Internship Report On Network Operators Arpu Analysis: Bachelor of Commerce

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INTERNSHIP REPORT ON NETWORK OPERATORS ARPU

ANALYSIS
A report submitted in partial fulfillment of the requirements for the Award of
Degree of

BACHELOR OF COMMERCE
Prepared By:

SATTWIK DAS (2210848)


Under Supervision of
Mr. Bappadittya Chandra

Reliance Jio InfoComm Ltd, Kolkata

(Duration: 10.MAY.24- 10. JUNE.24)

DEPARTMENT OF COMMERCE
CHRIST UNIVERSITY, BANGALORE

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CERTIFICATE

This is to certify that the “Internship report” submitted by SATTWIK DAS (Regd.
No. 2210848) is work done by her and submitted during 2022 – 2025 academic
year, in partial fulfillment of the requirements for the award of the degree of
BACHELOR OF COMMERCE at Christ University, Bangalore.

College Internship Coordinator


Dr. Sudha E

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INDEX

Sr No CHAPTER PAGE NO

1. Company Profile
2. Industry Analysis
3. Findings of the Internship Project
4. Conclusion

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CHAPTER 1
COMPANY PROFILE

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History
Reliance Jio InfoComm Limited, commonly known as Jio, has emerged as a transformative
force in the telecommunications landscape of India. Founded in 2007, it is a subsidiary of
Reliance Industries Limited, one of India's largest conglomerates, led by business magnate
Mukesh Ambani. Jio's journey has been marked by groundbreaking innovations, rapid
expansion, and significant disruptions in the Indian telecom sector.

Evolution:
The genesis of Jio can be traced back to India's growing demand for affordable and high-
speed internet services. Recognizing this opportunity, Reliance Industries made strategic
investments in spectrum acquisitions, network infrastructure, and technological capabilities.
After years of meticulous planning and development, Jio officially launched its services to
the public on September 5, 2016.
Jio's entry into the market was characterized by disruptive pricing strategies, offering free
voice calls and incredibly low-cost data plans. This move triggered a price war among
telecom operators, leading to a significant reduction in tariffs and increased accessibility to
mobile data services across India. Jio's nationwide rollout of 4G LTE network infrastructure
played a pivotal role in bridging the digital divide and bringing millions of Indians online for
the first time.
With a focus on digital inclusion, Jio expanded its offerings beyond traditional
telecommunications services. The company ventured into digital content streaming, e-
commerce, fintech, and other sectors, leveraging its robust network infrastructure and user
base to create a comprehensive digital ecosystem.
Jio's relentless pursuit of innovation has propelled it to the forefront of India's digital
revolution. The company has continually introduced new technologies and services, including
VoLTE (Voice over LTE), fiber broadband, IoT (Internet of Things) solutions, and more
recently, 5G network trials.

Awards and Recognition:


Jio's disruptive impact on the telecom industry and its contributions to India's digital
transformation have been widely recognized and awarded both domestically and
internationally. The company has received numerous awards and accolades for its
achievements in various categories, including technology innovation, customer service, and
corporate excellence.

Ookla Speed Test Awards 2023


Jio won all nine India awards: Best Mobile Network, Fastest Mobile Network, Best Mobile
Coverage, Top Rated Mobile Network, Best Mobile Video Experience, Best Mobile Gaming

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Experience, Fastest SG Mobile Network, Best 5G Mobile Video Experience, Best 5G Mobile
Gaming Experience.

Small Cell Forum Awards 2021


JPL’s 5G Outdoor Small Cell was awarded for outstanding small cell technology in
commercial use

National Awards for Excellence 2023


JPL won three National Awards for Excellence: Best Innovation in Emerging Technologies
for its low-latency edge computing and 5G infrastructure, Best New Innovative Product for
its Sub 6 GHz Outdoor Small Cells and MEC servers, and Innovation in Cloud for
revolutionizing the industry with its cutting-edge Telco Cloud.

Aegis Graham Bell Awards 2020


Awarded for Cloud-Native 5G Core and Jio Cognitive Platform

Vision:

Jio's vision encapsulates its aspiration to empower every Indian with affordable access to
digital services and opportunities, thereby catalyzing India's socio-economic progress and
global competitiveness. At the core of Jio's vision is the belief that digital connectivity has
the power to transform lives, businesses, and communities, transcending geographical and
socio-economic barriers. Jio envisions a future where every individual, regardless of their
background or location, can harness the transformative potential of digital technology to
enhance education, healthcare, livelihoods, and overall quality of life. Through its innovative
offerings and relentless pursuit of excellence, Jio aims to be a catalyst for India's digital
revolution, driving inclusive growth, innovation, and prosperity.

Mission:

Jio's mission revolves around democratizing digital access and empowering Indians to
leverage technology for personal, professional, and societal advancement. The company is
committed to:

1. Connecting India: Jio's primary mission is to connect every corner of India with high-
quality, affordable digital infrastructure, including broadband internet, mobile
services, and digital platforms. By expanding its network coverage and enhancing
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connectivity, Jio seeks to bridge the digital divide and ensure that no individual or
community is left behind in the digital age.

2. Enabling Digital Transformation: Jio aims to enable digital transformation across


sectors such as education, healthcare, agriculture, e-commerce, entertainment, and
more. Through its digital platforms, services, and solutions, Jio empowers businesses,
entrepreneurs, and organizations to leverage technology for innovation, efficiency,
and growth.

3. Driving Innovation: Innovation is at the heart of Jio's mission. The company is


committed to pushing the boundaries of technology, introducing new services, and
fostering a culture of creativity and entrepreneurship. By investing in research and
development, partnerships, and talent development, Jio aims to lead the way in
shaping India's digital future.

4. Enhancing User Experience: Jio places a strong emphasis on delivering superior user
experiences across its products and services. Whether it's high-speed internet,
seamless connectivity, or intuitive digital platforms, Jio strives to exceed customer
expectations and set new benchmarks for excellence in the industry.

5. Promoting Digital Inclusion: Jio is dedicated to promoting digital inclusion by making


digital services accessible and affordable to all segments of society. Through
initiatives such as digital literacy programs, community outreach, and affordable
pricing plans, Jio seeks to empower individuals from diverse backgrounds to
participate fully in the digital economy.
Goals:

Jio's goals are aligned with its vision and mission, focusing on driving growth, innovation,
and societal impact. Some key goals for Jio include:
Network Expansion: Jio aims to further expand its network infrastructure, including 4G and
upcoming 5G networks, to enhance coverage, capacity, and reliability across urban and rural
areas. By investing in network densification, fiber-optic connectivity, and advanced
technologies, Jio seeks to deliver best-in-class digital experiences to its customers.

1. Digital Ecosystem Development: Jio intends to continue building its digital ecosystem
encompassing services such as JioMart (e-commerce), JioSaavn (music streaming),
JioCinema (video streaming), JioHealthHub (healthcare), and more. The goal is to
create a seamless, integrated platform that offers a wide range of digital services and
enhances the overall user experience.

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2. Innovation and Technology Leadership: Jio is committed to maintaining its position
as a leader in technological innovation and disruption. The company aims to invest in
emerging technologies such as 5G, IoT, AI, and cloud computing to drive new
opportunities, improve operational efficiency, and deliver innovative solutions to its
customers.

3. Customer Acquisition and Retention: Jio continues to focus on acquiring new


customers while ensuring high levels of customer satisfaction and loyalty. By offering
competitive pricing, personalized services, and value-added benefits, Jio aims to
attract and retain a large user base across diverse demographics and geographies.

4. Social Impact and Sustainability: Jio recognizes its responsibility to contribute


positively to society and the environment. The company aims to enhance its corporate
social responsibility initiatives, focusing on areas such as education, healthcare,
environmental sustainability, and community development.

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CHAPTER 2
INDUSTRY ANALYSIS

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Introduction of telecom industry :

India is currently the world’s second-largest telecommunications market and has registered
strong growth in the past decade and half. The Indian mobile economy is growing rapidly and
will contribute substantially to India’s Gross Domestic Product (GDP), according to report
prepared by GSM Association (GSMA) in collaboration with the Boston Consulting Group
(BCG). The liberal and reformist policies of the Government of India have been instrumental
along with strong consumer demand in the rapid growth in the Indian telecom sector. The
government has enabled easy market access to telecom equipment and a fair and proactive
regulatory framework that has ensured availability of telecom services to consumer at
affordable prices. The deregulation of Foreign Direct Investment (FDI) norms has made the
sector one of the fastest growing and a top five employment opportunity generator in the
country. The Indian telecom sector is expected to generate four million direct and indirect
jobs over the next five years according to estimates by Randstad India. The employment
opportunities are expected to be created due to combination of government’s efforts to
increase penetration in rural areas and the rapid increase in smartphone sales and rising
internet usage. International Data Corporation (IDC) predicts India to overtake US as the
second-largest smartphone market globally by 2017 and to maintain high growth rate over the
next few years as people switch to smartphones and gradually upgrade to 4G.

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THE TELECOM MARKET SPLIT INTO THREE SEGMENTS

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SUBSCRIBER BASE OF TELECOM OPERATORS INDIA

MARKET SHARE OF TELECOM OPERATOR

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CHAPTER 3
FINDINGS OF THE
INTERNSHIP PROJECT

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OBJECTIVE:

Analyzing the Average Revenue Per User (ARPU) for the network operators involves several
key objectives aimed at understanding and enhancing the financial performance and customer
experience of the targeted regions as Kolkata, East India and Pan India. Here are the primary
objectives for an ARPU analysis:

1. Assess Revenue Performance

• Trend Analysis: Evaluate historical ARPU trends to identify growth, stability, or


decline over time.
• Revenue Contribution: Determine the contribution of ARPU to the overall revenue
and how changes in ARPU impact the financial health of the company.

2. Customer Segmentation

• Segment Performance: Analyze ARPU across different customer segments (e.g.,


prepaid vs. postpaid, residential vs. business) to understand which segments are the
most profitable.
• Usage Patterns: Investigate usage patterns within segments to tailor marketing and
service offerings.
Competitive Benchmarking
• Market Position: Compare ARPU with industry benchmarks and competitors to
understand market position and competitive standing.

Customer Retention and Acquisition

• Churn Analysis: Analyze the correlation between ARPU and customer churn rates to
develop strategies for retention.

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Data Collection:

The data was sourced from the official TRAI website (www.trai.gov.in), which publishes
quarterly and annual reports on the performance of the telecom sector in India. These reports
include detailed statistics necessary to calculate ARPU, subscriber base, revenue and other
key performance indicators.

Subscriber data for the quarter highlighting the performances of the network operators in
various regions (KOLKATA, EAST, PAN INDIA).

Key Analysis-

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Revenue for the recent quarter highlighting the performances of the network operators in
various regions (KOLKATA, EAST, PAN INDIA).

KEY ANALYSIS:

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Calculation of Monthly ARPU:

Formulae used for calculation of ARPU:

Total Revenue of Quarter


Average Subscriber Base of Quarter/ 3

Key Analysis:

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CHAPTER 4
CONCLUTION

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CONCLUTION-

Overall, Jio emerges as the leader in subscriber numbers, capturing a significant market share
across all regions. Airtel follows closely behind, particularly excelling in revenue generation
at the pan-India level. VI, while holding the third position in both subscribers and revenue,
demonstrates competitive strength in the Kolkata market.

Airtel's ability to maintain the highest Average Revenue Per User (ARPU) signifies its
effectiveness in extracting value from its customer base. Jio, on the other hand, opts for a
broader market approach with lower ARPU but high subscriber numbers. VI's ARPU
variations across regions highlight its potential for growth in specific markets like Kolkata.

In summary, while Jio dominates in subscriber numbers, Airtel leads in revenue generation,
and VI shows potential for regional growth. Each telecom operator has its strengths and
focuses, contributing to a dynamic and competitive telecom landscape in India.

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