Enterprise Business Unit (TIEBU) is the central, specialized enterprise sales and marketing unit for the Tata Group’s telecom initiatives. The unit is the benchmark telecom player in the enterprise space and was formed with a view to providing customized, end-to-end voice and data solutions to customers across India. It delivers

Cost effective, integrated solutions that are designed to fulfill the most complex communication need.

The Tata Group’s telecom initiatives are currently spread over five enterprises: Tata Teleservices and its subsidiaries, namely Tata Teleservices (Maharashtra) and Tata Internet Services.


Idea comparatively is one of the newest players in the PCO market. But Idea can be one of the major threats to other market leaders with its lucrative schemes. Idea is fast catching up in the market with its immediate and efficient installation team. They provide schemes such as 1000 refundable installation in which they provide a display machine and rupees 650 talk time. Idea is definitely proving to be a good bet to the PCO operators in the state.


Competition Offerings – PCO


Reliance RCV cost to PCO operator in RS Talk time loaded in RS Validity in days Entry Cost

7320 10000 60 Rs1000 refundable with free talk time of Rs 1000

3910 5000 60

2406 3000 60

1290 1550 45

449 550 15


Reliance RCV cost to PCO operator in RS Talk time loaded in RS Validity in days Entry Cost

1200 2000 60 Rs 500 refundable with free talk time of Rs 250

900 1500 60

650 1000 60

357 510 30



I have gathered some data by carrying survey in some market places of South Delhi. Those are:




Malviya Nagar

Hauz khaz

The PCO market share on some of these market places are depicted diagrammatically and can be very convenient in understanding the market through this visual presentation:

Following are the segmentations:-


Clearly from the above diagrams we can see that RELIANCE has a major competition from AIRTEL&MTNL, rather than from any other competitor.

 There is not so much difference in the tariff plans of different service providers.

 The Airtel basic gain is due to its distribution factor that has been developed in the customers mind from the recent past.

 MTNL has a good market share due to its brand value and stability in the market since a long period.

 Hutch and Idea are the beginners in the market.

 Tata Indicom has also a substantial grip over the PCO market due to its brand value.

 Reliance enjoys high market share but needs to improve on its customer satisfaction front.

 Many people have an image about Reliance that they have some hidden cost and have confusing plans.

 Reliance faces major competition in the PCO field from AIRTEL and the most trusted brand BSNL.

 Reliance is doing good business in the PCO market but may be outsmarted by competitors like IDEA and TATA if not taken a note of their market strategy.

 RELIANCE in comparison to other competitive brands has a good market image but distribution network has let it down.

Apart from this, we can see that RELIANCE is a strong player in the PCO segment and can do wonders with a bit more improvement in their schemes and distribution channels.


» Confused Tariff Plans: The biggest weakness faced by Reliance Communications is its image of Confused Tariff Plans. The schemes are so many and with different call rates and validity, that it sometimes confuses the end users.

» More Activation Time: Customers have the major problem regarding activation of the suspended and retired sets which hampers the company’s Sales. As well, Reliance as compared to others takes more time in installing a connection.

» Network problem: Major problem with Reliance is its Network Problem. The problem faced is basically in Bihar’s connectivity. People can not get through numbers of Bihar.

The other problem is of “FIXED LINE PHONE”. There was a major complaint for this particular problem. The PCO owners faced this problem regularly where their connection would suddenly stop working and become a FIXED LINE PHONE.

» Meter jump problem: There was a problem of meter jump. This problem exists as the signaling frequency of Reliance is on 8KHz and the billing machines run on battery reversals. So this is another problem that has to be taken care off.

» Unclear sound and echo effect: Due to some weather problems and Technical Faults on the other side these problems may creep up. But these reasons are not satisfying the PCO operators and the customers, as other competitors connections are working fine.

» Weak Distribution Network: Another major headache for Reliance is their weak distribution networks. Reliance should improve on their channel members as they are the main link between Reliance and the PCO operators. There is a dissatisfactory supply of Recharge Vouchers and Service provided by its channel members. This in turn results in the loss of customers for Reliance.

» Weak Promotion: Reliance’s promotion in the PCO segment has been on the lower side. There isn’t an aggressive approach for promotion of PCO segment. Also proper advertisement boards are not provided, which is another hindrance in Reliance’s promotion tactics.


 Reliance should improve on its DISTRIBUTION NETWORK. As it sometimes hinder their growth in the market. They should keep a thorough check on their channel member’s activities and not let them do what they feel like. Also proper training should be provided to them so that they can satisfy customers properly.

 Reliance should also focus on improving its IMAGE in the fast paced market competition.

 Reliance should focus on More PROMOTION tactics to increase Market Share. They should provide proper advertisement boards to the PCO operators to increase their market share.

 Reliance should try to match with their competitors, as they are providing lucrative schemes. Reliance should consider in supplying display machines along with connections as their competitors are doing the same (AIRTEL).

 Reliance should better up their Network and Connectivity problems so as to maintain their hold in the market as it is a service not a product. Reliance should mainly consider solving connectivity to Bihar as most of the PCO users are labour class from Bihar

 The tariff plans should not be complex, but should be very easy to explain to the customer by the FOS (Feet On Street).

 The FOS should have proper knowledge about schemes provided by the company so that they can convey the right message to the customer base politely.

 Reliance should make a different cell for customer satisfaction. Where in the people so employed can personally look after their complaints, rather than waiting for the channel members to do the same.

 The company should also assure of proper supply of Recharge Voucher Cards to its distribution networks, so that they can provide it to the customers on time.

 Reliance should also be tough on their LBA’s (Local Business Associates) if they are not providing proper results, as they do have a tendency of taking things for granted some times.

Last but not the least; Reliance is definitely a safe bet for the customers who are interested in PCO installation as they are providing lucrative schemes with excellent margins.


Personal Information



Phone No:

1. Which service provider connection you are using?

a. Reliance b. Airtel

c. MTNL d. Tata Indicom

e. Hutch f. Idea

2. How many STD connections do you have?

a. One b. Two

c. Three d. More than three

3. How many local connections do you have?

a. One b. Two

c. Three d. More than three

4. Why do you prefer this connection?

a. For easy recharge system

b. More commission than others

c. Good customer care services

d. No network problem

e. Others...

5. Are you fully satisfied with the present connection?

a. Yes

b. No

6. If not satisfied, what are the problems you are facing?

a. Network problem

b. Not satisfied with billing system

c. Not satisfied with customer care services

d. Other providers offering more commissions than this

e. Others….

7. Do you have any idea about Reliance PCO business and its tariff plan?

a. Yes

b. No

8. Are you interested to take Reliance connection?

a. Yes

b. No

9. Have you ever used Reliance connection?

a. Yes

b. No

10. Why did you disconnect it?

a. Network problem

b. Not satisfied with customer care service

c. Not getting recharge coupon easily

d. Getting more commission from other providers

e. Others….





 PCO Customer Operations Manual for LBAs by Reliance Infocomm

 Reliance Infocomm PCO Division

 Marketing Management : Philip Kotler

Get Better Grades Today

Join and get instant access to over 60,000+ Papers and Essays

Please enter your username and password
Forgot your password?